Why ONGC Shares Jumped Back Into The Green After 4 Days

ONGC‘s share price jumped back in the green in early trade on Monday looking to halt its four-straight session losing streak.

What Happened: The public sector firm on Sunday informed the exchanges that it has started production from its fifth oil well in the KG-DWN-98/2 Block. The production has been started using the floating production, storage and offloading (FPSO) vessel, which allows ONGC to commence transporting and selling associated gas.

In January, oil production commenced from the asset, initially utilising four of the 13 wells. Gas production is also underway, with three out of seven wells currently online.

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Last week, the company's board approved an additional investment in ONGC Petro additions Limited (OPaL), raising ONGC's stake in OPaL to 92%. This move aligns with ONGC's broader strategy to strengthen its presence in the energy sector.

Additionally, ONGC Videsh, the overseas arm of ONGC, secured a 16-year extension for its oil and gas production operations in Vietnam on August 19, underscoring ONGC’s commitment to expanding its global energy footprint.

Price Action: ONGC’s share price was up 2.26% to trade at ₹326.10 in the early hours of trading on Monday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.