Monday, April 21, 2014

OVL posts 26% jump in crude oil output

OVL Chairman DK Sarraf 
THE overseas arm of state-owned Oil and Natural Gas Corporation ONGC Videsh Ltd has reported a 26- percent jump in crude oil production in 2013-14. However, the recent acquisitions by the oil major offset a natural decline in older fields.
OVL produced 5.491 million tons of crude oil from assets in over...
16 countries in 2013-14 compared to 4.341 million tons in the previous year.
While its fields in South Sudan and Syria were closed due to political unrest, the acquisition of a three-percent interest in an Azerbaijan oil field and an additional 12 percent stake in a Brazilian field led to the spike in production.
A media report said OVL's South Sudan properties, which produced 45,000 barrels per day, has been shut since December, while its 70,000-80,000 bpd Syrian oil fields have not produced any oil for two years.
OVL's natural gas production, however, fell two percent to 2.869 billion cubic meters from 2.919 bcm in 2012-13.
Gas output from the A1-A3 offshore blocks in Myanmar started in July and the fields currently produce 8.5 million standard cubic meters of gas a day, the report said adding that peak output of 14.5 mmscmd is likely by the year end. OVL has a 17 percent share in the fields.
The company is targeting 20 million tons of oil and oil equivalent gas production by 2018 and 60 million tons by 2030. OVL produced 7.26 million tons of oil and oil equivalent gas in 2012-13, which grew 15 percent in 2013-14 to 8.36 million tons of oil and oil equivalent gas.
During 2013-14, OVL raised its stake in the producing BC-10 block in Brazil to 27 percent from 15 percent at a cost of $529 million.
OVL also acquired a 16 percent stake in the giant Rovuma Area-1 gas block in Mozambique for $ 4.125 billion.
The reserves at the lower end of the band in Area-1 are 15 times more than the re-stated reserves in Reliance Industries'Reliance Industries eastern offshore KG-D6 block. In February, OVL and Oil India Ltd jointly acquired two Bangladesh shallow-water exploration blocks -- SS09 and SS04.
Last year, OVL was awarded two onshore exploratory blocks -- B-2 (Zebyutaung-Nandaw) and EP-3 (Thegon-Shwegu) in Myanmar. Block B-2, with an area of 16,995 sq kms, is located in Northern Myanmar, bordering Manipur state in India, and Block EP-3, covering 1,650 sq kms, is located in Central Myanmar.
ONGC Videsh Ltd, a Miniratna CPSE under the administrative control of the ministry of petroleum and natural gas. The primary business of OVL is to prospect for oil and gas acreages outside India, including exploration, development and production of oil and gas. OVL owns participating interests in 32 oil and gas assets in 16 countries and contributes to 12 percent and seven percent of oil and natural gas production of India respectively. In terms of reserves and production, OVL is the second largest petroleum company of India, next only to its parent ONGC.

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