ONGC to Launch Oil Trading Unit by Dec 2026; Eyes Dubai/Singapore
By Business Desk
ONGC plans to launch its oil trading unit by December 2026, considering Dubai or Singapore for strategic global expansion. Deepwater exploration also intensifies.
Oil and Natural Gas Corporation (ONGC) is set to establish an oil trading unit by December 2026, a strategic move aimed at expanding its presence across the energy value chain. Chairman Arun Kumar Singh confirmed that approximately 95% of the work for this venture is complete, pending final approvals.
This new unit will provide ONGC with enhanced flexibility in international markets by managing both the purchase and sale of oil and gas. The company is evaluating key global hubs, with Dubai or Singapore under consideration as potential locations for the trading operation.
Aggressive Deepwater Exploration Targets
ONGC is concurrently intensifying its deepwater exploration initiatives, targeting significant drilling activity over the coming years. The company plans to drill 87 deepwater wells by FY31, supported by a substantial investment.
- Scheduled deepwater drilling includes 8 wells in FY27 and 10 wells in FY28.
- An estimated investment of Rs 1 lakh crore is allocated for these efforts.
- Potential oil and gas reserves of approximately 5,600 million tonnes of oil equivalent have been identified in these deepwater areas.
These deepwater projects form part of a broader strategy to bolster domestic hydrocarbon production. ONGC intends to drill over 350 exploratory wells by FY30 to achieve this objective.
Q1 FY27 Financial Overview
The company reported robust financial results for the first quarter of fiscal year 2027, demonstrating strong operational performance. These figures underscore ONGC’s current market position amidst its strategic expansion.
- Consolidated net profit reached Rs 17,034 crore, marking a significant rise.
- Revenue from operations increased by 29.3% quarter-on-quarter, totaling Rs 46,460 crore.
Despite the positive earnings report, ONGC’s shares have experienced a decline of 17.42% over the past six months, closing at Rs 233.05 on August 31. The company’s strategic initiatives, particularly in deepwater exploration and establishing a trading unit, aim to secure future growth and market position.