ONGC to pump crude from $5 billion project off Andhra coast

NEW DELHI: State-run ONGC will start pumping crude from its $5-billion project off the Andhra coast in the next fortnight, bringing on stream the delayed project that is pivotal for reversing the company’s declining fortunes as a result of maturing fields.

Output from the KG-DWN 98/2, the second deep-sea project in the east coast after RIL-BP’s KG-D6 acreage, will give a fillip to domestic oil production at a time when dependence on imports is rising on the back of expanding oil demand.

The additional volumes will raise the company’s profitability, director (finance) Pamila Jaspal said after lower production due to natural decline from existing fields contributed to a 20% drop in Q2 profit.