ONGC to Spend $6.5B to Boost Oil & Gas Production in India
India's state-owned Oil and Natural Gas Corp. Ltd. (ONGC) intends to spend approximately $6.51 billion (INR 416.78 billion) to develop new oil and gas fields as well as redevelop mature fields in an attempt to increase its petroleum production, local daily The Economic Times reported Sunday.
The move by ONGC, producer of 204.93 million barrels (25.94 million tons) of crude oil and 915.96 billion cubic feet (Bcf) or 23.52 billion cubic meters (Bcm) of gas in financial year 2014-15, will help reverse declining production at most of its ageing oil and gas fields.
ONGC has allocated $3.77 billion (INR 241.88 billion) for the development of six projects on India's east and west coast, while spending $2.73 billion (INR 174.90 billion) to redevelop the Mumbai High fields and the Heera-South Heera fields in the country's western offshore region, a top company official told The Economic Times.
The redevelopment of the Mumbai High North field, which is intended to enhance recovery and increase the longevity of the prime upstream asset, will cost ONGC $906.83 million (INR 58.13 billion).
"This project will also help to monetize untapped reserves," the official said, as incremental production volume comprising 3.39 million barrels (430,000 tons) of oil and 22.25 million standard cubic feet per day (MMscf/d) or 0.63 million standard cubic meters per day (MMscm/d) of gas has already commenced, with the production set to rise to almost 7.9 million barrels (1 million tons) of oil and 57.91 MMscf/d (1.64 MMscm/d) of gas by financial year 2017-18.
ONGC will also spend $946.76 million (INR 60.69 billion) on the Mumbai High South fields and $874.85 million (INR 56.08 billion) on the Heera and South Heera oil and gas field redevelopment in India's western offshore.
The company's largest single project is the western offshore Daman field, costing an estimated $949.42 million (INR 60.86 billion) to develop, which will produce 977.05 Bcf (27.67 Bcm) of gas by 2034-35.
"Production is expected by July 2016 at the rate of 70.62 Mmscf/d (2 MMscm/d) and peak output of 294.85 Mmscf/d (8.35 MMscm/d) of gas and 9,286 barrels of condensate per day is likely by 2018-19. There is an upside potential of 353.11 MMscf/d (10 MMscm/d)," he said.
Turning to the nearby South Bassein field, ONGC plans to pump in $720.72 million (INR 46.20 billion) in funds for the project by April 2017 to boost incremental gas production of 664.90 Bcf (18.83 Bcm) by 2030-31.
The firm has also budgeted $386.41 million (INR 24.77 billion) for more development work at the Vasai East field, which will be completed by December 2018, to produce an additional 14.45 million barrels (1.83 million tons) of oil and 69.56 Bcf (1.97 Bcm) of gas by 2029-30.
Over in India's east coast, the state-owned oil firm will spend $634.34 million (INR 41.24 billion) to bring the Vashista and S-1 gas fields in Krishna Godavari basin into production by April 2017 to provide ONGC will an additional 563.56 Bcf (15.96 Bcm) of gas, the official told The Economic Times, while another $780 million (INR 50 billion) will be invested on the Krishna Godavari basin's Nagyalanka field for the latter to commence production in September 2016.
Elsewhere, ONGC has allocated $293.44 million (INR 18.81 billion) to developing the onshore Gamij oilfield near Ahmedabad.
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