Oil and Natural Gas Corporation Ltd hopes to produce 29.04 million tonnes of crude and 25.05 billion cubic metres of of natural gas during the next financial year. The oil and gas major has signed an MoU with the Ministry of Petroleum and Natural Gas in which the production targets for the company have been set, a company release said.
The crude oil production target, as set in the MoU , is 6% higher than the FY-2006-07 target, while the natural gas production target is higher by 14%.
The company has also said that it will undertake third party audit of 350 exploratory wells and form three joint ventures and alliances with international companies.
The MoU is a negotiated agreement betweent a public sector company and the concerned ministry, in which the performance target of the company is set. At the end of the year, the government rates the actual performance of the company against that set out in the MoU.
The MoU concept was introduced in the early nineties to enhance the productivity of public sector undertakings and also to measure the performance of the PSU management in a transparent and objective manner.
Shares of ONGC rose by 0.83% to Rs873.45 on the Bombay Stock Exchange, against a rise of 0.77% in the benchmark sensex on 29 March 2007.