ONGC expects to boost its crude oil output to 28 million tonnes annually by March 2014, and gas production to 100 million standard cubic metres each day by March 2017. Besides, the company is also getting foreign partners for increasing its output.
The PSU oil exploration and production major has always are available in for criticism for its declining output or not really meeting projections. The company’s standalone crude oil result in 2010-11 was 24. 42 million tonnes and gas production was 23. 10 billion cubic metres.
Stating how the existing fields, which are old, are ONGC's cash-cow, he said the organization will invest Rs 26, 000 crore to improve output at its marginal fields.
Roping in companions for exploration
Asked if technological issues were showing a deterrent for ONGC, Mr Vasudeva, said: “No. These days, there is no technological gap. We are improving ourselves consistently. ”
ONGC, in fact, is available to selling stake to foreign firms in its exploration blocks to assist raise hydrocarbon output.
Cairn
ONGC expects to send the draft from the formal agreement to be inked with Cairn Indian and Vedanta Resources shortly.
The PSU firm had decided to give its consent for stake sale in Cairn Indian to Vedanta Resources and their affiliates, provided both companies enter into a formal agreement with ONGC on royalty and cess conditions laid down through the Government.
“We have been examining the draft. It will likely be a matter of days when we will deliver it to Cairn and Vedanta, ” said Mr DEB. K. Sarraf, Managing Director, ONGC Videsh Ltd, who had been Director (Finance) of ONGC till recently.
Follow-on open public offer
On share sale of ONGC, Mr Vasudeva stated, the promoter, the Government of India must have a call on when it wants to go forward.
"The market has been behaving very erratically... The federal government has to take a call, " he additional.
Manpower
Retaining and getting qualified manpower is challenging for ONGC, he said. In the next 5 years, 7, 000-odd people will be retiring. Although the attrition rate is 0. 25 per cent within the company, to create an oil man takes no less than five years, he added. The company is prospecting 1, 000 people annually.
Source : The Hindu Business Line