State-owned Oil and Natural Gas Corporation (ONGC) said on Tuesday that crude oil production from its KG-DWN-98/2 block in the Krishna-Godavari basin is expected to reach 10,000 bpd by November 2023.
In addition, production from the block is set to double to 20,000 bpd by the end of the fiscal year. The oil and gas exploration and production (E&P) major said it also plans to produce 45,000 bpd by FY25.
The company has also increased capex for E&P activities in FY2024 to around Rs 1,000 crore, which is about a third of the E&P major’s total capex for the fiscal year. In addition, capex of about Rs 1,000 crore per annum will be generated for exploration over the next five years.
The company will continue to implement a capex plan of over Rs 30,000 crore, with an emphasis on focused exploration and enhanced capex investments to revitalize mature western offshore fields.
Currently, the company has 22 large-scale projects with a total value of more than Rs 100 crore under implementation, with a total capital expenditure of about Rs 600 billion and estimated life cycle benefits of about 94 million tonnes of oil equivalent (MTOE). The company has more than 40 upcoming projects with an estimated capex of Rs 8,300 crore.
Earlier in the day, at the Maharatna Annual General Meeting (AGM), ONGC Chairman AK Singh said the company had notified eight new hydrocarbon discoveries (three new exploration areas and five new pool discoveries) in areas where it operates, These include one discovery in the OALP (Open Area Licensing Policy) block, 1 discovery in the NELP block, and 6 discoveries in the nomination block.
“Looking ahead to the next few years, domestic production is expected to increase with incremental production from our eastern offshore KG deepwater field, the project’s fully monetized ‘U’ field and higher oil production from the ‘M’ field. ‘ The field should start from the current financial year. We are pleased to report that we have deployed two drillships and started drilling deepwater wells in the Mahanadi Basin, offshore East.
Singh said the CPSU will invest Rs 2 billion by 2038 to achieve net zero carbon emissions by 2038.
The company will initially invest Rs 100 crore by 2030 to enhance its green energy products and services footprint, which includes initiatives such as 10 gigawatts (GW) of renewable energy capacity and green ammonia.