The domestic production of crude oil fell 3.8% while gas output remained near static in July over the same month a year ago to stand at 2.45 million tonne (MT) and 2,883 million cubic metre (mcm), respectively. Targets have been missed in the production of both the products.  

Data released by the Ministry of Petroleum and Natural gas showed that in July, crude oil production fell from oilfields operated by state-run ONGC by 1.7% to 1.6 MT. Production from fields operated by the private sector fell even sharper by 12.34% to 0.5 MT.

Oil India’s production, however, was higher by 4.12% at 0.26 MT. The government said OIL could have produced more had there been no loss due to miscreant activities in the Main Producing Area (MPA). Less than planned contribution from workover wells also impacted the production.

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ONGC’s production fell mainly because of the 2.74% decline in output in western offshore. Despite fall in production, the western offshore still contributed 70% of ONGC’s total output during the month.

The ministry attributed the decline in ONGC’s production during the month to natural decline in production from Gandhar in Ankleshwar, ceasure of high potential wells in Geleki field in Assam, restriction on drilling activities due to socio-political issues in the Cauvery, among others.

The government had set the target of 2.6 MT crude oil production for the month. In July last year, 2.54 MT crude oil was produced by all sources put together.

Cumulative crude oil production during April-July 2022 was 9.91 MT, slightly lower than 9.96 MT recorded during the corresponding period of last year, the government data showed.    

Natural gas production remained largely unchanged at 2,883 million cubic metre (mcm) in July but was 3.4% higher during April-July at 11,436 mcm. ONGC’s gas output was down 4% in July due to less production in the western offshore.

“Cumulative natural gas production during April-July 2022 was 11,436 mcm, which is 2.80% lower when compared with target for the period but 3.38% higher than production during corresponding period of last year,” the government said.

The country’s oil refineries processed 10.52% more crude oil at 21.43 MT.