ONGC profits up 50 per cent; allotted 15 per cent stake in Nigerian field

21 June 2005

New Delhi: ONGC has announced that it has been assigned a mere 15 per cent stake in 'block 2' of Nigeria's Sao Tome joint development zone.

Subir Raha, chairman, ONGC, said that ONGC's overseas arm, ONGC Videsh, and its local partner, Equator Exploration, have been allotted a mere 15 per cent stake in the Nigerian field though the combine emerged as the highest bidder. US-based Devon Energy and Pioneer have 65 per cent equity in the block, A & Harmattan has 10 per cent, Foby Engineering and Momo Oil and Gas 5 per cent each.

With this acquisition ONGC now has stakes in 15 oil exploration properties in 13 countries.

ONGC Videsh's production rose 31 per cent to 5.06 million tonnes of oil and gas in 2004-05 as net profit jumped 78 per cent to Rs761 crore on a revenue of Rs6,026 crore.

Production from Sudan's Greater Nile field, ONGS Videsh's only oil-producing asset as of now, rose from 263,000 barrels per day in March 2003 to 295,000 barrels per day in March 2005. Gas production from Vietnam was up 158 per cent to 1,349 billion cubic meters.

ONGC posted its highest-ever profit of Rs12,983 crore in 2004-05 — a 50 per cent increase over the previous year. Raha said ONGC registered a 50 per cent rise in profit despite increased subsidy burden of Rs4,104 crore, a jump of 53 per cent from the previous fiscal, and under-recovery on account of selling gas at government-controlled prices.

ONGC has also maintained its trend of increasing oil production, which stood at 28.13 million tonne against 27.71mt previously. Gas production, however, declined to 25.23 billion cubic metres from 25.70bcm.