ONGC gains after clarification

ONGC was up 0.75% to Rs 167.45 at 10:50 IST on the BSE after the company clarified on a news report referring to dispute between ONGC and Cairn India.

The announcement was made after market hours yesterday, 3 July 2019.

Meanwhile, the S&P BSE Sensex was up by 122.96 points, or 0.31% to 39,962.21.

On the BSE, 70,000 shares were traded in the counter so far compared with average daily volumes of 2.92 lakh shares in the past two weeks. The stock had hit a high of Rs 168.80 and a low of Rs 166.25 so far during the day. It hit a 52-week high of Rs 185 on 24 September 2018 and a 52-week low of Rs 127.90 on 14 February 2019.

With reference to news item titled, 'Cairn stops paying royalty on Rajasthan on oil after difference with ONGC.', the state-run oil major clarified that in the pre-NELP exploratory block RJ-ON-90/1, operating under production sharing contract (PSC) regime, there are varied perspectives on various issues between contractors comprising of ONGC (licensee/lessee), Cairn India-operator and Cairn Energy Hydrocarbons. Such issues have risen during implementation of operations of large scale and complexity in this block. Claims and counter claims by the contractors are currently under arbitration which is one of the dispute resolution mechanism provided under the PSC. The matter is sub-judice.

ONGC added that there is no material impact of the news article on the company, the company added.

ONGC's net profit fell 31.6% to Rs 4044.60 crore on a 11.6% rise in the net sales to Rs 26758.46 crore in Q4 March 2019 over Q4 March 2018.

ONGC is an integrated oil and gas company of India.

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