ONGC sees output recovery by 2027 following upgrades to its key projects

State-owned Oil and Natural Gas Corporation (ONGC) is eyeing significant increases in its output — 21 mn metric tons (mmt) of crude oil and 21.5 bn cubic meters (bcm) of gas by FY 2027, Hindu Businessline reports, quoting Executive Director Ajay Kumar Singh. For the 2026 fiscal year, ONGC has set targets of 19.8 mn tons for oil and 20 bcm for gas. The company will look to stabilize domestic production by commissioning new offshore capacity over the next 12 months.

Projects on track: ONGC’s flagship western offshore field, Mumbai High, showed an uptick after it brought in British energy major BP earlier this year as technical services provider to stabilize output and reverse years of production decline. Also on the west coast, its Daman Upside gas upgradation project in the Arabian Sea is running ahead of schedule, with production set to start by the last quarter of next year. On the east coast, its KG-98/2 deepwater project should resume production in 1Q 2026. The project is a key contributor to India’s domestic hydrocarbon output.

REMEMBER- ONGC Videsh maintains long-standing upstream and offtake ties with MENA producers, including supply agreements with ADNOC. It also holds a 4% stake in Abu Dhabi’s Lower Zakum concession. ONGC leads the Indian consortium operating Block Farsi in Iran and holds full ownership of Block-20 in Iraq’s Western Desert.

RUSSIAN CRUDE-

India is still interested in Russian crude: State-run Indian Oil Corporation (IOC) has invited offers for Russian ESPO and Sokol blends for delivery to Paradip and Vadinar ports between late January and early February, Bloomberg reports, citing what it says is a tender document.

As India’s diversification drive continues, the refiner also sought low-sulfur grades from West Africa and the US. Bidders must certify that cargoes do not originate from sanctioned producers or terminals listed by the US, the UK, the European Union, the United Nations, or India.

The caution comes amid heightened scrutiny of India’s oil imports after US President Donald Trump pushed New Delhi to curb its purchases of Russian crude. Indian refiners, once top buyers of seaborne Russian oil, are adjusting to sanctions on Rosneft and Lukoil. Five of seven Indian refiners have skipped Russian crude for next month, with only IOC and Nayara Energy continuing limited purchases, according to a separate report.