OVL half-yearly net profit grows over 14.4 percent

ONGC Videsh (OVL), the overseas arm of state-run explorer Oil and Natural Gas Corp (ONGC), Wednesday posted a 14.37 percent increase in net profit during the first half of the current fiscal on the back of increased oil and gas output.

OVl recorded a profit of Rs.1,886 crore in the April-September period (H1) as compared to Rs.1,649 crore during the same period of the previous fiscal.

Revenues rose 22.5 percent to Rs.10,060 crore during the period in question.

Crude oil production in H1 rose 19 percent to 2.707 million tonnes and gas output increased 16.34 percent to 1.41 billion cubic metres.

Among the H1 highlights the company said natural gas production from the A3 offshore block in Myanmar started in July and the field currently produces 4.6 million standard cubic metres of gas a day (mscmd). OVL has 17 percent share in the fields.

"Production is expected to reach 5.67 mscmd in December 2013 and will reach peak level of 14.50 mscmd in Q1 of 2015," a statement said.

It was awarded two onshore exploratory blocks -- B-2 (Zebyutaung-Nandaw) and EP-3 (Thegon-Shwegu) in Myanmar.

Block B-2, with an area of 16,995 sq km, is located in Northern Myanmar, bordering the state of Manipur in India, and Block EP-3, covering 1,650 sq km, is located in Central Myanmar.

OVL also won exploratory blocks SS09 and SS04 in the Bangladesh Offshore Bidding Round 2012.

The company raised its stake in the producing BC-10 block in Brazil to 27 percent from 15 per cent at a cost of $529 million.

The Company has signed two definitive agreements -- one with Anadarko and the other (jointly with Oil India Limited) with Videocon for acquiring 10 percent participating interest each in the Rovuma Area 1 Offshore Block in Mozambique.

OVL said production from assets in Syria continued to be affected due to the geo-political situation, including EU sanctions against that country.

The company plans to produce 20 million tonnes of oil and oil equivalent gas from its overseas projects by 2018 and 60 million tonnes of oil and oil equivalent gas by 2030.

OVL has 32 projects in 16 countries, of which 12 are in production, while hydrocarbon discoveries have been made in four. Of the remaining, 14 are in exploration stage and two are pipeline projects.