- News>
- Companies & Commodities
ONGC to have windfall gains
New Delhi, Sept 20: Oil and Natural Gas Corporation (ONGC) is likely to get windfall gains this fiscal when it starts getting international price for its crude oil, company chairman and managing director Subir Raha said today.
New Delhi, Sept 20: Oil and Natural Gas Corporation (ONGC) is likely to get windfall gains this fiscal when it starts getting international price for its crude oil, company chairman and managing director Subir Raha said today.
ONGC, which posted a net profit of Rs 6,198 crore in 2001-02 on a administered crude price of 16 dollars a barrel, was in final stages of negotiating market determined prices with domestic refiners, Raha told a news conference here.
Provisionally, it had begun charging $ 22 a barrel beginning this year, which saw its net profit jump 34 per cent to Rs 1981 crore in first quarter of 2002-03.
"We produce sweat crude (low in sulphur) which is benchmarked against West African bonny light crude that has averaged around $ 24 a barrel," he said adding that ONGC would get the international price once the deal is finalised with the refiners. The pricing formula agreed upon contains a base price (linked to global price of that particular grade of crude oil), premium or discount depending on the quality of crude and freight charges, he said.
The state-run exploration firm would supply Indian oil 10 million tonnes of crude annually, Bharat Petroleum and Kochi refineries 8.5 million tonnes and Hindustan Petroleum and Mangalore refinery the remaining 7.5 million tonnes.
The custom and sales tax levies will be shared by ONGC and the refiners.
International prices would mean about $ 5 a barrel incremental revenue for ONGC this fiscal, Raha added.
Bureau Report
Provisionally, it had begun charging $ 22 a barrel beginning this year, which saw its net profit jump 34 per cent to Rs 1981 crore in first quarter of 2002-03.
"We produce sweat crude (low in sulphur) which is benchmarked against West African bonny light crude that has averaged around $ 24 a barrel," he said adding that ONGC would get the international price once the deal is finalised with the refiners. The pricing formula agreed upon contains a base price (linked to global price of that particular grade of crude oil), premium or discount depending on the quality of crude and freight charges, he said.
The state-run exploration firm would supply Indian oil 10 million tonnes of crude annually, Bharat Petroleum and Kochi refineries 8.5 million tonnes and Hindustan Petroleum and Mangalore refinery the remaining 7.5 million tonnes.
The custom and sales tax levies will be shared by ONGC and the refiners.
International prices would mean about $ 5 a barrel incremental revenue for ONGC this fiscal, Raha added.
Bureau Report