ONGC output rises due to offshore fields

ONGC output rises due to offshore fields

Though nowhere near where it should be, ONGC’s crude oil production increased marginally for the

second consecutive year in FY16 thanks to a pick-up in production from offshore fields. The government-

owned explorer drilled 22.368 million tonnes of crude oil in FY16, against 22.264 million tonnes in FY15.

However, the gas production scenario continues to be grim with output falling to 21.2 billion cubic

metres in FY16 from 22.02 bcm in FY15.

Offshore fields, particularly in the western region, performed well and produced 100.3% of the crude

production target from such fields in FY16. Production from offshore fields stood at 15.264 million

tonnes in FY16 against a target a 15.212 million tonnes.

“Though no new fields have been added in the last fiscal in the offshore territory, ONGC maintained the

production growth by proper management of reservoirs, carrying out efficient stimulation work and

putting on stream new wells and side-tracking,” a senior ONGC official told FE.

ONGC maintains that it could have also produced natural gas at same rate like last year had some

unavoidable circumstances not come its way. Several reasons have been cited for a drop in gas

production including fire at GAIL (India) pipeline last year in East Godavari district of Andhra Pradesh,

which led to the shutting down of the east coast gas fields for more than four months. Also, ONGC has

to undertake safety repair of 42-inch gas pipeline at Hazira, maintenance shutdown at the Bassein field

and natural decline from existing fields.

“ONGC is upbeat about FY17 because there would be additional gas from new fields such as C-26,

Daman and Bassein redevelopment. In addition, no planned maintenance work is scheduled for FY17,”

said another company official.

In 2015-16, ONGC produced 1.279 million tonnes of condensates against a target of 1.4 million tonnes.

The state-run explorer achieved 99.7% of the target for cumulative production (additional output from

joint venture fields). ONGC crude oil production including joint venture fields stand at 25.925 million

tonnes in FY16 against a target of 26 million tonnes. The offshore fields performed better even in the

case of joint venture assets with output at 3.558 million tonnes, which is 108.9% of the target of 3.268

million tonnes in FY16.

ONGC is optimistic about increasing crude oil output in FY17 primarily due to production from S2AB

deepwater fields in eastern offshore. In addition, incremental production is expected after completion

of redevelopment activities at Mumbai High-North, B-173A and few other well engineering activities.

When it comes to gas production from joint venture fields, ONGC drilled 1.349 bcm against a target of

1.192 bcm in FY16.


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