State-run ONGC will ramp up production in at the very least six to eight fuel fields to safe the advertising and marketing and pricing freedom introduced by the Union cupboard on Thursday. ONGC is probably going to contribute significant slice of the 40 mscmd of fuel that’s projected to be added to the nation’s capability of 80 mscmd.
ONGC at the moment produces 70 mscmd ( million customary cubic meters per day) of fuel from its operational fuel fields, which is nearly 90% of India’s whole production of pure fuel.
On fast foundation the corporate expects KG basin area KG DWN98/2, which has produced first fuel on March 5 to contact the production of three mscmd by March 21 and peak of 15 mscmd by FY23 to derive profit of promoting and pricing freedom the place associates can now take part in bidding rounds to purchase personal firm fuel.
Shashi Shanker, chairman and managing director of ONGC informed FE in a submit AGM convention name that among the tasks the place ramp up will happen are: Daman Offshore challenge in the Tapti Basin; GK-28/42 in the Gulf of Kutch off the Gujarat Coast, GS-OSM 2004/1 in the Western offshore close to Saurashtra, MB-OSN 2005/1 in Mumbai offshore in JV with GSPC, KG-OSN 2004/1 in the Krishna Godavari basin in Andhra Pradesh, and Custer 1 and Cluster three wells in KG DWN 98/2.
“We will do a detailed study of the projects and proceed depending on the price mechanism that will be decided. We are the largest contributor to India’s total gas production and will make significant contribution to the 40 mscmd that the oil minister said will get added to India’s total capacity after the pricing and marketing freedom,” Shanker mentioned.
The corporate is hopeful of including at the very least 2 wells to KG DWN98/2 fuel area by February 2021 and count on 1.13 billion cubic meter (bcm) of fuel per day, equal to three mscmd of fuel by March 2021. This doubtless to attain the height production of 6 mscmd of fuel by FY23, Shanker mentioned.
Thought of to be the most important subsea challenge in India, block 98/2 can also be anticipated to have a complete peak oil production charge of 80,000 barrels per day.
The corporate will proceed with its capital expenditure programme for important tasks and the rationalisation in capex of Rs 6,000 crore is generally for fascinating tasks the place provide chain disruptions have occurred due to Covid-19 associated points, mentioned Shanker. The oil main deliberate for Rs 32,000 crore capital expenditure in FY21, however rationalised it to Rs 26,000 crore due to Covid associated disruptions in provide chain.