ONGC’s Q1 gains were buoyed by rising revenue from new well gas, which crossed ₹17 billion—₹3.3 billion above the administered price mechanism (APM) rate—as the company stepped up output from premium-yielding sources.
India’s largest oil and gas explorer, Oil and Natural Gas Corporation (ONGC) has reported a consolidated net profit of ₹115.5 billion for the first quarter of FY2025-26, marking an 18.2 per cent increase over the ₹97.8 billion posted in the same period last year. The rise comes despite a dip in gross revenue, which stood at ₹1.63 trillion, down 3.5 per cent year-on-year.
Standalone net profit, however, declined 10.2 per cent to ₹80.2 billion, impacted by lower crude oil realisations. The average price for nominated crude stood at $66.13 per barrel, down 20.4 per cent from the previous year, while joint venture crude fetched $67.87 per barrel, a 15.8% drop.
A key highlight was the surge in revenue from new well gas, which crossed ₹17 billion in Q1, delivering an additional ₹3.3 billion over the APM rate. ONGC’s new well gas commands a 20 per cent premium over domestic APM gas, and the company is actively ramping up output from such sources.
Standalone crude oil production rose 1.2 per cent to 4.683 million metric tonnes (MMT), while standalone natural gas output remained largely flat at 4.846 billion cubic metres (BCM). Production from joint ventures declined across both oil and gas segments.
Twin Discoveries Add to Q1 Gains
The quarter also saw ONGC notify two offshore discoveries. The Vajramani prospect in Mumbai Offshore flowed oil at 2,122 barrels per day and gas at 83,120 cubic metres per day. Another well, yielded oil at 413 barrels per day and gas at 15,132 cubic metres per day, marking the first hydrocarbon success in the Mukta Formation within an Open Acreage Licensing Policy (OALP) block.
Among operational highlights, ONGC commenced production from the PY-3 Field in the Cauvery Basin through a joint venture with Hardy Exploration & Production and Invenire Petrodyne. The field is currently producing 4,000 barrels of oil per day and 88,000 standard cubic metres of gas daily.
Other developments include the commissioning of the ASP Jhalora Plant and India’s first onshore Multiphase Pumping System at Ahmedabad, as well as the start of gas supply to the city gas distribution sector from Palatana, Tripura.