New Delhi: Oil and Natural Gas Corp (ONGC) should increasingly be seen as a “gas-and-oil” company rather than an oil-and-gas producer, its chairman Arun Kumar Singh said, underscoring a strategic shift as natural gas output outpaces crude oil.
“Gas is now slightly more than oil in our portfolio,” Singh told analysts, adding that ONGC’s future growth will be driven largely by gas production even as crude output remains broadly flat without major new discoveries.
“We should call ourselves a gas and oil company, not an oil and gas company.”
Chairman Arun Kumar Singh confirmed to investors that ONGC now produces and sells more natural gas than oil. Gas yields stronger margins due to structural pricing reforms that price new well gas at 12% of crude.
Output from newer, higher-priced wells contributed up to 21% of the nomination gas portfolio revenue. This share is targeted to reach 25–30%.
Over ₹33,000 crore is being funneled into western offshore assets to boost production, countering natural declines in mature fields.
The company is targeting a 7–8% annual growth in gas production, supported by major operations in the deepwater KG-98/2 block and Daman field development.
While natural gas takes center stage for revenue growth, the company remains integral to traditional hydrocarbon security. Following geopolitical conflicts in the Middle East, the government has directed ONGC to construct and stock India’s next Strategic Petroleum Reserve (SPR) in Mangaluru. This massive undertaking highlights the dual mandate the national energy major continues to hold.
