ONGC Launches Initiative to Boost Oil and Gas Production

India’s Oil and Natural Gas Corporation (ONGC) has initiated a campaign aimed at enhancing its oil and gas production. This effort includes optimizing existing wells and fast-tracking production at newly discovered sites. According to Fortune India, ONGC is responsible for approximately 70% of India’s crude oil output and 84% of its natural gas.

The company has faced a gradual decline in both oil and gas production, attributed to natural depletion. To counter this trend, ONGC aims to bolster self-sufficiency in hydrocarbons. Between 2020 and 2025, the corporation’s crude oil production dropped from 22.533 million metric tons to 20.892 million metric tons. Similarly, natural gas production fell from 22.816 billion cubic meters to 20.19 billion cubic meters.

The timing of this initiative is critical as the United States has threatened India with secondary tariffs unless it ceases its crude oil purchases from Russia. The U.S. government, alongside European nations, is pressuring India to limit its imports in a bid to expedite an end to the conflict in Ukraine. Despite this pressure, India has officially declined to halt its Russian crude imports. However, reports indicate that Indian refiners are increasingly turning to U.S. crude while reducing their reliance on Russian oil.

Despite these changes, Russian oil continues to flow into India, with an average of 2 million barrels per day reported this month, according to data from Kpler. Currently, India’s domestic oil and gas production is insufficient to meet even half of its total demand, which heavily relies on imports. Approximately 85% of India’s oil demand is satisfied through foreign sources, highlighting the need for increased domestic production.

ONGC’s recent activities include nine new discoveries in the current financial year, which are expected to aid in reversing the decline in oil and gas output. The company has also secured exploration rights for 15 blocks tendered by the Indian government, a move that underscores its commitment to expanding production capabilities.

Through these efforts, ONGC aims not only to enhance its production levels but also to contribute to India’s energy independence. The focus on optimization and new discoveries could play a significant role in reshaping the country’s energy landscape, making it less vulnerable to international market fluctuations and geopolitical tensions.