ONGC Plans to Invest Rs 28 Billion More in Bassein Gas Field
Oil and Natural Gas Corporation Ltd has finalized a Rs 2,800-crore additional development plan for the Bassein gas field. The company is also planning to pump an additional Rs 2,000 crore into re-developing the existing field. Both projects will be completed in 2007.
Despite a rapid drop in production after being operational for over 20 years, Bassein is now producing 28.2 million standard cubic meters of gas per day (mmscmd), more than half the country's total natural gas production of 53 mmscmd.
According to sources, the company will place its additional development plan for approval before the board of directors at its next meeting. The tender documents are being finalized, and once the board's approval is obtained, the company is expected to take a few months to award the contracts.
ONGC has identified 97 million tons of oil and oil equivalent gas in east Bassein. As per the re-development project, the company will set up two platforms and two booster compressors to tap the newly available resources.
Unlike in the existing Bassein field, where the produce is processed at the existing two platforms, the production from the additional field will be carried out onshore through pipelines for processing. The company is also likely to seek a higher price for the production from the additional field. ONGC expects a substantial jump in its profitability from Bassein after completion of both the projects in 2007.
Currently, ONGC is engaged in a Rs 12,000-crore project to boost production in 15 mature fields. The bulk of the investment, however, is directed towards Mumbai High, which is currently undergoing a Rs 8,200-crore re-development plan. The 30-year-old asset is expected to produce over 3,00,000 barrels of oil per day this year.
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