State-run ONGC will start production of gas from its lone field with proven reserves of this variety of hydrocarbon in the Krishna Godavari basin off the east coast in December this year and expects to reach the peak production level in 2022. “We are getting encouraging results with new oil and gas discoveries (in KG basin),” an ONGC executive said. The executive added that the initial production from the field KG-DWN-98/2 will be 4-5 mscmd with peak rate being 17 mscmd.
Top executives of Oil and Natural Gas Corporation (ONGC) and bureaucrats within the government have successfully thwarted an attempt by the Niti Aayog to privatise the country’s largest oil and gas producing fields, including those in the famed Bombay High and Vasai East.
Though ONGC is digging appraisal wells at the Deen Dayal West (DDW) field it acquired from Gujarat State Petroleum Corporation (GSPC), it is still to submit the field development plan (FDP) and has sought time till December 2019 from the empowered committee of secretaries (ECS). ONGC was initially supposed to submit the FDP by February 2018.
According to a source, while the ECS will allow the time to ONGC, given huge investments are involved, it will have to pay a penalty. ECS comprises secretaries of finance, petroleum and law.
Shares of Oil and Natural Gas Corporation (ONGC) were trading higher for the fifth straight session, rising 2 per cent to Rs 146 apiece on the BSE in intra-day trade after the company reported a strong December 2018 (Q3FY19) result.
In past one week, the stock of state-owned oil exploration firm outperformed the market by gaining 11 per cent against 0.30 per cent decline in the S&P BSE Sensex. It recovered 13 per cent from its 52-week low of Rs 129 touched on February 14, 2019, on the BSE in intra-day trade.
In a boost to firms like ONGC and Reliance Industries, the government is likely to raise the price of domestically produced natural gas by over 10 per cent to over USD 3.72 per million British thermal unit with effect from April 1, sources in know of the development said. The price of gas produced from difficult fields will rise to about USD 9 per million British thermal unit (mmBtu) from current USD 7.67, they said. This will be the fourth straight increase in gas prices.
Recently, two major oil PSUs (public sector undertakings) - Indian Oil Corporation (IOC) and Oil and Natural Gas Corporation (ONGC) - announced their respective share buyback programmes as part of the government's divestment drive.
IOC plans to buyback 297.7 million shares at a price of Rs 149 apiece, amounting to Rs 44.35 billion. This apart, the company has also declared an interim dividend of 67.5 per cent i.e. Rs 6.75 per equity share of face value of Rs 10 each for the financial year 2018-19.
Oil minister Dharmendra Pradhan Monday said the government will allow state-owned ONGC and Oil India to induct private and foreign partners in oilfields to raise output and also give special incentive to make their discoveries in difficult areas viable.
Speaking at the launch of second bid round for 14 exploration blocks under open acreage licensing policy, Pradhan said Oil and Natural Gas Corp (ONGC) and OIL will have the freedom to decide which of their currently producing fields they want to retain and in the ones where they would like to induct a partner.
When ONGC acquired Gujarat government-owned GSPC’s then-languishing Deen Dayal-West (DDW) block in the Krishna Godawari basin in late 2016, apparently under a government directive, many thought it could add to the explorer’s portfolio of under-performing assets. However, encouraged by higher prices for difficult fields which these assets are entitled to, ONGC has ramped up production from the block
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