Crude Oil Production Increased for India in December

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Crude Oil Production Increased for India in December
Crude Oil Production Increased for India in December

Crude Oil Production Increased for India in December

The latest data from India shows that the country achieved a growth in crude oil production wherein it rose 1.6 per cent in December; however, natural gas output could not keep the momentum and decreased by 10 per cent by the flagging eastern offshore KG-D6 fields of Reliance Industries.

India, which depends a lot on imported oil has been trying to explore its own oil reserves, received the appreciable growth last month when crude oil production in December rose to 3.25 million tonnes (MT) from 3.20 MT a year ago. This was made possible by higher output from Cairn India’s Rajasthan oilfields.

Cairn India’s Rajasthan came up with record production and helped India compensate the decline of 3.1 per cent in production from state-owned Oil and Natural Gas Corp (ONGC) fields. The government owned ONGC disappointed investors as it produced 1.88 MT of oil in December, lower than 1.94 MT it did in the same month the previous year.

Thus, as the latest data released by the Oil Ministry says that Rajasthan output soared 16 per cent to 829,646 tonnes; it helped the country save some Forex reserves, which it has been draining out buying crude oil from Gulf countries. However, the disappointment could not be ruled out as natural gas production dipped 9.9 per cent to 3,001 million cubic meters in December.

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Natural Gas Production Goes Down

The major producer of natural gas, Reliance Industries’ KG-D6 field led a 35.8 per cent drop in offshore output to 672 million cubic meters. There was not much change on the production from ONGC as it stood unchanged at 1999 million cubic meters. The overall production of natural gas has been disappointing so far.

In total, the nation’s 22 refineries produced 18.63 MT of fuel in December 2013, 1.7 per cent less than 18.95 MT petroleum products produced a year ago. The country which depends a lot on imported natural gas faced the remarkable loss due to an 11.9 per cent drop in output at RIL’s domestic refinery at Jamnagar.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com