Oil and Natural Gas Corporation, India's largest exploration and production company, has envisaged 15-20 per cent increase in its oil and gas output in next five years.
Subir Raha, chairman and managing director of ONGC said new acreage within the country and abroad, improved drilling technique and greater recovery from old oil and gas field would enhance ONGC's production in the future.
ONGC Videsh (OVL), the overseas arm of the company, would play a significant role in the process by contributing 10 mn tonne of oil and gas by 2007.
"Presently, ONGC produces 26.2 million tonne of oil and 24 BCM (billion cubic meter) of gas per year. The oil production should cross 28 mn tonne by 2007," Raha said.
The growth is significant as production has been declining by 8-10 per cent every year from producing oil and gas field. The growth projection factors in the reducing production trend. ONGC plan to invest significantly to improve recovery factor from present oil fields.
OVL has been on the acquisition spree for last couple of quarters. It bought 10 per cent stake in a gas field in Louisiana in the US. It also bought 40 per cent stake in a oil field in Libya.
OVL expect production in Vietnam beginning by end of this year and in Shakhalin by 2005. It is also negotiating in many other countries including Kazakhstan's huge Caspian Sea shelf reserve.
ONGC has also plan to spend $ 2 billion each year for development for the next 7-10 years to double inplace reserves to 12 billion tonnes of oil and oil equivalent gas. Since exploration risk is carried on balance sheet and not funded through debt, ONGC would need huge funds from internal resources. Now that company is getting international parity price for the crude it sells, meeting the demand may not be a problem.
Tripura gas for Bengal
Back home, ONGC has sought the intervention of government to bring Tripura gas to West Bengal by a pipeline through Bangladesh. ONGC can produce 4 million cubic meter per day of gas but it does only half due to lack of demand in the state.
"We want to bring Tripura gas to West Bengal. It has nothing to do it Bangladesh gas. Let us delink two issues. I met West Bengal chief minister Buddhadeb Bhattachrya and apprised him about the matter," Raha added.
Raha did not mention ttransportation details. West Bengal is a state deficient in petro-based energy. Besides, ONGC could make better price realisation ofTripura gas if it brings to mainland India.
