India’s energy landscape is evolving rapidly due to increasing demand, urbanisation and industrial growth. Over the past year, the sector witnessed significant progress across key segments. The continued implementation of policy reforms by the government and regulatory bodies has been instrumental in driving this growth. In his address at the 32nd annual general meeting of the Oil and Natural Gas Corporation (ONGC), Arun Kumar Singh, Chairman and Chief Executive Officer, ONGC, highlighted the sector’s progress, ONGC’s key achievements and the future outlook. Edited excerpts…
Over the past year, the world has navigated a period of heightened geopolitical tensions, supply chain realignments and economic uncertainty, which together mark an inflection point for the global order. Sanctions, tariffs and protectionist policies are no longer episodic disruptions; they are reshaping the rules of engagement. As we progress through mid-2025, there are reasons for both cautious optimism and prudence. While major central banks have eased back on aggressive rate hikes, many are maintaining a cautious stance, adopting a wait-and-see approach as inflation remains a persistent challenge. For developing economies, these changing tides present not just challenges but also opportunities to innovate and grow.
Against this backdrop, the oil and gas sector is undergoing a major transformation. The energy transition is gaining momentum, but unevenly, as demand patterns are shifting by region, by sector and by fuel.
Key highlights, strategic initiatives and major milestones
Throughout FY 2025, ONGC maintained remarkable momentum across exploration and production (E&P) operations. It notified nine new hydrocarbon discoveries – seven new prospects and two pools – spread across both onshore and offshore acreages in Mumbai Offshore, Bengal, Cambay, Krishna-Godavari and Cauvery basins. Among these, the new discovery at Ranaghat-2 in the Bengal Basin was particularly significant, and reinforced the company’s efforts to upgrade Category-III basins. The exploratory success ratio stood at an impressive 43.5 per cent, with 47 of the 108 tested wells proving hydrocarbon-bearing. The company further strengthened its exploration portfolio by drilling 12 wells targeting basement formations and pursuing development in high-pressure, high-temperature reservoirs.
During FY 2025, ONGC’s crude oil production from operated blocks stood at 19.598 million metric tonnes (mmt) while natural gas production was 19.654 billion cubic metres (bcm), as against crude oil production of 19.471 mmt and natural gas production of 19.978 bcm in FY 2024. The ONGC Group delivered a resilient performance in FY 2025, with 775.42 million metric tonnes of oil equivalent (mmtoe) of 1P reserves, 51.36 mmt of oil and gas production, and 43.31 mmt of refinery throughput.
Moreover, ONGC monetised eight discoveries, including West Matar-2 and Yandapalli-1. The forthcoming monetisation of the Daman Upside Development Project, scheduled for the third quarter of FY 2026, will further enhance domestic gas output. It also acquired 604 line km of 2D seismic data and 8,840 square km of 3D seismic data. In a major thrust to unlock frontier basins, the company commenced ultra-deep-water drilling operations in the Andaman. It is also pursuing deep-water collaborations with BP, ExxonMobil, Total Energies and Petrobras. Another significant milestone was the commencement of coal bed methane gas sales from Bokaro and North Karanpura.
Snapshot of financial metrics
During FY 2025, revenue from operations stood at Rs 1,378.46 billion, slightly lower than the previous year’s Rs 1,384.02 billion, primarily due to a lower realisation of crude oil prices. Profit after tax was Rs 356.1 billion, down from Rs 405.26 billion in FY 2024, primarily due to higher exploratory write-offs. ONGC declared a total dividend payout of Rs 154.11 billion, representing a payout ratio of 43.27 per cent.
Furthermore, the company made its highest-ever capital expenditure in a financial year, investing Rs 620.57 billion. These investments spanned exploration, development projects, technology upgrades, sustainability initiatives and energy transition programmes.
Performance trends and outcomes in key subsidiaries
ONGC’s subsidiaries continue to serve as a strategic hedge against the inherent volatility of the oil and gas sector. Despite geopolitical challenges and maturing fields, ONGC Videsh Limited, the company’s international arm, maintained a stable operational output of 10.278 mmtoe, comprising 7.265 mmt of crude oil and 3.013 bcm of gas. Further strengthening its strategic footprint, it acquired additional participating interest in Azerbaijan’s Azeri, Chirag and Gunashli (ACG) field, along with a stake in the Baku-Tbilisi-Ceyhan Pipeline Company. The company also entered into an MoU with the UAE-based International Resources Holding RSC Limited, in partnership with Oil India Limited and Khanij Bidesh India Limited, to collaborate on critical minerals.
