6 per cent profit for ONGC, to increase refining capacity

New Delhi, Apr 16 (UNI) In the face of absorbing a whopping subsidy burden of Rs 12,000 crores the entire Oil and Natural Gas Corporation (ONGC) group has posted a net profit of Rs 15,485 crore in 2005-06 , a growth of 6 per cent over the previous year. ONGC, Chairman and Managing Director Subir Raha while announcing the group's performance said the group's turnover on a gross basis was put at Rs 86,414 crore, 21 per cent higher than Rs 71,627 crore recorded in FY05.

ONGC revenues were pegged at Rs 50,900 crore and its profits went up 9 per cent to Rs 14,175 crore. ONGC's market capitalisation crossed Rs 1,90,000 crore on March 30 this year, the CMD said.

The PSU's fell short of the target of 26.6 million tonnes of crude by 8 per cent as production was limited to 24.4 million tonnes. Mr Raha said that a floating production system was scheduled to be put in place in the next two months to augment production.

The production to 2,70,000 barrels a day by August will be restored, at the level it was operating at prior to the accident at Mumbai High in one of its platform on July 27 last year. He said the production would be stepped up to 3,00,000 barrels of oil per day on sustained basis in FY07.

Mr Raha said the refining capacity of ONGC would go up to 45.5 MMT per annum by 2009-10 from its current 9.69 MMT rpt 9.69 MMT. He said a total of Rs 45,000 crores would be invested at Mangalore Special Economic Zone (SEZ) which would contain a refinery, petrochemicals plant, C2-C3, LNG and power production.

Mangalore Refineries and Petro Chemicals Limited (MRPL) capacity would be increased to 15 MMTPA at a cost of Rs 8,000 crores.

Similarly another refinery at SEZ of Mangalore will also be increased to 15 MMT at a cost of Rs 30,000 crores, Mr Raha said. The refinery at Kakinada would be increased to 7.5 MMT at Rs 9,000 crores.

The refinery at Barmer would be increased also to 7.5 MMT at a cost of Rs 9,000 crores. Likewise the refineries at Anklewsar and Uthop will be scaled upto 7.5 MMT at a total cost of Rs 12,000 crores.

An aromatics complex, at an investment of Rs 4,800 crores to produce 9,00,000 MMTPA of para-xylene will also be put in place, Mr Raha said.

For the last five years Rs 40,000 crores were spent in Exploration and Production (E and P) and in 2006-07 Rs 120 crores will be pumped in for E and P operations, Mr Raha said.

The Company posted a turnover of Rs 50,900 crores an increase of 9 per cent from Rs 46,712 crores. Earnings per share was also up eight percent at Rs 99.

The Company produced 24.4 million metric tonnes (MMT) of crude oil in FY 05-06 which is 92 per cent of the target of 26.6 MMT. The lower production is due to the accident at BHN platform in July 2005.

EDS: PICKING UP SUITABLY FROM EARLIER SERIES.

UNI RT MP GC1807