Oil and Natural Gas Corp (ONGC) — a Maharatna central public sector enterprise (CPSE) — expects crude oil to hover around the $65 per barrel mark going forward, its chairman Arun Kumar Singh said at the PSU’s 32nd Annual General Meeting (AGM) this week.
ONGC is keeping a close watch on the global situation, and though it seems unlikely that the current scenario will last very long, it is prepared for any development, said Singh on Friday.
‘ONGC always open to buying overseas assets’
“We are always open to buying overseas assets, provided the price is right and the risk is lower, since there are fewer buyers in the world,” he said at the AGM.
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His remarks come at a time when Brent crude — the global benchmark for oil rates — has broadly moved within the $58-83 a barrel band so far this year, with factors such as increased production by top producers, slowing global demand, geopolitical tensions and trader tariff-related uncertainty influencing the rates.
Analysts have feared a global supply glut with top producers’ grouping OPEC+ raising its output in sharp contrast to its voluntary cuts initiated in 2023.
The ONGC stock rose 0.2 per cent to end at Rs 233.8 apiece on BSE after the news.
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The ONGC chairman also said that the company is evaluating the idea of a crude trading unit. “As of today, we are not ready, but we are considering it,” he said.
He also said the company is not very keen on overseas exploration but will move ahead if it comes across developing or under-development assets.
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No official restriction on Russian oil purchase: ONGC
Speaking on India’s oil purchases from Russia amid criticism from the US, Singh pointed out that there is currently no official restriction on it.
As long as there are no directives from the government, ONGC is ready to buy, he said.
In a presentation to investors, ONGC mentioned a rise in crude oil production on account of the monetisation of its KG 98/2 project.
The company has staged a trend reversal in terms of standalone crude oil production, closing FY25 with an increase of around 1 per cent in output.
The company said it has 21 “major” projects under implementation (nine development and 12 infra projects), with an investment of Rs 66,175 crore.
ONGC considers projects worth more than Rs 100 crore as major.
The ONGC stock has declined 1.5 per cent so far in 2025, underperforming a 2.9 per cent rise in the Nifty 50 index.
