New Delhi, May 12 -- Oil and Natural Gas Corporation (ONGC) share price surged 6.5% on Tuesday, 12 May, after the government reduced royalty rates on crude oil and natural gas production across multiple field categories, including deepwater and ultra-deepwater blocks, to boost domestic exploration.

The updated framework is anticipated to advantage state-owned companies ONGC and Oil India, as the royalty on onshore crude oil production has been reduced from 16.66% to 10%.

Royalty on offshore crude production has been cut to 8% from 9.09%, while the rate on natural gas has been lowered to 8% from 10%, following the introduction of a new flat deduction formula.

(more to come)

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