ONGC to spend over ₹30,000 crore this year, turns to BP to squeeze more oil and gas from ageing fields

Oil and Natural Gas Corporation (ONGC) is planning a massive capital expenditure of over ₹30,000 crore this fiscal year. The state-owned firm is focusing on revitalizing its mature offshore fields by partnering with British energy giant BP. This collaboration aims to extract more oil and gas from ageing assets. Simultaneously, ONGC is expanding its efforts in deepwater drilling, overseas projects, and gas investments to secure future production.

This move is significant for investors as it signals ONGC's intent to maintain production levels despite the natural decline of its older fields. By leveraging BP's technical expertise, the company hopes to improve recovery rates and operational efficiency. The increased spending also highlights the government's push for energy self-sufficiency and the development of domestic gas resources.

Investors should watch for updates on the progress of these deepwater projects and the success of the collaboration with BP. Any delays or cost overruns could impact the company's financial performance. Furthermore, the execution of this capex plan will be crucial in determining ONGC's ability to meet its production targets and sustain long-term growth.