ONGC to invest Rs 2500 cr for Assam oil unit

Oil and Natural Gas Corporation (ONGC) has said it would invest Rs 2500 crore over three years to renew its ageing oil facilities in Assam.

The revamp will hike output from ONGC's Assam assets to 3 million tonne per annum from 1.4 million tonne at present in three to four years, the company said.

The renewal package involves a comprehensive replacement, revamping and expansion of equipment and infrastructure in Assam, a company release said.

"This investment is part of the mega renewal package for this north-eastern state, being termed Assam Renewal Project, involving a total outlay of around Rs 4000 crore," the release said.

The exploration and production major said it expected to reverse the trend of declining production from the matured oil fields.

Expressions of interest have been invited from global firms to take up the complete renewal job on a turnkey basis, ONGC said.

"ONGC intends to start work immediately after monsoon, and the total project is scheduled to be completed in three years," the release said.

ONGC started exploration in Assam with seismic survey in 1957 and has made 34 oil and gas discoveries in the state over five decades.

The discoveries have original oil-in-place of 786 million tonne with recoverable reserves of 236 million tonne. Of this, 78.68 million tonne has already been produced, leaving a balance of 157.27 million tonne.

ONGC's annual domestic oil output has plateaued around 26 million tonne for some years owing to its ageing assets and no major oil find.