Country’s largest oil producing company ONGC is going to break years old tradition, India’s fate will change.
Ongc Production: Oil and Natural Gas Corporation (ONGC), the country’s largest oil and gas producer, will reverse the years-long trend of declining production this year and gradually increase production thereafter. This will help in overcoming the oil shortage in the country. Giving this information, a top company official said that ONGC is investing billions of dollars to start production from new discoveries. ONGC had produced over 21.7 million tonnes of crude oil in the financial year 2021-22. Crude oil is refined and converted into petroleum products such as petrol and diesel. During the last financial year, the natural gas production of the company was 21.68 billion cubic meters. Natural gas is used for power generation, fertilizer manufacturing and as CNG for vehicles.
Information provided by the company
ONGC Chairman Arun Kumar Singh said that we are definitely expecting an increase in oil and gas production in 2023-24 and even in the current year. The company’s crude oil production is expected to increase to 22.8 million tonnes in the current financial year (2022-23). Whereas the production of gas is estimated to be 22.09 billion cubic meters. In the next financial year, crude oil production is estimated to be 24.6 million tonnes and gas production is estimated to be 25.68 billion cubic meters. ONGC has a share of 71 per cent in the domestic production.
Steady decline for a decade
Production from the company’s fields has been gradually declining for more than a decade. This is because the fields of the company are quite old. The government had considered giving ONGC’s large oil and gas fields to private and foreign companies in an effort to boost production, but faced internal opposition. Singh said the company is ready to partner in technically difficult areas. ONGC is investing Rs 59,000 crore in 20 major projects. These include bringing into production the discovered oil and gas reserves in the deep sea KG block KG-DWN-98/2 (KG-D5) and Phase IV redevelopment of the Mumbai High field. The investment in KG-D5 will enable the company to generate additional production, while the investment in redevelopment of Mumbai High will help arrest the decline in production from the aging areas.
