Targets to up production by 17% from nine assets by FY18
India’s largest explorer ONGC will provide ‘service contracts’ to ramp up crude oil output from its nine onshore assets by up to 17% by FY18. In this model, popular mostly in West Asian oil-producing nations, the fields are handed over to firms, which offer a fixed rate of return to the owner of the asset.
The PSU has adopted a strategy — ‘Mission 7’ — where it aims to boost the output from onland fields to 7 million tonne a year (mtpa) in the next two years. Currently, the PSU drills about 6 mtpa from these fields. The explorer produced 22.26 million tonne of crude oil from all its assets in FY15.
Sources privy to the development said that ONGC’s director (onshore), Ved Prakash Mahawar, is working overtime with the head of the assets to fine tune the development work. The nine assets are spread over Assam, Tripura, Mehsana, Ahmedabad, Ankleswar, Cambay, Karaika, Cauvery and Rajahmundry. The asset managers have been asked to chart out a strategy for their respective fields within the next three months.
“A three-stage strategy has been made — immediate, mid-term and long-term. The immediate plan is to reduce the falling output from decades’ old fields. Mid-term programme is to boost output and long-term strategy would see if further recoverable resources could be found and exploited,” a senior official involved in the process said.
Meanwhile, international consultant McKinsey is also entrusted with the job to come up with a report on the onland assets.
“The global natural rate of decline in production is around 7-8%. However, at ONGC fields, it has been restricted at 3-4%,” said another official, adding that the explorer is deploying all advanced technologies such as hydro fracking, well stimulation and latest improved oil recovery (IoR) and enhanced oil recovery (EoR) techniques to boost output.
ONGC’s offshore fields are showing fair performance, thereby helping the explorer reverse an eight-year trend by reporting a higher output in FY15. The PSU is banking on the better performance of its assets in the western offshore region. In FY15, crude oil production from western offshore fields, which contributes about 70% of the explorer’s total domestic production, averaged at about 3,27,500 bopd in March, which was the highest production rate from the western offshore since 2008. The trend is likely to continue in the current financial year.
India’s largest explorer ONGC will provide ‘service contracts’ to ramp up crude oil output from its nine onshore assets by up to 17% by FY18. In this model, popular mostly in West Asian oil-producing nations, the fields are handed over to firms, which offer a fixed rate of return to the owner of the asset.
The PSU has adopted a strategy — ‘Mission 7’ — where it aims to boost the output from onland fields to 7 million tonne a year (mtpa) in the next two years. Currently, the PSU drills about 6 mtpa from these fields. The explorer produced 22.26 million tonne of crude oil from all its assets in FY15.
Sources privy to the development said that ONGC’s director (onshore), Ved Prakash Mahawar, is working overtime with the head of the assets to fine tune the development work. The nine assets are spread over Assam, Tripura, Mehsana, Ahmedabad, Ankleswar, Cambay, Karaika, Cauvery and Rajahmundry. The asset managers have been asked to chart out a strategy for their respective fields within the next three months.
“A three-stage strategy has been made — immediate, mid-term and long-term. The immediate plan is to reduce the falling output from decades’ old fields. Mid-term programme is to boost output and long-term strategy would see if further recoverable resources could be found and exploited,” a senior official involved in the process said.
Meanwhile, international consultant McKinsey is also entrusted with the job to come up with a report on the onland assets.
“The global natural rate of decline in production is around 7-8%. However, at ONGC fields, it has been restricted at 3-4%,” said another official, adding that the explorer is deploying all advanced technologies such as hydro fracking, well stimulation and latest improved oil recovery (IoR) and enhanced oil recovery (EoR) techniques to boost output.
ONGC’s offshore fields are showing fair performance, thereby helping the explorer reverse an eight-year trend by reporting a higher output in FY15. The PSU is banking on the better performance of its assets in the western offshore region. In FY15, crude oil production from western offshore fields, which contributes about 70% of the explorer’s total domestic production, averaged at about 3,27,500 bopd in March, which was the highest production rate from the western offshore since 2008. The trend is likely to continue in the current financial year.
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