Crude oil output slips 6.3% in May

Crude oil production fell 6.3% year-on-year in May while natural gas output rose 19%, according to the petroleum and natural gas ministry data.

A 9.6% drop in ONGC’s output was primarily responsible for the overall production contraction. Oil India’s production fell 2.1% while output from the fields operated by private players increased 0.7%.

ONGC is facing a natural decline of output from its ageing fields. In May, oil and gas production was also affected by cyclone Tauktae that hit Arabian sea and disrupted ONGC’s operation off the Mumbai coast. Crude oil imports rose 18% in May from a year ago. The import of refined products fell 26% while their export fell 2%. Overall consumption of petroleum products in the country contracted 1.5% in May as lockdown restricted mobility and economic activity.