The Hindu Business Line : ONGC to invest Rs 4,000 cr in Mumbai High

New Delhi, Oct. 31 ONGC plans to invest about Rs 4,000 crore on redevelopment of Mumbai High North fields, which would enable the company to enhance production from the ageing oil field. “We will seek a board approval for investing around Rs 4,000 crore for redevelopment of Mumbai High North oilfields, shortly,” ONGC Director (Offshore), Mr N.K. Mitra, said.

Speaking to newspersons at the sidelines of a conference said, “We are already investing Rs 5,713 crore in Mumbai High South field redevelopment.” ONGC has already invested Rs 3,239 crore in the redevelopment of Mumbai High North fields and Rs 6,579 crore in Mumbai High South that helped the company sustain oil production of over 2,40,000 barrels per day.

The fresh infusion of funds in Mumbai High South field would give an additional 22 million tonne of oil between 2010 and 2030.

“Crude oil production from Mumbai High fields is likely to rise to 3,00,000 barrels per day by 2008-end from the 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,” Mr Mitra said.

The company would also invest Rs 2,853.29 crore in the construction of a Mumbai High North complex in place of the BHN complex that was destroyed in a fire two years ago, he said. The new complex would be completed by 2010-11.

Kakinada project

ONGC is in talks with the Hinduja group for its proposed refinery at Kakinada, Andhra Pradesh. “We are in informal talks with Hinduja’s on this,” Mr R.S. Sharma, Chairman, ONGC said. A decision on the proposed $6-billion refinery at Kakinada would be taken next month after economic feasibility studies are completed.

Mr Sharma said ONGC was talking to the Hinduja group for a possible strategic partnership. ‘

‘The project is expected to cost Rs 24,000 crore to Rs 25,000 crore and will take 3-4 years to build from the date of starting development,” he said.

The project is proposed to be built by a special purpose vehicle, Kakinada Refinery and Petrochemicals Ltd, in which ONGC will have a 46 per cent stake.

Another three per cent stake will be held by ONGC’s subsidiary Mangalore Refinery and Petrochemicals Ltd. The remaining stake would be held by a strategic partner and financial institutions.

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