Production Latest Information updated on 01 September 2006

ONGC's Ultimate Reserve Accretion O+OEG in MMT

During the year 2004-5 ONGC produced 26.83 MMT oil compared to 26.05 MMT in 2003-04. Oil India produced 3.2 MMT during 2004-05 compared to 3 MMT in 2003-04 at which level production had been stagnating for a very long time. During 2005-06 the production may go up further to 3.5 MMT. There was decline in oil production by the private sector/joint venture companies. They produced a total of 4.26 MMT during 2004-05 compared to 4.31 MMT during 2003-04.

Oil and oil equivalent gas produced by ONGC Videsh during 2004-05 was 5.06 million tones (up 31 %).

The consolidated oil and oil equivalent gas production of ONGC Group (ONGC and ONGC Videsh) during 2004-05 was 58.29 million tones (up 1.7 %).

• ONGC Videsh (45 %), British Petroleum (35 %) and PetroVietnam (PV - 20 %) consortium has produced 2.591bcm gas against target of 2.377 bcm during 2004 from their 2 tcf Lan Tay field in Vietnam offshore. The present production from the field is @ 7.5 million scmd. The gas is being transported 370 km through a 26” pipeline to an onshore terminal in Vietnam for power generation.

• The assets of ONGC Videsh in Sudan in blocks 5 A (24.125 %) and 5 B (23.5 %) are spread over 10 oil and gas fields with a reserves in excess of 1 billion barrels. The current production is @ 300,000 bopd. Oil is transported to Port Sudan by a 1504 km pipeline. Oil production from Thar Juth field in Block 5 A started on July 4, 06 and production from Mala field will be started later this year. Both together will add to 50,000 bopd to the 280,000 production from fields under Greater Nile Oil Project (GNOP) covering blocks 1, 2 and u.
• ONGC Videsh acquired 20% interest in Sakhalin- 1 offshore field in Russia from Rosneft in February 2001 . The other partners are Exxon Mobil (30% - operator), Sodeco (30%) and Rosneft (20%). The field has been declared commercial and development activities initiated. Oil production is expected to commence from end 2005. A concrete offshore drilling platform (Orlan) is under construction in a Russian shipyard. Drilling from an onshore location has commenced and work on construction of roads and bridges and up gradation of airport etc. has been initiated. The initial cost of the project was estimated to be US $ 1.7 billion. There is time and cost overrun and the project cost is now estimated to be US $ 2.77 billion. Sakhalin 1 started production @ 23,000 barrels per day oil and 58 mmscf gas par day from Oct 1, 05. The oil production will rise to 50,000 bopd by April 2006 and hit a peak level of 250,000 bopd by end of 2006. Gas production will rise to 200 mmscf per day by end of 2006.

• The Sakhalin consortium will sign a contract with CNPC for supply of 1 bcm gas per year, which will eventually be increased to 10 bcm per year. The agreement will include laying of pipeline linking Sakhalin Island with NE China.
• ONGC Videsh and China National Petroleum Company JV (50:50) has completed transaction of acquisition of entire share of Petro Canada in four PSCs namely Ash Sham (33.33 %), Dier EZ Zor (37.5 %), Dier EZ Annexe (37.5 %) and Gas Utilisation Agreement (36 %) covering 36 producing fields in Syria. These fields have been producing for over 15 years. Shell holds remaining interest. Al-Furat Petroleum Company (AFPC) is the operator, whose interests are held by Shell (31.25 %), Syria Petroleum Company (50 %) and Petro Canada (18.75 %). The purchase retroactive to July 1, 2005 . These fields produced @ 187,350 bopd during H1' 2005. The remaining reserves in the asset are 300 million barrels of oil. The ONGC Videsh – CNPC joint venture will be named Himalya Energy ( Syria ) B.V. With this acquisition the ONGC Group adds fourth overseas producing asset in its portfolio after Vietnam , Sudan and Russia ( Sakhalin ).

