State-run oil and gas companies spent a combined ₹46,600 crore in the first five months of this financial year, achieving 35 per cent of their annual capital expenditure target of ₹1.32 lakh crore.
Oil and Natural Gas Corporation (ONGC) led the pack with a capex of ₹12,979 crore, followed by Indian Oil Corporation (IOC) at ₹10,860 crore, according to petroleum and natural gas ministry data. ONGC has an annual target of ₹34,900 crore, while IOC has set a target of ₹35,294 crore.
A large part of ONGC’s capital spending goes into redeveloping ageing fields, enhancing recovery from mature assets and drilling new production wells, with a significant share also directed toward exploration.
Much of Indian Oil’s expenditure is focused on expanding refining capacity and developing gas marketing infrastructure.
ONGC and its group companies – ONGC Videsh (₹2,310 crore), Hindustan Petroleum Corporation (₹4,187 crore) and Mangalore Refinery and Petrochemicals (₹627 crore) – together spent ₹20,103 crore in April-August.
Hindustan Petroleum is nearing completion of its greenfield Barmer refinery, while ONGC Videsh has been investing in the exploration and development of overseas fields.
At ₹4,605 crore, Bharat Petroleum Corporation has been the third-largest spender this year among state-run oil firms, followed by Oil India, which spent ₹4,424 crore.
Oil India’s subsidiary, Numaligarh Refinery Ltd (NRL), currently expanding its refining capacity, spent ₹2,547 crore till August in this fiscal.
GAIL (India) Ltd, the country’s largest natural gas transporter and marketer, spent ₹3,853 crore of its annual capex target of ₹8,377 crore. The company is ramping up pipeline capacity across the country and expanding its petrochemical operations.
