ONGC Videsh Ltd (OVL), the overseas investment arm of ONGC, saw 39.3 per cent drop in its net profit for the first half of the current fiscal versus year ago. This was mainly because the output from its assets had got affected due to global geo-political reasons.
OVL is currently having participation in 31 projects in 15 countries, out of which 10 are producing projects. While the crude oil output in the first half of the current fiscal declined by 32.9 per cent against the same period last year, gas output was up 4.8 per cent.
Post secession of South Sudan from Sudan effective from July 2011, Blocks 1,2 and 4 straddle between the two countries and Block 5A is now entirely in South Sudan. Government of South Sudan ordered shut down of operations in January 2012, the company said in a statement.
Government of South Sudan has now issued order for resumption of crude oil production and petroleum operations, subsequent to the agreement between The Government of the Republic of South Sudan and the Government of the Republic of Sudan.
The company currently has two projects under development namely Carabobo 1, in Venezuela, which is likely to commence early production by end of fiscal 2013 and Blocks A1 & A3 in Myanmar, which are likely to commence production in July, 2013, OVL said.
Production of gas started in Vietnam’s Lan Do field in Block 06.1 from October 7, the company said adding that “This shall create additional production capacity of 0.20 BCM (OVL Share) (17 per cent increase) from the block.”
In September, OVL signed definitive agreements for the acquisition of Hess Corporation’s 2.72 per cent participating interest in the Azeri, Chirag and the Deep Water Portion of Guneshli Fields in the Azerbaijan sector of the Caspian Sea and 2.36 per cent interest in the Baku-Tbilisi-Ceyhan Pipeline for a consideration of $1001 million.
The acquisition would bring 9 per cent additional proved reserves to OVL portfolio and daily oil production of about 19,000 barrels, it said.
OVL continues to pursue its objective of acquiring oil and gas equity abroad for energy security of the country and envisioned to accelerate the acquisition of oil & gas properties overseas to supplement the domestic crude oil and natural gas production.