ONGC to begin gas output from C-series fields next month

State-run Oil and Natural Gas Corporation (ONGC) will commence gas production from its C-series fields on the western offshore from December 1, ONGC Chairman R S Sharma said today.

"The initial production will be around 1 million standard cubic metres of gas per day (mmscmd), which will be scaled up to 3 mmscmd within a year," Sharma told reporters here.

He said the price of gas has not been finalised yet, but "will settle the pricing issue with GAIL soon".

C-series gas fields are located on the western offshore adjacent to the Bassein gas field. ONGC has 45 sweet gas wells and 59 sour gas wells in the region.

The company's director offshore Sudhir Vasudeva said four wells have been drilled and are ready for output.

On reports that the government was favouring a 33 per cent hike in gas produced from APM fields, Sharma indicated that he supported the move.

ONGC not only suffered under-recoveries but also incurred huge losses because of highly concessional gas prices.

"As per the audited accounts of FY09, we have suffered under-recoveries of Rs 4,700 crore in the gas business as well as losses of Rs 2,400 crore," Sharma said, adding "if gas prices are not increased this year the losses are likely to be even higher."