Companies

ONGC unlikely to produce more crude oil than last fiscal

Amit Mitra Hyderabad | Updated on January 28, 2013 Published on January 28, 2013

BL29_P3_ONGC_

Misses 11th Plan target by 11 per cent





Oil and Natural Gas Corporation may not achieve any additional crude oil production this fiscal and just about reach last fiscal year’s levels due to delay in commissioning of some of its marginal assets.

The company expects to produce 27 million tonnes of crude oil and 25.7 billion cubic m of gas this fiscal, according to Chairman and Managing Director Sudhir Vasudeva.

This is more or less what the company produced last fiscal. “In 2013-14, we expect to add 2.9 million-tonne oil equivalent to our production,” he said.

He was in the city in connection with the foundation-stone-laying ceremony for the fifth green building of the company. ONGC produced 124.3 million tonnes during the 11th Plan Period, 11 per cent below its target of 140 million tones. It is targeting a two-fold increase in production from current levels by 2030. Vasudeva said the company’s net realisation in the first half of the fiscal was $46.22 a barrel, which was worrisome. “We need a net realisation of at least between $55 and $60 a barrel to sustain,” he said.

He expected gas production from its G1 marginal field in KG basin from June, which will add 2 mscmd.

“We have other projects S1 and Vasistha under tendering stage. They hopefully will be on production by 2015 and add another 6 mscmd of gas. Then, the big discovery we have made at 98/2, adjacent to RIL’s KG-D6, from which we hope to start production by 2016-17. That has potential of 25 mscmd,” Vasudeva said.

All put together, the company has in the pipeline 35 mscmd of additional gas production a day, which is likely to fructify by 2016-17.

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Published on January 28, 2013
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