New Delhi: Minister of state for petroleum and natural gas Jitin Prasada told Rajya Sabha that state owned oil producer Oil and Natural Gas Corporation Ltd (ONGC) plans to invest Rs 26,523 crore in the next fiscal for exploration, production and related ventures.

The minister said that this fund will go into field development and facility upgrade. The oil giant is expected to produce 25.4 million metric tones (MMT) crude oil in the next fiscal and slightly more in the subsequent year. It is also in talks with the Rajasthan government to set up a refinery at Barmer. The state government is now studying the proposal and the prospects and benefits to the state.

In the block falling in Barmer and Jalore districts, 13 oil and 4 gas discoveries have already been made. Cairn Energy India has started commercial production of crude oil from here last year, the minister informed.

Meanwhile, petroleum secretary S Sundareshan and disinvestment secretary Sumit Bose ruled out any stake sale by the government in ONGC now as the oil major’s valuation is affected by the “ambiguous” fuel pricing. Upstream companies like ONGC and OIL subsidise a part of the retail price of fuel, which is fixed by the government. “At the moment there is no proposal (for follow—on public offers of ONGC or IOC),” Sumit Bose said.