The board of Oil and Natural Gas Corporation Ltd (ONGC) on Wednesday approved investment proposals totaling Rs 5,713 crore for the second phase of redevelopment of Mumbai High in western offshore.
The redevelopment project, as per ONGC, will enhance production from the south field of Mumbai High and will improve oil recovery to over 346 million metric tonne (mmt) with an incremental oil of 22 million metric tonne.
At current crude prices, the additional produce is valued at Rs 53,000 crore ($13.25 billion). This will improve oil recovery to about 35% by 2030. Cumulatively, Mumbai High has already produced 382 mmt oil until now.
The western offshore contributes around 16 mmt every year. This is over 60% of the total crude production of the state-run firm.
A company press release said the project envisages drilling of 86 infill wells. Five new well-head platforms and six clamp-on structures are planned. A new process platform bridge, connected to existing process complex ICP in Mumbai High south, is proposed to handle the additional production.
The phase-II follows the first redevelopment programme launched in October 2001. The implementation of Phase-I has reversed the declining production trend. It has given a new lease of life to the aging field. After the success of Phase-I redevelopment exercise, ONGC has gone for Phase-II redevelopment in Mumbai High south field.
A variety of new technologies have been inducted during phase-I redevelopment. It is planned to use the lessons of phase-I redevelopment and continue induction of cutting-edge technology to rejuvenate the field of western offshore.
Analysts feel that the project has been conceived at a right time, when the oil price is reaching its new peaks every day.