Having set aside ₹1 lakh crore for investments in green energy until 2030, ONGC has earmarked a portion of these funds for green hydrogen plants between 2028 and 2030, contingent on the energy source becoming marketable by then.

Describing solar energy at ₹2 per kilowatt-hour (kWh) as an attractive alternative to fossil fuels priced at ₹10 per kWh, the Maharatna PSU aims to eliminate methane emissions and avoidable flaring as part of its commitments as a signatory to COP 28.

ONGC emphasised its responsibility to explore the country’s oil and gas basins and is focusing on digitalisation, including AI interventions, to enhance production through better resource utilisation.

Following a quarterly dip in total production, the company plans to increase its oil production this year by boosting output from existing oilfields and new wells.

ONGC recently opened its fifth oil well in the Krishna-Godavari basin on August 23, which is currently producing 1,100 barrels of oil per day. However, the new well is still under stabilisation and experiencing a gradual ramp-up.

Currently selling 15 BCM (billion cubic meters) of gas, ONGC indicated that gas from its new wells is expected to fetch 12% of the crude price as per government policy.

At its Annual General Meeting (AGM) in New Delhi, the company praised the government’s policy encouraging increased oil production to offset natural declines, though it noted that the policy on gas allocation may evolve over time.

ONGC clarified that it is not constructing small LNG plants itself but highlighted that Indian Oil Corporation Ltd (IOCL) is considering building them to transport ONGC’s isolated gas production to market.