India’s biggest oil producer, Oil and Natural Gas Corporation (ONGC), says producing every additional barrel of oil has become more difficult, complex and costly in the country and managing costs is vital to securing profitability in the business.
In its annual report for FY19 released recently, the company has stated that higher taxes are impacting its profitability and the cess imposed on domestically produced crude oil is taking a toll on earnings performance. The perpetual uncertainty pertaining to subsidy-sharing during periods of high crude prices adds another element of risk to cashflows.
The impact of US sanctions on Iran is not unknown. India has been a top buyer of both Iranian and Venezuelan oil. ONGC says the recent crises in these countries force domestic buyers to reassess their sourcing destinations Read More
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