ONGC Shifts Focus Towards Natural Gas Production

India's Oil and Natural Gas Corporation (ONGC) is shifting its focus towards natural gas production, according to Chairman Arun Kumar Singh. The company has been investing heavily in exploration and production activities, but Singh emphasized that gas will be a key growth engine for ONGC.

The Indian government has implemented policies to support domestic E&P activities, including reducing royalty rates for onshore production and introducing wellhead-related reforms. Additionally, the pricing framework for new well gas has been strengthened, with gas from new wells priced at 12% of the prevailing crude oil price.

ONGC is executing projects worth Rs 330 billion across its western offshore assets, which contribute around 60% of ONGC's oil production and 70% of its gas output. The company expects natural gas production to grow steadily by 7-8% annually, supported by a strong project pipeline.

One of the key projects driving growth is the Daman Upside Development Project (DUDP), which has already commenced production at four out of the planned 15 wells. ONGC also plans to increase drilling activity by an additional 50-60 wells in 2026-27 to support its production base.