ONGC Energy Strategy 2040: Growth, Global Expansion and Green Shift

New Delhi: Oil and Natural Gas Corporation (ONGC), India’s flagship National Oil Company (NOC), continues to power the nation’s energy security while accelerating its transformation into a diversified global energy major. From pioneering domestic oil exploration in the 1950s to building a technologically advanced international portfolio, ONGC today ranks among the world’s most integrated Exploration & Production (E&P) enterprises.

A Fully Integrated Energy Major

ONGC remains one of the rare global oil companies with complete in-house capabilities across the entire E&P value chain, including seismic acquisition, drilling, production engineering, offshore operations and oil-field services.

Key Operational Highlights

• 1.26+ million barrels of oil equivalent per day (boepd) production

• Around 71% contribution to India’s domestic oil and gas output

• 8.98 billion tonnes of in-place hydrocarbon reserves

• 570+ discoveries across Indian basins

• 1042 MMT crude oil and 715 BCM natural gas cumulative production

• Approximately 27,000 skilled professionals

• 555 globally certified onshore and offshore installations

ONGC’s crude portfolio is largely light and sweet, attracting premium pricing due to lower sulphur content.

Strong Financial Performance in FY26

In February 2026, ONGC’s Board approved its Q3 FY26 results, reflecting resilient earnings despite global energy market volatility.

The company reported a consolidated net profit of ₹11,946 crore in Q3 FY26, marking a 23% year-on-year increase. Alongside the earnings growth, ONGC declared a second interim dividend of ₹6.25 per share, taking the total interim dividend for FY26 to ₹12.25 per share — the highest in its history.

The cumulative payout of ₹15,411 crore underscores ONGC’s financial strength while maintaining capital discipline for future investments.

Rather than being purely dividend-driven, the company’s capital allocation strategy balances shareholder returns with expansion, exploration and renewable investments.

Strategic Partnerships Strengthening Core Assets

Deepwater Collaboration with Reliance Industries

In January 2026, during India Energy Week, ONGC signed a landmark MoU with Reliance Industries for offshore infrastructure sharing in the Krishna Godavari Basin. The agreement enables sharing of drilling rigs, offshore supply vessels and processing facilities, reducing operational costs and improving asset utilization in deepwater operations.

Mumbai High Redevelopment with BP

ONGC has entered into a technical alliance with BP to deploy advanced recovery technologies at Mumbai High, India’s largest offshore oil field. The redevelopment initiative aims to enhance recovery rates and stabilize production from the mature asset.

Expanding Global Footprint Through ONGC Videsh Limited

ONGC’s overseas subsidiary continues to strengthen India’s energy equity abroad. OVL recently signed a strategic agreement with Petrobras for exploration in ultra-deepwater blocks in Brazil.

Operating across 15 countries with stakes in 35 oil and gas assets, OVL remains India’s second-largest petroleum company by overseas reserves.

Accelerating the Green Energy Transition

Under its Energy Strategy 2040 roadmap, ONGC is scaling up clean energy investments through ONGC Green Limited.

The company has outlined a ₹1 trillion investment plan to build 10 GW of renewable capacity by 2030. In 2026, a 300 MW solar project was awarded as part of this expansion.

ONGC has committed to achieving Net-Zero Scope 1 and 2 emissions by 2038. It has also initiated feasibility studies for a 1 MMTPA Green Ammonia project targeted for 2030, positioning itself within India’s emerging hydrogen economy.

KG Deepwater Project Nearing Completion

The Phase II development of the KG-DWN-98/2 block in the Krishna Godavari Basin is nearing full commissioning and is expected to come online in Q1 FY27.

The project is expected to add 6–7 MMSCMD of gas along with significant oil volumes, strengthening domestic supply and reducing import dependence.

Infrastructure and Technology Backbone

ONGC operates:

• 14 seismic crews

• 262 onshore and 268 offshore installations

• 69 drilling rigs (plus hired rigs)

• Over 25,500 km of pipeline network, including 4,500 km subsea

• Advanced digital interpretation systems and enterprise-wide ERP

The company aims to transition to a fully digital and paperless enterprise by 2030.

Long-Term Growth Vision: Energy Strategy 2040

ONGC’s roadmap targets:

• Doubling oil and gas production

• Tripling revenue diversification

• Quadrupling profit after tax, with 10% contribution from non-oil and gas segments

• Five to six times growth in market capitalization

Investments span coal bed methane, shale gas, gas hydrates, hydrogen, wind and solar energy.

A Legacy of Nation-Building

Established in 1956, ONGC discovered seven of India’s eight producing basins, reshaping the country’s hydrocarbon landscape. From its first oil strike in Cambay to becoming a Fortune Global 500 enterprise, ONGC continues to anchor India’s energy security while preparing for a lower-carbon future.

Analyst Perspective

Market analysts note that ONGC’s infrastructure-sharing model, disciplined capital allocation, and calibrated green transition strategy reflect a structural shift toward efficiency and long-term value creation — beyond just dividend strength.