Crude oil production in India declined by 3.76% year-on-year to 2.45 million tonne in July 2022. Crude oil output was 2.54 million tonne during the same period last year.
Crude oil production missed the 2.59 million tonne target for the month by 5.57%, said a statement from the ministry of petroleum and natural gas.
State-run energy major ONGC’s production was 1.63 milion tonne, 3.36% lower than target of the month and 1.70% lower when compared with production of July 2021.
The statement said the fall in ONGC’s production came on the back of decline in output from Gandhar in Ankleshwar (Gujarat), ceasing of high potential wells in Geleki field in Assam, restriction on drilling activities due to socio-political issues in Cauvery, among others.
Oil India Ltd’s production stood at 263,700 tonne, which is 8.11% lower than the target of the month. It was, however, 4.12% higher when compared with production of July 2021.
The fall in crude production comes at a time when oil prices remain volatile amid the Russia-Ukraine crisis and concerns of a global slowdown.
India has been making efforts to increase its domestic oil production to reduce import dependence. The country imports around 85% of its energy requirements.
In March, a standing committee on petroleum and natural gas recommended that the government review its strategy to increase domestic oil production and take concrete, tangible steps for this.
The data from the petroleum and natural gas ministry showed that natural gas production during July 2022 declined 0.40% on a year-on-year basis to 2.88 billion cubic metres. It was 3.33% lower than the target for the month.
ONGC produced 1.66 billion cubic metres of natural gas, 3.92% lower than the production level of July 2021. Oil India’s natural gas production, however, increased 5.69% to 262.53 million cubic metres.