ONGC stock advanced more than 4% on Friday and was the top gainer on Sensex. The stock of ONGC was rising after British oil giant BP and energy-rich Azerbaijan extended their sharing deal for the Caucasus nation’s largest oil fields until 2050. The stock of Oil and Natural Gas Corporation rose as much as 4.14% to the day’s high of Rs 166 on BSE today. “This time round, the contract is being signed on better terms for Azerbaijan,” the ex-Soviet nation’s President Ilham Aliyev said during a signing ceremony in the capital, Baku, AFP reported.
ONGC’s gas production will go up to 25 bcf from 23 bcf this year and the company is ramping up gas production to 42 bcf (billion cubic feet) in next 5 years, ET Now reported citing ONGC CEO Dinesh K Sarraf. Oil production from new fields will reflect in numbers from FY19 and the KG gas production will be taking off from Q3 of FY19, Dinesh K Sarraf added.
BP’s share will stand at 30.37% in the consortium that also includes the United States companies such as Chevron (9.56%) and ExxonMobil (6.79%), Japanese Inpex (9.31%) and ITOCHU (3.65%), Norwegian Statoil (7.27%), Turkish TPAO (5.73%), and Indian ONGC Videsh (2.31%).
Azerbaijan’s state energy company SOCAR’s (State Oil Company of Azerbaijan Republic) share in the consortium will rise to 25% under the new deal — up from 11.7% in the current contract, which was due to expire in 2024, Aliyev said, adding that foreign investors will pay Azerbaijan a $3-billion. The new contract secures large investment in Azerbaijan’s oil sector for decades and a one-off bonus of $3.6 billion for the government, a welcome boost to a nation that has struggled with a sharp drop in oil prices in the past three years.
Meanwhile, Sensex and Nifty dipped in the opening on Friday following the Asian shares as most of them fell in early trade after North Korea fired another missile over Japan into the Pacific Ocean today. North Korea launched an intermediate-range missile that flew 3,700 kilometers (2,300 miles), setting off alarms as it flew over Japan to land in the Pacific Ocean. The launch was the latest sign of Pyongyang’s willingness to defy international opinion as it moves closer to building up a military arsenal targeting US forces, Associated Press reported. BSE Sensex lost 34 points to open at 32,207.63 points while NSE Nifty shaved off 24 points to open at 10,062.35 points. The 30-share barometer Sensex lost as much as 101 points to hit a day’s of 32,140.86 points.