Despite state-owned ONGC likely to keep its capital expenditure budget at R30,000 crore in FY18 this does not include the R8,000 crore it has to pay GSPC if the deal closes its oil output is likely to fall slightly while gas supplies will rise by over 1 billion cubic metres (bcm). This is based on internal estimates made by ONGC for the next financial year.
Apart from being under fire from the Directorate General of Hydrocarbons (DGH), which has been asked to monitor its production especially in the larger fields, ONGC is in the news for its likely takeover of refining-marketing PSU HPCL.
While all oil and gas fields show a declining production profile as they age, what is odd about ONGC’s fall in production oil production has fallen from 26.9 million tonnes in FY12 to 25.9 million tonnes in FY16 is that the oil PSU is reporting a continuous increase in its reserves at the same time. Read More…
Credit By : Financialexpress.com
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