Sunday, August 14 2005 19:38 Hrs (IST) - World Time -

Dehradun: President APJ Abdul Kalam today (Aug 14, 2005) set an ambitious target for ONGC to raise its output to 50 million tonnes within the next decade and asked the state-run firm to diversify into renewable energy sources.

Speaking at the beginning of golden jubilee celebrations of ONGC, the President also asked the PSU (Public Sector Unit) oil corporation to contribute 50 per cent of the country's needs in the next 50 years.

He said the country's oil and gas requirements are continuously increasing with its economic growth and is around 114 million tonnes per annum at present, the import component of which amounts to be over Rs 1,20,000 crore.

ONGC's production is also required to increase to keep pace with this demand, the President said.

"I understand that ONGC is embarking on deep water exploration and increasing the recovery factor from our wealth which is around 28-29 per cent at present. With all your indigenous resources and international cooperation might, you will be able to reach the target of 50 million tons within the next decade," he said.

"I believe ONGC has to aim at providing to the nation at least 50 per cent of its annual oil and gas need (in next 50 years). Since we are dealing with fossil material resources, it may not be possible to meet this requirement fully from conventional oil exploration and extraction alone," the President said.

He said ONGC could do so if it takes the route of renewable energy, apart from its further exploration of deep sea oil resources and enhancement of recovery factor.

ONGC must consider that they are in the broader business of energy and not merely oil and gas exploration, Kalam said.

"This will enable ONGC to enter into renewable energy routes such as bio-fuel production and development of solar energy," he said.

Within the next fifty years, ONGC must aspire to become a global energy giant, he said.

"They (ONGC) should explore jointly with others and be a pioneer in large-scale supplier of energy for making India an energy-independent country," the President said.

For realizing this, ONGC should adopt multiple strategies, he said adding one of the important resources in the East and West Coast is Methane Hydrate deposits, which are expected to be available at a depth ranging from 400-700 meters below the seabed.

Seismic studies have shown high probability of existence of these deposits which can be tapped for producing energy. High-pressure technology will be needed to enhance the gas yield, he said.

In addition, ONGC must involve in renewable energy in a big way, Kalam said adding underground coal gasification is yet another promising area where ONGC can achieve leadership.

"In essence, I would suggest ONGC to give world leadership in management of energy source, exploration of energy sources, diversification of energy sources, technology in underground coal gasification and above all finding new ways of tapping energy wherever it is to meet the ever growing demand of the country," he said.