OVL's consolidate revenue for FY10 dips 16%

ONGC Videsh Ltd. (OVL), the wholly-owned subsidiary of Oil and Natural Gas Corporation Ltd.(ONGC) on Saturday announced that it had produced 8.870 million tons of oil and oil-equivalent gas (MMTOE) during 2009-10, up 1.2 per cent from 8.776 MMTOE in 2008-09.

This once again records OVL’s highest ever oil and gas production from its overseas assets, the only Indian E and P company.

OVL’s oil and gas production in 2009-10 averaged to 171,000 barrels of oil equivalent per day (boepd) comprising of 130,000 bopd of oil production and 41,000 boepd of gas production from its 9 oil and gas producing projects spread in Sudan, Russia, Vietnam, Syria, Brazil and Colombia.

Project BC-10 in Brazil is the latest oil producing project and oil production commenced in the project during 2009-10.

OVL’s gross consolidated revenue of Rs. 15,181 crore during the financial year 2009-10, slipped by 16 per cent compared to Rs. 18,144 crore achieved in 2008-09, mainly due to the fall in the international oil prices in the later half of the financial year.

It may be noted that the average crude oil price during 2009-10 was $69.58 per barrel of oil as against $84.45 per barrel during 2008-09. The effect on fall in oil prices prevailed also on the profit after tax, which stood at Rs. 2,090 crore lower by 25 per cent over Rs.2,807 crore achieved in 2009-10.

The company incorporated as Hydrocarbons India Pvt. Ltd. in 1965, was renamed ONGC Videsh Ltd. (OVL) in 1989.  From being a company with only one overseas property in 2000-2001, the company has anchored credible stakes in 40 oil and gas projects which are in 16 countries.
Currently nine projects have oil and gas production and OVL has a few projects that have oil and gas discoveries and are in development. The oil and gas production in near future in staged to enhance with addition of oil and gas production from these projects.

OVL has presence in Sudan, Nigeria, Russia, Vietnam, Libya, Iran, Cuba, Brazil, Syria, Myanmar, Iraq, Egypt, Columbia, Syria, and Venezuela. OVL is working as partner or joint partner with several national oil companies from Sudan, Nigeria, and Venezuela and with international majors like ExxonMobil, Shell, ENI, Repsol, Total and BP in its acreages abroad.

At close of the financial year 2009-10, the proven reserves of OVL stood at 185.995 MMTOE, which, next to ONGC, is the second largest holding of proven oil and gas reserves by any Indian company.

Speaking on the occasion, R S Sharma, Chairman, OVL, mentioned that with the recently signed contracts in Venezuela for the award of the Carabobo project to OVL, the company has achieved an appreciable recognition in the international arena.

He mentioned that the corporate strategy of this subsidiary of ONGC and the portfolio of its assets built by the OVL team would bring out an even higher performance of the company in the future.