State-run Oil and Natural Gas Corporation (ONGC) on Tuesday said that crude oil production from its KG-DWN-98/2 block in the Krishna-Godavari basin is expected to hit 10,000 barrels per day (b/d) by November 2023.

Besides, the output from the block will double to 20,000 b/d by the end of the current financial year. It is also targeting to reach an output of 45,000 b/d by FY25, the oil and gas exploration and production (E&P) major said.

The company has also increased its capex on E&P activities during FY24 to around ₹10,000 crore, which is around one-third of the E&P major’s total capex for the fiscal year. Besides, it will incur a capex of around ₹10,000 crore annually for the next five years on exploration.

The company will continue with its capex programme of over ₹30,000 crore, emphasising focused exploration and enhanced capex investment for rejuvenating mature western offshore fields.

Currently, the company has 22 major projects of over ₹100 crore under implementation with a total capex of around ₹60,000 crore with an envisaged lifecycle gain of around 94 million tonnes of oil equivalent (MTOE). It has a strong pipeline of more than 40 upcoming projects with an estimated capex of ₹83,000 crore.

Oil production

Earlier during the day at the Maharatna’s annual general meeting (AGM), ONGC Chairman A K Singh said that the company notified eight new hydrocarbon discoveries (3 New Prospects and 5 New Pool discoveries) in its operated acreages, including one discovery in OALP (Open Acreage Licensing Policy) block, 1 in NELP block and six discoveries in nomination blocks.

“Looking forward, over the next few years, domestic production is expected to enhance with the incremental output from our KG deep-water field in the Eastern Offshore, ‘U’ Field of this project has been fully monetised, and oil production from ‘M’ field shall commence in the current fiscal. We are happy to share that we have deployed two drill ships and commenced drilling exploratory wells in the deep-sea of Mahanadi Basin of Eastern Offshore..

Green Energy

Singh said that the CPSU will invest ₹2 lakh crore by 2038 to achieve Net Zero carbon emissions by 2038.

The company will first invest ₹1 lakh crore by 2030 on enhancing its green energy products and services footprint, including 10 gigawatts (GW) of renewable energy capacity and green ammonia, among other initiatives.