ONGC board approves Rs6,700 crore investment plans
12 Apr 2007
Mumbai:
State-run Oil and Natural Gas Corp. (ONGC) will
invest over Rs6,700 crore to raise oil and gas output,
and set up its first large power plant.
ONGC board cleared the proposals at its meeting on 11
April, the company said in a statement.
ONGC will spend Rs1,817 crore on infrastructure that
would help raise gas output from fields in the country''s
northeast to 4.5 million cubic metres a day from the
current 3 mmscmd.
The gas will be used as feedstock for a planned 740-megawatt
power plant in Tripura, to be set up jointly with Tripura
Power Co. Ltd. ONGC will invest Rs576 crore for a 50-per
cent stake in the project.
The power project, with a debt-equity ratio of 70:30
and involving overall investment of Rs3,844 crore, will
be commissioned by 2010.
ONGC will also be investing Rs355 crore in the construction
of seven pipelines in the Mumbai High (North) oil and
gas fields, where a fire destroyed a large platform
in July 2005 and cut production.
"This is expected to be completed with the upcoming
MHN complex in Mumbai High (North) by April 2010,"
it said.
For the development of its marginal fields in the western
offshore, popularly known as C-series, the ONGC board
has approved an additional investment of Rs795 crore,
taking the final spending figure to Rs3,990 crore.
The
project is under implementation for exploitation of
15.14-billion cubic metres of gas and 6.13-cubic metres
of condensate from the marginal fields in Arabian Sea.
The project is expected to be completed by 2009.