BG plans to pump $500 mn in Indian operations

NEW DELHI: British energy firm BG Group Plc plans to invest $500 million over next five years in its oil and gas business in India, company’s India head Walter Simpson said on Tuesday.

“We are looking at both upstream and downstream opportunities for expansion in India,” he said on the sidelines of the Petrotech-2010 oil and gas conference here.

BG Group has 30% stake in Panna/Mukta and Tapti oil and gas fields off the west coast. Besides, it has 25-24% stake in three exploration blocks with state-owned Oil and Natural Gas Corp ( ONGC).

It has a 65.12% controlling stake in Gujarat Gas Co Ltd, which sells gas in Gujarat, and 49.75% stake in Mahangar Gas Ltd which retails CNG and piped gas in Mumbai. Mr Simpson said BG and its partners ONGC and Reliance Industries are planning further investment in raising output from the Panna/Mukta and Tapti fields.

The fields currently produce about 35,000 barrels of crude oil per day and close to 13 million standard cubic meters per day of natural gas.

He, however, refused to give details of plans for Panna/Mukta field.