ONGC's Deepwater Oil Production Hits Roadblock at Krishna-Godavari Basin

State-run Oil and Natural Gas Corporation (ONGC) is struggling to meet its deepwater production goals at the Krishna-Godavari Basin. The company's flagship KG-DWN-98/2 block, once touted as a major oil-producing asset, has seen output slip from a peak target of 45,000 barrels per day (bpd) to around 20,000 bpd.

The decline is attributed to complex reservoir geology that poses a challenge to sustaining production. The KG basin's deepwater assets have long been considered a vital part of India's energy strategy, but ONGC's inability to maintain high production levels has raised questions about the viability of these projects.