ONGC plans to invest Rs 5,000 crore on east coast fields

ONGC plans to invest Rs 5,000 crore on east coast fieldsOil and Natural Gas Corporation (ONGC) has decided to invest over Rs 5,000 crore in the development of new oil and gas fields on eastern coast of the country.

ONGC, India’s largest energy explorer, has said that the company will start production from east coast fields in mid-2010.

Mr. R S Sharma, chairman ONGC, after 16th annual general meeting of the company, said that the company had set up a business unit, Eastern Offshore Asset, to assess the discoveries of oil and gas fields on east coast of the country.

The integrated hub would assist in the development of the oil discoveries in G-4-6, GS-29-1 and G-4-5. It would also help the company in partial discoveries in KG-DWN-98/2 and in the Petroleum Exploration Licence Block IG.

Mr. Sharma added that the production at oil discoveries in G-4-6, GS-29-1 and GS 4-5, and discoveries in KG-DWN-98/2 is likely to commence in 2012-13.

According to Mr. Sharma, as the production at the maturing fields is decreasing, the company is looking for new fields to maintain the production levels.

Also, ONGC has been implementing new advanced methods of oil recovery. The company has invested over Rs 16,000 crore for deploying these improved oil recovery schemes. The company has also planned to spend over Rs 50,000 crore for the development of new fields as well as to enhance the production of the current existing fields.