Oil companies are off to a slow start this year thanks to the Covid-19 pandemic. And therefore the lockdowns in several countries that have severely restricted movement of men and material across the world, affecting projects.
Companies are, however, now gearing up as India et al. begin to reopen their economies and begin lifting travel curbs. They also decide to speed up projects to form up for the lost time.
ONGC, an important spender traditionally, invested Rs 30,100 crore, the very best last year. Indian Oil Corp followed as well as with Rs 28,300 crore.
However, in terms of achieving the annual capex target, HPCL topped the table with a spending of Rs 13,800 crore, or 145 per cent of its annual target, with money flowing into refinery, pipeline and marketing infrastructure projects.
BPCL spent Rs 10,200 crore, 30 per cent quite its targeted capex, to buy its expansion projects, while Indian Oil, the nation’s largest refiner, spent 13 per cent quite its planned outlay for the year.
ONGC Videsh, the overseas as well as arm of the state-run explorer, too spent 4 per cent quite what it had budgeted.
Oil companies are off
ONGC, however, spent almost 91 percent of its targeted capex, same as Oil India. GAIL, the country’s largest gas marketer and transporter. Spent Rs 4,400 crore, about 18 per cent less than its targeted capex.
This year, state-run oil companies have as well as to set a combined capex target of Rs 98,520 crore, with a 3rd of the planned spending by ONGC.
Expenditure targets in 2019-20, quite offsetting slower spending by GAIL, ONGC and Oil India, as India’s state-run oil companies. Together spent 6 per cent quite their annual capex target last financial year .
Their combined capex of Rs 98,955 crore was also 3.4 per cent above what that they had spent in 2018-19, consistent as well as with the oil ministry data.