Net revenue for Q2FY16 was reported at Rs.2,242 crore, which declined 15 per cent QoQ mainly due to fall in crude prices and increase in discount to Brent for Rajasthan crude. Average Brent prices fell 18 per cent QoQ to $50.5 per barrel driving our average oil realization down by 22 per cent QoQ to $43.7/bbl.
The government has highlighted Oil & Gas (O&G) as a priority sector as part of its Â‘Make in IndiaÂ’ campaign. The focus in O&G will be on Oil Field Services and Equipment (OFS). An interesting model could be Malaysia and Dubai kind of service hubs on the east coast and west coast of the country.
Indiaâ€™s crude oil production rose by 1.6 per cent in August to 3.24 million tonne as higher output from Cairn India operated Rajasthan fields offset the decline at the state oil and gas explorer ONGCâ€™s assets. Cairnâ€™s Rajasthan oilfields produced 542,000 tonne, 1.8 percent more than August 2010. On the other hand, ONGC saw a decline in output by 1.1 percent to 2.03 million tonne.