ONGC Approves Panna-Mukta JV's Devt Project for $131.60MM

ONGC's Board has approved sanctions for following investment proposals:

Renewal of Lakwa and Lakhmani Surface Facilities in Assam

The project aims to re-engineer and revamp the Surface facilities, which are more than 30-40 years old. ONGC Board today approved first phase of investment of Rs. 2465.15 Crore for Group A project for Surface Installation (GGS,GCP,CTF,ETP,WIP& CPP) and Associated pipeline network of Lakwa and Lakhmani Fields and Moran CTF. The Project will sustain production and uninterrupted exploitation for next 25 years and will maintain high standards of safety and environment. The revamping and renewal of surface facilities in the other producing Assets in Assam will also be taken up in phased manner.

JV Projects

Project Hydra under Panna-Mukta JV

Development of PK & South West Panna (SWP) Areas under Panna Mukta Joint Venture was approved by ONGC Board for US $131.60 million ( i.e 40% share of ONGC of total expenditure of US $329 million). The project involves installation of 2 well head platforms associated pipelines and drilling of nine wells. These additional facilities will give recovery of 14.50 MMbbls of oil and 21.39 BCF of gas from PK and SWP areas of Panna Field over period of 11 years. The ONGC share from these projects is 5.80 MMbbls of oil and 8.56 BCF of gas.

Development Plan of PL Area under Panna-Mukta JV

The project involves development of un-drained area "PL" in Southern part of main field. The estimated cost of the project, including pre-development cost is US $186.41 million (ONGC share of US $74.6 million). Incremental recovery of the order of 8.26 MMbbls of Oil and 12.25 BCF of gas (ONGC share of 3.30 MMbbls of oil and 4.90 BCF of gas) has been envisaged in this plan.

Panna-Mukta field is being operated by Joint Venture consortium of ONGC (40%), RIL (30%) and British Gas Exploration and Production India Ltd (BGEPIL) (30%).