In the downstream segment, Hindustan Petroleum Corporation Limited (HPCL) achieved its highest-ever refining throughput of 25.27 mmt at its Mumbai and Visakhapatnam refineries, a robust 13 per cent increase over the previous year. It also posted record sales of 49.82 mmt, outpacing the industry average, while expanding its retail footprint to 23,747 outlets. HPCL has also commenced operations at its liquefied natural gas regasification terminal in Chhara, Gujarat – a key milestone in value chain diversification. Additionally, Mangalore Refinery and Petrochemicals Limited recorded the highest-ever crude throughput of 18.04 mmt, operating at 120 per cent of its capacity. In addition, ONGC Petro Additions Limited, a project of immense long-term strategic significance, sold 1,785 kilo tonnes of petrochemical product during the year.
In recent years, ONGC has not only diversified across the hydrocarbon value chain, it has also made bold strides in the green energy segment. The incorporation of ONGC Green Limited (OGL) has marked a transformative step towards its energy transition. Within a short span, OGL has acquired PTC Energy Limited (now OGL One Limited), bringing seven wind plants with a combined capacity of nearly 289 MW into our fold, across Madhya Pradesh, Karnataka and Andhra Pradesh.
In March 2025, ONGC NTPC Green Private Limited acquired Ayana Renewable Power Private Limited, adding 2.05 GW of capacity to ONGC’s portfolio. These acquisitions have raised ONGC’s renewable capacity to 2.5 GW, firmly putting the company on track to achieve its ambitious target of 10 GW by 2030.
Forward-looking policies to drive sector growth
The recent amendment to the Oilfield Regulation and Development Act is a pivotal step for India’s E&P landscape. By streamlining regulatory processes, enhancing fiscal incentives and offering greater operational flexibility, this reform is poised to unlock new investment opportunities and accelerate hydrocarbon discoveries. In addition, the new framework encourages resource sharing among E&P companies, allowing operators to collaborate on infrastructure, technology and best practices. This collective approach will reduce operational costs, maximise asset utilisation and accelerate project timelines, thereby mitigating companies’ exposure to substantial capital investments. By facilitating partnerships, the act supports a more robust and innovative energy ecosystem, unlocking greater value for all stakeholders.
Building on these transformative policy reforms, the National Deep-Water Exploration Mission – Samudra Manthan – has been launched. This marks another bold stride towards energy independence, with the ambitious targets of doubling India’s national reserves by 2032 and tripling production by 2047. Operating in mission mode, this initiative will accelerate deep-sea exploration in previously untapped regions. Furthermore, it has the potential to redefine the nation’s energy landscape and secure a sustainable future for generations to come.
With these reforms in place, ONGC is well positioned to capitalise on emerging opportunities. The firm’s exploration strategy will push new frontiers, with a strong focus on Category-II basins and no-go areas that hold the potential to unlock India’s next generation of major discoveries. Moreover, the increase in standalone crude oil production, after nearly a decade, has provided ONGC with fresh momentum.
Future roadmap and outlook
Looking ahead, ONGC’s foremost ambition is to evolve into a truly integrated energy company, deepening its presence across the value chain and ensuring that every link – from upstream to renewables – contributes to both resilience and growth.
For FY 2026, the company is evaluating the possibility of establishing a dedicated oil trading vertical. This strategic initiative would enhance price realisation, enable greater responsiveness to market volatility and further strengthen its position as a fully integrated energy enterprise.
Finally, our green ambitions remain bold. By 2030, we aim to scale up to 10 GW of renewable capacity and to achieve net zero for Scope 1 and Scope 2 emissions by 2038 – one of the most promising forward-looking energy transition commitments in the industry.
Companies must simultaneously deliver reliable energy today and invest decisively in the systems of tomorrow. The next few years will be defining years for businesses, consumers and nations. For ONGC, this is not just a challenge; it is a generational opportunity. There is a dual mandate: to sustain India’s energy security through reliable hydrocarbon supply and to accelerate the shift to a lower-carbon future with conviction and clarity. Navigating this mandate requires agility, immaculate execution and the courage to look beyond the obvious. Lastly, our legacy will be measured not merely by volumes produced or assets commissioned, but by the ability to transform and architect a more resilient and sustainable energy future for India.
