Rupees 29,000 Crore Capital Expenditure Planned by ONGC for Next Fiscal
ONGC (Oil and natural Gas Corp) has plans of spending Rs 29,000 crore in financial year 17-18 to develop its offshore oil and gas fields. This capital expenditure is similar to the capex planned for this financial year.
According to a senior ONGC executive, the expenditure by the company will be similar to what has been planned for this year however, the amount of physical activity would be more as services cost has fallen. He also stated that, cost of oilfield services and rigs have fallen by near about twenty five to thirty percent over the last 2 years after slump in oil prices and this has definitely benefitted producers and explorers like ONGC.
The next financial year’s capital expenditure does not include Rs 8,000 crore or $1.2 billion that the company has to pay for purchasing GSPC’s stake in the KG basin asset, stated the executive. The funding requirements will be met through internal resources, he added.
ONGC is targeting an expenditure of Rs 29,300 in FY’16-17 and in the first 9 months, the company has used two third of its target or Rs 19,000 crore, at a slower pace than some its peers.
The ONGC executive also said that, majority of the investment planned for next fiscal year would be aimed towards projects off the East and West coast. A small portion of the investment would also be spent on KGDWN-98/2 development along with ONGC onshore blocks.
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