Ongc Crude Output To Plunge

This low level of production is expected to continue during the next financial year as well because of the rectification measures being undertaken in many of the ONGC's oilfields.

At the current international crude oil price of around $22 a barrel, this drop in production will mean an additional annual oil import bill of $385 million.

Disclosing this to newsmen after the third annual general meeting of the corporation on Wednesday, ONGC chairman B C Bora said that as against 31.7 million tonnes during 1995-96, the corporation's crude production is expected to be around 29.2 million tonnes in 1996-97, and will remain at the same level even in the next year.

 

Describing the reduction as a "temporary setback", Bora said this was owing to the rehabilitation programme in many of the oilfields.

Bora said with the expected drop in domestic crude production this year, self-sufficiency level would touch 40 per cent in 1996-97 compared with the 45 per cent attained in the last financial year.

Crude production, especially in the western offshore, was also affected by the prolonged south-west monsoon. The only silver lining is the expected commissioning of the Ravva offshore oilfields being developed in the joint sector in the Krishna-Godavari basin by the year-end.

To step up exploration, the corporation has decided to undertake deep drilling up to a depth of over 200 metres in the existing basins by the middle of next year, he said.

Bora said ONGC Videsh is expected to sign a production-sharing contract for natural gas with the national oil company of Vietnam in the next few months. The delay in signing the contract was because the earlier agreement with the Vietnamese company was for sharing crude to be produced from the fields.

The field being developed by the ONGC yielded large quantities of natural gas.

Two oil fields have been identified by the company in Kazakhastan and efforts are on to secure them for exploration on a nomination basis. Negotiations for other exploration blocks are in progress to conclude the business deal, he said. The corporation has also plans to set up LNG terminals in Mangalore and Ennore at a cost of $1 billion.

The proposal is awaiting CCEA clearance, after which global tenders for import of LNG would be finalised, he said.

The corporation declared a dividend of Rs 202 crore for 1995-96 -- 20 per cent on the paid-up capital of Rs 1,426 crore. During the year, ONGC made a contribution of Rs 5,805 crore to the national exchequer in terms of cess, royalty, sales tax, corporate tax, dividend and excise duty.

The net worth of the organisation increased from Rs 3,121 crore on August 31, 1985, to Rs 17,601 crore on March 31, 1996, registering an increase of over 500 per cent during the decade.