Tag: ONGC

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Corporate

ONGC shares decline 4% as Q4 growth disappoints

Shares of ONGC declined by nearly 4% on May 27 after investors reacted to the company’s fourth-quarter earnings, which showed only modest growth in net profit and raised concerns over the pace of future performance.

The stock came under selling pressure in early trade following the release of the company’s March quarter results. Investors appeared cautious despite the company reporting growth in profit, as the increase was seen as lower than some market expectations.

According to the quarterly results, ONGC posted a moderate rise in net profit during the fourth quarter, supported by operational performance and production-related factors. However, pressure from crude oil price movements and market uncertainties continued to influence investor sentiment.

Market participants said investors were closely examining the company’s earnings quality and future outlook rather than focusing only on headline profit numbers. Weakness in energy stocks and broader market volatility also added pressure on the stock.

Despite the fall in the share price, some analysts maintained that the company’s long-term fundamentals remain supported by its position in the energy sector and ongoing production activities. However, near-term movement may continue to depend on crude oil trends and broader market sentiment.

The decline in ONGC shares also came during a mixed session for the broader market, where energy counters witnessed pressure while selective sectors attracted buying interest.

Investors are expected to closely monitor future guidance, operational performance and movement in global energy prices for further direction on the stock. Market experts said that while long-term prospects remain under observation, short-term sentiment is likely to stay sensitive to earnings performance and commodity market developments.

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India eases royalty rules for oil and gas firms

Shares of ONGC and Oil India surged up to 9% after the Indian government reduced royalty rates on crude oil and natural gas production to encourage higher domestic output.

The policy aims to support upstream oil and gas companies by lowering their operational costs and improving profitability. Officials said the revised structure is designed to boost exploration, attract investment, and increase India’s energy production.

Under the new framework, royalty rates have been rationalised across onshore, offshore, and deepwater fields. Offshore and gas production rates have been reduced, while some categories now offer lower or phased royalty charges.

Market analysts say the move could significantly benefit state-run producers like ONGC and Oil India, improving cash flows and encouraging fresh investment in difficult exploration areas.

Following the announcement, both companies saw strong buying interest on the stock market, reflecting investor optimism about higher earnings potential.

The government’s decision is part of a broader push to reduce India’s dependence on imported crude oil and strengthen domestic energy security through increased local production.

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India urged to cut West Asia energy dependence

India should rethink its heavy dependence on West Asia for energy after a major global supply shock, ONGC Chairman Arun Kumar Singh has said.

He noted that India relies on the region for a large share of its oil, gas and LPG needs, making it vulnerable to disruptions. Recent geopolitical tensions and shipping route issues exposed these risks, forcing supply adjustments.

Singh called for boosting domestic exploration and production, expanding strategic reserves, and diversifying import sources. He emphasized that energy security must become a priority as global uncertainties rise, urging a long-term shift toward a more resilient and self-reliant energy system.

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Beyond

ONGC starts gas output from $1 bn Daman project

Oil and Natural Gas Corporation (ONGC) has started gas monetisation from its Daman Upside Development Project, marking a significant step in increasing India’s domestic natural gas production.

The company commenced gas flow from the offshore B-12-24P platform on March 29. The extracted gas is being transported to the Hazira plant in Gujarat, where it will be processed before being supplied to consumers.

Located in the Arabian Sea, the Daman project lies about 180 km off the Mumbai coast. It is part of ONGC’s broader strategy to enhance output from its western offshore assets and reduce reliance on energy imports.

Developed at an estimated cost of around $1 billion, the project has been completed in a relatively short time frame of under two years. ONGC attributed this to improved drilling methods and efficient project execution, including the use of advanced techniques to speed up development.

The start of gas monetisation signals the beginning of commercial production from the field. Output is expected to increase gradually as additional wells are brought into operation in phases over the coming months.

At peak levels, the project is expected to produce around 5 million standard cubic metres of gas per day. Overall, it is estimated to contribute significantly to India’s gas output over its lifecycle.

