ONGC's domestic oil and gas exploration and production spending will rise by 56 per cent to more than Rs 80,000 crore (Rs 800 billion) in 2007-12 as against Rs 51,299 crore (Rs 512.99 billion) expenditure in the 10th Plan Period (2002-07), company chairman and MD, R S Sharma said.
On overseas oil and gas properties acquisition, about Rs 50,000 crore (Rs 500 billion) has been earmarked for the 11th Plan as opposed to Rs 13,500 crore (Rs 135 billion) in the current plan period.
Besides, the company would also invest Rs 8000 crore (Rs 80 billion) in expanding Mangalore Refinery and Petrochemical Ltd capacity to 15 million tonnes per annum from 9.69 million tonnes currently, he said.
Sharma said deepwater and frontier basins are thrust areas for ONGC's domestic E&P. The focus areas would also include technology solutions for improving recovery factor, expeditious development of new as well as marginal fields, refurbishment of surface facilities and technology induction.
The improved oil recovery/enhanced oil recovery projects in 15 major fields had arrested the 7 per cent decline in production from the matured fields and reversed the trend.
Production from the 15 fields, which was 24.08 million tonnes per annum, fell to 19.56 mtpa in 1999. However, this trend was reversed and production rate increased by 2.25 per cent per annum. Output from the 15 major fields is 22.65 mtpa in 2006. But for IOR/EOR the production would have dipped to 12 mtpa this year, he said.
Projects worth Rs 1,703 crore (Rs 17.03 billion) have been completed and another 10 projects (Rs 12,138 crore) were under implementation, Sharma said.
Envisaged oil gain through the IOR/EOR projects was 110 million tonnes by 2020, he said adding 25 IOR projects have been identified in other medium fields.
ONGC plans to invest about Rs 12,700 crore (Rs 127 billion) in development of marginal fields in 11th Plan period. Besides, Rs 1,263 crore (Rs 12.63 billion) is being invested in G-1 and GS-15 field development, Rs 507 crore (Rs 5.07 billion) in D-1 field development, Rs 1,688 crore (Rs 16.88 billion) in Vasai (East) development and Rs 2,937 crore (Rs 29.37 billion) in additional development of Bassein field.
Sharma said Rs 2,570 crore (Rs 25.70 billion) is being invested in renewal of Assam oil field and another Rs 3,492 crore (Rs 34.92 billion) in other revamping projects.