ONGC to cut spending, pins hope on friendly govt policy
In the light of the recent slide in global crude prices, state-run oil producer Oil and Natural Gas Corporation (ONGC) is set to “adopt a balanced approach towards capital spending,” and expects the government to take favourable policy measures to boost the company’s performance. “The decline in crude prices has additionally created a need for us to carry out detailed review of activities to look for opportunities to optimise operating costs to preserve liquidity,” the company said in a statement. ONGC is understood to have already started making a detailed strategy “to get over this situation if the crisis prolongs”.
Share price of ONGC on the BSE has fallen 35.5% from Rs 93.30 on March 3 to Rs 60.15 on Monday-end, as global crude oil prices continue to fall with oil producing countries refusing to cut output.
