Mumbai: India's largest oil producer, Oil and Natural Gas Corporation, will invest Rs120 billion in capital expenditure for the full year to March 2007, Chairman RS Sharma said on Friday, Reuters reports.
"Our capex investment is likely to be Rs 120 billion this year, up from about 114 billion last year," Sharma, speaking on a trip to Mangalore, said.
Of this, the state-run company plans to spend Rs 48 billion on exploration during the financial year.
"There is no slowdown in our upstream operations, it is our bread and butter," Sharma said. ONGC has targeted a 10 per cent increase in its total crude output for the full year to March 2007, from about 500,000 barrels per day in 2005/06.
The company also plans to continue its foray into refining and petrochemicals, Sharma said. "The downstream projects that have been approved by the board will be implemented," he said.
The company said on Thursday it would invest Rs 49 billion to set up a petrochemical complex in Mangalore.
ONGC is expected to own 46 per cent in a new company, which will implement the project. The plant will also use naphtha from ONGC subsidiary Mangalore Refinery and Petrochemicals Ltd.
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