India Intelligence Report

  ONGC, Mittal Energy JV?


Indian oil major Oil and Natural Gas Corporation (ONGC) revealed plans to start a joint venture with steel baron Lakshmi Mittal to buy energy stakes around the work valued at USD 15 billion. ONGC-Mittal Energy Ltd will buy energy blocks to meet oil and natural gas requirements by a tornado Indian economy. ONGC Chairman Subir Raha also revealed plans to start production of natural gas from a deep-sea platform on the Krishna Godavari basin to produce one million standard cubic meters per day (mscmd) before summer and a full production of 2.7 mscmd by mid-2007. This is the first time India is tapping gas from a deep-sea platform; the present 69 mscmd comes from on-land and shallow water fields. The company will increase its domestic oil exploration budget by 18% to USD 3.5 billion. Since 2001-2002 when Raha started running the company, the exploration budget has grown by 300%. Oil production from the Mumbai High offshore oilfields will be less than 1 million tons because of the fire in Mumbai High that destroyed the platform. By June 2006, ONGC expects to produce 275,000 barrels a day to produce 29.09 million tons in the next fiscal year.

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