ONGC shares trade in green despite fall in Nifty Oil & Gas; all you need to know

At the time of writing, the scrip was trading 0.53% higher at ₹239.34 per equity share.

In comparison, the NIFTY Oil & Gas index stood at the 11,903.60 level, down by 2.55% or 310.95 points.

Gas leak incident

The company’s production contractor, Deep Industries Ltd. reported an incident of gas leak during the workover operations at the Mori field in Andhra Pradesh.

In a regulatory filing on Monday, the oil and gas exploration company said that no injuries or loss of life has been reported.

As per media reports, the leak triggered a fire at the site.

The incident occurred at Mori Well-5, which is located in a “remote area with no human habitation within a radius of approximately 500–600 metres” in the Dr. B. R. Ambedkar Konaseema district, as per the exchange filing.

The area where the incident occurred has been cordoned off, cooling operations have commenced, and ONGC has mobilised its Crisis Management Teams (CMT and RCMT), the filing stated, adding that “preparatory work is in progress to facilitate well-control and, if required, capping of the well.”

The company said that it has also initiated coordination with international well-control specialists, comprising mobilisation arrangements to support advanced well control and casing-cutting operations, which are subject to site assessment.

The Maharatna firm added that its senior management, along with technical experts, is closely monitoring the situation.

It is also mobilising additional equipment from nearby locations, including Narsapuram.

“Further updates will be shared as the situation evolves,” ONGC added.

ONGC forays into ethane shipping via JV with MOL, Japan

In a separate regulatory filing on January 5, the PSU said that it has signed joint venture (JV) agreements and capital contribution agreements with M/s Mitsui O.S.K. Lines Ltd. (MOL), Japan.

Under the terms of the agreements, ONGC shall subscribe to 2,00,000 equity shares of ₹100 per unit in each of the two joint venture companies namely Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, registered in Gift City, Gujarat.

Upon completion of the equity subscription, the Maharatna company will hold a 50% equity stake in each of the JV entities, with the remaining 50% being held by MOL.

Both the JVs will own and operate one very large ethane carrier (VLEC), the filing stated, adding that both the VLECs will operate under the Indian flag.

The firm noted that the VLECs will be deployed for transporting ethane from the USA to meet the feedstock requirements of its subsidiary, ONGC Petro additions Ltd (OPaL).

“The initiative has been undertaken with the guidance and support of the Ministry of Petroleum and Natural Gas and the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance,” it said.

The company added that the venture marks its “strategic entry into business diversification and growth”.

ONGC aims to capitalise on emerging opportunities in energy logistics, strengthen integration across value chains, and establish an operational presence in specialised shipping, through the deployment of VLECs for ethane transportation, it added.

Shares of ONGC closed 1.4% lower on Monday, January 5, amid concerns regarding the implications of the US military actions in Venezuela, where ONGC has significant oil and gas assets through its subsidiary ONGC Videsh.