ONGC to produce 2.5 lakh lit crude from K-G basin in FY04

The state-owned Oil and Natural Gas Corporation (ONGC) aims at producing 1,950 million metric standard cubic meters (MMSCM) of natural gas and 2.5 lakh tonnes (lt) of crude oil from its Krishna-Godavari basin fields this fiscal.

The corporation registered a 13 per cent growth in natural gas production and 6 per cent growth in crude oil production during the last fiscal, recording a 31 per cent growth in revenue earnings when compared to the preceding year.

In 2002-2003, K-G basin produced 2,008 MMSCM of natural gas and 3 lakh tonnes of crude oil, earning a revenue of Rs 771.53 crore as against Rs 586.27 crore in 2001-02.

"The corporation has fixed lower targets this fiscal than the actual production in the last fiscal. The corporation produced 1,306 MMSCM of gas and 1.96 lakh tonnes of crude oil through the K-G basin wells till November-end this year," the sources from ONGC told Business Standard.

At present, ONGC is producing these gas and oil reserves from about 100 wells.

"The corporation has set up 15 platforms to bring out these oil and gas stocks from these 100 wells. At present, ONGC is operating eight rigs in the K-G basin. In June, 2003, seven rigs were moved from the old sites to new drill sites. In December, the remaining E-1400-17 rig too was shifted from the drill site to the new drill site," the sources said. Gas Authority of India Limited (GAIL) has been taking the gas from ONGC and supplying it to the local industries.

The crude oil produced in the K-G basin is being utilising by the ONGC-owned mini refinery in the Konaseema area.