According to The Hindu BusinessLine, ONGC Chairman and CEO Arun Kumar Singh revealed that at least 60% plus of India's oil imports are determined by prevailing crude prices, with more than 60% of the country's oil imports being a function of prices in a particular month or M+2. Speaking to media after ONGC's Annual General Meeting, Singh explained that imports by Mangalore Refinery and Petrochemicals Ltd (MRPL) are primarily driven by price, except in the case of term crude supplies. The company's spot crude imports are mostly decided cargo-to-cargo based on price, with the exact import volumes remaining uncertain. Singh emphasized that ONGC is prepared for oil prices between $60-90 per barrel, stating "We are prepared for $60-90 crude. At group level, we are prepared for both (low and high gas prices)."
As reported by The Hindu BusinessLine, Singh highlighted that ONGC maintains a balanced portfolio with 60% exploration and production (E&P) and 40% non-E&P operations. This integrated business model provides cushioning against crude oil price volatility, with Singh stating that "ONGC today, if you see, is almost 60-40. 60 per cent is E&P and 40 per cent is non-E&P. So, we are fairly balanced." The company is prepared for crude oil price ranges of $60-90 per barrel, with downstream businesses benefiting when crude prices rise to offset pressure elsewhere in operations. Singh noted that exploration and production accounts for about 60% of the company's profit, with other business segments accounting for the balance, providing natural hedging against crude price variations.
According to Singh's latest statements, ONGC plans to expand its renewable energy portfolio to 30% over the next decade, with renewable energy currently contributing about 2.5 GW of capacity and targets to reach 10 GW by 2030. The company is also establishing a global oil trading joint venture by year-end, with a partner to be finalized soon and the trading JV to be based either in Dubai or Singapore. Singh emphasized that ONGC does not need to change its medium-term strategy amid the current global energy crisis, stating "We don't see any need to tweak our strategy and move away from oil and gas. On energy equivalence basis, oil and gas would be the cheapest." The company owns controlling stakes in Hindustan Petroleum and Mangalore Refinery and Petrochemicals.
As reported by The Economic Times, ONGC is betting big on deepwater exploration with ambitious targets of drilling 87 deepwater wells by 2030-31, requiring a total investment of ₹1 lakh crore. The company plans to drill eight deepwater and ultra-deepwater wells in the current fiscal year and another 10 in the next fiscal year. Singh stated that without the current geopolitical crisis, oil could have been trading at $60-65 per barrel, and the company has been able to reduce its operating costs by 6-7% over the last year, though most savings have been negated by increased GST rates.
