Home » Fall in output hits earnings of OVL

Fall in output hits earnings of OVL

Fall in output hits earnings of OVL

According to a company statement, for the Apr-Sep 2012 period, the net profit and sales of ONGC Videsh (OVL) declined 39 percent and 33.2 percent respectively because of a fall in output in some assets.

While its net profit declined to Rs 1,649 crore from Rs 2,717 crore in the same period a year ago, sales declined to Rs 8,279 crore.

The overseas arm of state-owned Oil and Natural Gas Corp (ONGC) witnessed a fall in output in nations like Sudan and Syria. The firm, which has 31 oil and gas assets in 15 countries, said crude oil production dropped 32.9 percent to 2.276 million tonne from 3.39 million tonne in H1 of 2011-12. Natural gas output was up 4.8 percent to 1.212 billion cubic meter.

OVL said oil production from its fields in Sudan had been shut since January following a split of the African nation. Also, current geo-political situation in Syria including EU sanctions and the resulting restrictions have made operations “difficult” since December 2011.

By 2017-18, the company aims to produce 20 million tonne of oil and oil equivalent and 60 million tonne by 2029-30.

OVL said post secession of South Sudan from Sudan with effect from July 9, 2011, the company’s oil Blocks 1,2 and 4 straddle between the two countries and Block 5A is now entirely in South Sudan.

Leave a Reply