ONGC starts oil production from deep sea in KG Basin, PM Modi congratulated, action seen in stock
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ONCG Oil Production in KG: Government oil and gas company Oil and Natural Gas Corporation (ONGC) has started oil production in the deep water block in the Krishna Godavari Basin in the Bay of Bengal. According to the information given by the company on social media platform X, ONGC has started production from Cluster-2 project in KG-DWN-98/2 block. The company will gradually increase production from here. It is believed that this will help it reverse the trend of declining production over the years. Prime Minister Narendra Modi on this success of the oil company (Narendra Modi) has also congratulated. He wrote on Twitter that this is a remarkable step in India’s energy journey and promotes our mission of self-reliant India. This will also bring many benefits to our economy. Meanwhile, Petroleum Minister Hardeep Singh Puri said that the first oil production has started from the complex and difficult block. Without giving any indication about the current production, he said that crude oil production is expected to be 45,000 barrels per day and gas production to be 10 million cubic meters per day.
This is a remarkable step in India’s energy journey and boosts our mission for an Aatmanirbhar Bharat. It will have several benefits for our economy as well. https://t.co/yaW7xozVQx
— Narendra Modi (@narendramodi) January 8, 2024
What did the Petroleum Minister say
Petroleum Minister Hardeep Singh Puri, using the hashtag ONGC Jeetega to Bharat Jeetega on social media, wrote that under the leadership of the Prime Minister, India is moving forward as the fastest growing economy. Our energy production from the deepest reaches of Krishna Godavari is also going to increase. First oil production has started from the complex and difficult deepwater KG-DWN-98/2 block located off the coast of the Bay of Bengal. Production from this is expected to be 45,000 barrels per day and more than 10 million cubic meters of gas per day, which will contribute to energy. The project is expected to increase the current national oil production by 7% and national natural gas production by 7%. Cluster-2 oil production was supposed to start by November 2021, but it was delayed due to the Covid pandemic. ONGC has hired the floating vessel Armada Sterling-V to start subsea oil production. It is 70 percent owned by Shapoorji Pallonji Oil and Gas and 30 percent by Malaysia’s Bumi Armada. ONGC had set the first deadline for Cluster-2 oil production as May 2023. This was later extended to August 2023, September 2023, October 2023 and finally December 2023.
What action was seen in the stock?
After the news of oil and gas production in ONGC’s KG Basin, there has been a sharp rise in the company’s shares. Within one and a half hours of market opening, the share price reached its highest level of 52 weeks. ONGC stock opened at Rs 218 at 9 am. Which reached Rs 220.80 at 10.20. During trading till 3 o’clock, the company’s shares were trading at Rs 218.40 with a rise of 0.90 percent i.e. Rs 1.95.
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