New Delhi: The Oil & Natural Gas Corporation (ONGC), India’s flagship oil exploration and production company, is optimistic about a significant increase in production from Mumbai High, the country’s largest offshore oil field, within the next 1.5 to 2 years. ONGC’s Chairman and Managing Director, Arun Kumar Singh, shared these insights during a post-Annual General Meeting interaction on Friday.
ONGC Eyes Big Gains After Strategic Planning and Execution
Addressing reporters, Mr Singh highlighted the nature of exploration and production (E&P) projects, noting that such undertakings typically take time. “In the E&P sector, anything you touch, it takes a year or two because first you identify the problem, then design a solution, procure, install and commission. This is the process for even the smallest of E&P projects and it takes time,” he explained.
Singh further added, “Small wins can come in 6-7 months. Small wins will come. Big wins will take around a year-and-a-half or two years.” ONGC’s Director (Production), Pankaj Kumar, confirmed that ongoing studies related to Mumbai High would take another three to four months for completion.
Current Production and Recovery Targets from Mumbai High
Mumbai High currently accounts for approximately 25 percent of India’s oil production, with an estimated balance reserve of 80 million tonnes (around 610 million barrels) of oil and over 40 billion cubic meters of gas. Presently, recovery from Mumbai High fields stands at 30 percent.
“Our recovery so far is 30 percent. This group, which is working on it, says that it should be nothing below 45 percent,” said Singh, emphasizing the goal to enhance oil recovery.
Earlier in January, ONGC’s Technical Service Provider (TSP) for Mumbai High – bp – had indicated a potential 60 percent increase in oil and oil-equivalent gas production, from 70.40 million tonnes to 112.63 million tonnes of oil equivalent.
The CMD stressed, “The only thing we should not drop our hat till we achieve 45 percent recovery from Mumbai High.”
ONGC’s Stance on Russian Crude and Asset Acquisitions
When questioned about ONGC’s trade relations with Russia, Mr Singh stated that the company will continue to buy Russian crude oil as long as it remains commercially viable. “Russian crude oil is not sanctioned. As long as it is commercial and economic, ONGC will buy it depending upon refinery economics, etc.”
Regarding acquisitions of assets in Russia, Singh said, “ONGC is opportunistic as far as acquisition of assets is concerned. If the asset comes at a price which is reasonable, acceptable to us, along with long-term value, we have a thinking that we should go for it.” He further noted that there are ample discoveries worldwide, so ONGC prefers under-development assets that align with its strategy.
National Deep Water Exploration Mission and Future Outlook
ONGC also mentioned the upcoming bids under the National Deep Water Exploration Mission, a government initiative aimed at enhancing India’s energy self-reliance. Prime Minister Narendra Modi announced this mission on August 15, 2025. ONGC stated, “Anchored on the 2025 Act’s uniform, investor-friendly licence – first deep-water bid round expected soon.”
ONGC Videsh Faces Sanctions-Related Fund Blockage
ONGC Videsh Limited, the overseas investment arm of ONGC, currently has about USD 350 million in dividend income stuck in Russian banks due to sanctions, said Managing Director Rajarshi Gupta. Additionally, USD 600 million remains frozen in Venezuela for similar reasons.
“We believe resolution will happen soon and we should be able to get the money soon,” Gupta expressed optimism about recovering these funds.
