ONGC chairman says gas output now exceeds oil in the portfolio. Annual gas production growth of 7-8% expected from new field projects including DUDP, DSF and offshore 98/2 wells.
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Oil and Natural Gas Corp should be called a "gas-and-oil" company rather than an oil-and-gas producer, its chairman Arun Kumar Singh told analysts. Gas output already exceeds crude oil in the portfolio, and future growth will be driven almost entirely by gas, he said.
"We should call ourselves a gas and oil company, not an oil and gas company," Singh said in a conference call. "Gas is now slightly more than oil in our portfolio."
The shift reflects a production profile that is diverging. Crude output is likely to stay roughly flat without major new discoveries, Singh said, while gas output is on a sustained upswing backed by new field development and supportive government pricing.
ONGC expects annual gas production growth of about 7-8% from projects including the DUDP, DSF fields and offshore developments such as the 98/2 wells, many scheduled to come online in the next fiscal year. The company is executing about Rs 33,000 crore in offshore projects aimed at sustaining and increasing output, Singh said.
"Gas is a more valued fuel in the Indian context, and ONGC is gradually becoming a more gas-heavy company," he said, adding that new well gas already accounts for roughly a quarter of total gas production. That share could rise to 30-36% in the near term and eventually dominate as mature fields decline.
The pricing backdrop has shifted in gas's favour. New well gas is linked to 12% of crude prices, and Singh described India's rising demand from transport and other sectors as a key structural driver. Reduced royalties and continued market-linked pricing reforms have left more revenue with upstream producers, he said.
About 500 wells are being drilled annually, including exploratory and producing wells. ONGC reported a reserve replacement ratio above 1.1 in FY25-26, meaning it is replenishing what it produces. Western Offshore operations, which account for the bulk of current output, are undergoing a technical service partnership with BP covering 100% of the asset base, with early operational gains visible, Singh said.
On overseas operations, he said production from Russia's Sakhalin remains stable. Mozambique's LNG project is advancing toward potential completion by 2028, and output from Venezuela could rise if regulatory conditions improve.
ONGC also expects a turnaround in its petrochemicals arm OPaL and growth in its renewable subsidiary ONGC Green, which is targeting nearly 3 gigawatts of capacity next year.
The exploration and production business now accounts for roughly two-thirds of the group, with gas output already exceeding oil and expected to keep rising. "In fact, gas is now a little more than oil," Singh said.
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