The Hindu Business Line : ONGC plans to invest Rs 10,000 cr in Mumbai High redevelopment

EVEN as the redevelopment project in Mumbai High is on, ONGC has started planning for Rs 10,000 crore investments in the country's biggest oilfield between 2007 and 2012.

The aim is to extend the life of the reservoir and improve recovery factor up to 40 per cent. The project will also include upgradation of equipment.

Sources told Business Line that the company had recently appointed two domain experts to prepare a detailed techno-economic feasibility report on field upgradation and recovery factor improvement.

Discovered in 1974, Mumbai High was initially estimated to have a life span of 20 years. As production from the ageing field dropped from a peak rate of 20 million tonnes (mt) to 12 mt per annum, ONGC launched redevelopment projects worth Rs 8,200 crore at Mumbai High North and South assets in February and September 2001.

Being commissioned in phases, the project has already led to an increase in production to 12.55 mt a year. It is expected to increase to 15 mt, once the project is implemented in full. The recovery rate is expected to move up to 34 per cent.

ONGC has announced that Mumbai High North redevelopment will be completed six months ahead of schedule in December 2005.

Redevelopment of Mumbai High South will be completed in 2006.

Talking on future production of crude, the sources said that, while the G1 and G15 fields in the Krishna Godavari (KG) basin will start producing at the rate of two mt per year by early next fiscal, the company has already issued limited consultancy tenders for development of the proven field of the G4 and G29 deepwater blocks, also in the KG basin. Work is also on to expand the reach of the Vasisth field.

The company will drill two exploratory wells in the Saurashtra off-shore field.

While exploratory drilling of the first well is on in Bengal off-shore, the company's plans for Mahanadi may suffer a delay primarily owing to environmental concerns.

ONGC expects to commence drilling in one block in Mahanadi by May 2007.

Environmental concerns are also preventing ONGC from starting exploratory drilling in the Gulf of Mannar.

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