ONGC targets 50.5m t/y by 2029
ONGC has prepared a five-year plan from 2024 to 2029 to increase production from 39.5m t/y to 50m t/y of oil equivalent.
In other words, an increase from 295m barrels/year or 808,220 b/d to 373m barrels/year or 1.02m b/d of oil equivalent. This comes amid a sharp decline in the Compound Annual Growth Rate (a measure of annual growth) of production from 21% in 2019 to 18% in 2023, a 5% annual OPEX increase, and declining reserves.
ONGC has identified 32 key performance indicators across six areas to reach its goal. "All of this is part of Project Sankalp and Sanchay," says a source.
Six areas under consideration are production, exploration and development, cost, HR, digital, and Environment-Sustainability-Governance (ESG). Some key performance indicators are reducing company non-productive time at offshore assets, arresting western offshore decline through reservoir water pressure management and unplanned loss reduction in the Mumbai High and Neelam and Heera assets.
With exploration, ONGC aims to raise the 1P RRR (reservoir replacement ratio) from 0.4 to 0.8 and the 2P RRR from 1.07 to 1.30, drill more 'wildcats', which it hopes will lead to more discoveries, and fast-track discoveries to market. With HR, the company wants to develop and strengthen drilling and project management, develop and implement rules to reduce the size of the workforce, re-think transfer policies and leadership development and centralise and consolidate admin roles and systems.
"For environment and sustainability," says a source, "ONGC aims to replace 20% of its power usage with renewables." To cut costs, ONGC wants to reduce its workforce by making development drilling more efficient and outsourcing the management of low-production installations and housekeeping.