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ONGC is India's largest crude oil and natural gas company, contributing around 75% to domestic production. It is engaged in exploration, development and production of oil and gas in India and abroad. The company operates in segments including Exploration & Production and Refining & Marketing. As of March 2023, ONGC held exploration and production acreages across nomination blocks, NELP blocks, OALP blocks and DSF blocks in India. In FY2022-23, ONGC drilled 461 wells, acquired seismic data, and commissioned 5 major projects. The company has subsidiaries in refining, petrochemicals, renewables and other areas. ONGC is focused on enhancing production through new discoveries, development projects, and improved oil recovery techniques. It is also expanding into areas like gas hydrates research and high pressure high temperature drilling.
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Company insights, generated from the most recent coverage.
ONGC exhibits high beta characteristics during crude reversals, with share price declining ~40% during 2014-2016 oil crash, underperforming broader market and global peers.
Brokerages project 15% production growth for ONGC over next 1-3 years, providing fundamental support to valuations even if crude prices stabilize.
ONGC faces structural production headwinds with crude output halving since its 1990 peak; aging assets like Mumbai High (>50 years old) increase extraction costs and reduce efficiency.