ONGC scrambling to restart Libya operations, scale up in Venezuela
India's Oil and Natural Gas Corporation (ONGC) is in talks to restart operations in Libya and boost production in Venezuela, according to Sushma Rawat, ONGC's Director of Exploration. Rawat shared this news at the India Energy Week event in Goa, following reports that Oil India is also negotiating a return to drilling in Libya after a 13-year absence due to political unrest. Both companies withdrew from Libya in 2011, but are now seeking to reestablish their presence there.
ONGC and Oil India's history in Libya, Venezuela
ONGC is working on increasing production in Venezuela, with Rawat stating, "Once it gets started for Oil India, same applies to us. We are also in the same pact with National Oil Corporation of Libya." Similarly, Oil India is discussing plans to ramp up production in Venezuela. The announcement came even as the US reinstated sanctions on Venezuela on January 29, after granting sanctions relief in October last year due to a deal for elections this year.
Upcoming drilling projects and challenges
In addition to these developments, Rawat mentioned that ONGC will commence drilling in the Andaman Islands by year-end and the Cauvery Delta in south India by this month or March. However, she emphasized the need for tax rebates and cost benefits when exploring challenging regions that are either remotely located or embroiled in civil strife and turmoil.
ONGC may report decline in net profit in Q3
Meanwhile, it is reported that the net profit of ONGC might dip in the third quarter. ONGC is estimated to register a net profit of Rs. 9,115 crore, lower by 14% YoY and 8% QoQ, based on analysts' estimates. It is also expected that ONGC may record a decline of 0.5% in crude and 1.4% in gas production, and a 2% drop in net crude realization, leading to a projected 9% EBITDA loss over Q2.
