The state-owned exploration and manufacturing firm’s chairman Arun Kumar Singh advised buyers in a briefing with analysts on Wednesday that the oil and pure fuel company (ONGC) expects fuel manufacturing from new wells to proceed to rise and more and more contribute to improved profitability.
Within the firm’s candidate fuel portfolio for FY2026, new effectively fuel accounted for 17% of manufacturing and 21% of income.
“The larger story for our basket is that new effectively fuel is trending up (by way of volumes),” he stated, including, “This 12 months it is going to be between 25% and 30%.”
He added that the quantity will proceed to extend thereafter.
Additional, the ONGC chairman introduced that fuel manufacturing from new wells has elevated “considerably.”
From April 1 of the present monetary 12 months, it would improve to 9 million normal cubic meters (MSCM), with an additional 3 mscm to be added in new tasks.
New effectively fuel costs are successfully 12% of oil costs, making them extremely worthwhile.
Elaborating on the profitability side, Singh defined, “At an oil worth of $90 (per barrel), you will get (Arai fuel worth) of $10.8 (per MMBtu).”
Total, Singh advised analysts ONGC’s total fuel manufacturing is predicted to develop by 7-8 per cent within the present monetary 12 months.
“Gasoline (manufacturing) needs to be anticipated to extend by 7-8% yearly,” he stated, elaborating that this was as a consequence of completion of effectively drilling within the Daman Upside Growth Undertaking (DUDP), DSF block and KG 98/2.
