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Weak crude putting pressure on ONGC's margins

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Press Trust of India New Delhi
Last Updated : Jan 19 2013 | 11:03 PM IST

Oil and Natural Gas Corporation (ONGC) today said the current crude oil prices has put its margins under pressure and oil price of $75 a barrel were reasonable levels for upstream companies to keep investing.

"Today's prices are not comfortable for us. Margins are under severe pressure," ONGC Chairman R S Sharma told reporters here.

He said the company was constantly reviewing investments but has not put any of its spendings on hold.

"If the current level of prices continue, for the next four-five months we will not have to put investments on hold, but if they stay at these level for longer we will review," Sharma said.

Sharma said the current international crude oil prices were not good for new investments being made in the upstream exploration and production.

"$75 a barrel is a reasonable price for upstream companies to keep investing," he said.

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