ONGC bullish on offshore production
India’s leading oil and gas exploration company, Oil and Natural Gas Corporation (ONGC), is planning large investments in its offshore assets to increase recovery rates to 40 per cent, in a phased manner, from the current level of 28 per cent. N K Mitra, the company’s director (offshore), that the company is very bullish on increasing production of oil and gas from both western and eastern offshore.Where does offshore stand in ONGC’s plans today?
We basically have three assets: Bombay High, Neelam Heera and Bassein satellite. Bombay High produces 12.5 million tonnes of oil per day, whereas Neelam Heera produces around 3.6 million tonnes. Bhasin satellite produces 0.5 million tonnes of oil but produces major gas — around 29 million cubic metres.
Every five years, to increase recovery factor in production, we invest around Rs 11,000 crore to increase recovery. Bombay High South has been given Rs 6,000 crore. Bombay High North will be coming in the next two months for Rs 4,200 crore. In total, it will be Rs 10,200 crore of investments in Mumbai alone. What is the update on platform revamp?
We are taking up the revamp of our old platforms offshore and have huge investments lined up for platform developments. Every year, we will take up revamp of one of our 11 platforms. Revamping one platform costs around Rs 800 crore on an average.
The life of these platforms has been more than 25 years. The process parameters have changed. Equipment have become old. Oil and gas capacities have changed, so we are looking at revamping them in a big way. You were also looking at buying search and rescue helicopters.
We have got the approval from our board, but we have not yet decided if we will go for procurement of a helicopter or will hire the same. Though we have a contract with Pawan Hans (ONGC holds 21.5 per cent in Pawan Hans), we might also float an expression of interest for other parties.
We would place an order for two such helicopters, of which one would be on job 24 hours. If we purchase one, it will cost us around Rs 32 crore. If we hire, the agreement would be for three years.
You have various production joint ventures, but not many are active…
We do have some joint ventures (JVs) which are slow moving. We need these partners, but we insist that the technology should also be good. In many of these JVs, we have not yet come to a consensus on a single issue, so the delay.
What is the future outlook of offshore at ONGC?
The future is bright. We have aggressive growth plans. In the eleventh Plan, we are looking at Rs 85,000 crore investment and Rs 65,000 crore for our subsidiary, ONGC Videsh.
We want to produce a lot of oil and gas from both western and eastern offshore, put huge process plants in the facilites and do a lot of business outside the country.
