Energy | ONGC to lend $857 mn to overseas unit

Energy | ONGC to lend $857 mn to overseas unit
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First Published: Tue, Dec 29 2009. 11 32 PM IST
Updated: Tue, Dec 29 2009. 11 32 PM IST
Mumbai: Oil and Natural Gas Corp. Ltd (ONGC) will lend $857 million (around Rs4,002 crore) to its overseas unit, ONGC Videsh Ltd (OVL), investing in a gas project off Myanmar’s coast as India’s biggest explorer seeks to meet rising fuel demand at home.
“For us it makes more sense to invest in assets through OVL than put the money in banks,” ONGC chairman and managing director R.S. Sharma said in a telephone interview. “The interest-free loan has no maturity date,” Sharma said.
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ONGC strikes new gas well in Tripura
Agartala: “Oil and Natural Gas Corporation Limited (ONGC), has struck a new gas well at Sundaribari in South Tripura district, about 125 km from here,” official sources said.
“Preliminary examination shows that the low resistivity sand perforated in the interval of 2164-68 metre produced gas at the rate of 160,000 million cubic metre per day,” officials said.
“The gas reserve is huge and the new discovery would form a considerable reserve base of hydrocarbon which would also cater to the needs of supplying gas to the 740 MW gas-based thermal plant at Palatan in South Tripura district. The thermal project would be completed by 2012,” sources said.
“The Tripura Asset of ONGC has set a target of 60 lakh cubic metres of gas production per day which would be completed by three phases and Rs1,946.22 crore has already been sanctioned by ONGC board for the first phase to be completed by 2011-12,” the officials said.
— PTI
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First Published: Tue, Dec 29 2009. 11 32 PM IST