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We've invested Rs 81,890 cr to increase output: ONGC

'Our major oil and gas producing fields are ageing and showing natural decline,' ONGC Chairman and Managing Director Dinesh K Sarraf told shareholders at company's annual general meeting (AGM) here.

However, ONGC has taken measures to arrest this trend and uphold production from such
fields, he said.

Oil and Natural Gas Corp (ONGC) has deployed the best-in-class technologies in its improved oil recovery (IOR) and enhanced oil recovery (EOR) schemes on these fields.

'Our efforts have paid off well — with 7.46 million tonnes in FY14 alone, which is about 33 per cent of ONGC's domestic crude production. Thus, till FY14, a cumulative incremental gain of 87.41 million tonnes has been achieved,' he said, adding a total of Rs 41,316 crore capex has been planned for such interventions across 24 projects, out of which 19 have already been completed.

Stating that ONGC was committed to expeditiously develop its oil and gas reserves, he said out of 15 prospective projects taken up for development, seven projects are already complete and eight are under various stages of implementation.

Some of these projects like C-24, B-22 Cluster, SB-14, B-46, BHE & BH-35, North Tapti, C-Series and D-1 are already on stream and producing.

'These projects, with an estimated capital outlay of over Rs 40,573.7 crore, are geared up to produce additional 45.66 million tonnes of crude oil and 67.44 billion cubic meters of natural gas,' he said.

Sarraf said ONGC is focused on development of Daman gas fields in western offshore and oil and gas discoveries in KG-DWN-98/2 or KG-D5 block, which sits next to Reliance Industries' eastern offshore KG-D6 area.

'Development of Daman, a cluster of several discoveries in western offshore, has already been approved by the board with an investment of Rs 5,219 crore, envisaging peak production of about 8.5 million standard cubic meters per day and start-up of production by July, 2016. All out efforts are also being made to ensure production from KG-DWN-98/2 by 2018,' he said. During 2013-14, 84.99 million tonnes of oil and oil equivalent gas reserves were accreted, the highest in last 23 years.

Also, ONGC achieved a Reserve Replacement Ratio (RRR) of 1.87. This is the 9th consecutive year that your company has achieved RRR more than one. India's crude oil production in 2013-14 was largely flat at 37.77 million tonnes as compared to 37.86 million tonnes in the previous financial year.

However, there was a substantial drop in the natural gas output. The production was pegged at 35.39 billion cubic metres (BCM) against 40.68 BCM in the preceding fiscal. While crude oil imports increased by over 2 per cent to 189.24 million tonnes, LNG import remained almost flat at 10.76 million tonnes against 10.90 MT.

'As you all know, the growing energy deficit does not augur well for the country's economic fundamentals. The rising import bill is already exerting a considerable strain on country's trade balance.'
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