ONGC to invest Rs 4000 cr to boost output

ONGC to invest Rs 4000 cr to boost output
From Our Spl Correspondent
NEW DELHI, Oct 10 – Faced with declining oil production in the State, the Oil and Natural Gas Corporation (ONGC) has chalked out an Assam Renewal Project with an investment outlay of Rs 4,000 crore. Briefing members of the Parliamentary Consultative Committee attached to the Ministry of Petroleum and Natural Gas, Union Minister, Murli Deora said that ONGC plans to invest Rs 2500 crore in total revamping of old installations and pipeline net work to reduce the surface bottleneck and improve production.

There is a plan to invest Rs 1500 crore to drill hi-tech wells and optimization of artificial lift. ONGC has engaged internationally reputed Halliburton for production optimisation, reservoir management and to enhance oil production in major oil fields of Assam Assets.

The meeting today was on the topic of 'Performance of Oil PSUs during the last three years – the Way Forward'.

The Government has sanctioned the proposal of Oil India Limited (OIL) for fresh equity issue of 10 per cent of its paid up capital through Initial Public Offer to enable the company to get listed on the stock exchanges. Approval has also been accorded to issue additional one per cent of its paid up capital to the employees of OIL, the Minister said.

Fresh issue of 10 per cent of its paid up capital would meet SEBI requirement for listing of the Company's share on the stock exchanges. This would not only make OIL more amenable to market discipline but would also boost the company's image, Deora said.

Besides, it would also help OIL to raise resources for its future expansion and growth. The additional allocation for its employees would motivate them towards better performance, he explained.

About the agreement between Numaligarh Refinery Limited (NRL) and Bangladesh Petroleum Corporation (BPC), Deora said his Ministry was trying to expedite the clearance to declare Silghat as the Port of Call by the Ministry of Shipping. NRL and BPL signed a Supply Agreement in May to supply 10 Million Metric Ton of diesel.

The Minister further added that to improve the reliability of product evacuation in future, NRL has entered into agreement with OIL for transportation of white oil products from Numaligarh to Siliguri through a product pipeline.

While the pipeline project is being implemented by OIL, NRL is setting up product Receiving and Dispatch Terminal at Siliguri at an estimated cost of Rs 149.57 crore and Dispatch Terminal at Numaligarh at a cost of Rs 4.32crore.

About the company's future plans, the Minister said NRL has chalked out plans to set up a wax project, and a Naptha Splitter Unit. Preparation of feasibility report for production of Euro-IV MS/HSD in line with ‘auto fuel policy’ has been initiated.