ONGC to invest Rs 2,477 crore to boost Vasai East field output

Oil and Natural Gas Corp (ONGC) today said it will invest Rs 2,477 crore in additional development of its Vasai East field in the Arabian Sea.
"The project, to be completed by December 2018, will result in incremental oil production of 1.83 million tons and incremental gas production of 1.971 billion cubic meters by 2030," the state-owned company said in a statement here.
The ONGC board, at its meeting today, accorded approval to the additional development of the Vasai East field at a total estimated capital cost of Rs 2476.82 crore.
"This project will improve the recovery factor of Vasai East field with infill wells towards north and south side of the field with two well platforms VSEB and VSEC and utilising existing surface facilities at process platform of BPA and BCPA-2 with minor modifications," it said.

ONGC's oil and gas fields in the Arabian Sea are of an over 40-year vintage. ONGC, now recognised as one of the best brownfield managers in the exploration and production world, has increased its recovery factor to over 40 per cent by aggressive redevelopment efforts since 2001.
The board also approved a second interim dividend of Rs 4.25 per equity share, i.E., 85 per cent on an equity share of Rs 5 each for the financial year 2013-14.

This is in addition to an interim dividend of 100 per cent (Rs 5 per equity share of Rs 5 each) on 855.54 crore shares. The total payout on account of this second interim dividend would be Rs 3,636.08 crore.

"Thus the total interim dividend adds up to 185 per cent (Rs 9.25 per share of Rs 5 each) or Rs 7,913.83 crore without dividend distribution tax," the statement said.
ONGC also said a new oil and gas discovery has been made in South & East Bassein block of Western Offshore basin.
"This discovery will add to the reserves and production potential of the field B-173A. With this, total new discoveries of ONGC during the year 2013-14 adds to 14," it added.