Good morning, ladies and gentlemen. I am Manish Patil, Director (HR), ONGC, having additional charge of Director (Finance).

I welcome you all to this ONGC earnings call for Q4 and financial year ended 2025-26. Thank you all for joining us on the call.

As said earlier, we have with us Shri Arun Kumar Singh, Chairman and CEO, ONGC; Shri Rajarshi Gupta, MD, ONGC Videsh; Shri Anupam Agarwal, Director (Finance), ONGC Videsh. Also present are my colleagues from ONGC: Shri Yogish Nayak, CFO; Shri Ajay Kumar Singh, President (Planning and Transformation); Shri Satish Kumar Dwivedi, Chief BD and JV; Shri Ravindra Singh Negi, Chief of Investor Relations; Shri Sanjay Kumar Sharma, Head (Investor Relations); Shri Prakash Joshi from Investor Relations; and Shri Akhilesh Tiwari, Head (Corporate Accounts).

ONGC has compiled its financial results for the quarter and the financial year ended 31st of March 2026, which have been audited by the statutory auditors. The financial results have already been released on 26th May 2026 through a press note and sent to the stock exchanges.

This has also been sent to the analysts who are there on our mailing list. Here is a brief synopsis of the results.

The company, at the consolidated level, has earned profit after tax of ₹13,678 crore during Q4 FY '26 against ₹8,965 during Q4 FY '25, which is up by 53%. There is also an increase of 30% in consolidated annual PAT, which is ₹49,793 crore during FY '26 as against ₹38,329 crore during financial year 2024-25.

This increase is consolidated PAT is mainly supported by performance of our subsidiaries HPCL, MRPL, OVL, and OPAL. Now coming to standalone financials, there is an uptick of 3% in PAT on quarter-on-quarter basis on account of improved crude realization and rupee depreciation.

Company has earned profit after tax amounting to ₹6,650 crore for Q4 FY '26 against ₹6,448 crore earned during Q4 2024-25. Annual PAT for FY 2025-26 stood at ₹32,894 crore against PAT of ₹35,610 crore for FY '25, impacted by lower per barrel realization of crude oil.

Statutory levies have decreased by ₹4,820 crore, that is 15.6%, that is from ₹30,968 crore in FY 2024-25 to ₹26,148 crore in FY 2025-26, mainly due to lesser realization of crude and abolition of SAED with effect from 2/12/2024. There is an increase of ₹3,373 crore in other expenses during financial year 2025-26, that is ₹28,104 crore in FY 2025-26 to ₹24,731 crore in FY '25-26—FY '24-25.

This is on account of increase in provision and write-off by ₹1,142 crore and increase in exchange loss by ₹1,932 crore. Provisions and write-off has increased mainly on account of one-off provisions in Q4 FY 2025-26.

It includes provision of GST on royalty of ₹235 crore, expenditure of ₹262 crore related to KG-98/2 umbilical written off as per opinion of ICAI, which was previously capitalized, provisions for old outstanding receivables of ₹257 crore, provision for store and spares of ₹280 crore. There is an increase in exchange loss by mainly on account of depreciation of INR versus US dollar by ₹9 per US dollar, that is 11%, in financial year 2024-25 versus financial year 2025-26 and upward revaluation of foreign exchange liabilities.

ONGC declared three hydrocarbon discoveries during financial year 2025-26 in its operated acreages. All the discoveries are in shallow water region of Mumbai Offshore; two are new prospects and one is new pool discovery.

Standalone crude oil production was 18.355 million metric tons during FY '26 as against 18.558 million metric tons in FY 2024-25, and standalone natural gas production was 19.533 BCM in FY 2025-26 as against 19.654 BCM in FY 2024-25. While ONGC's production has remained broadly flat in recent years, the company has now taken a series of bold, structured, and long-term initiatives to address exploration and production challenges.

ONGC has entered into multiple new ventures and strategic partnerships for overall production growth, entering into new business verticals, expanding renewable footprint, and as a strategic enabler for expanding our subsidiaries. The board has recommended final dividend of 20%, that is ₹1 per share.

With dividend payout ratio of 51%, the total dividend for financial year 25- 25-26 would be 265%, that is ₹13.25 per share of the face value ₹5 each, with highest-ever total payout of ₹16,669 crore. Friends, with this I finish my briefing of the results of the fourth quarter and financial year '25-26.

Now I will request Shri Arun Kumar Singh, Chairman and CEO, ONGC, to address the attendees to give you a detailed overview of the performance and future roadmap. Thank you.

Good morning, ladies and gentlemen. It is a really great pleasure for me to interact with you.

First, I'll give you a broad, I don't know, 30,000 feet view, and then you can we can take questions. First and foremost, if you take E&P side of ONGC, ONGC now is 2/3 E&P and 1/3 non-E&P at a group level.

So 2/3, if you see, E&P, which is continues to be the main thrust, the two, three macro trends if you see is definitely first one is that you might have heard that there's a great push towards exploration, and government is seriously considering to fund, particularly deepwater exploration, which we were doing so far at our cost, but of course size was small. Now deepwater exploration is coming in focus from government side.

Second, if you see at policy level, which is a macro level, if you can read the pattern of time, government removed, reduced royalty from our onshore productions, and basically these all royalty, post-well head, all are in the direction of promoting E&P in the country. In fact, taking a hit on government own revenue and literally giving that money to you for increasing production or doing more exploration.

That intent That's also You must have noticed that, unlike previous decade, this time when the oil hit $100-plus, still SAED did not come. We thank government for that because whatever market price is there, ONGC is able to realize that.

In fact, ONGC now is a is you can say safely that other than the APM gas, government is not controlling any of our, revenue stream. It is purely left to ONGC to manage its revenue stream, be it production or be it the price.

Only area where government is involved today is APM gas. First and foremost, we have want you to know that ONGC produces today and sells more gas than oil.

In fact, gas is now slightly more than oil. Gas side, if you see now, we are in new well gas, this was last year, say last year was around, volume-wise it was 17 and revenue-wise 21.

This year we you can safely you are you can do your own number crunching. There is a big jump in new well gas.

