State-owned oil exploration and production company Oil and Natural Gas Corp (ONGC) has set its capex target for the upcoming financial year 2025-26 at Rs 36,920 crore, the company said in its investor meet. Of this, the company intends to spend 38% as capital, 30% in development drilling, and 20% in exploratory drilling. The remaining amount will be spent in integration projects, research and development, and surveys.
So far in the first nine months of the current fiscal 2024-25, the company has incurred a capex amounting to Rs 45,335 crore.
In the domestic exploration front, the company is targeting a compound annual growth rate of 49% in its acreages at 3 lakh square kilometers in FY26 against 1.8 lakh sq km in FY25, it said in its investor presentation. For FY27, ONGC aims for its acreage under exploration to reach 4 lakh sq km.
With 25 major (11 development and 14 infrastructure) projects with an investment of Rs 74,474 crore in pipeline, the company has guided for growth of 3.4% (CAGR) in its domestic production at 44.51 mmtoe (millions metric tonnes of oil equivalent) in FY26 and 45.61 mmtoe in FY27. In FY25, the production stood at 42.44 mmtoe.
The state-owned upstream company is aiming to intensify its exploration activities, monetise discoveries, and maximise recovery from matured fields.
The company expects to complete Cluster –II of the KG-DWN-98/2 project by March 2025 with an envisaged gain of 44.74 mmtoe in its output.
ONGC had recently announced BP Exploration (Alpha) Ltd as its technical service provider to enhance the production from Mumbai High field. BP has indicated a substantial increase in Oil and Oil Equivalent of Gas (O+OEG) production (up to 60%) from baseline production levels over a 10 years contract period. The company expects incremental production from the field to begin from March 2026.
The company has also laid out a roadmap for its diversification in the renewable energy sector which will primarily be carried out by its subsidiary ONGC Green Ltd. ONGC Green aims at 1 gigawatt (GW) of RE capacity by the end of FY25 through asset acquisition with a capex of Rs 1,000 crore, the company said.
ONGC’s green arm further envisages a 10 GW RE capacity by 2030 of which 60-70% will be solar, followed by 30-40% of wind energy.
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