ONGC to spend Rs 3.5k crore in drilling wells in Assam

New Delhi: Oil and Natural Gas Corp (ONGC), India’s state-owned hydrocarbon explorer, is planning to drill 100 wells in 21 onshore Petroleum Mining Lease (PML) blocks in Sivasagar district at a cost of Rs 3,500 crore.

The 21 onshore PML blocks in Sivasagar district will cover major oil producing fields of Lakwa, Rudrasagar, and Geleki, where the company has already drilled more than 500 wells, ONGC said in an application seeking clearance from the environment ministry.

The company had in January applied for drilling 200 wells in Sivasagar at a cost of Rs 6,000 crore.

ONGC’s crude oil production from Assam blocks rose 2 percent to 993 Thousand Tonne last financial year, while natural gas production dropped 5 percent to 483 Million Cubic Meter.

The company plans to spend an overall Rs 32,921 crore in the current fiscal (2019-20). Of this, 34 percent is expected to be spent on capital projects, 28 percent on drilling development wells and 22 percent on exploratory drilling, it said in an investor presentation.

ONGC plans to spend Rs 83,000 crore on ongoing projects including 18 development projects and seven infrastructure projects, with an envisaged lifecycle gain of 72 Million Tonne of crude oil and 116 Billion Cubic Meter (BCM) of natural gas.