ONGC to invest Rs50,000 crore in exploration and production

Oil & Natural Gas Corporation (ONGC), plans to invest over Rs50,000 crore for raising field production and exploring and setting up new fields.

The company is about to start oil production from its east coast fields by mid-2010. The total capacity of its integrated fields in the regions is around 300 million tonne. Toward this end, it has set up a business unit, eastern offshore asset,  that will create an integrated oil hub on the east coast.

Chairman and managing director R S Sharma said at the company's 16th annual general meeting, ''The oil discoveries in G-4-6, GS-29-1 and G-4-5, part of discoveries in KG-DWN-98/2 and in the Petroleum Exploration Licence Block IG, will be developed through the integrated hub.''

According to Sharma, oil production will see a hike from last year's 25.4 million tonne to 29 million tonne by March 2013.

''The oil discoveries in G-4-6, GS-29-1 and GS 4-5, and discoveries in KG-DWN-98/2 are planned to be put to production in 2012-13,'' Sharma added.

Of the planned expenditure, Rs16,000 crore will go toward raising oil production from the new fields. Also on the radar are more intensive local explorations and overseas acquisitions.