Indian company's overseas oil, gas revenue rises to $770 M

Friday, 04 June 2004, 19:30 IST
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NEW DELHI: ONGC Videsh Ltd (OVL), the wholly-owned overseas arm of the Oil and Natural Gas Corporation (ONGC), grossed a revenue of 35.02 billion in 2003-04 -- a rise of 1,400 percent over 2.33 billion in 2002-03. "The first full year profit of the company after tax was 4.29 billion, up 626 percent over 589.9 million in the previous year," said OVL Managing Director R.S. Butola, who assumed office last month, addressing a press conference here Friday. The rise in revenue and profits have come from a higher accretion of reserves and production of oil and gas in blocks overseas in countries like Vietnam and Sudan where OVL holds equity stake. "During 2003-04, OVL produced 3.868 million metric tonnes (MMT) of oil and oil-equivalent gas, up 1,435 percent from 0.252 MMT in the previous year," said Butola. "This year we are planning investments of 75 billion as against 23.42 billion in the previous year including for acquisition of 50 percent stake in an Angola block," he added. British Petroleum is the operator of Block 18 in which OVL is taking a 50 percent stake from Royal Dutch/Shell in Angola. OVL currently has an investment exposure of $3.7 billion in eight countries including Russia, Sudan, Vietnam, Syria, Libya and Myanmar, and is in the process of acquiring its 12th asset in Angola. Of the 11 properties, the gas property in Vietnam and the oil property in Greater Nile Oil Project in Sudan are already in production, fetching it rich returns both in terms of revenue and oil. Last year, out of OVL's share of 3.45 MMT from Greater Nile Project, it supplied 0.9 MMT to the Mangalore Refinery, while the remainder was sold overseas. The high global prices have proved a boon to OVL, which hopes to recoup its investment in the Sudan project in less than four years. "We are now looking at other regions like Africa, the Commonwealth of Independent States (CIS), Far East and in Latin America," said ONGC Chairman and Managing Director Subir Raha. Raha said the company is open to both asset purchase and equity purchase. The company is currently in talks with Venezuela for acquiring equity stake in an exploration block even as it is pursuing opportunities in CIS countries after a couple of failed bids. "By late 2005 or early 2006, we are expecting more oil and gas production coming in from Sakhalin and Angola, once the deal is finalised. By 2008, we are also expecting gas supplies from Myanmar, where the exploration plans will be finalised after completing the appraisals," said Raha. He recalled OVL had set a goal in July 2001 to source 20 MMT of oil and oil equivalent gas a year from overseas assets by 2020. "Given the rapid growth in the past three years, it should be possible to achieve this corporate goal in 2011-12 or may be even earlier," he said. India depends on imports for 70 percent of its oil requirements.
Source: IANS