Defying a global trend, India’s flagship national oil company ONGC did not cut its capital spending on exploration and development after oil prices collapsed between 2014-16, Moody’s Investors Service said today.
In a report, Moody’s said while ONGC did not reduce capital spending on oil and gas exploration and production, it halted the pace of its international expansion as a response to the oil price slumping from USD 140 per barrel to under USD 40.
“National oil companies (NOCs) worldwide strived to cut costs, adjust growth strategies or sell assets since the 2014-16 collapse in oil prices, just as oil companies without state sponsors have done,” the rating agency said in a report.
The decline in oil prices did not significantly affect Oil and Natural Gas Corporation (ONGC), which saw its consolidated EBITDA for 2015-16 decline by only 16 percent compared to the same period three years earlier. Read More