The Oil and Natural Gas Corporation (ONGC) is projecting a shortfall of one million tonnes in its output, targeted at 25.76 million tonnes this fiscal.
ONGC Chairman and Managing Director R. S. Sharma said the output was declining at much faster rate than anticipated. The company planned to bring into production smaller and marginal fields to increase the output. “We anticipate the output will rise to 27-28 million tonnes by 2012-13,” he added.
ONGC saw production fall 3 per cent in the December quarter to 6.7 million tonnes, while natural gas output rise was almost flat at 6.45 billion cubic metres. Mr. Sharma said the ONGC board had approved an investment of Rs.2,163.65 crore for integrated development of D1 marginal field in Mumbai offshore. The project would be completed within 27 months from the date of award. Peak envisaged oil production from the D1 field was expected to be about 36,000 barrels of oil a day during 2012-13.
The board also approved investment of Rs.723.64 crore for acquisition of a new multi-support vessel (MSV). ONGC at present had a fleet of 4 MSVs, out of these 2 MSVs are owned by ONGC and 2 MSVs are hired.
The scheduled date of commissioning of this MSV is September, 2012, he said. The board has also approved the draft memorandum of understanding to be entered with Bharat Petroleum Corporation for cooperation in the gas and LNG business.
According to ONGC Videsh (OVL) Managing Director R. S. Butola, the overseas investment arm of ONGC is planning to spend about Rs.8,600 crore next fiscal mostly on existing operations.
The capital expenditure in this fiscal was Rs.7,000 crore.
“We want to consolidate. Our philosophy will be to selectively expand and expanding in countries where we already have operations. We can go into new countries only if the offer is irresistible,” he said.
The capital expenditure for next fiscal would be mostly met through internal accruals, he said.