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ONGC gains after subsidiary's Brazilian project enters commercialization stage

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Oil and Natural Gas Corporation (ONGC) rose 1.44% to Rs 165.95 after ONGC Videsh entered the development stage with the declaration of commerciality (DoC) in its Brazil offshore project BM-SEAL-4.

ONGC Videsh is the wholly owned subsidiary and overseas arm of Oil and Natural Gas Corporation (ONGC).

ONGC Videsh had registered a major gas discovery in 2019 in its deep offshore block BM-SEAL-4, Brazil, located in the Sergipe Alagoas Basin. Petrobras is the Operator of the block with 75% Participating Interest (PI) and in which partner ONGC Videsh holds 25% PI.

ONGC Videsh, after detailed evaluation, has now entered into the development stage with the submission of declaration of commerciality (DoC) for the block BM-SEAL-4.

The block development module of Petrobras envisages the installation of a shared FPSO and a gas pipeline.

The name suggested to the Brazilian regulator for the field is Budi. The development module is presently in the contract planning phase and is expected to start production after 2026.

The Consortium plans to continue all operational activities for submission of the Development Plan to the Regulator and meeting the target for the first oil.

ONGC is India's largest integrated oil and gas company. ONGC is 60.41% owned by the Government of India.

The state-run oil major's consolidated net profit surged 328.81% to Rs 18055.01 crore on 45.93% rise in net sales to Rs 122029.47 crore in Q2 FY22 over Q2 FY21.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, January 24 2022. 11:01 IST