NEW DELHI: State-owned Oil and Natural Gas Corp (ONGC) has warned that the COVID-19 pandemic will have an effect on the velocity of execution of its tasks and the corporate is figuring out alternatives for optimisation of capital and working expenditure.

While about nine consistent with cent of the corporate’s herbal gasoline output was once impacted by means of incapability of consumers to take provides because of the coronavirus lockdown, decrease oil and gasoline costs had impacted its revenues, the corporate mentioned.

In a word at the subject material have an effect on of COVID-19 pandemic submitted to inventory exchanges, ONGC mentioned operations and manufacturing have long gone on uninterrupted throughout the national lockdown imposed on March 25 to include the unfold of the coronavirus.

Crude oil manufacturing was once nearly on the similar degree as earlier than the COVID-19 outbreak however herbal gasoline “output was down by 9 per cent on account of less demand and offtake by customers due to the lockdown,” it mentioned.

However, with the easing of lockdown restrictions and sluggish opening of industries, gasoline call for has been now restored to commonplace ranges.

“With the imposition of lockdown, onshore operations have been hampered in relatively a couple of puts which ended in idling of drilling rigs and kit.

However, since April 20, 2020, onshore operations have additionally been restarted in puts the place those have been stalled and are close to commonplace at the moment.

“It may however be stated that the COVID will impact the speed of execution of various projects and if COVID remains around for a long time, some disruptions in activity levels at local basis cannot be ruled out,” it mentioned.

The corporate is recently imposing a number of tasks to deliver oil and gasoline discoveries on each east and west coast to manufacturing. The tasks beneath execution come with construction of KG-D5 block in Bay of Bengal.

ONGC mentioned it recently has the monetary capacity to maintain its operations and actions together with capital and working expenditure, although each those are being carefully tested afresh for imaginable optimisation and rationalisation.

“Management is well abreast of all the challenges and attempts are also underway to seek assistance from the government for rationalisation of existing taxes and duties structure,” it mentioned.

“Lower oil and gas prices are expected to impact internal resource generation capacity, but given low gearing levels at standalone basis fund raising for the same is not expected to be an issue,” it added.

The corporate borrowed momentary price range to control liquidity place throughout the lockdown.

“The onset of COVID itself will impact project progress to some extent and the company is identifying opportunities for Capex and Opex optimisations,” it mentioned. “Going forward it is anticipated that a combination of higher oil and gas prices, rationalization in expenses and some statutory relief will help the company to protect and maintain our activity level.”

Also, there were some disruptions in provide chains particularly within the global area however those have no longer but had any primary have an effect on on day by day operations.

“As far as some projects are concerned, the supply chain disruption has pushed back the anticipated completion dates. However, close monitoring is in progress to ensure that supplies and normalcy is attained at the earliest,” it mentioned.

ONGC most sensible control carefully monitored the operations, leading to uninterrupted provide chain for clean operations in addition to supplying very important pieces required for protection and wellbeing of operational staff, and for persevered manufacturing of oil and gasoline for the country.

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