State-run exploration giant ONGC plans to spend Rs2,200 crore in phases for increasing output from its ageing oilfields located in Ankleshwar and Gandhar in Gujarat, company sources said today.
"This amount will be spent over the next few years," the sources said.
ONGC Chairman and Managing Director Sudhir Vasudeva and other members of the Board of Directors inspected the Ankleshwar oilfield on Sunday, they said.
ONGC struck oil at 'Vasundhara', the first well of the company at Ankleshwar, in May 1960. In mid 1980s, another oil and gas field was discovered by the company in Gandhar.
The oilfields at Ankleshwar and Gandhar account for 25 per cent of total onshore production of the country. However, production from the existing oil and gas wells had been declining over the years, the sources said.
The company now wants to spend this amount (Rs 2,200 crore), which has been approved by the Board of Directors, for increasing output from the two oilfields, they said.
"ONGC is deploying latest technologies in collaboration with global players to achieve its goal."
The public sector undertaking is also focusing on the east cost. "Efforts are being made to step up production from Andhra Pradesh on east coast. The output is expected to touch 25 mmcd by 2016-17 and 100 mcmd by 2030.", the sources said.
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