“We plan to increase our investments in India to US$1 billion in two to three years’ time with an additional investment of US$250 million in the Panna-Mukta and Tapti fields and another US$250 million in setting up co-generation facilities,” BG India CEO Frank Chapman said.
Chapman’s announcement follows a plan by the three partners in the Panna-Mukta and Tapti fields – BG, Oil & Natural Gas Corp (ONGC) and Reliance Industries – to spend US$750 million to raise gas production at Panna-Mukta from 135 million metric standard cubic feet a day (MMSCFD) to 200 MMSCFD and to raise gas production from 250 MMSCFD to 450 MMSCFD at Tapti.
“Theoretically there is more potential depending on how gas production will affect oil production," Chapman said. "The matter is currently under discussion [and] our efforts are directed towards maintaining the plateau of production.”
Although the main focus of the three firms is to develop LNG markets in the US and Europe, BG admits it also intends to meet domestic gas demand in India.
“What we are trying to do is to develop the market and pull in the supplies,” said Chapman.
ONGC holds a 40% stake in the three fields. The balance is equally shared by BG and Reliance.