Even as it charts a future roadmap with ambitious targets for increased production and a deeper foray into sustainable energy, India’s largest oil and natural gas producer is also eyeing distressed overseas assets to expand its global footprint.
While current geopolitical uncertainty presents opportunities for acquisitions, ONGC will decide on overseas expansions based on pricing and strategic national interest, Arun Kumar Singh, Chairman & CEO, has said.
Speaking to mediapersons after the 69th AGM of the country’s largest oil and gas explorer on August 29, in New Delhi, Singh unequivocally declared, “For overseas assets, we take an opportunistic approach. If an asset is in a geopolitically stable country and offers reasonable certainty, we will consider it. But we don’t have a fixed template for foreign investments; we assess each opportunity on its own merit.”
Singh’s confidence stems from ONGC being among the select global energy players with a cash surplus. As of the quarter ending June 30, the company holds approximately ₹3.264 trillion ($37.01 billion) in cash and short-term investments. This liquidity buffer gives the company a competitive edge in bidding for distressed global assets.
With war in Ukraine now in its third year and the recent punitive tariffs imposed on India by Donald Trump over its Russian oil imports, one of the biggest talk points these days in global energy circles is whether, as the world’s third-largest energy consumer, India would be buying more oil and gas assets in Russia. In his trademark tongue-in-cheek style, Singh observed that Russia was one among the geographies of interest to ONGC.
“It can be anywhere in the globe, and the globe includes Russia.”
He pointed out that while the world was fixated on Russia, new opportunities were emerging elsewhere as well. A case in point was Mozambique, where ONGC acquired oil blocks in August 2013. On August 27, the presidents of Rwanda and Mozambique signed a peace agreement as part of an effort to end the six-year-long conflict.
“That’s a major development. Rwandan forces are providing security to our partners on the ground. In our view, Mozambique could be ready to pump gas by 2028.”
Singh also had a subtle message for those seeking curbs on commodity imports from Russia.
“Russia will continue to be a major exporter of oil, gas, and minerals. Anyone who thinks the world can do without Russia is mistaken. That’s just geography.”
ONGC is currently active in 15 countries, including Russia, Venezuela, Sudan, and Mozambique, through its subsidiary ONGC Videsh Ltd (OVL).
Responding to a query on dividend income stuck in Russia and Venezuela—both under international sanctions—Rajarshi Sengupta, Managing Director of OVL, said the company remained hopeful of an early resolution. Due to banking restrictions, an estimated $350–400 million is currently held in rouble accounts with Russian banks. In Venezuela, OVL has $600 million in unrealised dividends, owing to constraints on crude offtake and financial transactions.
“In Venezuela, we have requested OPEC clearance to gain more operational control and enable crude offtake. Most Indian refineries are now equipped to process Venezuelan crude. Once sanction exemptions are granted, we expect progress on that front as well,” said Sengupta.
Singh clarified that overseas exploration was not a current priority with ONGC.
“Our focus is on acquiring, producing or near-producing assets. If you look at the global landscape, most assets available today fall into that category. For instance, all Russian facilities we are considering are producing assets.”
From Shell’s strategic entrenchment in the Middle East during the 20th century to the present-day global manoeuvres of SINOPEC, Petrobras, and ONGC across Africa, South America, and Asia, oil and gas exploration companies have long served as instruments of geostrategic influence to expand the global footprint of rising superpowers. In particular, ONGC’s international ventures carry heightened significance amid the emergence of a multipolar world order.
Bombay High Revival
Talking about the technical service provider agreement with BP for boosting production from the country’s oldest and most iconic offshore field at Bombay High, Singh said the initial findings raised optimism.
“The partnership began in April, and we are now in August; just four and a half months in. But I can say the green shoots are good. I would rather not say more and risk being criticised either way. It’s early, but promising.”
Elaborating on the effort, Pankaj Kumar, Director of Production, said the requisite data has been collected, with a dedicated team from ONGC working on the project.
“Smaller teams have been formed to improve interaction. Preliminary indications are good. Once the study is complete, the results will be visible.”
BP will provide technical expertise to enhance recovery from mature reservoirs using advanced technologies. If successful, crude oil production is projected to rise by 44 per cent and gas output could increase by 89 per cent over the contract period. Engineers India Ltd (EIL) is complementing BP’s reservoir-focused strategy by ensuring engineering and execution excellence across platforms and pipelines.
Singh made a wry remark about the economic losses estimated from Trump tariffs.
“We have produced 550 million tonnes so far. If 30 per cent equals 750 million tonnes of oil plus oil equivalent gas, then 45 per cent could yield another 370 million tonnes. At half a billion dollars per million tonne, that’s $150–200 billion in value, enough to offset all tariff-related losses over the years.”
Bombay High is part of the company’s target to triple output. In FY2026, ONGC has targeted to enhance production from its domestic oil and gas assets by 44.546 million tonnes of oil equivalent (MMTOE), up from 40.14 MMTOE in the previous fiscal year.
On the refining front, the company is progressing on a new facility on India’s West Coast. “Half the job is done. Two or three pieces still need to fall into place,” Singh said. He, however, declined to disclose capacity or exact location details.
Future Forward: From Barrel to Reactor
Elaborating on the outlook for oil and gas prices, Singh said they were expected to hover around current levels—plus or minus 60 per cent—through the last quarter of this year. Beyond that, a lot would depend on how the market evolved.
“If exploration and production slow down, prices will inevitably rise again. Demand continues to grow steadily. In fact, last year saw a daily increase of around 0.9 million barrels, roughly 1 per cent growth. If investment doesn’t keep pace, we will likely see upward pressure on prices in the next one to two years.”
As part of the company’s transition to sustainable energy, he reiterated their interest in nuclear power. As part of its Nuclear Energy Mission, the country is looking at installing 100 small modular reactors by 2047.
“We have extensive information and understand where and how nuclear energy can be used. The technology is available. However, we are awaiting legislative clearance.”
He said that once Parliamentary approval is secured, policy clarity will offer greater visibility into the economics and ONGC’s potential participation.
-Manish Pant