ONGC Ltd’s performance for the quarter ended December bore the impact of lower realization in the oil and gas business as well as in value-added products. Crude oil production and sales, on the other hand, continued to rebound, ever since the easing of lockdown-related restrictions.
ONGC has almost reached last year’s production levels for crude oil from its operated blocks, said the company. However, with crude production from joint ventures still down 16.7% year-on-year, total crude oil production at 5.632 million metric tonnes (mmt) fell by 3.3% year-on-year.
Total gas production, too, declined 5.9% year-on-year. Net oil and gas sales stood in line with our estimate at 5.3 mmt and 4.5 bcm (billion cubic metres) respectively, said analysts at Motilal Oswal Financial Services Ltd (MOFSL). Even as oil sales have more or less recovered, crude oil price realizations from nominated fields at $43.2 a barrel were 27.7% lower year-on-year.
