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Key Points

ONGC predicts that global crude oil prices will hover around USD 60-65 per barrel in the current market. The company is implementing cost-saving measures and optimizing operations to maintain profitability. They're working with international partners like BP to boost production capacity to 19 million tonnes. ONGC confirmed it won't seek government relief or external funding, relying instead on internal resources for exploration projects.

Key Points: ONGC Expects Crude Oil Prices at USD 65 Per Barrel

  • ONGC aligns operations with USD 60-65 per barrel price outlook for stability
  • Company focuses on cost optimization without job cuts for profitability
  • ONGC collaborates with BP to achieve 19 million tonnes production target
  • Internal resource generation funds E&P projects without government relief
2 min read

ONGC expects crude oil prices to stay around USD 65 per barrel in current market scenario

ONGC forecasts global crude oil prices to remain between USD 60-65 per barrel, focusing on cost optimization and production growth without external funding.

"We are expecting crude oil prices to remain in the range of USD 60-USD 65 per barrel in the current scenario - ONGC Management"

New Delhi, October 13

Oil and Natural Gas Corporation (ONGC) on Monday said it expects global crude oil prices to stay between USD 60 and USD 65 per barrel in the current market situation. The company stated that it is preparing for a steady phase of operations in a USD 60-per-barrel environment and does not anticipate any major decline in prices below this level.

Speaking at a press conference held by ONGC's senior management on Monday, officials said the company is aligning its operations and financial planning with this price outlook.

"We are expecting crude oil prices to remain in the range of USD 60-USD 65 per barrel in the current scenario," the management stated, adding that ONGC is actively working on cost optimisation measures to ensure stability and growth even in this environment.

Ajay Singh, Chief of Corporate Planning at ONGC, stated that the company is focusing on maintaining profitability despite fluctuations in prices. Singh explained that ONGC is working closely with international partners to strengthen production capabilities and efficiency. The company is also in discussions with BP to achieve a production target of 19 million tonnes, reflecting a strong push towards expanding capacity and technological collaboration.

He highlighted that ONGC's efforts include improving field development projects such as the Mumbai High field, which remains central to India's domestic production. Singh noted that cost-saving initiatives, including optimising port operations and logistics, are being implemented to support long-term sustainability. The company, however, confirmed it does not plan to cut jobs and will rely on internal resource generation rather than seeking external capital to fund exploration and production (E&P) projects.

Pankaj Kumar, Director (Production) at ONGC, added that the company is not seeking government relief despite the low price environment. "We have not sought any tax-related relief. The government is already supporting the E&P sector in other ways," Kumar said. His remarks underlined ONGC's self-reliant approach to navigating market challenges through internal efficiencies and operational discipline.

The company reiterated that it does not foresee the need to approach the market to raise funds for its exploration and production projects. Instead, ONGC aims to sustain investments through its own revenue streams while continuing to modernise operations and improve production efficiency.

- ANI

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Reader Comments

P
Priya S
While I appreciate ONGC's self-reliant approach, I'm concerned about whether $65/barrel is sustainable for long-term exploration. Global geopolitics can change rapidly - wish they had a more flexible contingency plan.
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Arjun K
The collaboration with BP for 19 million tonnes production target is impressive! More such international partnerships can bring advanced technology and boost our energy security. Jai Hind! 🇮🇳
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Sarah B
As someone working in the energy sector, I appreciate ONGC's focus on cost optimization without job cuts. This balanced approach shows mature leadership in challenging times.
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Vikram M
Mumbai High field development is crucial for our domestic production. Glad to see ONGC focusing on existing assets while planning expansion. This is what Atmanirbhar Bharat looks like in action!
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Michael C
The no-external-funding approach is bold but risky. While internal resource generation is commendable, they should keep options open given the volatile nature of oil markets worldwide.

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