State owned exploration firm ONGC is finally playing catch up with its private sector peer Reliance Industries. ONGC''s KG basin find may end up being bigger than it expected, at least that''s what the management told NDTV in an exclusive interview.
ONGC to produce up to 50 mmscmd of gas from 98/2 block from 2102. It has planned to spend around $5 billion over next 10 years. India''s total gas availability today is 90 mmscmd and Reliance to produce 80 mmsmcd gas from next year.
These big discoveries will alter the demand supply scenario for gas in the country but more importantly it will help re-rate ONGC as an exploration firm. The company''s stock right now is grossly undervalued because of the subsidy hangover and poor track record of discoveries. Other problems like shortage of rigs are also beginning to impact it in a big way. That apart, ONGC will have to first get a nod from the upstream regulator for its ambitious KG basin plans and the big test will be how quickly it manages to step on the gas.
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