Domestic production of crude oil in August fell 6.3% from a year earlier while natural gas output dropped 9.5%.
Crude oil output fell to 2.6 million metric tonnes in August, driven by a 17.5% contraction in production from the fields operated by the private sector and 11.4% drop in Oil India fields. Output from ONGC fields was nearly flat.
The near-absence of new producing fields and slow efforts at enhancing recovery from ageing fields have weighed on the country’s oil production for years. With a big dip in private sector fields lately, the overall output contraction appears to be sharper this financial year at 6.1%. The contribution from fields operated by the private sector in overall oil production has dropped to 24.3% this year from 27.6% last year.
Natural gas output is also struggling with 9.5% drop in August from a year earlier and 13.2% fall during April-August.