ONGC may see gas output jump to 100 mmcmd by 2015-16

Oil and Natural Gas Corporation may see its natural gas output almost double to 100 million cubic meter a day (mmcmd) by 2015-16 as the nation's most profit making firm puts into production newer discoveries.      

ONGC, which may produce 60 mmcmd gas this fiscal, was projected to see output fall drastically to one-third by 2020 due to the natural decline in its ageing fields.      

The company will, however, bring three new fields into production to reverse this trend and has projected its output to rise to 66 mmcmd by 2012-13, according to the firm's presentation to the Petroleum Ministry last month.      

The Western Offshore (WO), Cluster-7 and Vashista & S1 fields in the eastern offshore would help taper the fall to 30 mmcmd by 2020.      

If discoveries such as UD-1 find in ultra deep waters of Krishna Godavari basin which are under conceptualisation stage are included, the output will rise to 100 mmcmd in 2014-15 and it would be at least 20 per cent more than the output in 2020-21, it said.      

When contacted, ONGC Chairman and Managing Director R S Sharma said the WO Cluster fields would produce a little less than 2 mmcmd in 2012-13 while Cluster-7 would produce 2 mmcmd. The biggest upside would come from Vashista and S1 fields that are projected to produce just under 6 mmcmd from 2013-14.

"If we add the discoveries for which plans are conceptualised, the output will rise to 70 mmcmd in 2012-13," Sharma said.      

He said the discoveries to be conceptualised include the 167 billion cubic meter of reserves in KG-DWN-98/2 block, lying adjacent to Reliance Industries' prolific KG-D6 fields in Krishna Godavari basin off the east coast.      

Besides, an estimated 200 bcm reserves lie to be realised in Mahanadi deepwater discoveries, 25 bcm in KG shallow waters and 15 bcm in B and C-Series fields.      

These discoveries could yield between 40 to 50 mmcmd, he said.      

Gas production from Bassein and its Satellite fields, ONGC's largest fields, is to dip to about 13.8 mmcmd in 2011-12 from 27.5 mmcmd in 2007-08.      

As a result of natural phenomenon, reservoir pressure at the gas field has declined with continuous production for over 20 years. 

Bassein field was discovered in 1977, some 80-km west of Mumbai and when in 1988 it began gas production, recoverable reserves were estimated at 226 billion cubic meters (7.98 trillion cubic feet). The reserves are now estimated at about 58 billion cubic meters (2.04 Tcf).      

Bassein field accounts for 43 per cent of ONGC's gas production.