The Hindu Business Line : Rs 16,522-cr capex outlay for ONGC

The ONGC board on Thursday approved the revised capex outlay of Rs 16,522 crore for 2006-07 against the approved budget estimate of Rs 14,354 crore. The capital outlay in the budget estimate for the next year (2007-08) has also been increased to Rs 18,359 crore. The increase is mainly due to expected increase in expenditure on exploration and also larger number of schemes.

The board also gave its nod for a capex outlay of Rs 82,670 crore for the Eleventh Plan (2007-2012). ONGC has proposed production of over 140 mt of crude oil during the Eleventh Plan.

Besides, the company has proposed development of marginal fields in western offshore basin and to commercially produce coal bed methane (CBM) and gas from underground coal gasification (UCG) projects.

Panel on bonus shares

The board has appointed a sub-committee of directors to finalise the allotment of `bonus shares'. The board has fixed October 30 as the `Record Date' for reckoning the entitlement for bonus shares.

Earlier, shareholders of the company had approved issue of bonus shares in the ratio of 1:2 by capitalising a sum of Rs 712.958 crore, comprising — Rs 172.57 crore standing to the credit of Share Premium Account, and balance of Rs 540.39 crore from the general reserves.

Petrochem complex

The board gave its nod for incorporation of ONGC Petro-additions Ltd (OPaL) to implement a petrochemical complex within Dahej SEZ through a SPV company.

The SPV OPaL will have 26 per cent equity participation of ONGC, 5 per cent by GSPC and balance by strategic investors and financial institutions. With this approval, OPaL will embark on a fast-track implementation of the mega petrochemicals project involving an estimated investment of Rs 13,600 crore. This will be commissioned around mid-2010.

Pursuant to its earlier approval to develop SEZ and associated projects at Mangalore, the board approved the incorporation of Mangalore Petrochemicals Ltd (MPL), with 46 per cent equity participation by ONGC, 3 per cent by MRPL and balance by banks and financial institutions. The board approved ONGC's `Gas-to-Wire' project in Tripura to monetise significant idle and stranded gas production potential from wells there.

The board's approval was also given for the formation of a joint venture with TERI for oil-field services for monetisation of microbial techniques (`Lab to Oil Wells') developed and patented by TERI and ONGC. The joint venture — with equal participation by ONGC and TERI — will apply tailor-made biotechnology solutions to improve flow from oil wells of ONGC, OIL and other joint venture and private Indian players, besides marketing the services in West Asia. While TERI will provide the technology, ONGC will manage field implementation and marketing.

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