New Delhi: State-owned Oil and Natural Gas Corp (ONGC) plans to invest about Rs 11 lakh crore to double its production over the next 18 years, company Chairman and Managing Director Sudhir Vasudeva said on Monday.
"We have prepared a 'Perspective Plan 2030' that envisages doubling production over the next 18 years at 4-5 per cent annual production growth rate," he told reporters here.
The so-called 'blue print' targets doubling production while achieving a three-fold growth in revenue and profits. It also aims for a four-fold growth in market capitalisation of the company and a six-fold growth in production from international operations, he said.
"All this will require an investment of Rs 11,00,000 crore," he said.
ONGC in 2011-12 fiscal produced 23.71 million tonnes of oil and 23.32 billion cubic metres (bcm) of gas. It posted a net profit of Rs 25,123 crore on a turnover of Rs 76,130 crore.
At Monday’s closing price of Rs 287.30 per share, it had a market capitalisation of Rs 2.45 lakh crore.
Its overseas arm, ONGC Videsh Ltd produced 6.21 million tonnes of oil and 2.54 bcm of gas in 2011-12.
Vasudeva said while ONGC would look to unlock 450 million tonnes of oil and oil equivalent gas from yet to be found domestic resources, OVL has been tasked to source 60 million tonnes of oil and oil equivalent gas per year by 2030.
"We have decided to invest and explore opportunities in 4-5 international hubs, where OVL can atain growth of sufficient scale. Potential growth hubs include heavy oil, conventional plays, shale and deepwater," he said.
Also, ONGC plans to force alliances for development of new rsources like shale gas, coal-bed methane (CBM), deeper palys and HP/HT (high pressure and high temperature) reservoirs.
"We have signed a MoU with ConocoPhillips, a US oil major and pioneers in shale gas and deepwater exploration, in March 2012 for cooperation in the reas of shale gas exploration in India, USA and elsewhere in the world; and also deepwater in India.
"We also signed a MoU with China National petroleum Corp (CNPC), a world-leading integrated international energy company, in June 2012 to have cooperation in hydrocarbon sector including midstream and downstream" he said.
Stating that considerable potential exist in Indian basins, Vasudeva said ONGC's existing portfolio contains yet-to-develop discoveries that can add more than 300 million tonnes of oil and oil equivalent gas of production by 2030.
"A number of fields have been identified for priority accelerated development," he said, adding ONGC also plans to invest in the non-E&P sector.
"These investments will include expansion and further petrochemical integration at the MRPL refinery, additional LNG re-gasification, commercialisation of stranged gas and capacity in alternative energy generation including solar, wind and potentially nuclear," he said.
Vasudeva said ONGC in 2011-12 shelled-out Rs 44,466 crore to subsidise diesel, cooking gas (LPG) and kerosene. This impacted the company's net profit by Rs 25,535 crore. Till date, ONGC has paid Rs 166,915 crore in fuel subsidiy, denting its profit by Rs 97,064 crore.
First Published: Monday, September 24, 2012, 18:57