ONGC to invest Rs17,700 crore in Gujarat

In order to intensify production, Oil & Natural Gas Corporation (ONGC) will invest nearly US $4 billion in Gujarat in the next three to four years, a senior official of the company said.

"We will invest close to Rs18,000 crore-Rs17,700 crore to be precise, in Gujarat in the coming three to four years. The investments will be made to scale up the operations at our Ahmedabad, Mehsana and Ankleshwar assets, and Dahej and Hazira plants," ONGC executive director and asset manager of Ahmedabad, Anil Johari said.

According to Johari, the company will make the investments on a major revamp of ONGC's production and processing capacity, laying of pipelines and drilling, among others.

The country's largest producer of crude oil plans to overhaul the company's operations by investing over Rs8,100 crore which would cover 90 installations, 200 km of pipeline and 65 tanks. Consequently, it will spend Rs2,575 crore at Hazira for the extraction of value added products, enhancing gas processing capacity, and laying a naphtha line to Dahej.

ONGC will also spend close to Rs750 crore for C2-C3 extraction at its upcoming plant at the Dahej SEZ, and a further Rs700 crore for development of its Cambay blocks.

The state-owned company will allocate around Rs670 crore for laying 500 km pipelines and 350 km of flow lines, and a further Rs100 crore for well stimulation services. It will also spend Rs285 crore for 15 installations. Among other plans, ONGC will bring in additional Rs2,500 crore for development drilling, Rs500 crore for drill-site construction, and around Rs1,500 crore for installation related works.