The state-owned company is concentrating its spending and growth plans across four areas—more exploration, improving production from existing fields, building an integrated energy business and investing in green and new-energy opportunities.
A major part of the strategy involves getting more oil and gas out of fields that ONGC has operated for decades.
BP brought in to revive ageing offshore fields
ONGC has brought in global energy major BP as a technical service provider to help improve production from its mature offshore fields.
Under the arrangement, BP provides technical expertise while ONGC retains ownership and operational control.
The partnership has been in place at Mumbai High since April 2025. The giant offshore field has been producing for decades, making it increasingly difficult to maintain output as reservoirs mature.
ONGC is trying to tackle problems including increasing amounts of water being produced alongside oil, a rising gas-to-oil ratio and increasingly complex reservoir conditions.
The potential production gains are substantial.
ONGC expects its Mumbai High redevelopment programme to deliver 44% more crude oil and 89% more natural gas compared with the baseline production forecast. On an oil-and-gas-equivalent basis, the expected improvement is around 60%.
Phase I of the redevelopment has been approved, while work on Phase II and the introduction of new technologies is underway.
BP model being taken to more fields
ONGC now plans to use the same approach at its Neelam & Heera and Bassein & Satellite offshore assets.
BP is scheduled to mobilise for these fields in August 2026.
ONGC expects the initiative to increase crude production by 11% and natural-gas production by 32% over the baseline. Combined oil and gas production, measured on an equivalent basis, could rise 24%.
The strategy is essentially about getting more out of fields ONGC already owns rather than relying entirely on new discoveries for growth.
ONGC steps up deepwater drilling
Exploration is the other side of the plan.
ONGC has secured 68% of the total deepwater acreage awarded under India’s ninth round of the Open Acreage Licensing Policy (OALP-IX).
It plans to increase deep-sea drilling to 17 sites—seven this year and another 10 next year.
One drilling ship is currently operating in the Mahanadi region, while another is expected to arrive by November.
Deepwater exploration is generally more difficult and expensive than drilling in shallower waters, but successful discoveries can open up substantial new sources of domestic oil and gas.
Mozambique gas expected from 2028
ONGC is also looking overseas for production growth.
Its international arm, ONGC Videsh, currently has 29 projects across 14 countries.
Gas production from its Mozambique interests is expected to begin in 2028, potentially adding another source of overseas production to the company’s portfolio.
ONGC is also close to setting up a trading joint venture, with about 95% of the work completed.
The remaining decisions include where the venture will be based and who its partners will be. Dubai and Singapore are among the locations being considered.
The company expects the venture to be finalised by the end of this year, subject to board decisions and other formalities.
ONGC also plans to establish a strategic reserve in the Mangalore Special Economic Zone, with construction expected to begin shortly.
ONGC isn’t giving up on oil and gas
Despite expanding into newer forms of energy, ONGC doesn’t see a reason to move away from its core oil and gas business.
The company’s chairman said oil and gas production are now almost evenly matched and argued that, when different sources are compared on an equivalent-energy basis, oil and gas remain the cheapest option.
That explains why much of ONGC’s near-term strategy remains centred on extracting more from mature fields, finding new deepwater reserves and expanding gas production.
The chairman said ONGC may not offer investors “sensation”, but argued that it provides stability and that the company is comfortable about its position over the next five to seven years.
He also said crude prices could have been around $60-$65 a barrel in the absence of current disruptions.
ONGC shares closed 0.34% higher at ₹233.05 on Monday, August 31.
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