Independent audits put ONGC oil & gas reserves at 1.06 billion tonnes

21 Feb 2011

According to independent audits, state-owned Oil and Natural Gas Corp (ONGC) has in excess of 1.7 billion tonnes of oil reserves in its domestic and foreign fields.

The company's 64 domestic fields hold a total reserve of 1.06 billion tonnes of oil and oil equivalent natural gas while its 12 properties in countries like Russia and Sudan hold almost 640 million tonnes of reserves.

Meanwhile, the company had retained Gaffney Cline and Associates (GCA) and DeGolyer & MacNaughton (D&M) to audit its 64 domestic fields and assets in Russia, Sudan, Syria, Brazil, Colombia, Venezuela, Vietnam, Myanmar and Egypt in preparation of its share sale next month, official sources said.

While GCA prepared audited estimates for the company's giant Mumbai High field, D&M audited 63 other domestic fields and the overseas assets.

The government intends to sell 5 per cent of its shareholding in ONGC in the follow-on public offer (FPO) next month to raise Rs12,000-13,000 crore.

The audit estimates project the 64 fields to have a 3P (total oil reserve) of 558.04 MT and 503.11 million tonnes of oil equivalent gas.

The audited estimates stand higher than ONGC's self-assessment of 966.18million tonnes of oil and oil equivalent of gas reserves in the 64 fields, including the giant Mumbai High.