Oil & Natural Gas Corporation Ltd.
Oil & Natural Gas Corporation Ltd.(ONGC), originated in 1956, is mainly engaged in the oil exploration, development and production refining, transporting and marketing of Crude Oil, Natural Gas, LPG, natural gas liquid, ethane, propane and some other value added petroleum products such as NGL, C2-C3, Aromatic Rich Naphtha and Kerosene, both onshore and offshore. It owns and operates more than 11,000 Km of pipeline in India including nearly 3,200 Km of sub-sea pipelines. It is the only fully integrated petroleum company in India operating along the entire hydrocarbon value chain. It has established 6 billion tons of in-place hydrocarbon reserves with more than 300 discoveries of oil and gas. The company has discovered around six in India (Western Offshore Basin (Mumbai & Baroda), KG Basin (Rajamundary), Cauvery Basin (Chennai), Assam & Assam-Arakan Basin (Jorhat), CBM-BPM Basin (Kolkata) and Forntier Basin (Dehradun)). Co. has two plants situated in Uran and Hazira.. It holds 57.2%, the largest share of hydrocarbon acreages in India. The company going along with two of its folds namely ONGC Videsh Limited (OVL) and Manglore Refinery & Petrochemicals Limited (MRPL) and ten of Joint Ventures/Associates. OVL has 26 projects in 15 countries.
INVESTMENT RATIONALE
§ Recent Hydrocarbon Discoveries
- Linch-65 in Jotana-Warosan ML (Mining Lease) Block of Western Onshore Basin (Oil & Gas)
- South Kadi-144 in Balasar PEL (Petroleum Exploration License) Block of western Onshore Basin (Oil & Gas)
- Halisa-12 in Halisa ML Block of Western Onshore Basin (Oil)
- GS-15-14 in PEL Block IF of KG-PG Basin (Shallow Offshore) (Oil & Gas)
§ ONGC Board has approved a proposal for setting up additional process units at Uran Plant at an estimated cost of Rs. 1797 Crore. The project is expected to be completed in 38 months.
§ ONGC’s foreign arm OVL has gained two oil and gas blocks CPO-5 and SSJN-7 in Colambia through an international bid.
§ ONGC is envisaging an investment of over 5 billion USD to start production from deepwater blocks KG-DWN-98/2 and KG-OS-DW-IV by 2013.
§ ONGC has signed an MoU with Uranium Corporation of India Ltd (UCIL) for joint cooperation in uranium exploration and development. The cross-fertilisation of ideas and technologies are bound to synergise the new endeavour of uranium prospecting and mining.
§ ONGC may generate 400,000 carbon credits a year by 2012 as it cuts the output of gases blamed for global warming at its oil fields.
§ ONGC Videsh Ltd. has also set an ambitious target of 39.5 MTOE of Oil & Gas in XI Plan compared to 23.5 MTOE production during X plan. For this, E&P outlay of OVL for XI Plan has been raised by about 85% against its X Plan actual expenditure.
§ ONGC will commence pilot production of Coalbed Methane (CBM) gas from Parbatpur area of Jharia block in Jharkhand from Dec.’ 2008. Commencing with 5000 cubic metres a day, Peak commercial production of 3,00,000 cubic metres per day will be achieved from 2011, for 10 years. Rs. 300 Crore has already been invested in the project; and a total Rs. 1500 crore lined up till 2011.
§ ONGC’s maiden renewable Wind-farm venture got underway near Bhuj on 6th September 2008. The 50 MW turnkey projects, entailing an investment of around Rs. 308 Crore, comprises of a 34 unit-farm, with each Wind Turbine Generator (WTG) unit capable of generating 1.5 MW.
§ ONGC has entered into an agreement with Rocksource ASA, a Norwegian company for assignment of 10% participating interest (PI) in deep water block CY-DWN-2001/1 located in Eastern Offshore.
