Indian state-owned oil companies including ONGC and Indian Oil Corp (IOC) plan to invest approximately Rs1.2trn in the fiscal year (FY) 2024–25, which starts on 1 April 2024.
This investment, as per several media reports that cited PTI, is a 5% increase from the current fiscal year’s Rs1.12trn.
It will be directed towards oil and gas exploration, refineries, petrochemicals and pipeline infrastructure to support the energy demands of the rapidly growing economy.
ONGC has earmarked Rs308bn for capital spending in the next financial year, focusing on discovering new oil and gas reserves and bringing existing discoveries into production.
This is a slight increase from the Rs305bn capex in FY2023–24.
The company is actively developing discoveries along India’s east and west coasts.
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ONGC’s international division, ONGC Videsh, is set to increase its investment by 68% to Rs55.8bn in overseas oil and gas operations for FY2024–25.
Meanwhile, IOC, India’s leading oil refiner, is poised to be the largest investor among its peers with a proposed outlay of Rs309.1bn, primarily for expanding and upgrading its seven refineries. This investment also includes Rs32.99bn in the petrochemical sector and Rs2.36bn in its oil and gas exploration portfolio.
Bharat Petroleum Corp Ltd (BPCL) plans to increase capital spending by 30% to Rs130bn, with two-thirds dedicated to its core refining business.
In contrast, gas utility GAIL India anticipates a reduction in planned investment to more than Rs80bn, down from Rs97.5bn, as its pipeline grid expansion projects near completion.
Hindustan Petroleum, an ONGC subsidiary, will invest Rs125bn in FY25, a marginal increase from Rs120bn in the previous year.
Oil India, the country’s second-largest oil producer, will raise its investment to Rs68.8bn next year, up from Rs56.4bn in the current fiscal year.
In a separate development, Mangalore Refinery and Petrochemicals has entered a five-year long-term gas supply agreement with BPCL.
Under this agreement, BPCL will supply 0.43 million metric standard cubic metres per day of regasified liquefied natural gas to MRPL’s refinery and petrochemical facility in Mangaluru from the Cochin terminal.