News Detail

News:

State-owned petroleum explorer Oil and Natural Gas Corporation (ONGC) announced it would be implementing 12 projects worth a combined Rs 13,000 Crore by the end of May 2016, seeking to gain from low oilfield services and equipment costs in the current depressed crude oil price scenario.

Source:  Business Standard

SNP Insight:

Acquisition of Russia’s Vankorneft Oil project & submission of USD 10Bn project proposal for Iran’s Farzbad –B gas field bears the testimony of ONGC’s vociferous approach to ramp up production up to 20 Mtpa by 2017. At a global slump in O&G exploration activity, poses the opportunity for cutting the cost & increase the production. Although cut in subsidy burden & deregulation of oil prices bring rays of optimism for upstream major,so company may devise an apt expansion strategy keeping in mind the probability of stiff decline in oil & gas prices.

Source: SNP Infra Research