India’s state-run Oil and Natural Gas Corporation (ONGC) reported a 35% fall in profit for the fourth quarter of its financial year, blaming higher exploration costs. The company also saw a 15% decline in profit for the full year ending March 2025.
The profit dip was largely due to cost write-offs from drilling new oil wells. ONGC’s average oil selling price during the quarter dropped 9% from the previous year, to $73.72 per barrel, according to The Economic Times.
ONGC produces around 70% of India’s oil and gas. But with oil prices expected to fall due to a global supply glut, the company is moving to reduce its dependence on fossil fuels.
“We are heading towards a glut in oil supplies, which will push prices down,” ONGC strategy director Arunangshu Sarkar told Bloomberg in March. “It will be hard for ONGC to survive only on oil in such a situation. That’s why we’re expanding into new areas.”
As part of its diversification, ONGC plans to invest $11.5 billion in wind and solar energy by 2030, targeting a 10 GW capacity. For this fiscal year, the company has set aside $115 million for green energy—meaning it must scale up investments nearly 100 times to meet its goal.
ONGC also plans to grow its presence in hydropower, biogas, and green hydrogen.
Despite this shift, ONGC is not abandoning its oil and gas operations. The company recently discussed a potential $5 billion partnership with Exxon, Shell, and BP to develop a deepwater oil and gas block off India’s east coast. Current production from the site is 33,000 barrels of oil and 2.5 million cubic meters of natural gas per day.
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