ONGC's cost of oil production double of OIL's expense in 2009-10

 The average cost incurred by Oil and Natural Gas Corporation (ONGC) on production of crude oil in Assam in 2009-10 was $52.51 per barrel, almost double of what sister PSU explorer Oil India Ltd spent on crude production in the state, Parliament was informed. 

ONGC produced 1.191 mn tonnes of crude from its fields in Assam in 2009-10, incurring a cost of $ 52.51 on the production of every barrel of oil, Minister of State for Petroleum and Natural Gas Jitin Prasada told the Rajya Sabha in a written reply. 

In contrast, OIL produced 3.54 mn tonnes of crude at a cost of $27.16 per barrel. 

He said in 2008-09, ONGC produced 1.223 mn tonnes of crude oil at a cost of $ 50.64 per barrel. In comparison, OIL produced 3.432 mn tonnes of crude at an average investment of $ 27.02 per barrel. 

To a separate question, he said 271.1 mn tonnes of oil and 384.9 billion cubic metres of natural gas reserves were accreted in the first three years of the XIth Five-Year Plan (2007-12). 

In the Xth Plan, 425.5 mn tonnes of crude oil and 688 bcm of gas reserves were accreted. 

"During the 10th Plan, Rs 39,439.61 crore has been spent on drilling of exploratory and development wells. During the first three years of the 11th Plan (2007-10), Rs 49,285.89 crore has been spent for the same," he added.

Production to go up after 10-year flat growth: ONGC

After a flat production growth in the past decade, ONGC's oil and gas output is now expected to go up following significantly higher reserve accretion, its Chairman and Managing Director R S Sharma said today. 

He said ONGC production had been flat in the last ten years based on the discoveries it had made but last year, the reserve accretion has been the highest in the last 20 years. 

"Our oil production, after a ten-year flat growth, is projected to increase by about three million tonnes (annually) in the next two-three years and gas production from 62 million cubic metres per day is expected to cross 100 million cubic metres per day in the next five-six years", he said. 

He noted that in the industry that ONGC operates,it takes five-seven years for the discoveries to materialise into production. 

Sharma said ONGC's follow-on public offer is slated for the January-March quarter when five per cent stake would be divested. When ten per cent was divested in the initial public offer in 2004,government was able to collect Rs 10,500 crore. The five per cent divestment in early 2011 would fetch "much more than ten per cent collection in 2004". 

On reports of ONGC mulling stock-split,he said the company is waiting to hear from the Government. 

"Once we hear (from the Government), we will deliver", he said on the margins of CII-organised three-day national quality summit which commenced here.

ONGC climbs to highest ever global ranking

State-owned Oil and Natural Gas Corp (ONGC) has been ranked the world's top oil and gas exploration and production (E&P) firm by global energy research agency Platts , the company said in a statement here. 

ONGC was last year placed at the third position in the pure E&P category, behind Encana of Canada and China's Cnooc. China National Offshore Oil Corporation (CNOOC) was ranked second on the list for 2010. 

"In the pure E&P category, ONGC has achieved the distinction of Numero Uno ranking not only in Asia, but even on the global scale," the statement said. 

In the overall Platts Top 250 Global Energy Company Rankings that rated world's leading oil and gas, power and coal firms, ONGC climbed to the 18th slot from 26th position in 2009 rankings. 

"This is the highest ever ranking of ONGC in the list of Platts Top 250, ahead of global leaders like Cooco Phillips, Statoil, Cnooc, BG and others," ONGC said. 

Under the stewardship of R S Sharma, ONGC has steadily improved its fortunes during the past four years. 

With revenues of $ 22 billion, ONGC reported a profit of $ 4.24 billion in 2009-10, which forms the basis for the Platts rankings. It had assets worth $ 33.37 billion. 

Under Sharma, ONGC has been able to arrest decline in output from its ageing fields through innovative use of technology and has set the floor for reversing the declining trend of the past by fast-track development of new and marginal fields. 

Sharma will retire from the positions of chairman and managing director of ONGC on January 31, 2011, but the initiatives taken under him will see the company's oil production rise to 28 million tonnes in 2013-14, from currently over 25 million tonnes. 

Natural gas production is slated to rise to over 100 million standard cubic meters per day (mmscmd) by 2014-15, from current 58.86 mmscmd. 

Platts also ranked ONGC as the fastest growth company in Asia in the E&P sector. 

The global list headed by ExxonMobil Corp of the US, had billionaire Mukesh Ambani-run Reliance Industriesat the 13th position, Platts said. 

Reliance had assets of $55.94 billion and revenues of $ 43.63 billion. It had a profit of $ 5.24 billion. 

Embattled British energy giant BP Plc was placed second ahead of Gazprom OAO of Russia, Petrobras Brasileiro of Brazil, Total SA of France E.On AG of Germany, Petrochina Co, China Petroleum, Chevron Corp of US and Royal Dutch Shell.