ONGC loses over Rs.15.7 bn in revenues

By IANS,

New Delhi : State-owned energy giant Oil and Natural Gas Corp (ONGC) lost over Rs.15.7 billion (Rs.1,570 crore) in revenues during 2007-08, a union minister said here Tuesday.

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“ONGC is having economic loss in gas business. In 2007-08, ONGC made (loss) of Rs. 1,570.76 crore from gas business,” Minister of State for Petroleum and Natural Gas Dinsha Patel told the Rajya Sabha.

The loss was incurred because of sale of natural gas at prices lower than its cost of production.

The company’s average cost of production of gas during last fiscal was Rs.3,426 per million standard cubic meters (mmscm), but it generated only Rs.3,147 per mmscm on sales.

ONGC lost Rs.279 per mmscm, the minister said.