ONGC plans to double its oil production in the next 5-6 years, Mr Dinesh K Sarraf, Chairman & Managing Director, ONGC said while addressing a gathering during Independence Day celebrations here.
In the past 3 years, despite oil prices tumbling to record lows, we have not only sustained production from our existing fields through incremental inputs but also taken large meaningful and calculated investment decisions to ensure sustained volumes and financial growth.
“Share of gas in India’s energy basket is set to increase from 6.5% to 15%. Government is focused on making our economy gas based”, he said.
Talking about ONGC’s plans, Mr Sarraf said that many of ONGC’s new projects are gas based. “We have flagged off 17 production related projects with a CAPEX of Rs. 76,000 Crore in the last three years. These projects would produce 69 MMT of crude oil and 118 BCM of Natural Gas during their profile period. Cumulative production from these projects would peak during 2020-21 at 6.65 MMT of crude and 13.38 BCM of gas which is 45% of our oil and gas standalone production during FY’17”, he said.
ONGC’s flagship project – development of Cluster-2 of KG-DWN-98/2, continues to be on stream; all activities are going on at fast pace, Mr Sarraf said. The project would produce about 25 MMT of oil and 50 BCM of gas with peak production of 4 MMT of oil and 5.5 BCM of gas. This would be equivalent to 17% and 24% of current standalone oil and gas production respectively– from a single project.
“During the last three financial years, we have completed 15 production related projects (including 8 brownfield and 7 greenfield) with capital investment of Rs. 54,000 Crore. These would produce 87 MMT of crude and 56 BCM of gas during their profile period”, he said. During FY’17, ONGC produced 5 MMT of crude and 3.5 BCM of gas from these projects, which is 22% and 16% of its standalone crude and gas production respectively.
Hon’ble PM has envisioned a 10% reduction in Hydrocarbon imports by 2022. As India’s premier E&P Company, we have a major responsibility to fulfill this vision.
In FY’17, we made 23 hydrocarbon discoveries with a total reserve accretion of 65 MMtoe. Our overall 2P Reserve Replacement Ratio was 1.45, making it the 11th consecutive year that the Company has recorded an RRR in excess of ‘one’. While our exploration track record has been consistently noteworthy, the fact that we successfully put 8 out of the 13 onshore discoveries on production within the same year i.e. FY’17, reflects our desire to immediately monetise these discoveries, he said.
Our onshore assets have reversed declining trend in production, persisting for several years, by registering crude production at 5.97MMT in FY’17 as against 5.82 MMT in FY’16. I am sure that ONGC will demonstrate this production growth in FY’18 also. “Production numbers till date support this belief”, he said.
ONGC celebrated 70 years of India’s independence with renewed pledge to contribute towards India’s energy security. Mr Sarraf motivated ONGC employees to keep a close eye on the latest relevant upstream technologies to unearth the newly discovered volumes which are mostly located in difficult geologies such as Deepwater, High Pressure-High Temperature fields or even Gas Hydrates, which promises to be the energy source of the future.
