ONGC to invest Rs 2,600 cr in gas fields development

State-owned Oil and Natural Gas Corp (ONGC) will invest about Rs 2,600 crore in the third phase of development of C-series natural gas fields off the west coast.

The company board, in its meeting on March 15, approved advancement of development of C-26 Cluster (consisting of C-23, C-26 and B-12-1) fields of Phase-III development of C-series fields, to pre-monsoon 2014 instead of 2018 envisaged earlier, ONGC said in a statement here.

The development will cost Rs 2,592.17 crore.
"The cumulative gas and condensate production from this project will be 16.67 billion cubic meters and 2.81 million cubic meter respectively by 2024-25," it said.

ONGC said the advancement will help realising production starting pre-monsoon 2014 instead of 2018 envisaged earlier.

"The project involves three well head platforms, associated facilities and pipeline, drilling and completion of 8 wells and conversion of old drilling rig Sagar Pragati (of 1981 vintage) to Mobile Offshore Production Unit (MOPU)," it said.

The company said it has discovered natural gas reserves in a block in Damoh district of Madhya Pradesh.

Well Nohta-2 in block DamohJaberaKatni discovered one interval of gas during texting.
"Discovery of gas in this well has given a new boost to exploration for hydrocarbons in this Category-III basin after first discovery of gas reported in 1991 in well Jabera-1," the statement said adding the find is significant as it is in one of the oldest sedimentary sequences of Proterozoic age.

Also, it made a gas find in a Kutch offshore block. Prospect GK-42-1, situated in shallow water depth of 30 meters at a distance of about 50 km from Okha port in Gujarat, flowed gas on convention testing.

ONGC said the March 15 board meeting also approved second interim dividend of Rs 1.5 per share for 2011-12. "The total payout on this account will be Rs 1,283.32 crore, out of which the Government of of India will receive Rs 888.38 crore."

Earlier in January, the company had given an interim dividend of Rs 6.25 per share. The total payout then was Rs 5,347.20 crore, out of that the government received Rs 3,964.36 crore.

"Total payout on account of interim dividend stands at Rs 6,630.52 crore plus the Dividend Tax of Rs 1075.52 crore," the statement added.