The brand of Oil and Natural Gas Corp’s (ONGC) in Ahmedabad. File
| Photo Credit: REUTERS
The net profit of Oil and Natural Gas Corporation (ONGC) fell over 34% within the June quarter on the decline in oil costs and lower output, the agency stated.
Net profit was ₹10,015 crore in April-June (first quarter of present 2023-24 fiscal 12 months) in contrast with ₹15,206 crore in the identical interval final 12 months, the corporate stated in a press release.
ONGC, India’s prime crude oil and pure gasoline producer, earned $76.49 for each barrel of crude oil it produced and bought from nomination fields in opposition to a net realisation of $108.55 per barrel final 12 months.
Oil costs globally had risen sharply in April-June 2022 after Russia’s invasion of Ukraine led to uncertainties over provide and demand.
Crude oil pumped out of the bottom beneath and seabed is refined in refineries to supply petrol, diesel and different fuels. Natural gasoline is used to generate electrical energy in addition to to burn kitchen stoves and run vehicles (CNG).
Gross income fell 20% to ₹33,814 crore.
ONGC stated crude oil manufacturing was 3.2% lower at 4.6 million tonnes, whereas gasoline output fell 3.3% to five.04 billion cubic meters.
“The reduction in ONGC’s production in Q1 FY 2023-24 was due to shutdown in Panna-Mukta offshore platforms for commissioning of new crude oil pipeline to modernise its evacuation facilities, post taking over from JV partners, cyclone Biparjoy (June 2023) disrupting offshore and onshore production and crude oil wells in southern India had to be stopped as a refinery there stopped receiving oil, following a leakage in their pipeline,” the assertion stated.
To counter the decline in manufacturing from among the matured and marginal fields, ONGC is implementing properly interventions and advancing new well-drilling actions.
“The current decline in production is temporary. The same will be compensated in upcoming quarters with commencement of additional production from new projects; especially by crude oil production commencement from KG-98/2 in Q3 2023-24,” it added.
ONGC stated it made 4 oil and gasoline discoveries within the first quarter. Of these, three are new prospects in offshore areas and one is an onland discover. The discoveries embrace a discover within the Mid and South Tapti area in Mumbai offshore. “This prospect discovery has been named ‘Pukhraj’,” the assertion stated.
In a Krishna Godavari basin onland block, a improvement properly hit a brand new hydrocarbon bearing pay zone.
