Oil and Natural Gas Corporation Limited (NSE:ONGC) Q2 FY23 Earnings Concall dated Nov. 15, 2022
Corporate Participants:
Pomila Jaspal — Director (Finance)
Unidentified Speaer —
Anil Kumar — Chief Commercial
Pavan Aggarwal — General Manager (Production)
Nirmal Kumar — General Manager- Corporate Planning & Strateg
Vivek Tongaonkar — Executive Director (Finance)
Analysts:
Puneet Gulati — HSBC — Analyst
Probal Sen — ICICI Securities — Analyst
Sabri Hazarika — Emkay Global — Analyst
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
Vipul Kumar Shah — Sumangal Investments — Analyst
Vishnu Kumar — Spark Capital — Analyst
Mayank Maheshwari — Morgan Stanley — Analyst
Abhishek Nigam — B&K Securities — Analyst
Hemang Khanna — Nomura — Analyst
Sumeet Rohra — Smartsun Capital Private Limited — Analyst
Presentation:
Operator
Good morning, ladies and gentlemen. I’m Belshia [Phonetic], moderator for the conference call. Welcome to ONGC’s Q2 FY ’23 Earnings Conference Call. We have with us today Mrs. Pomila Jaspal, Director (Finance), and our team who will interact with investors and analysts to discuss Q2 earnings. [Operator Instructions]
I would now like to hand over the floor to madam Pomila Jaspal. Thank you, and over to you.
Pomila Jaspal — Director (Finance)
Good morning, ladies and gentlemen. Just to introduce, I’m Pomila Jaspal, Director (Finance), ONGC. I welcome you all in this ONGC earnings call for Quarter Two and Six-Month Financial Year ’23. Thank you, all, for joining us on the call. I’m joined here by my colleagues, Mr. Vivek Tongaonkar, our Chief Corporate Finance; and K. C. Ramesh, our Chief Accounts and Financial Reporting Services; Mr. Anil Kumar, our Chief Commercial; Mr.
Pavan Aggarwal, our Chief Corporate Planning & Strategy; Mr. Sanjay Bharti, from our corporate accounts team; Mr. Nirmal Kumar, and. Mr. Chandra Shekhar from ONGC Videsh Limited; and Mr. Prakash Joshi from Investor Relations and Corporate Budget section. You will be happy to note that ONGC has compiled its financial results for the quarter and six months ended September 30, 2022, which have been reviewed by the statutory auditors. The financial results have already been released on November 14, 2022, through a press note and sent to the stock exchanges. This has also been sent to the analysts who are there on our mailing list. Here is a brief synopsis of the results.
Company has earned a net profit, that is profit after tax, of INR12,826 crores during the second quarter of financial years ’22 ’23, as against INR18,348 crores during second quarter of financial years ’21 ’22, a decrease of INR5,522 crores, that is 30.1%. During Quarter Two financial years ’21 ’22, the company had decided to opt for lower tax regime under Section 115BAA of the Income Tax Act 1961, with effect from financial year 2021. Accordingly, the company had recognized provision for tax expenses and remeasured its net deferred tax liabilities. The impact due to availing the option has resulted in decrease in deferred tax by INR8,541 crores in Quarter Two financial year ’21 ’22. The profit after tax, that is, PAT for H1, for financial year ’22 ’23 has increased by INR5,350 crores, that is 23.6%, from profit after tax, PAT, of INR22,682 crores in financial year ’22 to INR28,032 crores in H1 financial year ’23. The increase in net profit during H1 financial year ’23 is on account of higher sales quantity, mainly — sorry, higher sales revenue that is mainly due to higher crude oil, natural gas, and VAT price realizations than higher other income, that is interest and dividend income.
The sales revenue for Quarter Two financial year ’23 and H1 financial years ’22 ’23 has increased by INR13,908 crores, that is 57.3%, and by INR33,092 crores, that is 70.1%, as against that corresponding quarter and H1 of the previous year. The billings net of VAT and CST for crude during the second quarter in the current fiscal was at $95.49 per barrel as against $69.36 per barrel in the same period of last year. That is an increase of $26.13 per barrel. The exchange rate of rupee versus dollar stood at INR79.81 vis-a-vis INR74.09. Thus, realization for in rupee terms stood at INR7,621 per barrel in Quarter Two financial year ’23 vis-a-vis INR5,139 per barrel in Quarter Two financial years ’21 ’22. That is an increase of INR2,482 per barrel in the INR terms.
Similarly, gross billing for crude during the first six months of the current fiscal was that $101.99 per barrel as against $67.45 per barrel in the same period of last year. That is an increase of $34.53 per barrel. The exchange rate of rupee versus dollar stood at INR78.55 vis-a-vis INR73.92. Thus, realization for crude in rupee terms stood at INR8,011 per barrel in H1 ’23 vis-a-vis INR4,986 per barrel in H1, that is, financial year ’21 ’22, which amounted to an increase of INR3,025 per barrel, 60.7% in INR terms.
The expenditure on statutory levies, that is, royalty, cess, and excise duty have increased during Quarter Two financial year ’23 by INR8,514 crores, that is INR8,514 crores, 139.2% increase and in H1 financial year ’23 by INR13,160 crores, that is 108.9%, in comparison with similar period of previous year. This increase essentially is attributable to increase in sales price of crude oil and natural gas and levy of special additional excise duty by Government of India on production of petroleum crude at a rate revised on every fortnight based on international crude price. This SAED on crude have been levered with effect from July 1, 2022, which amounted to INR6,452 crores in Quarter Two financial year ’22.
There is an increase of INR2,022 crores in exploration costs written off in Quarter Two ’22 ’23, and INR2,069 crores in H1 financial year ’23, versus corresponding quarter and half-year period of previous year. This increase is due to company charging off exploration wells amounting to INR2,140 crores lying in the fields falling under contract areas offered DSF-III by DGH and awarded to the winning bidders. The operating expenditure has increased by INR242 crores, that is 4.8%, from INR5,025 crores in Quarter Two ’21 ’22, to INR5,267 crores in Quarter Two ’22 ’23. The increase is mainly on account of increase in repairs and maintenance by INR156 crores, transportation expenses by INR64 crores, mainly at Mumbai Offshore due to increase in activities and rates. Similarly, the operating expenditure in H1, that is ’22 ’23, has also increased by INR838 crores, from INR9,823 crores in H1 ’22 to INR10,661 crores in H1 financial year ’22 ’23. The increase is mainly on account of the increase in workover operations. That is, INR131 crores. Water injection at the rate of INR161 crores due to increase in activities and repair and maintenance cost to INR76 crores mainly at Mumbai Offshore.
