Mumbai: Oil and Natural Gas Corp. (ONGC) said it will spend $57.13 billion ($1.4 billion) on the second phase of the redevelopment of a key field on the west coast.
The redevelopment would help ONGC’s Mumbai High South field to produce 22 million tonnes of incremental oil, the company said in a statement issued late on Wednesday.
“At current crude prices, the additional produce is valued at Rs530 billion,” ONGC said
ONGC said its fields off Mumbai’s coast, which include Mumbai High North, contribute around 16 million tonnes of oil a year and account for more than 60% of its total crude oil production.
ONGC produces nearly 80% of India’s crude. It faces a natural decline of up to 8% a year at its ageing fields, and has been trying to redevelop them.
The redevelopment project includes drilling 86 wells, the setting up of five well-head platforms and a new process platform that will process the additional production, ONGC said.