Already from 1st April it is 9 MMSCMD-plus. You can expect another 3 very easily because our new project is new well gas only.

It becomes 12. 12 out of say whatever we sell, 25% of our gas has become new well gas.

New well gas, if you notice, we get 12% of crude. Virtually this is an international price.

In fact, world over local market, I don't think there is any market in the world which pays more than 12% of, oil price. LNG is different because LNG liquefaction and all that cost, but probably India is the highest paying new for new wells.

India is the highest paying market in any onshore thing. That also goes to prove that government intention is to leave more money with the E&P operators to do further production and exploration.

Now bigger story therefore in our basket today is that gas new well gas will be always on rise. Now from 17%, this will This has already jumped, I think it will be at 30%, it is as time will tell, but ultimately because there is some margin we have to take for what happens, but literally it will be between 25 to 30% anywhere this year, and next year will be again 30, 30 to 35, 34%, 36%.

Every year because, as you know why, I'll explain you this why new well gas is on rise. That doesn't mean that gas production is on in the same ratio rise because it is gas is shifting because our old wells are dying and nearby we will drill new wells to produce same gas or more gas.

Therefore, the $7 gas is gradually getting replaced by 12% gas. That is only a matter of time before four, five, six years max, even if the government policy doesn't change, if the same policy continues, when almost almost 80, 90% of ONGC gas will be new well gas.

This is something that you can factor in in your calculations that new well gas, what price, at crude price of say $90, we get 10.8. 10.8 in the local market is is is we we value it more than oil, to be very frank with you, because for different reasons that we cannot share with you, but our gas gas is not as cumbersome as oil.

That's it leaves more money in our pocket. That is so far the gas part is concerned.

Third part, India is is oil oil may be flat, but gas, because our unless we get some major discovery, gas will keep growing. Like for example, this year itself, we have we have started opening the wells.

Out of 15 wells, we have already opened four wells for Daman project, which is supposed to be 4.85 MMSCMD gas. Progressively we do it because, one by one, one by one, to balance the system.

If you take that quantity of say 4, 4 on total our gas sales is today say production is around 53, 54. Even production-wise it is, and these are all neat sales gas.

What I'm trying to tell you that every year 7 to 8% increase you should expect in gas because this year is Daman, next year is DSF. DSF is also again 4 to 5 MMSCMD gas.

Plus also we are hopeful to open complete 98/2 gas wells because the wells are complete, now platforms are complete. Often we told you that that project got inordinately delayed for geopolitical and, because all the vendors were foreign-based.

Now we are hopeful that now it's lastly we are doing we are doing the piping connection, which is which is internal to our work. July, August, we'll open those wells too.

You can safely assume that our gas production will be up and compared to last year. Next year also gas production is up on account of, it is not only for us, it could be true for other operators too.

Gas production and gas is becoming more attractive because of the price that Indian market pays for gas. This is something that I wanted to tell you.

Then third thing that fourth thing is important is that we roughly drill around 500 wells. 500 wells, mean 100 wells are exploratory wells and around 400 are producing wells.

This year also we are increasing a little more. 550, 560 wells or a little more than that we will drill more.

For the reason to basically augment or support our production base. As at the same time, you should be mindful that in in this business, old field depletes, pressure goes down, and therefore every time we have to search for new.

Fortunately, for last year, our reserve replacement ratio in '25-26 is more than 1.1. It is 1.15 or something like that.

1.

17. It means we found new oil and gas equal to what we sold.

It means R/P ratio almost remains at the same level. Reserves to production ratio 2P reserve is around 700 plus, which is almost two, three, million tons less or more, more compared to last year.

Futuristically these are relevant for you, I thought I'll share that information to you. Now coming to our deeper bigger commitments.

Bigger commitments are this year one thing you must know that I want you to know that we are today executing almost around ₹33,000 crore of projects in Western Offshore that is currently worked in, work is going on. That is total project value is ₹33,000 crore.

These all are there to either sustain production or increase production. You can you can be you can draw your own numbers that how much will contribute into increased production.

That is something that we are we want you to know. Plus also we have this year also we'll we are in the process of that we'll share with you at appropriate point in time that how much we are doing new projects.

Basically that part, and then one more thing we want you to know that global outlook you observe better than us, global outlook of oil price is certainly for next two years is better than what it was previous two years. You have to draw your own inference to see that where ONGC will be.

This is by and large I have shared ONGC picture of the price. One thing which is really are very proud that for Western Offshore, which is roughly our 60% of oil and 70% of our gas comes from Western Offshore.

Western Offshore is our lifeline. You may be aware that we gave BP TSP contract for Mumbai High.

Mumbai High was only 38% of total Western Offshore. Yesterday, day before yesterday, we awarded TSP2 for remaining 62% of Western Offshore.

Now 100% of Western Offshore is with BP as TSP. We had we shared with you the number that on the baseline number BP showed a good result, although in our industry even the, leaf doesn't move earlier than two years.

Anything we do, it takes time in E&P industry. First year itself, they showed some operational changes here and there, and we could see some results.

Now the big things are under execution. Big things means CapEx projects, mainly the injection water injection wells, producers, what what what what we call group work.

It's our TSP team did. That work we are under execution.

This year we will execute 40% and next year we will execute 60% of the foundation. Remaining, which were just now awarded, I hope I hope that next year will come for execution and for remaining 62% of the field.

TSP we are we are betting big on TSP with BP, and at least initial shoots prove the, line of thinking was right, because that too in a very short span of time. Last year April, they came.

We are very hopeful about outcome from that. Now one more thing we want to share with you is 98/2.

I shared with you gas, but I'll be very honest to say that we had some geological surprises in production in 98/2 oil, but we have almost got full handle on it, and we know what to do now. What to do now interventions, sustaining the production.

This is something that we should we we we yesterday in our press release also been mentioned. Gas wells will open, and now we have best international experts to also to suggest us that what to do best in 98/2.

These are small, small interventions that we need to do, and that we will do in the to in the in the short course of time. This is something about E&P.

Now coming to OVL, our subsidiaries and our other activities, the primary the first thing you may be aware, we are back in Sakhalin, and Sakhalin is full blast. Russia is producing almost what it was producing pre-Ukraine.

