Dallas-based DeGoyler and MacNaughton (D&M), in a report submitted to the government on Tuesday, has put a question mark on the future production from the five ONGC discoveries. It has established continuity of the reservoir in three blocks of Reliance Industries and ONGC.

The US-based consultant had in October given its interim report to the Directorate General of Hydrocarbons (DGH). The upstream regulator had then invited comments from the two companies on the findings.

However, the company sees reduction in the same next fiscal year, to the tune of 20-30%.

Narendra K Verma, managing director of OVL told FE, “The Mozambique Parliament has recently approved a new law, which allows cost-recovery for both the oil field and the (LNG) terminal.”

Hindustan Petroleum Corporation Limited (HPCL), Oil & Natural Gas Corporation (ONGC) and Cairn India have plunged more than 5% each, while Indian Oil Corporation (IOC), Reliance Industries and Bharat Petroleum Corporation (BPCL) down 3%-4% on the BSE.

The oil exploration major reported a 1% increase in net sales to Rs 20563.19 crore in Q2 September 2015 over Q2 September 2014. ONGC's crude oil, condensate and natural gas production increased 1.4% to 12.976 million tonne of oil equivalent in the second quarter when compared year-on-year.

It reported a net profit of Rs 4,842 crore, against Rs 5,444 crore in the same quarter in 2014-15. However, the profit was ahead of Bloomberg consensus estimate of Rs 4,601 crore. The company also gave subsidy to oil marketing companies (OMCs).

The borewell, which was dug 20 years before and abandoned by a farmer, recently got active and some biogas also surged to the surface yesterday, an ONGC release said today.

"We want to intensify our exploration activities," said Sahshi Shanker, director of technology and field services at ONGC.

ONGC Videsh Ltd (OVL) hopes to capitalise on cheaper assets after a slump in oil prices and Prime Minister Narendra Modi's diplomatic efforts to boost the global presence of Indian firms.