Business Daily from THE HINDU group of publications
Wednesday, Apr 18, 2007
ePaper
Business Daily from THE HINDU group of publications Wednesday, Apr 18, 2007 ePaper |
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Industry & Economy
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Petroleum
Our Bureau
New Delhi April 17 ONGC, BG and Reliance Industries, the consortium partners of Panna, Mukta, and Tapti (PMT) fields, propose to raise the output from the fields by 30 per cent at an investment of $520 million. Speaking to newspersons, Mr Sudhir Vasudevan, Executive Director (Offshore), ONGC, said: "The gas production would increase to 17 million standard cubic metres per day (mmscmd) by August-September from the current 13 mmscmd." He was speaking at the sidelines of a national conference on `India's expanding gas markets,' organised by Observer Research Foundation. The partners have already invested $200 million in increasing oil production from the fields to 42,000 barrels per day from 29,000. While ONGC holds 40 per cent stake in this field, BG and Reliance hold 30 per cent each. ONGC, BG, and RIL, which were marketing 13 mmscmd of gas jointly, plan to sell additional volume expected from August-September separately in proportion to their shareholding. Currently, the partners sell six mmscmd from the field to GAIL at $4.75 per million British thermal unit (mBtu). Another 4.8 mmscmd is sold to customers such as GSPC at $4.08 per mBtu, and the remaining 1.3 mmscmd at $5.7 per mBtu.
Sales contracts
"All the gas sales contracts are coming up for renewal in March 2008. We need to see what price we get then," he said. For ONGC's share of additional gas, the company has contracted sale with Torrent Power at $4.75 per mBtu and with Rajasthan Vidyut Nigam at $4.6 per mBtu. BG is selling its share of gas to Gujarat Gas, its subsidiary, at $5.57 per mBtu. Reliance may take its share of gas to one of its petrochemical plants.
More Stories on : Petroleum | Oil & Natural Gas Corporation Ltd | Reliance Industries Ltd
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