The recent National Gas Hydrate Program Expedition 02 (NGHP-02) identified the existence of gas hydrate-bearing sand reservoirs at a number of sites in the offshore of India including Site NGHP-02-16 in Area-B of the Krishna-Godavari Basin. The architecture of that gas hydrate accumulation is characterized by thin, gas hydrate-bearing, high quality sand layers interbedded with mud layers within a turbidite interval. The lowest gas hydrate-bearing layer contacting a thinly-interbedded saline aquifer designates the base of the gas hydrate stability zone (BGHSZ). The proximity of the BGHSZ and the average temperature around 20oC make the reservoir a favorable target for hydrate destabilization by means of the depressurization method. The results of the reservoir simulations indicate high gas production potential from this marine gas hydrate deposit with manageable concomitant water production using a well completion design that hydraulically isolates layers with water-saturated sands. Using a detailed geological input model, the predicted cumulative gas rates reach 3.1 x 104 m3/day (1.1 mmscf/day) after 90 days of continuous depressurization and demonstrate sustained production rates of 3.0 x 104 m3/day (1.0 mmscf/day) after 5 years of production. The interbedded nature of this gas hydrate occurrence promotes the development of horizontal dissociation interfaces between gas hydrate-bearing sand and mud layers. As a result, non-uniform gas production along the horizontal interfaces becomes a primary determinant of reservoir performance. Simulation cases have been executed to determine the impact of the uncertainty in in situ reservoir permeability and the manner in which intrinsic permeability dynamically changes during dissociation in response to the imposed effective stress increase. The cases where effective permeability is initially low and compaction is highly sensitive to stress result in the least favorable production predictions.