OVL sees 30% rise in FY16 production

In FY15, OVL production rose by 6% to 8.87 million tonnes of oil equivalent (mtoe) as against 8.36 mtoe in FY14.

ONGC Videsh Ltd. (OVL), the overseas arm of ONGC, expects its oil and gas production to rise by 30% in FY16 thanks largely to the incremental volumes from the Vankor asset acquired recently, Managing Director Narendra K. Verma told a financial newspaper.

In FY15, OVL production rose by 6% to 8.87 million tonnes of oil equivalent (mtoe) as against 8.36 mtoe in FY14. 

In the current fiscal year, OVL targets to cross 12 mtoe output, according to Verma.

In September, OVL had announced buying a 15% stake in Vankorneft (which runs the Vankor oilfield in East Siberia) from Russia’s Rosneft for US$1.25 billion.

Currently, production at Vankor is hovering around 442,000 barrels per day, translating into OVL's share of 66,000 barrels per day, Verma told the newspaper. 

The formal deal with Rosneft is likely to be closed in 2016.

The Cabinet Committee on Economic Affairs (CCEA) is expected to give its approval for the acquisition shortly.