Oil & Natural Gas Corporation Limited (ONGC) Q3 2026 Earnings Call Transcript

Good morning, ladies and gentlemen. I am Marti, moderator for the conference call. Welcome to ONGC's Earnings Conference Call for quarter ended 31st December 2025. We have with us today, Sri Vivek Tongonkar, Director of Finance, ONGC and team who will interact with investors and analysts to discuss Q3 earnings. Thanks. As a reminder, all participants will be in listen-on remote, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator by pressing star and then zero on a touch-tone phone. Please note that this conference is being recorded. I would now like to hand out the floor to Mr. Sri Vivek Tongonkar for his opening remarks.

Good morning, ladies and gentlemen. I am Vivek Tronagavkar, Director of Finance, ONGC. I welcome you all to this ONGC earnings call for Q3 Financial Year 26. Thank you for joining us. I am accompanied today by my colleagues from ONGC, Mr. Sathish Kumar Divedi, he is Chief of Joint Venture and Business Development, Mr. Ajay Kumar Singh, he is our President, Planning and Transformation, Mr. Prakash Joshi from Investor Relations Cells, and Mr. Shekhar Mohanty from our Corporate Accounts. We also have our colleagues from ONGC Videsh Ltd., Mr. Bhishmadev Mandal, and Mr. Basan Pasari. ONGC has compiled its financial results for the quarter and nine months until 21st December 2025. The results were released on the 12th of February 2026 through a press note and shared with the stock exchanges and analysts. I will now present the highlights of our performance. ONGC's standalone crude oil production continues to show growth momentum. During Q3 financial year 26, production stood at 4.592 million metric tons. While the cumulative output for 9 months financial year 26 reached 13.907 million metric tons. This reflects a modest increase of 0.35% over the 9 month financial year 25. Stand-alone natural gas production in Q3 financial year 26 registered an upward trend on year-on-year basis. This highlights only easy operation results. This improvement comes alongside the companies that are resting the year trend of degrowth, with cumulative output for 9-month financial year 26 remaining steady, thereby reinforcing stability in the gas portfolio. During this 9 month period of financial year 26, revenue from new well gas cost 5000 crore rupees. This delivered an additional 944 crores compared to the APM gas price, reflecting the premium eligibility of new well gas. Notably, now the new well gas contributes over 18% of ONGC's total gas sales revenue, underscoring its growing significance in the company's portfolio. ONGC is actively working towards boosting the performance from new gas wells. The ONGC Board has declared a second interim dividend of 125% amounting to Rs. 6.25 per equity share of Rs. 5 face value. This translates into a payout of Rs. 7,863 on top of the first interim dividend of Rs. 6 per share, i.e. 120%, announced in November 2025. With these two payouts, ONGC has achieved a historic milestone. This is its highest ever cumulative interim dividend of Rs. 15,411 crore in a single financial year. We are underscoring our commitment to shareholder value. With regard to KG 98 by 2, as you are aware, so far all the 26 wells have been drilled. I am happy to share that as per the latest update, SURF that is subsea umbilicals, risers, and flowlines, and the subsea production system, SPS, these works are nearing completion. The central processing platform together with the bridge connected living quarters and utility platform have been fully installed. In January 2026, the main support frame, the living quarter module was successfully pinned down on the LQ UP jacket, followed by the installation of the living quarter unit, heli-deck and associated structures in February 2026. So, this series of completions represents a decisive push toward forward, reinforcing our confidence in unblocking the full potential of this strategic asset. Coming to Mumbai High Field, the TSP-1 is already showing encouraging production gains. Additionally, Daman Upside Project, Daman Upside Development Project in Western Offshore is also on track to be monetized soon with a peak gas output expected at 4 to 5 mm SCMV. ONGC also has a robust pipeline of over 20 major development, redevelopment, and infrastructure revamped projects under execution with a total combined capex of about 77,000 crores. These projects are designed to augment production, sharpen operational efficiency, which will ensure sustained growth. Importantly, four key infrastructure and revamp projects are slated for near-term completion. Recognizing the volatility in global crude prices and the need to sustain profitability in a competitive environment, ONGC has already adopted a structured enterprise-wide approach to efficiency and value creation. A dedicated cost council has identified multiple areas where structural improvements can deliver long-term benefits. Key focus areas where progress is there include inventory rationalization, fuel efficiency, logistics optimization, manpower restructuring, and integration of renewable energy into operations. We now come to financials. At the consolidated level, net profit grew by 23%, both on a quarterly and 9-month basis. It was 11,946 crores in Q3 financial year 26, up from 9,747 crores in Q3 financial year 25. For the 9 months, financial year 26, the figure was 36,115 crore rupees, compared to 29,364 crore rupees for the previous year's 9 months. This increase in profit can mainly be attributed to our subsidies, HPCL and MRCL. Net profit for Q3 financial year 26 was 8,372 crores up 1.6% compared to 8,240 crores in Q3 financial year 25. For the 9-month financial year 26, standalone net profit was at 26,244 crores against 29,162 crores in the same period previous year. The increase in net profit during Q3 financial year 26 is on account of contribution from gas revenue, higher other income and lower statutory level. One point to note is that in spite of the decline in crude oil prices, ONGC's net profit at both standalone and console level has been upwards. Sales revenue in Q3 FY26 declined primarily due to Rs 2145 crore drop in crude oil revenue and 710 crore reduction in value added products, which was partly offset by increase of Rs 505 crore in natural gas revenue compared to the same quarter last year. Crude oil prices have We have declined to US$61.63 per barrel in Q3 financial year 26 from US$72.5 per barrel in Q3 financial year 25, which adversely impacted our revenue. Crude oil and value-added products declined due to lower price realization, which was offset by an increase in natural gas quantity and price, resulting in a net decrease. The rise in gas revenue was driven by incremental revenue of Rs. 294 crores from Newwell gas sales during Q3, financial year 26, and incremental revenue of 944 crores for the 9-month period. During Q3, financial year 26, statutory levy stood at 5,975 crore, down from 6,630 crores in Q3, financial year 25, which was a reduction of 653 crore, 55 crore rupees, i.e. 9.9%. This decline is primarily attributable to lower royalty and SEF, driven by the decrease in average crude oil financially. Operating expenditure in the third quarter of FY26 stood at Rs. 7,151 crore compared to Rs. 6,560 crore in the same quarter last year, which was an increase of 9%. This rise is primarily attributable to our Dahesh plant, where LNG consumption grew significantly from 7.68 million MMBTU in Q3 financial year 25 to 11.31 million MMBTU in Q3 financial year 26. There has been an increase in GST on oil services from 12% to 18%, and we have worked diligently to keep our operational costs flat through disciplined cost management, even in this challenging fiscal environment. There is a decrease of 168 crore, that is 2.5% in DD&I cost, which This is mainly on account of impairment reversal of 224 crores during the quarter compared to a small impairment loss of 4 crores in Q3 25. With this strong operational execution, strategic progress and resilient financial performance, ONGC continues to reinforce its contribution in India's energy sector by working towards production growth. With this, I conclude my briefing on the third quarter results for Financial Year 25-26. We are now happy to take questions and answer them. Thank you.

Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and 1 on a telephone keypad and wait for your I will turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and 1 again. First question comes from Probal Sin from ICSA Securities. Please go ahead.

Very good morning, sir. Thank you for the opportunity. I hope I'm audible. Yes, yes. Sir, on the KG 98x2, thank you for updating us on the progress of the associated infrastructure. But I just wanted to understand now, how are we looking at FY27 in terms of gas production ramp-up? Can we share some numbers of where we expect production to be, maybe at the exit of FY27 or over the year? What kind of average output we expect now? That was my first question.

Your question is for KG 98x2 only. Yes, as of now. So we expect that the gas flow from these wells should start from the next quarter, which is from April to June onwards. And the gas would be ramped up. Coming towards the end of financial year 27, we would expect that this gas quantum should increase to 5 to 6 MMSEMD.

Got it. And, sir, the peak guidance continues to remain at around 7,000 to 8,000, which will happen sometime in 20 years. Yes, it continues to remain in that range. Okay. And oil production, sir, is already at around the level that we spoke. I mean, it is at around 25,000 to 30,000, sir, as of now.

It is around those levels. Once all these works are completed, we do expect that the oil production also should stabilize, And we should have certain additional production coming up. And the peak there was guided to around 40,000 barrels.

Is that correct?

Yeah, 35 to 40 we had mentioned.

Okay.

All right.

The second question was with respect to, sir, Opal, can you just share some numbers in terms of how Opal's performance has been in this quarter and any guidance you can share of our 20-year-old?

So, for Opal, it has now stabilized. Operations are going on well. They have been operating at more than 90% of that capacity. They have also, the average capacity utilization in Q3 was 9 months. So, 9 months was 92%.

Okay.

Revenue from operations was 11,000 plus crores. Any EBITDA numbers that can be shared? Yeah, EBITDA was 353 for the 9-month period.

The 11,000 crore was also for the 9-month period, right? So, after all the...

This is for 9-month. Just for... No, Prabhal, just one correction. Then, 11,000 was for previous year. For this year, it was 9,790.

9,790 crore was the revenue and 350 crore odd was the EBITDA for the 9-month period. Right, sir? Yes, correct. So, just a small follow-up here. After all the cleanup that has happened in terms of the debt and conversion to equity, what is the net debt now that is still sitting on Opal's book as of now?

It is around 23,000-24,000 crores.

