With the fall in crude oil and gas prices, state-run explorer ONGC saw its net profit during April-June FY17 drop by 21% to Rs 4,233 crore against Rs 5,368 crore in the same quarter previous year. The sales of the oil and gas explorer dropped 21.41% to Rs 17,784 crore in Q1 of current fiscal year.
ONGC did not share any oil subsidy burden in the first quarter of FY17. However, its net realisation on crude oil sales dropped to $46.10/barrel during the first quarter of FY17 against $59.08 a barrel in the year-ago period. In rupee term, ONGC got 17.78% lower price at Rs 3,085 per barrel in April-June FY17 against Rs 3,752 a barrel in the corresponding quarter previous year. In the first quarter of FY16, ONGC had forked out Rs 1,096 crore to compensate state-run OMCs – IOC, HPCL and BPCL – for selling fuel below market cost.
In the first quarter of FY17, ONGC’s crude oil output dropped 2% to 6.01 million tonnes and natural gas production went down by 5.55% to 5.494 billion cubic meters.
ONGC said that it has reported seven oil and gas discoveries during April-June FY17. Hydrocarbon was found in an exploratory wells in Golaghat district of Assam Arakan basin while a similar probe led to a gas discovery in South Dahej in Gujarat, the company said in a statement.
In the NELP block CB-ONN-2001/1, oil was found at depth of 1,727 meters and another in Saurastra offshore block MB-OSN-2005/1 yielded a natural gas and condensate reserve, it added.