India State Oil Firms May Invest $15 Billion Next Year
India’s state-run oil and gas companies plan to raise their total investment by about a fifth in the next financial year to raise crude output, expand refineries and produce cleaner fuels, a senior government official said Friday.
The companies are likely to end the current fiscal year through March with a total investment of 580.95 billion rupees and plan to spend 694.58 billion rupees ($15 billion) next year, the official, who didn’t wish to be identified, told Dow Jones Newswires.
Indian energy companies are increasing investment to meet rising demand for fuels in the world’s second-fastest growing major economy. India’s top policy think tank, the Planning Commission, has forecast the economy to grow at 9% between April 2007 and March 2012.
The federal government aims to raise spending in the sector to assure energy security through higher local output and investment in oil equity abroad. The South Asian nation currently imports more than three-fourths of its crude oil needs.
Oil & Natural Gas Corp., India’s largest explorer, is likely to raise capital expenditure next year by about 7% to 265.23 billion rupees as it speeds up drilling at exploratory blocks, including the Cauvery and western offshore basins, the official said.
ONGC–which contributed about three quarters of India’s crude oil output and two-thirds of natural gas production in the last fiscal year–hasn’t kept up with output targets as its fields are ageing and it hasn’t brought any new blocks into production for many years.