So, is there any other measures that we are looking to do, sir, or now we expect that the profitability is good enough to service the interest cost, which again, probably, you know, would still be a few, you know, around 1,000-1,200 crores on the books?

As far as the profitability is concerned, we do expect that the profitability should increase because the capacity utilization should also move up from now onwards. Now that everything has been stabilized, even the petrochemical prices have started to move up. And therefore, the future for 27, we expect that the performance should be much, should be more positive than this previous year, than this current year.

So, we don't expect to have to infuse any more capital into this as of now, sir?

No, no, no. We are not expecting anything on that.

One last housekeeping question, sir, any CAPEX guidance and production guidance for FY27 overall?

So, broadly, ONGC will continue to have that CAPEX of 32,000 to 33,000. The purpose would remain on exploration as such, exploration, production as such, and for production also, we will just give you those figures.

Production for this year. Production for this year.

Next year. Yeah, I think we will be producing, we are targeting to produce total oil and oil and gas is 42.5 million tons.

Sorry, sir, I could not get it.

Is that 42.5 million tons? Oil and oil equivalents, including oil and gas put together, 42.5 million tons.

For FI27, this is standalone numbers, right, or in theory, maybe? This standalone production. Perfect. Thank you, sir, for the detailed answers. I'll come back. All right. Yeah, thank you.

Thank you, sir. The next question comes from Varadaraj and Shiva Shankaran from Antic Limited. Please go ahead.

Thanks for the opportunity, sir. So, if you can give some idea about the discoveries during the nine months and any reserve acquisition, which you can actually put the number to.

So, reserve acquisition figures, you'll be able to give on the yearly basis only. We normally do that on a yearly basis. We have had discoveries during this nine-month period. If you want a total number of discoveries, you'll give that separately. Prakash would be able to give it to you separately. We have been reporting it on a basis as such.

And any update on the OVL, especially Venezuela, Saqqin, and Mozambique?

So on Mozambique, the force measure has been lifted. Already work has started on ground over there. Work has started full-fledged over there on ground. So it is on track to start production from 28 onwards, LNG production from 28 onwards. Venezuela, we are... Are you good at CAPEX, sir? CAPEX is the same. There is no further increase on the CAPEX now. Another, on Venezuela, we understand that the U.S. government is progressively lifting sanctions or is in the progress of liberalizing the trade from Venezuela and maybe allow other countries also, companies also, to start operations over there. We are awaiting on those instructions as such, but the movement is in the positive direction, and we are hopeful that we should be in a position to restart our operations once the on-ground and U.S. sanctions get lifted totally. Sakhalin, there is a progress. Money due to $500? $550 million around. $550 million. That is the dividend that is. For Sakhalin, we continue to move ahead along with the Russian government also, and with the help of the Russian and the Indian government, we are moving ahead. We have been advised that our share of equity has been secured in that company, which is a very positive step as far as ONGC and OVL are concerned. And we are hopeful that during this coming year, we should be in a position to have a share of our held up dividends, etc. So, operations continue to happen over there in Sakhalin. So, production is happening over there. So, that is not an issue for as far as the production part. Operational part is concerned.

There will be no change in the share-holding, but what we were holding, would you consider that?

Yes, there is no change. It would continue to be 20% off.

One last thing about this production targets, if you can do as a breakup of oil and gas separately as well, and we possibly affect 28 as well. Thank you, sir.

The next question comes from Mayank Maheshwari from Morgan Stanley. Please go ahead.

Thank you for the call, sir. On the production side, can you just give a bit of details around what's going on for the rest of the blocks apart from KG on production ramp? As well as I think we are still seeing a consistent challenge, especially on the JV side on GATS from the production perspective as well. So, what's going on there as well, if you can give us a bit of an idea of what are you expecting for this, for fiscal 27, around production?

Yeah. Production, because we want.

Morning, Mayank. Just hold on. Yeah, in the MH field, already we have engaged the TSP, that is Technical Support Service Provider, BP, And we have planned a number of wells to be drilled as identified jointly by ONGC and BP. And we are seeing the positive output from that area. So that is giving stability to ONGC production. Similarly, for Neelam, Hira and BNSS, oil production are more or less studies there. So, it is giving desired production what we emphasize. And similarly, for onshore enclosure, Ahmedabad and Mahathana asset, there we are drilling number of wells as targeted and there also production is stabilized. So, as such, we are very confident of achieving the target set for this year and as well as for next year's 26-27.

So, Mayank, additionally, as the DUDP project, which is the Daman Upside project, is on track. We are already confident that in the next quarter, gas should start flowing from this, sorry, from March itself, this would start flowing. Gas would start flowing from that project. DSF project comes up for the next year, last quarter. That is also on track. So these are the two projects which are going on well and will provide immediate upside apart from that KG Basin new gas, which is about to come up.

