India’s state-run oil giant ONGC reported a sharp 35% drop in fourth-quarter profits for the financial year ending March 2025, citing rising exploration costs. The company also posted a 15% decline in full-year profits, according to The Economic Times.
The profit slump was largely due to write-offs linked to unsuccessful exploratory drilling. ONGC also faced lower average oil prices during the quarter, earning $73.72 per barrel—down 9% from the previous year.
ONGC is responsible for about 70% of India’s oil and gas production. But with global oil prices showing signs of weakening, the company is moving to diversify. It plans to expand into refining, petrochemicals, liquefied natural gas (LNG) trading, and renewable energy.
“Globally, we are heading to a glut in oil supplies which means prices will reduce,” said ONGC Strategy Director Arunangshu Sarkar in a March interview with Bloomberg. “It will be difficult for a company like ONGC to survive in a low oil-price regime, and the new businesses provide a hedge for such a scenario,” he added.
As part of its green energy push, ONGC has pledged to invest $11.5 billion in wind and solar power, with the goal of building a 10-gigawatt portfolio by 2030. For the current fiscal year, $115 million has been allocated to green energy, suggesting the company will need to significantly scale up investment to meet its long-term target.
ONGC also plans to explore hydropower, biogas, and green hydrogen as part of its broader renewable strategy.
At the same time, ONGC is continuing to focus on its traditional oil and gas operations. It recently held talks with major energy firms ExxonMobil, Shell, and BP over a potential partnership to develop a deepwater block off India’s eastern coast. The project, estimated to cost $5 billion, currently produces 33,000 barrels of oil and 2.5 million cubic meters of natural gas daily.
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