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India ends FY22 with a 2.6% drop in oil output

India ends FY22 with a 2.6% drop in oil output - (A)

India’s crude oil production fell 2.67% in the year ended March 31 as the state-owned ONGC produced less than target, but natural gas production rose on the back of KG production per part of Reliance-BP.

According to official data released by the Ministry of Petroleum.

India’s crude oil production has declined in recent years.

From 35.7 million tons in 2017-18, it fell to 34.2 million tons the following year and 32.2 in 2019-20, and 30.5 million tons in 2020-21.

The main reason for the decline is the aging of the fields where the natural decline in production began.

Production is sustained by investing in technology to increase recovery rates.

The Oil and Natural Gas Corporation (ONGC) produced 19.45 million tons of crude oil in FY22, 13.82% below target and 3.62% below last year’s production.

This is due to lower-than-expected production from the WO-16 cluster in the western offshore region due to a delay in mobilizing a production unit and less oil in the NBP field due to a related shutdown, it said.

However, natural gas production increased 18.66% in fiscal year 22 to 34 billion cubic meters.

This comes after Reliance Industries Ltd and partner BP Plc began production from newer fields in the KG-D6 block offshore to the east.

Eastern Offshore’s 1.34 billion cubic meters quintuple production offsets a 5.7% decline in ONGC production.

As demand returned with a pick-up in economic activity, refiners processed 9% more crude to 241.7 million tons in the fiscal year 2021-22.

They produced 254.3 million tons of oil derivatives, compared with 233.5 million tons a year ago, and the goal of 249.8 million tons for the fiscal year.

The refinery was operating at 89% capacity during the fiscal year, the data showed.



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