Thank you so much. I think on BP technical support that you have got, can you give us a bit more details around how much have you been able to kind of arrest the decline, what is going on there, and what are the positive outcomes that we have seen around that?

Yeah, so the decline has been, we can say, if I will stick my neck out and say that it has been arrested because it is too early days. But yes, we have seen an uptick coming up. The production that we are getting from MHP where we have TSP or BP working with us is higher than the, it is about more than 100% that we had, what we had envisaged. So that production uptick has started to happen and we expect that they should improve over the coming quarters. So BP's contribution has helped us increase oil and gas from both from the MH field. And it has been, MH field has given us about nearly 7% higher, MH field only, I am not talking about this, 7% higher than what we were expecting in this QB quarter than what we were expecting earlier on. So, it has been a positive play as far as we are concerned.

So, sir, is it fair to say that MH field where you had 8-10% decline rates is now only 2-3%? Is that the right for thinking? It is becoming positive.

Okay. By the quarter end, I will be in a better position to give you the figures percentage wise and all that, but it is already turned positive.

Got it. And so the second question was related to cost. You have emphasized on how you are trying to control costs and then I think previously the CMB had talked about that as well. So, in terms of targets that you had given earlier on cost controls, how much of that have you been able to kind of get to and what you think will get achieved in 25 and 27?

So, those targets have not been met because the year is not yet closed or the period that we are talking about has not yet completed, but we are on track to do that. We have reduced our inventories. We have also taken structural steps to reduce costs in the long run. We We have also started off with TIPAWA port operations, which reduces our logistics cost as far as the deployments are concerned for the northern part of Mumbai Hive Field. We have also optimized on the diesel consumption, and actions have been taken over there. We have been taking action on reduction in our costs as far as manpower security is concerned. So, those things have already started to translate into savings, which would be reflected in the annual figures as such. We are also transitioning to renewable energy power, our own generated power or green power that we will be using, which would reduce our power bills also. So, all these are on track, and results should get reflected in this annual, or this last quarter onwards, further on.

Thank you, sir. Thank you. Very much.

And if you see, in spite of the crude prices going down very substantially, we have been able to report positive figures, both for the third quarter as well as for the nine-month period.

Thank you, sir. Brilliant.

Next question comes from Sabri Hazarika from MK Capital. Please go ahead.

Yeah, good morning. So, I have a few questions. The first one is, there has been some decline on the share of U.S. gas from 21% to 18% as per your press release. So, is it, I mean, can you explain, give more color on that?

21% to 18%?

I mean, what you mentioned in the press release.

Sabri, just hold on. Your point was that it has gone down from 821 to 18 percent.

Yeah, I mean, what you mentioned in the present is so.

Yeah, we have mentioned 18 percent on our present.

So, 18 percent is, Sabri, on the basis of 9-month production, what it is, vis-a-vis.

18 and 21 is on revenue basis, not quantity basis. So, revenue to gas ka price? He is talking about quantity.

So, what I was referring was, that 21% was on the 6 monthly basis. Now, if you consider that 9 month production, on that basis, it is 18%.

Okay, and it is also on revenue, I have seen it. So, it is fine. Yeah, it's on revenue. Yeah, second question is on this. I think the director of production in the India Energy Week mentioned some figure 4,000 parents per day of incremental production from this BP, TSP. Could you clarify this? It is too early to actually quantify.

So, as I mentioned earlier to an earlier reply that we have already seen positive results for MHS, MH field because of the TSP. The quantification, final quantification of which we will be in a position to give you at the end of the year or during the annual figures as such. But yes, there has been a positive development in Mumbai high field, both for oil as well as gas.

You've got it, sir. Third small question, what are the nine months KPEX, spend on KPEX for the company?

So, we have spent around 24,000 crore, 24,400.

Right, sir. And, sir, last question is, I think it's a regulatory question. So, we have seen that in the ORDA amendment, a lot has been stated about fiscal stability and all, But the government basically raised the GST in the budget sharply, and there is no input tax credit also. So is there any relief that the company can seek based on the OID amendment, or you have to accept it for now?

As far as this GST increase is concerned, we don't think it would be possible for us to get any relief under that OID Act as such. Because the GST Act is particularly for all the goods. It's not necessarily for only oil and gas sectors.

Okay, anything related to MOPNG could be like, that relief could be sought, but this is coming from financial services.

There was no stress increases and all those things, what was happening earlier on on Aslan. Those things would not happen. There would be no ad hoc subsidy or in-call tax or something like that.

Got it, sir. Thank you so much.

Thank you, sir. The next question comes from Gadan Dixit from Elara Securities. Please go ahead.

Yeah, thanks for taking my question. I have a question on this Daman upside development project. So, what is the expected gas contribution in FY27? 4 to 5, MMSEMD. Okay, so full number, that's what we expect in FY27.

