According to a company official, ONGC, the largest oil and gas producer in India. Will spend more than USD 2 billion drilling 103 wells, a record, on its major gas-bearing asset in the Arabian Sea as it pivots a turnaround plan that would increase output by 100 million tonnes.
Three key offshore assets owned by Oil and Natural Gas Company (ONGC) account for the majority of the company’s 2021–2022 production of 21.7 million tonnes of oil and 21.68 billion cubic metres of gas: Mumbai High, Heera and Neelam, and Bassein and Satellite.
“We have released a record 103 locations for drilling of wells on the Bassein and Satellite (B&S) assets over the next 2-3 years,” ONGC Director (Offshore) Pankaj Kumar said.
The wells will assist increase output by tapping smaller, previously untapped reserves.
“We estimate that this development drilling will enhance production by over 100 million tonnes of oil and oil equivalent gas over the life of the field,” he said. “The investment involved in drilling and facilities will be over USD 2 billion.” ONGC produces two-third of all oil and gas produced in the country and any incremental production would help the country cut its dependence on imports for meeting energy needs.
Around 85% of the crude oil needed to make gasoline and diesel in refineries imported into India. As well as over 50% of the natural gas used to generate power, make fertiliser, create CNG for car fuel. And supply cooking gas to homes.
To assist reduce the USD 115 billion import bill. The government has been pressuring state-owned businesses to step up efforts to increase local output.
Because its fields are old and ageing, ONGC has recorded a steady reduction in output for more than ten years. But, the company has now pulled itself together. It is working on a holistic asset base strategy rather than a field-centric approach.
B&S Asset, according to Kumar, possesses a number of fields, including the important Bassein gas field, D1, and Tapti-Daman. Currently, these generate between 55,000 and 66,000 barrels of oil per day (2.8 million tonnes). And 28 million standard cubic metres of gas per day.
According to him, “We have done a reservoir profile for the entire asset to design the drilling campaign.” Drilling new wells will increase production, which will counteract the natural drop in older wells and increase output overall.
Gas production expected to increase by 6-7 mmscmd at the Daman field alone. While oil production at the Tapti field might nearly double to 30,000 bpd.
For the revitalization of the other two assets in the western offshore, ONGC will use a similar strategy.
The sixth phase of the rehabilitation of Mumbai High, India’s most productive oil and gas field. It is in the conceptualization stage, while the fourth phase is virtually finish.
A reversal of the output reduction from the current fiscal year is predict for ONGC. Production of gas and crude oil expected to increase in the current fiscal year (2022-23) to 22.099 bcm and 22.823 million tonnes, respectively. Oil output will increase to 24.636 million tonnes in the following fiscal year and to 25.689 million tonnes in 2024–25.
Natural gas production is slate to rise to 25.685 bcm in 2023-24 and 27.529 bcm in the following year.