Gross Revenue for Q1 FY 15 at Rs 22,868 crore
By TN Ashok Economics Editor
New Delhi, Aug 13 : State owned Oil and Natural Gas Corporation Ltd (ONGC) reported a net profit of Rs 5,460 core for the 1st quarter ended June 2015 , which was 14.2% higher than the profit of Rs 4,782 crore recorded in the same period last year.
The ONGC board, which met today and reviewed the financial performance, has approved an investment of Rs 2,818.88 crore to produce incremental oil and gas from the Neelam oilfield in western offshore, ONGC Chairman and Managing Director , Dinesh K Saraf told newsmen today.
The board also approved submission of draft field development plan (FDP for the NELP block KG-DWN 98/2 to the Directorate General of Hydrocarbons (DGH). Investments could be of the order of US$ 6 to 7 billion. There will be no need to hunt for technology partners from outside India as we can do this on our own, Saraf said.
Giving details, Saraf said that while the gross revenue for Q1 of 2015-16 was Rs 22,868 crore , it was Rs 21,917 crore for the previous Q1 of 2014-15 which was a variation of 4.3%. The total gross revenue in FY15 was Rs 83,094 crore.
Net profit was Rs 5,460 crore for Q1 FY 2015-16 against Rs 4,782 crore which was a variation of 14.2% . Total net profit inf FY 15 was Rs 17,733 crore. Under recovery for Q1 2015-16 was Rs 1,133 crore against Rs 13,200 crore in Q1 2014-15 . Total under recoveries in FY 15 was Rs 36,300 crore.
Gross realization per bbl was US$ 63.80 in first quarter of FY 15-16 against US$ 109.48 which was a variation of 41.7%. Gross realization for FY 15 was US$85.28 per bbl. Net realization was US$ 58.92 per bbl against US 47.15 per bbl in the periods mentioned above.
Elaborating on the redevelopment of the Neelam field iin western offshore, Saraf said this comprised drilling 14 new wells and 13 side track wells and installation of facilities. That is one process platform, , two well platforms, and three clamp on facility for wells on existing platforms , associated pipelines , modifications, 21 zone transfers and four water injections conversions.
The facilities under the project are scheduled to be installed by August 2018 and the overall project completion is scheduled for March 2023. The implementation of the project will led to incremental gain of 2.76 MMT crude oil and 4.786 BCM gas by 2034-35.
Talking about its acquisition of oil assets abroad, Saraf said Sakhalin One acquired in Russia was the worlds longest 13,500 meter MD well put on production. It started production on May 04 2015. The well producing around 20,000 barrels per day helped Sakhalin one project to attain peak production of 199,000 barrels per day on May 05, 2015. ONGC videsh has 20% participating interest in the project along with other partners Exxon 30% (operator), SODECO 30% and Rosneft 20%.
On how long price slump in crude would continue in the international market, he said it could be one year or even two to three years. it was difficult to period the time frame. prices would continue to be depressed and prices could behave differently once Iran oil comes in as sanctions are being lifted following the country’s nuclear deal.
