The Assam division of ONGC, which contributes about 3.7% of the company’s total production, failed to meet its gas sales target during last financial year due to a lack of demand, the oil and gas producer said.
The company is India’s biggest gas producer, accounting for about 75% of India’s total production, but has seen its overall production under stress as output declines from its ageing fields.
The unit fell “short of its Gas Sales target of 244 MMSCM by 02 per cent due to lack of consumers in this region,” it said.
However, the Assam unit met the production target for both oil and gas, ONGC said in a statement.
It produced 1. 223 million tonnes of oil during last year, compared to 1.202 mt in the previous.
Oil production from Assam was 472.2 million cubic metres (about 0.4 mt) compared to a target of 452.6 cubic metres.
“This is third year in a row that the oldest Asset of the company, which has been facing various constraints like ageing oil fields, depleting reservoir pressure, fierce monsoon etc., has been able to meet all the targets,” ONGC said.
ONGC aims to achieve a two-fold growth in production, three-fold growth in revenue and profit, four-fold growth in market capitalisation and six-fold growth in international production by 2030.
Assam is India’s oldest oil source, though it’s importance was reduced after the commercialization of the Bombay High reserve in the 70s. Still later, the discovery of the Rajasthan block, which contributes about one fifth of India’s total production at present, further lowered the importance of India’s oldest oil province.