ONGC will struggle to raise offshore oil output

Vol 20, PW 16 (04 May 17) Exploration & Production

ONGC will struggle to meet a government-imposed target to increase offshore oil production by 5% this fiscal, say senior managers.

First it needs to urgently address natural production decline at its depleting western offshore fields, they say. Often this is as much as 6% every year.

"Only after this natural decline is arrested," an ONGC source tells us, "can production increase." What better venue to discuss this than the plush surroundings of Jaypee Greens Golf Resort, a luxury hotel complex in Noida? Over three days from April 14 to April 16 offshore ONGC asset teams met here to discuss the oil ministry's new target to increase production by 5%. ONGC chairman DK Sarraf kicked-off a review meeting with director offshore TK Sengupta in the driving seat.

Looming in the background was Narendra Modi's March 2015 declaration that India must reduce its dependence on oil imports at least 10% by 2022. At Mumbai High, India's biggest offshore field, ONGC has been tasked with drilling 39 development wells and 16 sidetrack wells to raise production from approximately 200,000 b/d to 204,000 b/d.

At the Bassein and Satellite fields the target is to drill 25 development wells and 26 sidetrack wells to raise production from around 60,000 b/d to 63,000. At the Neelam and Heera fields, the plan is to drill 11 development and 33 sidetrack wells this fiscal to raise production from roughly 50,000 b/d to 54,000.