ONGC would receive a price that is 20 percent higher than the regulated APM (Administered Price Mechanism) price from its new wells. This is positive news for the company as it will help them generate more revenue from their oil and gas reserves. With these developments, ONGC is well-positioned to take advantage of the growing demand for energy in the country and continue to play a critical role in India's energy security.

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In an interview with CNBC-TV18 (accompanying video), Arun Kumar Singh, Chairman and CEO of ONGC said that from new wells, ONGC will get a price of 20 percent higher than the APM price.

He said, “From new wells and well interventions, we will get a price of 20 percent more than the APM price. APM price at today's formula of 10 percent of crude is 7.92. So, effectively from new wells and intervention wells, ONGC will give between $9.5-10/mmbtu depending on what price crude varies.”

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Singh also revealed that the new wells will add 8-10 percent to ONGC's production. This is a significant boost to the company's output and will help them meet the growing demand for energy in the country. As the new wells will have prices of $9.5-10/mmbtu depending on crude prices. This means that the company will earn more revenue from the sale of gas from these wells.

Furthermore, ONGC will have the option to sign long-term agreements for gas produced from the new wells. This is an important development as it will give the company greater stability and predictability in its revenue streams. Long-term agreements will also provide ONGC with a sense of security and enable them to plan their operations more efficiently.

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In addition to these developments, Singh also mentioned that old wells would be replaced by new wells to a large extent in the next 3-4 years. This is a necessary step for the company as it will help them maintain their production levels and ensure that they continue to meet the growing demand for energy in the country. The replacement of old wells with new ones will also help ONGC improve their efficiency and reduce its operational costs.

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(Edited by : Vahishta Unwalla)