In a big boost to ONGC, the government has approved up to 25 per higher price for natural gas the state-owned firm may produce from new fields.
The oil ministry on June 28 issued guidelines for the price national oil companies like ONGC can charge for natural gas they produce from new fields in the blocks given to them on nomination basis, official sources said.
ONGC will get USD 5.25 per million British thermal unit for the gas it produces for new fields in nominated blocks in the western offshore and USD 5 per mmBtu for fields in Cauvery basin. It will get USD 4.75 per mmBtu for fields in Krishna Godavari basin off the AP coast.