Also, crude oil from its Russian asset would come to India by next year, ONGC chairman and managing director RS Sharma said on Monday.
NEW DELHI: Oil and Natural Gas Corporation (ONGC) on Monday said its second oilfield in Sudan has begun production. Also, crude oil from its Russian asset would come to India by next year, ONGC chairman and managing director R S Sharma said on Monday.
The company’s overseas arm — ONGC Videsh Ltd (OVL) with 21 projects in 13 countries — would be its new growth area, said Sharma.
Sudan’s Block 5A began oil production on Monday, OVL managing director R S Butola told reporters. “Currently, Tharjhat field in Block 5A is producing 38,000 barrels per day (bdp) but we hope to stabilise production to 40,000 bpd very soon. Mala field in the same block would come to production in 2007 with an output of 10,000 bpd, which would rise to 20,000 bpd by 2008. Our share from 5A output would be 15,000 bpd,” he said.
OVL has a 25% stake in Sudan’s Greater Nile Oil Project (Block 1, 2 and 4), which produces 280,000 barrels per day.
On the domestic front, Sharma lamented the under-recoveries incurred on sale of natural gas. The company gets just $1.75 for every million British thermal unit (mmbtu) of gas, which is just 25% of the market price. Gas from the ONGC, Reliance and BG operated Panna, Mukta and Tapti fetches $4.75.
Besides, ONGC’s subsidy burden on account of sale of petroleum products jumped 191% to Rs 11,956 crore from Rs 4,104 crore in 2004-05 in 2005-06. ONGC subsidises domestic LPG and kerosene by giving discounts on crude oil it sells to refiners. As a result, the company realised $42.34 a barrel from sale of crude oil after giving discount of about $17.32, affecting the subsidy payout by Rs 7,210 crore.
ONGC reported its highest ever net profit of Rs 14,431 crore for 2005-06 as against Rs 12,983 crore a year ago. The board declared a final dividend of 450%, translating into a payout of Rs 5,704 crore. Of this, the government gets Rs 4,758 crore. Its turnover increased 4.3% to Rs 50,556 crore from Rs 48,442 crore a year ago.
Sharma said the company would be spending Rs 12,000 crore this year as against Rs 11,421 crore last year.
While OVL’s net profit increased 16% to Rs 901 crore on a 36% jump in revenues to Rs 8,171 crore in 2005-06, ONGC’s refining subsidiary Mangalore Refinery and Petrochemicals Ltd reported a 58% drop in net profit at Rs 372 crore on account of discounts it was forced to give to oil marketing companies.
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