Depletion, depreciation, and impairment cost for Quarter Two financial year ’23 and H1 financial year ’23 stood at INR2,595 crores and INR7,104 crores, respectively, as [Technical Issues] INR3,943 crore in Quarter Two financial year ’22 and INR8,108 crores during corresponding year of previous year. This decrease is due to reversal of impairment of INR2,129 crores on certain discovered fields — small fields of the companies falling under 10 contract areas which were awarded by DGH to the winning bidders.
Well, friends, with this, I finish my briefing of the second quarter results for financial year ’22 ’23. We will be very happy to take questions from you. We would request you to restrict your queries on financial results only. Thank you.
Operator
Thank you, ma’am.
Pomila Jaspal — Director (Finance)
Yeah.
Questions and Answers:
Operator
Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] The first question comes from Probal Sen from ICICI Securities. Please, go ahead.
Probal Sen — ICICI Securities — Analyst
Thank you for the opportunity, sir. Am I audible?
Operator
Please, go ahead, sir.
Probal Sen — ICICI Securities — Analyst
Yeah. So, two questions. One was with respect to the windfall tax. Is there any sense you get in terms of what the minimum floor is in mind of the government? Can we assume that the net realization stays at somewhere between $75 to $76 level, if something that is targeted, and therefore, irrespective of where crude is right now, that’s sort of the net realizations we should be assuming? So, that is the near term?
Pomila Jaspal — Director (Finance)
Can we answer this?
Unidentified Speaker —
Yeah.
Pomila Jaspal — Director (Finance)
Yeah. Probal Sen, this windfall — your question regarding the windfall tax regarding the flow rate and the rate under which condition, so the government is levying this tax. So, although, officially, they have not given any rate, but in the discussions, they have been, and that’s what we have seen in the seven revisions which have taken place till date starting from July 1, 2022, that they are keeping our flow rate of something around $75 to $76 per barrel. And they are not going lower than that. That is what I would like to say.
Probal Sen — ICICI Securities — Analyst
Okay. Secondly, again, on pricing. We have the inquiry committee recommendations that can come at any time from what we understand. Any sense you can give us in terms of what kind of pricing they are looking at? And on the flip side for us, given how low pricing used to be till recently, is it fair to assume even if the pricing stays at somewhere around, let’s say, $6.5 to $7, that’s something that is more than comfortable for us, at least for the legacy assets? Of course, the pricing for KG Basin asset will be different and that will be based on the premium gas price. So, is that a fair way to look at it?
Pomila Jaspal — Director (Finance)
Yeah. Mr. Probal, I think our relevant person who is going on attending the meetings also, so he is right here, Mr. Anil Kumar. So, he would like to give an answer to this.
Anil Kumar — Chief Commercial
Yeah. Good morning. Myself Anil Kumar. That’s correct. The government has constituted a committee headed by economist Mr. Kirit Parekh. And they have conducted — I think, they have hold around five meetings. If you see the mandate of the committee, that say that’s — the committee should suggest market-oriented pricing regime for India, long-term regions for ensuring gas-based economy. So, the mandate itself states that the price should be remunerative so that there should be investment in the oil sector and there should be growth in the oil sector or gas sector, particularly. In the meeting, they have consulted all the stakeholders including associations like FICCI, Assocham, and CII. And everybody is of the view that there should be marketing and pricing freedom. And we have been also pursuing that there should be marketing and pricing freedom because all the new gas, there is marketing and pricing freedom. So, we are expecting marketing and pricing freedom so that there should be growth in the industry.
Probal Sen — ICICI Securities — Analyst
Thank you. One last question, if I may, on the KG Basin asset. Any progress you would like to share? Any fresh guidance in terms of what volumes could be by the end of this year and maybe for FY’ 24 from the KG Basin asset?
Pomila Jaspal — Director (Finance)
This KG Basin, definitely, we have now the volumes with us also. And what I would like to share is that our FPSO, that is making into Indian waters orders from Singapore yard and that will be reaching sometime in January or February, and accordingly, after hooking up the other the [Indecipherable] engines and other equipment, we will be ready to have a first oil and gas. So, what we are projecting is our — first oil we will be getting in May ’23. And as regards of volumes are concerned, I think, our Pavan Aggarwal, he’s our Chief Strategy, so he we would like to answer that.
Pavan Aggarwal — General Manager (Production)
For the [Technical Issues] on January, and all major activities are going to be undertaken during this period. Let’s say [Technical Issues]
Probal Sen — ICICI Securities — Analyst
Sir, my apologies. I can’t hear you, sir.
Operator
Sir, I’m sorry to interrupt you, sir.
Pavan Aggarwal — General Manager (Production)
Yeah. Okay.
Operator
Yes, sir. Your voice is not audible.
Pavan Aggarwal — General Manager (Production)
Yeah, just one moment.
Pomila Jaspal — Director (Finance)
Just one moment.
Pavan Aggarwal — General Manager (Production)
Hello. Am I audible now?
Operator
Yes, sir. Please, go ahead, sir.
Probal Sen — ICICI Securities — Analyst
Yes, sir. Much better. Thank you.
Pavan Aggarwal — General Manager (Production)
Okay. In the 98/2, we are waiting for the fair weather season, which will be starting from January till April. And we’ll be undertaking many activities during this period. FPSO will be arriving. We will be hooking up our all [Technical Issues] and we expect our first oil to be coming up by May ’23. And during this year ’23 ’24, we envisage to the company around — in the balance of the year of ’23 ’24, we’ll be getting oil of something around 1.935 MMT from April, March, and incremental gas of 2.784 bcm.
Probal Sen — ICICI Securities — Analyst
Sorry, how much bcm, sir?
Pavan Aggarwal — General Manager (Production)
2.78 bcm.
Probal Sen — ICICI Securities — Analyst
2.78 bcm of gas and 1.93 MMT oil, roughly, post May ’23. That’s the run rate we’re looking at, right?
Pomila Jaspal — Director (Finance)
For one year.
Probal Sen — ICICI Securities — Analyst
All right. I’ll come back if I have more questions. Thank you so much for the detailed analysis. Have a nice day.
