India's ONGC has started commercial production at its Onshore Gas Terminal Plant in Odalarevu, Andhra Pradesh by processing gas from three offshore wells.

Oilfield services provider TechnipFMC said on Friday it has successfully commissioned the onshore plant for ONGC, which is now producing from the three wells as part of ONGC's integrated development of Vashishta (VA) & S1 fields.

These VA & S1 fields are located 30-35 km off the Amalapuram coast in the KG Basin, off the East Coast of India, at water depths of 250 to 700 meters.

The plant was set up as an expansion to the existing terminal, with plans to expand the terminal's capacity from 2.75 to 7.25 MMSCMD, to be used for processing gas from VA & S1 fields with an average daily gas rate of 5.75 MMSCMD for a period of five years.

When it comes to TechnipFMC's role on the project, before it merged with FMC Technologies to create TechnipFMC, Technip was in December 2014 awarded a €100 million worth contract by ONGC to build a 6 MMSCMD onshore terminal at Odalarevu in Andhra Pradesh, India, as one of the critical components of VA & S1 fields development.

TechnipFMC's scope of work included basic design, detailed engineering, procurement, fabrication, inspection and testing, installation, pre-commissioning and commissioning of the new onshore terminal facilities which would be integrated to the existing terminal.

With the terminal now commissioned, this means that hydrocarbons extracted from VA and S1 deep water offshore fields are transported to the onshore plant for processing.

It is worth mentioning that the project was initially scheduled to be completed in the second half of 2016.