We are planning to invest Rs. 30,000 crore in FY2017-18: Shashi Shanker, ONGC


ONGC, India’s largest producer of crude oil and natural gas, contributes around 70% of Indian domestic production. ONGC is India’s Top Energy Company and ranks 20th among global energy majors (Platts).It has a distinction of being a company with in-house service capabilities across all areas of Exploration and Production of oil & gas and related oil-field services. ONGC Videsh Limited (OVL), a wholly-owned subsidiary of ONGC, is the biggest Indian multinational in the energy space participating in 36 oil and gas properties across 17 countries.

Newsbarons provides you the highlights of a media interaction, where ONGC CMD Shashi Shanker stated, “The board has approved 35 major projects worth around INR. 92,000 crore that are under implementation.”

NB: Brief us about your Financials?

Shashi Shanker: For the quarter ended 30th September, 2017, the gross Revenue stood at Rs.18,966 Crore, up 3% Q-o-Q, while Net Profit was at Rs. 5,131 Crore, up 3% Q-o-Q. The crude oil production increased by 0.9% on Q-o-Q basis while Natural gas production surged by 7.7% on Q-o-Q basis.

NB: Brief us about the business highlights for the quarter?

Shashi Shanker: We have notified 9 discoveries so far in FY’18 out of which 4 discoveries have been made. Out of the four discoveries, two discoveries each have been made in offshore blocks and onshore blocks.

Shashi Shanker- CMD, ONGC
Shashi Shanker- CMD, ONGC

NB: What is your future outlook?

Shashi Shanker: The crude oil production will increase over 27MMT by FY22 from ongoing and future projects while natural gas production will increase over 42 BCM by FY22 from ongoing and future projects.

NB: What were the new projects approved in FY17?

Shashi Shanker: The board approved 6 projects with an investment of Rs. 7670 crore which includes NW B-173A Development Plan, Development of B-147 Field, Development of BSE-11 Block, 4th Phase Development NBP Field, Development of R-Series Fields including Revival of R-12 (Ratna), Redevelopment of Santhal Field.

The board has also approved 35 major projects worth around Rs. 92,000 crore that are under implementation. About 14 projects are field development projects, 6 projects are IOR/Redevelopment and remaining 15 projects are for creation of infrastructure.

NB: Brief us about your overseas operations?

Shashi Shanker: ONGC Videsh reported highest-ever production of 12.80 MMT. This was mainly due to acquisition of stake in Vankor. Vankor is second largest field by production in Russia which accounts for 4% of Russian production.

NB: There were reports about government to give 60% stake in ONGC, OIL fields to private companies?

Shashi Shanker: We have not heard anything from the government yet.

NB: Comment on your Capex plans?

Shashi Shanker: We are planning to invest Rs. 30,000 crore in FY17-18.