Wednesday, September 28, 2022

ONGC planning Rs 4,254-cr investment in Gujarat facility

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New Delhi: Oil and Natural Gas Corporation (ONGC) is planning an investment of Rs 4,254 crore to drill 656 wells in Gujarat, the company said in an application to the environment ministry. The well will be drilled in 52 Petroleum Mining Lease (PML) in ONGC’s Ahmedabad facility. The investment in Gujarat facility is aimed at pushing up output from ONGC oil fields in the state as the Centre seeks to cut India's oil import bill. “656 wells are planned to be drilled in various fields of Ahmedabad Asset from 2019-20 to 2025-26. The incremental Oil gain from the drilling of these development wells is 3.81 Million Tonne and incremental gas gain is 329.75 Million Standard Cubic Meter (MMSCM),” the letter said.

ONGC’s Gujarat Ahmedabad facility has 22 oil wells

ONGC’s Ahmedabad facility has 22 oil fields, with proved in-place oil of over 559 MT, of which it has already produced around 59 MT of crude oil till April 2019, a report published on The Economic Times website said. The facility is one of the major onshore projects for ONGC and is spread over four revenue districts, covering Kheda, Ahmedabad, Gandhinagar and Mehsana.

The backdrop

ONGC Chairman and Managing Director Shashi Shanker had announced last month that the crude oil giant is investing around Rs 83,000 crore in 25 major projects to boost oil and gas production, which has stagnated over last years. “15 of these projects currently under execution will directly contribute to oil and gas production,” Shanker said while addressing ONGC employees on the 73rd Independence Day on August 15, 2019. ONGC’s crude oil output from the onshore fields in Gujarat in the January-April period of 2019-20 increased 2.19 percent to 1,537 Thousand Tonne.

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