State-run oil firms plan to spend almost Rs 1 lakh crore next year, with Oil & Natural Gas Corporation’s expenditure set at one-third of the amount, as per the budget.
The planned capex of Rs 98,520 crore for FY21 is about 3.7% higher than the Rs 95,000 crore budgeted for the current fiscal, of which state oil firms have spent about two-thirds in the nine months ended December.
A total of Rs 52,000 crore will be spent on exploration and production next year, compared with Rs 48,400 crore this year. Spending on refining and marketing is set to fall by Rs 1,000 crore to Rs 41,600 crore, while for petrochemicals, it is set to expand by Rs 1,000 crore to Rs 4,750 crore.
ONGC’s spending budget is Rs 32,500 crore for FY21, compared with Rs 31,900 crore for FY20. It has spent about 60% of the current year’s target in the nine months ended December. ONGC is pursuing new discoveries and increased output from ageing fields.
Its unit Hindustan Petroleum Corporation has used up almost all its initially planned capex of Rs 9,500 crore this year after upgrading its refineries and building pipelines and marketing infrastructure. HPCL’s revised capex target for this year is Rs 11,500 crore, which is the amount proposed for FY21.
ONGC Videsh, the unit responsible for overseas projects, plans to spend Rs 7,200 crore in FY21, a little higher than the revised capex target of Rs 6,590 crore for the current year.
Indian Oil Corporation, the country’s top refiner, plans to spend Rs 26,231 crore in FY21, slightly higher than the targeted Rs 25,000 crore for the current year.