Reversing the declining trend of the past few years, ONGC said its crude oil production will rise 11 per cent and natural gas output will jump 25 per cent after newer discoveries in the western and eastern offshore start producing.
In an investor presentation post FY22 earnings, Oil and Natural Gas Corporation (ONGC) said crude oil production will rise from 19.545 million tonnes in the financial year ended March 31 (2021-22) to 19.88 million tonnes this year and 21.588 million tonnes in the next year.
The output will climb to 21.701 million tonnes in 2024-25 (FY25). Similarly, gas production will rise from 20.907 billion cubic meters in 2021-22 to 21.097 bcm in current fiscal and 24.387 bcm in the next. In FY26, the output will reach 26.124 bcm. Similarly, gas production will rise from 20.907 billion cubic meters in 2021-22 to 21.097 bcm in current fiscal and 24.387 bcm in the next.
The output increase will be aided by projects to bring gas, found on both the east and the west coast. ONGC is betting on discoveries in KG-DWN-98/2 in the Bay of Bengal to do most of the heavy lifting, while the Cluster-8 marginal fields in the western offshore will supplement the production.
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 from the five-decade-old mature fields. India's dependence on imports to meet its crude oil needs has, in recent years, risen to 85 per cent as output from domestic fields continued to decline.
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ONGC, the biggest crude oil and natural gas producer in the country, has over the years seen a steady decline in production from its mature and aging fields. But the firm is now stepping up on exploration campaign to find more reserves.
ONGC said it will spend Rs 31,000 crore from 2022 to 2025 on the exploration campaigns throughout the country. It is in a view to "add around 1,00,000 square kilometers of new exploration area annually up to 2024-25," the firm said, adding, "increase of acreage holding likely to further establish the resource potential of undiscovered plays and realisation of YTF (yet to find) reserves."
This is a part of the company's Vision 2040 that calls for raising capacities and production across its portfolio of oil and gas exploration and production, downstream oil refining and petrochemicals and new energy businesses. The company, which started with an equity infusion of Rs 343 crore by the government more than six decades back, has generated a wealth of over Rs 9 lakh crore since then, and is now venturing on a new road to further enhance value.
The new Energy Strategy 2040 aims to raise domestic production from 50 million tonnes of crude oil and oil equivalent gas to 70 MMtoe (Million Metric tonne of oil equivalent) by 2040, the presentation said. Overseas output is seen rising from 15 MMtoe to 40 MMtoe.
With 35 million tonnes per annum of oil refining capacity vested in its two subsidiaries — HPCL and MRPL, ONGC is targeting to raise this capacity to around 100 million tonnes by 2040. Also, expansion in petrochemicals will be prioritised. ONGC is also looking to scale up its renewable energy portfolio to 10 Gigawatts from less than 200 MW currently.Also, the firm has set up a USD 1 billion venture fund corpus for the incubation of new technologies that will aid in raising the output and finding newer resources, the presentation said.