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ONGC Videsh posts 57% drop in net profit at Rs 1,904 cr in FY15

ONGC Videsh Ltd, the overseas arm of state explorer Oil and Natural Gas Corp (ONGC), Monday reported a 57.16 percent fall in its net profit at Rs 1,904 crore in FY 2014-15, mainly due to lower oil prices.

New Delhi: ONGC Videsh Ltd, the overseas arm of state explorer Oil and Natural Gas Corp (ONGC), Monday reported a 57.16 percent fall in its net profit at Rs 1,904 crore in FY 2014-15, mainly due to lower oil prices.

OVL is unlisted overseas arm of ONGC and only reports yearly earning numbers.

The company's net profit in the previous fiscal stood at Rs 4,445 crore, the company said in a statement.

The revenue fell by 14.63 percent to Rs 18,491 crore.

OVL produced 5.53 million tonnes of crude oil in 2014-15, marginally higher than 5.48 million tonnes a year ago. Gas output was 16.37 percent higher at 3.34 billion cubic meters.

"Despite higher production during FY'15, the decrease in profit is mainly due to lower oil prices, higher financing cost including exchange loss, higher depletion charge, and impairment provision in one of the assets," the statement said.

OVL has stake in 36 projects in 17 countries including Azerbaijan, Kazakhstan, Russia, Brazil, Colombia, Venezuela, Iraq, Syria, Libya, South Sudan, Sudan, Mozambique, Bangladesh, Myanmar, Vietnam and New Zealand.

Out of these 36 projects, 13 are producing, 4 are discovered/under development, 17 are exploratory and remaining two are pipeline projects.

It currently produces about 167,000 barrels of oil and oil equivalent gas per day and has total oil and gas reserves of about 612 million tonnes of oil equivalent as on March 31.

OVL said with award of exploration permit PEP 57090 in the Taranaki offshore basin by Government of New Zealand on December 9, 2014, operations in Pacific Region have begun.

While production from Arkutun-Dagi field in the Sakhalin-1 project in Russia commenced in January, gas export pipeline project in Block BC-10, Brazil was commissioned in November 2014 leading to gas export about 0.27 million standard cubic meters.

In A-1/A3 Project, Myanmar, plateau gas production rate of 14.2 mmscmd was achieved in December, 2014.

"Oil production from Petro Carabobo, Venezuela, crossed 16,000 barrels per day on March 16, 2015 with average oil production of 9,775 bpd during FY'15 compared to 3,293 bod during FY'14," the statement said adding first crude cargo of 1.2 million barrel from the project was lifted by Reliance Industries in May last year.

Geo-political situation in Syria including EU sanctions and the resulting restrictions on contractors continue adversely affecting Syrian operations since December 2011. Also, operations in South Sudan projects are temporarily under shutdown after internal conflicts and adverse security situation in the country since December 22, 2013.

"The operations in South Sudan shall resume once security situation improves," the statement added.