Oil prices affect ONGC margins

Mumbai, Dec 22: Oil and Natural Gas Corporation (ONGC) on Monday, Dec 22 said the current crude oil prices has put its margins under pressure and oil price of $75 a barrel were reasonable levels for upstream companies to keep investing.

"Today's prices are not comfortable for us. Margins are under severe pressure," said ONGC Chairman R S Sharma.

He said the company was constantly reviewing investments but has not put any of its spendings on hold.

"If the current level of prices continue, for the next four-five months we will not have to put investments on hold, but if they stay at these level for longer we will review," Sharma said.

Sharma said the current international crude oil prices were not good for new investments being made in the upstream exploration and production.

"$75 a barrel is a reasonable price for upstream companies to keep investing," he said.

OneIndia News (With inputs from Agencies)