ONGC Director (Production) Pankaj Kumar noted that while this price range is lower than past levels, it is not unprecedented. “We have seen even lower prices in 2015–16 and post-COVID. That’s the precise reason we started working on optimisation and efficiency — cost cutting without impacting operations,” he said.
As part of these efforts, ONGC is enhancing rig utilisation and shifting operations to its shore base at Pipavav, which will serve nearly 50% of the company’s western offshore operations. “Quite a bit of operations have already moved there,” Kumar added.
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The company also plans to link service costs to oil prices in future contracts to maintain financial flexibility. “Service costs are tied to crude prices, and even tangibles are moving that way,” Kumar said, adding that the company aims to remain agile amid the current price environment.
On production, ONGC has reversed its multi-year decline, with output rising 1.1% year-on-year in the first half of FY26. “We are taking steps internally to improve production — speeding up project implementation and making operations more cost and time-effective,” Kumar stated.
However, he cautioned that a further drop in crude prices to the $50–$52 range could pose challenges. “Of course, it will be a challenge if crude goes further down, but I am sure we will be able to address that. We have seen such scenarios before,” Kumar said.
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Shares of Oil and Natural Gas Corporation Ltd ended at ₹244.00, down by ₹2.34, or 0.95%, on the BSE.
First Published: Oct 13, 2025 8:28 PM IST