ONGC to invest Rs 6,000 cr in offshore fields

With output falling from its ageing Mumbai High and other Western Offshore fields, state-run Oil and Natural Gas Corporation (ONGC) will invest Rs 6,000 crore in new and existing fields in this fiscal to raise output.        

"Our capex for development of Western and Eastern Offshore fields for this fiscal is Rs 6,000 crore. It will be funded from internal accruals," a top company official said.         

The explorer is currently developing its eastern offshore Krishna Godavari basin finds, G1 and GS 15.         

"GS 15, a shallow-water field will flow first gas from April next year. G1 will take time as it is a deepwater field, but will start production from April 2011," the official told PTI here.         

ONGC envisages a production of 0.982 million tonnes (MT) of sweet or low-sulfur crude and 5.92 billion cubic metres (bcm) of gas over a period of 15 years from G1 and GS 15.         

"The two fields put together will produce 2 million standard cubic metres per day (mmscmd) of gas. The onshore oil and gas processing terminal at Odalarevu, on the coast of Andhra Pradesh, is ready," he said.         

The gas to be produced has still not been tied up for sale, the official said, adding that the company hopes to sell it at market determined rates. G1 is located 28 kilometers off Amalapuram coast in water depths ranging from 135 to 500 meters, while GS 15 is located 5 kilometers from the coast in KG basin.         

So far, nine exploration wells have been drilled in G-1 and eight wells have been drilled in GS 15.         

The upstream firm is simultaneously developing Vasishtha and S1 fields in KG basin, which are projected to produce nearly six mmscmd of gas from 2013-14.         

Reservoir pressure at ONGC's two-decade old fields has declined with continuous production, prodding it to embark on major development and redevelopment of new and marginal fields in Western Offshore (WO).         

In WO, it has begun development of C-Series, B-22 Cluster, B-193 Cluster, Heera/South Heera and other marginal fields. The Board has also approved the phase II redevelopment of Mumbai High South and Mumbai High North.         

"After redevelopment of Mumbai High South, our oil and gas output will increase by 3.5 per cent," the official said.         

ONGC is targeting gas output of around 60 mmscmd this fiscal, same as in the past three years.         

Besides, it produces nine mmscmd from its joint venture in Panna and Mukta fields in WO.