ONGC Videsh and Mangalore Refinery and Petrochemicals Ltd (MRPL), the subsidiaries of the upstream oil giant ONGC, have sent the company’s fortunes soaring. ONGC Videsh (OVL), the foreign arm of the public sector oil giant, has recorded its highest-ever profit of Rs 4,445 crore – an increase of 13.1 per cent from the previous year, announced Chairman Dinesh K. Sarraf on May 20.
Crude oil production during the financial year 2014 (FY14) was higher by 26.3 per cent due to new production stream from ACG, Azerbaijan, acquisition of additional 12 per cent PI in Block BC-10, Brazil, and higher production from Sudan and resumption of production from south Sudan. Gross Revenue during FY14 has increased mainly due to increase in production and positive exchange rate.
Sarraf said the ONGC Videsh team had done an excellent job in achieving the higher physical and financial performance and successful acquisitions of discovered oil and gas projects. ONGC Videsh has participated 33 projects in 16 countries, including Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Kazakhstan, Libya, Mozambique, Myanmar, Russia, South Sudan, Sudan, Syria, Venezuela and Vietnam.
MRPL, a unit of state owned Oil and Natural Gas Corp (ONGC), reported a net profit of Rs 1,067 crore in the fourth quarter on the back of foreign exchange and inventory gains. Last fiscal year it had posted a net loss of Rs. 62 crore in January-March 2013. The company has done well on the back of Rs 575 crore gain from rupee appreciating against the US dollar and an inventory gain of Rs 503 crore avers Sarraf. MRPL earned $ 3.18 on turning every barrel of crude oil into fuel as compared to a gross refining margin of $ 1.98 a barrel.