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.

Oil & Natural Gas Corporation (ONGC) has unveiled plans for a significant investment in Andhra Pradesh's Konaseema District, aiming to boost its operations in the Krishna-Godavari (KG) Basin. The state-owned oil and gas giant is set to pour over Rs 4,600 crore into drilling 10 development wells and establishing crucial infrastructure in the region.

Project Details

The ambitious project encompasses several key components:

• Drilling of 10 development wells
• Setting up two unmanned platforms
• Laying an offshore pipeline
• Establishing an onshore gas processing facility

ONGC has approached the Ministry of Environment and Forests for environmental clearance for this extensive project. The development will cover contract areas Chandrika, spanning 697 square kilometers, and GS49, covering 148 square kilometers, both located in the East coast.

Land Utilization and Environmental Considerations

The project's footprint includes:

• 26.30 hectares of land area at Odalarevu Terminal
• 8.70 hectares dedicated to developing a greenbelt

ONGC has allocated substantial funds for environmental management, with estimates pointing to:

• Rs 14.00 crore as capital cost
• Rs 3.00 crore annually for ongoing environmental management

Economic Impact

The project is expected to generate significant employment opportunities in the region:

• 150 direct jobs
• 310 indirect employment opportunities

Current Status and Next Steps

Despite ONGC's readiness to proceed, the Experts Appraisal Committee has deferred the proposal. The committee has requested additional information from ONGC, including:

• A comprehensive biodiversity assessment
• An environmental restoration action plan

These requirements underscore the importance of balancing economic development with environmental preservation in such large-scale energy projects.

Conclusion

ONGC's proposed investment in the KG Basin development project represents a significant step in India's efforts to enhance domestic oil and gas production. However, the project's progress now hinges on addressing environmental concerns and obtaining the necessary clearances. The outcome of this proposal could have far-reaching implications for both the energy sector and the local economy of Andhra Pradesh's Konaseema District.