Latest news with #OilandNaturalGasCorporation
Time of India
2 days ago
- Business
- Time of India
ONGC says losing money in Assam, counters protesting employees
India's top oil and gas producer ONGC on Tuesday said it is losing money in Assam because of low production and high employee headcount, as it countered allegations of protesting employees over stoppage of contentious overtime payment. In a statement, Oil and Natural Gas Corporation (ONGC) emphasised that it is hiring locally and is investing heavily in the local community in Assam. Reacting to a a sit-in by members of the ONGC Purbanchal Employees' Association (OPEA) at the Assam Asset in Nazira, the company said the demonstration, while peaceful, has been primarily initiated as a protest against discontinuation of a particular overtime payment, "which was not admissible". "The company is losing money while continuing its operations at Assam for the last few years; one of the reasons being low production and high manpower," it said. It went on to state that the claim of the Union with respect to medical facilities being stopped was "factually incorrect". "The change from direct credit to reimbursement mode has been introduced to curb misuse and malpractice related to a unique welfare facility the company provides to its in-service as well as to its former employees," it said. Despite financial pressures linked to rising production costs in the Assam Asset, ONGC said it continues to maintain a significant presence in the region. The company reiterated "its commitment to Assam through a wide range of Corporate Social Responsibility (CSR) initiatives. These include sustained investment in education, healthcare, infrastructure, and skill development. The Siu-Ka-Pha Hospital at Sivasagar is one such flagship project providing healthcare to the locals." While the current changes may cause short-term friction, they are aimed at ensuring long-term sustainability for ONGC's operations in Assam. The situation remains stable, with dialogue channels open between management and employee representatives.
Time of India
3 days ago
- Business
- Time of India
ONGC's downstream gains to cushion impact of lower oil prices: S&P Global Ratings
State-owned Oil and Natural Gas Corporation 's ( ONGC ) earnings are likely to remain resilient in the current fiscal as income from its refining and marketing operations will rise enough to offset a decline in upstream profitability following a recent fall in oil prices, S&P Global Ratings said Monday. ONGC , it said, is likely to generate enough free cash flow to consolidate its balance sheet and support the rating, but headroom for the 'bbb+' stand-alone credit profile (SACP) remains thin, given recent acquisitions. "We project ONGC's adjusted EBITDA will be broadly stable at Rs 1-1.05 lakh crore in fiscal 2026, assuming Brent oil prices of USD 65 per barrel (bbl) in 2025 and USD 70 per bbl from 2026 onward," it said in a note. The company's funds from operations (FFO)-to-debt ratio will likely improve to more than 40 per cent over the next 12-24 months, in line with our expectation for a 'bbb+' SACP. "We expect the India-based integrated oil and gas company's earnings to remain resilient in fiscal 2026 (ending March 31, 2026). Earnings at the company's refining and marketing operations will rise enough to offset a decline in upstream profitability following a recent fall in oil prices," it said. Expanded refining and marketing margins at ONGC's subsidiary Hindustan Petroleum Corp Ltd ( HPCL ) will support the profitability of the group's downstream operations . This assumes prices at the pump remain largely unchanged amid cheaper feedstock prices. "We expect the higher marketing margins to more than cover continued losses on liquefied petroleum gas (LPG) sales. Moreover, losses on LPG sales will narrow in fiscal 2026 after the government hiked prices on LPG by Rs 50 (about 10 per cent) per cylinder in April," the rating agency said. Rising prices on ONGC's gas sales will temper the impact of lower oil prices in fiscal 2026, it added. "We expect domestic gas prices to increase after India's government raised its cap on gas prices by USD 0.25 per metric million British thermal units (mmbtu) from April 2025. Moreover, gas from new wells will be sold at a higher price." It anticipated about 10 per cent of ONGC's annual gas production will come from new wells, and their pricing will be revised upward to 12 per cent of the preceding month's India crude basket instead of 10 per cent. This translates to about USD 7.8 per mmBtu under our latest oil price assumptions. "We project discretionary cash flows of Rs 10,000-12,000 crore in fiscal 2026. A moderation is likely in capital spending to Rs 50,000-52,000 crore and in shareholder returns to Rs 6,000-8,000 crore amid softer upstream profitability. These amounts were Rs 55,700 crore and Rs 17,000 crore, respectively, in fiscal 2025," S&P said. ONGC's fiscal 2025 results were slightly below expectations. "We estimate the company's FFO-to-debt ratio was slightly below 40 per cent, compared with our expectation of 42-44 per cent". The weaker performance was largely due to an uptick in operating costs and higher debt following recent acquisitions. HPCL is eligible for government compensation when its revenue from selling LPG in the domestic market is lower than the effective cost of marketing it. This compensation would further support its credit ratios when received. However, some delay in compensation is likely because the under-recovery will only be recognised as revenue in the group's income statement after the government gives its approval, the note added.
