ONGC has brought down its offshore insurance spend by 38 per cent to $29.03 million despite its offshore asset value jumping to $16 billion.
NEW DELHI: Oil and Natural Gas Corp (ONGC), which made 22 oil and gas finds in 2006-07, has brought down its offshore insurance spend by 38 per cent to $29.03 million despite its offshore asset value jumping to $16 billion.
"ONGC has been successful in bringing down insurance premium for its offshore assets by 38 per cent for fiscal 2007-08. The total premium payable for FY'08 is $29.03 million against 46.83 million dollars in respect of FY'07," a company press release said.
The new policy is effective from May 11, 2007 to May 10, 2008. The renewal programme was managed by United India Insurance Co Ltd (UIIC), as the leader of the consortium that comprised public sector companies NIAC, OICL and NIC.
The company's offshore installations (production platforms and complexes, pipelines, rigs and wells) have been valued at $16 billion, 23 per cent more than $13 billion valuation in 2006-07.
ONGC said during 2006-07, it made 22 discoveries (nine by new prospects and 13 by establishing new pools).
"The new prospects are: three in Cambay basin, one each in Mumbai Offshore, Assam shelf and Cauvery basin and three in East Coast Deep Water," the release said.
Besides, gas finds in Mahanadi basin and Krishna Godavari offshore were also reported.
During 2006-07, accretion to ONGC was 65.56 million tons of oil plus oil equivalent gas reserve as against the target of 52.5 million tons of oil plus oil equivalent gas.
Incidentally, the reserve accretion for the 10th plan (2002-07) target have also been over-achieved.
ONGC said the entire insurance claim against platform in Mumbai High fields that was gutted in July 2005 fire has been fully realised to the extent of 386 million dollars.
The company also confirmed making a gas discovery in the Farsi offshore block in Iran, where ONGC Videsh Ltd, the overseas arm of ONGC, is operator with 40 per cent interest. Indian Oil Corp holds another 40 per cent and the remaining 20 per cent is with Oil India.
The consortium has completed four well commitments. "These wells have resulted in discovery of both oil and gas... three are oil wells and a gas well."
ONGC completed four mega hi-tech engineering projects in the Arabian Sea (Mumbai offshore) recently. The combined expenditure on the projects is Rs 2750 crore.
The four Wells Platforms Project-I - comprising of design and engineering of four offshore platforms, 3 in Mumbai High and 1 in Bassein & Satellite Asset of ONGC, has been completed in a record time of just 16 months at an expenditure of Rs 1,000.5 crore.
Another four well platform at Neelam and Heera fields was completed at an expenditure of around Rs 865.2 crore.
The second phase of pipeline replacement project (Rs 485 crore), for replacing the in-field pipelines of Mumbai high and Neelam and Heera fields has been completed ahead of schedule.
Besides, the 36-inch diameter Uran-Trombay- Jawahardweep Oil Pipeline Project (Rs 399.3 crore) was commissioned on April 1, 2007.
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