ONGC ropes in consultant to pen output plan

Oil and Natural Gas Corporation (ONGC) has hired international energy consultant group Gaffney, Cline and Associates (GCA) to help the oil major increase its production by 20 per cent in three years. The target of ONGC is to raise crude production from the current 24 million metric tonne (MMT) to 29 MMT by 2008-09.

ONGC is planning to increase output from matured brownfields and greenfields. Mumbai High has been set as the benchmark for brownfield output.

Depending on the production and age, the fields would be classified. Worldwide, the production from brownfields is declining at 6-8 per cent every year, an industry source said.

For achieving the target, ONGC would introduce a framework, referred to as 'Framework 6-7-8', which is a four-pronged strategy to augment production from both matured and new fields. According to the framework, the production from Mumbai High is expected to increase from a target of 10.7 MMT (2005-06) to more than 13.4 MMT by 2008-09.

GCA will offer consultation to ONGC on the following: increasing output from matured fields or developing brownfields, hiking production from new and marginal fields or greenfield development, commercially improved oil recovery and enhanced oil recovery and introduction of new technologies to attain the above objectives.

The Institute of Reservoir Studies (IRS) is the nodal agency working closely with GCA to formulate the parameters of the strategy. With the plans under the framework being finalised, feasibility reports are expected shortly from IRS, which would be considered by the management before implementing them.

While the management is pushing for a more optimistic scenario at the operational level, resource constraints such as shortage of drilling rigs are posing a challenge. Drilling of rigs is costly exercise, amounting to $1,00,000 a day.

For optimal utilisation of the existing infrastructure of ONGC, GCA has suggested deployment of Shell Global Solutions at some works. ONGC is envisaging oil production of 2 MMT by 2008-09 from its 73 marginal fields. The development of marginal fields has become viable now following buoyant crude prices.

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ONGC has hired Gaffney, Cline and Associates to help it increase production by 20% in 3 years

Output increase is planned from matured brownfields and greenfields