OVL's crude oil output jumps 26% in 2013-14

Company produced 5.491 million tons of crude oil from assets in over 16 countries in 2013-14

ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), has reported a 26% jump in crude oil production in 2013-14 as recent acquisitions offset a natural decline in older fields.

OVL produced 5.491 million tons of crude oil from assets in over 16 countries in 2013-14 as against 4.341 million tons in the previous year, a company official said.

While its fields in South Sudan and Syria were shut for geopolitical reasons, the acquisition of a 3% interest in an Azerbaijan oil field and an additional 12% stake in a Brazilian field led to the rise in production.

The official said OVL's South Sudan properties, which produced 45,000 barrels per day, has been shut since December, while its 70,000-80,000 bpd Syrian oil fields have not produced any oil for two years due to the geopolitical situation, including EU sanctions against that country.

OVL's natural gas production, however, declined 2% to 2.869 billion cubic meters from 2.919 bcm in 2012-13.

Gas output from the A1-A3 offshore blocks in Myanmar started in July and the fields currently produce 8.5 million standard cubic meters of gas a day, he said, adding that peak output of 14.5 mmscmd is likely by the year end. OVL has a 17% share in the fields.

The company is targeting 20 million tons of oil and oil equivalent gas production by 2018 and 60 million tons by 2030.

It produced 7.26 million tons of oil and oil equivalent gas in 2012-13, which increased 15% in 2013-14 to 8.36 million tons of oil and oil equivalent gas, he said.

During 2013-14, OVL raised its stake in the producing BC-10 block in Brazil to 27% from 15% at a cost of USD 529 million.

It acquired a 16% stake in the giant Rovuma Area-1 gas block in Mozambique for USD 4.125 billion.

"After the acquisition, the estimated reserves of Area-1 have increased from 35-65 trillion cubic feet estimated at the time of acquisition to 45-70 tcf now," he said.

The reserves at the lower end of the band in Area-1 are 15 times more than the re-stated reserves in Reliance Industries' eastern offshore KG-D6 block.

In February, OVL and Oil India Ltd jointly acquired two Bangladesh shallow-water exploration blocks -- SS09 and SS04.

In October 2013, it was awarded two onshore exploratory blocks -- B-2 (Zebyutaung-Nandaw) and EP-3 (Thegon-Shwegu) in Myanmar. Block B-2, with an area of 16,995 sq kms, is located in Northern Myanmar, bordering Manipur state in India, and Block EP-3, covering 1,650 sq kms, is located in Central Myanmar.