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.

Oil & Natural Gas Corporation (ONGC), India's state-owned oil and gas giant, is set to expand its downstream operations with plans for a new refinery in Jamnagar, Gujarat. The proposed facility, with a capacity ranging from 10 to 12 Million Tonnes Per Annum (MTPA), marks a significant step in ONGC's strategic growth in the refining sector.

Strategic Location

The choice of Jamnagar for this new refinery is noteworthy. Located in western India, Jamnagar is already known as a major hub for oil refining, home to the world's largest refining complex operated by Reliance Industries. ONGC's decision to establish its new refinery in this region could be aimed at leveraging existing infrastructure and supply chain networks.

Capacity and Impact

With a planned capacity of 10-12 MTPA, the new refinery represents a substantial addition to India's refining capabilities. This move is likely to strengthen ONGC's position in the downstream segment of the oil and gas industry, potentially allowing the company to capture more value across the entire hydrocarbon value chain.

Industry Implications

The establishment of this new refinery could have far-reaching implications for India's energy sector:

1. Increased Domestic Refining Capacity: The addition of 10-12 MTPA will boost India's overall refining capacity, potentially reducing dependence on imported refined products.

2. Economic Impact: The project is likely to generate significant employment opportunities and contribute to the economic development of the Jamnagar region.

3. Market Dynamics: The new refinery could influence the competitive landscape of India's refining sector, potentially affecting supply dynamics and pricing in the domestic market.

Looking Ahead

While ONGC has announced these plans, further details regarding the project timeline, investment amount, and specific product focus of the refinery are yet to be disclosed. The development of this project will be closely watched by industry observers, as it represents a major expansion in ONGC's downstream operations.

As this story develops, stakeholders will be keen to understand how this new refinery fits into ONGC's long-term strategy and its potential impact on India's energy security and self-reliance goals.