- ONGC plans to launch an oil trading unit by December 2026, based in Dubai or Singapore
- The company targets drilling 87 deepwater wells by FY31 with Rs 1 lakh crore investment
- ONGC aims to drill over 350 exploratory wells by FY30 to boost domestic hydrocarbon output
Oil and Natural Gas Corporation (ONGC) is planning to set up an oil trading unit by December as the state-run energy major looks to expand its presence across the energy value chain.
ONGC Chairman Arun Kumar Singh said the proposed trading venture could be established in Dubai or Singapore, as per the ONGC Media Presentation.
The company is also stepping up its deepwater exploration programme, targeting 87 deepwater wells by FY31.
ONGC plans to drill eight deepwater wells in FY27 and another 10 wells in FY28.
The company estimates that its deepwater campaign will require an investment of around Rs 1 lakh crore. It has identified potential oil and gas reserves of about 5,600 million tonnes of oil equivalent (MMToE) in deepwater areas.
The company also plans to drill more than 350 exploratory wells by FY30, highlighting its focus on increasing domestic hydrocarbon production.
ONGC is close to setting up its proposed oil trading unit, with around 95% of the work already completed.
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The company aims to start the venture by December 2026. It is currently waiting for one or two final approvals or formalities before moving ahead.
The company has not yet finalised a partner for the venture. ONGC is considering Dubai or Singapore as the base for the new trading business.
The proposed venture will handle both purchase and sale of oil and gas, allowing ONGC to expand its presence beyond exploration and production.
The trading unit could also help the company gain greater flexibility in managing its oil and gas supplies across international markets.
ONGC Q1 Performance FY2027
ONGC reported a strong improvement in its June quarter performance. Consolidated net profit jumped to Rs 17,034 crore in Q1 FY27 from Rs 6,650 crore in the March quarter.
Revenue from operations increased 29.3% quarter-on-quarter to Rs 46,460 crore from Rs 35,928 crore. EBITDA more than doubled to Rs 28,355 crore from Rs 12,666 crore.
The EBITDA margin also expanded to 61% from 35.3%. However, other income declined to Rs 1,861 crore from Rs 2,628 crore.
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ONGC Shares Performance 2026
Despite the recent earnings improvement, ONGC shares have remained under pressure. The stock has declined 17.42% over the past six months, falling Rs 49.15 from around Rs 282.20.
ONGC shares closed at Rs 233.05 on August 31, up 0.34% or Rs 0.80 from the previous close. The stock touched an intraday high of Rs 234.95 and a low of Rs 231.70.
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