Oil, gas output to stay flat

ONGC's production of oil and gas would be flat for this year but it hoped to have more to sell from the next fiscal.

The company which produced over 80 per cent of India's total oil and gas production, pumped 50 million tonne of oil and oil equivalent last year.

Subir Raha, chairman and managing director, said the company has taken up projects worth Rs 4,000 crore to increase production.

These included a pipeline to carry crude from Mumbai High to Uran by a new pipeline at a cost of Rs 2,700 crore and revamping of production facility in Assam at a cost of Rs 1,300 crore.

The rehabilitation of Mumbai High resulted in 2.5 million tonne increase in production.

But the pipeline was not big enough to transport added generation. A new pipeline, to be completed by next fiscal, would carry the extra crude.

In Assam, the company would be revamping, replacing and modernising production bases that were 20-40 years old.

With new discoveries in place, the company was hopeful of increasing production going forward. Production had been falling from this region. Raha said the Sagar Samriddhi project for deep sea exploration was expected to yield positive results.

"I am very hopeful. ONGC can share good news from the east coast," he said.

At present, three deepwater rigs were working in the east coast.

Coal bed methane project

ONGC would be kickstarting commercial production of coal bed methane (CBM) by 2006-7.

The company would hand over six CBM blocks to a turnkey developer for production.

ONGC would provide the basic development plan for the contractor to work on. ONGC said a Rs 10,000 crore business from CBM projects in 15 years was not impossible.

Raha said contractors would bring in specialised rigs for CBM. ONGC did not have such rigs.

"ONGC is in the process of finalising the tender document and bids will be called from international player for turnkey development in next few weeks," he added.

All six CBM blocks were based in eastern states like West Bengal and Jharkhand.