India’s Crude Oil production For June Up 0.60% On Back Of ONGC, OIL

India produced 2984.50 thousand metric tonne (TMT) crude oil in the month of June 2017, 0.60 per cent higher, compared to the same month previous year but 2.13 per cent lower than the target. 

Both the state run companies, Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), country’s biggest oil producers, posted high production for the month of June. Compared to June 2016, ONGC produced 1859.48 TMT crude oil, up by 3.13 per cent. 

Similarly, OIL’s output was 278.71 TMT, 5.03 per cent higher than production last year.

Overall, for the June quarter, cumulative production from April-June 2017 rose by 0.24 per cent due to high performance from ONGC and OIL. 

Cumulative crude oil production by ONGC in Q1 was 5,640.77 tmt, which is 0.22 per cent lower than the period's target but 2.71 per cent higher than production during the year-ago period. 

OIL produced 839.86 tmt, about 5.22 per cent higher than the last year's corresponding period.

On the other end, private players and joint ventures put up a dismal show with falling behind their June target by 3.12  per cent and overall decline in production by 5.78  per cent, compared to June last year. 

Cumulative crude oil production during April-June, 2017 was 2541.74 TMT which is 4.08 per cent lower than target for the period and 6.23 per cent lower than the production during corresponding period of last year.

Around 100 wells of Cairn India’s Rajasthan reserve were closed due to high water cut and certain wells of Panna Mukta oilfield, operated by British Gas (BG) group were closed, citing natural decline reasons. 

Apart from the above, non-grant of PML to the ONGC’s Cauvery Basin’s reserve are some of the attributors to low oil production for the month.

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