ONGC Oil Price

Hi I would like to have information on the effect on the Oil and Natural Gas Corporation’s operational cost of crude Oil prices?

[Pathak]

With oil costs droping to 12-year low, state-claimed Oil and Natural Gas Corp (ONGC) arrangements to cut operational expense by no less than 10 for each penny by organizing exercises and putting off the less critical ones to future.

ONGC arrangements to contract a specialist to recommend cost cuts and controlling working use as Brent tumbling to $31 per barrel nearly equivalents to the organization's expense of generation of each barrels of raw petroleum, sources with direct information of the advancement said.

The organization's expense of delivering each barrel of unrefined petroleum is $36 and in the wake of including degree of profitability and also duties and tolls, the cost comes to $51.52 per barrel.

The droop in oil costs to 12-year low will implies that ONGC pays less eminence and accepting the administration brings down its Rs 4,500 for every tons weight of cess, the expense of creation will come to about $30 per barrel.

This looks at to acknowledgment of $30-32 for each barrel in the present quarter, pretty much squaring off the expense.

There will be no cut in capital consumption in oil and gas ventures thusly speculation will help the organization support or build yield.

ONGC produces 24 million tons of unrefined petroleum every year which is sold at worldwide equality cost. It loses Rs 900 crore in income on each $1 per barrel drop in oil cost.

The organization had arranged a capital use of Rs 36,249 crore in the current monetary and another Rs 34,000-35,000 crore in the following.

ONGC's gross charging for unrefined petroleum it created in the main portion of the current financial was $57.33 per barrel when contrasted with $105.75 for the primary portion of last monetary. The net acknowledgment after endowment payout was $53.72 per barrel.