ONGC not getting benefit of high price: Raha

Oil and Natural Gas Corporation (ONGC) is yet to reap the full benefits of high crude price due to the subsidy burden.

Subir Raha, chairman and managing director of ONGC, said since the firm was giving subsidies to all the other oil companies, it was not able to enjoy the prices which it was being paid for supplying crude to oil companies.

Raha added that the subsidy was $15.5 per barrel in the first quarter.

ONGC, which was now getting $59 per barrel, was not sure of the amount of subsidy it would have to provide in the coming months. "Instructions for the second quarter is yet to come," Raha said.

He said that normal oil production at Mumbai High would begin by March next year.

"Seventy per cent oil production in Mumbai High has been restored, and full production will be resumed by March next year," Raha said.

He added that normal gas production in Mumbai High had been restored with production at over 10.2 million standard cubic metre per day.

ONGC's production was severely disrupted when a major fire broke out at its installation at Mumbai High destroying an oil drilling platform.