ONGC to invest $5.8 bn in FY11: Oil minister

ONGC is expected to contribute 25.425 million tonnes of crude oil in the next fiscal starting from April 1 while 26.582 million tonnes in the 2011/12 fiscal, Jitin Prasada told lawmakers in a written reply.

Prasada in reply to a separate question, said that India’’s first strategic oil reserves at Visakhapatnam, was likely to be completed by 2012 end.

Meanwhile, India is setting up a strategic crude oil reserve of 5 million tonnes at three locations in southern India.

Moreover, with a perspective to grow its mark further, ONGC is eyeing to strengthen its presence in the countries like – Africa and Latin America but is less interested in Canadian oil sands.

Mr. R. S. Sharma, Chairman of the company last month said that ONGC has bagged exploration rights for a major project in Venezuela through a tie-up with Spain’’s Repsol, and is now looking for overseas opportunities in Russia and elsewhere in the former Soviet Union.

Mr. Sharma said the company is eyeing to have more balanced portfolio citing Latin America and Africa, where it has been expanding its presence, as its targets for further growth.

Meanwhile for the development of giant oil project in Venezuela bagged by – ONGC, Indian Oil Corp (IOC) and Oil India Ltd (OIL) where initially they are eyeing to invest around $2.25 bn.

These companies last month have bagged the Venezuela project where it would be developed by the joint cooperation of these companies.

The Carabobo-1 project of the Orinoco extra-heavy oil belt of Venezuela would involve a total investment of $19 bn over the time-span of 25 years.

A company official had said that ONGC Videsh Ltd, IOC and OIL may be able to fund most of the future investment from the revenues earned, once it goes on stream in 3 years down the line.

ONGC is currently trading at Rs.1096, up by 0.10%.

The stock hit an intraday high of Rs.1097.45 till now, as against the 52-week high of Rs.1273.5.The stock hit a low of Rs.1090 during the day. The stock had hit a 52-week low of Rs.652.3 on March 20, 2009.

The stock opens at Rs.1096 at BSE. The total traded volume of the scrip on BSE till now stood at 1812.

Meanwhile today, the BSE Sensex is trading up by 10.15 points, or 0.06% , at 17062.69 on 9:12 AM.

The NSE Nifty is trading down by -22.50 points, or -0.44% , at 5101.5.

ONGC has an equity capital of Rs 2,138.87 crore as of 2009 Dec. The face value per share is Rs 10. At the current price of Rs 1096, the P/E multiple stood at 14.5127062443631 with book Value of 368.12 and P/BV at 2.98.

The total shareholding pattern of the company as on Dec 2009 stood at Promoters- 74.14%, Institutional Investors- 12.18%, General Public- 1.65% and other investors- 12.03%.

Considering the current price of Rs. 1096 at 9:12:00 AM , the stock had underperformed the market over the past one month till 10/03/2010 fell -1.66% as compared to the Sensex’’s return of 7.07% and NSE Nifty’’s 7.07 % returns.

Considering the current price of Rs. 1096 at 9:12:00 AM , the stock had underperformed the market over the past one quarter till 10/03/2010 declined -7.89% as compared to the Sensex’’s return of -0.33% and NSE Nifty’’s -0.33 % returns.

Oil & Natural Gas Corporation Ltd (ONGC) has posted a net profit of Rs 30535.80 million for the quarter ended December 31, 2009 as compared to Rs 24748.10 million for the quarter ended December 31, 2008. Total Income has increased from Rs 136573.10 million for the quarter ended December 31, 2008 to Rs 154760.10 million for the quarter ended December 31, 2009.