ONGC will reverse the trend of decline in oil and gas production, will invest billions of dollars in new discoveries
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Bengaluru: The country’s largest oil and gas producer Oil and Natural Gas Corporation (ONGC) will reverse the years-long trend of decline in production this year and gradually increase production thereafter. Giving this information, a top company official said that ONGC is investing billions of dollars to start production from new discoveries. ONGC had produced over 21.7 million tonnes of crude oil in the financial year 2021-22. Crude oil is refined and converted into petroleum products such as petrol and diesel. During the last financial year, the natural gas production of the company stood at 21.68 billion cubic meters. Natural gas is used for power generation, fertilizer manufacturing and as CNG for vehicles.
ONGC Chairman Arun Kumar Singh told PTI-language, “We are definitely expecting an increase in oil and gas production in 2023-24 and even in the current year.” In 2022-23), the company’s crude oil production is expected to increase to 22.8 million tonnes. Whereas the production of gas is estimated to be 22.09 billion cubic meters. In the next financial year, crude oil production is estimated to be 24.6 million tonnes and gas production is estimated to be 25.68 billion cubic meters. ONGC has a share of 71 per cent in the domestic production. Production from the company’s fields has been gradually declining for more than a decade. This is because the fields of the company are quite old.
The government had considered giving ONGC’s large oil and gas fields to private and foreign companies in an effort to boost production, but faced internal opposition. Singh said the company is ready to partner in technically difficult areas. ONGC is investing Rs 59,000 crore in 20 major projects. These include bringing into production the discovered oil and gas reserves in the deep sea KG Block KG-DWN-98/2 (KG-D5) and Phase IV redevelopment of the Mumbai High field. The investment in KG-D5 will enable the company to generate additional production, while the investment in redevelopment of Mumbai High will help arrest the decline in production from the aging areas.
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