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ONGC expects overseas oil output to fall

10 Jun 2009 Evaluate

India’s biggest energy explorer Oil and Natural Gas Corp. Ltd (ONGC) said its overseas crude output will fall this year as fields age, and an increase is likely after new areas in Brazil and Myanmar start production by 2012.

 

ONGC Videsh Ltd, the unlisted overseas arm of the state-owned company, may produce 9% less oil and gas at fields in Russia, Colombia and Sudan in the year to 31 March. Output will probably fall to about 8 million tonnes. That’s equivalent to 23% of ONGC’s total production last year.

 

ONGC bought UK-based Imperial Energy Corp. Plc. last year, India’s biggest overseas energy acquisition after being outbid by Chinese rivals in Nigeria, Kazakhstan and Canada. A plan to quadruple output at Imperial’s Siberian fields has been delayed because oil prices in New York have averaged about $49 a barrel below the August level, when the transaction was first announced.

 

ONGC, supplier of 25% of the country’s crude needs, has been struggling to increase production at three decade-old domestic fields. Output at ONGC’s overseas ventures may increase to 10 million tonnes in two years as fields in Brazil and Myanmar start production. Russia’s Sakhalin-I field and Colombia’s Velasquez fee mineral project, which it operates in partnership with China Petroleum and Chemical Corp., may also produce more after drilling additional wells.

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ONGC Share Price

243.70 -2.45 (-1.00%)
15-Jun-2026 16:59 View Price Chart
Peers
Company Name CMP
ONGC 243.70
Oil India 417.25
Jindal Drilling&Inds 602.15
Deep Industries 503.40
Asian Energy Service 363.00
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