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Pratim Ranjan Bose

Kolkata, Feb. 22

Oil and Natural Gas Corporation Ltd (ONGC) is now considering a Rs 2,800-crore additional development plan for the Bassein gas field.

Though witnessing a drop in production after being operational for over 20 years, Bassein is now producing 28.2 million standard cubic metres of gas per day (mmscmd), which is more than half of the country's total natural gas production of 53 mmscmd.

Once recognised as one of the largest gasfields in the world, production from Bassein has dropped by 3 mmscmd this year. Sources say that unless a revamp plan is put in place immediately, the field will witness a rapid drop in the next few years leaving a negative impact on consumers in Northern and Western India.

According to sources, after implementation of the development plan, production from the gas field is expected to stabilise at 25 mmscmd over the next five years.

Profitability of the field may also witness a surge as close to 19 mmscmd of gas will be sold through new pricing arrangements. Currently, ONGC gets a lower price for gas produced from the old fields, which often acts as a disincentive for re-development of the fields because of the heavy investments required.

The "additional development" of Bassein will include setting up new platforms and two new booster compressors. While the detailed feasibility report is under preparation, preliminary estimates suggest that the project cost will be close to Rs 2,800 crore. ONGC has already identified 97 million tonnes of oil and oil equivalent gas in east Bassein.

Meanwhile as part of a Rs 12,000-crore project to boost production in 15 matured fields, including Bombay High, the company has decided to carry out a Rs 110-crore revamp programme at Neelam oil and gas field.

Having attained a peak production of 95,400 barrels per day in November 1994, Neelam recorded a production of 21,500 bpd in November 2004. The enhancement project is expected to increase output by 15 per cent.

The bulk of the investment, however, is directed towards Bombay High, which is currently undergoing a Rs 8,200-crore revamp plan. The field recorded a five-year production high of 2,70,000 bpd last month. While the revamp project is still under way, the 30-year-old asset is expected to produce over 3,00,000 bpd of oil during the next fiscal.

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