State-owned Oil and Natural Gas Corporation (ONGC) is spending Rs 26,000 crore to develop 10 oil and gas clusters in western and eastern offshore, to increase crude production by up to 4 million tonne per annum by 2013-14.
"We are spending Rs 26,000 crore in developing 10 clusters involving about 34 marginal fields in both western and eastern offshore. Most of them will be completed by 2013-14. By 2013-14, it should add 3.5 to 4 million tonne to our oil production," ONGC Chairman and Managing Director Sudhir Vasudeva said during a recent visit to Hyderabad.
Marginal field is any oil field or well that is nearing end of its commercial life and the production rates of these fields will be low and economically not viable under regular conditions.
"In 12th Plan, we will be producing 40 million tonne more than want we are hoping to achieve in 11th Plan. The target [for the 12th Plan] is 277 million tonnes of oil and oil equivalent gas. Of that, 144 Bcm is gas and balance 133 million tonne is oil. In 11th Plan, we will be achieving 237 million tonne," Vasudeva said.
The combined production of oil and oil equivalent gas of ONGC, including ONGC Videsh and ONGC's share in PSCJVs, in FY11 has been 62.05 million tonne.
While not ruling out the possibility of ONGC venturing into setting up an LNG terminal on its own, Vasudeva said at present they have no such idea.
ONGC is a 12.5% stakeholder in Pertonet LNG -- a joint venture with the government of India to import LNG and set up LNG terminals in the country.