The state-owned Oil and Natural Gas Company (ONGC) is stepping up a USD 7 billion investment over the next three to four years, according to Pankaj Kumar, the company's director for production. There are currently up to 24 field development, enhanced oil recovery (EOR), and improved oil recovery (IOR) projects under way that will help further halt the downward trend in oil and gas output.
"The majority of our fields are ancient and in a state of natural decline. But we are heavily investing in technologies to raise recovery as well as tap isolated sources," stated. ONGC is spending more than USD 5 billion to develop the Cluster-II area of its prized KG-DWN-98/2 asset in the Krishna Godavari basin off the eastern coast of India. He added that there are numerous field
developments in the west coast area, including a planned fifth phase of redevelopment of Mumbai High and the development of nearby fields like Daman. He added that these ongoing projects will cost Rs 60,000 crore (more than USD 7 billion) over the course of the following three to four years. He declared, "We are funding a number of enhanced oil recovery (EOR) and improved oil recovery (IOR) projects. "After five years, we were able to stop the output decline in the fiscal year that ended on March 31. Starting with this fiscal, production will increase."
On a standalone basis, ONGC's output is anticipated to increase from 19.6 million tonnes in 2022–2023 to 21.2 million tonnes in the current fiscal (April 2023–March 2024). The expected increase in natural gas production from 20.6 billion cubic metres in 2022–2023 to 23.5 bcm in the current fiscal year.
Over 85% of India's crude oil demands and 50% of its needs for natural gas are imported. While petrol is used to manufacture fertiliser, power, CNG for cars, and is pumped into homes' kitchens for cooking, crude oil is refined to make fuels like petrol and diesel.
The Indian economy has suffered greatly from the foreign exchange costs of importing oil and gas, and Prime Minister Narendra Modi's administration has been working hard to reduce imports through increased domestic exploration and production. India's domestic crude oil and natural gas production has decreased recently, and the government is pressuring ONGC to increase its oil output and buck the trend.
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