ONGC in Discussions with Shell and Petronas for Gas Ventures

ONGC is in active discussions with global energy companies like Shell and Petronas for potential technology collaborations focused on offshore gas fields. These partnerships aim to leverage advanced technologies and expertise in the exploration and development of new gas fields. The state-owned oil and gas company is also preparing to initiate drilling operations in several promising new fields, including the DWN-98/2 block located in the deep waters of the Bay of Bengal. Additionally, ONGC plans to deploy floating LNG units to further bolster its gas production capabilities.

As part of its broader exploration strategy, ONGC is focused on the Category-II basins located in regions such as Mahanadi, Bengal, Andaman, Kutch, and Saurashtra. These basins were acquired through the Open Acreage Licensing Policy (OALP), which allows license-holders to designate specific areas for exploration and development. ONGC is on track to begin oil drilling operations in these basins by the end of the current fiscal year. The OALP framework has provided ONGC with increased flexibility and control over its exploration activities, enabling the company to target high-potential areas that could yield significant reserves.

In terms of production targets, ONGC has set ambitious goals for its KG 98/2 basin, which is expected to reach peak production by the end of the financial year. The basin is projected to produce 45,000 barrels per day (bpd) of crude oil and 10 million standard cubic meters per day (mmscmd) of natural gas. According to the media reports, production numbers are expected to improve significantly in the coming months, with the recent connection of six out of the planned twenty wells already completed. As more wells are brought online, the company anticipates a substantial increase in both oil and gas output. This milestone is seen as a key development in ONGC's ongoing efforts to boost its production capacity and meet the growing demand for energy.

Furthermore, ONGC has already entered into a partnership with Indian Oil Corporation (IOCL) to establish a small-scale LNG plant near the Hatta gas field in the Vindhyan basin, Madhya Pradesh. This project is part of ONGC’s strategy to expand its gas production capabilities and diversify its energy offerings. Currently, the company boasts around 80 discoveries across its various fields, many of which hold significant monetization potential. ONGC is working to finalize development plans for three to four of its stranded gas discoveries, which are expected to be ready for field development by the end of the current financial year. This proactive approach will help ONGC unlock the value of its undeveloped assets and contribute to the country's energy security.

In terms of performance, ONGC's production has shown steady growth. In the second quarter of FY25, the company produced 4.576 million tonnes, a slight increase from 4.545 million tonnes in the same period of FY24. This growth is attributed to the company’s continued focus on optimizing its existing fields and expanding its exploration efforts in new and emerging areas.