ONGC believes that UD-1 gas discovery in the southern part of its Block KG-DWN-98/2 can produce for 14-15 years with peak of about 20 mmcmd
State-owned Oil and Natural Gas Corp (ONGC) plans to invest Rs15,340 crore (about $2.894 billion) in developing its ultra-deepsea UD-1 gas discovery in the Krishna Godavari basin by FY17.
ONGC believes that UD-1 gas discovery in the southern part of its Block KG-DWN-98/2 can produce for 14-15 years with peak of about 20 million cubic meters per day (mmcmd) lasting for five years, official sources said.
The company detailed the production profile and the likely investment in the revised proposal for declaring the UD-1 find as commercial (called Declaration of Commerciality). Block KG-DWN-98/2 sits next to Reliance Industries' KG-D6 block where drop in reservoir pressure and water/sand ingress has seen output dip by over 35% to just over 39 mmcmd.
UD-1 is the deepest gas discovery ever made in the country and ONGC estimates it may hold 4.257 Trillion cubic feet of inplace gas reserves, source said adding the upstream regulator, the Directorate General of Hydrocarbons (DGH) has accepted the DOC but with lower inplace volumes of 3.938 Tcf.
Of the inplace reserves, ONGC estimates 2.55 Tcf can be recovered while DGH puts the figure at 2.315 Tcf.
Sources said ONGC plans to drill 11 wells to bring the field to production by FY17 with an output of 585 million cubic feet per day (16.5 mmcmd).
The production would rise to 715 mmcfd (20.24 mmcmd) in the second year and stay there for five years. Output from the seventh year would start dipping and it would be 86 mmcfd (2.4 mmcmd) in year 15.
DGH, they said, found the discovery commercial after considering cumulative production of 2.315 Tcf with recovery of 58.5% for 15 years.
It estimated a net present value (NPV) yield for ONGC at about Rs1,066 crore ($200 million) after considering Rs15,985 crore (almost $2.984 billion) of capital investment and another Rs9,430 crore ($1.77 billion) in operating expenses.
ONGC has said Development Plan at this stage of the project remains conceptual and may change based on new data. Further as on date, there is no off-the shelf commercial production technology available with any company in the world to produce gas in such deep waters (2,841 meters), sources said adding ONGC believes that technological solutions would be available in next three years.
The block KG-DWN-98/2 is divided into two - Northern Discovery Area and the Southern Discovery Area. The northern part has nine discoveries - Padmavati, Kanakdurga, N-1, R-1 (Annapurna), E-1, A1, U1, W1 and D-1/KT-1. The southern part holds the UD-1 discovery at a record depth of 2,841 metres.
In the late afternoon, ONGC was trading at around Rs258.55 per share on the Bombay Stock Exchange, 0.62% up from the previous close.
Motorcycle sales jumped 24.97% to 78,721 units in December, last year, against 62,991 units in December 2010
Two-wheeler manufacturer Honda Motorcycle & Scooter India (HMSI) reported a 36.15% growth in sales in December 2011 at 1,91,584 units over the year-ago period.
The company had sold 1,40,719 units in the corresponding month in the previous year, HMSI said in a statement.
Motorcycle sales jumped 24.97% to 78,721 units in December, last year, against 62,991 units in December 2010, it added.
The company reported an increase of 45.20% in scooter sales to 1,12,863 units compared to 77,728 units in December 2010.
In the 2011 calendar year, GM India sold a total of 1,11,510 units compared to 1,10,804 units a year ago
Car maker General Motors India reported an increase of 6.74% in sales for December 2011 at 9,039 units. The company had sold 8,468 units in the same month of the previous year, General Motors India said in a statement.
In December, last year, the company had sold 1,365 Spark hatchbacks, 486 Cruze sedans and 4,796 units of its latest compact car offering Beat, it added. It also sold 191 units of entry-level sedan Aveo, 227 units of mid-sized sedan Optra, 1,927 units of multi-utility vehicle Tavera and 47 units of its Captiva SUV.
"We have been able to sustain the growth primarily due to the encouraging response to Chevrolet Beat. Other carlines like Spark, Cruze and Tavera have also generated substantial volumes for the company," GM India vice president P Balendran said.
In the 2011 calendar year, GM India sold a total of 1,11,510 units compared to 1,10,804 units a year ago. However, unprecedented hikes in interest rates, fuel prices, commodity prices, growing inflation and policy paralysis at the centre have led to negative sentiments in the automobile market, he added. "We expect the market to remain tight for at least a couple of months to come," Balendran said.