Sakhalin is at same level. You can draw your own inference see what kind of thing it will do to ONGC Group.

Sakhalin is our numero uno asset in the cap of OVL. Second good news of company is that Mozambique project is progressing very fast.

There are 6,000 persons on the site doing project. We hope that if everything goes well, '28 end or something you should have our that LNG.

This is something that is happening good on the front of OVL. Plus third thing which is also important is Venezuela.

We are very hopeful that Venezuela we're producing something currently, but now in the new regime of American new regime, we are hopeful that our, production will go up substantially after we get the license in the new regime, that is US regime and all that. Hopefully and Venezuela also will start showing good number of production in years to come.

This is something that on OVL side. OPAL side, we had we was promised we had promised that we'll turn it around.

We almost turned it around. Because last year if we had some small issue, otherwise our EBITDA was 1,500 crore, but we achieved 1,206 crore.

There was some last month March issue came, and the petrochem petrochemical industry had shut for the want of gas because gas got diverted. Some gas got diverted to LPG and all that, otherwise we were there what we had promised that 1,500 crore will be our EBITDA of OPAL.

Let's hope that next year, that is this year, it achieves again our internal target is 1,500 to 2,000 crore. It achieves EBITDA of that 2,000 crore.

Now, we want to share with you that something that is last four, five years, you must have observed us that we have been very bullish on OGL, ONGC Green Limited. ONGC Green Limited is having two, three mega One is 100% subsidiary of ours which we acquired from PTC, and the other one which we acquired with NTPC.

That Ayana is now 3,000 MW-plus, and hopefully it'll add another 1,000 MW in this year. There we are almost with our own production what we had.

We have become now you can say that now we are almost close to 3 GW by next year in terms of our renewable portfolio. Also Ayana, is it turning out to be a good asset because it has old PPAs and all that, as you're aware.

Which is something that that renewable segment that is our flagship. Cost reduction side I want to talk about because cost reduction side we had promised 5,000 crore.

We almost got 4,000 crore. You'll say that where is that money gone?

Money has gone in terms of GST went up in oil and gas from for input 12 to 18%. That itself wiped out ₹2,000 crore for us for a year.

I am saying both everything put together. Then second issue came is this dollar conversion this, rupee depreciation.

This ate away all that 5,000 4,000 crore we saved. We are on course to save 10,000 crore.

I've told you that hopefully in another three, four thousand crore will come our kitty with host of efforts, and it is already in place. Now shipping side, as you are aware, we have formed a JV with Mitsui.

We have ordered two ships for very large ethane carrier for our OPAL. Shipping side that is something that is another activity.

Now petchem we have that also we have shared with you in stock exchange filings that we have approved creation of a JV between MRPL and OPAL to have better synergy in petchem marketing. These are two our companies and two having independent everything.

We are basically amalgamating the marketing part so that there's one umbrella brand under which the product gets marketed. This is something that we have board has approved.

It is now in the final stages of other statutory requirements. Hopefully there also some value should get created.

Yesterday in our board we approved port business. We are forming we yesterday approved the formation of a new JV with Gujarat Maritime Board to create a new port at Dahej.

I want you to know that Dahej is the least most least distance port for northern denser population part of the country. Naturally anything to land at Dahej is cheapest for the country in terms of transportation, further transportation.

Dahej, we know that Dahej also is nearest for our LPG pipeline, that is 8 million ton Kandla-Gorakhpur pipeline. Plus this port will serve our own interest of this OPAL plus LPG, it is from day one it becomes it it should be a a very very highly financially viable and commercially profitable venture.

It's 50-50 JV between us and Gujarat Maritime Board. This is something that So if you notice, five, six new JVs have come in recent times.

Basically, increasing our chances of other revenue streams. Including renewable, including but basically in the all-in-energy space.

It's not that we are and plus integrated to our own line of business, like shipping, what we did is for our own shipping ethane transportation from US for our own plant. Now coming to I think I have I am done with most of things.

Except unless you you did I miss anything?

No. Huh?

This is macro picture. Now now now we want you to know that that gas is more lucrative for us today.

In in Indian context, gas is more lucrative. We should call ourselves gas and oil company, not oil and gas company.

Also, no, whatever new gas comes, these are all, even from APM block, like D- DSF is free pricing. DSF, which will come next year, is market price.

It doesn't it is not even governed by 12% slope. So 12% slope is only for nomination field, and any well, like this project of Daman is is in the in the nomination block, and therefore entire production is going to the new well gas.

New well gas is 12% of crude price. This we want you to be mindful, and therefore ONGC gradually is becoming more greener company through more gas.

Now now that is also a strategic fit for the world that possibly only one oil and gas company in the world where it produces more little more gas than the oil. This is something that, as oil production of the world is around 4,000 million ton, 4,000, 4,400, and gas production is 2,500.

We are at almost matching oil and gas equivalent, and gas is little more than that. It is something, and gas is more valued fuel in in the light of what goes on in in fact.

In fact, you will be very you have you must have seen the market. In India, gas demand is galloping.

Maruti alone is selling roughly 25% of his vehicles CNG vehicles. Car manufacturing, because CNG is a natural and CNG demand is viable at 12% price.

Naturally to be more greener, and it is also gas we can produce more and more. That that confidence we have.

Oil, I'm not saying we can we can't produce, but oil growth, in our view, will be, unless we have some big discovery, will be muted. Gas gas growth will continue to be.

We are this impression that ONGC will not grow is not correct. We'll grow more on gas side, so that factor you should keep in mind.

With this, I'm done. Now you can take questions.

having this call. Really appreciate the elaborate initial brief that you gave.

It gives a very clear picture. My question was with respect to gas production.

The first question is with respect to gas production. As you mentioned, your incremental focus is on gas, and you spoke at some length about it.

What I wanted to point out that it's quite surprising over last five years our gas production is on a continuous decline despite whatever investments that we have been doing and despite the guidance as well. If I remember right, our earlier guidance during this year was that by January the technical partnership with BP would start showing some results, and we'll also have incremental gas coming in from Daman offshore as well as other fields in Western Offshore, which will contribute about 5 MMSCMD by end of March.

