ONGC shares in focus as Production resumes from Offshore PY-3 Field in Cauvery Basin

New Delhi, 26 May 2025: Shares of ONGC Ltd surged over by 0.66% at Rs 245.85 in Monday’s trading session as the joint venture of Oil and Natural Gas Corporation Limited (ONGC), Hardy Exploration & Production (India) Inc., and Invenire Petrodyne Limited has successfully commenced production from the PY-3 Field, located offshore in the Cauvery Basin on the east coast of India. Originally brought onstream in 1997, the PY-3 Field had been shut since July 2011.

Since then, a multi-phase revised Field Development Plan (FDP) has been implemented to revive production. Phase I of the revised FDP has now been completed, as per the press release.

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This included integrity assessment, conditioning, and activation of the subsea well PD3SA; installation of subsea infrastructure; and hook-up to the Floating Production, Storage, and Offloading (FPSO) vessel Svetah Venetia. The FPSO is being used to process and separate oil, gas, and water.

Furthermore, the ONGC has discovered seven of India’s eight producing basins and holds the largest exploration acreage and mining license portfolio in the country. It has consistently maintained a Reserve Replenishment Ratio (2P) above one for the past decade and accounts for 63% of India’s oil and natural gas production.

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As a Maharatna PSU, the company's market capitalization is standing at Rs 3.09 Lakh crore with a P/E ratio of 8.54. The stock has been corrected by 3.76% from a YTD basis, and the target price has fluctuated by Rs 350 to maintain the buy call by ICICI Securities. Yet the stock has been facing a bearish zone amid mixed results of revenue growth and higher exploration write-offs.

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