British oil and gas major BG Group on Thursday said it would double its investment in India to $1 billion for increasing production from the Panna-Mukta and Tapti offshore oil and gas fields.
"We have spent $500 million till now and commit to investing another $500 million in next 3-5 years," BG Group Plc Chief Executive Frank Chapman said.
Bulk of the projected investment would be in development and expansion of Panna-Mukta and Tapti fields, where BG has 30 per cent stake.
"Partners in Panna-Mukta and Tapti will invest $750 million over the next three years to increase gas output from current 180 million standard cubic feet per day to 450 million standard cubic feet per day," he said.
State-owned Oil and Natural Gas Corporation is the largest shareholder in the field with 40 per cent stake while Reliance Industries has remaining 30 per cent.
The joint venture field had lost Rs 1.5 crore (Rs 15 million) a day over the last one year in unrealised production potential due to row among the partners over who would operate the field.
BG, which last week sorted out the wrangle, says it can raise gas from the fields by about one million standard cubic meters per day without any investment.
"We are constrained by not being able to transport the gas to deficit regions of North in absence of access to GAIL's HBJ pipeline network," Chapman, who along with the entire board of BG Group Plc is on a visit to India, said.
BG has offered to supplement the consumers whose gas supplies were cut to increase supplies of CNG to Delhi's transport system from Panna-Mukta and Tapti fields.
"We have not been allowed access to HBJ pipeline (to transport gas from Gujarat to Delhi). Access charges continue to remain unresolved in the absence of a government policy allowing natural gas pipelines access on common carrier principle," Chapman said.
BG had last week agreed to operate Panna-Mukta and Tapti fields through a three-member operator board, chairmanship of which would be rotated on a two-yearly basis.
ONGC will have the first call on the chairmanship of the operator board, which comprises representative from each company. RIL would take over after two years, followed by BG Group.
Chapman said, "We look forward to working closely with our joint venture partners to continue the successful operation of these producing fields."
"The fields and their expansion prospects underpin our commitment to India and form an important element of our strategy in the country," he said. The fields currently produce 1.487 million tonnes of crude oil and 2.917 billion cubic metres and further investments were needed to maintain oil production and expand output from the Tapti gas field.
BG Group chairman Richard Giordano chaired a board meeting of the firm in New Delhi earlier this week.
