ONGC Invests $736 Million in India's Oil Reserves Amid Global Supply Concerns

India's state-owned oil company, ONGC, plans to invest $736 million in developing new oil reserves in southern India. The project involves building underground facilities with a capacity to store approximately 13 million barrels of crude oil.

The additional storage will provide greater responsiveness to external disruptions and support the Indian government's efforts to increase its emergency energy reserves. Currently, India has around 39 million barrels of crude oil in strategic storage, which is roughly equivalent to one week of oil imports.

ONGC Chairman Arun Kumar Singh indicated that the land needed for the project has already been acquired and that construction will begin soon. The expansion comes after the war in the Middle East exposed India's vulnerability to disruptions in international supply.

India relies heavily on oil imports to meet its demand, and a disruption in international flows could increase pressure on the country's supply and raise its exposure to changes in energy markets.