ONGC reported in-line sales volumes, with realisation at $43.2\/bbl. Crude oil production has reached last year\u2019s levels, while gas is still marginally lower YoY due to lower offtake by customers on account of Covid-19. For FY21\/FY22, the company has guided for oil production at ~22.5mmt\/23mmt (flat YoY), while gas production is set to increase to ~23bcm\/25bcm (+8% YoY), although lower than earlier estimates. Covid has caused further delay in KG-DWN-98\/2, with the peak production target to be achieved over 2023-24.<\/p>\n
Production is likely to rise to 2.5- 3mmscmd by May\u201921 (which currently produces ~0.3mmscmd), reaching ~3.5mmscmd\/8.5mmscmd in FY22\/FY23. Our oil production assumption remains unchanged, while we lower our gas assumptions to ~25bcm\/28bcm for FY22\/FY23 (from ~27bcm\/31bcm). We believe oil prices would not sustain above $60\/bbl in the near term as OPEC+ production quotas are normalised (from -8.2mnbopd). IEA, in its Feb\u201921 OMR, expects 1QCY21 oil demand to fall ~1mnbopd from 4QCY20. We further expect APM price revision of 25-30% from 1st Apr\u201921 on current gas price of $1.79\/mmbtu.<\/p>\n","protected":false},"excerpt":{"rendered":"
ONGC reported in-line sales volumes, with realisation at $43.2\/bbl. Crude oil production has reached last year\u2019s levels, while gas is still marginally lower YoY due to lower offtake by customers on account of Covid-19. For FY21\/FY22, the company has guided for oil production at ~22.5mmt\/23mmt (flat YoY), while gas production is set to increase to ~23bcm\/25bcm (+8% YoY), although lower than earlier estimates. Covid has caused further delay in KG-DWN-98\/2, with the peak production target to be achieved over 2023-24. Production is likely to rise to 2.5- 3mmscmd by May\u201921 (which currently produces ~0.3mmscmd), reaching ~3.5mmscmd\/8.5mmscmd in FY22\/FY23. Our oil […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,195,138],"tags":[],"class_list":["post-400852","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-oil-gas-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/400852","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=400852"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/400852\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=400852"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=400852"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=400852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}