ONGC Plans Investment in Mumbai High Re-Development

ONGC plans to infuse around Rs 1,800 crore in its ongoing Mumbai High re-development plan. "We plan to invest another Rs 785 crore in Mumbai High North and roughly Rs 1027 crore in Mumbai High South," Mr. Kharak Singh, Executive Director and Mumbai High Asset Manager said.

The company's planned investments this fiscal period equals the total investments on the Mumbai High re-development since the revival plan was kicked off in 2001. ONGC has so far made a cumulative investment of Rs 1830.5 crore on both Mumbai High North and South re-development.

The field has contributed almost 35 percent of ONGC's total revenues at Rs 35,386 crore in the financial year ended March 31, 2003.

Of the 227 wells scheduled to be drilled as part of the program, ONGC has completed drilling at 67 wells and has recovered incremental oil and oil equivalent gas of 4.5 to 5 million tons. " We hope to add around 2 million tons of oil and oil equivalent gas every year," Mr Singh said.

Mumbai High re-development, which began in 2001 with the aim of improving and maintaining the oil and gas field, is scheduled for completion in 2005 for MH North and 2006-07 in the case of MH South. The total investment in the project is expected to be around $1.7 billion.