The Oil and Natural Gas Corp (ONGC) anticipates a 7 to 8 per cent annual growth in its natural gas production in the upcoming financial year. Chairman Arun Kumar Singh revealed that the production of ‘new well gas’ is rapidly increasing, already constituting a quarter of the total gas output. This percentage is expected to rise to 30-36 per cent shortly, potentially becoming the dominant component of ONGC’s gas portfolio.
ONGC continues its drilling activities, averaging around 500 wells annually, which includes both exploratory and producing wells. The company reported a reserve replacement ratio exceeding 1.1 in the fiscal year 2025-26, indicating a growth in reserves. Singh highlighted that ONGC is currently engaged in offshore projects with an investment of approximately Rs 33,000 crore, focusing on sustaining and enhancing output, particularly from mature fields like the Western Offshore assets.
Singh emphasized that while ONGC’s oil production is expected to remain steady, there is a projected increase in gas output as newer fields come online. He also mentioned the positive impact of government policies, such as reduced royalties and market-linked pricing reforms, which have enhanced the sector’s economics and boosted revenue for upstream oil and gas producers.
Discussing international operations, Singh noted that production from Russia’s Sakhalin field remains stable, while progress is being made on Mozambique’s LNG project, aiming for potential completion by 2028. Additionally, there is a possibility of increased output from Venezuela if regulatory conditions improve. ONGC is optimistic about a revival in its petrochemicals arm OPaL and foresees growth in its renewable energy subsidiary ONGC Green, targeting nearly 3 gigawatts of capacity next year.
