Oil & Natural Gas Corporation (ONGC) anticipates the force majeure on the Mozambique LNG project to be lifted during the August-September timeframe, signaling potential progress for the long-delayed liquefied natural gas venture. This development comes as ONGC reports a robust financial performance for the first quarter.

Mozambique LNG Project Update

An ONGC executive expressed optimism about the Mozambique LNG project, stating that the force majeure status affecting the operations is expected to be removed in the coming months. The project, which has faced significant delays due to security concerns, could see renewed activity if the force majeure is indeed lifted.

Q1 Financial Highlights

ONGC's financial results for the quarter showcase a strong performance:

• Consolidated Net Profit: ₹11,554.00 crore, up 18.2% year-on-year
• Revenue from Operations: ₹163,108.00 crore, down 3.5% from ₹168,968.00 crore in the same quarter last year
• Earnings Per Share: ₹7.79, compared to ₹7.93 in the same quarter last year

Segment Performance

Other Key Developments

1. Renewable Energy Expansion: The Board of Directors has approved an investment of ₹4,963.06 crore for setting up a 0.6 GW (300 MW Solar and 300 MW Wind) renewable power project by 2028.

2. Exploration Success: ONGC declared two new discoveries in offshore blocks during the quarter, including a prospect named "Vajramani" and a new pool discovery in the Mukta Formation.

3. Production Performance: Standalone crude oil production increased by 1.2% to 4.683 MMT compared to the same period last year.

4. Gas Price Realization: The price for nomination gas increased to $6.64/mmbtu, up from $6.50/mmbtu in the previous year.

ONGC's Chairman and Managing Director commented, "Our strong Q1 performance reflects the company's resilience and operational efficiency. The potential lifting of force majeure on the Mozambique LNG project is a positive development, and we remain committed to our strategic goals, including the expansion of our renewable energy portfolio."

As ONGC navigates the evolving energy landscape, the company continues to focus on both its core hydrocarbon business and diversification into renewable energy sources, positioning itself for sustainable growth in the years ahead.

Oil & Natural Gas Corporation (ONGC), India's state-owned oil and gas explorer, has reported a consolidated net profit of ₹11,554 crore for the first quarter, representing an 18.2% increase compared to the same period last year. The company's board has also approved a significant investment in renewable energy, further diversifying its portfolio.

Financial Performance

ONGC's consolidated revenue for Q1 stood at ₹1,63,108 crore, showing a slight decrease of 3.5% from ₹1,68,968 crore in the same quarter of the previous year. Despite the marginal dip in revenue, the company managed to improve its profitability, with the consolidated net profit rising from ₹9,776 crore to ₹11,554 crore year-on-year.

On a standalone basis, ONGC reported:

Operational Highlights

• Crude oil production (standalone) increased by 1.2% to 4.683 Million Metric Tonnes (MMT).
• Natural gas production (standalone) slightly decreased to 4.846 Billion Cubic Meters (BCM) from 4.863 BCM in the same quarter of the previous year.
• The company declared two new discoveries during the quarter, both in offshore locations.

Renewable Energy Investment

In a significant move towards sustainable energy, ONGC's Board of Directors has approved an investment of ₹4,963.06 crore for setting up a 0.6 GW renewable energy project. The project will comprise:

• 300 MW of solar power capacity
• 300 MW of wind power capacity

The project is expected to be completed by 2028 and will contribute to ONGC's operational savings and Environmental, Social, and Governance (ESG) compliance efforts.

Other Developments

ONGC, in collaboration with Oil India Limited, has signed a Joint Operating Agreement for three blocks awarded under the Open Acreage Licensing Policy (OALP) Bid Round-IX. These blocks are located in:

• Meghalaya
• Gujarat
• Off the eastern coast in the Mahanadi Basin

The total area covered by these blocks is approximately 10,964 square kilometers.

Market Performance

As of the end of the quarter, ONGC reported:

The earnings per share for the same quarter in the previous year was ₹7.93.

ONGC's Chairman and Managing Director commented, "Our Q1 results demonstrate ONGC's resilience in a challenging market environment. The approved renewable energy project underscores our commitment to sustainable growth and energy transition. We remain focused on enhancing our exploration and production capabilities while diversifying our energy portfolio."

The company's strategic investments in renewable energy and continued focus on hydrocarbon exploration align with India's energy security goals and the global shift towards cleaner energy sources.