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ONGC jumps 9% after clarification on fire incident in Navi Mumbai plant

Shares of Oil and Natural Gas Corporation Ltd. (ONGC) rose over 9% intraday on Thursday after the oil and gas company issued a clarification on the fire accident at ONGC's oil and gas processing plant in Uran processing unit.

twitter-logo BusinessToday.In        Last Updated: September 5, 2019  | 14:00 IST
ONGC jumps 9% after clarification on fire incident in Navi Mumbai plant
ONGC formed a gap up chart pattern with the opening bell and later rose 9.03% to touch an intraday high of Rs 129.8 on BSE, against the last closing price of Rs 119.05.

Shares of Oil and Natural Gas Corporation Ltd. (ONGC) rose over 9% intraday on Thursday after the oil and gas company issued a clarification on the fire accident at ONGC's oil and gas processing plant in Uran processing unit.

ONGC formed a gap up chart pattern with the opening bell and later rose 9.03% to touch an intraday high of Rs 129.8 on BSE, against the last closing price of Rs 119.05.

ONGC stock has gained 7.55% in the last 2 sessions. The volume traded today, amounting to 13.5 lakh shares and 228.7 lakh shares on BSE and NSE, has already crossed yesterday's total volume. The stock has moved above the 5 and 20 day moving averages but trades lower than 50, 100 and 200-day moving averages.

After the major fire accident at ONGC oil and gas processing plant in Uran near Mumbai, the Delhi-headquartered oil and gas company issued a clarification notice to the exchanges on Wednesday.

"The accident occurred near Demineralized Water Plant (Oily Water Sewage Pit) and CISF security cabin which was outside the main process area. All out efforts were made to control the situation and fire was brought under control within a short span of time with the internal safety provisions aided by MARG (Mutual Aid Resource Group)," the company said in its BSE filing.

"Gas processing was restricted to maintain supplies to internal power generation and also to meet the requirements of Mahanagar Gas Limited and the remaining gas quantities are diverted to the other processing unit of the Company at Hazira Plant", the filing added.

The regulatory filing also added that "Three CISF fire personnel who had come along with fire tenders and our Resident Production Superintendent succumbed to fatal injuries." The company further said that the offshore crude supply remained unaffected from the unfortunate accident.

"We do not see a major impact of the fire incident at Uran plant on ONGC gas sales in 2QFY19. However, In July'19, ONGC's gas sale fell by 3.4 per cent YoY led by 1.2 per cent fall in production and higher internal consumption," Yogesh Patil, Research Analyst at Reliance Securities had said on Monday.

In a seperate developement, India's foreign secretary said on Wednesday that India and Russia are targeting $30 billion of annual trade by 2025.

"Seeking to boost bilateral trade from its current $11 billion, the two countries announced deals in sectors including energy, defence and shipping after a meeting between Russian President Vladimir Putin and Prime Minister Narendra Modi at an economic forum in Vladivostok," Reuters reported. Following this news, shares of major oil marketing companies were trading higher.

As of 1235 IST, shares of ONGC were trading 4.66% higher at Rs 124.60 on BSE.

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