I just want to understand what is the status of these projects? Was there any incremental production that came in, and the decline that we saw in this quarter was despite this production coming in?

In that backdrop, what is the guidance for FY '27 and FY '28 for gas production for us and also for the JV? That would be my first question, sir.

BP in the MH field, that is Mumbai High, that is TSP1, there oil is on baseline target oil is 102%, we have disclosed that yesterday, and gas is around 108 or 109%. Gas for the BP has gone up, but as I told you, oil and gas production, there is some small operational part and there is largely facility part.

Facility part is coming up. It is first year itself MH has shown a number.

First year was never supposed to be a great number because facility laying will take around a minimum 1 1.5 year to 2 years. That is, but still where BP is involved, production is more compared to what we are targeting.

Now coming to Daman, yes, in March Daman we were targeting March, and March we have started opening the wells. Try to understand that it is not something that you start today, everything you open in one day.

We go through a process. There are 16 wells, and all the platforms, all the four platforms are fully ready to receive gas.

Four we have opened, and remaining 11 we have to open. Whatever we had committed to you, we will start monetization from March, I think we have honored that, okay?

Now monetization commencement doesn't mean that full thing coming in in one day. There's a startup plan, which takes around 6 to 7 months, and that process we have to go through.

In this monsoon, we hope to open at least another 6 to 7 wells. Now monsoon is starting now, the fifth well is under opening now, then sixth will come, then seventh will come, eighth will come.

There is a process and sequence to be followed for gas production, and because you have to synchronize with the pressure balancing you have to do, the well doesn't get overpressurized and all that. There are technical issues there.

We are sticking to that plan that monetization commenced in March. Hopefully by September, October, we should have opened all the wells.

Again, I just want to tell you, peak production doesn't mean that after we open all the wells that peak production happens. Peak production happens on the reservoir maturity.

After pushing some gas out and all that, then again interventions are made, and therefore peak production may be for a little further away, but all the wells we are hoping to open just after monsoon. It should be completed after monsoon.

That September, October, we should be through with all the wells' opening. Opening should give us around 3 to 4 MMSCMD per day.

Did I answer your both questions?

Yes, you did answer this to an extent. I also wanted to have the guidance for '27 and '28.

I do appreciate the complexities in these projects, sir, and really appreciate the good job that ONGC is doing, but I was only going by the guidance that you all gave at the beginning of FY '26.

No, I tell you, we gave a hint in yesterday's press release. I read it.

Though I didn't write, but people have written it well. They have said very clearly that the Gulf War, March, many projects got delayed because of the Gulf War.

One of our major pipeline replacement projects by a Saudi and Dubai firm. Naturally that project got hit because of the West Asia issue.

In fact, geopolitical issues, then similarly there are some projects which got linked to material availability and all that, that was also because of. Somebody's not getting energy, everybody asks for deferment of time.

Still you should appreciate that fortunately Daman we were chasing very badly, we got on time. Other projects, little delay here and there, and also you should be mindful when we connect the new projects with the old wells, there is a process to be followed in which the certain portion of time the production suffers because there is a partial shut-off or major full shut-off so that we can do the activity.

Some part you can attribute to that. If you see last year, ONGC standalone gas production, it is almost flat.

It is not 0.6% negative only, if I remember correctly. If you are hinting at our JV partners, that is Vedanta and all that, that figure I can't tell, but ONGC standalone, pure standalone, means ONGC-operated block, not ONGC jointly or operated by someone else, we are almost oil may be -1% and gas we are 0 0.6%.

Almost we are flat level. Our Daman number was supposed to come from April only, yeah?

Sir, I was referring to average production as well as the quarterly production. In this quarter, if we look at it, our gas production is down by 2.5%, and yes, if you look at No,

I gave you the reason. The projects are under commissioning.

Many things, as I told you, wells are under opening and all that. We have to shut other wells to gradually open these wells.

Anyway, these are technical things which may not worry. Whenever you commission something new, there'll be temporary dips.

Okay. This quarter is primarily attributable to that dip, 2% minus.

Pardon me if it came across as somewhat, I don't know, but I'm trying to put it as mildly as possible. If you look at, even KG-98/2, the project is not delayed, it's severely delayed, we have been guiding in almost every quarter.

Yes, sir. But 98/2,

first of all, 98/2 we gave you a hint that we had a geological production surprise. Gas wells are yet to be opened because platform was not ready.

Platform

got ready, and then now it's connections are going on. Hopefully, we are hoping that July, August we'll open those wells.

Yes, sir. I just wanted to have the guidance therefore for '27 and '28 in light of what you spoke about opening of wells in

We can't give you exact number, okay? That you have to extrapolate.

Okay.

We can't give you because unfortunately, we give you a number and then you cling on, and then you ultimately blame us. We are in E&P, it is called exploration and production, it is always a No,

no, sir. We're not going to hold you on to any specific number.

If you can help us with some broad guidance, that will be helpful, sir.

Broad guidance I gave you, it will grow, gas will grow. Nitin, let now ask other questions to come up, okay?

Sure. Second question, I'll join the queue once again.

You can join the queue later, yeah.

Nitin.

Thank you.

Hello, sir. Good evening.

Yeah.

Sir, thank you for this opportunity. Really appreciate the detailed brief you gave earlier.

It adds a lot of light to what we're trying to understand about the company. Sir, I had two questions.

The first one is relating to discoveries. Could you throw some additional light on the discoveries what you mentioned earlier, the three discoveries in the brief, what you had mentioned?

Could you just add more clarity in terms of what is the potential production you're seeing there and what could be the CapEx for these assets?

These are under appraisal, okay? All I can say that discovery flow rate was to my mind for Western Offshore was fantastic because the two three discovery that have quoted you yesterday, two in Western Offshore and one in Assam, both the discovery is a fantastic flow rate it has shown.

Only thing is, unless we put some more wells nearby and assess the reserve size, we can't give you a definitive figure that how much will produce. We are now very bullish on these two discoveries because it is completely a different area.

Frankly, we were not expecting this flow rate. Naturally, but we can't tell you the quantity because unless we have one one or two more appraisal wells.

