ONGC to invest $2 billion in Mumbai offshore to increase oil & gas output

As per media reports, Oil and Natural Gas Corporation will invest more than $2 billion in drilling a record 103 wells on its main gas-bearing asset in the Arabia Sea as it pivots a turnaround plan that will add 100 million tonnes to production.

The country's premier oil and gas producer has three main assets off the west coast - Mumbai High, Heera and Neelam, and Bassein and Satellite, which contributed the bulk of 21.7 million tonnes of oil and 21.68 billion cubic metres of gas it produced in 2021-22.

"We have released a record 103 locations for drilling of wells on the Bassein and Satellite (B&S) assets over the next 2-3 years," ONGC Director (Offshore) Pankaj Kumar has reportedly said.

As per reports, these wells will tap smaller and hereto untapped reservoirs and help raise output. The company expects these development drillings would enhance production by over 100 million tonnes of oil and oil equivalent gas over the life of the field, the reports said.

ONGC produces two-third of all oil and gas produced in the country and any incremental production would help the country cut its dependence on imports for meeting energy needs.

The government has been pressing state-owned firms to step up efforts to raise domestic output to help cut the $115 billion import bill.

Maharatna Oil and Natural Gas Corporation (ONGC) is the largest crude oil and natural gas company in India. It has in-house service capabilities in all areas of exploration and production of oil & gas and related oil-field services. The Government of India held 58.89% stake in ONGC as of December 2022.

The state-owned oil & exploration company's standalone net profit rose 26% to Rs 11,044.73 crore on 35.5% increase in revenue from operations to Rs 38,583.29 crore in Q3 FY23 over Q3 FY22.

The scrip rose 0.80% to currently trade at Rs 151.95 on the BSE.

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