The consortium of Oil and Natural Gas Corporation, BG and Reliance will raise the output from Panna-Mukta-Tapti fields in western offshore of the country by 30 per cent at an investment of Rs 2,192 crore or Rs 21.92 billion ($520 million).
"The gas production will raise from 13 million metric standard cubic meter per day (mmscmd) to 17 mmscmd by August /September," ONGC Executive Director Offshore Sudhir Vasudevan said in New Delhi.
ONGC holds 40 per cent stake in this field while BG and Reliance have 30 per cent each. Earlier, the consortium invested $200 million in increasing oil production from the fields to 42,000 barrels per day from 29,000 barrels
per day.
The joint venture, sells 6 mmscmd from the field to GAIL at $4.75 per Million British Thermal Unit.
Another 4.8 mmscmd is sold to customers like GSPC at $4.08 per MBTU while the remaining, 1.3 mmscmd is sold at $5.7 per MBTU.
"All the gas sales contracts are coming up for renewal in March 2008, we need to see what price we get then," he said.
The consortium was marketing 13 mmscmd gas jointly but the additional volume expected from August/September would be sold by the three companies separately in proportion to their shareholding.
Vasudevan said for ONGC's share of additional gas the company has contracted sale with Torrent Power at $4.75 per MBTU and Rajasthan Vidyut Nigam at $4.6 per MBTU.
Sources said BG is selling its share of gas to its subsidiary Gujarat Gas at $5.57 per MBTU. Reliance may take its share of gas to one of its petrochemical plants.
