ONGC plans to invest over $1.1 billion on Mumbai High fields redevelopment

In a bid to rejuvenate the ageing reservoir in the Arabian Sea, Oil and Natural Gas Corp (ONGC) is planning to drill a record 130 wells at its prime Mumbai High oil and gas fields. The drilling campaign will cost over $1.1 billion. The project will start later this year and continue for three to four years. The wells are part of the third phase of the Mumbai High redevelopment plan.  The company is investing almost Rs 20,000 crore in the third phase of redevelopment at Mumbai High, targeting production of 132 million to 147 million barrels of additional crude oil. 73 new offshore wells will be drilled on the northern part and another 50 in Mumbai High South. Also, 38 poor producer wells on Mumbai High North will be side-tracked. Besides, new wellhead platforms and sub-sea pipelines will be built to replace old ones. ONGC is a premier oil and gas company in India, accounting for 71% of the country’s crude oil production and 54% of its natural gas production in 2011-12. It is also a significant producer of value added products such as liquefied petroleum gas (LPG), superior kerosene oil (SKO), and naphtha. GoI is the majority shareholder in ONGC, with a 69% equity stake as of now.