New Delhi: ONGC Videsh Limited (OVL), the overseas arm of state-run Oil and Natural Gas Corporation (ONGC), is stepping up its global expansion strategy by exploring new oil and gas assets and working to increase production from its existing overseas projects.
The company’s expansion drive comes amid strong economic growth in India and rising energy demand, with OVL seeking to strengthen the country’s long-term energy security through overseas asset acquisition and increased production.
OVL Managing Director and CEO Rajarshi Gupta said the company was actively pursuing opportunities in international markets and was confident of securing additional global assets as India’s position and influence in the international market continue to grow.
OVL Steps Up Search for New Overseas Oil and Gas Assets
Gupta said OVL is continuously evaluating new opportunities across international markets as part of its strategy to expand its overseas portfolio.
Speaking in Odisha after receiving the Distinguished Alumni Award at his alma mater’s 24th convocation, Gupta said the company is currently focused on expanding its global presence.
He indicated that OVL could announce new developments related to overseas assets in the future.
The company’s overseas expansion strategy includes:
- Identifying new oil and gas assets
- Expanding its international project portfolio
- Increasing production from existing assets
- Strengthening India’s energy security
- Building a stronger presence in global energy markets
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OVL Targets Higher Production from Venezuela Assets
Venezuela remains an important part of OVL’s international portfolio. The company is a designated operator in Venezuela, which possesses some of the world’s largest oil reserves.
OVL currently has two assets in Venezuela and is working towards expanding its operations and increasing production from these projects.
The company’s efforts to enhance output from existing assets form an important part of its broader strategy of ensuring greater access to international oil and gas resources.
Gupta said India’s growing global standing would also help OVL pursue more opportunities in international energy markets.
Strong Indian Economic Growth Driving Energy Demand
Gupta highlighted India’s 7.8 per cent economic growth and said the expansion of economic activity was creating substantial demand for energy. He emphasised the importance of increasing exploration both within India and overseas to meet the country’s growing energy requirements.
According to Gupta, India needs to continue developing diverse sources of oil and gas supply to support its economic growth and strengthen long-term energy security.
India Has Significant Untapped Exploration Potential
While discussing domestic exploration, Gupta said India’s 26 sedimentary basins still have significant unexplored potential.
He highlighted the government’s Sagar Manthan initiative, backed by an investment of ₹84,000 crore, which he said has provided a major boost to seismic exploration and drilling activities.
Ultra-Deep and Deep-Sea Exploration to Expand
India’s exploration efforts are also expected to move increasingly towards deep-sea and ultra-deep-sea areas.
Gupta pointed out that exploration in these areas involves substantially higher costs and requires advanced technologies.
He said government support would be important in enabling the industry to:
- Deploy advanced exploration technologies
- Undertake high-cost deep-sea exploration
- Collaborate with leading international companies
- Access global expertise and technology
- Develop challenging offshore resources
Gupta expressed optimism about the potential outcomes of these exploration efforts and said he personally expected some very positive results from future exploration activities.
OVL Focuses on Sustainable Energy Security
OVL is pursuing its international expansion and domestic exploration strategy while maintaining a focus on sustainability and reducing carbon emissions.
The company’s long-term approach is centred on balancing India’s growing energy requirements with the need to lower the carbon intensity of its operations.
Its strategy includes:
- Acquiring and developing overseas oil and gas assets
- Increasing production from existing international projects
- Supporting domestic exploration
- Exploring deep-sea and ultra-deep-sea resources
- Adopting advanced technologies
- Working towards lower carbon emissions
The combined approach is aimed at ensuring reliable energy supplies for India while supporting the country’s broader energy transition and sustainability objectives.
India’s Global Position Opens New Opportunities for OVL
OVL’s renewed international expansion comes at a time when India is strengthening its economic and strategic engagement with global markets. The company expects India’s growing international standing and stronger global partnerships to create additional opportunities for acquiring energy assets abroad.
For OVL, expanding its international portfolio while raising output from existing projects could help diversify India’s sources of oil and gas and provide additional support to the country’s long-term energy security.
About ONGC Videsh Limited
ONGC Videsh Limited (OVL) is the international arm of Oil and Natural Gas Corporation Limited (ONGC) and is engaged in exploring, developing and producing oil and gas assets outside India. The company has a presence across international energy markets and plays an important role in India’s overseas energy strategy by securing hydrocarbon resources and supporting the country’s long-term energy security.
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