India’s Crude Oil, Natural Gas Production Falls Behind Target In May

India produced 3099.48 thousand metric tons (TMT) of crude oil in the month of May 2017, witnessing an increase of 0.73 per cent from 3077.14 TMT produced in the corresponding period a year ago. 

Overall, the cumulative crude oil production during April-May, 2017 was 6038.33 TMT which is 1.16 percent lower than target for the period but 0.07 per cent higher than production during corresponding period of last year.

On similar lines, the natural gas production for the month was 2768.86 million metric standard cubic meters (MMSCM), up by 4.16 percent, compared with May 2016 and the cumulative production for the year April-May 2017 was 5302.50 MMSCM, an increase of 3.04 per cent, according to data published by the oil ministry.

However, both the resources fall behind on their monthly targets by 0.35 per cent and 5.19 per cent, respectively. The overall production of crude oil for April- May 2017 also missed the target by 1.16 per cent and natural gas by 7.13 per cent for the period, despite of increase in the productions.

State owned, ONGC, the largest player in the segment accounting for 57 per cent of the country’s domestic production, produced 1934.59 TMT of crude oil for the month of May, 0.98 per cent higher than the monthly target and 2.52 per cent higher versus May 2016. The oil and gas giant also witnessed its natural gas production increase by 9.52 per cent to 1963.62 MMSCM, compared to the corresponding month a year ago.

Its smaller counterpart, Oil India, also managed to produce 287.91 TMT crude oil, witnessing an increase of 6.08 per cent compared to the production the same month a year back. However, the state-owned company missed its crude oil monthly production target by more than 1.31 per cent primarily due to less than planned contribution from high producing areas like Greater Hapjan, Shalmari, Chandmari and Moran fields on the account of water cut.

The company’s natural gas production also increased for the month of May by 2.41 percent to 244.89 MMSCM as compared to corresponding month a year ago.

While ONGC managed to increase its natural gas production for April- May 2017 by 9.66 percent, Oil India’s cumulative production of natural gas was low by 0.67 percent.

Crude oil and natural gas production by private players as well as by joint ventures fell by more than 4 percent and 13 percent respectively in May 2017 as compared to the corresponding period a year ago primarily because of closure of around 100 wells due to high water cut, poor reservoir performance of Bhagyam feild, natural decline in Ravva, underperformance of wells in KG-OSN, Sohagpur West Coal Bed Methane block and deference in production due to delay in granting the petroleum mining lease (PML).

Naina Sood

BW Reporters Naina Sood is a Economics graduate and has done her post graduation in International economics and Trade. She has deep interests in Indian economy and reforms