Millennium Post

ONGC to invest Rs 11 lakh cr over 18 years

State-owned Oil and Natural Gas Corp [ONGC] on Monday said that it plans to invest about Rs 11 lakh crore to double its production over the next 18 years. ‘We have prepared a ‘Perspective Plan 2030’ that envisages doubling production over the next 18 years at 4-5 per cent annual production growth rate,’ ONGC chairman and managing director Sudhir Vasudeva said.

The ‘blue print’ targets doubling production while achieving a three-fold growth in revenue and profits.

It also aims for a four-fold growth in market capitalisation of the company and a six-fold growth in production from international operations, he said.

‘All this will require an investment of Rs 11,00,000 crore,’ he said.

ONGC in 2011-12 fiscal produced 23.71 million tonnes of oil and 23.32 billion cubic metres [bcm] of gas. It posted a net profit of Rs 25,123 crore on a turnover of Rs 76,130 crore. Its overseas arm, ONGC Videsh Ltd produced 6.21 million tonnes of oil and 2.54 bcm of gas in 2011-12. Vasudeva said while ONGC would look to unlock 450 million tonnes of oil and oil equivalent gas from yet to be found domestic resources, OVL has been tasked to source 60 million tonnes of oil and oil equivalent gas per year by 2030.

ONGC also said that it will start producing natural gas from a block that sits next to Reliance Industries' flagging KG-D6 fields in Bay of Bengal by 2016-17.

ONGC has found 4.85 trillion cubic feet of gas reserves in nine gas discoveries it has made in the Krishna-Godavari basin block KG-DWN-98/2.

'The block is targeted for production by 2016-17 and a peak production of 22 million standard cubic meters per day is envisaged,' ONGC chairman and managing director Sudhir Vasudeva said .

The company has submitted declaration of commerciality for the Northern and Southern Discovery Area in the block. Seven of the finds are in the northern part of the block.

Gas from these is proposed to be produced by combining them with a gas discovery in the adjacent block, he said. G-4 gas discovery in a neighbouring block is planned to be developed along with finds in the Northern Discovery Area of KG-DWN-98/2.

Once the government approves the commercial viability of the finds, ONGC will make a formal field development plan [FDP] outlining the specifics of producing gas from the find.

The Northern Discovery Area [NDA] consists of the Padmawati, Kanakadurga, Annapurna, D/KT, U, A, W and E gas finds in in water depths ranging from 594 metres to 1,283 metres. The Southern Discovery Area consisting of the UD-1 discovery falls in ultra-deepwater with a depth of 2,841 metres.

The official said ONGC has time till November 2013 to apprise the discoveries.

The firm plans to drill 8 wells to appraise or re-ascertain the commerciality of the finds - six in NDA and two in SDA. The appraisal has begun.


State-owned Oil and Natural Gas Corp [ONGC], Indian Oil [IOC] and Oil India [OIL] have made a joint bid of about USD 5 billion for buying stake in six Canadian oil sands assets of US energy giant ConocoPhillips. 'We had a few weeks back placed a non-binding bid for a stake in the six Alberta properties of ConocoPhillips ,' a top source at one of the three state-owned firms said.

Houston-based ConocoPhillips has since then closed bidding for selling as much as 50 per cent of its oil-sand reserves in Alberta. 'There are some producing assets and some exploration assets on offer,' he said without giving more details.

ONGC Videsh Ltd, the overseas arm of the state explorer, had earlier this month bought US energy firm Hess Corp's stake in Azeri, Chirag and Guneshli [AGC] group of oil fields in Azerbaijan for USD 1 billion. ConocoPhillips has hired Scotia Waterous for selling stake in six Alberta properties that produce about 25,000 barrels of oil per day from an estimated 30 billion barrels of bitumen in place.

Development of these reserves could increase production to more than 500,000 bpd.

D K Sarraf, managing director of ONGC Videsh Ltd, the overseas arm of the state explorer, said the company keeps looking at opportunities globally and would not comment on any specific transaction.

'For the sake of running your [news] business, I cannot be closing down my business,' he said.
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