New Delhi, Oct. 3: Oil and Natural Gas Corporation (ONGC) has doubled the net dividend paid to the government to Rs 3,598 crore for 2002-03. ONGC chairman Subir Raha handed over the final instalment of Rs 1,559 crore to Prime Minister Atal Bihari Vajpayee here today.
ONGC had earlier paid an interim dividend of Rs 2,039 crore in February. The total dividend payout is Rs 4,515.3 crore, inclusive of dividend taxes. The upstream oil major had paid a dividend of Rs 1,679 crore to the government in 2001-02.
The net profit of the company soared to Rs 10,529.3 crore during the fiscal with the switching over to international crude prices after the dismantling of the administered price regime last year. The average price that ONGC earned for its crude during 2002-03 was $29.6 per barrel.
ONGC also announced it had signed the crude purchase agreements with downstream oil companies like Indian Oil, Bharat Petroleum and Hindustan Petroleum for the current fiscal. The average price of crude for the April to August period works out to $29.4 per barrel.
ONGC’s sweet crude has been benchmarked to Nigerian sweet crude “bonny light”. It has also signed an agreement with subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL) for supply of sweet crude at arms-length pricing. This does not include transport costs that are incorporated in international prices. The crude supplies to other coastal refineries such as HPCL’s Vizag refinery is based on the same principle.