Oil & Natural Gas Corporation (ONGC) reported an 18% year-over-year increase in standalone net profit for the second quarter ended September 30, 2023, driven by higher oil and gas prices. The state-owned oil explorer also declared an interim dividend of ₹6 per share and recently entered into a strategic partnership with Japan's Mitsui O.S.K. Lines Ltd. for ethane transportation.

Financial Performance

Segment Performance

The offshore segment continued to be the major contributor to ONGC's revenues and profits, accounting for nearly 70% of total revenue.

Strategic Joint Venture Development

ONGC signed Joint Venture Agreements and Capital Contribution Agreements with Mitsui O.S.K. Lines Ltd. (MOL), Japan, to subscribe equity shares in two joint venture entities - Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, both registered in Gift City, Gandhinagar.

Each joint venture company will own and operate one Very Large Ethane Carrier (VLEC) under the Indian flag, deployed for transporting ethane from the United States to meet feedstock requirements of ONGC Petro additions Limited (OPaL).

Dividend Declaration

The ONGC board declared an interim dividend of ₹6.00 per equity share (120% of face value) for FY 2023-24. The total payout amounts to ₹7,548.00 crore, with the record date set as November 14, 2023.

Other Strategic Investments

ONGC approved an investment of up to ₹421.50 crore in its wholly-owned subsidiary ONGC Green Limited, demonstrating the company's commitment to renewable energy expansion. The ethane shipping venture aligns with the Maritime Amrit Kaal Vision 2047, emphasizing national self-reliance and maritime infrastructure development.

Oil & Natural Gas Corporation has successfully contained a gas leak incident at its Mori Field facility in Andhra Pradesh during workover operations, with no casualties or injuries reported. The incident was flagged by operator Deep Industries Limited, and the company has confirmed that safety risks to the public remain minimal due to the remote location of the affected well.

Incident Details and Safety Measures

The gas leak occurred at Well Mori#5 during routine workover operations in a remote area with no human habitation within approximately 500-600 metres radius. As a precautionary measure, ONGC has secured the site and initiated cooling operations to stabilise the situation while maintaining strict safety protocols.

Emergency Response and Equipment Mobilisation

ONGC has mobilised its Crisis Management Team and Regional Crisis Management Team to oversee containment and response efforts. The company's senior management and technical experts are closely monitoring developments while coordinating with international well-control specialists to support advanced operations, subject to on-site assessment.

Additional specialised equipment is being moved from nearby locations, including Narsapuram, as part of the comprehensive response plan. Preparatory work is underway to enable well-control operations, including the possibility of capping the well if required.

Market Impact

Following the incident, ONGC shares experienced a decline in trading activity. The stock closed 1.41% lower at ₹238.05 on the NSE, down ₹3.41 from the previous session.

Ongoing Monitoring and Communication

The company continues demonstrating its commitment to transparency and stakeholder communication while ensuring the effectiveness of safety protocols throughout the ongoing emergency response operation. ONGC has stated that updates will be shared as the situation evolves, highlighting the operational risks associated with workover activities while maintaining that the leak has been managed without any impact on human life.