ONGC Videsh logs 13.1 pc profit growth in 2013-14 fiscal

ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), today reported a 13.1 per cent jump in 2013-14 net profit on the back of higher output.
Net profit in the fiscal year ending March 31, 2014 rose to Rs 4,445 crore from Rs 3,929 crore in the previous year, company chairman Dinesh K Sarraf told reporters here.
OVL is unlisted arm of the state explorer and does not report quarterly financial numbers.
Crude oil production rose 26.3 per cent to 5,486 million tonnes while natural gas output was 1.6 per cent lower at 2.871 billion cubic metres.

"Oil production was higher due to new production stream from the recently acquired ACG fields in Azerbaijan and higher rate from additional 12 per cent interest in Block BC-10 in Brazil," he said, adding that output also rose because of production from Sudan and resumption of production from South Sudan.
OVL Managing Director S P Garg said the company was aiming to produce 3.6 per cent more oil and gas during the current fiscal at 8.66 million tonnes of oil and oil equivalent gas. In the previous fiscal year, 8.36 million tonnes oil and gas was produced.

While its fields in South Sudan and Syria were shut for geopolitical reasons, the acquisition of a 3 per cent interest in an Azerbaijan oil field and an additional 12 per cent stake in a Brazilian field led to the rise in production.

OVL's South Sudan properties, which produced 45,000 barrels per day, has been shut since December. Its 70,000 to 80,000 bpd Syrian oil fields have not produced any oil for two years due to the geopolitical situation, including EU sanctions against that country.
The company is targeting 20 million tonnes of oil and oil equivalent gas production by 2018 and 60 million tonnes by 2030.
During 2013-14, OVL raised its stake in the producing BC-10 block in Brazil to 27 per cent from 15 per cent at a cost of USD 529 million.
It acquired a 16 per cent stake in the giant Rovuma Area-1 gas block in Mozambique for USD 4.125 billion.

"After the acquisition, the estimated reserves of Area-1 have increased from 50-70 trillion cubic feet estimated at the time of acquisition to 45-70 tcf now," Garg said.
The reserves at the lower end of the band in Area-1 are 15 times more than the re-stated reserves in Reliance Industries' eastern offshore KG-D6 block.
In February, OVL and Oil India Ltd jointly acquired two Bangladesh shallow-water exploration blocks -- SS09 and SS04.
In October 2013, it was awarded two onshore exploratory blocks -- B-2 (Zebyutaung-Nandaw) and EP-3 (Thegon-Shwegu) in Myanmar.
Block B-2, with an area of 16,995 sq kms, is located in Northern Myanmar, bordering Manipur state in India, and Block EP-3, covering 1,650 sq kms, is located in Central Myanmar.