Indian domestic crude oil production declined 5% in July from a year earlier mainly on 16% output contraction from fields operated by private players. Natural gas output fell by a tenth.
The total crude output in July was 2,634 thousand metric tonnes (TMT) with the biggest contribution of 1,739 TMT by Oil and Natural Gas Corp (ONGC) whose output barely changed in a year, as per official data. Oil India’s production declined 8% in July from a year earlier.
Output from fields operated by the private sector fell to 644 TMT from 764 TMT a year earlier. These fields have produced 17% less crude during April-July from a year earlier mainly due to sharply shrinking output from Rajasthan’s Barmer block operated by the Vedanta group.
The oil ministry’s monthly review note has cited delay in enhanced recovery projects as a key reason for output decline from the Barmer block, the country’s largest onshore oilfield. The pandemic has also delayed the planned output from some of the fields operated by both the private and the state players.
Domestic natural gas output dropped to 2,443 MMSCM in July. ONGC’s output declined 5% to 1,925 MMSCM while Oil India’s fell 14%. The private sector witnessed the sharpest 31% contraction.