ONGC to invest Rs.7,327 cr in four projects

The Dollar Business Bureau 

Government-owned Oil and Natural Gas Corporation Ltd (ONGC) said on Thursday that it will invest around Rs.7,327 crore for developing four projects that include the Ratna oil field which it got back from private player Essar Oil. 

The Board has approved investment worth of Rs.4,104.63 crore for the development of R-Series oil fields that include reviving of an R-12 (Ratna), said ONGC in a statement. 

Discovered in 1979, Ratna field had started production in the year 1983 and continued the production till 1994. The contract had been awarded by the Government in 1996 for the development of Ratna and R-Series oil fields to a consortium of companies headed by Essar Oil. 

However, due to several issues, the contract could not be inked. In March 2016, the Government returned the Ratna and R-Series oil fields to ONGC for production and development. 

Located about 130 km from Mumbai, Ratna-R Series fields have 37 structures, out of which, 8 structures were considered to bear oil and just one field, R-12 (Ratna), was under production during 1982 to 1994 period. The rest of the R- series structures are still to be monetised, the company said. 

The first oil is estimated by 2018-19, however, the peak capacity of 14,583 barrels a day is likely to be attained in 2019-20. During the life of the project, the cumulative production of the field would be 8.39 million tonnes of oil and about 1.696 billion cubic meters of gas, ONGC said. 

The Board of ONGC has also cleared the redevelopment of Santhal oil field in the state of Gujarat worth Rs.1,162.56 crore. Found in 1971, the field is located in the Mehsana Asset in Northern Gujarat and it was put to production in 1974. 

To double recovery rate from present 17%, ONGC will make the use of enhanced oil recovery (EOR) technique. After the project start, cumulative production of oil from the field is likely to be around 20.46 million tonnes by 2029-30. 

The company will going to invest further Rs.546.15 crore for development of the B-147 field at the western offshore. 

“The field, discovered in March 1991, is a marginal field which would have been otherwise uneconomical to develop on a standalone basis. However, after the creation of infrastructure in the nearby fields, there is an opportunity to develop this field by utilising existing surface facilities in an optimised cost environment,” the statement said. 

The field has the production capacity of 0.708 billion cubic meters of gas and 0.489 million tonnes of oil during its project life, with the highest production is expected around 1,576 barrels per day of oil and 0.25 million standard cubic meters of gas per day. The project is expected to complete by November 2019. 

ONGC will spend another Rs.511.30 crore in the development of BSE-11 block at the western offshore for the production of 1,000 barrels per day of oil, 1,808 barrels a day of condensate and the peak production capacity of gas is 0.34 mmscmd. 

The oil major said Rs.1,002.67 crore more would be invested in the NBP field’s 4th Phase Development for producing 2.08 million tonnes of oil. 

NBP field, BSE-11 block and B-147 will be scheduled to complete by November 2019.