In our industry, discovery is made, then after discovery, then you appraise by drilling some more wells to delineate the area, and then you assess the quantity. Once you assess the quantity, then you develop the field development plan, then you decide the CapEx.

All I can say at this point in time, by Western Offshore standards, it looks very, very promising. Quantity I will stay away from because that is not correct on my part to say without appraisal.

Sir, then you'll be adding, let's say, another three exploratory wells there and then giving us a more detailed No, no,

number I will give you then. We are sure that it is worth developing, I can make that statement, but what is the reserve size and what will be the facility size will come to know only once we have the appraisal done.

Appraisal done means one or two more wells. That's already under planned, it must be happening now.

Sir. Thank

Am I audible?

Yeah.

Yeah. Okay.

Thanks for taking my questions. I had two questions today.

For my first question, could you share some thoughts on why the government has not implemented any windfall taxes recently in higher oil prices and whether there's any expectations of such going forward? This is my first question.

Hey, this

you should ask government, not me. See, we are damned either side.

Do, then also you are damned; last time SAED government applied, everybody said government is interfering too much. This time government has not applied, then also you are not happy.

It is good for ONGC because even when the crude price went up to $140, what you can infer from here, I think I would imply to infer you that way, that government doesn't want to interfere with the E&P sector. It wants to give full freedom to whatever because you know our import dependence.

They want every drop to come out, and whatever they can do, they have done. In fact, that not as saying because government has appointed me, but because I'm saying because they didn't apply SAED despite so much of crisis and so much of loss to ONGC.

Otherwise, we were the first fall guy to compensate partly by giving SAED either through exchequer or even earlier times we have given discounts up to 2 lakh crore in the previous time when 2013-14 that SAED government didn't collect, but we directly gave the discount to our crude purchasers in India. This time nothing like that happened.

We got flat Brent even when it was $140, we also got $140. You should be happy, no, as a ONGC investor?

Yeah. Thank you, sir.

Okay. For my second question, what is the latest updates of the proposed APM gas price deregulation from January 2027?

Price deregulation, as of now, I can't say about government. Government for this year because it is supposed to be reviewed this year because Parikh committee has asked for review in '27.

In a way, whether that review is required or not, that is a million-dollar question because we have already reached $7. $7 gas is our kitty next year will be out of total gas will not be more than 50%.

If the review, well and good; if they don't review also, we have new well gas. The new well gas will keep replacing old well gas.

Therefore this journey of 10 to 12% migration each year will happen. I think if they can revise it right now, we'll be more than happy, but at least directionally it is clear that government wants to compensate very handsomely to gas producers.

Because I can't say on behalf of government that what government will do.

Thanks for the opportunity, sir. We are all quite enthused by the government support in the form of a reform in royalty front.

Is there also a plan from our side in terms of increasing exploration as well as development CapEx given this backdrop?

It will be premature, but intention at least what we understand from various sources that intention, of course it is for government to take a call finally, is that how much will support, but it looks like there's a big support for exploration and production coming from Union Budget.

Are we looking at increasing our CapEx, sir, which from that 103, 104, or is that something different? CapEx,

that depends on what contribution gets announced from there. We'll adjust our figure accordingly so that we continue to give you handsome dividend.

Fair enough, sir. Secondly, in the case of discoveries and the reserve replacement ratio, we have given the 2P reserves.

Unfortunately, we don't have the baseline 2P reserves for the entire company to compare ourselves with. If you can provide that, that's helpful, sir, for oil and gas.

That we'll give. Subsequently after this call, we'll share with you.

Sure, sir. Thank you.

Because

our baseline last year addition is 44. In fact, this year addition, '25-26 addition is 44 million ton.

We produced roughly 40 million ton of oil and gas, 4 is additional. You should be happy about last year performance.

Base year will be the previous year performance, and god has not given us eyes in the back.

We will share with you, we will share with you. This number also we'll share with you.

Yeah.

Hi. This is Amit from Motilal.

On CapEx, could you give a number as to what can be expect for FY '27?

See, it remains generally 30-bound because now 33, some will spill over, but it should be anywhere 32, 32, something like that. If more CapEx to bring more production comes, we will be happier to spend more.

I am talking about E&P CapEx, non-E&P CapEx is separate, because now 1/3 E&P CapEx goes in non-E&P side. We are not going in that ratio, but this we talked about E&P CapEx.

Sure. Ballpark, this is 33 E&P and then another 10, 11 non-E&P?

If the good opportunity comes, then you can take it. Because we have currently no plan, but some new business opportunity comes, we'll invest there 8 to 10.

Sure. What can you provide the KG-D6 oil and gas run rate right now?

Sorry, KG-98/2 oil and gas run rate?

How much is gas numbers?

98/2.

98/2 production... Currently it is 2.3.

Oil is 24,000. So

2.3 gas.

Once we open the well, it will be 4 to 5. It could be He's asking about the current production.

So 2.3 gas and around 25 24 to 25.

24,000

24,000 oil, yeah.

I see that both have actually been dropped quite substantially from where we were earlier in the year.

No, in fact, I told you that we had surprises. In fact, it is compartments, but we have got a solution now in hand.

We have to implement it. It should be back.

Because the reservoir proved to be different from what we thought.

What is the run rate you're targeting now?

It should come back to same level, but it will take around a year or so minimum because we have to drill some wells.

Hi. Thanks for taking the question.

Sir, just again trying to get some headway on the CapEx side. Let's say, as you mentioned, you drill 500 wells out of which 100 was exploratory.

What should be that annual run rate next 2, 3 years given the impetus on exploration that we are trying?

It depends on what government support comes.

Okay. Outside of deepwater, how should we think about it?

Maybe deepwater is contingent on

Outside of deepwater will continue to be today see, roughly we last year we drilled how many, eight wells? Seven, eight deepwater?

Eight

eight wells. No, no, eight wells.

Deepwater four wells.

Four wells, but deepwater one well is equal to 100 wells of onshore.

Right.

Right. Hope you got my point.

Got it. Sir,

where we are coming from is largely, let's say if you were to see Oil India, they were at ₹4,000 crore run rate sometime back. Last 2, 3 years, they have increased and now they are guiding at about a ₹10,000 crore run rate.

