NEW DELHI: Oil and Natural Gas Corp ( ONGC ) aims to spend Rs 29,000 crore in FY2017-18, similar to the capex planned for the current fiscal year, to mostly develop its offshore oil and gas fields.“Though the expenditure would be similar to what we planned for this year, the physical activity would be more next year since the cost of services has fallen,” said a senior ONGC executive. The cost of rigs and many oilfield services have fallen by about 25-30% in two yearssince the crude oil price slumped, benefitting explorers and producers such as ONGC, he said.The capex for the next fiscal year doesn’t include the $1.2 billion, or Rs 8,000 crore, ONGC has to pay for the purchase of Gujarat State Petroleum Corp’s stake in the KG Basin asset, the executive said. ONGC will meet its funding requirement through internal resources, he said.The company is aiming to spend Rs 29,300 crore in FY2016-17. In the first nine months, it has used up Rs 19,000 crore, or about two-thirds of its target, which is at a slower pace than some of its peers that have already exceeded annual targets. Indian oil companies have been on a spending spree this fiscal year with all state oil firms making a combined investment of Rs 78,000 crore in three quarters, about 90% of their annual target, on drilling new wells, building processing platforms, expanding refining capacity and fuel supply networks.Most of the investments planned for the next fiscal year would go into offshore projects off the West and the East coast, the executive said. Daman, Bassein, Vasai East and Gamji off the West coast, and Vasishta and Nagyalanka off the east coast will gobble most funds.A small investment would also go into the development of KGDWN-98/2, the deepwater block in the KG Basin, which will require a large investment in FY2018-19, the executive said. The onshore blocks of ONGC too would receive a small amount.Oil producers need to invest heavily to boost local crude output for a country that imports 82% of its oil needs. The government wants local crude oil output to rise substantially so that imports can be cut to 67% by 2022.