Reversing the downward trend of the past few years, ONGC said its crude oil production would increase by 11% and natural gas production would increase by 25% after new discoveries in western and eastern offshore are starting to produce.
In a presentation to investors after FY22 results, Oil and Natural Gas Corporation (ONGC) said crude oil production would drop to 19.545 million tonnes in the fiscal year ended March 31 (2021-22 ) to 19.88 million tons this year and 21.588 million tons in the next year.
Production will climb to 21.701 million tons in 2024-25 (FY25).
Likewise, gas production will increase from 20.907 billion cubic meters in 2021-22 to 21.097 billion m3 for the current financial year and 24.387 billion m3 for the following one. In FY26, production will reach 26.124 bcm.
The increase in production will be facilitated by gas transmission projects, which are found on both the east coast and the west coast.
ONGC is betting on the KG-DWN-98/2 discoveries in the Bay of Bengal to do most of the heavy lifting, while fringe Cluster-8 fields in the western offshore will supplement production.
The ONGC said it is also implementing the fourth phase of the redevelopment of the Mumbai High oil and gas fields, which will increase the recovery factor of mature five-decade-old fields.
India’s reliance on imports to meet its crude oil needs has risen to 85% in recent years as production from domestic fields continues to decline.
ONGC, the nation’s largest crude oil and natural gas producer, has seen a steady decline in production from its mature and aging fields over the years.
But the company is now stepping up its exploration campaign to find more reserves.
ONGC said it would spend Rs 31,000 crore from 2022 to 2025 on exploration campaigns across the country.
It has a view “to add approximately 1,00,000 square kilometers of new exploration area per year through 2024-25,” the company said, adding, “increasing acreage held likely to further establish the resource potential of undiscovered fields and the realization of YTF Reserves (yet to be found).This is part of the company’s Vision 2040 which calls for increasing the capacity and production of its oil exploration and production portfolio and gas, oil refining and downstream petrochemicals and new energy activities.
The company, which began with an equity injection of Rs 343 crore by the government more than six decades ago, has generated wealth of over Rs 9 lakh crore since then, and is now venturing down a new path. to further increase the value.
The new energy strategy 2040 aims to increase the national production from 50 million tonnes of crude oil and oil equivalent gas to 70 MMtoe (million metric tonnes of oil equivalent) by 2040, according to the presentation.
Overseas production should increase from 15 MMtoe to 40 MMtoe.
With 35 million tons per year of oil refining capacity devolved to its two subsidiaries – HPCL and MRPL, ONGC aims to increase this capacity to around 100 million tons by 2040. In addition, petrochemical expansion will be priority.
ONGC is also looking to expand its renewable energy portfolio to 10 gigawatts from less than 200 MW currently.
Additionally, the company has set up a billion-dollar venture fund corpus for incubating new technologies that will help increase production and find new resources, according to the presentation.