Friday, October 7, 2022

Crude oil output for April falls by 7%. Know how ONGC, OIL fared

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New Delhi: India’s overall domestic crude oil output went down by 7 percent in the month of April in comparison to the corresponding month a year ago. According to data sourced from the oil ministry, crude oil output for April stood at 2,713 thousand metric tonne (TMT) against the target of 2,720 TMT, primarily due to decline in production from fields operated by Oil and Natural Gas Corporation (ONGC), Oil India and those under production sharing contracts (PSC). The total production in April 2018 stood at 2,914 TMT. The slump in crude oil output, coupled with a 14 percent rise in oil imports, pushed India’s dependence on oil imports to 86.8 percent, as compared to 83.8 percent recorded in the corresponding month a year ago.

ONGC records 5% decline in production

State-run Oil and Natural Gas Corporation’s (ONGC) standalone crude oil production in the month of April went down by 5 percent to settle at 1,691 TMT, as compared to 1,777 TMT produced in the corresponding month last year. The oil producer saw a decline in overall output as oil production fell from fields in Andhra Pradesh, Assam and Western offshore.

Oil India’s output goes down by 3.32%

The country’s second-largest oil and gas producer, Oil India Ltd (OIL) witnessed a 3.32 percent decline in oil output at 265 TMT in April 2019, as compared to 274.33 TMT produced in the corresponding month a year ago. The overall oil production fell primarily due to reduced yields from fields located in Assam.

Private sector and joint ventures record 12% drop

Crude oil output from PSC fields, on the other hand, went down by 12 percent to settle at 756 TMT in April as opposed to 863 TMT produced in the corresponding month a year ago. The ministry attributed the decline in production to reduced yield from almost all PSC fields, including Arunachal Pradesh, Gujarat, Rajasthan, Eastern offshore and Western offshore.

Other reasons for reduction in output

According to the oil ministry, output from PSC fields fell due to crude oil loss from Cairn Oil and Gas’ Mangala field due to delay in upgradation of Mangala Processing Terminal (MPT).  Other reasons for the decline in production can be attributed to delay in drilling, completion, and hooking up online of 45 infill wells by Cairn Oil and Gas and also because of closure of about 100 oil wells due to various reasons such as liquid handling constraint at MPT plant, pump failure, and surface facility limitations, the ministry said.

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