ONGC investing Rs. 22,500 crore in redevelopment projects.

Oil and Natural Gas Corporation (ONGC) is in the process of investing Rs. 22,500 crore in redevelopment projects, to add capacity of 16.7 million tonnes of oil and 56 billion cubic metres of gas, Chairman and Managing Director D K Sarraf said recently.

'(In 2014) we launched Mumbai High North Redevelopment Phase-III, Mumbai High South Redevelopment Phase-III, integrated development of the Bassein, Mukta and Panna formations and Daman development,' he said at a Republic Day function at ONGC's headquarters.

The first gas output from the KG-DWN-98/2 (NDA) field in the eastern offshore is anticipated by 2017-18 and the first oil output by 2019. 'These are very important projects for us and a lot of hope rides on their success. They will also serve as a litmus test for our project management skill to implement the projects without time and cost over-run and safely,' he said.

Offshore output, he said, had risen very significantly. 'Although this has, to an extent, masked the worrying trend of decline in our onshore portfolio, we must spare no effort to reverse this,' he added.

In 2014-15, he said, 16 discoveries were made on new sources of output, surpassing last year's total of 14. 'Therefore, the reserve replacement ratio is again expected to be in excess of one for a 10th consecutive year.'


BS