ONGC Videsh (OVL), which has so far invested $23.6 billion in hydrocarbon assets overseas, expects its output to increase 5% in FY15. The PSU explorer is looking at a production of 8.78 million tonne oil equivalent (mtoe) till March 31 against 8.36 mtoe in the previous financial year.
“The increase in output is because of a higher output from its assets in Azerbaijan, Myanmar and Brazil projects. This is more than the targeted production,” said a source.
OVL had registered the highest-ever production of 9.45 mtoe in 2010-11. However, the output fell after socio-economic unrest disturbed production in countries such as Sudan and Syria. The explorer’s assets in South Sudan that used to produce about 45,000 barrels per day are not in full operations, while its fields in Syria where output could have ranged nearly 70,000-80,000 barrels per day are completely shut because of geopolitical turmoil.
In addition, one of its expensive acquisitions worth $2.1 billion in 2009 of Imperial Energy turned out to be the worst buy in recent times after the output drastically fell to less than 7,000 barrels per day now against forecast of 80,000 barrels per day.
In Venezuela, output from the San Cristobal field in Junin at the Orinoco region of the Latin American nation dropped, said the source, adding this is because the water-injection programme has not completed, which would have help in increasing the output. On other hand, hydrocarbon production from Carabobo-1 project in the same heavy oil belt has commenced and progressing as per schedule.
The Carabobo-1 project, where OVL holds 11% stake, is expected to yield an output of 30,000 barrels per day of crude oil in the first development phase, which should quadruple to 90,000 barrels in the second phase.
OVL, which had a paid-up share capital of R10,000 crore in of December 2014, has 13 producing projects, another four are at development stage, while exploration programme are currently going on in 17 projects.
In the last less than two and half years, OVL has made new acquisitions to the tune of $ 4 billion including 2.72% in the Azeri, Chirag and the deep water portion of Guneshli Fields in the Azerbaijan; 2.36% interest in the Baku-Tbilisi-Ceyhan pipeline; additional 12% in Block BC-10 at Campos Basin in Brazil; 6% stake in the Rovuma Area 1 offshore block in Mozambique from Videocon and direct 10% stake in the same Rovuma Area 1 from Anadarko.