Half of ONGC projects face inordinate delays.

Almost half of ONGC's ongoing projects are facing huge delays, undermining the explorer's ability to increase its oil and gas output, shows a review by the petroleum ministry.

The petroleum ministry's monitoring cell reviewed the performance of 41 ongoing projects of ONGC worth Rs. 78,265 crore. Nearly half the projects, amounting to Rs. 41,259 crore, are behind schedule, with delays in some cases being as large as 9-10 years, ministry officials privy to the review told FE.

Development of many of ONGC's small and cluster fields have been delayed. For instance, the company board on April 22, 2003, approved integrated development of the G-1 and GS-15 fields at a cost of Rs. 1,263 crore to be completed by April 2006. This project has now been delayed by 110 months (or 9.16 years) and is expected to be completed only by June 2015, resulting in the required expenditure increasing manifold. The revised project cost is estimated at Rs. 3,437 crore.

FE