ONGC unfolds Rs. 26,000cr investment plans
The country's petroleum and gas generating giant, the ONGC has fixed a capital investment worth Rs. 26,000 crore for the next financial year for expansion, exploration and modernization of its existing network and that the capital expenditure is up from Rs. 24,000 crore, it had fixed earlier for the current fiscal.
Outlining the forthcoming program of the explorer, the Chairman and Managing Director, R S Sharma said that the phase I and II of modernization undertaken by the corporation has been completed and the third is being implemented. The modernization plans include replacement of old structures and pipelines for which the sector requires huge investments to bridge the large demand supply mismatch. To boost investments in the field of oil and exploration segment the government should consider granting incentives in the exploration activity and this is perhaps amongst key expectation from the industry in the upcoming Budget, he insisted.
Claiming that the market has witnessed a huge volatility in the petrol prices in the recent past and added that if the prices per barrel were $10 in 1999, it shot up to a peak of $147 or so currently. However the general economic slowdown resulted in the prices dropping to about $ 33 a barrel. When there was a scope of prices bottoming out, it has shot up to over $70 per barrel and this is happening due to the constant pressure on prices by derivative traders and speculative activities. The sector currently faced multiple challenges from environment, management and this would be a major investment area, he added.
Outlining the forthcoming program of the explorer, the Chairman and Managing Director, R S Sharma said that the phase I and II of modernization undertaken by the corporation has been completed and the third is being implemented. The modernization plans include replacement of old structures and pipelines for which the sector requires huge investments to bridge the large demand supply mismatch. To boost investments in the field of oil and exploration segment the government should consider granting incentives in the exploration activity and this is perhaps amongst key expectation from the industry in the upcoming Budget, he insisted.
Claiming that the market has witnessed a huge volatility in the petrol prices in the recent past and added that if the prices per barrel were $10 in 1999, it shot up to a peak of $147 or so currently. However the general economic slowdown resulted in the prices dropping to about $ 33 a barrel. When there was a scope of prices bottoming out, it has shot up to over $70 per barrel and this is happening due to the constant pressure on prices by derivative traders and speculative activities. The sector currently faced multiple challenges from environment, management and this would be a major investment area, he added.
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