Oil and Natural Gas Corporation (ONGC) has awarded a contract worth around RM3bn ($720m) pertaining to the $5bn KG-DWN-98/2 project in Krishna Godavari basin offshore India to consortium featuring Malaysia-based Sapura Energy.
The contract won by the consortium is for carrying out engineering, procurement, construction, installation and commissioning (EPCIC) works for a central processing platform (CPP) and living quarters of the KG-DWN-98/2 project.
The consortium is made up of Sapura Energy’s subsidiary Sapura Fabrication and Afcons Infrastructure, the construction arm of Indian engineering and construction conglomerate Shapoorji Pallonji Group.
Sapura Fabrication, which will have a 48.3% share in the consortium, will earn around RM1.47bn ($352.8m) from the contract.
Sapura Energy, in a statement, said: “The new contract win enhances the company’s presence in the growing market and Sapura Energy is pleased to continue its contribution to India’s oil and gas industry and in helping to meet the country’s increasing energy demand.
“The project is an opportunity for Sapura Energy to participate in a key development for ONGC, leveraging on the company’s established deepwater knowledge and capabilities.”
The KG-DWN-98/2 is located off the Godavari Delta on the Indian east coast. Spread over an area of 7,295km of the Krishna-Godavari basin, the block is contained in water depths ranging from 300m to 3,200m.
In April 2018, ONGC started the KG-DWN-98/2 project by spudding the first of the planned 34 subsea wells, called #KDG-A. Vantage Drilling’s ultra-deepwater drillship Platinum Explorer was given a contract of about $118m for the drilling of the well, located 35km off the coast of Andhra Pradesh state in the Bay of Bengal.
The 34 wells to be drilled under the offshore project will include 15 oil producing wells, eight gas producing wells and 11 water injecting wells. The first oil and gas from the KG-DWN-98/2 project is expected to be achieved by the end of 2019.
In October 2018, ONGC awarded a $1.6bn subsea contract for the KG-DWN-98/2 project to a consortium of GE’s Baker Hughes, McDermott International and L&T Hydrocarbon Engineering (LTHE). As per the contract, the consortium will handle the delivery of all subsea production systems (SPS) for the oil and gas project.