Okay, sir. Yes, because all our project is on schedule, drilling also is already being done, already some wells would get hooked up immediately. So, we are, from March itself, we will have gas coming up.

Okay, sir. My second question is, you mentioned four major infrastructure projects, that's the nearing completion. So, which are these and what is the incremental production that they unlock over the time, sir?

So, the project which was mentioned, basically, those were mainly, one was Daman, what we were talking about, which already Sarah has spoken. The rest of the projects were infrastructure projects, what we are referring to. Okay, okay. Yeah, that's not my question. And Daman, actually, if you see, it's already completed around 94%.

Okay, okay, sir.

Yeah, that's not my question.

Thanks.

The next question comes from Vivek Anandes from Ambit Capital. Please go ahead.

Yeah, thank you for the opportunity. So, my first question is on the investments outside of ENP. So, you had invested in IANA renewables, and you had highlighted targets for 2030 in terms of the gigawattage output that you expect from renewables. Can you give us an update on that and the CAPEX commitment for FY27, FY28 each year? I believe your CAPEX guidance is only for standalone, if you can help us with this number. That's question one. I'll ask the next one after this.

For IANA renewables, it continues to be on track for, it is producing electricity from wind farm and solar projects which are there already. The projects under execution are continued to be executed. They should be completed within this coming financial year. As far as the addition to all the targets that we are dealing with for 2030, yes, those stand at 10 gigawatts stands for 2030, and towards that end, we are already looking at projects which we could acquire. There is one project which we are setting up, 300 megawatt project, solar project that we will be setting up as a greenfield on our own, ONGC as of now. So, our targets remain in place, and we continue to be more or less on schedule for this thing. Would you like to add anything? Okay, that's okay.

Any specific question, we can be clear.

Yeah, that's it, Vivek. Anything further you want?

So, is there any CAPEX guidance you want to provide for FI27 and FI28 as far as renewable investments?

So, these targets would be, these, for this renewable, it would be more of, whenever we get opportunity, we would be making those acquisitions or taking over those projects. So, we have not kept a target, but we are open to for up to 10 gigawatts, we are we will be working on that. So, capex is not a problem for us.

Okay, the next question is on the petrochemical investment plans. So, you had been in talks to set up a greenfield refinery in Prayagraj in UP, and more recently, I think chairmen, sir, also commented about the petrochemical story in the India Energy Week. Any concrete plans or any thoughts that you want to share here with respect to the negotiations for the Prayagraj land parcel, the investment today that you are planning, and any timeline? Thank you.

We are already working on the various projects. We are contemplating and working with the partners. But still, as of now, no concrete plan has been declared. As regards to Paragrad, there is a land parcel available with BPCL. So, we are in the talks with BPCL and with the UP government. The plans are being worked out. Techno-economics are being worked out. But no firm plan as of now.

Okay. Thank you and all the best. Thank you.

Dear participants, if you have any questions, please press star and 1 on your telephone keypad. Next question comes from Saket Kapoor from Kapoor & Co. Please go ahead.

Yeah.

Namaskar, sir. Hope I'm audible. Yes, please, sir. Yes, sir. Sir, the question is pertaining to the capex part from the PSU. When we are looking at your ancillary companies, suppose a pipe manufacturer, the seamless pipes or the rig prices, everywhere we have seen softness. And also, when we look at our historical data, there are quarters, post-December, when there is, there are a lot of supply, demand being generated from the existing fields in terms of the pipe orders being tended. So that has not been the case for the current year. So, can you give us some outlook on your spending or on the pipes for the rigs, for the welds, which are already in output? Just to improve the output there.

Yeah.

So, our CAPEX program is on track. As we have already mentioned, we continue to have capex of 32,000 crores for our company. And as far as our ordering, et cetera, is concerned, it is on track for meeting our capex as such. So we are not in a position to comment upon what about the other companies are concerned. Right, sir.

But when we hear the output part, the oil output from the country and all are on declining trend also, correct me there if my statement is incorrect. So going forward, what should be the output guidance from the management in terms of the existing oil field and also which are in the exploratory stage?

So, as we have already mentioned earlier on, 42.5 million metric ton is the oil and gas equivalent that we are targeting for this coming financial year.

Great, sir. So, I will join the queue. Thank you.

The next question comes from Vikas Jain from CLSA India. Please go ahead.

Hi, sir. Thanks for taking my questions. I just wanted a little bit more details on each of these production projects and where they would take us if we try and visualize quarter by quarter or half by half. So KG 98 bar 2, you said production should start flowing in in a couple of months, starting April to June, that quarter. And the ramp up, the incremental five to six, I think we are already at about two MMS CMD or so. So, the incremental 5 to 6 will take 3 to 4 quarters. Is that what you said?

