ONGC Videsh Ltd, the overseas investment arm of state-owned Oil and Natural Gas Corp (ONGC), on Thursday reported an over two-fold jump in net profit at Rs 512 crore in the first half of this fiscal, helped by higher crude production and lower depreciation and amortisation expenses.
Net profit for April-September was at Rs 512 crore, 126.55 per cent higher than Rs 226 crore for the same period in the year-ago period, the company said in a statement.
OVL, which has projects in 15 countries from Venezuela to New Zealand, reported a 3 per cent rise in standalone crude oil production at 1.3 million tonnes. Consolidated crude oil production was up 29 per cent at 3.6 million tonnes while gas output was 13 per cent higher at 1.87 billion cubic meters.
The consolidated oil production was higher due to the acquisition of 15 per cent stake in Russia’s Vankor oilfield.
The net profit was higher despite a 8.5 per cent drop in revenue to Rs 3,457 crore.
The profit was higher “due to reduced depreciation, depletion and amortisation expenses and forex gains,” the statement said without giving details.
OVL is unlisted 100 per cent subsidiary of ONGC and by regulation is not required to give out quarterly earning numbers. The company completed acquisition of 15 per cent stake in Vankor field in East Siberia in May and subsequently acquired another 11 per cent stake from Rosneft Oil Company on October this year.
Vankor is Russia’s second largest field by production and accounts for 4 per cent of Russian output. “The average daily production from the field is around 415,500 barrels per day of crude oil since acquisition and OVL’s share of daily oil production from Vankor (considering both the acquisitions) will be about 108,030 barrels a day,” the statement said.
OVL said it has signed an agreement with Petroleos De Venezuela SA (PDVSA) for facilitating redevelopment of the San Cristobal joint venture project in Venezuela.
“The redevelopment plan aims to increase the current level of production of about 18,000 barrels per day to 27,000 barrels a day by use of water flooding techniques,” the statement said. The agreement also provides for mechanism to liquidate OVL’s outstanding dividends from the project and to obtain term finance for the USD 318 million capital investment for implementing the redevelopment plan, it added.
Govt-ONGC JV Pawan Hans to be fully divested
Union Minister Jayant Sinha on Thursday said the Cabinet Committee on Economic Affairs (CCEA) has approved disinvestment of 100 per cent stake in helicopter operator Pawan Hans.
Pawan Hans Limited is a helicopter service company based in New Delhi, India. Pawan Hans is a Mini Ratna-I category PSU. A joint venture between the central government and state-owned ONGC, Pawan Hans has a fleet of around 46 helicopters.
“CCEA has approved the recommendation for disinvestment of 100 per cent shareholding of Government of India to strategic buyer identified through two-stage auction process in the CPSEs including Pawan Hans Ltd (PHL),” said an official release quoting Sinha as having told the Lok Sabha in a written reply while responding to a question. According to the Minister, CCEA gave ‘in principle’ approval for strategic disinvestment of central public sector enterprises including Pawan Hans, during its meeting held on October 27.
The approval was given based on the recommendations of the Core Group of Secretaries on Disinvestment, he added. The government holds 51 per cent stake in Pawan Hans, which was incorporated in 1985.
It was set up with the primary objective of providing helicopter support services to the oil sector for off-shore exploration operations, services in remote and hilly areas and charter services for promotion of tourism, as per its website.