ONGC Joins State Oil Companies JV with Shipping Corp of India

Mumbai, January 2026:
The government has approved the induction of Oil and Natural Gas Corporation Ltd (ONGC) as an equity partner in the proposed joint venture (JV) led by Shipping Corporation of India Ltd (SCI), alongside Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL). The JV is being set up to purchase and operate ships primarily for the transportation needs of India’s state-owned oil companies.

With ONGC joining the partnership, the equity structure of the JV will be slightly modified. SCI will continue to hold the majority stake of 50%, while Sagarmala Finance Corporation Ltd, an NBFC dedicated to the maritime sector, will hold 10% on behalf of the Maritime Development Fund—the first investment by the ₹20,000 crore fund. The remaining 40% equity will now be shared among the oil companies, including ONGC.

The JV plans to acquire a fleet of 59 ships over the next five years, combining second-hand purchases and newly built vessels from Indian shipyards. These vessels will include very large crude carriers (VLCCs), very large gas carriers (VLGCs), Suezmax and Aframax tankers, medium-range tankers, and offshore support vessels, with a total investment of up to ₹15,000 crore.

Ship Allocation by Company:

ONGC: 28 ships
Indian Oil Corporation: 10 ships
Hindustan Petroleum: 7 ships
Bharat Petroleum & Mangalore Refinery & Petrochemicals Ltd (MRPL): 6 ships each
Gas Authority of India Ltd (GAIL): 2 ships

The JV will operate a long-term cargo commitment model, where vessels will be engaged by the participating oil companies. Freight and charter hire rates will be linked to market indexes with a transparent “plus-minus” pricing formula to ensure fairness for all partners.

Capt B K Tyagi, CMD of Shipping Corporation of India, emphasized that the JV aims to strengthen India’s maritime logistics for crude, gas, and petroleum products, ensuring efficiency and cost-effectiveness for state-owned oil companies.

This development follows ONGC’s recent JV with Japan’s Mitsui O.S.K. Lines (MOL) to operate two very large ethane carriers for transporting ethane to Dahej, Gujarat, for ONGC Petro Additions Ltd (OPaL), ONGC’s subsidiary.

About the Joint Venture:
The JV represents a strategic collaboration among India’s top state-owned oil companies, aiming to secure long-term shipping requirements, promote domestic shipbuilding, and optimize cargo movement across national and international routes.