More Stories

Informist, Monday, Oct. 13, 2025

 

Please click here to read all liners published on this story

--ONGC: Don't expect oil prices to go below $60/bbl in next 2-3 years 
--CONTEXT: Comments by ONGC mgmt at press conference 
--ONGC: Expect oil prices at $60-$65 per barrel in next 3 years 
--ONGC: Saw increase in oil production in Q2, reversed trend of output fall 
--ONGC: Will opt for hub-and-spoke model with bp, identified six hubs 
--ONGC: Currently working on reducing costs by INR 43 billion 
--ONGC: See potential to save costs totalling INR 50 bln in future 
--ONGC: Have been working on cost reduction efforts for over a year now 
--ONGC: Gas output in Apr-Sept down marginally YoY

 

NEW DELHI – Oil and Gas Natural Corp. Ltd. has set up a panel to reduce company-wide costs by up to 15% over the next few years as oil prices settle around $60 a barrel for the foreseeable future, its management told reporters in a press conference Monday. ONGC is taking steps to reduce costs by up to INR 43 billion this financial year and INR 50 billion in the coming 2-3 three years, a senior company official said. The management does not expect oil prices to fall below $60 a barrel in the next couple of years or so.

 

Oil prices have fallen at a compound annual growth rate of 5% over the last few years. ONGC expects oil to trade at around $60-$65 barrel in the near term. The company is optimising its offshore resources and logistics routes, increasing drilling efficiency, reducing inventory, and increasing fuel efficiency in a bid to cut costs. ONGC is cutting down on the number of wells it drills in a bid to increase drilling efficiency, it said. The company drilled 578 wells last financial year and plans to cut it down further.

 

The state-run enterprise saw its oil output increasing by a little over a percent on year in the September quarter, with a similar growth rate seen in the June quarter. The company said it has managed to reverse the fall in oil ouput seen some quarters ago. Gas output in Apr-Sept was down on year but only marginally. 

 

ONGC will collaborate with the UK-based oil firm bp and sign a hub-and-spoke model for the former's oil field in Mumbai. "We have identified six major hubs for hub-and-spoke model because MH (Mumbai High) is a very big field, and unless and until we focus on different areas, it won't give us a desired result," an official said.

 

ONGC had hired bp as a technical service provider to revive its Mumbai High. ONGC will be using the services of bp for its KG-98/2 field as well to optimise output there.

 

ONGC is in talks with its subsidiaries to set up a trading entity, which would help it unlock about $1 billion in annual value. The company wants to set up a new trading company which would buy crude oil for its subsidiaries Hindustan Petroleum Corp. Ltd., Mangalore Petroleum Refinery and Petrochemicals Ltd., and ONGC Videsh Ltd. 

 

"We have already interacted with the three companies, why not set up a common trading business together," a company official said. With four companies having already shown interest in this business, ONGC will shortlist suitors in the coming week. The management said these four international companies have no trading expertise, but did not divulge their names.

 

ONGC had posted a net profit of INR 115.54 billion for the June quarter, up 18% on year. On Monday, shares of the company closed nearly 1% lower at INR 244.09 on the National Stock Exchange.  End

 

Reported by Anand JC

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.