Question : PRODUCTION OF GAS BY ONGC

(a) whether the Oil and Natural Gas Corporation Limited (ONGC) produces 40 per cent of the total production of natural gas in the country;

(b) if so, the details thereof;

(c) whether the ONGC is bearing heavy losses due to sale of gas at prices below its production cost;

(d) if so, the estimated amount of loss borne by the said company during the years 2011-12 and 2012-13; and

(e) the average cost of production of gas incurred by the said company during 2011-12 and 2012-13 along with the norms adopted for determining the cost of production of gas during the said period?

Minister of State in the Ministry of PETROLEUM & NATURAL GAS (SMT. PANABAAKA LAKSHMI)

(a) & (b) During the year 2011-12, Oil and Natural Gas Corporation Limited (ONGC) produced about 23.32 Billion Cubic Meters (BCM) of gas which was about 49% of total gas production of 47.56 BCM in the country during that year. Similarly, during the year 2012-13, the total gas production in the country was about 40.68 BCM, of which ONGC produced about 23.55 BCM (i.e. 58%) of gas.

(c) No, Madam. ONGC is not bearing any losses on sale of gas.

(d) Does not arise in view of reply at (c) above.

(e) The average cost of production of gas incurred by ONGC during 2011-12 was Rs. 6,132/Thousand Cubic Meter (TM3). The accounts for 2012-13 are under finalization and audit.

Cost of production includes operating cost, recouped cost (depreciation, depletion survey and dry wells) and statutory levies and excludes return on capital employed.