Lok Sabha Question No. 96 (UNSTARRED), answered on 2017-07-17
Subject: Performance of ONGC in KG Basin
Ministry: PETROLEUM AND NATURAL GAS
Asked by: BHARAT SINGH, MANSHANKAR NINAMA

## 96. SHRI BHARAT SINGH: SHRI MANSHANKAR NINAMA

## LOK SABHA UNSTARRED QUESTION NO. 96 TO BE ANSWERED ON 17.07.2017

## Performance of ONGC in KG Basin

पेट्रोल ियम एवं प्राक ृ तिक गैस मंत्री

## Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether the profit and performance of Oil and Natural Gas Corporation Limited (ONGC) in Krishna Godavari Basin has been declined to fifty percent during the last three years and the current year;
- (b) if so, the details thereof and the reasons therefor along with the corrective steps taken/being taken in this regard;
- (c) whether the heavy decrease in prices of crude oil in the international market has affected the profit of ONGC and if so, the details thereof along with the corrective measures taken by the Government in this regard;
- (d)  the  extent  to  which  profit  is  affected  by  the  failure  of  ONGC  to  replace  damaged  pipeline  due  to  crack  in Nagaram in East Godavari district and the reasons of inordinate delay in the replacement of the said pipeline in time; and

(e) the time by which the said pipeline is likely to be replaced?

## Answer

पेट्रोल ियम एवं प्राक ृ तिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार )

( श्री धमेंद्र प्रधान )

## MINISTER OF STATE(INDEPNDENT CHARGE) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

*****

(a) & (b)- The details of ONGC's standalone crude oil & natural gas production in Krishna-Godavari Basin during last three years are as under:-

| Year    |   Oil (MMT) |   Gas (BCM) |
|---------|-------------|-------------|
| 2014-15 |       0.272 |         659 |
| 2015-16 |       0.322 |         831 |
| 2016-17 |       0.292 |        1338 |

The production of Oil & gas decreased in   2014-15 mainly due to closure of wells consequent to fire incident in M/s GAIL's Tatipaka-Lanco pipeline in June 2014. The resumption of Oil & Gas production was taken up in a phased manner from September 2014 and all wells have now been resumed.

During 2016-17, the oil production reduced due to decline in major Onshore producing fields namely Gopavaram, Malleswaram   and Kesanapalli (W) and GS-15 field of Eastern Offshore.

The decline in Onshore has been offset to some extent by realizing gains from deepening of wells in Kesanapalli (W) field and increase in condensate production corresponding to enhanced Gas production. Profit/(loss) before tax of ONGC from KG Basin is as below:

|          | Nominated (Rs. in crore)   | JVs (Rs. in crore)   |
|----------|----------------------------|----------------------|
| FY 14-15 | (3,387.51)                 | (2,208.97)           |
| FY 15-16 | (1,621.94)                 | 848.14               |
| FY 16-17 | (879.51)                   | (198.68)             |

(c) to (e). Profit of ONGC depends upon several factors like quantum of production, international prices of crude oil and gas, operational cost, subsidy etc. The average crude oil price decreased from US$ 85.28 per barrel in 2014-15 to US$48.26 in 2015-16 and to US$50.27 per barrel in 2016-17. The net profit of ONGC decreased from Rs.17,733 crore in 2014-15 to Rs.16,140Crore in 2015-16 but  increased to Rs.17,900 Crore in 2016-17. The subsidy burden on sensitive petroleum products shared by ONGC has also reduced from Rs.36,300 Crore in 2014-15, Rs.1096Crore in 2015-16 and nil in 2016-17. This has resulted in increase of profit of ONGC marginally. Evacuation of gas from all Source Points of ONGC in KG Basin has been resumed progressively. Presently, GAIL is evacuating all the Gas  being  supplied  by  ONGC  in  KG  Basin.  GAIL  has  already  replaced  entire  pipeline  250  km  and  also commissioned 227 Km Pipeline including the Chinchnada - Tatipaka - Kakinada Junction Pipeline.