Mumbai, October 24: Oil and Natural Gas Corp (ONGC), which is under attack from the petroleum ministry and the directorate of hydrocarbons (DGH) for production decline of onshore assets and slow pace monetising marginal fields, on Wednesday indicated that it would to start peak production of 25 million cubic meter per day of gas from its block in the Krishna-Godavari (KG) block off the east coast during 2012-13.

ONGC had estimated an initial output of 12 million cubic metre per day from the KG-DWN-98/2 block though it has revised it after the recent Geological and Geophysical (G&G) appraisal. The company has already submitted its report in this regard to the directorate general of hydrocarbons (DGH). This was announced by the ONGC chairman and managing director RS Sharma and its director (exploration) RK Pande at the press conference here.

ONGC is targeting 2008 for submitting the development. The company has entered into collaboration with Norsk Hydro of Norway and Petrobras of Brazil to bring them as equity partners in the block for the development of the finds.

Sharma said that the company was gearing up for its participation in the bidding process under new exploration licensing policy -VII which is expected to begin from November 5. On production decline of onshore assets, Sharma said that it was an international phenomenon.

However, he added that most of the ONGC’s fields were more than 30 years old and average crude oil production peer well is 53 barrle per day. Twenty of the total 188 onshore fields of ONGC contribute 70% of the reserves and 80.5% of the onshore oil production.