India's ONGC will invest $10.5 billion in deepwater exploration, says chairman

A.K. Singh, Chairman of the Oil and Natural Gas Corp in India, said on Monday that it aims to invest 10 billion rupees (10.51 billion dollars) over five-years into exploring its local "deepwater and ultradeep" water fields. Singh told reporters on Monday.

ONGC plans to drill 87 ultradeep and deepwater wells before March 2031. He said this during a press conference.

Singh stated that India has vast untapped oil and gas reserves in deepwater blocks.

India's oil and natural gas production has fallen for the 11th consecutive year, and the state-owned integrated oil company is in desperate need of major discoveries.

Singh stated that ONGC would also invest a total of?70 billion rupees to build 1.75 million tonnes in strategic petroleum reserves (SPR) near Mangalore, southern India.

India, as the third largest oil importer in the world, is increasing its strategic reserve capacity. This will allow it to deal with global crude oil price fluctuations and volatility.

He said that the government wants ONGC build this SPR for which it has?already purchased land.

Separately he stated that ONGC hopes a joint venture will be formed with a global?company to establish a 'trading unit' in either Dubai or Singapore before the end of March, 2027. The joint venture would be able to trade up to 50 million tonnes per year of crude oil, refined fuels, and gas.

He added that the JV would also 'trade third-party volumes.

(source: Reuters)