Our Infrastructure Bureau

New Delhi, April 6: THE Oil and Natural Gas Corporation (ONGC)’s net profit is set to touch Rs 4,900 crore during 2000-01. While speaking to reporters at a seminar on Friday, ONGC chairman and managing director BC Bora said this would make the Corporation, the country’s highest profit earning organisation.

He said, though final audited figures would come out in a month, increase in international crude oil prices and rising domestic product prices would help the public sector undertaking to achieve about 25 per cent increase in net profit of Rs 3629 crore posted in the previous year.

Besides, higher output of crude oil by five lakh tonne over the target of around of 25.6 million tonne in 2000-01, will help ONGC achieve higher profit, he said, adding against the gas sale target of 18.3 billion cubic metre, the company had sold 19.3 billion cubic metre last year.

Addressing the seminar on ‘Deepwater Production Technologies’, organised by Oil and Natural Gas Corporation (ONGC), Union minister for petroleum and natural gas Ram Naik said the government will award 23 oil and gas blocks for exploration and development under second round of bidding for the new exploration and licensing policy (Nelp) by June 30.

He said that bids will be evaluated in the next three months and blocks be awarded before
June 30. Among the 13 companies that have bid for the blocks are Cairns Energy of UK, Petrom of Romani, Niko Resources of Canada, JTI of the Unites States, Hardy Oil and Heramec of UK, Reliance, ONGC, Oil India Ltd (OIL), Gas Authority of India Ltd (GAIL), Indian Oil Corporation and Gujarat State Petroleum Corporation Ltd (GSPC).

On ONGC’s future strategies, Mr Bora said the Corporation would be investing over Rs 10,000 crore for undertaking enhanced oil recovery programme in 15 oil fields in the country during the current fiscal.
The company has already begun implementation of Rs 5000 crore first phase of Mumbai High Redevelopment Programme, which would increase the rate of recovery from the present 24-26 per cent to about 40 per cent in five years.

While redevelopment of Mumbai High North began in January, Rs 2,500-crore revival plan for Mumbai High South would be taken up later this month. Another Rs 4,000 crore would be invested in improved oil recovery for major oil fields in the country.