ONGC Board approves slew of investment proposals

April 11, 2007

The Board of Oil and Natural Gas Corporation Ltd. (ONGC), in its 165th meeting held on April 10, 2007, has approved a number of growth-oriented investment proposals:

(A) Augmentation of Gas production in Tripura to feed the Power Plant; Investment Rs. 1817 Crore.

The ONGC Board approved the project to develop upstream facilities to produce incremental Gas of 3 MMSCMD (to raise production from the current level of 1.45 MMSCMD to 4.5 MMSCMD), at an estimated cost of Rs. 1817 Crore. The project includes fast-track exploration and development of Gas resources through intensive drilling and setting up Surface infrastructure, for supplying the gas to the 740 MW Power Plant of OTPC, in which ONGC shall have holding of 50% equity.

(B) Implementation of Integrated Power Generation & Transmission Project; Total Investment Rs. 3844 Crore

The Board also approved ONGC’s equity investment in OTPC. In the overall investment of Rs. 3844 Crore towards the integrated Power Generation and Transmission project with a Debt-Equity ratio of 70:30, ONGC’s investment works out to be Rs. 576 Crore. The Upstream and Downstream activities will be progressively stepped up and the Power Plant is scheduled for commissioning by 2010. This integrated project will enable ONGC to harness its Gas potential in the North-Eastern state through ‘Gas-to-Wire’ concept, catalyzing significant development in the North-Eastern region.

(C) Construction of 7 Pipelines in Mumbai High (North); Investment Rs. 355 Crore

At an investment of Rs. 355 Crore, the project has been approved for construction of 7 Pipelines with Risers and associated top-side facilities in Mumbai High (North). These 7 Pipelines are essential for realization of full potential from Mumbai High (North) and shall be connected to the upcoming MHN Complex (facilities). This is expected to be completed with the upcoming MHN Complex in Mumbai High (North) by April 2010.

(D) C-Series Development Project; Total Investment Rs. 3990 Crore

The Board approved an incremental investment of Rs. 795 Crore for ‘C-Series’ development project, which is under implementation for exploitation of 15.14 BCM of Gas along with 6.13 MMM3 of Condensate from the marginal fields in Arabian Sea. The investment will go to create additional facilities at NQ Process Complex at Mumbai High (North) for handling additional 3.0 MMSCMD of Gas from ‘C-Series’ wells. The additional facilities include new Process Gas Compressor along with revamping of existing Gas Dehydration and Heating systems. The Project, whose total investment now stands augmented from the earlier approved Rs. 3195 Crore to Rs. 3990 Crore, will be completed by April 2009.

Energy-efficient, intelligent office Complex at Kolkata

The Board further approved construction of an energy-efficient, green, intelligent and barrier-free office building (in around 32,000 square metres) at Rajarhat in Kolkata at an investment of Rs. 228 Crore. This will bring the functioning of all the office premises of ONGC in the city under one roof and hence help in attaining operational synergy. The Eastern region has been fast emerging as a potentially rich hydrocarbon destination of the country. The new complex aspires to secure a ‘Platinum’ rating from the United States Green Building Council, to be the first such building in West Bengal.

Donation of Mobile Cancer Detection Unit to Assam Govt.

The ONGC Board also approved the donation of a fully-loaded Mobile Cancer Detection Unit to the Government of Assam, at an estimated cost of Rs. 48 Lakh. The mobile unit is equipped with the latest facilities for onsite detection of malignancy by visiting doctors, and is expected to benefit the local people, who are prone to oral cancer because of betel and tobacco chewing habits.

Source : Equity Bulls

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