is the outcome of our intensified explor-
recovery factor of fifteen major fields from
range of variations is really substantial. It
atory efforts. For any E&P company, Re-
28% in 2000-01 to 33% in 2008-09,”
has currently come down to around USD
serve Replacement Ratio (RRR; a ration
said Sharma. With a vision to emerge as
75/bbl after attaining a record high of
of reserve accretion to production) is the
‘Energy Company’, ONGC has been ag-
USD 147/bbl in July last year and then
key benchmark of its performance and
gressively exploring new sources of en-
collapsing to the USD 33 per bbl in
indicator of its business sustainability.
ergy, like Coal Bed Methane (CBM),
Dec’08. However, costs of equipment and
Since last five years we maintained RRR
Underground Coal Gasification (UCG),
services have not come down to that ex-
of more than one; last year being 1.44,
Shale Gas, etc. Meaningful leads have
tent. While ONGC has not been able to
which is a significant achievement for
been established in Coal Bed Methane
get significant price advantage on account
any global E&P company,” said Sharma.
(CBM) exploration and the pilot project
of increase in crude oil prices due to
at Parbatpur, Jharkhand is expected to
sharing of subsidy, ONGC has to procure
Future Plans
commence production soon. “Looking
the services at market rates. While total
Sustaining energy supplies remains
beyond hydrocarbons for green and sus-
increase in cost of equipment and ser-
the first priority for ONGC and that will
tainable energy solutions are yet another
vices is borne by ONGC, only meager part
come about not only from the existing
priority for ONGC. ONGC Energy Centre
of the increase in crude price accrues to
assets, but primarily from exploiting all
has taken up a number of research
ONGC-affecting the profitability and in
the difficult plays like in deepwater, ul-
projects in the area of new and alternate
turn its capacity for future challenging
tra-deepwater etc. ONGC is also pursu-
energy. After commissioning of a 50 MW
E&P projects. Minority investors, which
ing expeditious development of discover-
Wind Power Plant in Gujarat, ONGC is
include Foreign Institutional Investors,
ies.
now planning to set up a Photo Voltaic
have been expressing serious concerns
“The second priority would be to arrest
Solar farm of 10 MW. ONGC is also pur-
on the subsidy sharing mechanism and
the decline in the matured fields which
suing Uranium exploration in association
ONGC’s increasing contribution to meet
have entered into natural decline phase.
with Uranium Corporation of India Lim-
the under-recoveries of OMCs. ONGC
ONGC has systematically been implement-
ited (UCIL),” said Sharma.
would like to have a transparent mecha-
ing Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR) projects
Challenges
in 15 major fields since 2001. The IOR/
Says Sharma, “International prices of
EOR schemes have helped in improving
crude oil have turned volatile and the
26
nism of sharing of under-recovery.”
DECEMBER - 2009