ONGC reports strong numbers with quarter profit to Rs 8,264.6 crore

State-run Oil and Natural Gas Corporation Ltd. (ONGC) has announced its results for the second quarter ending on September 30, 2018, with the net profit at Rs. 8,265 crore, up 61.1% quarter on quarter (QoQ).

The company announced that the gas production segment witnessed an increasing trend on year on year basis (YoY). It increased by about 3% in H1'19 compared to H1'18.

However, the gas production is expected to increase further with the completion of Daman Development Project in Western Offshore and further increase from VA-S1 field in Eastern Offshore.

Drilling Rig Sagar Samrat was under conversion into a Mobile Offshore Production Unit (MOPU) for oil production from WO-16 Cluster. The MOPU was scheduled to be commissioned in the beginning of FY'19, which could not be done because of failure on part of the contractor.

The non-availability of MOPU as per schedule led to a loss of oil production of about .35 MMT. ONGC took stringent action to terminate the contract and proactively awarded a new contract recently for commissioning of MOPU by March 2019.

In WO-16 Cluster, all the 15 wells have been completed, which will be put on production once the MOPU is commissioned.

ONGC also notified that 7 discoveries so far in FY'19, out of which 4 new discoveries have been made since last press release in this regard on 30th May, 2018 (2 new prospect and 2 new pool discoveries). Out of the four new discoveries, 3 have been made in onshore blocks while one discovery has been made in offshore block.