ONGC has made losses to the tune of Rs 8,512 crore between FY11 and FY14 due to poor rig management programmes and idling, delay in tendering and higher degree of inefficiency, said the Comptroller and Auditor General of India (CAG).
In addition, the national auditor, in its report titled ‘Utilisation of rigs in ONGC’, said that due to idling of rigs, the government-run explorer suffered production deferment of at least Rs 5,117 crore of oil and gas.
The fall in crude oil prices, which has adversely impacted ONGC’s profitability, lent more urgency to the need to improve drilling practices and cut costs.
These findings raise serious concerns about the operations of ONGC, which is slow in ramping up output and now faces lower crude oil and gas prices to implement its capex programmes. FE