Global oil discoveries post a record low; ONGC bags 23 discoveries in FY17

DSIJ Intelligence / 28 Apr 2017

Global oil discoveries post a record low; ONGC bags 23 discoveries in FY17

The discoveries by ONGC contributed to the production of 38,809 tons of oil and 23.78 million standard cubic metres of gas in FY17. The discoveries included wells in Kutch, Saurashtra basin, off Gujarat coast, and the Vindhya basin.

As the global oil discoveries fell significantly in FY17 according to the International Energy Agency (IEA), the Indian PSU- Oil and Natural Gas Corp., (ONGC), stepped-up in the market with 23 oil and gas discoveries through active exploratory operations in FY17.

According to the reports of IEA, oil companies around the world recorded the lowest number of oil project sanctions in 70 years, followed by an extensive cost cut in FY17. The oil discoveries came down to 2.4 billion barrels in the year 2016, against an average of 9 billion barrels per year over the last 15 years. The IMF attributed the drop in growth to the low global oil prices.

However, marching towards the aim of reducing India's oil import dependencies by 10 per cent by 2022, oil discoveries by ONGC grew by 35 per cent in the last fiscal, against 17 discoveries in FY16.

Of all the discoveries, 12 discoveries are likely to contain hydrocarbons; whereas, 11 are new pools-subsurface hydrocarbon accumulation. 13 discoveries were made on land and 10 in the offshore wells. The company registered a success ratio of 37 per cent with 37 hydrocarbon bearing wells.

The discoveries contributed to the production of 38,809 tons of oil and 23.78 million standard cubic metres of gas in FY17. The discoveries included wells in Kutch, Saurashtra basin, off Gujarat coast, and the Vindhya basin. The PSU is working on monetising all the discoveries at the earliest.

ONGC traded at Rs 182.65, up by 1.73 per cent on the BSE at 12:40 hrs IST on April 28, 2017.

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