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ONGC to raise Mumbai High production
Tuesday, 01 February 2005, 20:30 IST
NEW DELHI: India's exploration major Oil and Natural Gas Corporation (ONGC), which registered a 38 percent rise in net profit, hopes to raise oil production from Mumbai High to 15 million tonnes.
Accounting for around 45 percent of India's domestic oil production, Mumbai High's output had been on the decline till 2001-02 when ONGC decided to invest 
82 billion ($1.87 billion) in a redevelopment plan.
So far, around 50 billion has been invested and production stabilised at 220,000 barrels a day.
"We have been restricting pipeline flow from Mumbai High to Uran (in Gujarat) to mitigate risk for safety and environment concerns," ONGC Chairman and Managing Director Subir Raha said here Monday.
"Once the new pipeline under construction is commissioned by early May, we hope to achieve 50,000 barrels per day increase in oil production from Mumbai High.
"From 12.6 million tonnes production now from Mumbai High, we hope to go for enhanced production after the monsoon season in 2005-06, raising the output to 15 million tonnes," Raha told a press conference to announce ONGC's third quarter unaudited results.
The country's biggest listed firm by market value, ONGC has so far this year registered a three percent growth in oil production with a total of 19.95 million tonnes as against 19.41 million tonnes in the same period last year.
In the case of gas, however, ONGC witnessed a continuing dip due to lower output from its largest Bassein field source.
"While we are investing to enhance recovery, it is only through new discoveries that we can enhance gas production," said Raha.
ONGC this year made two discoveries, the reserves of which are still being assessed.
Discounting fears of Mumbai High production falling in the near future, Raha said with the infusion of funds for redevelopment and use of new technologies, India's largest oil and gas field that has been in production since 1976 would last another 25-20 years.
During the nine-month period, ONGC recorded net profits of 91.85 billion, a rise of 38 percent over 66.78 billion in the corresponding period in the last fiscal.
"The increase in revenue and profit in the nine-month period includes the impact of the increase in sale quantity of crude oil by around 0.41 million metric tonnes over the corresponding period, an increase of 2.3 percent," said Raha.
ONGC sold 18.07 million metric tonnes (MMT) of crude oil, 15.59 billion cubic metres of natural gas, and 2,571 tonnes of value added products like cooking gas, kerosene and naphtha in the nine-month period from April to December.
The higher net profit in the three quarters till December was achieved by the company despite the subsidy and lower than import parity price of crude supplied to oil marketing companies, which accounted for over 10 percent of sales revenues.
ONGC has paid an interim dividend of 200 percent for the current fiscal in January to the government, aggregating 28.52 billion.
"We hope to meet the shareholders expectations based on the current trend of financial performance," said Raha.
Source: IANS
82 billion ($1.87 billion) in a redevelopment plan.
So far, around 50 billion has been invested and production stabilised at 220,000 barrels a day.
"We have been restricting pipeline flow from Mumbai High to Uran (in Gujarat) to mitigate risk for safety and environment concerns," ONGC Chairman and Managing Director Subir Raha said here Monday.
"Once the new pipeline under construction is commissioned by early May, we hope to achieve 50,000 barrels per day increase in oil production from Mumbai High.
"From 12.6 million tonnes production now from Mumbai High, we hope to go for enhanced production after the monsoon season in 2005-06, raising the output to 15 million tonnes," Raha told a press conference to announce ONGC's third quarter unaudited results.
The country's biggest listed firm by market value, ONGC has so far this year registered a three percent growth in oil production with a total of 19.95 million tonnes as against 19.41 million tonnes in the same period last year.
In the case of gas, however, ONGC witnessed a continuing dip due to lower output from its largest Bassein field source.
"While we are investing to enhance recovery, it is only through new discoveries that we can enhance gas production," said Raha.
ONGC this year made two discoveries, the reserves of which are still being assessed.
Discounting fears of Mumbai High production falling in the near future, Raha said with the infusion of funds for redevelopment and use of new technologies, India's largest oil and gas field that has been in production since 1976 would last another 25-20 years.
During the nine-month period, ONGC recorded net profits of 91.85 billion, a rise of 38 percent over 66.78 billion in the corresponding period in the last fiscal.
"The increase in revenue and profit in the nine-month period includes the impact of the increase in sale quantity of crude oil by around 0.41 million metric tonnes over the corresponding period, an increase of 2.3 percent," said Raha.
ONGC sold 18.07 million metric tonnes (MMT) of crude oil, 15.59 billion cubic metres of natural gas, and 2,571 tonnes of value added products like cooking gas, kerosene and naphtha in the nine-month period from April to December.
The higher net profit in the three quarters till December was achieved by the company despite the subsidy and lower than import parity price of crude supplied to oil marketing companies, which accounted for over 10 percent of sales revenues.
ONGC has paid an interim dividend of 200 percent for the current fiscal in January to the government, aggregating 28.52 billion.
"We hope to meet the shareholders expectations based on the current trend of financial performance," said Raha.
Source: IANS