From an overall CapEx perspective, we have seen about a 2.5x increase purely on the standalone oil and gas side.

Where No, I'm sorry for cutting you short because we can't afford it. We can't ₹30,000 crore we can't make it ₹75,000 crore.

India probably can afford it, I won't comment on it.

Sure. Which is where we are trying to guess that where will ONGC end up with on a run rate basis given the impetus on exploration.

So

ONGC's own budget will remain almost 31, 32. Okay.

Depending on if external support comes, then that much extra we'll do. Internal support say CapEx will be around 30, 31,000.

Okay.

Good morning, sir. Thanks for taking my questions.

I have a few of them. Firstly, on dry well write-offs, this was possibly your biggest quarterly write-off.

Are there elements of some one or two really large wells? In terms of your overall exploration spend of the 33,000 crore, how is that likely to be in FY '27 versus how it was in FY '26?

Look, sure,

our exploration spend is typically 8 to 10,000 crore. That's per year.

Just one sec. One answer is that we'll keep at same level, but this year in your last quarter write-off, this abnormality has come from a very, very paper process because we had a write-off.

We had a block and which government took it away and where we had DSF-4. We had drilled something, some well, and since we did not develop because there were potential commerciality issue, the government took it back.

In fact, we had to write it off because the asset itself went off. Therefore, we had no choice, but that was around ₹1,500 crore.

₹1,800 crore. Our normal whatever was there is normal.

This one exceptional item came, I'm not saying exceptional item in true sense,

one-off

item came. Otherwise, you can be rest assured that you are in safe hands.

Got, sir. I fully appreciate the challenges and uncertainty that exploration brings in and E&P brings in.

Nonetheless, with our best understanding and best guesses from whatever you've said, just to kind of build on to that, you said by September, October, all wells of Daman project will open up, and then soon after is when we will get to peak production. Should we take that as by December is a good guess on when you should get to about what is the peak production, 5 MMSCMD, right?

No. Peak production typically is one year away, one 1, 2 year away, correct?

Minimum 2 year away because reservoir takes time to mature because the flow and all that. Typically different field have different timelines, but definitely you can expect that good quantity will start flowing by then.

Okay. So

Peak will be still away. The peak to average will be how much?

That is geologists' and reservoir guys to answer.

Peak production is still more a 2027 story or 28, is it? '27.

For Daman.

'27. '27, you can take it, but peak is again a statistical number.

0.08

changing

also peak. Peak is when peak will come.

It is normally a gas field has a 15-year profile suppose it has. Third, fourth year it will peak, then remain plateau for 7, 8 years and then will decline.

This is a typical growth-death cycle of a well.

The expected peak here is about 5 MMSCMD? Is that roughly the number that we're looking at?

Roughly. Because this project has some additional facility which creates more production from existing wells, other project wells, too, because of the suction that it creates.

It is a purely technical issue. For this project, you can expect 5.

4.89 to be precise.

Thanks for taking my question, and also thanks, sir, for giving the very elaborate description about the recent developments in the ONGC. Sir, my question is about this CapEx outlook, sir.

Now, sir, given that government is giving lots of incentives to the upstream companies, do you see the possibility that at least the exploration CapEx will meaningfully increase in next two years? Because that's the expectation at least we see from the government side.

Why I'm asking because I think 2 months back some news came in the media that ONGC floated a $20 billion global tender for the deepwater rigs at least for the 4 to 5 years. That's why if you can throw some highlight about this CapEx trajectory, at least over the next two years, sir.

Okay. It never said 20 rigs over what period of time.

It can be 20-year, one week, one year each, one rig each year, okay? Second, I don't know from where they picked up that news, but I will not comment on that.

I can certainly comment on two, three facts that for next 2 years, we have to drill around 15 4 plus 8, 12, plus 3, 15, 16 deepwater wells. I can give you 2, 3-year visibility, and those will be drilled from our conventional budget that every year we have been spending.

Most likely, big money from government will start flowing from '27-28. '26-27, I don't see any big spending coming on government head because you must have seen Government has already started picking up the bills.

Because government has already floated tender for, one is for entire Eastern Offshore 2D survey, which is also going to be thousands and thousands of crores, and second one is yesterday or day before yesterday it came, 3D seismic reprocessing. Government has already started picking up seismic.

Will not come this year, this I'm sure, because the seismic will take some time, and based on seismic result only, government will decide what to assist, how much to give in which well. I'm sure that policy let government document come out.

Government is not yet official. All government is official about is they have floated two tenders from their kitty, from their office, for big seismic of big big areas.

Right now, this year we'll spend from our own budget, which is our exploration budget, because each year provided for and we have been providing for years together.

Sir, my second question is about beyond this Mumbai High PG Daman. In this financial year, what are the prospects where you are working, where you see the potential or at least see some possibility of some exploration results, are we taking the big trigger or a very high possibility?

Studies are going on.

Basically, you know that we have 2/3, 1/3 there also. ONGC 2/3 is in ONGC E&P 2/3 is offshore and 1/3 is onshore, production-wise.

In fact, some numbers will come from Gujarat, because Gujarat roughly we produce 4.5 million ton. Some efforts are on for, some because every year we explore and some new wells are found, so that will get produced.

Also enhanced oil recovery of Gujarat assets are very high because we we expect there, but these are all we can't quantify it unfortunately, that how much and all that. Definitely we will do everything possible to increase production, but how much and all that, we can't say.

Two things I've just retraced that we have great hopes from some of the, particularly after this one last year discovery, that we'll we'll try to develop as fast as possible.

Sir, my final question is about how much is the exploration rig that expected to be deployed this year as compared to the last year? Especially in the offshore.

That question is very dangerous for us. Because what happens the moment we answer, cartelization happens.

I hope you should not ask this question because when supplier side gets all the information and then we end up paying more, and that certainly you would not like because you're getting good share in our profit. Please do not encourage this number of rigs and all that.

We play the card to suit the market. We can't play at the market by disclosing our numbers.

In fact, one thing I can share you, ONGC is the first company in the world whose tenders say now that minimum one rig, maximum we will decide depending on price. I think whether you have seen this pattern or not, last three tenders of rig is mentioning this language.

