ONGC to invest over Rs 5,700 crore in Mumbai field

New Delhi: State-run Oil and Natural Gas Corpoaration would invest over Rs 5,700 crore to push up production by 6.9 million tonne of crude oil and 5 billion cubic metres of gas by 2030 from its Mumbai High (North) oil and gas field in the west coast.

The investment would involve a foreign exchange component of over Rs 4,421 crore, or $743 million, at an exchange rate of Rs 59.50 to a dollar, the company said in a statement on Friday after its board approved the plan.

The project is designed to carry forward the success of the previous two editions of redevelopment projects of the fields that were discovered four decades ago. This will extend the life of the field. The project cost includes Rs 2,586.42 crore in creation of surface facilities, Rs 1,992.11 crore in new oil and gas wells and Rs 1,127.94 crore in 'side-tracking' of existing wells.

"The facilities envisaged under the project are installation of five well platforms, one clamp-on facility for wells at an existing platform, associated pipelines and modifications at 13 platforms, drilling of 52 new wells and 24 sidetrack wells," the statement said.

The facility parts under the project are scheduled to be installed by April 2016, while drilling of wells and the overall project completion is scheduled for May 2017.

The company also announced an oil and gas discovery at Gandhar in Gujarat. "This new pool discovery in GS-6B sand in the south western part of Gandhar field opens up the sector for further field growth."

Exploratory well Gandhar #699 was drilled to a depth of 2,904 meters. During conventional testing, it produced oil at the rate of 38 cubic metres per day and gas at 20,069 standard cubic meters a day. With this, ONGC has notified five discoveries during the financial year 2014-15.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.