1. ONGC western offshore assets see 11% rise in crude oil production

ONGC western offshore assets see 11% rise in crude oil production

Public sector explorer ONGC has seen its crude oil output from its Western Offshore region, which contributes 42% of India’s domestic production

By: | Published: October 28, 2014 2:17 AM

Public sector explorer ONGC has seen its crude oil output from its Western Offshore region, which contributes 42% of India’s domestic production, going up by almost 11% in the current financial year. The output from Western Offshore assets comprising such as Mumbai High, Heera, Neelam and NB Prasad has increased to 316,000 barrels per day (bpd) now against 285,000 bpd in the beginning of FY15.

The Maharatna’s Western offshore assets account for 70% of crude oil produced by the explorer, while it makes up to 42% of total crude oil produced in India. The company spends nearly Rs 30,000 crore every fiscal towards capital expenditure for the Western offshore asset. ONGC offshore assets produced 6.4% more crude oil in first six months of FY15 at 7.227 million tonnes against 6.790 million tonnes in the same quarter last year.

The increase in production is primarily because of small and marginal fields in the area being put into production, Tapas Kumar Sengupta, Director (Offshore) at ONGC told FE in a recent interview.

Sengupta said that the explorer has taken up the ‘cluster development ‘concept, wherein an area is developed as one project and not just individual fields. “Subsea well completion, improved stimulation technology and additional development drilling are other factors contributing for a higher production,” Sengupta explained.

Increasing hydrocarbon output is the biggest task before ONGC, which has experienced its output dropping, as its fields are matured and decades old. The explorer is yet to put on stream any block that it has bagged in the auction under New Exploration Licensing Policy (NELP) regime.

ONGC said that its reserve replacement ratio (RRR) is 1.87, and it has been maintained at more than 1% since last nine years. However, the biggest exploration company in India saw it stand-alone crude oil output falling from 24.67 million tonnes in FY10 to 22.25 million tonnes in FY14. Similarly, gas output has increased marginally from 23.11 billion cubic metres in FY10 to 23.28 billion cubic metres in FY14.

Sengupta said that the firm has deployed a floating production, storage and offloading (FPSO) ship in its D1 field, re-named as N B Prasad fields after the erstwhile Chairman of ONGC who was the main architect of developing Bombay High (now known as Mumbai High) in the Western offshore region.

Another FPSO would be deployed for cluster 7 development in the Mumbai High area by November-end, Sengupta said.

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