• The Joint Operating Board of Panna-Mukta and Tapti (ONGC 4 0 %, British Gas 30 % and Reliance 30 %) has awarded contract for three platforms – two for Panna to produce from un-drained area in north west and third to maintain production level of 7.2 million cubic meters of gas and 3 thousand barrels per day of condensate from South Tapti field till 2007 by which time the consortium expects to complete new revised development plan to take gas production 12 million cubic meters per day till year 2013.

   

• Government has approved $2.49 billion development plan of Dhirubhai 1 and 3 gas discoveries on D-6 block (KG-DWN-98-3) in KG offshore (Reliance 90 % and NIKO 10 %). Gas production will start end June 2008. The unprocessed gas will be taken from the sub-sea wells by a 35 km, 24” pipeline to a processing facility near Kakinada . The expected gas production is 40 MMSCMD.

• Reliance has submitted a 6 well development plan for gas find in Mahanadi NEC-25 block. Geoffrey-Cline and Associates have estimated gas reserves as 2.3 tcf.

• The 2 P reserves of the 12 oil and gas fields discovered by Cairn in Rajasthan are 1.7 billion barrels. The Government has opted to take its 30% back in right in the development area and has nominated ONGC as its equity nominee. MRPL, a subsidiary of ONGC has been nominated to receive the oil produced. The final development plan of Mangala, Aishwarya, Raageswari and Saraswati has been approved by the Government. Production will commence towards end of 2008 and expected to be over 100,000 bopd.

• ONGC's first offshore production in Krishna – Godavari basin from G-1 and GS-15 fields, which was expected in June 2006 has been delayed until end of March 2007. G-1 (deep water) is expected to produce 9400 barrels of oil per day and GS-15 (shallow water) 2.7 million cubic merers of gas per day.

• ONGC marginal oil field D-1 in Mumbai offshore has been put on production in Feb 2006. Initially production is expected to be 1200 cubic meters per day (cmd), which will peak to 2118 cmd by 2009.The crude will be transported from SPM to shore (200 km) by storage cum transport tanker.

   

• OIL has started pilot experiment in Bhagewala heavy oil field in Western Rajasthan . The first well has been drilled to 600 m to inject 500 tonnes of high pressure steam for 100 days, close the well for a month and reopen for production. Another well will be drilled to 1600 m to produce oil with a similar process from a deeper zone. If the experimental is successful full development plan will be drawn. It may be recalled OIL had awarded a consultancy contract to PDVSA (PETROLEOS de Venezuela) in November 2002 initially to determine whether the heavy oil can be commercially exploited and later to provide required technology and supervision. For the pilot project PDVSA has recommended drilling of two wells, one for the upper carbonate sequence (Bilara) and another for the lower sandstone formation ( Jodhpur ). The upper zone is estimated to have 34 million tonnes and the lower zone 14 million tones of 10 API oil in place. The first well will be put on production in Feb 2006.

• The Joint Venture Consortium – ONGC 40 %, Cairn Energy 22.5 % (operator), Petrocon (Videocon) 25 % and Ravva Oil & Gas (Marubeni) 12.5 %, has produced in excess of 100 million barrels of oil with an average of 50,000 BOPD, 2.1 MMSCMD associated and non-associated gas from 12 oil producers, 3 gas wells and 6 water injection wells. 100 % voidage compensation is being maintained by injecting 68,000 to 70,000 barrels of water. New geological modeling indicates ultimate recovery of 255 million barrels of oil.

• Development plan for PY-1 gas field in Cauvery offshore, in which Hindustan Oil Exploration co (HOEC) has 100 % interest, comprises drilling of 3 horizontal wells, an offshore platform with minimum gas processing facility, 55 km sub sea pipeline to shore terminal and onshore gas processing terminal. Initial production is planned @ 45 million scfd. The estimated cost will be $ 140 million.

• OILEX has farmed in 45 % of NIKO's operating interest in Cambay field and 40 % each in Bhandut and Sabarmati fields in Gujarat onland. GSPCL is the other partner.

• NIKO (33%)-GSPC (67%) have put four Hazira offshore wells on production (3 oil and 1 gas) which will increase oil production by 1100 bopd. Now there are 8 gas wells and 5 oil wells on production. The gas production from the field will be around 40-45 MMcfd.