The biggest oil and gas producer in India, ONGC, said on a conference call with investors that it would reverse years of production drop this year and progressively increase output going forward as it invests billions to produce from more recent discoveries. Oil and Natural Gas Corporation (ONGC) produced 21.707 million tonnes of crude oil in FY22, which is refined into petroleum products like gasoline and diesel, and 21.68 billion cubic meters (bcm) of natural gas, which is used to generate electricity, make fertilizer, and fuel compressed natural gas (CNG) vehicles.
Production of gas and crude oil are expected to increase in FY23, reaching 22.099 bcm and 22.823 million tonnes, respectively. Oil production will increase to 24.636 million tonnes the following fiscal year and to 25.689 million tonnes in 2024–25, the management said in a call with investors following the release of second-quarter earnings last week. The production of natural gas is expected to increase to 25.685 bcm in 2023–2024 and to 27.529 bcm in 2025. ONGC Director (Finance) Pomila Jaspal declared, “We have reversed the downward trend.”
Because its fields are old and aging, ONGC, which accounts for about 71 percent of India’s domestic production, has reported a steady fall in output for more than a decade. In an effort to increase output, the government has thought about selling the largest oil and gas fields of ONGC to private and foreign corporations, but this has run into internal opposition. The deepwater KG block KG-DWN-98/2 (KG-D5) oil and gas deposits as well as the fourth phase of the enduring Mumbai High fields are among the 20 key projects in which ONGC is now investing 59,000 crores.
While spending on the renovation of the currently producing Mumbai High and other fields would help stop the natural decrease that has been set in the aged fields, investment in KG-D5 will result in more output. While spending on the renovation of the currently producing Mumbai High and other fields would help stop the natural decrease that has been set in the aged fields, investment in KG-D5 will result in more output.
