Also approves Dahej petrochemicals complex
New Delhi, Aug. 8
The board of Oil and Natural Gas Corporation Ltd (ONGC) on Tuesday approved the development of C-series at the Mumbai offshore and Dahej petrochemicals complex.
In a statement issued here, the company said that the C-series marginal field located 60 km west of Daman in the Tapti Daman block of Mumbai offshore will be developed with an investment of Rs 3,195 crore.
The mega petrochemicals complex, with cracker of global capacity the highest in the country so far, will involve an investment of about Rs 13,600 crore for its implementation, along with downstream polymer plants. The project would be commissioned mid-2010.
The field, situated at water depths of 19-35 meters, is estimated to hold in-place reserves of 15.54 billion cubic meters of gas and 4.46 million cubic meters of condensate, the company said. The development will be completed by December 2008 27 months from the award of contract. Eight platforms and 17 wells will be drilled to develop the marginal field. The estimated gas production would be 3 million cubic meters per day.
Though the field was discovered in the 1990s, it became viable recently due to the strong international prices of gas and crude.
On the board's decision on the Dahej petrochemicals complex, the company said, "in pursuance of ongoing business for value chain integration, the company will be implementing a global scale petrochemicals complex comprising 1.1 million tonnes per annum of ethylene capacity dual feed cracker, along with associated units and polymer plants, to manufacture HDPE, LLDPE, PP and styrene butadiene rubber (SBR) at Dahej in Gujarat."
This petrochemicals complex will be integrated with the company's C2-C3 plant, which is currently under execution at Dahej, and naphtha as feedstock from its operational units at Hazira and Uran. According to the company, the project would be implemented through a special purpose vehicle, with ONGC retaining management control.
GSPC has evinced interest in the project as a joint venture partner. With assistance from the Gujarat Government through the participation of its nominee, GIDC, as a co-promoter, ONGC's petrochemicals complex, as the anchor industry, will come up in the Dahej Special Economic Zone (D-SEZ). "This would help in optimising the project cost and the development of various plastic processing industries within SEZ to seize significant export market potential," the company added.