India's leading oil and gas producer, ONGC, has announced its commitment to invest up to Rs 1 trillion by 2030 towards achieving its energy transition goals and becoming carbon neutral by 2038, according to ONGC
Arun Kumar Singh
Mangalore Refinery and Petrochemicals (MRPL)
Hindustan Petrochemical Corporation
Chairman ONGC
Arun Kumar Singh
Mangalore Refinery and Petrochemicals (MRPL)
Hindustan Petrochemical Corporation
As part of this endeavour, the company aims to increase its electricity generation from renewable sources from the current capacity of 189 MW to 10 gigawatts (GW) by the end of the decade.
During a post-result media conference in Mumbai, Singh revealed that ONGC has entered into an agreement with the Rajasthan government to establish a 5 GW power plant in the state. Additionally, the company is actively seeking opportunities to develop projects totaling at least 5 GW more, with a particular interest in offshore wind energy. Furthermore, ONGC plans to construct a green ammonia plant with a capacity of 1 million metric tons per annum (mmtpa) in Mangalore.
ONGC also has ambitious plans to expand its oil production through various projects. It expects its joint venture, ONGC Petro additions (OPaL), and its subsidiary, ONGC
Arun Kumar Singh
Mangalore Refinery and Petrochemicals (MRPL)
Hindustan Petrochemical Corporation
, to implement expansion plans that will double their production to 8 mmtpa by 2030. This expansion involves the establishment of new facilities for the direct synthesis of compounds from crude oil.
In its presentation, ONGC highlighted that its group's total oil and gas production, including from joint ventures and overseas assets, reached 53 million metric tonnes of oil equivalent (MMToE). The company's production contributes to 68 per cent of India's overall oil and gas production.
The combined refinery throughput of ONGC's subsidiaries, ONGC
Arun Kumar Singh
Mangalore Refinery and Petrochemicals (MRPL)
Hindustan Petrochemical Corporation
and MRPL, stood at 19.09 million metric tonnes (mmt) and 17.14 mmt, respectively, in the fiscal year 2022-23. Moreover, ONGC reported total reserves of 1,221 MMToE during the same period.
ONGC is aggressively pursuing a higher exploration target of 500,000 square kilometres, with a potential of 180 MMToE by 2025-26, compared to its current acreage of 162,000 square kilometres. The company intends to focus on further exploration in the Vindhyan basin in Madhya Pradesh.
Regarding financials, ONGC reported a net loss of Rs 2477 million in the fourth quarter of the fiscal year 2022-23, as opposed to a net profit of Rs 8,859.54 crore in the corresponding quarter of the previous year. This unexpected loss was primarily due to a provision of over Rs 12,100 crore for a disputed tax liability.
The service tax department had demanded payment of service tax on the royalty paid by ONGC to the state and central governments for crude oil and natural gas production. ONGC has challenged these demands in court and plans to continue contesting the matter based on the legal opinion it has received, which states that service tax or GST on royalty for crude oil and natural gas is not applicable.
For the full fiscal year 2022-23, ONGC recorded a net profit of Rs 388.29 billion, a slight decrease of 3.7 per cent compared to the previous financial year's net earnings of Rs 403.06 billion.
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