New Delhi: State-run Oil and Natural Gas Corporation (ONGC) on Friday said it will continue to buy Russian oil as long as it is commercially viable.
“There are no sanctions on Russian oil as of now. We will continue to buy unless the government decides otherwise,” ONGC Chairman Arun Kumar Singh told reporters after the company’s annual general meeting. The comment comes at a time when Russian oil imports are facing an additional 25 per cent tariff, over and above the existing duty.
Its subsidiaries Hindustan Petroleum Corporation Ltd (HPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL) are among the regular buyers of Russian crude for their refineries.
Singh said ONGC has 21 projects under implementation at an estimated cost of around ₹66,000 crore, including nine development projects and the rest infrastructure-related. The country’s largest exploration and production company also said it will look to acquire overseas energy assets if they are available at a reasonable price.
On crude price outlook, Singh said he expects oil to remain around $60 a barrel in the near term.
Meanwhile, ONGC said it expects a major recovery in output from its flagship Mumbai High field in the next 13-14 months as it works with UK-based bp on enhanced oil recovery (EOR). “It has been only four months. This partnership started in April (2025). One thing you can say is that green shoots are good. Small wins will come in 7-8 months, but big wins will take around a year and a half,” Singh said, adding that it will take two years for the partnership to show full results.
Under the contract, signed earlier this year, bp is providing technical services to ONGC while the Indian firm retains ownership and operational control. The UK energy major will initially be paid a fixed fee for its deployed personnel, followed by a service fee linked to incremental production.
Pankaj Kumar, ONGC director (offshore), said, “We are still in study mode. Otherwise, the Mumbai High is a huge field. They are studying data. We have identified an internal team that is working with them. Preliminary indications are good.”
On global acquisitions, Singh said ONGC Videsh is open to buying assets if valuations are favourable. “Normally, troubled times don’t last for more than a year or two because the world does not have the capacity to tolerate them for long. If the asset comes at a price which is acceptable to us, with a future that we see for ourselves, and at a reasonable price, we have a thinking that we should go for it,” he said.
