Indian ONGC Reports Near 200% Rise in 3Q Profit
Indian ONGC reported profit of rupees 43.52bn ($0.65bn) in 3Q of fiscal 2016-17 as against rupees 14.66bn in the corresponding quarter of last year, a rise of 197%, the company said last week citing higher gross oil realisation as the primary reason.
Gross revenue for the 3Q jumped 9% from a year ago to rupees 200.14bn. For the quarter, while total crude oil output contracted 1.9% to 6.4 million mt from a year ago, net realisation rose 16.8% to $51.8/b.
Gas production jumped 4.4% in the December quarter to 6.025bn m³ on year. The gas price, however, was down almost 35% in 3Q to $2.5/mn Btu from $3.82/mn Btu a year ago.
ONGC will be investing $66.05mn towards development of North West B-173A field to enhance production from its Western Offshore. NW-B-173A field is 5 km northwest from B-173A field which is about 25 km north of Neelam field at an average water depth of 55 m. In April 2014, B-173A-8 exploratory well was drilled in NW B-173A field, which produced oil at the rate of 2,246 b/d on conventional testing from Mukta pay, resulting in declaration of discovery of this field.
The production is expected to commence from February 2019 and peak production rate of 2,870 b/d of oil and 56,350 m3/d of gas is expected to be achieved in 2019-20.
Shardul Sharma