ONGC shares to get major boost amidst collaboration with UK-Based BP
BP Exploration (Alpha) Ltd is serving as the technical service provider, bringing significant expertise to enhance extraction efforts in the Mumbai High oil and gas field.
ONGC shares to get major boost amidst collaboration with UK-Based BP
State-owned CPSE, Oil and Natural Gas Corporation (ONGC) anticipates a significant boost in revenue, approximately $10.3 billion, due to increased oil and gas production. The stock price will also ramp up against market volatility, with a 52-week high of Rs 272.59 and a 52-week low of Rs 263.75 and expected to deliver 60% output.
The recent surge in activity is attributed to a collaboration with BP, focusing on the Mumbai High field through a strategic alliance. BP Exploration (Alpha) Ltd is serving as the technical service provider, bringing significant expertise to enhance extraction efforts in the Mumbai High oil and gas field.
The objective is to increase crude oil production by 44% and gas production by 89% over a ten-year contract period.
Effective measures are expected to be implemented by FY26, with full-scale results anticipated by FY28. This initiative also involves government participation in royalties and levies, which are projected to contribute up to $5 billion. ONGC, which accounts for the majority of India's oil output, views this partnership as essential to meeting the country's growing energy demands.
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On January 9, 2025, ONGC experienced a decline of 3.0%, underperforming the broader market. The stock's performance was significantly lower than the sector average, trailing by 1.57%. After two consecutive days of gains, ONGC faced a trend reversal, hitting an intraday low of Rs 263.25, which reflected a decrease of 2.95%.
It boasts a high dividend yield of 5% at the current price, which may appeal to income-focused investors. Over the past day, ONGC's performance of 2.96% significantly surpassed the Sensex's modest gain of 0.28%.
Earlier, ONGC showed a slight increase of 0.88%, contrasting with the Sensex's decline of 4.32%. Currently, the stock is in a mildly bearish zone. trading lower by over 2%.