Pavan Aggarwal — General Manager (Production)
Thank you.
Operator
Thank you. Next question comes from Puneet Gulati from HSBC. Please, go ahead.
Puneet Gulati — HSBC — Analyst
Yeah. Thank you so much. My first question is with respect to the increased repair and maintenance and the activity that you alluded at Mumbai Offshore, is it likely to result in increased volume from that field, or is it just to prevent the downside? If you can give some color there.
Pomila Jaspal — Director (Finance)
Actually, this has been preventive maintenance only. So, that is what it has been happening, because during the COVID time — and of course, the Tauktae also, because certain things were our platform and facilities, there was some kind of, you can say, damage to them also during Tauktae. And those repair and maintenance are also happening, and it will be not in the form of, you can say, increase in the incremental production, but it will be more like regular repair and maintenance.
Unidentified Speaker —
And mainly in offshore.
Pomila Jaspal — Director (Finance)
And it is a part of opex totally.
Unidentified Speaker —
And mainly in offshore.
Pomila Jaspal — Director (Finance)
Mainly in offshore.
Puneet Gulati — HSBC — Analyst
Right.
Pomila Jaspal — Director (Finance)
And after getting the repair and maintenance, we will be then getting [Technical Issues] by the company also to the extent which — the part which was surveyed, and which has been considered as a damaged part because of Tauktae.
Puneet Gulati — HSBC — Analyst
Okay. Got it. And from those Vankorneft, is there any indication as to what kind of dividend are you likely to receive and in what currency, etc.?
Pomila Jaspal — Director (Finance)
I would just like the call over Nirmal ji from OVL, so — and he will be the right person to give the reply to this.
Nirmal Kumar — General Manager- Corporate Planning & Strategy
As far as dividends of Vankorneft are concerned, the large dividend was — we had already repatriated that, the interim dividend that we have received recently, that is aligned with our Russian banks. And we are working on mechanisms to repatriate that to Singapore, which is where our holding company for the Vankorneft asset is based, because Singapore is presently designated as an unfriendly country by the Russian authority. We had certain issues with repatriation, but we have received the dividend and they presently remain in rubles with our Russian bank account.
Puneet Gulati — HSBC — Analyst
And then what is the quantum?
Unidentified Speaker —
Quantum? [Technical Issues] Equivalent of $42 million.
Puneet Gulati — HSBC — Analyst
Okay. $42 million. Okay. The next question is on this liability with respect to the Note 4 of your accounts. You have deposited close to some INR10,000 crore as service tax and GST. Can you talk a bit about, is this — and you’ve still recorded it as a contingent liability. What is the risk that ultimately that you’ll have to pay this fully, and if you can give more color around the Note 4?
Pomila Jaspal — Director (Finance)
Yeah. Please.
Nirmal Kumar — General Manager- Corporate Planning & Strategy
Yeah. Good morning. Basically, like we have recognized, I mean, we have shown a contingent liability of around INR16,000 odd crores and against which we have a deposit of INR10,000 odd crores, this deposit basically like we have made to safeguard ourselves against the interest which can come later on. But we are pretty sure of getting this refund from the government because the cases which is — which were there at the different high courts, they have not given anything on the law, but they have reported it to the Supreme Court special bench. And on the part of — on the legal point, we are pretty sure that we’ll be getting the refund and the case will be in our favor.
Puneet Gulati — HSBC — Analyst
Okay. And lastly, if you can give some guidance on both the oil and the gas production for fiscal ’23 ending on ’24.
Pomila Jaspal — Director (Finance)
Oil and gas production. Yeah. We have our projection for that.
Pavan Aggarwal — General Manager (Production)
For the fiscal ’23 ’24 and ’24 ’25, that we’ll be happy to note that we are going to — we are reversing the declining trend of the ONGC production.
Puneet Gulati — HSBC — Analyst
And in ’23 also, if you can, for fiscal ’23.
Pavan Aggarwal — General Manager (Production)
Yeah. The actual production of ’21 ’22 was 21.707 MMT, which we envisaged to achieve up to 22.823 MMT for ’22 ’23. And ’23 ’24, it will be 24.636 MMT. And for ’24 ’25, it will be 25.689 MMT.
Puneet Gulati — HSBC — Analyst
Okay. Separately, if you can give the breakup.
Pavan Aggarwal — General Manager (Production)
And secondly, for the gas part?
Puneet Gulati — HSBC — Analyst
Yeah.
Pavan Aggarwal — General Manager (Production)
For the gas part, in ’21 ’22, we had produced 40.452 bcm of gas — just a minute, sorry. 21.680. 21.680 bcm of gas. In ’22 ’23, we envisaged 22.099 bcm. In ’23 ’24, it will be 25.685 bcm. And in ’24 ’25, it is around 27.529 bcm of gas.
Puneet Gulati — HSBC — Analyst
Okay. That’s all from me. So, thank you so much, and all the best.
Pomila Jaspal — Director (Finance)
So, we are on the rising trend.
Puneet Gulati — HSBC — Analyst
Yeah.
Operator
Thank you, ma’am. [Operator Instructions] Next question comes from Sabri Hazarika from Emkay Global. Please, go ahead.
Sabri Hazarika — Emkay Global — Analyst
Yeah. Good morning, ma’am. So, I have two questions. Firstly, an accounting question. I mean, if we calculate the windfall tax per metric ton, based on what you have reported around INR6,400 crore divided by stand-alone and JV sales, so the number comes somewhat lesser than what has been like given in the — I mean, in the gazette press release. So, is there any adjustment on the same?
Pomila Jaspal — Director (Finance)
So, you mean to say that the windfall tax amount is INR6,400 crores?
Unidentified Speaker —
So, what is the issue?
Pomila Jaspal — Director (Finance)
What is the issue in this?
Sabri Hazarika — Emkay Global — Analyst
So, if we divide it with your total crude sales, so it comes, something like INR13,500 rupees per metric ton, whereas if we take the average from the government website, then it comes to around INR16,200 rupees per metric ton. So, I’m just wondering if there’s some kind of like converged sectors or something of that sort.
Pomila Jaspal — Director (Finance)
Adjustment or something like that.
