State-run oil companies spend one-fifth of annual capex target in Q1
State-run oil companies have spent Rs 20,000 crore, nearly a fifth of their annual capex target of Rs 1,05,000 crore, in the first quarter this year, as per the Oil Ministry data.
Bharat Petroleum (BPCL NSE -0.67 %) has spent at the fastest pace among state-run companies, using up 39% of its annual target of Rs 10,000 crore in the April-June period. The refiner, which is seeking a new owner, is investing in a range of projects from pipelines to petrochemicals facility, marketing infrastructure and city gas.
Companies faced many hurdles in executing their projects during the first quarter as the second wave of Coronavirus devastated the country, leaving many workers and families sick and restricting mobility for men and material. As states have lifted lockdown restrictions now, projects are gaining momentum, an industry executive said.
Last year, it was worse for these companies as lockdowns across several countries slowed the movement of equipment and experts from abroad while project sites faced a shortage of workers for months as tens of thousands of labourers had gone back home. This year the projects faced limited restrictions.
Indian Oil, the nation’s largest refiner, has spent 14% of its annual target of Rs 28,500 crore in the first quarter. Hindustan Petroleum, another refiner, has invested 21% of its target of Rs 14,500 crore.
Oil and Natural Gas Corp (ONGC NSE 0.87 %), which has the highest annual capex target among state-run companies, at Rs 29,800 crore, spent Rs 5,200 crore during the April-June quarter. This is 17% of the annual target.
Oil India has spent Rs 1,000 crore, nearly a fourth of its annual target of Rs 4,100 crore. GAIL, the nation’s largest natural gas marketer and transporter, used up 16% of its target of Rs 5,900 crore.
The Economic Times 28-07-2021