ONGC bucks global trend with record gas output


ONGC bucks global trend with record gas output
Once oil prices began sliding in 2014, explorers around the world scrambled to cut costs by rolling back investment plans and shedding jobs. While global upstream funding fell a quarter off its $800-billion peak over the next two years, two companies continued to drill and pump money into new projects – Russian giant Rosneft and India’s flagship explorer ONGC.

Kremlin-backed Rosneft enjoyed the benefit of low production cost, a large domestic base for oilfield services and the safety net of mostly rouble-denominated payments. ONGC had no such comfort but it made up by contracting for new fields and expansion projects of existing ones at bargain prices.

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The strategy is paying off now, with the company’s natural gas production hitting an all-time high of 70 mcmd (million cubic meters per day) this month, marking more than 6% year-on-year growth rate against global average of 3-4%. Gas sales also hit record level at 56 mcmd, with captive consumption accounting for the rest.  Read More

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