The development comes at a time when India is focusing on boosting domestic energy production to meet rising demand and reduce dependence on imports. Natural gas is seen as a key transition fuel in the country’s energy mix, supporting cleaner energy goals.

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ONGC posts 16% rise in standalone Q3 profit

Oil and Natural Gas Corporation (ONGC) reported a 16% year-on-year rise in its standalone net profit for the October–December quarter.

The company posted a profit of ₹8,372 crore compared to the same period last year. However, revenue from operations saw a slight decline due to softer crude prices. ONGC’s consolidated net profit rose sharply, supported by improved performance from subsidiaries.

The board also announced a second interim dividend of ₹6.25 per equity share, with February 18 set as the record date. Stable crude production and better gas realisations helped the company maintain strong financial performance during the quarter.

 

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Corporate

Reliance, ONGC partner to share offshore energy assets

Reliance Industries Ltd (RIL) and state-run Oil and Natural Gas Corporation (ONGC) have entered into a strategic partnership to share offshore oil and gas resources, marking a major step towards improving efficiency and boosting India’s domestic energy production. The two companies signed a memorandum of understanding (MoU) during India Energy Week 2026.

The agreement focuses on sharing infrastructure, services and expertise across offshore exploration and production projects, particularly in deepwater and ultra-deepwater areas. Key regions covered under the pact include the Krishna-Godavari (KG) Basin on the east coast and the Andaman offshore blocks, where both RIL and ONGC operate adjoining or nearby fields.

As part of the collaboration, the companies will jointly use high-value assets such as drilling rigs, offshore platforms, processing facilities, pipelines, power systems, and marine infrastructure including platform supply vessels and multi-support vessels. The arrangement also covers specialised services such as well logging, project execution support and other technical operations required in offshore fields.

The primary objective of the partnership is to reduce operational costs, avoid duplication of infrastructure and improve asset utilisation in capital-intensive offshore projects. By sharing resources, both companies expect faster project execution, better logistical coordination and improved safety standards in challenging offshore environments.

ONGC said the MoU is in line with recent policy reforms, including the Oilfields (Regulation and Development) Amendment Act, 2025, which allows greater flexibility for operators to share facilities and infrastructure. The regulatory changes are aimed at encouraging collaboration, attracting investment and accelerating exploration and production activity in India’s oil and gas sector.

The partnership is also expected to strengthen emergency response mechanisms and operational resilience by enabling quicker access to vessels, equipment and technical support during critical situations.

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Corporate

ONGC may get $500 million from Venezuela

State-run Oil and Natural Gas Corporation (ONGC) could receive around $500 million (about ₹4,100 crore) in long-pending dividends from its investments in Venezuela if the United States eases sanctions on Venezuelan oil, according to market analysts.

The unpaid amount is linked to ONGC’s overseas arm, ONGC Videsh Ltd (OVL), which holds a 40 per cent stake in the San Cristobal oil project in Venezuela. Although the oilfield has generated profits in the past, US sanctions imposed on Venezuela prevented the transfer of dividends to foreign partners, including ONGC.

Brokerage firm Jefferies said that a possible U.S.-led restructuring of Venezuela’s oil sector, along with changes in sanctions policy, could allow these blocked funds to be released. If this happens, ONGC would be able to recover the long-stuck dividends, improving its cash position.

Apart from San Cristobal, ONGC Videsh also owns an 11 per cent stake in the Carabobo oil block in Venezuela. This project has remained largely stalled due to funding issues, sanctions, and operational challenges. Any easing of restrictions could revive investment activity in this asset as well.

Analysts say the potential dividend recovery is not yet factored into ONGC’s stock price, making it an upside trigger for investors. However, they caution that the outcome depends heavily on geopolitical developments and US policy decisions, which remain uncertain.

ONGC has maintained strong financial performance in recent quarters, supported by steady crude oil production and stable energy prices. The possible recovery of Venezuelan dues would add further strength to its balance sheet.

While Venezuela’s oil output is currently limited, even a partial easing of sanctions could benefit global energy companies with legacy investments in the country. For ONGC, unlocking these funds would mark a significant recovery of long-delayed overseas earnings.

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