Unidentified Speaker —
No, this — as explained earlier, like there are different rates applicable for different periods. So, whether you have taken one single rate and done the conversion based on what is there in the government site or whether you have done the actual…
Sabri Hazarika — Emkay Global — Analyst
No. We have taken an average.
Unidentified Speaker —
Average. So, that would probably be the reason.
Pomila Jaspal — Director (Finance)
And secondly, you might be considering averages you have evened out. But during the first 15 days, the production maybe a little more and then adjustment would be there in the later stage. So, exact calculations may not be that way very sacrosanct in that way. We take it average.
Sabri Hazarika — Emkay Global — Analyst
Right. But this is like fully accounting for whatever is there in the government thing, right? And cess has been like — the OIDB cess has been netted off, whereas the royalty is on full gross level? That’s right, right?
Pomila Jaspal — Director (Finance)
Yeah.
Sabri Hazarika — Emkay Global — Analyst
Yeah.
Pomila Jaspal — Director (Finance)
And something more to add, I think Mr. Anil Kumar, if you can add.
Anil Kumar — Chief Commercial
Yeah. Regarding this levy of windfall tax or special additional excise duty, you can see this is the production levies. And that was the first time it was implemented from July 1. So, whatever quantity was available in the my storage space, which was produced prior to July 1, there duty was not paid. So, that’s why there was a discrepancy in the working.
Pomila Jaspal — Director (Finance)
Yeah.
Sabri Hazarika — Emkay Global — Analyst
Okay. Got it. So, it’s like the inventory sales, which was like produced prior to that and so. But this will be on your sales only, right, not on your production, because I’ve got like…
Anil Kumar — Chief Commercial
Excise duty is production levy, it is not a sales thing. Sales tax is sales levy. This is production levy excise duty.
Pomila Jaspal — Director (Finance)
It is production.
Sabri Hazarika — Emkay Global — Analyst
Okay. So, we have to take the crude oil production from there. We have to like multiply to that?
Anil Kumar — Chief Commercial
The quantity produced from July 1, we have paid the duty.
Sabri Hazarika — Emkay Global — Analyst
Okay, sir. Got it, sir. Thank you. And second question is relating to your dividend payout. So, I think historically, you been at the, what do you call, 45% kind of an average range. Last year, it was less, but it was because of the taxation why the profit was inflated. So, is it fair to assume that we would be somewhere in like 45% kind of payout only considering that the financials of the company has improved significantly? We have now net cash also right now. And I think the capex is more or less range-bound on yet around INR30,000, INR32,000 crores. So, is it fair to assume 45% payout?
Pomila Jaspal — Director (Finance)
I think our Chief Corporate Finance would like to address this issue.
Vivek Tongaonkar — Executive Director (Finance)
So, normally, what we are doing is we are keeping this dividend payout to be between 40% to 55%. And we hope to maintain that depending upon what would be our results in the subsequent quarters also. So, as of now, we would not be able to confirm whether we’re going to keep a particular level, but yes, we’ll try to do it and hopefully, we may be able to do it, depending upon how the pricing or the oil and gas prices behave, and if any levies are there.
Sabri Hazarika — Emkay Global — Analyst
So, minimum would be 40%, that’s what you are saying, right?
Vivek Tongaonkar — Executive Director (Finance)
No, that is also depending upon what — we are trying to do that, normally, but we can’t confirm that.
Pomila Jaspal — Director (Finance)
We can’t confirm that. Well, we have to see our capex plans and the actual profits that we come — that will happen during the next two quarters.
Sabri Hazarika — Emkay Global — Analyst
Right. Right, ma’am, right. Thank you so much, and all the best.
Pomila Jaspal — Director (Finance)
Thank you.
Operator
Thank you. Next question comes from Varatharajan Sivasankaran from Antique Stock Broking. Please, go ahead.
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
Thank you for the opportunity, ma’am. Two questions. Firstly, let me talk a bit oily, first oil coming in the month of May. Should I assume first gas is also going to come in the month of May? And in which case, when will be doing the auction? And have you worked out the methodology so that last-time auction problems what you faced is not repeated?
Pomila Jaspal — Director (Finance)
Yeah. Mr. Varath, you are talking about auction of gas or crude? Oil?
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
Gas, ma’am. KG gas.
Pomila Jaspal — Director (Finance)
Gas? KG gas.
Unidentified Speaker —
KG gas? Yeah, which we’ll come up.
Pomila Jaspal — Director (Finance)
We have…
Anil Kumar — Chief Commercial
Yeah. Whatever gas, filling gas coming that we are offering through IGX or Mjunction depending upon the nature of tenure of the contract, because IGX is pertaining for short-term sales. So, in case of 98/2, there was a price premium quoted by different agency, otherwise, so we have written back to the — we have discontinued trading. But again, we have subsequently, we have already auctioned the same quantity and we have already finalized.
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
So, just to clarify that, sir, like — so the first gas is going to come in the month of May in KG basin?
Pomila Jaspal — Director (Finance)
Yeah.
Anil Kumar — Chief Commercial
Yeah.
Unidentified Speaker —
No. Technically, we’re already producing the gas from three wells at new field, and from May ’23, we’ll will be getting the first oil.
Pomila Jaspal — Director (Finance)
First oil.
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
Yeah. So, sorry, my mistake. So, the incremental gas production, yeah — incremental gas production will happen in the month of May simultaneously along with the oil. Is that right?
Unidentified Speaker —
That’s right. Yeah. Along with that oil production, there will be the associated gas production also.
Pomila Jaspal — Director (Finance)
Yes.
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
Right, ma’am. In terms of auction, are you going to also sell that into IGX, or you will have a separate action for the incremental gas?
Anil Kumar — Chief Commercial
There is separate. You see, in IGX, there is a condition that you can sell through IGX only 10% of the total production, or 500 SCMD, SCM. So, there’s a limitation and over and above, the IGX, there is sale for contract period of three months, maximum three months. Of course, as per GAIL, we are selling only for 15 days or one month. So, there is restrictions in IGX.
Pomila Jaspal — Director (Finance)
So, what we have to do is we will have to auction it and maybe some quantity, we can auction on long-term basis also, and some quantity we can do through Mjunction. And this auction will be through Mjunction on long-term basis.
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
Right. And the potential timing, ma’am, most likely in Feb, March or next year mid-term?
Pomila Jaspal — Director (Finance)
It will be in May or so. Increase of the gas.
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
May?
