Oil and Natural Gas Corporation (ONGC) has drawn up an ambitious plan to invest nearly Rs. 50,000 crore ($10 billion) for developing new oil and gas fields and increasing output from the existing ones. Of this amount, over Rs. 16,000 crore is being invested to improve output from seven fields.
Addressing the annual meeting and later a press conference here, ONGC Chairman and Managing Director R. S. Sharma said ONGC had invested over Rs. 14,000 crore in 14 improved oil recovery (IOR) and enhanced oil recovery (EOR) schemes during 2000-09 to raise the recovery factor to 33 per cent from 28 per cent earlier. This would help the company offset the decline in output that has set in mature fields like Mumbai High.
Similarly, he said ONGC was investing more than Rs. 15,000 crore in the second phase of redevelopment of its prime Mumbai High fields in the Western offshore. It is investing Rs. 8,061.42 crore in Mumbai High South by April 2011 for an incremental 20.7 million tonnes of oil and 3.32 billion cubic metres (bcm) of gas by 2029-30.
Besides, ONGC is investing Rs. 6,855.93 crore in Mumbai High North by September 2012 for an additional 17.35 million tonnes of oil and 2.98 bcm of gas by 2029-30. It is investing Rs. 1,262.93 crore by 2011 in G-1 and GS-15 fields, its first major East Coast development, to boost gas output by 2.62 million cubic metres a day.
In addition, an investment of Rs. 3,195.16 crore in the development of C-Series fields off the Mumbai coast would give 15.14 bcm of gas in 15 years. Other investments include Rs. 2,305.30 crore in Heera and South Heera redevelopment, Rs. 2,323.40 crore in B-22 cluster fields, Rs. 1,436.21 crore in B-46 cluster fields and Rs. 3,248.78 crore in B-193 cluster fields off the West Coast.
Mr. Sharma said as part of intensified exploration that aims to create new oil and gas assets, ONGC in 2008-09 fiscal accreted 284.81 million tonnes of oil equivalent in place of hydrocarbons reserves, the highest in the last two decades. “Ultimate reserve accretion of 68.90 million tonnes of oil equivalent from the domestically operated fields is again the highest in 18 years,” he added.
About ONGC Videsh, the overseas arm of the company, Mr. Sharma said OVL had 40 projects in 16 countries. During 2008-09, OVL acquired seven E&P projects in five countries, two being producing properties. As a result, the ultimate reserves accretion of 135.08 million tonnes during the year has been the highest-ever.
He said the economic downturn had not impacted the company’s investment plans as reflected in the highest-ever capital expenditure of Rs. 21,820 crore in 2008-09, 94 per cent of this was in exploration and production.
Records reserves accretion of 135 m tonnes in 2008-09
Company to improve output from seven fields