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ONGC & OIL To Keep Focus on E&P Activities Despite Crash in Global Oil Prices: Implications

News:

State-run ONGC and OIL, which make up two thirds of local oil production,are under increased pressure from the government to explore and produce more. ONGC and OIL are going ahead with their planned capital expenditure for 2015-16, company executives said. 

Source: ET

SNP Insight: 

The decison of going ahead with planned capex by ONGC and OIL comes in with the interim pressure from the Government to enhance domestic oil and gas production. However given the lower global oil prices the realization stays above the cost for these companies only. While the other major giants like Cairn are cutting their planned capex, it will be interesting to see how much production can actually these companies foster in near future to meet the demand supply mismatch.

Source: SNP Infra Research