Pomila Jaspal — Director (Finance)
May. Because some associated gas will come and the activity which will be during our fair weather window, so that will also give us the result.
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
No, I was wondering about the auction timing, ma’am.
Pomila Jaspal — Director (Finance)
Auction timing.
Unidentified Speaker —
He’s asking something about the auction planning.
Pomila Jaspal — Director (Finance)
Auction planning.
Unidentified Speaker —
So, the question is whether we’ll be doing any auction? That — is that the question, Varath?
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
Yeah. You’ll be doing an auction anyway? And what would be the timing of the auction? Would it be [Speech Overlap]
Unidentified Speaker —
Obviously, whenever the gas is available, depending upon once we are sure about the gas and the quantities that we’re going to get, which should be closer towards May, we would be carrying out the auction and sell it on the long-term basis through auction only. We are already selling gasoline through HPCL and GAIL. And so, similarly, after auction, we’ll sell it to whichever party comes out of that auction.
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
Sure. Thanks. My second question was on the update on global assets as usually what will be the current update, starting with Russia, specifically, Sakhalin.
Unidentified Speaker —
Specifically to Sakhalin?
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
Yeah. Sakhalin, starting with Sakhalin, of course, and update across all the global assets.
Pomila Jaspal — Director (Finance)
Asset? Yes.
Unidentified Speaker —
Okay.
Pomila Jaspal — Director (Finance)
Our people, they will address this issue.
Nirmal Kumar — General Manager- Corporate Planning & Strategy
So, Sakhalin, what is the last information that you have so that I can give you the update accordingly, so that [Speech Overlap]
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
Sakhalin, our information is that the production has gone down sharply and moved down.
Nirmal Kumar — General Manager- Corporate Planning & Strategy
Right. Okay. So, let me clarify here. The reason for the production had not just gone down, the production was stopped all together. And it has got nothing to do with upstream issue. This was basically a fallout of the Ukraine conflict. Because of the Ukraine conflict, the P&I Club insurance which is an international insurance club for all seaborne vessels, especially, crude oil vessels, this — the owner of the Sakhalin-I consortium vessels came under sanctions and the insurance was withdrawn, because of which the vessels could not sail the high seas and therefore, there was a tank top situation and production was shut down. Subsequent to that, in Sakhalin, in October, early October, the Government of Russia issued a decree transferring the assets or Sakhalin to a Rosneft-owned entity under the holding structure and an option was given to all the foreign participatory interest holders to exercise their rights, which we have done, and we have also received a confirmation — our consent to participate has been accepted. So, this is the situation as we stand today. This situation will develop further, because there are a lot of formalities that need to be completed on the paper for our reentry in the consortium. However, we understand that production has already resumed, and we will be getting formal updates on that once we are formally back in the consortium.
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
And is there no incremental concern on the insurance front, so we should look at [Speech Overlap]
Nirmal Kumar — General Manager- Corporate Planning & Strategy
No. Now that — see, you have to understand that till today, the operator of Sakhalin was a Western oil major, who was unwilling to move out of the Western P&I Club insurance. Now that it has been taken over by the Russian authorities, there are multiple options for insurance, including sovereign guarantees. And Russian crude is being delivered all over the world through Russian hag vessels. And the same thing to applicable for Sakhalin also. So, evacuation is not going to be an issue.
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
Thanks. And how about the other assets, please?
Nirmal Kumar — General Manager- Corporate Planning & Strategy
Which assets in particular? We have 33 of them. So, I’ll give you the major ones. Vankor is another asset in Russia, which — as far as production is concerned, it has not been majorly impacted for the very simple reason that the Russian national oil company is operator of the project. It continues to produce for the conflict. All the inputs are national and within the country. So, production has not been majorly affected. There have been some issues with outsourcing of materials, due to which there has been a drop in production of around 10%. But given the volumes in Sakhalin, that is not a major concern. The concern exists for us to repatriate the dividends as and when they happen, which I have already informed before. Apart from that, the other major asset would be CPO5, which in this particular half-year, is our largest revenue generator and net cash flow generator. This is an asset where ONGC Videsh is the operator and it’s also producing from this field. The order of magnitude is around 25,000 barrels per day of oil production. This was virtually zero three to four years back. So, it’s a major drill bit success. We will be expanding our operation as we are drilling additional five to six wells every year till 2030. We hope to reach 30,000 to 35,000 KBD by 2030 should everything goes well. Apart from that, BEMC-4, an exploratory block in Brazil, we have given declaration of commerciality and we hope to align in connection with the operator Petrobras to bring the project online in the next few years. So, that is a few of the major projects.
Varatharajan Sivasankaran — Antique Stock Broking — Analyst
Fair enough, sir. Thanks a lot.
Operator
Thank you. [Operator Instructions] Next question comes from Vipul Kumar Shah from Sumangal Investments. Please, go ahead.
Vipul Kumar Shah — Sumangal Investments — Analyst
Hi, sir. So, my question is when will we reach the peak production in KG Basin, and what will be the volumes when we reach the peak production for oil and gas?
Pomila Jaspal — Director (Finance)
’23 ’24. Just wait.
Vipul Kumar Shah — Sumangal Investments — Analyst
Yeah. Sure.
Pavan Aggarwal — General Manager (Production)
In 98/2, we will be reaching our peak production in ’24 ’25. And that will be to the tune of around 45,000 barrels oil per day, and 12 mmscmd of gas.
Vipul Kumar Shah — Sumangal Investments — Analyst
Would you repeat gas figure, sir, please?
Pavan Aggarwal — General Manager (Production)
It will be around 12 mmscmd. 12 million standard cubic meters per day.
Vipul Kumar Shah — Sumangal Investments — Analyst
Okay. And that gas will be subject to any price ceiling or price revision?
Pavan Aggarwal — General Manager (Production)
This gas from 98/2 is getting higher prices as for the price ceiling of the deep waters, which is presently at 12.46. And it’s subject to the revision on a half-yearly basis.
Vipul Kumar Shah — Sumangal Investments — Analyst
So, it means ceiling will be 12.46 [Speech Overlap]
Unidentified Speaker —
12.46.
Pavan Aggarwal — General Manager (Production)
12.46.
Pomila Jaspal — Director (Finance)
The ceiling?
Unidentified Speaker —
The ceiling is 12.46.
Vipul Kumar Shah — Sumangal Investments — Analyst
Okay. sir. Okay. Thank you, sir. Thank you very much.
