ONGC To Start Oil Production From USD 5 Bn Deep-Water Project, Share Up 30% YTD

State-controlled Oil and Natural Gas Corporation (ONGC) will kick off oil production from its much-delayed flagship deepsea project in Krishna Godavari basin in Bay of Bengal this month, helping reverse years of decline in output, a senior company official said.

"We plan to start producing from the Cluster-2 project in KG-DWN-98/2 block this month and slowly ramp up," ONGC Director (Production) Pankaj Kumar told PTI here.

A floating production unit, called FPSO, which will be used to produce oil, is already in the block. After several missed deadlines, ONGC has told Shapoorji Pallonji Oil & Gas (SPOG) that its floating production, storage and offloading vessel (FPSO) Armada Sterling-V should prepare to receive the first oil this month, added the PTI report.

ONGC Declares Interim Dividend For FY 2023-24: According to the company's BSE filing issued on November 10, 2023, "Board has approved interim dividend of 115%, i.e. Rs 5.75 on each equity share of Rs 5. The total payout on this account will be Rs 7,234 Crore. The Record date for distribution of dividend has been fixed for 21 November 2023 which has been intimated to the stock exchanges."

ONGC Q2 Result: The large cap oil and gas sector company announced its revenue from operations at Rs 1.46 lakh crore, down 12.9% for the quarter ended September 30, 2023 as against Rs 1.68 lakh crore announced last year, as per its exchange filing. The company stated its total production came down 2.1% to 5.249 million metric tonnes (MMT) for the second quarter from 5.360 MMT in Q2 FY 2023. Oil and Natural Gas Corporation's natural gas production slipped by 2.8% to 5.2 billion cubic meters (BCM) for Q2 as against 5.35 BCM last year.

ONGC Stock Performance & Return: Last trading price of ONGC stock on BSE is Rs 195.75 per share with intraday surge of 1.61%. Its 52-week high price is Rs 197.95 per share and 52-week low price is Rs 132.95 per share, respectively. Its market capitalisation is Rs 2,46, 248.97 crore. Oil and Natural Gas Corporation share offered return of 30% YTD, soared 24% in last 2-years, gained 25% in last 5-years, and rallied 5.83% in last 10-years.

About: Maharatna ONGC is the largest crude oil and natural gas Company in India, contributing around 71 per cent to Indian domestic production. Crude oil is the raw material used by downstream companies like IOC, BPCL, HPCL and MRPL (Last two are subsidiaries of ONGC) to produce petroleum products like Petrol, Diesel, Kerosene, Naphtha, and Cooking Gas LPG.