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| Rs 50,000 cr-capex for ONGC's oil, gas fields |
| Press Trust of India / Mumbai Sep 23, 2009, 13:39 IST |
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State-run Oil and Natural Gas Corp (ONGC) is investing over Rs 50,000 crore ($10 billion) in developing new oil and gas fields and increasing output from existing ones, company's Chairman R S Sharma said today.
Of this amount, over Rs 16,000 crore is being invested to improve output from seven fields, he told company's shareholders.
ONGC had invested over Rs 14,000 crore in 14 Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR) schemes (during 2000 to 2009) to raise recovery factor to 33 per cent from 28 per cent earlier, Sharma added.
The investments would help the company offset the decline in output that has set in mature fields like Mumbai High.
ONGC is 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 (MT) of oil and 3.32 billion cubic meters of gas (bcm) by 2029-30.
Besides, ONGC is investing Rs 6,855.93 crore in Mumbai High North by September 2012 for an additional 17.35 MT of oil and 2.98 bcm by 2029-30.
It is also looking to put in 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 meters per day.
Also, Rs 3,195.16 crore in development of C-Series fields off the Mumbai coast would give 15.14 bcm 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.
Sharma said: ONGC has charted out three 'strategic pursuits' including intensifying exploration, improving recovery factor from existing fields and aggressively pursuing for overseas projects.
As part of intensified exploration that aims to create new oil and gas assets, ONGC in 2008-09 fiscal accreted 284.81 MT of oil equivalent of inplace hydrocarbons reserves, the highest in the last two decades.
"Ultimate reserve accretion of 68.90 MT of oil equivalent from domestic operated fields is again the highest in 18 years," he said.
ONGC Videsh (OVL), the overseas arm of the state-run firm, will aggressively pursue overseas exploration and production projects, Sharma added.
OVL has 40 projects in 16 countries.
"During 2008-09, OVL acquired seven E&P projects in five countries, two being producing properties," Sharma said. "As a result, the ultimate reserves accretion of 135.08 MT during the year has been the highest-ever."
ONGC's output of oil and gas from domestic and overseas assets was marginally lower at 61.23 MT of oil equivalent in 2008-09 as against the highest ever production of 61.86 MT of oil equivalent the previous fiscal.
Of this, 8.78 MT of oil and oil equivalent gas were from overseas projects, Sharma said.
Stating that international crude oil prices had peaked to $147 per barrel in July 2008 before plummeting to $33 a barrel in December that year. Sharma reasoned: the prices crashed down not because of any supply glut but due to sudden slump in demand which increased the spare capacity.
"However, we must realise that this spare capacity cushion is bound to erode once the economies recover which seems to be happening faster than expected," he said. "We apprehend this may again bring uncertainty and volatility in the markets."
The economic downturn has however not impacted the company's investment plans as reflected in highest ever capital expenditure of Rs 21,820 crore in 2008-09, he said adding 94 per cent of this was in the core activity of exploration and production.
OVL invested Rs 16,105 crore.
Of the investments in improving recovery factor, ONGC is investing Rs 219.22 crore in IOR scheme at Rudrasagar fields, Rs 834.90 crore in Geleki and Rs 429.38 crore in IOR scheme at Lakwa-Lakhmani.
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