Indian ONGC Videsh's Apr-Sep crude output falls 33% on Sudan, Syria woes
Mumbai (Platts)--12Nov2012/234 am EST/734 GMT
India's ONGC Videsh Ltd., the overseas exploration and production arm of
state-owned Oil and Natural Gas Corp. Ltd., said Saturday its crude output
plunged 33% year on year to 2.276 million mt (1.67 million barrels) over
April-September, due mainly to production disruptions in Sudan and Syria.
Revenue fell 33.2% year on year to Rupees 82.8 billion ($1.5 billion) in
the first half of its fiscal 2012-13 year, and profit 39.3% over the same
period to Rupees 16.5 billion.
Natural gas production rose 4.8% year on year to 1.212 Bcm in fiscal H1,
the company said in a statement.
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OVL said with the secession of South Sudan from Sudan in July 2011, its
Blocks 1, 2 and 4 now straddle the two countries and Block 5A lies in South
Sudan, and production at all four had been halted throughout fiscal H1.
"The government of South Sudan ordered shutdown of operations in
January. [It] issued an order for the resumption of crude oil production and
petroleum operations on October 18 subsequent to an agreement between the
governments of the Republic of South Sudan and the Republic of Sudan on
September 27," OVL said. Production at the four blocks is now likely to
resume in the next few months, the company added.
In Syria, OVL said the current geopolitical situation, including EU
sanctions and the restrictions they posed, had made operations difficult
since December 2011.
In other regions, OVL said gas production had started in October at its
Lan Do field in Block 06.1, Vietnam, and would add 0.2 Bcm to its production
capacity at the block.
The company said it expects early commencement of production at two
projects under development; Carababo 1 in Venezuela, by March 2013, and
Blocks A1 and A3 in Myanmar, by July 2013.
OVL has interests in 31 projects in 15 countries, 10 of which are
Its recent acquisition of a 2.72% participating interest in the
BP-operated Azeri-Chirag-Guneshli oil field complex offshore Azerbaijan is
expected to add 9% more proven reserves to OVL's reserves and 1 million
mt/year (19,000 b/d) to its annual production.
--Edited by Wendy Wells, email@example.com_wels@platts.com