ONGC Videsh Limited, the foreign arm of the Oil and Natural Gas Corporation, is slated to register an over 200 per cent jump in its production in the next three years.

OVL has conveyed to the petroleum ministry that its current production level of 4 million tonnes per annum (mmtpa) of oil and oil equivalent gas (O+OEG) will increase to over 13 mmtpa by 2007.

The company says aggressive acquisition of international exploration and production projects will help it achieve this target.

Moreover, according to OVL, the company has been particularly lucky in striking oil and gas in the properties acquired recently.

In this context, the company cites the example of the recent major gas discovery in an offshore field in Myanmar, where it has a 20 per cent stake. The field is expected to have at least 4 trillion cubic feet (tcf) of gas, which can, upon more exploration, go up to 12 tcf.

OVL has informed the ministry that the annual production in 2007 will be valued at Rs 10,000 crore (Rs 100 billion).

OVL, which had acquired 45 per cent equity in a Vietnamese gas project in 1999, has added many projects to its portfolio since then.

The company has substantial interests in the Sakhalin-1 oil and gas project in Russia and has also acquired 25 per cent stake in the oil producing Greater Nile Oil Project in Sudan.

OVL holds offshore exploration blocks in Iran and Myanmar and onland blocks in Iraq, Libya, Syria and Sudan. The company's net profit during the current fiscal is expected to exceed Rs 1,000 crore (Rs 10 billion). By 2010, it expects the figure to cross Rs 5,000 crore (Rs 50 billion).

OVL managing director Atul Chandra is optimistic about the company's future. In an earlier interview, he had told Business Standard: "The beginning has been made. We have to keep the momentum going and the day is not far when India will be known abroad for OVL."

If Chandra is to be believed, OVL, which currently accounts for 12 per cent of the total oil production of ONGC, is gearing to take this figure to 50 per cent by 2010.

Striking it rich

• ONGC Videsh says aggressive acquisition of international exploration and production projects will help it achieve its target.
• The company is bullish on the recent major gas discovery in an offshore field in Myanmar, where it has a 20 per cent stake.
• OVL's net profit during the current fiscal is expected to exceed Rs 1,000 crore. By 2010, it expects the figure to cross Rs 5,000 crore.