Production to go up after 10 years of flat growth: ONGC

Bangalore: After flat production growth in the past decade, exploration and production (E&P) major Oil & Natural Gas Corporation’s (ONGC) oil and gas output is now expected to go up following significantly higher reserve accretion, reports PTI quoting its chairman and managing director RS Sharma.

He said ONGC production had been flat in the last ten years based on the discoveries it had made but last year, the reserve accretion has been the highest in the last 20 years.

“Our oil production, after a ten-year flat growth, is projected to increase by about three million tonnes (annually) in the next two to three years and gas production from 62 million cubic metres per day is expected to cross 100 million cubic metres per day in the next five to six years,” he said.

He noted that in the industry that ONGC operates, it takes five-seven years for the discoveries to materialise into production.

Mr Sharma said ONGC's follow-on public offer (FPO) is slated for the January-March quarter when 5% stake would be divested. When 10% was divested in the initial public offer in 2004, the government was able to collect Rs10,500 crore.

The 5% divestment in early 2011 would fetch “much more than ten per cent collection in 2004.”

On reports of ONGC mulling a stock-split, he said the company is waiting to hear from the government.

“Once we hear (from the government), we will deliver,” he said on the margins of Confederation of Indian Industry (CII) organised three-day national quality summit which commenced here.

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