Oil and Natural Gas Corporation (ONGC) has reported a record-breaking first quarter for FY 2026-27, posting its highest-ever quarterly Profit Before Tax (PBT) of Rs. 22,848 crore and a robust standalone net profit of Rs. 17,034 crore, marking a growth of 112% year-on-year.
The company’s standalone gross revenue surged 45% to Rs. 46,460 crore during Q1, reflecting strong financial performance and improved value realization from its operations.
ONGC is also advancing one of its largest-ever capital investment programmes in the Western Offshore region, with projects worth more than Rs. 40,000 crore currently under implementation. The initiative is aimed at unlocking production growth, improving recovery, strengthening asset integrity, and creating long-term value.
ONGC’s focus on enhancing gas production has delivered significant results, with revenue from new well gas reaching Rs. 3,998 crore during Q1 FY’27. The company generated an additional Rs. 1,897 crore in revenue compared with the APM gas price, with new well gas now contributing around 38% of total revenue from ONGC’s nomination gas portfolio.
Oil and gas production remained broadly stable during Q1 FY’27, maintaining the momentum achieved in the Western Offshore region during Q4 FY’26 and laying the foundation for future growth.
The decline in production compared with the corresponding quarter of FY’26 was primarily due to reservoir complexities in the KG-98/2 project in the Eastern Offshore, adverse swell conditions in the Western Offshore during April and May 2026 ahead of the monsoon, and delays related to the PRP-8 and PRP-9 pipeline replacement projects.
Temporary well closures during the pre-commissioning and commissioning of major projects, including the MTPBP (MHN-TCPP-PGC-BGC Project) and DUDP (Daman Upside Development Project), also impacted output. Lower gas offtake from small isolated fields, due to operational disruptions at customer facilities, further affected production levels.
ONGC expects the declining production trend to be reversed through the successful execution of strategic projects including DUDP, TSP and DSF.
Following encouraging results from TSP-1, ONGC has selected bp as its Technical Service Provider (TSP) through an international competitive bidding process for the entire Western Offshore portfolio.
The collaboration will focus on reservoir and pressure management, enhanced water injection, pipeline replacement and execution of major capital projects to improve production performance.
ONGC expects these investments to deliver visible benefits from FY 2027-28 onwards, supporting enhanced production, improved recovery rates and sustained value creation.
Samudra Manthan opens new frontier
ONGC has accelerated offshore exploration under the National Offshore Exploration Scheme, Samudra Manthan, with the spudding of its first deepwater exploratory well in the Mahanadi basin.
The company spudded exploratory well MNDWO181HDB-1 on 25 July 2026 in OALP block MN-DWHP-2018/1, located in Mahanadi deepwaters at a water depth of approximately 765 metres. The well will explore the Pliocene Shallower Channel with reference to the UTKAL and KONARK discoveries.
ONGC declared two discoveries during Q1 FY 2026-27 in its operated acreages — one offshore prospect discovery and one onshore new pool discovery.
Strategic collaborations
ONGC and Reliance Industries Limited (RIL) have successfully operationalised sharing of Multi Support Vessels (MSVs) for Eastern Offshore operations, marking a significant move towards cost optimisation in deepwater activities.
The company has also extended helicopter services to Oil India Limited for crew change and Medivac operations during East Coast drilling campaigns on a chargeable basis.
ONGC continued to receive industry recognition across technology, safety, innovation and operational excellence.
The company secured three prestigious awards at the 11th India PSU IT Forum & Awards 2026 for excellence in digital transformation, IT implementation and data centre infrastructure.
Adding to its safety achievements, ONGC won the Global Safety Award – Platinum Category from the Energy and Environment Foundation, recognising the efforts of its Corporate HSE team.
With record financial performance, large-scale offshore investments and an accelerated exploration strategy, ONGC is positioning itself for the next phase of production growth and energy security for India.
