ONGC sees net loss of over Rs 600 cr

{image-ongc 70 70_14042008.jpg news.oneindia.in}New Delhi, Apr 14: State-run Oil and Natural Gas Corporation Ltd (ONGC) today said it may incur losses to the tune of more than Rs 600 crore in gas business during FY08 due to sale of gas at administered prices. ''In 2006-07, we registered a net loss of Rs 600 crore on natural gas sale. In 2007-08, we expect it to shoot further,'' ONGC Chairman and Managing Director R S Sharma told reporters on the sidelines of Fifth Asia Gas Partership Summit here.

He said the company gets 1.95 dollars per million British thermal unit (mBtu) but to reach break-even atleast 2.5 dollars per mBtu is required. Mr Sharma added that the present price of Rs 3.2 per cubic metres that ONGC gets for gas produced from fields given to it on nomination basis, was not sustainable.

The hike suggested to Rs 3.6 per cubic meter by Tariff Commission would only help ONGC break-even. The upstream major will have capex of about Rs 18,000 crore in the domestic market for fiscal 2008-09, he said.

UNI