Time of India
4 days ago
- Business
- Time of India
ONGC's downstream gains to cushion impact of lower oil prices: S&P Global Ratings
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel State-owned Oil and Natural Gas Corporation 's ( ONGC ) earnings are likely to remain resilient in the current fiscal as income from its refining and marketing operations will rise enough to offset a decline in upstream profitability following a recent fall in oil prices, S&P Global Ratings said it said, is likely to generate enough free cash flow to consolidate its balance sheet and support the rating, but headroom for the 'bbb+' stand-alone credit profile (SACP) remains thin, given recent acquisitions."We project ONGC's adjusted EBITDA will be broadly stable at Rs 1-1.05 lakh crore in fiscal 2026, assuming Brent oil prices of USD 65 per barrel (bbl) in 2025 and USD 70 per bbl from 2026 onward," it said in a company's funds from operations (FFO)-to-debt ratio will likely improve to more than 40 per cent over the next 12-24 months, in line with our expectation for a 'bbb+' SACP."We expect the India-based integrated oil and gas company's earnings to remain resilient in fiscal 2026 (ending March 31, 2026). Earnings at the company's refining and marketing operations will rise enough to offset a decline in upstream profitability following a recent fall in oil prices," it refining and marketing margins at ONGC's subsidiary Hindustan Petroleum Corp Ltd ( HPCL ) will support the profitability of the group's downstream operations . This assumes prices at the pump remain largely unchanged amid cheaper feedstock prices."We expect the higher marketing margins to more than cover continued losses on liquefied petroleum gas (LPG) sales. Moreover, losses on LPG sales will narrow in fiscal 2026 after the government hiked prices on LPG by Rs 50 (about 10 per cent) per cylinder in April," the rating agency prices on ONGC's gas sales will temper the impact of lower oil prices in fiscal 2026, it added."We expect domestic gas prices to increase after India's government raised its cap on gas prices by USD 0.25 per metric million British thermal units (mmbtu) from April 2025. Moreover, gas from new wells will be sold at a higher price."It anticipated about 10 per cent of ONGC's annual gas production will come from new wells, and their pricing will be revised upward to 12 per cent of the preceding month's India crude basket instead of 10 per cent. This translates to about USD 7.8 per mmBtu under our latest oil price assumptions."We project discretionary cash flows of Rs 10,000-12,000 crore in fiscal 2026. A moderation is likely in capital spending to Rs 50,000-52,000 crore and in shareholder returns to Rs 6,000-8,000 crore amid softer upstream profitability. These amounts were Rs 55,700 crore and Rs 17,000 crore, respectively, in fiscal 2025," S&P fiscal 2025 results were slightly below expectations. "We estimate the company's FFO-to-debt ratio was slightly below 40 per cent, compared with our expectation of 42-44 per cent".The weaker performance was largely due to an uptick in operating costs and higher debt following recent is eligible for government compensation when its revenue from selling LPG in the domestic market is lower than the effective cost of marketing it. This compensation would further support its credit ratios when received. However, some delay in compensation is likely because the under-recovery will only be recognised as revenue in the group's income statement after the government gives its approval, the note added.
Time of India
26-05-2025
- Business
- Time of India
ONGC-Invenire JV resumes crude oil production at PY-3 offshore field after 13-year hiatus
New Delhi: Crude oil production from the PY-3 offshore field in the Cauvery Basin has resumed after a 13-year shutdown, following the completion of Phase I of the revised Field Development Plan (FDP), a joint statement by Oil and Natural Gas Corporation ( ONGC ), Invenire Petrodyne Limited , and Hardy Exploration & Production (India) Inc. said. The PY-3 Field, located off the east coast of India, was first brought on-stream in 1997 and had been shut since July 2011. The field is being developed under a Joint Venture (JV) comprising ONGC with a 50.63 per cent participating interest, Hardy Exploration with an effective 22.79 per cent, and Invenire Petrodyne holding 26.58 per cent. Phase I of the FDP involved assessment and activation of the subsea well PD3SA, installation of subsea infrastructure, and integration with the Floating Production, Storage, and Offloading (FPSO) vessel Svetah Venetia. The FPSO is being used for processing and separating oil, gas, and water, while the produced oil is stored onboard and offloaded via shuttle tankers to refineries. Phase II of the FDP will include drilling of new wells and use of enhanced oil recovery (EOR) techniques to augment output from the field, which produces light, sweet crude. 'The successful execution of the plan to resume production marks a significant milestone,' the JV said. In a joint statement, Manish Maheshwari, Chairman, Invenire Energy, and Arunangshu Sarkar, Director (Strategy & Corporate Affairs), ONGC, expressed gratitude to the Ministry of Petroleum and Natural Gas (MoPNG) and the Directorate General of Hydrocarbons (DGH) for their support. Maheshwari stated, 'This marks a significant step in Invenire's operational journey and reaffirms the JV's commitment to contributing to India's energy security.' Hardy Exploration & Production (India) Inc., a company of the Invenire Energy Group, is the operator of the PY-3 block.
Time of India
25-05-2025
- Business
- Time of India
ONGC JV restarts production at Cauvery Basin
Oil and Natural Gas Corporation (ONGC) Ltd and its joint venture partners have restarted production from the PY-3 Field in the Cauvery Basin off the eastern coast, 14 years after the field was shut down, the company said in a statement without providing production details. The PY-3 field was brought onstream in 1997 but had been shut since July 2011. A multi-phase revised field development plan was implemented to revive production. Phase I has been completed. Hardy Exploration & Production (India) Inc. is the operator of the block with an effective 22.79% participating interest. ONGC holds a 50.63% participating interest, and Invenire Petrodyne Ltd. holds the remaining 26.58%. - Our Bureau by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo
