ONGC aims to raise output by 15% in two years

Oil and Natural Gas Corp will fast-track its plans to develop new oil and gas fields, so as to raise its sagging output and increase crude oil output by 15 per cent in two years, according to Sudhir Vasudeva, the new head of the nation's biggest energy explorer.

Vasudeva, who was on Tuesday appointed chairman and managing director of the state-owned oil and gas company, believes new and marginal fields can help raise crude oil production by about 15 per cent to 28 million tonnes by 2013.

In his first media interaction after taking over the new job, Vasudeva, 57, said his first focus would be the core activity of exploration.

"We will have no stone unturned in revisiting the exploration strategy," he told the media.

The Dehradun-headquartered company plans to invest Rs 26,000 crore (Rs 260 billion) in developing 34 small and marginal fields, to yield some five million tonnes of crude oil.

"After accounting for the natural decline that has set in ageing and old fields, we will be able to touch 28 million tonnes (per annum) by 2013-14," he said.

Founded in 1956, the company produces about 24.5 million tonnes of oil per annum.

ONGC will prepare a long-term perspective plan, say of 15-20 years, which will lay out the roadmap for the company in the hydrocarbon sector, and also in alternative energies and nuclear power.

Vasudeva said ONGC, a Fortune Global 500 company, ranked 413, would try to advance the 2020 target for 20 million tonnes of oil and oil-equivalent gas production abroad.

Its overseas subsidiary, ONGC Videsh Ltd, already produces 9.5 million tonnes of oil and oil-equivalent gas from 16 overseas assets.

The new boss will have to, for now, shoulder the additional charge of director (offshore) and director (finance) of the company. Vasudeva was director (offshore) before he was elevated as chairman.

The post of director (finance) fell vacant last month when D K Sarraf was appointed managing director of ONGC Videsh Ltd.