KG 98/2 oil production to reach 30,000 bpd by Q3 FY25
Management expects oil production from KG 98/2 to increase from current 12,000 bpd to 30,000 bpd by Q3 FY25, with peak of 45,000 bpd in subsequent quarters.
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KG 98/2 gas production to reach 6 MMSCMD by March 2025
Gas production from KG 98/2 is expected to reach 6 million standard cubic meters per day by end of March 2025.
Standalone oil production target of 20.5 MMT for FY25
ONGC standalone oil production target for FY25 is 20.5 MMT, with JV contributing 1.71 MMT, totaling 22.3 MMT.
CapEx guidance of INR 32,000-33,000 crore for FY25 standalone
ONGC standalone CapEx for FY25 is planned at around INR 32,000-33,000 crore, excluding green energy investments.
KG Basin ramp-up to 45,000 bbl/d oil and 6-7 mmscmd gas by Q4 FY26
KG Basin oil production to increase from 30,000 bbl/d to 45,000 bbl/d and gas from 3 mmscmd to 6-7 mmscmd by Q4 FY26, after living quarter installation in Nov-Dec 2025.
FY26 standalone production guidance: 20.928 MMT crude oil, 20.110 BCM gas
Management guided standalone crude oil production of 20.928 MMT and gas production of 20.110 BCM for FY26.
FY27 standalone production guidance: 21 MMT crude oil, 21.487 BCM gas
Management guided standalone crude oil production of 21 MMT and gas production of 21.487 BCM for FY27.
New Well Gas volume to reach 4.8+ BCM in FY27 (24-25% of total gas)
New Well Gas volume expected to increase from 2.6 BCM in FY26 to 4.8+ BCM in FY27, representing 24-25% of total gas production.
Production growth of ~1% in FY24 and 4-5% in FY25
ONGC standalone production expected to be flat to slightly up in FY24, with 4-5% growth in FY25 driven by KG 98/2 ramp-up.
Capex of INR 33,000-35,000 crore for FY24
Management guided for a 10% increase in capex to INR 33,000-35,000 crore for the current fiscal year.
OPaL turnaround by FY25
OPaL is expected to become profitable by FY25 after equity infusion of INR 18,365 crore and use of new gas for feedstock.
Renewable energy target of 10 GW by 2030
ONGC aims to build a renewable energy portfolio of 10 GW by 2030, with initial acquisition of PTC Energy (288 MW) expected by end of FY24.
Peak oil production of 45,000 bopd from KG-DWN-98/2 by FY25-end
Management confirmed on track to reach 45,000 barrels of oil per day from the KG field by the end of the current financial year.
Gas ramp-up to 10 MMSCMD from KG field by FY25-end or early FY26
Gas production from the East Coast is expected to reach 10 MMSCMD by the end of FY25 or early FY26.
Capex guidance of ₹34,000-36,000 crore for FY26 and FY27
Capital expenditure is expected to remain in the range of ₹34,000-36,000 crore for the next two financial years.
OPaL turnaround expected from FY26 onwards
Management expects OPaL to improve significantly from next year due to lower interest costs and cheaper feedstock from new well gas allocation.
FY27 standalone oil production target of 21 MMT
Management guided FY27 standalone crude oil production at 21 MMT, up from expected 19.8 MMT in FY26.
FY27 standalone gas production target of 21.5 BCM
Management guided FY27 standalone gas production at 21.5 BCM, up from expected 20 BCM in FY26.
KG 98/2 gas ramp-up to 10 MMSCMD by mid-2026
Gas production from KG 98/2 is expected to ramp up to 10 MMSCMD by June-July 2026 after living quarters installation.
OpEx cost reduction target of INR 5,000 crore
Management targets reducing operating expenses by INR 5,000 crore through logistics optimization, dual-fuel rigs, and renewable power.
Production growth of ~15% over next 3 years
Management expects total oil and gas production to increase by ~15% by FY26-27, driven by KG 98/2, Daman Upside, and other projects.
Standalone CapEx of INR 33,000-35,000 crore in FY25
CFO guided standalone CapEx of INR 33,000 crore in FY24 and INR 33,000-35,000 crore in FY25, with ~60% on development projects.
Gas price realization of $9-$10/MMBTU for incremental production
Incremental gas from new wells will fetch $9-$10/MMBTU under the premium pricing mechanism, improving realizations.
Dividend payout of ~40%
Management indicated continued dividend payout of around 40%, with INR 9.75 per share already paid in 9M FY24.
Production growth target of 44.5 MMTOE for FY25-27
Management guided for standalone production of 44.5 MMTOE (crude oil 21.96 MMTOE, gas 22.63 MMTOE) for the period, excluding BP upside.
KG-DWN-98/2 peak oil at 45,000 bpd by Q1 FY26
Oil production from KG-DWN-98/2 expected to reach peak of 45,000 bpd by end of FY25 or Q1 FY26.
10 GW renewable capacity by 2030
ONGC targets 10 GW of renewable energy capacity by 2030, with ~40% expected by end of FY25.
OPaL to get full 3.2 MMSCMD gas from April 2025
OPaL will receive full contracted gas volume of 3.2 MMSCMD from ONGC's new finds starting April 2025, improving margins.
FY27 production target of 42.5 million tonnes (oil & gas equivalent)
Management guided for standalone production of 42.5 million tonnes in FY27, comprising ~21 million tonnes of oil and ~21.5 million tonnes of gas equivalent.
CapEx guidance of INR 32,000-33,000 crore for FY27
ONGC plans to maintain CapEx in the range of INR 32,000-33,000 crore for FY27, focused on exploration and production.
Cost reduction target of INR 1,000 crore
Through various efficiency measures, ONGC targets reducing costs by INR 1,000 crore in FY27.
New Well Gas share to increase to 24% in FY27
Management expects the share of New Well Gas in total gas production to rise from 18% to 24% in FY27.
KG-98/2 ramp-up: oil to 45,000 bopd, gas to 10 MMSCMD by Q4 FY25
Oil production to increase from 12,000 bopd to 20,000-30,000 bopd in Q3 FY25 and 45,000 bopd in Q4 FY25. Gas to reach 10 MMSCMD by Q4 FY25.
CapEx guidance of ₹33,000-35,000 crore for FY25
Capital expenditure for FY25 expected in the range of ₹33,000-35,000 crore, excluding OPaL infusion.
Production target of 47 MMtoe by FY27
Overall production to increase 20% to 47 MMtoe by FY27, with oil at 21.87 MMtoe and gas at 25.5 BCF.
OPaL restructuring expected to improve profitability in 1-2 years
Management expects OPaL to turn around in 1-2 years after equity infusion, feedstock resolution, and SEZ exit.
Standalone crude oil production target of ~21.5 MMT for FY26
Management expects crude production to rise to 21.5 million metric tons in FY26, driven by TSP initiatives and new wells.
Standalone gas production target of ~21 BCM for FY26
Gas production expected to reach 21 BCM in FY26, with 5 MSCMD incremental from DUDP by Q4 FY26.
CapEx guidance of INR 30,000-35,000 crore for FY26
Total CapEx including E&P and renewables expected to be INR 30,000-35,000 crore, lower than FY25 due to falling service costs.
New well gas to add INR 1,500-2,000 crore revenue in FY26
Revenue from new well gas pricing expected to double from INR 700 crore in FY25 to INR 1,500-2,000 crore in FY26.