Yeah. I said from April till April, we will be doing this ramp-up, etc. And subsequently, it should start coming up to 3 to 5 MMSEMD.

Okay. Additional. Fourth quarter. Yes, yes, yes. And, Taman, you said the start will happen in March. And it will ramp up to the 4 to 5 very quickly? I mean, within a couple of months itself? Is that the likelihood? In the quarter, it should happen.

July quarter, it should definitely be there.

Okay. So, all in all, put together, say sometime by between December and March of December 26 and March 27. So, say by July quarter, we'll have an extra 4-5 from Daman, 1-2 from, you know, about a 2-1 or 2 from KGD-6 by July, by June, July. And then by somewhere by the fourth quarter, we could have a total of incremental 10 MMS CMD from these projects, right?

Yeah, because by that time, Vikasji, our TSP would be also there. So, more positive things we can make.

Yeah, what are you understanding, Vikasji is broadly in line.

Yeah. And, sir, MH Field coming back, I just wanted to, maybe I was thinking very quantitatively, when you people were saying that it has turned positive to the question that what is the decline rate, Is it that you've been able to arrest the decline as compared to the earlier rate of over 7-8% decline of the MH field? Is that what you mean by it has turned positive or it is just that the decline rate has reduced? Because maybe I was thinking too quantitatively about the positive.

No, positive is positive in the sense that the decline has been arrested. There has been an addition to that. But figures we'll give you at the end of the year.

Okay. And so just to understand, so this field was declining at over, left to itself about 6, you know, 6-7% every year or more. Was that the case?

So broadly, what happens is you estimate the decline because you can't project how much the field will decline over 10-year period. So broadly, it was being said that this is declining from 6-8% annual basis. That is what we were expecting this field to decline. And accordingly, we had looked for getting measures to arrest that decline. There was a profile which was agreed to between BP and ONGC that this would be the base profile if we do nothing case sort of. Sure. This is how the production would decline, and now we are getting production. So, BP is actually to give us production beyond that decline. What they have committed is 10 million metric tons instead of 10 years. Okay.

Okay. So, you can say that the early gains have already started because versus your projected, you know, production levels, we are doing better.

Yes. So, if you remember, I have been saying for the last two quarters that we are expecting the TSP to give us positive results from the fourth quarter of this financial year, which we are already seeing it. And for the year-end, I think we should be in a position to give you those results. Sure.

And new well gas, if not talking about nine months, not talking about six months, but if I were to look at the exit rate right now, and maybe whenever the next recognition of incremental production is, say, April or somewhere, that new well gas would be what share of output, say, from around April as per your best guess?

So, we would expect that every year or every quarter, this percentage of new well gas should increase, because what happens is, for the existing fields, we would be working over the existing wells. If they stop, we will work over them, or we will be doing certain other jobs, we should

increase the production of the existing wells and the field.

So, that becomes the new well gas. What we are expecting is that we should have an increase in 20-27. Now we are at 18%. We should increase up to 24% or something like that.

Sorry, 24% from April onwards. Yeah, you will get to be 24%. Okay, for the year. Okay, over the next 3-4 years, you will say. We just say 18%. Sure, sure, sir. Understood. And, sir, just to get a confirmation on the pricing, KG98 bar 2 will, of course, be HPHT, and Dhamman will be what pricing? NWG. NWG pricing. Thank you so much, sir. Those were all my questions.

The next question comes from Ketan Mehta from Baroda BNP Paribas. Please go ahead.

Thank you, sir, for the opportunity. In our target for FY27, it's 42.5 million ton. What are we assuming about the BP at this point of time? Is it a continuing decline or a zero decline for FY27? I was asking in terms of the Mumbai high production field, what is our assumption for FY27 when we have shared in our target 42.5 million ton?

So for the 42.5 million ton, we have not considered any contribution from this TFP project.

That would be an upside. That's it. Yes, it would be an upside. Sure. And in terms of the BPTSP, would you be also able to share the number of wells that we plan to drill and what would be the investment during FY27?

No. As of now, no. Why? Because that is still a work in progress, what we are doing. And once that gets finalized, then only we will be in a position to communicate about the details about the sale, Which we should most likely maybe in the annual results, we would be able to tell you. That's why I said the figures also we would be able to tell you around that.

Sure. And in terms of the value creation that we are approaching, would we be able to give more color on what kind of numbers we can achieve during FY27?

Or the production figures, are you asking me?

On the efficiency and value creation market that we have spoken about.

On the cost control? Cost control, yes, sir. So, we are targeting that we should be reducing our costs by around 1,000 crores

by

the various measures that we have undertaken now.

This is additional 1000 crore target over and above the measures that has been undertaken during FY26. Is that a right question?

It is a continuation of those measures that you have taken in 2020.

Sure, sir. Thank you. Thank you.

