ONGC Share Price Jumps On Plans To Begin Pumping Gas From Flagship Facility

Shares of Oil and Natural Gas Corporation Limited (ONGC) jumped on Thursday after the company released updates on its flagship deepwater facility.

What Happened: After starting oil production from its KG-DWN-98/2 block, cluster 2, ONGC is now planning to begin sending gas through a newly laid subsea gas pipeline next month, the oil explorer said in a press release on Wednesday.

"The company has a plan to open another well and flow gas to an onshore terminal next month through the newly laid subsea gas pipeline," the company said.

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The company began its first oil production from the block in January this year, which lies in the Krishna-Godavari basin off the Bay of Bengal.

Earlier this month, ONGC signed a sale purchase agreement to acquire ownership in Azerbaijan’s ACG oil field and shares of the Baku Tbilisi Ceyhan (BTC) pipeline company. The acquisitions will involve a total investment of up to $60 million (around ₹498 crore), it had then said.

The oil major is due to announce its first-quarter results on August 5.

Price Action: ONGC was trading 1.08% higher at ₹323 on Thursday.

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