Oil and Natural Gas Corp (ONGC) plans to invest about Rs 11,000 crore in redevelopment of its prime Mumbai High oilfields to arrest production decline from the ageing field.
ONGC previously invested Rs 3,239 crore in redevelopment of Mumbai High North and Rs 6,579 crore in Mumbai High South. It is now preparing to launch the Rs 11,000 crore second phase later this year, ONGC director (offshore) NK Mitra said.
About Rs 6,500 crore would be invested in Mumbai High South redevelopment to give an additional 20 million tons of oil from 2010 to 2030. Another Rs 4,500 crore would be invested in Mumbai High North to produce additional 15 million tons over the period.
Mumbai High is India's largest oil field and has been in production for over 25 years now.
"But for these investments, production from the field would decline to 8-9 million tons by 2010-11 from current output of a little less than 13 million tons," he said.
The second phase of investment would raise the recovery factor from 28 per cent to 34-35 per cent.
Mitra said in the first phase of redevelopment, 23.25 million tons of oil and 6.10 billion cubic meters of gas was added from investments in the northern part of the Mumbai High field. Similarly, the investment in Mumbai High South would yield 33.85 million tons of oil and 10.26 bcm of gas by 2030.
"Approval for the second phase of redevelopments are likely in next couple of months and we would then begin tendering work," he said.