Shares of state-run oil exploration company – ONGC – on Tuesday rose as much as 6 per cent to hit an intraday high of Rs 104.25 after the company on Monday said that it hopes to produce 15 million cubic metres of gas a day (mmscmd) in 2024 from its block in the Krishna Godavari (KG) basin. ONGC will ramp up production from its KG basin block to about 3-3.5 mmscmd from May, which will be further raised to 8.5 mmscmd in 2022/23 before hitting peak rate in 2024, Subhash Kumar, head of finance at ONGC said on Monday according to news agency Reuters. (Track ONGC stock price here)
Government wants to boost local gas output as Prime Minister Narendra has set a target to raise the share of the cleaner fuel in the country’s energy mix to 15 per cent by 2030 from the current 6 per cent.
Most of the future gas production is expected from the Krishna Godavari basin, where ONGC and Reliance Industries operate blocks. Reliance aims to produce 30 mmscmd gas by 2023 from its assets in the basin.
Combined output of Reliance and ONGC will be about 60 per cent of the average 77 mmscmd Indian companies produced in April-December 2020.
As of 12:46 pm, ONGS shares traded 4.83 per cent higher at Rs 103.15, outperforming the Sensex which was down 0.2 per cent. As many as 21.65 lakh ONGC shares changed hands on the BSE compared with 20.17 lakh shares traded daily in the past two weeks.
(With inputs from Reuters)