Oil PSU capex hits a 4-year low in FY2019 20

04 February 2019

State-owned oil firms’ capital expenditure has hit a four-year low with PSUs such as ONGC and IOC planning to invest INR 93,693 crore in oil and gas exploration, refining and petrochemicals in the 2019 20 fiscal year.

Oil and gas exploration
Source: Google

Oil PSUs had proposed an investment of INR 89,335 crore in the current fiscal year ending March 31, 2019, but will end up investing INR 94,438 crore. This is lower than INR 132,003 crore invested in 2017 18, INR 104,426 crore in 2016 17 and INR 97,223 crore invested in 2015 16.

The decline in spending comes at a time when the government is emphasising on raising domestic output to cut costly oil imports. India had spent USD 109.1B on oil and gas imports in 2017 18 while the same for the current fiscal are projected to rise to about USD 130B.

ONGC is projected to spend INR 32,921 crore in 2019 20, down from INR 33,007 crore in the current year. IOC’s planned capex will see almost 2% reduction at INR 25,083 crore.

Printer friendly Printer friendly
Tip editor Tip editor

Back to the news archive...

KCI Publishing Copyright © 2019 - DisclaimerPrivacy statement
YouTube Twitter LinkedIn Facebook KCI World Webshop