ONGC shares slide 6 per cent on exploration plan

Oil and Natural Gas Corporation ONGC shares hit a four month low of Rs 142.35, down 6 per cent on the BSE in Friday after the company said it will invest 31,000 crore over the next three years in exploring the Indian sedimentary basin for fuel reserves.

The state-owned oil and gas exploration stock was under pressure after the UK imposed a 25 per cent energy windfall tax on oil and gas producers to help households as bills surged.

Since January 2022, the price of the stock has fallen to its lowest level since January 2022. With today s fall, the stock has corrected 27 percent from its 52 week high of Rs 194.6 touched on March 8, 2022, its 52 week high of Rs 194.6. There were more than doubled the trading volumes on the counter, with 27.4 million equity shares changing hands on the NSE and BSE.

The company has put up a comprehensive roadmap to further strengthen its exploration campaign, which allocates a capital expenditure of about 31,000 crore during the next three fiscal years during FY 22 -- 25. This is 150 per cent of its exploration expenditure of Rs 20,670 crore in the last three fiscals of FY 19 -- 22. It plans to leverage international collaborations with reputed global majors for this, for which talks are in an advanced stage, according to a press release.

The exploration intensification includes activities funded and facilitated by the government through ONGC's internal program.