Pavan Aggarwal — General Manager (Production)
Thank you.
Pomila Jaspal — Director (Finance)
Thank you.
Operator
Thank you, sir. Next question comes from Vishnu Kumar from Spark Capital. Please, go ahead.
Vishnu Kumar — Spark Capital — Analyst
Thanks for the time. So, the — on OVL, just, I mean, I heard the update that you just gave, sir. But will our production go back to something like 2.1 which we were doing last year in oil, 2.1 million tons we were doing. We’re currently at about 1.4, 1.5. Can we go back to this 2.1 level in about a year’s time from now?
Pomila Jaspal — Director (Finance)
Just wait.
Vishnu Kumar — Spark Capital — Analyst
Yeah.
Pavan Aggarwal — General Manager (Production)
So, when you speak about this 1.8 or 2.1, are you speaking about one particular asset? Because [Speech Overlap]
Vishnu Kumar — Spark Capital — Analyst
No, I’m just talking about the overall oil production, which was last year doing at a quarterly run rate of about 2, 2.1. We are currently at 1.5 on oil. With the restart of some of the assets you’re talking about, can we get back to that level of 2, 2.1?
Pavan Aggarwal — General Manager (Production)
See, you have to understand that the Sakhalin itself, it used to produce around 2 million tons of oil per year for us, 40,000 net barrels towards O+OEG. That was what got affected due to the Ukraine crisis. As I told you, we do have information of production restarting. However, there are a lot of inputs that would need to go into the field going forward. These inputs would be constrained by the very fact that most of these inputs are provided by Western service providers, from the likes of Schlumberger or Weatherford or Baker Hughes or Parker Drilling. Now, to maintain the production at the last level itself would be a challenge. So, I do not expect — to answer your question shortly, in Sakhalin alone from the 2 levels, we would consider ourselves very fortunate if by the end of this fiscal, we are able to reach 1.5 MMT, and that is our target for this fiscal. However, the situation is fluid and as and when the situation evolves, the production should get reinstated in Russia.
Vishnu Kumar — Spark Capital — Analyst
Understood. In terms of the quarterly financials of OVL, despite the fall in production, our overall opex has not changed. In fact, it’s gone up by a couple of percentage points. I’m just trying to understand why — because between Q1 and Q2, there is a fall in revenue, but we’ve not seen a commensurate fall in expenses. It’s probably actually higher.
Pavan Aggarwal — General Manager (Production)
You are actually asking about opex?
Vishnu Kumar — Spark Capital — Analyst
Correct. Opex, operating expenses, correct.
Pavan Aggarwal — General Manager (Production)
The reason for that is very simple. In a force majeure situation, we are not able to capitalize many of our expenses, and actually make it to the — they get expense that year. It’s also that — this is primarily due to the force majeure situation in Mozambique, where — because we are paying holding costs for our orders at hand and also work in progress, these costs actually add to the opex. We are not able to capitalize these costs.
Vishnu Kumar — Spark Capital — Analyst
Understood, sir. And just I’m trying to understand the OVL capex for the next — this year and next year, is there a number? I mean, if you could just highlight that what the number would be?
Pavan Aggarwal — General Manager (Production)
See, every year, OVL has been regularly spending something like INR5,000 to INR6,000 crores of capex every year. Last year, it was marginally lower than INR5,000 crores. But we will continue to spend these amounts. This amount is purely for the capex for the existing projects, not factor-in any inorganic acquisitions that might happen in the meantime.
Vishnu Kumar — Spark Capital — Analyst
Okay. What is the debt at this entity level, sir?
Pavan Aggarwal — General Manager (Production)
The debt at present level?
Vishnu Kumar — Spark Capital — Analyst
Yes, correct, sir.
Pavan Aggarwal — General Manager (Production)
Our debt is around $4.6 billion to $4.7 billion.
Vishnu Kumar — Spark Capital — Analyst
Understood.
Unidentified Speaker —
This is OVL.
Pomila Jaspal — Director (Finance)
OVL.
Vishnu Kumar — Spark Capital — Analyst
Got it. Coming to the ONGC part, do we expect any capex increases next year? You did mention, our end of the year is going to take a dividend policy, our capex also has to be considered for next year. So, just trying to understand is there a thought to increase next year capex for ONGC?
Pomila Jaspal — Director (Finance)
Please. The thing is that, of course, our dividend policy is governed by that, but then, we — generally, we have the capex level of INR30,000 crores. But definitely, we are into so many MOUs and we are fructifying those MOUs, especially with regard to the green energy. So, we have to see for what all things we have to take us. So, we already have MOU with the Greenko and we already have MOU with — of course, that is with the approval of the government NTPC also, and then FICCI also. Then we are also having with Equinor. So, we have to see that — and now recently, with the Rajasthan Government also. So, we have to see that how we have to bring that MOU into the implementation mode and see for certain integration projects, especially, with regard to the renewable energy. So, that will definitely enhance our capex.
Vishnu Kumar — Spark Capital — Analyst
In case — I mean, in case some of these MOUs to fructify, what would be the capex probably we might have to invest in the next two years, three years?
Pomila Jaspal — Director (Finance)
I think, the Greenko itself, that is around $4 billion. So, that is upstream as well as the — then downstream also. So, they will be manufacturing through this electrolysis process the ammonia and they will be ammonia and hydrogen. So, all that total capex will be around $4 bilion.
Unidentified Speaker —
Yeah. But currently, for one to two years, it would be around $1 billion to $2 billion.
Pomila Jaspal — Director (Finance)
Yeah. $1 billion to $2 billion. Current — next one to two years.
Vishnu Kumar — Spark Capital — Analyst
Okay. So, today that number is not there, which will probably you will come for next year, if you this — if you’re going to invest this additional $1 billion to $1.2 billion?
Pomila Jaspal — Director (Finance)
Yeah.
Vishnu Kumar — Spark Capital — Analyst
Got it. I — my actual question was that our dividend policy between 40% to 55%. If our cash flows — additional cash flows allow us, can we go to that 55% of — you did mention about oil price, but anyways, we are around 75% as a net realization. And gas prices are also we are more or less assuming six to seven, we are there. Can we get to that 50%, 55% if this situation continues and our capex does not materially increase? Can we get to 55%?
