ONGC anticipates that its ongoing new projects will yield 5 MMtoe

With its continuing new projects around the nation, the state-owned Oil and Natural Gas Corporation (ONGC) anticipates producing 5 MMtoe (million tons of oil and oil equivalent) in the next years.

The 98/2 field, which is expected to yield around 4 MM toe, is expected to provide the bulk of this output, according to the business. Furthermore, the estimated output for the Daman Upside project is 1.5 MMtoe. Moreover, it is projected that the Jharia and Bokaro coal bed methane projects would increase overall production by around 0.5 MMtoe.

During a conference call with investors, the business said, “Going forward, we expect to produce around 5 million metric tons of oil and oil equivalent from these new projects.”

The 98/2 field, at almost 4 MMtoe, will provide the majority, with Daman Upside contributing about 1.5 MMtoe. Furthermore, it is anticipated that the CBM project in Jharia and Bokaro would contribute around 0.5 MM toe.

Over the course of the next two to three years, the total capital expenditure (CapEx) for these active projects is projected to reach around R60,000 crore. A lifespan gain of around 80 million metric tons of oil equivalent is anticipated from these initiatives.

ONGC effectively started producing First Oil from its deep-water KG-DWN-98/2 Block, which is situated off the coast of the Bay of Bengal, in January 2024. For the third quarter (Q3) of FY24, the ONGC declared a net profit, or profit after taxes, of R9,536 crore.

In comparison to the R11,045 crore generated in the third quarter of FY23, this amounts to a drop of R1,509 crore, or 13.796%.

reduced sales income, mostly as a result of reduced production of natural gas, crude oil, and VAP prices realized as well as the GST restrictions on royalties, was the primary cause of the poor profit.

The business also said that it is in communication with the government about the windfall tax, or SEAD.

“Talking with the government about the windfall tax”

First Oil production was successfully started in January 2024 by the state-owned Oil and Natural Gas Corporation from its deep-water KG-DWN-98/2 Block, which is situated off the coast of the Bay of Bengal. The business also said that it is in communication with the government about the windfall tax, or SEAD. “We intend to persist in our discussions with the government concerning the suitability of SAED and ideally secure a favorable result,” the business said.