India's ONGC Posts 2Q FY16 Net Profit of $726.3M, Down 11.1% YOY

India's Oil and Natural Gas Corp. Ltd. (ONGC) posted a net profit of $726.3 million (INR 48.42 billion) for the second quarter of financial year 2016 (2Q FY16) that ended Sept. 30, down 11.1 percent from $816.7 million (INR 54.45 billion) in the previous year, the state-owned company said in a press release Friday.

There was however a marginal 1.1 percent increase in the company's gross revenue for the quarter to $3.13 billion (INR 207.32 billion), compared to $3.10 billion (INR 205.12 billion) a year ago. 

ONGC's total crude oil production reached 6.578 million tons in 2Q FY16, 2.4 percent higher year-on-year from 6.427 million tons, while its overall gas production declined slightly by 0.4 percent to 201.34 billion cubic feet or Bcf (5.702 billion cubic meters or Bcm), compared to 200.42 Bcf (5.676 Bcm) in 2Q FY15.

Turning to developments on domestic oil and gas exploration, upstream-focused ONGC reported that it made three discoveries during the quarter.

The first discovery was at the B-127N-1 exploration well in the BOFF PML Block in Mumbai Offshore Basin, India. The prospect, which was drilled to a depth of 10,614 feet (3,235 meters), encountered oil and gas.

"On conventional testing 46 feet (14 meters) sands in the interval 9,646-9,711 feet (2,940-2,960 meters) produced around 102 barrels of oil per day (bopd) and approximately 4.899 billion cubic feet per day (Bcf/d) or 138,749 cubic meters per day of gas. Two other shallower objects in Panna formation also produced oil and gas on testing. This new prospect discovery will augment oil potential of B-127 cluster," ONGC said.

KGOS041NAML#1 (Malhar#1) in Block KG-OSN-2004/1 in the Krishna Godavari Basin was the second exploration success for ONGC. The well, drilled to a depth of 8,586 feet (2,617 meters), produced 9.9086 Bcf/d (280,611 cubic meters per day) of gas through 24/64-inch choke on conventional testing 51 feet (15.5 meter) sands in the interval 6,289-6,426 feet (1,917-1,958.5 meters) in Godavari Clay formation of Pliocene age. This 7th new discovery in the south western part of the block will add to the development potential of the acreage.


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