New Delhi, Feb 12 (KNN) Oil and Natural Gas Corp (ONGC) faced a 14 per cent year-on-year decline in profit, totalling Rs 9,536 crore during the October-December quarter.

This dip in profitability was attributed to a combination of reduced production and declining oil and gas prices.

Gross revenue also took a hit, falling by 10 per cent to Rs 34,789 crore during the same period, reported ET.

Crude oil production for ONGC decreased by 3 per cent, amounting to 5.2 million metric tonnes, while gas output witnessed a 4 per cent decline to 5.1 billion cubic meters.

This production drop is not a new challenge for ONGC, as natural decline from mature fields has been a persistent issue over the years.

Additionally, factors such as the shutdown of Panna-Mukta offshore platforms for new pipeline commissioning and pipeline leaks further contributed to the output decline in the fiscal year 2023-24.

However, ONGC remains optimistic about future prospects, stating that the decline in production from matured fields will be offset by upcoming projects currently in various stages of development.

Despite challenges, ONGC realised an average oil price of USD 81.6 per barrel from its legacy fields during the October-December quarter, marking a 6 per cent decrease from the previous year.

In rupee terms, this decline was 5 per cent.

Conversely, the average oil price realised from fields operated by the private sector fell by 10 per cent to USD 76.4 per barrel.

The natural gas price also faced a significant decline, dropping nearly a quarter to USD 6.5 per mmbtu from USD 8.57 in the year-earlier quarter.

This decrease followed the government's implementation of a price ceiling.

Amidst geopolitical tensions and OPEC+ supply curbs, global oil prices remained high in the last quarter of 2023.

However, natural gas prices experienced a notable decrease, with key spot benchmarks for LNG halving within a year.

(KNN Bureau)