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A file photo of an ONGC oilfield in Gujarat (Reuters file)
A file photo of an ONGC oilfield in Gujarat (Reuters file)

ONGC to invest 83,000 crore in 25 projects

  • The cumulative oil and gas gain from these projects is expected to be over 180 million tonnes of oil and oil equivalent gas
  • ONGC produced 24.23 million tonnes of crude oil in 2018-19 and 25.81 billion cubic metres of natural gas from its domestic fields

New Delhi: Oil and Natural Gas Corp (ONGC) is investing around 83,000 crore in 25 major projects to boost oil and gas production, chairman and managing director Shashi Shanker said on Thursday.

Addressing ONGC employees on the 73rd Independence Day, he said: "Fifteen of these projects are currently under execution and will directly contribute to oil and gas production."

"The cumulative oil and gas gain from these projects is expected to be over 180 million tonnes of oil and oil equivalent gas in their life cycle."

The firm produced 24.23 million tonnes of crude oil in 2018-19 and 25.81 billion cubic metres of natural gas from its domestic fields. Another 10.1 million tonnes of oil and 4.736 billion cubic metres of gas was produced from its overseas assets.

ONGC envisages a natural gas output of over 32 billion cubic metres by FY24, Shanker said in his address, which was webcast from the company's headquarters in Dehradun to 30,000-plus employees across 38 work locations of ONGC, according to a company statement.

The directors of ONGC were also present on the occasion.

Pitching for an transformative approach to the energy business, he talked about the ambitious 'Energy Strategy 2040' that will help ONGC achieve "three times revenue distributed across exploration and production, refining, marketing, and other businesses; four times current profit-after-tax (PAT), with 10% contribution from non-oil and gas business; and 5-6 times current market capitalisation.

Speaking on ONGC's business performance, he said the company earned the highest-ever revenue of 1,09,655 crore in 2018-19, a 29% increase over the previous financial year. It also logged a record net profit of 26,716 crore in Q1, an increase of 34%.

ONGC Videsh Ltd, the firm's overseas investment arm, recorded the highest ever production of 14.83 million tonne of oil and oil equivalent gas during FY19.

In downstream refining, its subsidiary MRPL achieved the highest-ever throughput of 16.43 million tonnes with a capacity utilisation of 109.5%.

The newly acquired HPCL (ONGC subsidiary) has also achieved the highest-ever sales volume of 38.7 million tonnes with a domestic sales growth of 4.7% over its historical high.

"The petroleum and natural gas ministry has announced several enabling policies which, I am sure shall bring in positive changes in India's oil and gas sector," he said.

Supporting Prime Minister Narendra Modi's call for a domestic solar revolution, ONGC recently launched a nationwide Solar Chulha Challenge. Shanker said that through this initiative and with the help of IIT-Mumbai, 86 Solar PV cooking stoves were installed at Bacha and Jamthi in Betul district of Madhya Pradesh. The entire village of 74 households has benefitted at Bacha village.

The 73rd Independence Day was celebrated at all the 38 domestic work centres of ONGC as well as its 40 overseas projects in 21 countries.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed

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