Vivek Tongaonkar — Executive Director (Finance)
Please appreciate that what we have declared is just a interim dividend. And we are keeping an eye on the prices, which are extremely volatile. We may come out with another dividend depending on the realization that we get in the remaining part of the year. So, on the ultimate payout ratio, we will take a call at the end of the year.
Vishnu Kumar — Spark Capital — Analyst
Got it, sir. Thank you, and all the best.
Pavan Aggarwal — General Manager (Production)
Thank you.
Operator
Thank you. Next question comes from Mayank Maheshwari from Morgan Stanley. Please, go ahead.
Mayank Maheshwari — Morgan Stanley — Analyst
Yeah. Hi. Thank you for the call, sir. A few questions from my end. First was related to the marketing freedom on oil that you guys have got from sometime earlier this year. Can you just talk about — have you seen any better pricing and realizations because of this marketing freedom that you have got?
Pomila Jaspal — Director (Finance)
We have really got…
Anil Kumar — Chief Commercial
Mr. Mayank, there is a loud background noise basically from your end, I believe.
Mayank Maheshwari — Morgan Stanley — Analyst
Yeah. So, sorry. I was just talking about the marketing freedom on oil that the government has given for domestic production of oil. Is there better realizations that you have got on back of this now and how you’re thinking about the next year and the rest of this year itself in terms of discounts that you are kind of giving historically versus now versus the benchmarks?
Anil Kumar — Chief Commercial
Yeah. Thank you. The government has given demand complete marketing freedom. Pricing freedom was available earlier also. The marketing freedom, government has given from October 1. And we have auctioned the crude in month of October end for the offshore. And we have received very good response in the auction process. And we see that we have get the premium in addition to reserve price, which was marked to this Brent plus markup of $0.50. With the premium itself was around — maximum premium we got in one of the fields was $5.5 per barrel and minimum was $0.05. So, there is a — you see, the market — the crude market is very, very volatile. And due to Russian crude coming in different parts of the world, there is volatility — volatility will continue. But we are expecting better price in through auction.
Mayank Maheshwari — Morgan Stanley — Analyst
So, sir, just to kind of clarify this. So, the $0.05 to $5 premium that you’re talking about over Brent, this was earlier a discount that you used to get, correct? Is that fair, of $3 to $4?
Anil Kumar — Chief Commercial
There was no discount. In fact, our pricing was linked to benchmark crude of gone away plus GPW differentials. Now, if there is no concern of differential, because GBW differential itself reduced the price to the extent of $2 to $3 per barrel. So, that is the net benefit we’re getting through auctions because now it is benchmarked to a dated Brent. And plus, premium.
Mayank Maheshwari — Morgan Stanley — Analyst
Okay. So, you’re getting $2 to $3 discount has gone away plus the premium that you’re getting of for $0.05 to $5 odd. That’s the range you’re kind of getting?
Anil Kumar — Chief Commercial
Yeah.
Mayank Maheshwari — Morgan Stanley — Analyst
So now, is it fair to say what your premium…
Pomila Jaspal — Director (Finance)
And Mayank, another important point is that the pricing of crude oil, so that is based on the field-wise assay, which we carry out. And that determines the quality with the four-cut method. So, definitely — so once we are into this, so definitely, we will get a better price also. And that’s what we have seen in our — this time auction price also.
Mayank Maheshwari — Morgan Stanley — Analyst
Interesting point, ma’am. So, ma’am, is there a number that you guys have in your mind on an overall portfolio basis in the domestic side of premium amount you will be getting on an overall crude assays?
Pomila Jaspal — Director (Finance)
Yeah. I think it will be $3 to $4 per barrel.
Mayank Maheshwari — Morgan Stanley — Analyst
Got it. Okay.
Pavan Aggarwal — General Manager (Production)
But it is still — be mature, Mayank, what has happened is this is the first auction that we have carried out. It is for a period of three months only. As the market moves forward and we also come to know about the process, etc., the refineries also get to know the process, we would see how the prices move forward. However, we do expect that we should get a better price than what we were getting earlier on. The amount we would not be able to put a figure on currently immediately.
Mayank Maheshwari — Morgan Stanley — Analyst
Got it. Okay. No, that’s clear. And the second question was more related to your VAP production, especially, in the hedge. We have seen that it’s not yet come back to the normalized levels we had seen historically. So, any update there of when you think things can kind of come back to normal there, or it’s the new level we’ll have to now assume that it’s a lower production on the hedge?
Pavan Aggarwal — General Manager (Production)
No, the hedge production was lower, one, partially, because of the price high — LNG, it’s based on LNG, and that LNG prices have shot up very high. So, that was one part of the story. But we do expect that we should be, as moving forward, the prices also go down, and the prices of the products are better. We would be increasing — our production should stabilize and should be better than what it has been in the recent past.
Mayank Maheshwari — Morgan Stanley — Analyst
So, no technical issues or anything around production apart from this economic point that you talked about?
Pavan Aggarwal — General Manager (Production)
No, there is no technical issue at all.
Mayank Maheshwari — Morgan Stanley — Analyst
Perfect. Thank you. That’s all from my side.
Pavan Aggarwal — General Manager (Production)
Thank you, Mayank.
Operator
Thank you. Next question comes from Abhishek Nigam from B&K Securities. Please, go ahead.
Abhishek Nigam — B&K Securities — Analyst
Yeah. Thank you for the time. So, my question was on Mozambique. And there is a — that situation is still evolving, and we still don’t have clarity on when that project is going to start. And meanwhile, there is a lot of time that got lost. There is a lot more — I’ve seen development that is happening now, it wasn’t what was happening three years ago. So, my sense is costs would have also got increased a bit. So, in this background, is there a risk of further impairment on that project? That’s my only question.
Pavan Aggarwal — General Manager (Production)
You have already detailed out the issues with the Mozambique project. However, the situation is not as bleak as you made it sound in the current scenario, because there has been significant progress on the ground with regards to the security situation. SAMIM forces, S-A-M-I-M forces and the Rwandan forces have been on the ground for more than a year now. They have managed to pair the majority of the Cabo Delgado province where the auctions are taking place. And there has been return of the IDPs, that internally displaced persons, and also the authorities have taken over and situation has resumed. The — we, the consortium, and the operator are very hopeful of resumption of construction operations in H1 of next calendar year. That is what Total is envisaging. So, we should see significant effort on the ground. As far as impairment is concerned, we haven’t begun in Mozambique project for the present H1. We will review the situation again during our annual accounting process next year.
