KOLKATA (miningweekly.com) - Indian oil and gas exploration and production major ONGC has firmed up investments to the tune of $1.83-billion over the next five years to ramp up its production in the north-eastern state of Assam.

According to an agreement signed with the Assam government, ONGC has committed the investment to 220 wells in the region.

“ONGC is giving impetus to increasing its production base in Assam in line with the government’s ambitious plan of reducing country’s import dependency by 10% by 2022 and also in line with the North Eastern Hydrocarbon Vision 2030,” the company said in a statement.

The Assam projects are part of ONGC’s 'Energy Strategy 2040', according to which the company is hopeful of completing 27 ongoing projects entailing aggregate investments of $12.25-billion over the next four years.

The document lays down targets of cumulative upstream output (local and overseas), almost doubling it from current levels. It sets out plans for 2% and 5% compounded annual growth for domestic and international operations, respectively.

ONGC produces about 70% of domestic crude oil production, or equivalent to 30% of the country’s demand, and about 62% of domestic natural gas production.

Its stepped-up investment commitments followed a meeting between the Finance Ministry and all major government-run companies, wherein the latter were directed to step up funds in new projects to revive growth in the economy, which has been showing signs of deflation over the past several months.

“Boosting capital expenditure by government companies will pump up liquidity in the economy and hence demand,” the Finance Ministry said in a statement.

“It was impressed upon government companies to adhere to expenditure plans and accelerate investment activities,” the statement added.

Officials in the Ministry also stressed the need for release of payments for procurement and other contracts without delay to infuse liquidity in a time bound manner, and speedy resolution of outstanding payments which might have been held up on account of disputes.