New Delhi, June 21 (IANS) The Oil and Natural Gas Corp (ONGC) is bullish on its natural gas production, which is expected to clock an annual growth of 7 to 8 per cent with new wells scheduled to go on stream during the next financial year, Chairman Arun Kumar Singh has said.

Singh said that ‘new well gas’ production is rising sharply and already accounts for about a quarter of total gas output, and could reach 30-36 per cent in the near term and eventually dominate ONGC’s gas portfolio as mature fields are in natural decline.

The ONGC continues to drill around 500 wells annually, including exploratory and producing wells, and reported a reserve replacement ratio of more than 1.1 in FY25-26, indicating an increase in reserves.

Singh said the ONGC is currently executing projects with an investment of around Rs 33,000 crore in offshore projects aimed at sustaining and increasing output, while also targeting improved recovery from mature fields, such as Western Offshore assets, which account for the bulk of production at present.

Western Offshore operations are undergoing a major technical service partnership (TSP) programme with global oil giant BP from which early operational gains are already visible, he pointed out.

Singh said that while ONGC’s oil production is likely to remain flat, gas output will rise as newer fields are put into production.

He further stated that government policy support, including reduced royalties, continued market-linked pricing reforms and a push to fund deepwater exploration, has improved sector economics and left more revenue with upstream oil and gas producers.

Highlighting the overseas operations, Singh said production from Russia’s Sakhalin field remains stable, while Mozambique’s LNG project is advancing toward potential completion by 2028. Venezuela’s output could also rise if regulatory conditions improve.

ONGC also expects a turnaround in its petrochemicals arm OPaL and growth in its renewable energy subsidiary ONGC Green, which is targeting nearly 3 gigawatts of capacity next year, he added.

–IANS

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