Oil & Natural Gas Corporation (ONGC), India's state-owned oil and gas giant, has given the green light to several significant related party transactions for its international projects in Mozambique and South Sudan. These approvals, totaling over ₹22,000 crore, represent substantial financial commitments aimed at bolstering the company's global oil and gas operations.

Mozambique Project Transactions

ONGC's involvement in the Mozambique project is managed through its wholly-owned subsidiary, ONGC Videsh Limited (OVL), which holds a 16% Participating Interest (PI) in Area 1. The approved transactions for this project include:

1. True-up Amount: A receipt of up to ₹5,082.39 crore from Moz LNG1 HoldCo, Limitada (Moz HoldCo) or UAE Hold Co. This amount will be distributed as follows:

   • ONGC Videsh Rovuma Limited (OVRL): ₹2,117.61 crore in 2025-26 and ₹1,058.85 crore in 2026-27
   • Beas Rovuma Energy Mozambique Ltd. (BREML): ₹1,270.62 crore in 2025-26 and ₹635.31 crore in 2026-27

2. Asset Transfer: A transfer of Golfinho-Atum project-related assets from OVRL and BREML to Moz LNG1 AssetCo, Limitada. This 'Asset for Equity' transaction, followed by an 'Equity for Equity' transaction with Moz LNG1 HoldCo, Limitada, is estimated at approximately ₹14,400.00 crore.

3. Guarantee Support: An amendment to the existing guarantee support through a Debt Service Undertaking (DSU) for project financing, not exceeding USD 3.072 billion (approximately ₹27,648.00 crore at current exchange rates).

South Sudan Project Transactions

For its operations in South Sudan, where ONGC Nile Ganga BV (ONGBV) holds a 25% PI in Blocks 1, 2, and 4, ONGC has approved:

• Cash Call Payments: Up to USD 130 million (₹1,170.00 crore) for FY 2025-26 and USD 140 million (₹1,260.00 crore) for FY 2026-27 to Greater Pioneer Operating Company Ltd. (GPOC) for operating the South Sudan blocks.

Additional Board Decisions

In the same board meeting, ONGC also made key appointments and decisions:

1. Shri Om Prakash Sinha, Director (Exploration), has been appointed as a Key Managerial Personnel of the company with immediate effect.

2. M/s Agarwal S. & Associates, Practicing Company Secretaries, have been appointed as the Secretarial Auditor for five consecutive financial years from FY 2025-26 to FY 2029-30, subject to shareholder approval.

These strategic decisions underscore ONGC's commitment to its international operations and corporate governance. The substantial financial commitments, particularly in Mozambique, highlight the company's focus on expanding its global footprint in the oil and gas sector.

Note: All financial figures are based on the information provided in the company's official disclosure.

Oil & Natural Gas Corporation (ONGC), India's leading oil and gas exploration company, has announced several significant decisions following its Board of Directors meeting held on July 22, 2025. The board's decisions include key appointments, auditor selection, and approval of material related party transactions for its overseas projects.

Key Appointments and Auditor Selection

The ONGC board has appointed Shri Om Prakash Sinha as Director (Exploration) and Key Managerial Personnel with immediate effect. This appointment is expected to strengthen the company's exploration activities, a crucial aspect of ONGC's operations.

In addition, the board has approved the appointment of M/s Agarwal S. & Associates as the Secretarial Auditor for five consecutive financial years, from FY'26 to FY'30. This appointment is subject to shareholder approval at the upcoming Annual General Meeting. M/s Agarwal S. & Associates, established in 2003, brings two decades of experience in providing secretarial services to various organizations across different sectors.

Material Related Party Transactions

The board has recommended several material related party transactions for shareholder approval, primarily involving ONGC Videsh Limited (OVL), the company's wholly-owned subsidiary responsible for managing overseas exploration and production business.

Mozambique Project

For the Mozambique project, where OVL holds a 16% participating interest, the following transactions have been proposed:

1. Receipt of true-up amounts up to ₹5,082.39 crore from Moz LNG1 HoldCo, Limitada (Moz HoldCo).
2. Transfer of Golfinho-Atum project assets valued at approximately ₹14,400.00 crore.
3. Amendment of debt service undertaking for up to USD 3,072.00 million.

The true-up amounts will be received by ONGC's subsidiaries, Beas Rovuma Energy Mozambique Ltd. (BREML) and ONGC Videsh Rovuma Ltd (OVRL), over the fiscal years 2025-26 and 2026-27.

South Sudan Project

For the South Sudan project, where ONGC's subsidiary ONGC Nile Ganga BV (ONGBV) holds a 25% participating interest in Blocks 1, 2, and 4, the following cash call payments have been proposed:

These payments will be made to Greater Pioneer Operating Company Ltd. (GPOC), the joint operating company managing the project activities.

Conclusion

The decisions made by ONGC's Board of Directors reflect the company's focus on strengthening its management team, ensuring regulatory compliance, and advancing its overseas projects. The material related party transactions, particularly in Mozambique and South Sudan, underscore ONGC's commitment to its international exploration and production activities. Shareholders will have the opportunity to approve these significant transactions, which are crucial for the company's global operations and financial performance.