Sharma: Expansion mode

New Delhi, Sept. 23: State-owned Oil and Natural Gas Corporation Ltd (ONGC) will invest Rs 50,000 crore to develop new gasfields and increase production from the existing oilfields.

The PSU will also pursue overseas acquisitions to offset the natural decline in output in mature fields such as Mumbai High.

“ONGC has chalked out three strategic pursuits, including intensifying exploration, improving recovery from existing fields and aggressively pursuing overseas projects,” said ONGC chairman R.S. Sharma.

ONGC has invested Rs 14,000 crore in enhanced oil recovery schemes in 15 major fields.

“These schemes have helped in improving the recovery factor in these fields to 33 per cent in 2008-09 from 28 per cent in 2000-01. Seven schemes are under implementation at an estimated investment of over Rs 16,000 crore,” said Sharma.

As part of an intensified exploration that aimed to create new oil and gas assets, ONGC had collected 284.81 million tonnes of oil equivalent of in-place hydrocarbon reserves in 2008-09, the highest in the last two decades.

“Ultimate reserve accretion of 68.90 million tonnes of oil equivalent from domestic operated fields is the highest in 18 years,” said Sharma.

ONGC Videsh Ltd (OVL), the overseas arm of ONGC, is planning to aggressively pursue exploration and production projects. It now has 40 projects in 16 countries.