ONGC Approves $1.5B Phase II Development of Mumbai High North
ONGC has approved the second phase of the Mumbai High North (MHN) Redevelopment project, which will yield an incremental crude oil production of 17.354 Million Metric Tonnes (MMT) and Natural Gas 2.987 Billion Cubic Meters (BCM), aggregating to 20.34 Million Tonnes of Oil equivalent, by March 2030.
The total cost of this Redevelopment Project is Rs. 7133.39 crore (considering an exchange rate of Rs. 49 per US dollar). The project is scheduled to be completed by September 2012.
The decision to launch Phase II of Mumbai High North Redevelopment comes after the success of the first phase, which was launched in October 2000 (and completed in December 2006) and is likely to result in incremental gain of 23.25 MMT of crude oil and 6.10 BCM of gas by 2030, from 73 new wells and 10 side-track wells drilled in 1st phase. Till March 2008, the cumulative oil production from Phase I redevelopment wells has been 9.34 MMT against plan of 8.46 MMT and cumulative gas production has been 2.89 BCM against plan of 1.87 BCM.
Mumbai High field was discovered in 1974 and was put on production in May 1976. The field is currently producing a little over 12 MMT a year (245,000 bopd) and has already produced 24 per cent of the Initial-Oil-In-Place (IOIP) cumulatively. The field has two hydrocarbon pools in North and South and for development purpose, these have been delineated as two projects -- Mumbai High North (MHN) and Mumbai High South (MHS). Both MHN and MHS were developed separately and are currently (2007-08) producing 4.34 MMT and 7.69 MMT of crude oil respectively.
The phase II of Mumbai High North Redevelopment aims to further improve recovery from Mumbai High, with fresh inputs like drilling 73 new wells and side-tracking of 38 sick/poor producers. Development of small reservoirs (L-II and L-I) has been integrated with the main reservoir (L-III) to improve overall oil production and development economics. As in the case of Phase-I, new evolving technologies will be inducted in this phase of redevelopment also.
After the Board approval, ONGC CMD Mr. R S Sharma said that this Redevelopment Plan will be done on fast-track and will improve overall production of ONGC.
According to a report by Platts, India has grown more dependent on imports in the absence of any major new oil discoveries for the past several decades. The imports currently meet a little over 78% of its crude needs of around 2.93 million b/d.
As India's oldest and single biggest oil and gas producer, accounting for roughly 76% of the country's crude output of 34 million mt/year (680,000 b/d), the pressure has grown on ONGC to maximize the exploitation of its major fields, reports Platts.
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