ONGC Videsh Ltd (OVL), the overseas oil and gas exploration arm of India’s biggest exploration company Oil and Natural Gas Corp. Ltd(ONGC), is likely to have seen the value of its global oil and gas assets fall over the past year.

While most global oil and gas companies have seen asset values erode due to the sharp fall in oil prices and have taken write-downs, OVL is still to declare the hit to its overseas portfolio. Analysts, however, say that the company would have faced a significant erosion of net asset value (NAV) across assets, some acquired as recently as two years ago. This, in turn, could hurt parent firm ONGC’s plan to increase production from OVL’s assets to 20 million tonnes (mt) of oil equivalent by 2018, more than double of OVL’s current production.

According to the last fiscal year’s numbers, OVL had contributed 21% to ONGC’s overall crude oil output of 26 mt and 14% to ONGC’s overall gas output of 23.52 billion cu. m. OVL currently contributes 26% of ONGC’s total revenues and 20% to total profit after tax. MORE