ONGC says oil prices likely to remain high

R.S.Sharma, chairman of India’s largest oil and gas firm ONGC, said he saw no immediate respite from climbing crude oil prices and said his own firm’s profits will be hit due to the spike.

“I don’t think there is going to be immediate respite and the outlook is not comforting,” Sharma said while inaugurating the international “Applied Technology Workshop” organized by Society of
Petroleum Engineers (SPE) in Chennai.

He pointed out that ONGC’s retention price goes on reducing with increasing oil prices owing to the mechanism evolved for sharing under-recoveries. He also said that the consumer, service provider and the industry want stability so that fluctuating crude prices do not play spoilsport in energy planning.