ONGC OKs 35.7-bln-rupee invest on upgrade; made 7 discoveries Apr

ONGC OKs 35.7-bln-rupee invest on upgrade; made 7 discoveries Apr
Monday, May 5
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NEW DELHI - Oil and Natural Gas Corp. Ltd. plans to invest 35.7 bln rupees to maintain oil and gas production from its existing fields, a company release said over the weekend. The state-run exploration major also said it made seven new oil and natural gas discoveries last month.

Three of the new discoveries are from exploratory wells and four new pools
from development wells, ONGC said. "Though not very significant, these discoveries will help in maintaining production levels from aging and declining fields."

Most of ONGC's producing fields have matured and are now depleting, forcing the company to undertake major revamping to maintain hydrocarbon production.
In its memorandum of understanding signed with the government for the current financial year to March, ONGC hopes to maintain output at the level achieved in 2007-08 (Apr-Mar)--29.04 mln tn crude oil and 25.05 bln cu m of natural gas.

Of the 35.7-bln-rupee investment approved by the company's board, most
pertain to upgrade of processing platforms in fields offshore Mumbai. The company's board also approved investing 18.04 bln rupees in the development of Mangala, Aishwariya, Raageshwari and Saraswati fields in Rajasthan, in which Cairn India is the operator.

Cairn holds 70% in the Rajasthan block, which holds these fields. ONGC holds the remaining 30%. These fields are expected to produce 286.41 mln barrels of oil till 2020. "The estimated capital expenditure for development of these discoveries is 60.14 bln rupees. ONGC's share in this capex is 18.04 bln rupees," ONGC said.

ONGC said during 2007-08, the company added 63.82 mln tn oil-equivalent in
domestic acreages.

 

At 1:10PM, shares of ONGC were at 1,041 rupees on the National Stock Exchange, flat from close Friday.

 

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