India’s state-owned Oil and Natural Gas Corporation (ONGC) has announced that it will be investing $2 billion to drill offshore basins and wells in the Arabian Sea. The investment is part of ONGC’s plan to increase its production by 100 million tonnes, and it is expected to create many job opportunities for people in the oil and gas industry.
ONGC’s main gas-bearing asset, the Mumbai High Field, is set to receive the bulk of the investment. The company plans to drill a record 103 wells in this field alone, which is expected to contribute significantly to India’s energy security.
The country’s premier oil and gas producer has three main assets off the west coast – Mumbai High, Heera and Neelam, and Bassein and Satellite, which contributed the bulk of 21.7 million tonnes of oil and 21.68 billion cubic metres of gas it produced in 2021-22.
“We have released a record 103 locations for drilling of wells on the Bassein and Satellite (B&S) assets over the next 2-3 years,” ONGC Director (Offshore) Pankaj Kumar has reportedly said.
According to ONGC, the drilling campaign is expected to commence in the next few months and will continue for several years. The offshore drilling will use modern technology and equipment, including deepwater rigs and modular compact rigs, to ensure safe and efficient operations.
The investment in offshore drilling is a significant step for ONGC and the Indian government, as it will help India reduce its dependence on imports and achieve energy security. It is also expected to boost the country’s economy by creating job opportunities and generating revenue.
ONGC is India’s largest producer of crude oil and natural gas, with a current production of around 70 million tonnes of oil equivalent. The company’s investment in offshore drilling is a sign of its commitment to increasing production and contributing to the growth of India’s oil and gas industry.
Maharatna Oil and Natural Gas Corporation (ONGC) is the largest crude oil and natural gas company in India. It has in-house service capabilities in all areas of exploration and production of oil & gas and related oil-field services. The Government of India held 58.89% stake in ONGC as of December 2022.
The state-owned oil & exploration company’s standalone net profit rose 26% to Rs 11,044.73 crore on 35.5% increase in revenue from operations to Rs 38,583.29 crore in Q3 FY23 over Q3 FY22. The scrip rose 0.80% to currently trade at Rs 151.95 on the BSE.
ONGC’s investment of $2 billion in offshore basins and wells in the Arabian Sea is a positive development for India’s energy sector. The investment will not only increase production but also create job opportunities and boost the economy. ONGC’s plans to drill 103 wells in its main gas-bearing asset will significantly contribute to India’s energy security, making it less reliant on imports. The use of modern technology and equipment will ensure safe and efficient operations, further bolstering India’s position in the global oil and gas industry.
