ONGC hits 52-week high as oil production begins in KG deep water block

Shares of state-run Oil and Natural Gas Corp (ONGC) traded over a percent higher to touch a new 52-week high of Rs 220 a day after it commenced production from its deep water KG-DWN-98/2 block, off the coast of the Bay of Bengal.

This development is set to boost ONGC’s overall oil and gas output by 11 percent and 15 percent, respectively, the company said in a statement on January 7.

At 1:38 pm, the counter was trading at Rs 218.5, up 0.9 percent from the previous close on the NSE. Over the past year, the stock has gained over 47 percent on the exchanges.

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The remaining oil and gas fields of the block are expected to become operational by mid-2024. At its peak, the field will produce 45,000 barrels of oil per day and over 10 million metric standard cubic meters per day of gas.

In an Interaction with CNBC TV-18, Shivangi Sarda from Motilal Oswal Financial Services suggested that the stock has been consistently forming higher highs and higher lows on both weekly and daily frames, indicating a bullish trend. She further recommended a buy with a target price of Rs 230 levels and a stop near Rs 250. Over the past month, ONGC shares have gained more than 11 percent.

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