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Informist, Friday, Feb. 13, 2026

 

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--ONGC: Daman Upside Development Project on track, to be monetised soon
--CONTEXT: Comments by ONGC mgmt in a post-earnings analyst call
--ONGC:Daman Upside Development Project to have peak gas output of 4-5 mscmd
--ONGC: Awaiting US sanctions removal, instructions to restart Venezuela ops
--ONGC: Target oil, oil equivalent output of 42.5 mln tn for FY27
--ONGC: Total debt on ONGC Petro Additions' books INR 230 bln-INR 240 bln
--ONGC: Arm ONGC Petro Additions' avg capacity utilisation in Apr-Dec at 92%
--ONGC: Don't see debt requirements for ONGC Petro Additions
--ONGC: ONGC Videsh moving ahead on Russia's Sakhalin project
--ONGC: Spent INR 244 billion as capex in Apr-Dec
--ONGC: Capex not a constraint to add up to 10 GW renewable energy capacity
--ONGC: Decline in Mumbai High output arrested, production turned positive
--ONGC: BP committed 10 mln tn output from Mumbai High over 10 years
--ONGC:See New Well Gas volume share rise to 24% in 2-3 yrs from current 18%
--ONGC: Gas flow from Daman Upside project expected by March

 

By Sunil Raghu and Afra Abubacker

 

MUMBAI/NEW DELHI – Oil and Natural Gas Corp. Ltd. Friday said it has arrested the decline in output from its Mumbai High offshore oil and gas field, over a year after signing a technical services agreement with UK-based oil company BP p.l.c. to enhance oil and gas recovery at the mature field. "BP's contribution has helped us increase oil and gas from both the MH (Mumbai High) field...7% higher than what we were expecting in this Q3 (Oct-Dec) quarter earlier," the company's management told analysts during a post-earnings conference call.

 

The management said that the company would be able to share more details on the production by the end of the March quarter. They, however, reiterated that production from the field has turned net positive, from the 6-8?cline seen earlier. As per the agreement between BP and ONGC, the former has committed to increase oil and gas production from the Mumbai High field to 10 million tonnes over the next 10 years, they said.  

 

ONGC expects to produce around 21 million tonnes of oil and 21.5 million tonnes of gas in 2026-27 (Apr-Mar). This excludes the likely output from the Mumbai High field, the company said. 

 

Gas drilled from new wells was a key contributor to ONGC's earnings growth in the December quarter. The company earned INR 50.28 billion from New Well Gas in Apr-Dec. "This delivered an additional Rs 944 crore (INR 9.44 billion) compared to the APM (administered pricing mechanism) gas price, as gas from the new wells is eligible for a 20% premium over the domestic APM gas price," the company said.

 

For the December quarter, the company earned INR 2.94 billion in incremental revenue from New Well Gas. The gas from new wells currently accounts for around 18% of the company's overall gas sales volume, and this is expected to increase to 24% in the coming 2-3 years, the management said. 

 

In addition to this, the Daman Upside project is expected to contribute 4-5 million standard cubic metres of gas per day at peak to ONGC's total natural gas volumes. Daman gas also qualifies for a 20% premium. The company's management said it expects the gas flow from this ongoing project to begin by March and plans to monetise it soon.

                               

Talking about its subsidiary, ONGC Petro Additions Ltd., the company said it does not see the need to incur any additional capital expenditure. ONGC Petro Additions owns and operates a 1.1-million-tonne-per annum greenfield petrochemical complex at Dahej in Gujarat. The company said its subsidiary has a total of INR 230 billion-INR 240 billion as debt on its books, and it does not need any more debt going ahead. For Apr-Dec, the average capacity utilisation for ONGC Petro Additions stood at 92%, a company executive said.

 

The oil and gas exploration major said that it has spent nearly INR 244 billion towards capital expenditure over the nine months ended December in the current financial year. It has guided an expenditure of nearly INR 320 billion as capital expenditure for the year. The company said it was keen on investments in renewable energy and added that capital would not be a constraint for its plans to add up to 10 gigawatts of green power to its portfolio.

 

On its overseas operations, ONGC executives said the company is awaiting the removal of US sanctions to restart its operations in Venezuela. ONGC's overseas arm, ONGC Videsh Ltd., has been present in Venezuela for more than a decade. It holds stakes in oil projects such as the San Cristbal and Carabobo blocks in the Orinoco heavy oil belt. Published reports show that ONGC had over $550 million held up owing to sanctions imposed by the US against the South American nation.

 

With the US government ousting the previous Nicolas Maduro regime and taking control over Venezuelan hydrocarbon assets, the oil companies from other countries are awaiting clarity to restart operations there. "We are awaiting on those instructions as such. But the movement is in positive direction. And we are hopeful that we should be in a position to restart our operations once the on ground and US sanctions get lifted totally," an ONGC executive said.

 

Other than Venezuela, ONGC Videsh has around $550 million in dividends held up from the Sakhalin project in Russia. "...We have been advised that our share of equity has been secured in that company, which is a very positive step as far as ONGC and OVL are concerned," the executive said. The management said it is hopeful of receiving its shares of held-up dividends this year, with operations and production continuing normally.

 

The company announced its December quarter results late Thursday. It reported a net profit of INR 83.72 billion on revenue of INR 315.47 billion. At 1330 IST, its shares traded 3% lower at INR 268.10 on the National Stock Exchange.  End

 

US$1 = INR 90.70

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee

 

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