The board of Oil and Natural Gas Corporation has approved an investment of Rs 5,713 crore (Rs 57.13 billion) for the second phase of redevelopment of the Bombay High in the Western Offshore. It expects to increase the crude oil production to 22 million tonnes a year by 2012 from the current 16 million tonnes.

Western Offshore is a key producing area for ONGC [Get Quote], contributing over 60 per cent of the total crude oil production.

"With current crude prices, the additional produce is valued at Rs 53,000 crore ($13.25 billion). This will improve oil recovery to about 35 per cent by 2030," said a statement from ONGC.

The government-owned company decided to go for a second phase of redevelopment following the success of the first redevelopment programme launched in October 2001, which reversed the declining production trend in the ageing field.

"It is planned to use the lessons of phase-I redevelopment and continue the induction of cutting-edge technology to rejuvenate the field of Western Offshore," the statement added.

ONGC has come in for severe criticism for low oil recovery in its fields. The average oil recovery for the company is 28 per cent, which is far below the 45 to 50 per cent managed by the best upstream companies. The company has identified enhanced oil recovery as one of its key focus areas for improvement.