India’s state-owned Oil and Natural Gas Corp. (ONGC) intends to spend approximately $6.51 billion to develop new oil and gas fields as well as redevelop mature fields in an attempt to increase its petroleum production.
The move by ONGC, producer of 204.93 million barrels of crude oil and 915.96 billion cubic feet (Bcf) 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 for the development of six projects on India’s east and west coast, while spending $2.73 billion to redevelop the Mumbai High fields and the Heera-South Heera fields in the country’s western offshore region.
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.
ONGC will also spend $946.76 million on the Mumbai High South fields and $874.85 million 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 to develop, which will produce 977.05 Bcf (27.67 Bcm) of gas by 2034-35.
Turning to the nearby South Bassein field, ONGC plans to pump in $720.72 million in funds for the project by April 2017 to boost incremental gas production of 664.90 Bcf by 2030-31.
The firm has also budgeted $386.41 million for more development work at the Vasai East field, which will be completed by December 2018, to produce an additional 14.45 million barrels of oil and 69.56 Bcf of gas by 2029-30.
Over in India’s east coast, the state-owned oil firm will spend $634.34 million 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 of gas, while another $780 million will be invested on the Krishna Godavari basin’s Nagyalanka field for the latter to commence production in September 2016.
