Oil & Natural Gas Corporation Limited CC-Dec23.pdf ·
Yes, FPSO, the day rate is currently including GST , USD 7,18,000, that is the per day cost for FPSO. Apart from that as you know, we have the normal other operating costs like material consumption would be there. Then there could be some work over operations, the normal typical E&P industry costs which we incur for producing. So, those would be there. There could be some water injection costs as well. So, the overall cost picture will be clear once we start producing fully. I mean, the gas production is now we are expecting, as earlier Mr. Pavan was saying that in the first half of next year somewhere, maybe June, July. So, based on that, the cost will crystallize. But yes, the substantial part of the cost there for oil is the FPSO. The other facilities are yet to be in stalled over there. So , once it is installed, we'll have a clearer picture on that.
Yes. Normally the CapEx cost that we allocate is through by way of depletion. As well as the cost pertaining to FPSO is concerned it's like Ind AS 116 on the base of the lease. So, we have already started booking the depreciation and depreciation part through the lease part. So , you might have seen that there's some substantial increase in the depreciation in the current quarter as well due to the lease booking which you have already done for the FPSO. So, some part of the hit we have already started taking on that. Oil and Natural Gas Corporation Limited - 9 - 12.02.2024. So that would be a regular expenditure by way of booking through lease and the facilities that we are going to install that would be on the base of the reserve there, and reserve to production ratio. Normally, on average, around 10% is the reserve to production ratio. So, 10% annual, the expenditure that we incur on the CapEx is by way of depletion.