A fall in production was also witnessed as the company stopped investing in the block, awaiting clarity on the appropriate technology for production from the tight reservoir. There are a total of 17 fields, of this only five are main producing ones.
The output from the fields is far below what we had earlier projected. We are not able to increase production as envisaged due to various reasons. Yes, there has been a constant decline from the field, an official said, requesting anonymity.
ONGC, in its perspective plan 2030, envisaged to double its present production to around 130 million tonnes by FY30, which would require production growth of 4-5% per annum. OVL share of production contribution is targeted to 20 mt of oil by FY18 and 60 mt by FY30.
But with ageing domestic fields and non-fruitful acquisition in fields abroad, analysts feels the targets seems unachievable. Most of the analysts also cut earnings estimates with the company scaling down crude oil production estimate and paying higher subsidies to oil marketing companies.
Analysts have also raised doubts on OVLs recent acquisition of 8.4% stake of ConocoPhillipss in a Kazakhstan oilfield, as the production from the field will remain low.