India's largest oil and natural gas exploration and production company, the state-owned Oil and Natural Gas Corporation Limited (ONGC), reported a sharp decline in net income in the first quarter of its 2025/2026 financial year, WPB says. It was largely caused by decreased crude prices and level production volumes.
ONGC in April–June earned a net of $917 million (80.24 billion rupees), 10% less than the corresponding quarter of last year. This decline was in line with a around 10% decline in global crude benchmarks during the quarter, which was precipitated by high market volatility related to U.S. tariff policies and the Israeli-Iran tensions.
The realization on crude oil of the company fell to $67.87 a barrel from $80.64 a barrel in the same quarter of 2024, and the revenue fell by 9.3% to $3.65 billion (320 billion rupees). The production volumes remained more or less the same with crude production at 4.683 million tons, barely higher than 4.629 million tons in the past year. Natural gas production was also stable at 4.846 billion cubic meters.
For the future, ONGC has strategized a diversification plan for countering the impact of potentially enduring low crude oil prices, which it is anticipating due to a looming oversupply of international crude. In March, ONGC's Strategy Director, Arunangshu Sarkar, said that the global industry was "heading towards a glut in oil supplies," warning these would endanger the profitability of the company. To offset this, ONGC is looking for opportunities in refining, petrochemicals, LNG trade, and renewable energy.
Among its ventures, ONGC is also attempting to buy LNG regasification capacity on India's west coast and negotiating with urban gas distributors for supply deals. A refinery project is also in the works, but the project is still in the early stages. Last year's reports said the company was evaluating an $8.3 billion refinery and petrochemicals plant in India's most populous state to address increasing fuel demand.
By WPB
Oil, Crude, Bitumen
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