ONGC Says It Is Preparing for a $60/Barrel Crude Oil Future

Pankaj Kumar, Director (Production) at ONGC, said on Monday that the state-run explorer is taking several strategic steps to prepare for a future where crude oil prices may remain around $60 per barrel.

Speaking to reporters, Kumar said ONGC expects a steady rise in oil and gas production during FY2025–26 compared to FY2024–25. In the first quarter of FY26, production is projected to increase by 0.3%, while the second quarter could see a 0.5% rise.

He added that ONGC, in collaboration with BP, is implementing a Technology Solutions Plan (TSP) for the Mumbai High (MH) field. The initiative aims to raise oil output by 44%—from 45.47 to 65.41 million metric tonnes—and gas production by 89%—from 70.40 to 112.63 billion cubic metres. The project could unlock up to $15 billion in additional revenue over the next decade, Kumar said. Similar technology interventions are being explored for other key fields to further boost production.

“For the KG-98/2 offshore block, ONGC has engaged BP as a subject matter expert to diagnose the root causes of underperformance and identify well-level interventions,” he said.

The ONGC board has also approved a joint development plan for the field, which is expected to yield about 12 million metric tonnes of oil and 13.5 billion cubic metres of gas in the coming years.

Kumar further said ONGC has constituted a dedicated cost council to achieve significant savings across the organisation. The company is targeting an overall 15% reduction in costs—an effort described as “unprecedented” in scale.

In addition, ONGC is scaling up the Pipavav Supply Base, which will eventually handle nearly two-thirds of its workover operations. Once fully developed, the facility is expected to generate over ₹1,000 crore in savings by improving logistics efficiency and reducing dependence on other supply bases.