ONGC board approves Rs6,700 crore investment plans

Mumbai: State-run Oil and Natural Gas Corp. (ONGC) will invest over Rs6,700 crore to raise oil and gas output, and set up its first large power plant.

ONGC board cleared the proposals at its meeting on 11 April, the company said in a statement.

ONGC will spend Rs1,817 crore on infrastructure that would help raise gas output from fields in the country''s northeast to 4.5 million cubic metres a day from the current 3 mmscmd.

The gas will be used as feedstock for a planned 740-megawatt power plant in Tripura, to be set up jointly with Tripura Power Co. Ltd. ONGC will invest Rs576 crore for a 50-per cent stake in the project.

The power project, with a debt-equity ratio of 70:30 and involving overall investment of Rs3,844 crore, will be commissioned by 2010.

ONGC will also be investing Rs355 crore in the construction of seven pipelines in the Mumbai High (North) oil and gas fields, where a fire destroyed a large platform in July 2005 and cut production.

"This is expected to be completed with the upcoming MHN complex in Mumbai High (North) by April 2010," it said.

For the development of its marginal fields in the western offshore, popularly known as C-series, the ONGC board has approved an additional investment of Rs795 crore, taking the final spending figure to Rs3,990 crore.

The project is under implementation for exploitation of 15.14-billion cubic metres of gas and 6.13-cubic metres of condensate from the marginal fields in Arabian Sea. The project is expected to be completed by 2009.