ONGC sets Rs 60k-cr E&P capex plan
Driven by higher input costs, the state-owned Oil and Natural Gas Corporation (ONGC) has lined up a capital expenditure of over Rs 60,000 crore, to be spent for its exploration and production (E&P) activities during the 11th Five-Year Plan (’07-12...
By TNN |
MUMBAI: Driven by higher input costs, the state-owned Oil and Natural Gas Corporation (ONGC) has lined up a capital expenditure of over Rs 60,000 crore, to be spent for its exploration and production (E&P) activities during the 11th Five-Year Plan (’07-12), reports Our Bureau.
Speaking to ET at the India Oil and Gas Review Symposium organised by Oil-Asia in Mumbai, the ONGC director offshore, NK Mitra, said: “We have made a presentation to the government to approve the capex of Rs 60,000 crore for the next Five-Year Plan. The outlay is an increase of 17% compared to the capex of Rs 51,300 during the 10th Plan.”
The oil company has also set aside investments of Rs 50,000 crore for acquiring oil and gas assets overseas for the next Plan as against investments of Rs 13,500 crore during the current Plan period. The proposal needs to be cleared by the Planning Commission and the finance ministry.
ONGC’s capex for the current Plan was also hiked to Rs 51,300 crore from the originally planned Rs 30,000 crore. The company spent Rs 10,000 crore in ’05-06 and will be spending close to Rs 12,000 crore by the end of ’06-07.
Citing reasons for the higher capex this time, Mr Mitra said, “Input costs have gone up substantially, and there has been several fold increase in the costs of drilling.” With the enhanced investments, ONGC plans to scale up its production by over 10m tonnes to take its total production to 140m tonnes in the next 5-year period.
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