Oil and Natural Gas Corp. shares rose during early trade on Monday after it started commercial supply of gas from its offshore facility in Daman. The Daman Upside Development Project, developed with a capital expenditure of approximately $1 billion, commenced monetisation on Sunday by flowing gas from Platform B-12-24P to the Hazira Plant.
The successful execution, completed in less than two years, underscores strong project management and innovative drilling techniques, setting the stage for phased production ramping, ONGC said in a stock exchange filing.
The DUDP is located about 180 kilometres northwest of Mumbai and about 80 km south of Pipavav, Gujarat. The project went live with the commencement of production from its first well in August 2016.
The new gas supply comes amid the disruption in imports from Persian Gulf producers since the outbreak of the Iran war a month ago. Tehran has allowed limited shipping through the narrow Strait of Hormuz.
India is heavily reliant on imports from the Gulf for natural gas. The government has instructed oil and gas companies to ramp up domestic production.
ONGC Share Price Movement
ONGC share price gained as much as 1.8% after market open to Rs 286.9 on the NSE, compared to a 1.3% fall in the benchmark Nifty 50. The stock is up 19% year-to-date, among the top gainers on the blue-chip index.
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