State-owned Oil and Natural Gas Company (ONGC) is increasing a USD 7 billion investment over the next three to four years to reverse years of decrease in oil and gas output, according to Pankaj Kumar, the company's director of production.
Up to 24 field development, enhanced oil recovery (EOR), and improved oil recovery (IOR) projects are presently underway, which will assist to reverse the downward trend in oil and gas output.
"Most of our fields are old where natural decline has set in. But we are heavily investing in technology to raise recovery as well as tap isolated reservoirs," he told PTI.
ONGC is investing more than USD 5 billion in the Cluster-II region of its flagship KG-DWN-98/2 project in the Krishna Godavari basin off India's east coast.
It also has multiple field developments in the west coast region, including a planned fifth phase of redevelopment of Mumbai High as well as the development of neighbouring fields such as Daman, he said, adding that these ongoing projects will cost Rs 60,000 crore (more than USD 7 billion) over the next three to four years.
"We are investing in multiple enhanced oil recovery (EOR) and improved oil recovery (IOR) projects," he said. "In the fiscal year ending March 31, we managed to arrest the decline in output after five years and from the current fiscal we will see production rising."
ONGC is likely to see output rise from 19.6 million tonnes in 2022-23 to 21.2 million tonnes in the current fiscal (April 2023 to March 2024) on a standalone basis. Natural gas output is projected to rise from 20.6 billion cubic meters in 2022-23 to 23.5 bcm in the current fiscal.
India imports 85 percent of its crude oil and over half of its natural gas. Crude oil is processed into fuels such as petrol and diesel, whereas petrol is used to create power, fertiliser and CNG, which is pumped into family kitchens for cooking.
Oil and gas imports have been a significant drain on the Indian economy, and Prime Minister Narendra Modi's government has been working to reduce imports through increased domestic exploration and production.
Domestic crude oil and natural gas production in India has been declining in recent years, and ONGC is under government pressure to increase output and reverse the trend.