New Delhi, July 26 (PTI): Oil and Natural Gas Corporation (ONGC) today reported an 8 per cent increase in net profit at Rs 2134.54 crore in the first quarter ended June 30 as against Rs 1980.80 crore in the same period last year.

Sales grew 12 per cent to Rs 7927.84 crore in April-June compared with Rs 7056.22 crore in the same quarter a year ago.

Crude oil output at 6.25 million tonnes exceeded the target by 3.3 per cent while gas production was 5904 million standard cubic meters (mmscm).

Commenting on the future trends, ONGC chairman and managing director Subir Raha said that given the prevailing trend of international crude and product prices, sales revenue are expected to increase corresponding to higher production in the coming months.

He said the recommendations of the Group of Ministers to substantially reduce the outgo on account of subsidies on natural gas would help the company save Rs 1000 crore on annualised basis.

Deepwater tender

ONGC today awarded the multi-million dollar tenders for deepsea drill rigs to Transocean Inc of the US and Dolphin Drilling of the UK.

The award for two deepsea drillships is valued at close to $ 835 million, senior company official said after a meeting of the ONGC board which approved the award.