Shares of Oil and Natural Gas Corporation (ONGC) jumped during the early trading hours on Monday when the state-owned company announced that it has started producing oil from its deep-water block in Krishna Godavari (KG) basin.

ONGC shares hit a 52-week high of Rs 220.80, up 2% from the previous closing price on the National Stock Exchange (NSE). The stock closed 0.55% higher than the last price at Rs 217.65.

Oil and Natural Gas Corp (ONGC) announced in an exchange filing that it had commenced oil production at its deep water KG-DWN-98/2 block off the coast of the Bay of Bengal. The flagship project is progressing as scheduled, with the final phase expected to conclude by June 2024.

The block’s remaining oil and gas fields will see a gradual ramp-up towards achieving the planned peak production of 45,000 barrels of oil per day and 10 million metric standard cubic meters per day of gas.

According to the company’s website, ONGC contributes around 71% of India’s oil and gas production. The development is set to boost ONGC’s overall oil and gas output by 11% and 15%, respectively.