Abhishek Nigam — B&K Securities — Analyst
No worries. Thank you so much, sir. [Indecipherable]
Unidentified Speaker —
Yeah. Thank you. Can we have — because we are running short of time now, can we have last two questions, please?
Operator
Sure, sir. Next question comes from Hemang Khanna from Nomura. Please, go ahead.
Hemang Khanna — Nomura — Analyst
Hi, sir. Thank you for taking my question. Sir, you had earlier mentioned about the volume numbers for 98/2. Could you please also help us with the FY ’25 numbers, how you’re looking at that? And in related to that, could you also share — you had mentioned that earlier, but what is the peak volume for oil and which year is it expected in? I missed that part, please.
Pavan Aggarwal — General Manager (Production)
I think I have already mentioned, for FY ’25, our oil production envisaged is 2.178 MMT, and gas is around 3.831 bcm. As we envisage the peak production in the financial year ’25, to the tune of 45,000 barrels of oil per day, and 12 million cubic meters of gas per day.
Hemang Khanna — Nomura — Analyst
Got it, sir. Thank you very much. And sir, lastly, I know the — obviously, the situation is still fluid given the geopolitical issues. But what would your sense be for OVL production for FY ’24 ’25?
Pavan Aggarwal — General Manager (Production)
For FY which?
Hemang Khanna — Nomura — Analyst
FY — financial year ’24 and financial year ’25.
Vivek Tongaonkar — Executive Director (Finance)
We’re producing a little lower 12 MMT for the past couple of years and we had planned to maintain the same going forward. However, in the present year as you know, Sakhalin has stopped production since April. And that has majorly impacted our production apart from a flood situation in South Sudan, which has been offset due to our increase in production from Colombia. But given the issues in Sakhalin, we would be aiming at something close to 10 MMT of O+OEG for this financial year. For the next two financial years, it could be — not the correct time to estimate, we have to maintain 12 MMT of production, should Sakhalin come back to its original production as it was in time of April 2020.
Hemang Khanna — Nomura — Analyst
Got it. Thank you so much, sir. Thank you for answering the questions.
Operator
Thank you. The last question comes from Mr. Sumeet Rohra from Smartsun Capital Private Limited. Please, go ahead.
Sumeet Rohra — Smartsun Capital Private Limited — Analyst
Thank you, madam. Hello and good afternoon to the ONGC team. Ma’am, I would like to just get your sense on how do you basically see the government’s approach towards the windfall tax, because I mean, if I’m understanding correctly, the government has always mentioned that when crude prices go below $80, it’s something like they will consider to withdraw. So, ma’am, crude is basically now holding between $90 and $100. So, effectively, is my understanding correct that basically for a matter of $10 or $15, I mean, the entire governance and transparency which was there in the oil and gas sector is now ceased because of $15? Because, I mean, technically — I mean, the reason I ask you this is because we have investments in downstream as well. So, the thing is that what’s the thought process of the government, right? Because, effectively, it’s only a matter of INR5 or INR10 of diesel, which is basically under recovery. So, what is the thought process of the government, madam, in terms of the oil and gas sector?
Pomila Jaspal — Director (Finance)
So, I think government is quite supportive. That is what we have seen in the last two, three months since this levy of this additional excise. So, although, we have returned to the government that we have — please, withdraw this levy, because we have our capex plans also and we require the funds with our cash flows. This is the time when we can compensate for the other capex projects also. We can do aggressive exploration. Although, they have ceased off the matter, but at the same time, so since it is governed by Ministry of Finance, so, definitely, government is in a balancing situation. So — because you know that recently this INR22,000 crores has been given to the downstream also, out of this windfall tax only. So, that is what they have to balance it out. But then, even with the levy of this additional excise, our position is quite comfortable. That’s what we have seen in the yesterday’s financial results also. They’ve been quite supportive.
Sumeet Rohra — Smartsun Capital Private Limited — Analyst
Correct. Madam, but — yes. No, but, madam, I mean, so, can I just ask one thing. See, I mean, the thing is that all companies whether upstream or downstream, all have got capex plans, right, and everybody needs to invest. So, my only humble point here is that just for a matter of INR5 or INR10 rupees of diesel, I mean, is it — does it make economic sense to hurt the economic interest of the oil and gas sector, because I mean, valuations have completely got distorted, right, I mean, whether you look at it in terms of whichever companies in the oil and gas — even if you take ONGC’s stakes, for example, I mean when ONGC used to make half its profit, it was valued at twice the market cap, right? So, effectively valuations are getting hurt by this kind of interference by the government, right, because on one side they’re raising gas prices, but on the other side, they’re not raising the fuel prices. I mean, it’s totally contradictory, right? So, my humble request is can you get some clarity, please, hopefully by the next call we have?
Pomila Jaspal — Director (Finance)
We will, definitely. We are already in communication with the government, and we will continue taking up with the government in this regard. And we will try to set off on that these concerns of our investors also to some list.
Sumeet Rohra — Smartsun Capital Private Limited — Analyst
Yeah. Because, I mean, madam, if you see Saudi, has by cutting production is defending $90 in oil, and if they continue to do that for the next several years. So, I mean — so the governance in this space can’t be restricted because of $15 of crude, right? So, I mean, I think really you should intervene in this?
Pomila Jaspal — Director (Finance)
Sure. We will definitely communicate. Yesterday also in the — our board also, our government nominee was there. So, he talked about that matter and he is also very supportive. And we will continue doing that, okay? Thank you.
Sumeet Rohra — Smartsun Capital Private Limited — Analyst
Thank you so much, madam. Thank you. Thank you so much. Think about your investors. Thank you, madam.
Pomila Jaspal — Director (Finance)
Yes.
Operator
Thank you. Now, I hand over the floor to Mr. Tongaonkar, Execute Director, Chief Corporate Finance, for closing remarks.
Vivek Tongaonkar — Executive Director (Finance)
Thank you very much. On behalf of ONGC, we would like to thank our investors, analysts over here for taking this call. And we hope that we have been able to take care of the issues that have been raised by the investors and analysts. And we hope that in future also we will continue to meet on whenever we have our results. And hopefully, we should have good results in the future also. Thank you so much. Bye.
Operator
[Operator Closing Remarks]