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Business News/ News / India/  India’s crude oil production fell 1.7% YoY in June

Crude oil production in India declined 1.71% on a year-on-year basis in June to 2.43 million tonnes.

In June 2021, the domestic crude production was 2.48 million tonnes.

Crude production last month was 3.01% short of the 2.51 million tonne targets for the month, said a statement from the ministry of petroleum and natural gas. The target for FY23 is 30.84 million tonnes.

ONGC’s production for the month of June stood at 1.62 million tonnes, 0.21% higher than the output in June last year, but it was 1.11% lower than the target for the month.

The statement attributed the shortfall in ONGC’s production to lower condensate generation in Bassein and Tapti Daman area.

Another state-run energy company, Oil India’s production fell 4.32% on a year-on-year basis to 257,170 tonnes. According to the ministry, Oil India’s production declined due to less than planned contribution from work over wells and loss due to “miscreant activities" in the main producing area (MPA).

The fall in crude oil production comes when crude oil prices remain volatile amid the Russia-Ukraine crisis and concerns of a global slowdown.

India has been making efforts to increase its domestic oil production to reduce import dependence. The country imports around 85% of its energy requirements.

In March, a standing committee on petroleum and natural gas recommended that the government review its strategy to increase domestic oil production and take concrete, tangible steps for this. In its report submitted to Parliament, the committee raised concern over the “very minimal" contribution of oilfields under the new exploration licensing policy in the production of crude oil in the country.

Meanwhile, natural gas production increased 1.29% to 2.81 billion cubic metres in June 2022 on a year-on-year basis but was 1.85% less than the monthly target of 2.86 billion cubic metres.

ONGC produced 1.63 billion cubic metres of gas, 2.8% lower than the production of June 2021, while Oil India’s gas production rose 7.22% to 246.75 million cubic metres.

Rituraj Baruah
Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.
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Updated: 22 Jul 2022, 09:45 PM IST
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