New Delhi, Feb 21 (PTI) State-owned Oil and Natural GasCorp (ONGC) has over 1.7 billion tonnes of oil reserves in itsdomestic and foreign fields, according to independent audits.
ONGC''s 64 domestic fields have a total reserve of 1.06billion tonnes of oil and oil equivalent natural gas while its12 properties in countries like Russia and Sudan hold almost640 million tonnes of reserves.
The company, in preparation for its share sale nextmonth, had engaged Gaffney Cline and Associates (GCA) andDeGolyer & MacNaughton (D&M) to audit its 64 domestic fieldsand assets in Russia, Sudan, Syria, Brazil, Colombia,Venezuela, Vietnam, Myanmar and Egypt, official sources said.
While GCA prepared audited estimates for ONGC''s giantMumbai High field, D&M carried audit of 63 other domesticfields and the overseas assets.
The government plans to sell 5 per cent of itsshareholding in ONGC in the follow-on public offer (FPO) nextmonth to raise Rs 12,000-13,000 crore.
According to the audit estimates, the 64 fields haveproved or 1P reserves of 612.55 billion tonnes of oil andoil-equivalent gas.
Furthermore, 888.04 million tonnes were estimated asprobable or 2P reserves which have at least 50 per cent chanceof being produced. Another 1.06 billion tonnes of reserveswere classified as possible or 3P which have a 10 per centchance of being recovered.
D&M estimated that the firm''s overseas assets hold 1Preserve of 119.977 million tonnes, 2P reserve of 288.299million tonnes and 3P reserve of 639.706 million tonnes of oiland oil equivalent gas.
The audited estimates are higher than ONGC''s selfassessment that put domestic and overseas reserves at 1.655billion tonnes (3P reserves). 1P reserves were estimated at951.77 milion tonnes and 2P reserves were put at 1.4 billion.
Sources said ONGC''s self-assessment put 1P, 2P and 3Preserves in domestic fields at 770.86 million tonnes, 1billion tonnes and 1.21 billion tonnes respectively.
For overseas assets, the figures were 180.91 milliontonnes, 404.16 million tonnes and 445.61 million tonnes oiland oil equivalent gas.
Sources said oil reserves were primarily a measure ofgeological risk - of the probability of oil existing and beingproducible under current economic conditions using currenttechnology.
The three categories of reserves generally used areproven (reasonably certain to be producible), probable (50 percent chance of these being produced) and possible reserves(having 10 per cent certainty of being produced).
The reserve audit will help ONGC get a good response tothe planned share sale likely to open on March 15. MORE PTIANZ