ENA Sectors 2024-02-12 16:41:56 <p><span style="font-size:14px"><strong>New Delhi, Feb 12 (KNN)</strong> 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.</span></p> <p><span style="font-size:14px">This dip in profitability was attributed to a combination of reduced production and declining oil and gas prices.</span></p> <p><span style="font-size:14px">Gross revenue also took a hit, falling by 10 per cent to Rs 34,789 crore during the same period, reported ET.</span></p> <p><span style="font-size:14px">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.</span></p> <p><span style="font-size:14px">This production drop is not a new challenge for ONGC, as natural decline from mature fields has been a persistent issue over the years.</span></p> <p><span style="font-size:14px">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.</span></p> <p><span style="font-size:14px">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.</span></p> <p><span style="font-size:14px">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.</span></p> <p><span style="font-size:14px">In rupee terms, this decline was 5 per cent.</span></p> <p><span style="font-size:14px">Conversely, the average oil price realised from fields operated by the private sector fell by 10 per cent to USD 76.4 per barrel.</span></p> <p><span style="font-size:14px">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.</span></p> <p><span style="font-size:14px">This decrease followed the government's implementation of a price ceiling.</span></p> <p><span style="font-size:14px">Amidst geopolitical tensions and OPEC+ supply curbs, global oil prices remained high in the last quarter of 2023.</span></p> <p><span style="font-size:14px">However, natural gas prices experienced a notable decrease, with key spot benchmarks for LNG halving within a year.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 36668 https://knnindia.co.in/news/newsdetails/sectors/ongc-reports-14-decline-in-profits-amidst-production-and-price-challenges 2024-02-12 16:41:56 knnindia.co.in