State-run Oil and Natural Gas Corporation (ONGC) is repositioning itself as a more gas-focused energy producer, with Chairman and CEO Arun Kumar Singh saying the company should increasingly be viewed as a “gas and oil” firm rather than an “oil and gas” company.
Singh told analysts that natural gas production has already surpassed crude oil output in ONGC’s portfolio, marking a structural shift in the company’s production mix.
“Gas is now slightly more than oil in our portfolio,” he said, adding that future growth will be led primarily by expanding gas output even as crude production remains largely flat.
Oil output steady, gas set for expansion
According to Singh, ONGC’s crude oil production is expected to remain broadly stable unless major new discoveries are made. In contrast, gas output is projected to rise steadily as new fields come online.
He estimated gas production growth of around 7-8% annually, supported by developments in deepwater and discovered fields such as DSF assets, DUDP projects, and offshore wells scheduled for commissioning in the coming years.
Policy support and pricing reforms aid shift
The ONGC chief highlighted that regulatory changes and pricing reforms have improved the economics of natural gas production. He noted that “new well gas” prices linked to crude benchmarks have strengthened upstream profitability and encouraged investment.
Singh also said India’s rising demand for gas across industry, power, and transport is reinforcing the transition toward a gas-heavy portfolio.
Offshore investments and production strategy
ONGC is currently investing about ₹33,000 crore in offshore projects aimed at sustaining and increasing output. The company is also focusing on enhanced recovery from mature fields, particularly in its Western Offshore assets, which account for a significant share of production.
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A technical service partnership model with BP covering Western Offshore operations has already shown early operational improvements, Singh said.
Overseas assets and clean energy push
On international operations, ONGC reported stable production from Sakhalin in Russia, while Mozambique’s LNG project is progressing toward potential completion by 2028. Venezuela output could also improve depending on regulatory conditions.
Separately, ONGC is expanding its non-fossil energy portfolio. Its renewable arm, ONGC Green, is targeting nearly 3 GW of capacity in the coming year, while its petrochemicals subsidiary OPaL is expected to see a turnaround.
The company’s leadership sees gas as a more attractive and strategically important fuel in India’s energy mix, supported by demand growth and policy backing.
With oil output largely plateauing and gas production accelerating, ONGC is positioning itself for a long-term transition toward a gas-led upstream business model.
(With inputs from agencies)
