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ONGC shuts Mumbai plant

Oil and Natural Gas Corp will shut a key facility at its largest gas field off Mumbai, for a fortnight from March 1, to hook up new units, leading to fall in gas output by 38 per cent. ONGC, which had closed a production complex at the Bassein field in January, will shut the second complex BPA to enable additional gas wells in the South Bassein and Vasai East field to be hooked up to the production system. Company officials said the gas output during the shutdown would fall from 17.72 million standard cubic metres per day (mmscmd) from current 28.78 mmscmd. The shutdown of BPB process complex in January led to fall in gas production from 25.5 mmscmd to 15.5 mmscmd. Officials said the company has invested Rs 2,937 crore in additional development of the South Bassein field and another Rs 1,688 crore in the Vasai East field to avoid the expected decline in production this year onward. Under these two major development projects, two offshore platforms BCPA-2 and BCPB-2 are being installed near the existing process complexes of BPA and BPB at South Bassein field. With the implementation of this project, additional 20.53 billion cubic metre gas and 1.974 million tons additional condensate would accrue. Meanwhile, Essar Oil said thet it will raise $2 billion through issue of securities in domestic and international markets. The firm would issue equity shares, convertible debentures, american depository receipts (ADRs) and foreign currency convertible bonds (FCCBs), among others, it said in a filing to the Bombay Stock Exchange. The proposal was approved by the shareholders during their extra ordinary general meeting (EGM) held here.