ONGC is adopting a four-pronged strategy. It aims to evolve from a domestic E&P giant into a diversified energy provider.
To make the company future-ready and align with India’s clean energy transition, ONGC has introduced the position of Director (Strategy & Corporate Affairs).
ONGC’s first Director (Strategy and Corporate Affairs), Arunangshu Sarkar, outlined the company’s roadmap for diversification.
Traditionally focused on E&P, ONGC now aims to expand its footprint across four key areas: E&P, oil-to-chemicals, renewables, and regasified liquefied natural gas (RLNG).
The Need for Diversification
Sarkar emphasized that the energy transition is inevitable, though the timeline remains uncertain. He explained that carbon emission regulations and the growing adoption of renewable energy will eventually impact E&P earnings.
Sarkar said, “As renewables grow, fossil fuel demand will fall. This will cause oversupply and lower prices worldwide and in India.” This will make it challenging for our E&P business to sustain itself”.
To address this, ONGC is focusing on cost control, efficiency improvements, and production enhancement. A strong E&P business will serve as the foundation for ONGC’s expansion into renewables, petrochemicals, and RLNG.
Strengthening E&P Operations
The first pillar of ONGC’s strategy is to reinforce its core E&P business. By optimizing costs, enhancing operational efficiency, and increasing production, the company aims to strengthen its position in the oil and gas sector.
Expanding into Renewables
The second pillar of ONGC’s transformation focuses on renewable energy. The company is aggressively investing in solar energy, wind energy, battery storage systems (BSS), and green hydrogen.
“We plan to expand through inorganic growth because we are not yet experts in this sector,” Sarkar explained. He added, “We need strategic partnerships to gain expertise in the initial stages.”
Strengthening the Oil-to-Chemicals Business
ONGC is also taking strategic steps to expand its oil-to-chemicals segment. The company is actively working to bring ONGC Petro Additions Ltd (OPAL) out of the Special Economic Zone (SEZ) framework to improve operational flexibility and profitability.
Enhancing RLNG Capabilities
The fourth pillar focuses on regasified liquefied natural gas (RLNG), a critical component in India’s energy transition. By strengthening its RLNG infrastructure and capabilities, ONGC aims to play a key role in the country’s shift toward cleaner energy sources.
Conclusion
ONGC’s four-pronged strategy underscores its commitment to becoming an integrated energy solutions provider.
As reported by thehindubusinessline.com, by strengthening its E&P business, expanding into renewables, growing its oil-to-chemicals segment, and enhancing RLNG capabilities, the company is positioning itself for long-term sustainability in a rapidly evolving energy landscape.
