ONGC expects 39MMTOE oil and gas this fiscal, 40MMTOE next year

The Story in Brief

Oil and Natural Gas Corporation (ONGC) expects combined oil and gas production of about 39 million metric tonnes (MMT) in the current fiscal and 40 MMT in FY 2027-28, director (finance) Anupam Agarwal told analysts on a post-results call on 4 August 2026. Last year ONGC’s standalone oil plus gas output was about 38.87 million metric tonnes of oil equivalent (MMTOE); the company expects the upside this year to come mainly from gas and anticipates almost 1 MMTOE more in FY 2027-28. Agarwal said with oil prices expected near $75 per barrel, pursuing deepwater exploration would become commercially attractive and support the country’s energy security after the West Asia conflict. He noted that at $60-65 per barrel many deepwater projects are high‑risk, high‑reward, while at $75 they could be lucrative. He also said ONGC Videsh is seeing positive signs for its San Cristobal and Carabobo‑1 projects in Venezuela, and that sanction‑related risks there are behind the company.

The Indian Opinion

ONGC’s statements combine production forecasts with strategic judgements that rely on assumptions. Claims that oil will stabilise around $75 per barrel and that sanction risks in Venezuela are “behind us” are forward‑looking and could change with market volatility or geopolitical shifts. Describing deepwater projects as “lucrative” at particular prices is an economic assessment rather than a certainty. An ordinary reader should note the company’s optimism and welcome the focus on energy security, while recognising continued uncertainty over prices, project timelines and overseas regulatory or operational hurdles.

Original article: ONGC expects oil plus gas production of 39 MMTOE this fiscal, 40 MMTOE next year (www.thehindu.com)

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