ONGC Begins Oil Production From ₹415 Billion Deep-Water Project
The petroleum company ONGC (Oil and Natural Gas Corporation) has recently started getting oil from a special area in the sea called the Krishna Godavari basin. This place is in the Bay of Bengal and is quite deep, with water depths ranging from 300 to 3,200 meters.
This project took a long time to start due to various delays, like the Covid pandemic. In 2021, many analysts predicted that ONGC’s dominance would lose its power which has proven wrong.
The area where they are getting oil from is divided into three parts, known as clusters. Right now, they are working on Cluster-2, which is further divided into two sections, 2A and 2B. These parts have a lot of oil and gas, which ONGC plans to take out over several years.
To do this, the ONGC is using a special ship called Armada Sterling-V, which can get oil from under the sea and store it. This project was supposed to start earlier, but it kept getting delayed. Now, finally, they have begun getting oil as of January 7, 2024.
Prime Minister Narendra Modi said this achievement is a big step for India’s energy needs and will help in making India self-reliant, which is part of the Aatmanirbhar Bharat mission. The Oil Minister, Hardeep Singh Puri, mentioned that this project will also help increase India’s oil and natural gas production by 7%.
This project uses new technology, the oil they are getting is of a special kind that needs careful handling. Most of the equipment used was made in India, showing ONGC’s support for the Make in India initiative.
This news also affected ONGC’s stock price in the market. The price of their shares went up a little after this announcement.
The stock had a high of ₹217.5 and a low of ₹213.1. The market capitalization of ONGC is ₹272,237.24 crore. The stock had a trading volume of 706,839 shares. The current ONGC stock price is ₹218.7, which is a 1.06% increase from yesterday’s price of ₹216.4. The ONGC futures opened at 218.95. The bid price is 218.75 and the offer price is 218.85.