India's premier oil and gas producer, the public sector Oil and Natural Gas Corporation Ltd (ONGC), which is experiencing a gradual decline in production from its oil and gas wells, is now on an aggressive mission to boost production—optimising existing wells, drilling new wells and investing more in oil and gas exploration.

ONGC contributes to around 70% of India's crude oil and around 84% of its natural gas production. ONGC and its joint venture companies' total production of crude oil decreased gradually from 22.533 metric million tonnes (MMT) in FY21 to 20.892 MMT by FY25. Similarly, natural gas production decreased gradually from 22.816 BCM in FY21 to 20.190 Billion Cubic Meters (BCM). Proven reserves have also depleted from 596.85 MMtoe (million tonnes of oil equivalent) to 525.92 MMtoe by FY25. However, ONGC recorded its first production growth in nearly a decade in FY25, as standalone crude output rose by 0.9%.

To arrest the trend, ONGC is enhancing field management through strategic implementation of global best practices and advanced recovery methodologies, optimising output from its mature assets, says Arun Kumar Singh, Chairman & CEO. ''In response to the natural decline in offshore production, ONGC has embraced a forward-looking Technology, Services, and Partnerships (TSP) framework and has entered into a partnership with BP as “Technology Service Provider”, to revitalise production at Mumbai High field, ONGC's prime asset,'' he told shareholders. In FY26, ONGC will focus on accelerating output from its recent discoveries, enhancing recovery from ageing fields, and expanding its TSP strategy. The upcoming monetisation of the Daman Upside Development Project (DUDP) in Q3 FY’26 will boost domestic gas output, he says.

In FY25, ONGC spent a record capex of ₹62,057 crore. Currently, 21 major projects of over ₹100 crore are under execution with a total cost of around ₹65,389 crore and envisaged to get a lifecycle gain of 84 MMtoe.

ONGC is also stepping up Exploration and Production (E&P) activities, following the amendment to the Oil Fields Regulation Act to bring in more investment and technology to tap India's natural resources. In the last financial year, ONGC drilled 578 wells, the highest in the last 35 years.

In FY25, ONGC notified nine new hydrocarbon discoveries, including Mumbai Offshore, Bengal, Cambay, Krishna-Godavari, and Cauvery. It also monetised eight discoveries in FY’25, including West Matar-2 and Andapalli-1, besides acquiring 604 line kilometres (LKM) of 2D seismic data and 8,840 square kilometres (SKM) of 3D seismic data. It also added 15 new blocks awarded under OALP Bid Round-IX. ONGC, which has also commenced ultra-deepwater drilling operations in the Andaman basin, is also pursuing deepwater collaboration with leading energy companies, including BP, ExxonMobil, Total Energies, and Petrobras.