Oil and Natural Gas Corp (ONGC), will commence gas production from its C-series fields on India`s western offshore from December 1.
"The initial production will be around one-million standard cubic metres of gas per day (mmscmd), which will be scaled up to three mmscmd within a year," ONGC`s Chairman, R S Sharma, told reporters here today. He said the price of gas has not been finalised yet, but "will settle the pricing issue with GAIL soon."
C-series gas fields are located on the western offshore adjacent to the Bassein gas field.
ONGC has 45 sweet gas wells and 59 sour gas wells in the region.
The company`s Director, Offshore, Sudhir Vasudeva, said four wells have been drilled and are ready for output.
Reacting to reports that the Government was favouring a 33 per cent hike in gas produced from APM fields, Sharma indicated that he supported it. ONGC incurred not only under-recoveries but also huge losses because of highly concessional gas prices.
"As per the audited accounts of FY 09, we have suffered under-recoveries of Rs 4,700-crore in the gas business as well as losses of Rs 2,400-crore," Sharma said, adding "if gas prices are not increased this year the losses are likely to be even higher," he said.
Thus this production from this facility will have positive effect on the profits only if the Govt agrees for the 33% hike that is proposed by the petroleum ministry.
| NIFTY 
