ONGC plans to double its gas production in the next five to six years, said its chairman and managing director Dinesh K Sarraf while addressing a gathering during Independence Day celebrations.
In the past three years, despite oil prices tumbling to record lows, ONGC has not only sustained production from its existing fields through incremental inputs but also taken large meaningful and calculated investment decisions to ensure sustained volumes and financial growth.
He said, “Share of gas in India’s energy basket is set to increase from 6.5 per cent to 15 per cent. The Government is focused on making our economy gas based.”
Talking about ONGC’s plans, Sarraf said that many of ONGC’s new projects are gas based. “We have flagged off 17 production related projects with a CAPEX of Rs 76,000 crore in the last three years. These projects would produce 69 MMT of crude oil and 118 BCM of Natural Gas during their profile period. Cumulative production from these
projects would peak during 2020-21 at 6.65 MMT of crude and 13.38 BCM of gas which is 45 per cent of our oil and gas standalone production during FY’17”, he said.
“During the last three financial years, we have completed 15 production related projects with capital investment of Rs 54,000 Crore. These would produce 87 MMT of crude and 56 BCM of gas during their profile period”, he said.
During FY’17, ONGC produced 5 MMT of crude and 3.5 BCM of gas from these projects, which is 22 per cent and 16 per cent of its standalone crude and gas production respectively.
“Our onshore assets have reversed declining trend in production, persisting for several years, by registering crude production at 5.97MMT in FY’17 as against 5.82 MMT in FY’16. I am sure that ONGC will demonstrate this production growth in FY’18 also. Production numbers till date support this belief”, he said.