ONGC elevated capital expenditure of Rs 15,550 crore in Q2
According to the Petroleum and Natural Gas Ministry data, the company spent Rs 23,550 crore in the six months to September, or a little more than three-fourths of its annual target.
ONGC elevated capital expenditure of Rs 15,550 crore in Q2
State-owned Oil and Natural Gas Corporation (ONGC) has increased its capital expenditure of about Rs 15,550 crore in the second quarter of this financial year, doubling its first-quarter spending and making up nearly 40% of all state-run oil companies' combined capex. India's top oil and gas producer has a capex target of Rs 30,800 crore for this fiscal.
According to the Petroleum and Natural Gas Ministry data, the company spent Rs 23,550 crore in the six months to September, or a little more than three-fourths of its annual target.
"ONGC's capital spending mainly involves exploration and development of discoveries and redevelopment of certain fields to boost oil and gas output. The company has struggled with its output for years and has faced delays in some projects. It missed its annual capex target several times in the past decade owing to various reasons, but this year it appears on course to reach its spending goal well before time.
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Similarly, at Rs 30,900 crore, Indian Oil has an annual capex target as ONGC. India's top refiner's spending this year, however, has been slower than ONGC's.