"We have launched the second redevelopment of Mumbai High field," ONGC Director (Offshore) N K Mitra said. ONGC had previously invested Rs 3,239 crore (Rs 32.39 billion) in the redevelopment of Mumbai High North fields and Rs 6,579 crore (Rs 65.79 billion) in Mumbai High South that helped the company sustain oil production of over 2,40,000 barrels per day despite a natural decline in the output in the ageing field.
"We are already investing Rs 5,713 crore (Rs 57.13 billion) in Mumbai High South field redevelopment and we will take to the board soon a separate proposal to spend about Rs 4,000 crore (Rs 40 billion) on Mumbai High North fields," he said.
The additional investment would help arrest production decline from the ageing field. The new investment in Mumbai High South field would give an additional 22 million tonnes of oil between 2010 to 2030, while Mumbai High North spending would lead to production of additional 15 million tons oil over the period.
"Crude oil production from Mumbai High fields is likely to rise to 3,00,000 barrels per day by 2008-end from current rate of 2,54,000 barrels per day. It will remain at those levels for 2-3 years and then output would decline to about present day levels," he said.
Mumbai High is India's largest oil field and has been under production for over 25 years now. "But for these investments, production from the field would decline to 8-9 million tons by 2010-11 from current output of a little less than 13 million tonnes," he said.
The second phase of investment would raise the recovery factor from 28 per cent to 34-35 per cent.
Mitra said in the first phase of redevelopment, 23.25 million tons of oil and 6.10 billion cubic meters of gas were added from investment in northern part of the Mumbai High field. Similarly, the investment in Mumbai High South would yield 33.85 million tonnes of oil and 10.26 bcm of gas by 2030.
ONGC would also invest close to Rs 1,000 crore (Rs 10 billion) for turnaround of Heera and Neelam fields off Mumbai coast. This investment would be in addition to Rs 2,305.30 crore (Rs 23.05 billion) being deployed for redevelopment of Heera and South Heera fields to get 10.685 million tonnes of oil and 2.265 bcm of gas from June 2010 to 2030.
The company would also invest Rs 2,853.29 crore (Rs 28.53 billion) in construction of a Mumbai High North complex in place of the BHN complex that was destroyed in a fire two years back, he said. The new complex would be completed by 2010-11.
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