ONGC revises estimates of crude oil and gas reserves

Oil and Natural Gas Corporation (ONGC) today announced updated management estimates of oil and gas reserves and the independent reserve audit (as of 1 April 2011). ONGC said consolidated estimates of its aggregate proven, probable and possible (1P, 2P and 3P) crude oil and natural gas reserves, as of 1 April 2011, were 961.26 million metric tonnes oil equivalent (Mmtoe), 1,426 26 MMtoe and 1,688.29 MMtoe, respectively.

These include 758.36 MMtoe, 1,024.74 MMtoe and 1.253.28 MMtoe of 1P, 2P and 3P reserves respectively, relating to domestic fields as also 202.91 MMtoe, 401.52 MMtoe and 435.00 MMtoe of 1P, 2P and 3P reserves, respectively, relating to overseas fields held by ONGC Videsh Ltd.

Independent reserve consultants, Gaffney Cline & Associates, DedGolyer & MacNaughton and Sproule International Ltd have assessed ONGC's 1p, 2P and 3P oil and natural gas reserves at 729.03 MMtoe, 1,225.14 MMtoe and 1,765.32 MMtoe, respectively.

Consolidated estimates for the company's audited 1P, 2P and 3P crude oil and natural gas reserves as of 1 April 2011 were 827.25MMtoe, 1,211.54 MMtoe and 1,408.38 MMtoe, respectively.

The consultants assessed 63 of ONGC's domestic fields, which account for 82.50 per cent, 79.20 per cent and 78.00 per cent of its total domestic 1P, 2P and 3P crude oil and natural gas reserves, based on the company's own estimates.

ONGC saw its oil and gas output stagnate as the company's major fields have been operating for the past several decades and it hasn't been able to bring any new big field into production.

ONGC, meanwhile, planned to invest around Rs175,000 crore ($39 billion) in the five years starting April 2012 to lift output and meet the country's surging energy demand.

With crude prices hovering above $100 a barrel, oil and gas companies across the world are increasing their spending on exploration and production. Energy companies are expected to spend a total of nearly $530 billon globally on exploration and production in 2011 alone.