BG Group to invest $750 million in India offshore

BG Group Plc. plans to invest $750 million in India over the next four years to double its gas output capacity, according to the company's chief executive, Frank Chapman.

Chapman said the $750 million will be invested in three oil and gas assets, with BG sharing the total investment outlay with its two Indian partners – Oil & Natural Gas Corp. and Reliance Industries Ltd.

BG has a 30% stake in Panna-Mukta oil fields and Tapti gas field offshore Mumbai in southwest India. ONGC has a 40% stake in the fields, with Reliance Industries holding the remaining 30%.

Chapman said gas output at the Panna-Mukta oil fields is around 135 MMcf/d and has a theoretical potential to rise to 200 MMcf/d.

Total output in Panna-Mukta and Tapti will double to 450 MMcf/d after the $750-million investment has been made over the next four years, he said. "About a third of this investment, or $250 million, would be ours," Chapman said. "This will take BG's total investment in India to somewhere in the region of $750 million."

The company is also "continually looking" for more gas projects in India, he said. The company is continuously looking for investment opportunities in India's energy industry, which is seeing rising demand.

01/17/05

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