MUMBAI, January 15: The fall in the rupee value would affect profitability of the Oil and Natural Gas Corporation (ONGC) by Rs. 200 crore, according to its chairman B C Bora.ONGC has a considerable amount of dollar payments due in the next three months and if the rupee remains at the current level, it would effect profitability, he told newspersons here today.
This depreciation would, however, have little impact on oil prices as they are still administered, while international prices can be expected to remain steady during the year, he said.
Willingness of the US to continue talks with Iraq is assign that Iraq would enter the market this year and the South east Asian crisis could reduce the offtake from that region, he said. Production at ONGC was expected to be at last year's level of 28.6 million metric tonnes, he added.
Earlier, addressing the inaugural session of the Southcentral Asia chapter of international association of drilling contractors, Bora said, "ONGC has identified deeper water
exploration as a thrust area and very soon we will be making our first''.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
