Oil and Natural Gas Corporation (ONGC), the country’s biggest energy explorer, recently reported a 6.3% rise in its net profit to Rs. 5,389 crore in the quarter ended 30 September 2010, its highest quarterly profit in two years on rising demand that boosted prices.
ONGC posted a net profit of Rs. 5,090 crore in July-September 2009, the company said in a statement issued here.
Sales rose to Rs. 18,239 crore in the second quarter from Rs. 15,134 crore in the period a year ago. The company said it paid Rs. 3,019 crore towards fuel subsidy in the period under review, compared to Rs. 2,630 crore in the previous corresponding period.
The company sold crude at $62.75 a barrel after giving refiners IOC, BPCL and HPCL a discount to make up for one-third of their loss on sale of fuel below cost. That’s a 11% increase from $56.41 a barrel in the period last year. Gross realisation (pre-subsidy discount) was $79.21 per barrel compared to $70.50 a barrel in the quarter a year ago.
On 1st June, the government allowed ONGC to more than double gas prices, loosening controls as it prepares to sell a stake in the state-owned producer.
This is likely to ease the company’s subsidy burden. Diesel, kerosene and cooking gas prices were also raised. The government may raise about $3 billion from the sale of a 5% stake in ONGC, before March 2011.
The company plans to get the equivalent of 60 million tonnes of oil from overseas fields by 2025, or more than double its output in India. It is also looking at oil opportunities in Brazil, Venezuela and Syria after losing out to China in at least $12.5 billion of contracts in the year ended June.
New oil discovery notified in Cambay Basin, Western Onshore
The exploratory well Matar-12 in Dabka-Sarbhan PEL Block, Western Onshore Basin, drilled to a depth of 1901m, flowed oil from a new reservoir sand @ 355 bopd with gas @ 6,636 m3/d through 6 mm bean from the conventionally tested interval 1793.5-1795.5m in Ankleshwar Formation of middle to upper Eocene age.
The oil is of good quality with an API gravity of 40.9 degree. Three more objects have been identified in the well at shallower levels which are under testing.
This discovery assumes importance since it has established the presence of a new pool in Matar field thereby opening up an additional area of the order of 60 sq. km for further exploration and delineation of this reservoir sand. Matar-12 is the 14th discovery made by ONGC during the current fiscal and 5th in Cambay Basin. The block which was earlier held by a consortium of M/s NIKO Resources & GSPCL under marginal field policy of ONGC and was surrendered after drilling one well.
Subsequently, on taking up this Block, ONGC made the Matar-11 discovery followed by the current one. The exploratory well Matar-12 was drilled to a depth of 1901m, to chase the extension of earlier proven oil bearing sands of Matar-11.
ONGC posted a net profit of Rs. 5,090 crore in July-September 2009, the company said in a statement issued here.
Sales rose to Rs. 18,239 crore in the second quarter from Rs. 15,134 crore in the period a year ago. The company said it paid Rs. 3,019 crore towards fuel subsidy in the period under review, compared to Rs. 2,630 crore in the previous corresponding period.
The company sold crude at $62.75 a barrel after giving refiners IOC, BPCL and HPCL a discount to make up for one-third of their loss on sale of fuel below cost. That’s a 11% increase from $56.41 a barrel in the period last year. Gross realisation (pre-subsidy discount) was $79.21 per barrel compared to $70.50 a barrel in the quarter a year ago.
On 1st June, the government allowed ONGC to more than double gas prices, loosening controls as it prepares to sell a stake in the state-owned producer.
This is likely to ease the company’s subsidy burden. Diesel, kerosene and cooking gas prices were also raised. The government may raise about $3 billion from the sale of a 5% stake in ONGC, before March 2011.
The company plans to get the equivalent of 60 million tonnes of oil from overseas fields by 2025, or more than double its output in India. It is also looking at oil opportunities in Brazil, Venezuela and Syria after losing out to China in at least $12.5 billion of contracts in the year ended June.
New oil discovery notified in Cambay Basin, Western Onshore
The exploratory well Matar-12 in Dabka-Sarbhan PEL Block, Western Onshore Basin, drilled to a depth of 1901m, flowed oil from a new reservoir sand @ 355 bopd with gas @ 6,636 m3/d through 6 mm bean from the conventionally tested interval 1793.5-1795.5m in Ankleshwar Formation of middle to upper Eocene age.
The oil is of good quality with an API gravity of 40.9 degree. Three more objects have been identified in the well at shallower levels which are under testing.
This discovery assumes importance since it has established the presence of a new pool in Matar field thereby opening up an additional area of the order of 60 sq. km for further exploration and delineation of this reservoir sand. Matar-12 is the 14th discovery made by ONGC during the current fiscal and 5th in Cambay Basin. The block which was earlier held by a consortium of M/s NIKO Resources & GSPCL under marginal field policy of ONGC and was surrendered after drilling one well.
Subsequently, on taking up this Block, ONGC made the Matar-11 discovery followed by the current one. The exploratory well Matar-12 was drilled to a depth of 1901m, to chase the extension of earlier proven oil bearing sands of Matar-11.
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