State-owned Oil and Natural Gas Corporation (ONGC) is preparing for a future where crude oil prices may settle around $60 per barrel to remain profitable, said Director (Production) Pankaj Kumar.
According to the company, oil prices are expected to remain volatile, but a stable average range of $60–$70 per barrel is anticipated in the near to medium term. Kumar highlighted projects across ONGC’s eastern and western offshore assets. As part of its growth roadmap, the energy major has committed $400 million in capital expenditure for the ONGC-BP redevelopment project (Phase 1).
ONGC aims to save a total of Rs 9,300 crore by the financial year 2027 backed by a number of cost optimisation measures planned by the company. The cost reduction would account for about 15% of the planned operational and capital expenditure cost of Rs 62,000 crore during the period, ONGC is also looking to include more Technical Service Providers (TSPs) to boost production from its ageing oil and gas fields—following the successful model used for the Mumbai High field.
The company has already partnered with British Petroleum (BP) to improve production from the ageing Mumbai High offshore field. This project targets a 44% increase in oil output and an 89% rise in gas production over the next 10 years. ONGC estimates the plan could generate approximately $15 billion in additional revenue.
Encouraged by this success, ONGC is exploring similar TSPs for other key fields in its portfolio.
As part of this broader push, ONGC has also launched a major plan to revive and enhance output from its KG-DWN-98/2 field in the Krishna-Godavari basin. Since this field has fallen short of earlier production expectations, ONGC has merged eight separate projects into a single, re-engineered development plan designed to reduce costs, improve efficiency, and accelerate execution.
To support this plan, ONGC has again teamed up with BP. Through this revival initiative, ONGC expects to produce over 12 million tonnes of additional oil and more than 13 billion cubic meters of extra gas.
The company is also accelerating redevelopment of its flagship Mumbai High (MH) offshore oil field through strategic steps aimed at boosting production and efficiency. The MH field has been divided into six operational hubs to enable faster and more optimized redevelopment.
As part of Phase 2 of the MH Redevelopment Plan, ONGC is targeting the drilling of approximately 100 new wells during FY28 and FY29. These wells are expected to tap into untapped reserves and enhance long-term production.
In addition, ONGC is focusing on identifying new reservoir resources, with plans to accelerate exploration activities linked to existing infrastructure, thereby reducing both costs and lead times for development.