British Gas Plc on Thursday said it along with the Oil and Natural Gas Corporation and Reliance Industries Ltd will invest $138 million in developing the Panna/Mukta and Tapti oil and gas fields to improve production.

"The government has approved production enhancement projects for the Panna/Mukta oil and gas fields and the Tapti gas field," Nigel Shaw, CEO, BG India, said in New Delhi.

The first phase investment will increase crude output from Panna/Mukta fields by 5,000 barrels per day to over 30,000 barrels per day by the end of 2004. Gas production from Tapti will increase by 2-2.5 million standard cubic metres per day over the current production of around 6 mmscmd.

The enhancement projects involve an infill-drilling programme of up to 18 wells in the Panna/Mukta oil and gas fields and a four-well re-completion drilling programme in the
Tapti gas field. Seven of the 18 wells, and the re-completion wells, are due to be drilled beginning in the first quarter of 2004. The timing of the further 11 wells will be firmed up at a later stage, he said.

In the second phase, beginning end 2004 and lasting 2007, another $450 million will be invested in increasing production from the fields.

"With this investment, Tapti gas field production would rise to close to 13 mmmscmd," he said.

The investment in Panna-Mukta field would result in an incremental oil production of 18.5 million barrels (2.46 million tonnes) and 2.15 billion cubic metres of gas.

The investments will be shared among the partners in proportion to their equity. While ONGC has 40 per cent stake in the fields, BG and RIL have 30 per cent a piece.