ONGC rose 0.89% to Rs 278.35 at 12:45 IST on BSE after the company said its overseas arm, ONGC Videsh and Petroleos De Venezuela S.A. signed agreement for payment of dividend and financing of San Cristobal Project in Venezuela.
The announcement was made during market hours today, 11 November 2016.Meanwhile, the BSE Sensex was down 500 points, or 1.82%, to 27,017.60.
On BSE, so far 94,339 shares were traded in the counter, compared with average daily volume of 6.94 lakh shares in the past one quarter. The stock hit a high of Rs 278.80 and a low of Rs 270.70 so far during the day. The stock hit a 52-week high of Rs 296.80 on 27 October 2016. The stock hit a 52-week low of Rs 188 on 12 February 2016. The stock outperformed the market over the past one month till 10 November 2016, advancing 3.14% compared with 2.01% fall in the Sensex. The scrip also outperformed the market in past one quarter, jumping 20.48% as against Sensex's 0.93% fall.
The large-cap company has equity capital of Rs 4277.75 crore. Face value per share is Rs 5.
ONGC said that ONGC Videsh and Petroleos De Venezuela S.A. (PDVSA) through their relevant subsidiaries signed two definitive agreements for facilitating redevelopment of the San Cristobal joint venture project in Venezuela on 4 November 2016. San Cristobal project is located in the Zuata subdivision of proliferous Hugo Chavez Fria Orinoco Heavy Oil belt, in the Junin Norte Block in eastern Venezuela. The joint venture was incorporated in April 2008 consequent to a memorandum of understanding (MOU) signed in March 2005 at New Delhi to jointly develop oil and gas exploration and production projects in Venezuela. ONGC Videsh has an equity interest of 40% in the project with PDVSA holding the balance 60%.
The agreements provide for mechanism to liquidate ONGC Videsh's outstanding dividends from the project while at the same time, ONGC Videsh needs. to obtain long term financing for the capital investments for implementing the remediation plan of the project. The remediation plan aims to invigorate the field from its current production level of about 18,000 barrels per day (bbl/day) to 27,000 bbl/day by the use of water flooding technique.
Earlier on 1.August 2015 ONGC Videsh and PDVSA had entered into a memorandum of cooperation on training and education under which ONGC Videsh sponsored training for a batch of petroleum engineers from PDVSA in masters programs at the premier petroleum institute of India - Indian School of Mines, Dhanbad. The petroleum engineers upon completion of their specialized course shall be posted in the joint ventures of ONGC Videsh with PDVSA. The ONGC alliance with PDVSA in the upstream sector is strategic in nature and will continue to build and grow with strong cooperation, in order to achieve corporate goals, ONGC added.
ONGC's net profit rose 6.3% to Rs 4974.92 crore on 10.3% decline in net sales to Rs 18286.62 crore in Q2 September 2016 over Q2 September 2015.
ONGC is India's largest oil and gas exploration firm by sales.
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