Riding on the back of surge in global energy prices, state-owned Oil and Natural Gas Corporation (ONGC) should have a solid base to increase investments over the next 12-18 months on account of healthy earnings, S&P Global Ratings said on Friday.
“Improved cash flow continues to support the rating” of ONGC, it said in a statement.
While ONGC gets price equivalent to international oil rates for the crude oil it produces from fields such as Mumbai High, the government fixed price of natural gas based on a formula that factors in global indices.
While oil prices are hovering at multi-year high, gas prices for ONGC too have risen to best ever rate of USD 6.1 per million British thermal unit.
