Oil India (OIL), nation's second-largest state-run explorer, plans to double its natural gas production to around 4.54 billion cubic metres annually in the next 5-6 years.     

"There have been a lot of proven reserves with the help of which we shall be in a position to double the gas production. We are in a position to more or less double our production in the next 5-6 years time," OIL Chairman and Managing Director N M Borah said.     

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Borah said the company's gas production potential has gone up by 8 per cent compared to that in 2008-09. Oil India accounts for about 10.41 per cent of India's total production of crude oil and about 6.91 percent of its total gas output.     

The company is presently developing existing resources by drilling new wells and building pipelines and may eventually sell it through a city gas distribution joint venture it has with Bharat Petroleum Corp.     

"Primarily, it (doubling of production) will be from our established resource base in the north east, particularly the fields in Assam. But, certainly our natural gas production base in Rajasthan is also bound to go up because we already have established more resources there and are taking steps to enhance the production," Borah said.   

OIL has proven plus probable (2P) natural gas reserves of 63.41 bcm at its fields in Upper Assam and Rajasthan basin, according to March 2009 estimates. 

Proven plus probable reserves mean that an explorer has only 50 per cent chances of recovering crude oil or gas.The company also plans to spend Rs 665 crore over the next two years on purchase of capital equipment in line with these plans.     

OIL will launch an initial public offer from September 7 to 11, offering 11 per cent equity to the public.Alongside the IPO, the government will also offload 10 per cent of its stake to state-run refiners.     

The company is looking to raise around Rs 4,500 crore from the issue, which has been priced at Rs 950-1,050.

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