India Oil, Natural-Gas Output Falls in May

NEW DELHI--India's crude-oil output was down in May while natural-gas output continued a downtrend that started about four years ago, federal oil ministry data showed Tuesday.

Crude-oil output fell 0.3% year over year to about 3.16 million metric tons, or 747,187 barrels a day, the data showed. The government's target was 3.26 million tons.

Less output from ageing wells of state-run Oil & Natural Gas Corp. (500312.BY), India's largest oil-and-gas company by output, hurt production, the ministry said.

Natural-gas output fell 2.2% to 2.94 billion cubic meters. That, too, was short of the government's estimate of 3 billion cubic meters.

Gas output has been declining mainly because of lower production at Reliance Industries Ltd.'s (500325.BY) Krishna Godavari D6 block off the east coast--the country's largest gas deposit. Lower-than-expected production at some wells operated by state-run explorers, including Oil & Natural Gas Corp., as well as delays in commissioning other projects have hurt output.

India meets about three-quarters of its energy requirements through imports and a shortfall in local output puts mean it has to buy more overseas.

Write to Saurabh Chaturvedi at [e-mail]

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