ONGC up 5 per cent; to explore Mehsana assets

The stock of ONGC was the top gainers on BSE Sensex on Thursday following buzz that the company has applied for clearance to drill wells in Mehsana, Gujarat. ONGC gained for the second consecutive day and closed at Rs. 148.80 per share, up by 4.17 per cent. 

The project will be covering an area of 1,114 square km, where ONGC plans to drill 406 wells for development. The cost of the project is expected at approximately Rs. 2,402.83 crore. Of these wells, 211 wells are planned in the enhanced oil recovery  (EOR) field area, while 195 wells are in Non-EOR field area. Total expected oil production is about 13.6 MT in a period of over 6 years.  

Earlier, ONGC's subsidiary, ONGC Videsh and Mozambique LNG1 Company through a joint venture entered a long-term LNG Sale and Purchase Agreement (SPA) with Tokyo Gas and Centrica; CNOOC Gas and Power Singapore,  Shell International Middle East, Bharat Gas Resource and Pertamina, Indonesia for various tenures. 

On Thursday, the stock of ONGC opened at Rs. 144.15 and hit an intraday high of Rs. 150.00 and a low of Rs. 143.50 and closed at Rs. 148.80 per share, up by 4.17 per cent.