CAG slams ONGC for low discoveries, stock falls
Posted: Tue Aug 28, 2012 1:41 am
Shares in ONGC fell more than 1 per cent after the Comptroller and Auditor General's performance audit of the state-run oil and gas explorer found faults with the working of the company. The report examines the hydrocarbon exploration efforts (2007-08 to 2010-11) of ONGC to ascertain whether the company's exploration efforts were planned and executed properly.
The government auditor said ONGC's lack of adequate efforts and results in new fields, coupled with the ageing of producing fields, is a matter of concern for future.
The report further says that ONGC’s exploration processes resulted in cost overruns and shortfalls in survey and drilling targets.
Performance accountability arrangements for ONGC did not place the desired emphasis on exploration efforts, the CAG report noted.
There was a lack of independent assurance on its technology and its HR policies and practices revealed critical gaps, the CAG report said.
At 1.18 p.m., the stock traded 1.3 per cent lower at Rs. 283.90 against a 0.8 per cent drop in the BSE oil and gas index.
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The government auditor said ONGC's lack of adequate efforts and results in new fields, coupled with the ageing of producing fields, is a matter of concern for future.
The report further says that ONGC’s exploration processes resulted in cost overruns and shortfalls in survey and drilling targets.
Performance accountability arrangements for ONGC did not place the desired emphasis on exploration efforts, the CAG report noted.
There was a lack of independent assurance on its technology and its HR policies and practices revealed critical gaps, the CAG report said.
At 1.18 p.m., the stock traded 1.3 per cent lower at Rs. 283.90 against a 0.8 per cent drop in the BSE oil and gas index.
visit: Stock Market Investment Tips / Best Share Market Tips