Last Updated :
09 March 2010 at 10:30 IST
ONGC to raise up to $10 bn in a decade: Stock falls
MUMBAI (Commodity Online): India’s largest public sector oil exploration firm, Oil & Natural Gas Corporation Ltd (BOM:500312) slipped on the bourses today on the news that it might go for a borrowing of up to USD 10 billion over the next decade to purchase overseas assets to meet future domestic demand.
Public sector oil explorers have been forced to look abroad as output in local fields has been declining and exploration and exploitation of domestic acreage, for reasons unknown, has been lackluster. ONGC stocks slumped on the Bombay Stock Exchange (BSE) in the morning trades today with a marginal loss of 0.25% to Rs.1098.45.
Explore Commodity Online Mobile ServicesONGC made just 15 new domestic discoveries and acquired only a single oil asset abroad in fiscal 2009-10, as compared to 2008-09 when it announced 28 new domestic discoveries. According to ONGC chairman, RS Sharma, the company was trying to bring new discoveries to production at the earliest and was focusing on quicker commercial exploitation of marginal fields.
On the ramping up the exploration capacities of the existing wells, Sharma mentioned that the company would bring the G-1 field on the east coast, eight B and C series fields on the west coast on stream over the next two years. Cumulatively, these fields are believed to produce about 42 million tonnes of oil and oil equivalent gas over a span of 15 years.
ONGC is putting special efforts to increase the productivity of its existing wells and aging wells by implementing hight-tech improved oil recovery (IOR) and enhanced oil recovery (EOR) schemes. According to statistics, crude production in the first nine months of the present fiscal has dipped to 19.89 million metric tonnes (mmt) as compared to 20.57 mmt in the year-ago period.
ONGC has prepared plans to invest up to USD 30 billion over the next decade to buy developed assets overseas. It has set a target to obtain 20 million metric tonnes of oil and oil-equivalent gas per year, or 402,000 barrels a day, from overseas assets by 2020. Recently, ONGC bought Imperial Energy Plc. for USD 2.1 billion and won a bid last month for a project in Venezuela as part of a consortium.
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