The ONGC's interest pay out for the year came down by 17 per cent, but it paid 27 per cent more in taxes and depreciation showed a growth too. The revision of pipeline transportation rates with retrospective effect brought home Rs 819.68 crore of arrears and gave a boost to ONGC's gross profit.

The oil exploration and production (E & P) company's jump in turnover to Rs 15,224 crore from Rs 13,235 crore the previous year, was partly possible because of an increase in gas prices, following thedismantling of the administered pricing system. Natural gas prices were linked to international oil prices in October last year.

Other income gave a boost to the ONGC revenue too and went up by 18.69 per cent last year, to Rs 724.86 crore from Rs 610.70 crore the year before. If ONGC's sales and income went up, so did expenditure. Last year the company spent Rs 800 crore more. It began production at a new gas bearing structure (B-121/119) in the Bombay offshore and is currently producing through four wells.

Two new well platforms in the Heera field in Bombay offshore also began production during the year and is now contributing nearly 10,000 barrels of oil per day. It also commissioned the In-situ Combustion EOR projects at three sites, which should enhance the oil recovery of these fields to 35 per cent from 15 per cent now.

During the year, ONGC produced 28.35 million tonne of crude oil, which was 0.5 million tonne more than its target. It supplied 18.62 billion cubic metres (BCM) of gas compared toan annual target of 17.76 BCM. The production of liquefied petroleum gas (LPG) also went up marginally, to 1.14 million tonne. The company produced more value added products like C2-C3 and NGL.