ONGC to increase production of oil,gas from KG Basin

Oil and Natural Gas Corporation Limited is going to increase the oil production by 17% and gas output by 24% from 2019 as it starts to commercially produce petroleum from deepwater block in the Krishna Godavari(KG) Basin.

Sashi Shankar, ONGC chairman said”We have seen around 7% growth in gas production in 2017-18 over the previous year.We will increase oil production by 17% and gas production by 24% from 2019 onward, in a phased manner.”This development happened when oil production hit a 7 year low while gas production increased after 6 years.

ONGC produces about 60% of India’s crude oil and saw production stagnating at 20,370 million tonne

“We have gas reserves in the nominated blocks but they are not commercially viable at a price of $3 per mmBtu(million metric British thermal unit),uf we get marketing freedom,we can tap these reserves and increase gas production.It would be much cheaper than buying imported LNG at price of $10 per mmBtu” said Mr. Shankar.He also said that the ONGC was committed to reducing oil imports by 10% by the year 2022.

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