ONGC notifies crude, natural gas finds

ONGC announced that it has notified DGH about four discoveries of crude oil and natural gas in the past month, reports Deepak Joshi.

Public sector oil exploration major Oil and Natural Gas Corporation (ONGC) announced on Monday that it has notified the upstream regulator Directorate General of Hydrocarbons (DGH) about four discoveries of crude oil and natural gas in the past month. Three of the discoveries were onland, while the fourth was offshore.

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The onland discoveries have been made in well Kosamba-41 and well Chaklasi-8, both western onshore and in well Mekrang-7 in Assam. The offshore discovery has been made in well B-12-11 in PEL Block BOFF 1,2,3 on the Arabian Sea, the company said after a meeting of its board of directors.

The board also gave its nod to three major investments for growth-oriented projects in Dahej, an additional processing facility at Hazira and taking 30 per cent additional stake in Gulf of Cambay oilfield.

The revised configuration of Dahej Petrochemicals Project has been approved. The project is being implemented by ONGC Petro-Additions Limited (OPAL), where ONGC has management control with 26 per cent equity holding. The capital expenditure has come down from Rs 13,540 crore to 12,440 crore, with ONGC's equity contribution at Rs 970 crore. The reconfigured project is expected to be completed by February 2012.

ONGC has also decided to augment the gas-processing capacity of its Hazira complex. The additional units would comprise of a gas-sweetening unit with 6.3 MMSCMD (million metric standard cubic metres per day) capacity, a gas-dehydration facility of 6.3 MMSCMD, dew Point depression units of 5.6 MMSCMD and utilities and off-site facilities, cooling tower, sub-station & caustic soda ash unit.

The capacity augmentation will require an investment of Rs 370 crore. EIL is the consultant for the project, which is to be completed in 38 months.