How Mumbai Saves Valuable Dollars For India
In the 1960’s and 70’s, an Russian and Indian oil exploration team were involved in a mapping project on the coastal regions of India, it was during that project they had found rich oil resources. When Oil was discovered it became a landmark discovery that was etched in the history of India. An offshore field was established at 176 kilometeres off the coast of Mumbai, India.
Significance of Bombay High
As of 2004, it supplied 14% of India’s oil requirement and accounted for about 38% of all domestic production. A major setback was faced On 27 July 2005 when a major fire destroyed the production platform, leaving at least 22 people dead. The platform accounted for 110,000 barrels per day i.e., 15% of India’s oil production. Crude oil produced from Bombay High is of very good quality as compared to crudes produced in the middle east. The good quality of crude from Mumbai High is due to the presence of high paraffin content compared to middle eastern crude.
50 years after its initial discovery, ONGC made a new discovery at Bombay High which will boost domestic production that had remained stagnated for long. In the previous year before the oil slump, India imported 189.43 million tonnes of crude oil or 83% of the total consumed. The government paid $112 billion for this, which accounted for 27.9% of India’s imports last fiscal year, according to oil ministry’s statistical body Petroleum Planning and Analysis Cell (PPAC). Mumbai high has been at the centre of domestic production that has saved valuable foreign exchange for India. ONGC Videsh, the overseas wing of ONGC with a huge stockpile of cash has been exploring international oil fields to invest, acquire and develop to meet the future energy demands of India.
The Logical Indian takes this occasion to congratulate ONGC and their subsidiaries on their efforts to bring about energy security in India.