ONGC: Ready to break production barriers

Improvement in oil & gas production is the main trigger

A look at Oil and Natural Gas Corporation’s (ONGC’s) 2016-17 annual report gives confidence about the company’s oil and gas production outlook. Production, apart from benign prices, has been a key bane for investors. Now both are on the mend.
 
The latest annual report suggests drilling performance improved significantly in FY17, with 501 wells drilled, the highest-ever. The drilling efficiency, in terms of metres drilled per rig-month, improved 25 per cent. The results are evident now; analysts at Credit Suisse say higher well completions have driven output, with oil & gas production run-rates now up 3/13 per cent versus