India-based Oil & Natural Gas Corp. (ONGC) anticipates spending nearly $9 billion on production for offshore oil and natural gas resources, Bloomberg reported. Director N.K. Verma told Bloomberg output could start by 2016, saying new reserves are slated for development. India currently imports 80 percent of its crude oil needs. The company has three existing wells located in the Bay of Bengal, off the east coast of India.
"Indications are these discoveries have good quantities of oil," Verma said. "We're trying to do our best to raise production and address the criticism that we haven't been finding enough new hydrocarbons."
Verma said the government will receive a gas and oil production plan for these discoveries within 2014. The $9 billion will be spent over a decade.
ONGC recently struck a new oil reserve in the KG Basin with production expected to begin in fiscal 2016 to 2017, Indian financial news site Money Control reported. Verma told CNBC-TV18 that the field could yield an output between 1 and 1.5 million metric tons of crude oil.