The next question comes from Ramesh, an individual investor. Please go ahead.

Thank you. So, if you were to look at your new well gas, I understand that it's going up from 18 to 24%, right, in terms of the share of overall gas production. So, you will get the incremental upside in the gas price on the additional 6% on a weighted average basis, right, on your new well gas. Is that the right way to understand that?

There would be an increase in the percentage of this new well gas as a percentage of the total quantum of gas produced. Another thing from the nomination fields, another thing is that the price that we get would be 20% higher than the price that is given to the APM gas.

Yeah, on the pricing, I understand. So, basically, in terms of the growth for next year, if you are expecting the share of your new oil gas to go up from 18% to 24%, on that additional 6%, you will get the market-based price, based on the 20% higher price, right? That's the way to look at that, right?

The market-based price, it will be getting up to that 12% of the slope, Indian crude oil.

Okay, and if you look at beyond 27, is there any further increase possible in the share of the new well gas?

Yeah, normally what we are expecting that every year we should have additional incrementally gas, new well gas coming up from this nomination field.

Even if we maintain the production, we will have an uptick of around 7% or so. And in addition to that, let me tell you, currently it is at 6.75 from April 1st, that ceiling will also go up by 25 cents, which will be at $7. Okay.

Okay. The second thought is, if you look at your segment numbers, the petrochemical loss has come down. So, do you have any line of sight in terms of when you would be able to report a positive number for the segment results from the petrochemical segment, Given the kind of efforts you have put into, you know, restructure the feedstock and improve the product mix, when do you see that happen?

With this petrochemical prices moving up and with the other costs under control, we are quite hopeful that we will continue to be EBITDA positive for the full year next year. And hopefully we should be turning the corner also.

So would that be visible from the first quarter itself or more likely from second half?

So, EBITDA positive, we already EBITDA positive currently also. So, we kind of continue to do that. Whether we turn the corner in the next quarter or the next year or subsequent, that would depend partly also on the petrochemical price as such.

Okay, so one last part if I might squeeze in. On the ethane sourcing arrangement you have with the ethane ship and the agreement with Petron LNG, so I know you can't possibly get into the commercial terms, but in terms of the ethane sourcing, are you in a, you know, position to confidently have a line of sight in terms of the quantity you want, and what would be the, you know, pricing mechanism for that? Would you import it on a CIF basis because you have the ship, Or how would you go about, you know, fixing the commercial terms, and because that would have an impact on the economics of using ethane for your petrochemical production. So broadly, in terms of the availability of the required quantities, what proportion of the nafta you can replace, and what would be the broad approach to the pricing?

Let me come back to you. See, the opar plant uses basically two feedstocks, 60% naphtha, 40% ethane. So we are trying to engage this 40% ethane beyond 2028. Terminal part has been fixed, fixed shipping arrangements have been made, and we are in the process of fixing up the sourcing issue. So, the quantity would be of the order of 600 KTPA. Pricing and all, we will declare at a later date.

Thank you very much. Wish you all the best. Thank you.

The next follow-up question comes from Sakit Kapoor from Kapoor & Co. Please go ahead.

Yes. Namaskar, sir. Hello. Yes, please. Yes, sir. So, just I am referring to two new discoveries for Suryamani and Vajamani. So, where are these, sir, in terms of the exploration activities, and also for the Mahan Adhi Basin, sir, I think, so, some discoveries were made in the MNDWHP 2018 block. And so, secondly, we had some tie-up with BP, which is the old oil fields, we will improve our yield, or the subject of our substrate in the well. So, how does that venture progress? What do we have done capex now? Thank you.

Coming to your first question on Suryamani and Vajramani, we will have... So, the Suryamani and Vajramani are both in the western offshore part of our fields. Regarding Mahanadi Basin, what was your question? What is the discovery as such?

Yes, the discovery as such, and when are we trying to explore?

So, discovery or the development part of it will take some time. We are currently doing that development Thank you very much.

Sir, in my previous question also, I have inquired about what kind of order tendering we have done in terms of the, especially the seamless pipe segment. If you can give me comparable numbers for the current financial year with the previous year, and for going ahead, what have we outlined in terms of CAPEX that will be attributable to this category? I think these are consumables for us, if you could adjust abreast on the share.

As of now, I would not be in a position to give you those figures offhand as such, because normally an analyst call will give you all details about what are the major plans, etc. So we restrict, we don't have those details with us, we will have to get it all those things. Okay, sir, I'll take it then.

So the next question comes from Vivekan and Esh from Ambit Capital. Please go ahead.

