Panna/Mukta partners plan $750mn capex

The BG group, along with ONGC and Reliance Industries, will invest $750 million in the Panna/Mukta and Tapti oil and gas fields to target new reserves and expand current production.

This was announced by BG group chief executive Frank Chapman at the Petrotech 2005 conference in the city today.

The investment includes $190 million to increase crude oil production from the Panna/Mukta field by 10,000 barrels per day to 40,000 barrels per day and gas production by 0.5 million standard cubic meters per day (MMSCMD) to 4.5 MMSCMD by the second half of 2006.

Investments would also be made to jack up the Tapti gas output to 12 MMSCMD from the current level of 7 MMSCMD.

"Our share of investment would be $250 million, which would take BG's investment in india to $750 million. We plan to raise this to $1 billion," Chapman said.