We are also becoming unpredictable like our reservoirs.

You got this?

You got my answer or no? What I'm trying to say, we will decide the rig depending on what price it gets quoted for.

Because after all, we are pegging our budget.

First time. Yeah.

Thank you for the opportunity, sir. I hope I'm audible.

Yes, sir.

my first question was mostly regarding OPAL. You mentioned that you're obviously on the way to sort of full turnaround and it's manufactured with the 280.

Can we get just a little bit of granularity in terms of how much will the cost change once we actually start importing ethane? What I mean to ask is that if today let's say we

I'll answer. You'll get your answer very quickly.

In fact, imported ethane is $9 even today because $3 is Henry Hub, 1.15 you multiply, and then you have liquefaction and transportation. Typically, in $9, you're home.

Against that today, we are buying LNG from open market at $18, and new well gas if OPAL was allowed to buy at $14. Today, this month new well gas is $13.99.

You've got your answer in this figure?

Right, sir. If I can ask a small follow-up then, what are the timelines we're looking at where we can sort of

have

this project going at? '28.

Our ship will be here in '28. Naturally, the moment we have ship, then import will start.

Because ethane, quantity is not a problem in US. Only thing ship is not there.

Samsung is ordered on Samsung. Samsung delivery is December.

December '28 is the delivery. The December end means FY29.

FY '29.

So

'28, FY29 is FY29 is you can sort of start

Yeah, exactly.

The second question if I may, sir. May I ask another

question? Please go ahead.

Please.

The other question was with respect to the Western Offshore and the entire TSP. If I can try to understand what was the decline rate for that entire region, even a range, before the TSP and what do you sort of expect it to be, let's say, by FY28, when you said that at least 1 to 2 years of work is required for meaningful results to start coming through?

Now that the entire Western Offshore is going to be worked on by BP, by FY28, '29, given that it is 60% of oil and 70% of gas, can we see a meaningful arresting of the entire decline rate for ONGC? Is that a fair way to look at it?

Yes, answer is decline rate arrest and further growth. That is the commitment from next year.

Got it.

Okay. That is the commitment in the tender itself, that decline stops compared to the last year base and growth happens.

We have been struggling it with the decline for last 90 I'll give you some numbers which should be of interest to you. Our ONGC peak production was in '95-96 in Western Offshore, which was 39 MMTOE, oil plus gas.

Last year, we have produced 26.18. It means roughly 1/3 volume declined in the intervening period of 30 years, okay?

Now, this is likely to go up from next year, okay, with peak on 31, 32. I hope I clarified.

Hi, sir, let me just ask the questions quickly so that we're not cut off because these are some very important questions. Firstly, we were talking about Daman itself.

Your 3 MMSCMD additional that you suggested in new well gas going from 9 to 12, should I assume that this is largely what Daman should possibly come, although it will peak next year, but the 3 MMSCMD roughly is what you will come?

Yes. Yes, yes.

Daman minimum 3,

minimum 3. Yeah.

Minimum 3 will come.

Minimum minimum,

yeah. Sure.

Yeah. On KG Basin, just to kind of I know there's a lot of language, the one that was there in press release, something that you've kind of put in as well.

Just to kind of understand that in a more clear way, the geological challenges that you faced or the surprise that you encountered was largely linked to the oil part or the liquid part of the production. The gas bit has just not started because of the delay in the platform.

Oil part is where you are going to handle that and you've kind of figured out a solution. You'll have to possibly drill more wells, and maybe in about 3, 4 quarters, you expect oil production to again go back to the kind of expected levels which it was.

The gas bit is only going to pick up from after July, August. Is that understanding correct?

Yes, 100%. You are absolutely right.

Sure. The current gas production, which is at 2.3 MMSCMD, that once more wells are added in July, August, how should I expect that to kind of ramp up?

Should I expect that by the end of this calendar, this will go to 5 or so or even higher? Then when should I expect

Having experienced, 98/2's predictability is low. Definitely it can vary anywhere to anywhere.

Now I'm saying minimum to max. That number I will leave it to you to guess, but definitely it will be at least the minimum size also should be handsome for you.

Okay. Will it

Numbers, no,

last time we gave you a number and then you are all exact number and all that. You have to because exact number we can't give, but we have some view, but geology is geology.

God has created geology, man has not created. We'll have to wait for the July, August to see.

Yeah. Good afternoon.

Two questions. Firstly, in terms of your production uptick, possibly Daman and KG-98/2 gas, both of them will probably add up this year, and DSF two from next year onwards.

Against that, what could be the natural decline for the existing assets?

Yes, what you said is correct. This year basically three major thing.

DSF is next year, but 98/2 gas this year and Daman is this year. You're right.

Plus 1 or 2 MMSCMD gas there are multiple projects going on. Those we don't count because that's not counted in what we have explained to you.

Right, sir. This is against a natural decline of 7 to 8%.

Is that right?

More or less, yes, because our natural decline is 7 to 8, but we compensate 3 to 4% by interventions. So 2 to 3% that number I gave you, that says it all because in near almost 95 to 30 25 in 30 years, we lost 1/3.

You can derive your own inference that how much we lose. Roughly 1 or 2% every year we lose.

After setting off our all the efforts of 7 to 8% natural decline, 5 to 6% we make up by all the means, and then 1 or 2% further falls unless new field comes in. New field came like Daman is a new field, DSF is a new field.

Next year will be a bigger field than this. These all fields will add.

Old fields with old interventions, with all the conventional interventions, it is very difficult to hold on to even the current levels. Naturally, six ONGC is one of the, I should say that we are basically 7 to 8% decline is always kept at 1 to 2%, and that is something ONGC should be proud of.

Got it. Second question is on this Q4 results.

C2-C3, C4 production as well as realizations, earnings that has fallen significantly. Was there anything exceptional during Q4?

The reason.

Because of the

Because of the three reasons. In fact, because of this March, every allocation got diverted towards something else.

Naturally, VAP got reduced because the gas got diverted for making more and more LPG. In LPG prices are lower than crude.

OPAL operated only at 60% in March.

