High production, price zooms OVL’s profit nearly 10 times at ₹1,1384 cr

ONGC Videsh Ltd, a wholly-owned subsidiary of ONGC, has reported a ₹1,384 crore consolidated net profit for the first half of financial year 2018-19. This is over 9.7 times the ₹142 crore consolidated net profit reported by the company in the same six month period of the preceding financial year.

A company statement said that the gain was mainly due to higher production, higher prices and exchange variation.

Total income from operations stood at ₹7,579 crore during the period under review up from ₹4,756 crore in the same period of the financial year 2017-2018. “Standalone and consolidated production of crude oil and oil equivalent of gas together during first half of financial year 2018-2019 was higher by 8.8 per cent and 1.4 per cent respectively, as compared to the first half of financial year 2017-18 mainly due to increased production from Sakhalin-1, Russia and addition of production of Lower Zakum Concession, UAE acquired in March 2018,” the company said.

The company said that production from the Greater Pioneer Operating Company (GPOC), the South Sudan project of ONGC Videsh has resumed after prolonged shutdown since December 2013. The Minister of Petroleum, Republic of South Sudan and the Minister of Petroleum and Gas, Republic of Sudan in the presence of the Ministry and related companies’ officials on August 25, 2018, officially declared pumping of first crude oil from Toma’s south field of South Sudan to Heglig in Sudan. Presently, the field is flowing crude oil at around 15,000 barrels a day.

ONGC Videsh said that it has entered into a Cooperation Agreement with UzbekNefteGaz on September 28, 2018 to jointly assess the potential opportunities in exploration blocks, under-development assets and producing fields/blocks located within the Republic of Uzbekistan.