MOU targets for higher crude and gas production for ONGC

New Delhi, Apr 10 (UNI) The Oil and Natural Gas Corporation (ONGC) today entered into a Memorandum of Understanding (MOU) with the Petroleum Ministry, guiding the company's performance to a higher trajectory for the financal year 2006-07.

The MOU provides crude oil production target of 27.35 million metric tonnes (MMT) registering an increase of 2.7 per cent as compared to last years's target of 26.61 MMT.

The MOU target for gas production for the year 2006-07 is 21.97 billion Cubic Metre (BCM) compared to the previous year's target of 21.41 BCM--an increase of 2.65 per cent.

The document has a gas sales target of 17.13 BCM and production of Value Added Products (VAP) of 2.9 MMT for the current fiscal.

Under the MUO signed by Petroleum Secretary M S Srinivasan and ONGC, CMD Subir Raha, the performance of subsidiaries-ONGC Videsh Ltd (OVL) and Mangalore Refinery and Petrochemicals Limited (MRPL) has been included with an assigned weightage of two per cent (one per cent each).

Mr Raha said,'' ONGC is confident of meeting the augmented crude oil production target, agreed in the MOU, with the support of the Ministry and other government agencies,''.

Last year (2005-06 fiscal) crude oil prductio of ONGC declined due to the accident in BHN platform in Mumbai high. ONGC is looking forward to pick up pace this fiscal with installion of a floating production system in the next few months, followed by a platform there.

The production from Mumbai high is expected to be normalised by July 2006.

UNI RT CS RAI2009