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.
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