ONGC okays investment in Mumbai Offshore
Mumbai, Aug 9: The board of Oil and Natural Gas Corporation (ONGC) has approved an investment of Rs 3,195 crore for the development of C-series in Mumbai offshore and Dahej Petrochemicals Complex.
Informing the BSE today, the company said the aforementioned investment decisions were made at the board meeting held yesterday.
Accordingly, the development of C-series in Mumbai offshore, located 60 km West of Daman in the Tapti Daman block of Mumbai offshore, will be developed by ONGC at an investment of Rs 3,195 crore.
The field, situated at water depths ranging from 19 to 35 m, are estimated to hold in-place reserves of 15.54 billion cubic m of gas and 4.46 million cubic m of condensate. The development of the first phase will be completed by December, 2008.
Eight platforms and 17 wells will be drilled to develop the marginal field. The estimated gas production would be more than three million standard cubic m per day.
Though the field was discovered in 90s, it has become viable only recently due to market-determined prices for natural gas.
At Dahej, the company will be implementing a global scale petrochemicals complex consisting of 1.1 million tonnes per annum of ethylene capacity dual feed cracker, along with associated units and polymer plants, to manufacture HDPE, LLDPE, PP and Styrene Butadiene Rubber (SBR).
This petrochemicals complex will be integrated with the company's own C2-C3 plant which is currently under execution (at Dahej) and naptha, as feedstock from the company's own operational units at Hazira and Uran. The project is proposed to be implemented through a SPV route, with the company having management control, holding 26 per cent equity.
Gujarat State Petrochemicals Corporaiton (GSPC) has evinced interest to participate in the project as a joint venture partner. With a projected debt-equity ratio of 2.55:1, the company's anticipated equity investment (26 per cent) would be around Rs 992 crore.