Some analysts cast doubt on the guidance given by Oil and Natural Gas Corporation (ONGC) for crude oil production in 2013-14 because the company derives 72 per cent of its output from fields which are 37-52 years old. It may be noted that as an oil field becomes older, output from it declines.
ONGC has provided a crude oil production forecast of 28.6 million tonne (mn t) for 2013-14, compared to a production of 26.12 mn t in 2012-13, an increase of 9.5 per cent year-on-year.
To maintain production from old fields, the company introduced improved oil recovery and enhanced oil recovery schemes. However, reports suggest that the company hasn’t been able to raise production at smaller fields.
It may be noted that the company faced issues in ramping up production in the past, especially at the end of September 2012, when it had to revise downward its guidance of 27.5 mn t for 2012-13 to 27 mn t. The actual output came at 26.1 mn t, according to reports.
Meanwhile, it is learnt that the state-run explorer is in the process of engaging a contractor for supply, fabrication, installation and commissioning of gas metering through fingers at its Ankleshwar asset in Gujarat.
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