ONGC NEWS

ONGC sets out aggressive plans to spend about $3.64 billion this financial year as part of government’s drive to reduce oil imports

India’s energy companies are unable to reap dividends worth as much as $400 million from their assets in Russia, a senior oil ministry official said Saturday.

India's state-controlled Oil & Natural Gas Corporation (ONGC) has fired the starting gun on an integrated deep-water development project involving its Cluster 1 region on Block KG-DWN-98/2 in the prolific Krishna Godavari basin.

Rejuvenation of prolific offshore asset part of larger effort to extend the lives of mature fields and reduce dependence on imports

The PRP-8 project could involve involve the laying of almost 230 kilometres of subsea pipelines. India’s state-controlled Oil & Natural Gas Corporation (ONGC) is poised to issue bid documents within weeks for the eighth development phase of its Pipeline Replacement Project (PRP-8), offshore western India.

The government recently imposed a windfall tax on all refiners, including SEZ refineries, on the export of diesel, petrol, and air turbine fuel. Besides, it also imposed a cess on domestic crude output. Analysts said the development is a setback for refiners as they cut FY23 estimates steeply. The tax could potentially be used to offset OMC losses on auto fuel, analysts said. The government has raised export duty on diesel by Rs 13 a litre and on petrol by Rs 6 a litre. It has also raised export duty on ATF by Re 1 per litre. The government said Indian exporters would have to sell 50 per cent of petrol in the domestic market on total shipping bill while they have to sell 30 per cent of diesel in domestic market on total shipping bill. In addition, a cess of Rs 23,250 per tonne was imposed on crude produced domestically.

India is making a big push for oil and gas exploration in Andaman deep water basin with the government planning to fund an ONGC-led drilling campaign and easing clearances, according to people familiar with the matter. Increasing exploration at a break-neck speed is at the center of the government's plan to raise domestic production of oil and gas and cut imports at a time when high fuel prices are tormenting consumers. ONGC NSE -2.40 % plans to launch the drilling campaign in the Andaman offshore after the monsoon and is currently engaged in talks with ExxonMobil and Shell to involve them in the project, they said. ONGC is expected to drill 3-4 wells under the special program funded by the government in the Andaman Sea, with each well costing about Rs 350-400 crore, they added.gt

The government has for a second time in as many years re-advertised the post of chairman of oil and gas regulator PNGRB, which has been lying vacant since December 2020. The oil ministry this week issued an advertisement inviting applications for the post of chairman of the Petroleum and Natural Gas Regulatory Board.

ONGC, Bharat Petroleum, Indian Oil, and Oil India have also held preliminary discussions among themselves to evaluate buying BP's 20% stake in Russian energy giant Rosneft.

ExxonMobil said Wednesday that it has declared force majeure for its Sakhalin-1 operations in Far East Russia after it became too difficult to ship crude oil due to sanctions, reported Reuters.

They plan to spend ₹1,11,000 crore in the current fiscal year. ONGC spent ₹26,621 crore, against its budgeted expenditure of ₹29,800 crore. Its overseas arm, ONGC Videsh, fell far short of its target.

EPC tender for further development of Daman field off the west coast could be tendered in May

Oil Minister Hardeep Singh Puri dedicated the two major projects to the nation at Western offshore on April 23. He was accompanied by chairman Alka Mittal, Director (T&FS) O P Singh and Director (Offshore) Pankaj Kumar.

French multinational contractor SNF Flopam has won new enhanced oil recovery work for India’s state-owned giant Oil & Natural Gas Corporation.

The new technology - Managed Pressure Drilling (MPD) proved to be beneficial in the state because conventional drilling could not be used in these geographical locations.

The brokerage firm Emkay Global Financial Services Ltd has picked up stocks from the oil and gas space with ONGC, Oil India, GAIL, Indian Oil, BPCL, HPCL, Gujarat State Petronet, Petronet LNG, and Gulf Oil Lubricants as its top picks to buy.

From April 1, the government has raised the price of gas for old fields of state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) to USD 6.1 per million British thermal unit for April-September 2022 from USD 2.9.

State-run ONGC on March 31 said it will commercialise the Vindhyan gas basin located in the central Indian state of Madhya Pradesh. This would be the ninth producing basin of India.