ONGC Rallies On Hopes Of Increased Fuel Manufacturing from Krishna Godavari Basin
Shares of state-run oil exploration firm – ONGC – on Tuesday rose as a lot as 6 per cent to hit an intraday excessive of Rs 104.25 after the corporate on Monday mentioned that it hopes to supply 15 million cubic metres of fuel a day (mmscmd) in 2024 from its block within the Krishna Godavari (KG) basin. ONGC will ramp up manufacturing from its KG basin block to about 3-3.5 mmscmd from Might, which might be additional raised to eight.5 mmscmd in 2022/23 earlier than hitting peak charge in 2024, Subhash Kumar, head of finance at ONGC mentioned on Monday in keeping with information company Reuters. (Monitor ONGC inventory value right here)
Authorities needs to spice up native fuel output as Prime Minister Narendra has set a goal to boost the share of the cleaner gasoline within the nation’s power combine to fifteen per cent by 2030 from the present 6 per cent.
Many of the future fuel manufacturing is anticipated from the Krishna Godavari basin, the place ONGC and Reliance Industries function blocks. Reliance goals to supply 30 mmscmd fuel by 2023 from its property within the basin.
Mixed output of Reliance and ONGC might be about 60 per cent of the typical 77 mmscmd Indian corporations produced in April-December 2020.
As of 12:46 pm, ONGS shares traded 4.83 per cent greater at Rs 103.15, outperforming the Sensex which was down 0.2 per cent. As many as 21.65 lakh ONGC shares modified palms on the BSE in contrast with 20.17 lakh shares traded each day up to now two weeks.
(With inputs from Reuters)