Industry & Economy
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Petroleum
ONGC to invest Rs 4,976 cr in 2006-07
Our Bureau
New Delhi
,
Aug 1
The Minister for Petroleum and Natural Gas, Mr Murli Deora, on Tuesday informed the Rajya Sabha that ONGC has earmarked an investment of Rs 4,976.02 crore for 2006-07, which includes expenditure on development drilling and capital projects. The crude oil production of ONGC during this period is estimated at 27.35 MMT.
The nature of investment in exploration and production industry is such that it is difficult to directly correlate investment to annual incremental production, as one of the major efforts is to arrest the natural decline in fields, which have been producing for a long time, and there is a time lag between investment and actual production, the Minister said.
Most of the producing fields of ONGC are ageing and in the declining phase of production, Mr Deora said. Investments are consequently being made to arrest the natural decline (normally at the rate of 6-8 per cent per annum) in production, maintaining the reservoir health, and gaining additional production wherever feasible, he added. The quantity of crude oil expected to be produced during the current year is 27.35 MMT against last year's actual production of 24.404 MMT.
The increase in crude oil production is mainly due to restoration of production loss because of Mumbai High North accident, and investments that have resulted in better reservoir health, he added.
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