ONGC announces three oil and gas discoveries

ONGC announced three oil and gas discoveries and plans to invest over Rs 4,050 crore to upgrade Arabian sea facilities

State-run Oil and Natural GasBSE -0.40 % Corp (ONGC) has made three 'significant' oil and gas discoveries, two in the prolific Krishna Godavari basin and one in Tripura.

Oil and gas is found in an onland block, which is located northwest of Bantumillli town in West Godavari district, but its commerciality will be determined only after proper appraisal, an ONGCBSE -0.40 %official said.

The oil is of very high quality and it was found in an exploration well on Feb 25 at a depth of 3,691 meter, the official added.

The other discovery is of natural gas, which is made in the shallow water of Krishna-Godavari basin at KG-OSN-04-NASA block is "high potential discovery", the company said in a statement. ONGC has already made two more discoveries in the block.

ONGC's Tripura gas discovery in the Agartala dome extension- II block, where exploratory well AD-37 enhanced the prospects as this is the second major discovery in the gas field.

Meanwhile, the ONGC board on Wednesday decided to invest over 4,050 crore to upgrade western offshore facilities on the Arabian Sea.

The company plans to revamp unmanned platforms phase-II in the Mumbai High and Neelam & Heera asset for long-term use. "The existing infrastructural facilities would be required to be in service beyond 2030 for Western offshore fields, which is much more than the design life of these facilities. Hence revamping/retrofitting of these facilities in a phased manner is essential to maintain the production of oil and gas from Mumbai High and Heera fields," ONGC said. The project will cost Rs 2,913.10 crore and it is expected to be completed by pre-monsoon 2016.

The company will invest about Rs 1,138.50 crore on reconstruction of process complexes in the prolific Bassein & Satellite field in the western offshore, to replace the old structures commissioned in 1987 and 1989, respectively.

"Both Complexes handle and process acidic and corrosive gas (with H2S) for onward dispatch to Hazira Gas processing plant of ONGC. Also both the complexes have already covered /covering the normal design life of 25 years," ONGC said.