ONGC Videsh Ltd (OVL), the overseas investment arm of ONGC, said its output in 2012-13 would see a drop when compared with the previous financial year.
D.K. Sarraf, Managing Director of OVL, said the drop in production would be because of geo-political disturbances in Sudan and Syria.
OVL reported oil and oil equivalent production of 8.7 million tonnes during 2011-12.
“There has been some understanding between North and South Sudan.
“South Sudan has agreed to pay pipeline and crude processing fees. Once the agreement is done, output would start. But, it will take few months,” Sarraf told reporters after the Annual General Meeting of parent, ONGC.
He said that it is difficult to predict because ‘issues are geo-political’.
“We will try to catch up the production from other fields (except Sudan and Syria). New fields such as A1 and A3 in Myanmar are likely to commence production. So, by 2013-14, there may be some ramp up in production,” Sarraf said.
BIDDING FOR ASSETS
OVL in joint venture with Oil India and Indian Oil Corporation have bid for ConocoPhillips’ oil sands project in Canada, reports say on Monday.
When asked, Sarraf denied comment on the issue. OVL is always looking for opportunities but cannot say if we have placed a bid or not.
These are confidential issues. OVL is scouting for both conventional and non-conventional resources, he added.
When asked the reason for lower valuation of non-conventional assets globally, Sarraf said, “It is only a matter of time. These assets will be valuable when gas prices go up. Prices of natural gas are bound to go up.”