ONGC plans to raise crude production 6%

New Delhi, Mar 29 | Updated: Mar 30 2007, 05:30am hrs
Oil and Natural Gas Corp (ONGC) plans to produce 29.04 million tonnes of crude oil in 2007-08, 6% higher than the 27.35 tonnes output during the current year.

The company, according to the performance memorandum of understanding (MoU) signed with the Government, will raise natural gas production by 14% to 25.05 billion cubic meters.

The MoU for 2007-08 was signed today by Petroleum Secretary M S Srinivasan and ONGC Chairman and Managing Director R S Sharma, a company press release said here. ONGC is aiming to produce 32.45 mt of value added products next fiscal, 12% higher than 29.03 mt of 2006-07.

Reserve accretion target has been fixed at 55 mt of oil equivalent, which is 5% higher than 52.5 mt oil equivalent for the current year. The MoU also prescribes third party audit of 350 exploratory wells, formation of three Joint Ventures and alliances with international majors, economic value addition of 19.13% and undertaking two clean development mechanism projects. The press release, however, did not elaborate. Since the introduction of the MoU concept in 1997-98, ONGC has consistently performed well in its score card and has been rated excellent thrice during the last five years, it said. Speaking on the occasion, Sharma said the higher MoU targets signified higher business growth.