60? Less than 60.

Less than 60% that March.

This will continue in Q1 also till the time that entire allocation thing gets normalized? Is that right?

OPAL is now working at what level?

Right now 60%, but we are planning to start the operations by this month. By

right now at 60, but I'm told that it will be at 80, 85 within 4, 5 days because something has been lined up.

Even the standalone C2-C3, C4 will recover or that will remain at the Q4 levels only, March level? This both the things are completely connected, that the entire C2-C3, C4 reported in the standalone business goes to OPAL only.

It's not running on gas grid as of now.

No, it's not, he is asking about a wrap of

ONGC. That we do not wrap.

Some quantity got diverted because for LPG. That we not know till the West Asia crisis is over.

Okay. Fair enough.

Got it. Thank you so much, and all the best.

Sorry, I keep getting pushed out. The one thing that you missed

You chose to. You get pushed out or you chose to get some other fall and therefore many times we also do this.

Operator's decision to push me out. Brazil, there's some update there as well in the Sergipe-Alagoas thing.

Could you please share that bit as well? Also on the

That. Okay.

Now I'll ask MD OVL to explain.

What is the question?

Sergipe-Alagoas. What

is The BM-SE-4, as we call it, it's in Sergipe-Alagoas deep basin. We had an exploration success sometime back, and now FID has been taken, FPSO has been contracted, and we are going ahead with the development.

We should get 1.3 million ton net to OVL additional production by 2030. '30 and '31 for oil and then gas.

First oil in '30 and gas in '31.

1.3 million ton oil equivalent, you said, is the net share, that's for OVL's 25%.

Per annum.

That's the 25% for you, right? Yes, yes,

yes.

Okay. Sir, DSF, that you said could add another 4, 5 MMSCMD to gas production and that'd be free pricing.

That's roughly when are you expecting that? Is it 2020 Is it FY28 or

Yes, FY28, sir. It can't get delayed further.

It is got delayed because different reason, but definitely '28, yes.

This ramp-up is Before that. I'm taking '28.

this ramp-up is likely to be quicker because this is less complicated geologically. Is that It

is it is a known field.

See, Western Offshore is, DSF is many offshore.

It is it it it is less is more predictable.

Sure. That's what I meant.

Sir. Thank you.

Hi, sir. Thanks for the opportunity again.

Just a bookkeeping one from my end this time. Our operating expenses are higher in this quarter and also for the year.

You did mention the GST bit. Are there any one-offs in this quarter particularly?

As against our regular rate of about ₹5,500 to ₹6,000 crore, we are at almost ₹9,000 crore of operating expense.

For Q4, the GST on royalty, which already DHR, additional charge DF has already explained, that is around ₹235 crore and ₹262 crore relating to KG-98/2 umbilical written off as per the opinion of ICAI. We have made the provision for old outstanding recoverable also, ₹257 crore, and one provision for stores and spares around ₹280 crore.

These are the exceptional items, one-off items which resulted in Q4 operating expenses higher.

If all this is added, it's just about ₹1,000-odd crore. As I said, last quarter operating expense was ₹6,500, now we are at ₹9,200.

Is there anything else that we're missing over here?

Other thing is GST impact as earlier told, from 12% to 18% it has increased. Other thing is exchange rate fluctuation with rupee depreciated by 11%, so that is also impacted the operating expenses.

Sir. Thanks a lot.

Lastly, before I let you all go, if there was a regional break-up of your CapEx spend, if that's possible, how much are we going to spend onshore and how much offshore, specifically in Western Offshore? You've given out the exploratory number, how much of this would be in development and IOR-EOR program of the ₹33,000 crore you spoke about?

70:30. 70:30 is offshore-onshore ratio.

Okay. Any number you can give me, sir, for Western Offshore?

Largely 70% you can say that it is Western Offshore only because we have hardly one or two wells, maximum two, three wells in 98/2. Most of the money will go to Western Offshore only, because Western Offshore is still more remunerative and productive.

Sir. Thank you so much, sir.

Hello, sir. Thanks for the call.

I was just focusing on the cost side. You had a great reserve replacement ratio this year as well.

Now in terms of cost structure, if I was to kind of think about you've been highlighting about how you're focusing on reducing operating cost specifically on CapEx cost. In a dollar per BOE basis, can you just give us a sense of what was in terms of cost-saving initiatives that helped you in fiscal '26 and what are you thinking for fiscal '27?

Specifically with the BP tie-up, is there any cost savings that we should be thinking about?

We had a ₹5,000 crore plan first phase, then we have another ₹5,000 crore. You'll have to convert into per barrel.

So, It's

about $500 million for 40 million tons. $500 million for 40 million ton,

40 million tons. So 40 million tons to say how much it's been?

40 million ton 10

$10 per ton. $1.8 per BOE roughly.

Yeah. If I

if I may add, many of the questions that you have been asking, all of you have been asking about Pertamina, and Rajarshi Gupta, MD, OVL, just because I'm seeing international part, when you look at the Indian part and we track all this in rupees, there's a discord because ONGC spends and in dollars and these accounts are in rupees. Rupee there has been a significant depreciation, these numbers become different when you look at it.

That should be kept in mind. Understood.

That's why I was thinking about it more from a dollar per BOE basis rather than rupees or anything of that sort

on a per-unit production basis. You will have to discount the dollar rupee depreciation, no, because we had ₹5,000 crore is in Indian rupee we had said.

Most of it we have realized almost ₹4,000 crore, but we got negated by two things, that is dollar exchange rate and GST. GST 12 became 18.

We are on course. We'll continue to do.

We have another ₹5,000 crore lined up. It'll take around a year or so more to realize because the effort you make today, results will come later, so.

Cost side, we are now very comfortable.

Good afternoon. We hope we have answered all the queries from the participants.

In case if any further queries are there, they can reach out to our Investor Relationship cell. I thank Chairman and CEO for addressing the participants and answering all the queries of the participants.

I also thank MD, OVL; DF, OVL; DHR and additional charge Finance, ONGC; and all my senior colleagues for participating, and also all the participating participants for participating this conversation.

Thank you.

Thank you. Have a great day.

Thank you.