ONGC Invests ₹1.07 Lakh Cr in Deepwater & Global Trading

State-run ONGC is embarking on a significant expansion strategy, committing over ₹1.07 lakh crore towards deepwater exploration, strategic crude oil storage, and establishing a new global trading platform. This ambitious plan aims to bolster India’s energy security and expand ONGC’s international market presence by 2031.

Key Investment Figures

• Total planned investment: ₹1.07 lakh crore (approximately $12.8 billion USD)
• Deepwater exploration allocation: ₹1 lakh crore over five years
• Strategic petroleum reserve investment: ₹7,000 crore

The deepwater exploration initiative focuses on drilling 87 deepwater and ultra-deepwater wells by March 2031. Initially, 7 wells are slated for drilling this year, followed by 10 next year, with plans to scale up as more seismic data becomes available.

ONGC’s Chairman and CEO, Arun Kumar Singh, emphasized the critical importance of deepwater and ultra-deepwater basins, particularly in India’s eastern and western offshore regions. These areas are estimated to hold over 5,600 million tonnes of oil equivalent (MMTOE) of hydrocarbon potential, underscoring the strategic value of this exploration push.

Expanding India’s Crude Storage

A substantial ₹7,000 crore investment is earmarked for establishing a 1.75-million-tonne strategic petroleum reserve in Mangalore. This facility will boost India’s emergency crude storage capacity by approximately one-third, with land already acquired and construction set to commence soon.

Global Trading Arm and Venezuela Ambitions

The company is also finalizing an overseas oil and gas trading joint venture, with Dubai and Singapore under consideration as potential locations. This new entity is projected to trade around 50 million tonnes of crude, refined products, and gas annually, including third-party volumes, providing a unified commercial interface for ONGC group companies in international markets.

Concurrently, ONGC Videsh is actively pursuing a larger operational role in Venezuela, with discussions underway to finalize an operating framework. This follows the receipt of an OFAC license in July, with the framework expected to be in place within three months.

On the stock market, ONGC shares closed slightly down at ₹232 on the BSE, reflecting the immediate market reaction to these strategic announcements. This multi-pronged investment highlights ONGC’s resolve to diversify its energy portfolio and secure a more prominent position in the global energy landscape, driven by both domestic needs and international market opportunities.