Oil & Natural Gas Corporation (ONGC), India's state-owned oil and gas exploration and production giant, has received environmental compensation notices totaling ₹1 crore from the Andhra Pradesh Pollution Control Board (APPCB) for alleged violations at three of its facilities in the state.

Facilities Affected and Compensation Details

The environmental compensation notices cover three ONGC facilities in Andhra Pradesh:

Nature of Violations

According to the APPCB, the violations relate to the Effluent Treatment Plant (ETP) outlet values at these facilities allegedly not complying with the prescribed discharge standards. The non-compliance periods range from 92 to 122 days for the different facilities.

ONGC's Response

ONGC has confirmed that it has paid the compensation amount under protest. The company plans to review the order and file an appeal with the appropriate appellate authority. In a disclosure to the stock exchanges, ONGC stated:

"Considering the size and scale of the Company's operations, the impact is not considered significant. Further, the aforesaid payment has been paid under protest."

Financial Impact

While the ₹1 crore compensation is a substantial amount, ONGC does not consider it to have a significant financial impact given the company's operational scale. However, the notices highlight the increasing scrutiny on environmental compliance in the oil and gas sector.

Next Steps

ONGC will be reviewing the APPCB's order and preparing to file an appeal against it. The outcome of this appeal could have implications for the company's operations in Andhra Pradesh and potentially set precedents for environmental compliance in the industry.

As this situation develops, stakeholders will be watching closely to see how ONGC addresses these environmental concerns and manages its relationship with regulatory authorities.

Oil & Natural Gas Corporation (ONGC) has taken a significant step forward in its exploration efforts by entering into a Joint Operating Agreement (JOA) with BP Exploration (Alpha) Ltd and Reliance Industries Limited (RIL) for offshore hydrocarbon exploration in the Saurashtra Basin.

Key Details of the Agreement

• Block: GS-OSHP-2022/2, awarded under the Open Acreage Licensing Policy (OALP) Bid Round-IX
• Location: Offshore in the Saurashtra Basin, off the western coast of India
• Area: Approximately 5,454 square kilometres
• Classification: Category-II basin
• Operator: ONGC

Signing Ceremony

The formal signing of the agreement took place on 28 July 2025 at ONGC's Deendayal Urja Bhavan in Vasant Kunj, New Delhi. The event was attended by key representatives from all three companies:

• Mr. Arunangshu Sarkar, Director (Strategy & Corporate Affairs), ONGC
• Mr. Om Prakash Sinha, Director (Exploration), ONGC
• Mr. Sanjay Baveja, Chief (Exploration- JV & BD), ONGC
• Mr. Manoj Kumar, Director (Finance), BP Exploration (Alpha) Limited
• Mr. Avinash Kumar Pathak, Senior Vice President, Reliance Industries Limited

Significance of the Partnership

This collaboration brings together three major players in the energy sector, combining their expertise and resources to explore and potentially harness the hydrocarbon potential of the Saurashtra Basin. The partnership is expected to contribute significantly to India's energy security and align with the nation's long-term energy goals.

Exploration Plans

The consortium, led by ONGC as the operator, will undertake exploratory activities in the designated block. These efforts aim to assess the hydrocarbon potential of the region and potentially lead to new discoveries that could boost India's domestic oil and gas production.

This strategic partnership between ONGC, BP, and Reliance Industries demonstrates a collaborative approach to energy exploration and underscores the importance of joint efforts in addressing India's growing energy needs.