Oil and Natural Gas Corporation (ONGC) Chairperson Arun Kumar Singh has dismissed reports suggesting that Russian crude oil is available in the spot market at prices below $60.00 per barrel. The statement comes amidst ongoing discussions about global oil prices and the impact of international sanctions on Russian oil exports.

Preparedness for Market Volatility

Singh emphasized that ONGC is well-prepared to navigate the volatile global energy environment. He expressed confidence in the company's ability to handle market fluctuations, stating that the current crude oil price volatility is expected to be temporary.

Cost Management Initiatives

In response to the challenging market conditions, ONGC has implemented several cost management measures:

• Reduced drilling rig expenses
• Logistics savings achieved by halving distances from northern fields
• Cuts in Platform Supply Vessel (PSV) and Offshore Support Vessel (OSV) costs

These initiatives demonstrate ONGC's proactive approach to maintaining operational efficiency in a dynamic market.

Russian Crude Economics

Addressing the economics of Russian crude, Singh provided insights into the pricing dynamics:

• While Russian crude can sometimes be economical, higher freight costs compared to Middle Eastern crude often result in similar landed prices.
• This explanation challenges the notion that Russian oil is significantly cheaper than other sources when all factors are considered.

ONGC Videsh's Overseas Strategy

Singh also commented on ONGC Videsh, the international arm of ONGC:

• The company will continue its overseas expansion plans, aligning with national interests.
• Efforts are underway to increase production at Russian assets, indicating ONGC's commitment to its international portfolio.

As global energy markets continue to evolve, ONGC's stance on Russian crude prices and its strategic approach to cost management and international operations provide valuable insights into the company's position in the current oil and gas landscape.

Gulf Oil Lubricants India has announced ambitious plans to expand its production capacity by 70% from current levels, aiming to reach 250 million litres within the next 18 months. The company, which currently operates at 95% utilization across two plants handling 152 million litres annually, is set to embark on a significant growth trajectory.

Expansion Strategy

CEO Ravi Chawla revealed that the capacity expansion will commence at the Chennai plant, with land acquisition already completed at the Silvassa facility. This two-pronged approach underscores the company's commitment to meeting growing demand and strengthening its market position.

Strong Performance Across Segments

Gulf Oil reported impressive growth in the first quarter, with double-digit increases in both volumes and revenues. The company's performance outpaced the industry, growing nearly three times faster across various segments:

• B2C (Business to Consumer)
• B2B (Business to Business)
• Industrial
• OEM (Original Equipment Manufacturer)
• Agri-rural

Targeting Underrepresented Categories

In a strategic move to capture additional market share, Gulf Oil is focusing on categories where its current market share is below 5%. This approach aims to identify and capitalize on expansion opportunities in less saturated segments.

Financial Snapshot

As of the latest report, Gulf Oil Lubricants India's market capitalization stands at ₹6,078.00 crore. The company's shares are currently trading at ₹1,233.50, reflecting an 11.00% decrease over the past year.

The ambitious expansion plan, coupled with strong performance across various segments, positions Gulf Oil Lubricants India for potential growth in the coming months. However, investors should note the recent share price decline and consider both the opportunities and challenges as the company embarks on this significant capacity expansion.