ONGC, Indian Oil Invested Rs 16,500 Crore in Q1 Capex

19 Jul 2024 , 12:55 PM

During the first quarter of this financial year, ONGC and Indian Oil Corporation spent ₹8,000 crore and ₹8,500 crore, respectively, on capital expenditures, depleting about 25% of their annual spending budgets.

The overall capital expenditure target for state-owned oil businesses for 2024–2025 is ₹118,500 crore. The data from the Petroleum and Natural Gas Ministry shows that they spent ₹26,500 crore in the April-June quarter, or almost 22% of their yearly target. Spending by ONGC (26%) and Indian Oil Corporation (27%) above the norm for state-run oil corporations.

The average for state oil companies decreased as a result of the slower spenders, Hindustan Petroleum Corporation (21%), GAIL (19%), Oil India (18%), and Bharat Petroleum Corporation (12%).

Infrastructure for the distribution of natural gas, pipelines, depots, petrochemical and biofuel facilities, refinery development, and other projects are being funded by refiners Indian Oil, Hindustan Petroleum, and Bharat Petroleum.

Hindustan Petroleum is investing a significant portion of its funds in its greenfield refinery in Barmer, which has experienced a sharp increase in costs. The primary expenses of Oil India and ONGC are production and exploration.

In the April-June quarter, Hindustan Petroleum spent ₹2,680 crore, while Bharat Petroleum spent ₹1,600 crore. Oil India invested ₹1,200 crore, whereas GAIL spent ₹1,500 crore.

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