In the next five years government-run Oil and Natural Gas Corporation would invest Rs 1,22,000 crore (Rs 1,220 billion) to expand its activities, an official said on Thursday.
The gas major "plans to invest Rs 76,000 crore (Rs 760 billion) domestically and Rs 46,000 crore (Rs 460 billion) overseas" during five-year plan ending 2012, its Chairman and Managing Director R. S. Sharma told reporters in Mumbai.
The company earns a cash profit of Rs 2,000 crore (Rs 20 billion) per month and domestic investments will be made through internal accruals.
Most of the domestic investments will be for surveying, development, drilling and revamping of existing blocks, he said.
ONGC would invest Rs 20,000 crore (Rs 200 billion) for activities off the east coast, including operating e
xpenditure by 2011-12,
he said.
Sharma said the basin off the east coast has expected reserves of more than six trillion cubic feet of gas. It is also likely to produce 8,000 barrels of oil per day.
ONGC expects an additional 46 MMT of oil and 55 BCM of gas production over a period of 15-25 years,' Sharma said. Answering another question he said, ONGC production was better in the face of global slowdown in crude production.
ONGC has completed five offshore projects valued at $1 billion in the current fiscal. It has 13 projects under execution and 11 projects were completed by April this year.