Date:08/12/2006 URL: http://www.thehindubusinessline.com/2006/12/08/stories/2006120806510300.htm

ONGC plans to invest Rs 13,000 cr in western offshore fields

Our Bureau

Mumbai , Dec 7

Oil and Natural Gas Corporation Ltd (ONGC) is planning to invest Rs 13,000 crore in its western offshore oil and gas fields over the next few years, ONGC officials familiar with the development said.

By 2030, additional 10.6 million tonnes of crude and 2.265 billion cubic metres of natural gas would be available through this redevelopment, they said.

The western offshore fields consist of Mumbai High, Neelam and Heera, Vasai and Satellite fields.

ONGC officials said the company would create new oil-processing platforms, oil well platforms and increase oil recovery from operational platforms. Mumbai High, which is operational since 1974, is an ageing oilfield, and the oil recovered from this field is falling. Therefore, additional money would have to be invested for advance recovery techniques, officials said.

The company's strategic vision for 2001-20 is to increase average oil recovery from 28 per cent to 40 per cent from its oil fields. The current global benchmark is 40 per cent, officials said.

For Heera and South Heera fields, Rs 2,300 crore would be invested for redevelopment. Marginal field B-134 would also be redeveloped through the Heera facilities. The redevelopment involves four new well platforms, 72 km of sub-sea pipelines, drilling of 28 wells through new platforms.

New vessels

The company would also be investing about $1480 million for acquiring 16 new vessels. Of these 12 would be offshore supply vessels, three would be drill ships and one, a multi-support vessel.

Currently, about 100 vessels are either owned or chartered by company. The final decision for acquiring the vessels is yet to be taken, company officials said.