ONGC drops after oil exploration pact with Mexican oil firm

ONGC lost 0.85% to Rs 408.70 at 9:16 IST on BSE after the company said its wholly-owned subsidiary ONGC Videsh entered into an MoU with Mexico's national oil company Pemex, to cooperate in the hydrocarbon sector in Mexico.

The announcement was made on Saturday, 27 September 2014.

Meanwhile, the S&P BSE Sensex was down 43.68 points or 0.16% at 26,582.64.

On BSE, so far 12,000 shares were traded in the counter as against average daily volume of 4.07 lakh shares in the past two weeks.

The stock hit a high of Rs 413 and a low of Rs 408.60 so far during the day. The stock had hit a 52-week low of Rs 261 on 7 October 2013. The stock had hit a record high of Rs 472 on 9 June 2014.

ONGC's wholly-owned subsidiary ONGC Videsh on Saturday, 27 September 2014 said that it has entered into a memorandum of understanding and cooperation (MoU) with Pemex-Exploration Y Production (PEP), the upstream subsidiary of Pemex, the national oil company of Mexico, to cooperate in the hydrocarbon sector in Mexico.

Under the agreement, the two companies will plan to discuss future cooperation and collaboration in Mexico's upstream sector. The MOU also envisages cooperation in the fields of technology, human resources, research and development (R&D), ONGC said in a statement.

Mexico is the largest crude oil producing country in Latin America.

ONGC's net profit rose 19.1% to Rs 4781.79 crore on 13.2% growth in net sales to Rs 21747 crore in Q1 June 2014 over Q1 June 2013.

ONGC is India's largest government-run corporation and produces about 70% of India's crude oil and natural gas.

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