Right, sir. Thank you for the follow-up opportunity. So, as far as OVL is concerned, can you give us an update on the dividends that you expect from there and any status on the money that you should have by now repatriated to India? What is the status of that? Given the geopolitical tensions, I believe there was some money that was stuck there. That is question one. And the second one, if you could repeat the update on the new well gas revenue contribution, I think Sabri had asked earlier that you had mentioned in the 1-H results that the revenue contribution was 21%, but in nine months, the revenue contribution declined to 18%, suggesting meaningful fall in new well gas revenue contribution. Yeah, those are my two questions. Thank you.

Okay. Just, just hold on.

Just hold on.

Vivekanji, we do have Mr. Ashri Gupta, who is MD of ONGC Videsh, so he would respond to your query.

Thank you. It's now more or less normal. Yes, the geopolitical tensions are going on, but we do hope that there will be a resolution sooner than later.

Regarding NWG, just give me a minute.

NWG 528 out of what was mentioned earlier was, as was already clarified, I think that it was on the H1, the 21% was on the H1 figure, and this 18% is on the 9-month figure. So, for the H1, we had about 3,352 crores to be precise as the new well gas revenue upon a total revenue of 15,000 odd, which comes out to around 20-21%. Whereas in this case, in the 9 months, it is 5,000 plus crores of new well gas upon a gas sale of 23,000 odd, 24,000 odd, which comes out to 18%. So, there has been incremental addition to the new well gas, but as a percentage of the total gas revenue, it has, the percentage has come down. So, it is more of statistics than anything, but it moves upwards.

Right, sir. Why has it come down? What if it's probably...

So, there's a difference in the gas price. New well gas price and the quantum of other gas efficiency.

We will just put out that NWG GAS sale figure also, so that that could help you out to work out.

Yes, yes, I think that would be more helpful, because I think might be related to HPHT contribution, maybe. Yeah, that's also there. It is possible, but yes, it would be great if you can put that number out. That is how it is, yeah.

Okay, thank you so much. Okay, thank you.

The next question comes from Somaya Vee from Aventus Park. Please go ahead.

Yeah, thanks for the opportunity, sir. Sir, the question is on the production output for FI27, the growth that we are building on a YOY basis. So if you could just help us with one, what is the natural decline rate that gets built in? Two, in terms of projects, Daman and KG-based are the two major ones that we are factoring in for growth.

Yeah, we've already mentioned this thing. I'll repeat it. For KG, we have already mentioned that all our modules have been installed. And now we are doing the hookup, commissioning, etc. will be carried out. And from this next year onwards, we should have the gas flow coming up, and we would have 4 to 5 mm CMD from KG Basin in the next year. For Daman Upside also, we have mentioned that our wells have been drilled. We are in the process of drilling. We are in the process of doing the jacket and well platform installation, etc. We are expecting first gas to come in from this marsh itself. And for the next year, we would have again another 4 to 5 mm SMD of gas coming up from Daman Upside project as such. As far as the targets are concerned, whenever we give the targets, we do factor in whatever are the likely reductions or expected declines for those fields and the measures that we are going to take. So, it is not that we would have just a reduction coming up in all the fields. There would also be actions that we would have taken, drilling of wells, we would So, broadly, we consider, you can consider that this would be around, depending upon the field, this can be around 6 to 7 or 8 percent declines on a normal basis, but fields do behave differently. If you see other fields at other places also, declines have been very sharp. It depends upon the field, it depends upon how much you are extracting, it depends upon what processes you are using, the intake of the field, etc. Many factors which contribute to the decline in production for fields as such. Broadly, we have been considering it to between 6 to 8 percent.

Got it, sir. So, the question on the projects was, are these two the only Are there any major projects that we are considering in FY27, or is there a few more projects that gets built into the FY27 outlook?

So, DSF2 project is coming up, which is again a gas in the west coast, and we are expecting it to come on stream in the last quarter of the next year.

Yeah, thank you.

Thank you, sir. There are no further questions. Now I hand out the floor to Sri Vivek Pangonkar for closing comments.

Yeah, thank you very much, Madhuri. Thank you all participants for being on the call with us, and we do hope that we would have replied to your questions. Any further details, you can be in touch with our IRC seller over here. I would just like to mention that as we have been saying earlier in different various calls, that TSP, we are expecting positive results or we would be getting certain results in the last quarter of financial year 26. I have already mentioned we are also getting positive results and we would be in a position to quantify that at the end of this year. Secondly, our KG Basin project, which had been delayed because of certain reasons, we have now been able to install all the modules over there. The hookup commissioning works would be underway, and we do expect gas to start flowing from the immediate, in the beginning of this coming financial year. DUDP is also on track. Our gas we expect to flow from this March itself. So those are upsides that are there. And I think one major decision which the board has also taken else to announce a dividend of 6.25 rupees per share. Considered with the first interim dividend of 6, it is a total amount that we are giving is 12.25, which was the dividend that we had paid for the previous year. So on an interim dividend basis, this is the highest cumulative interim dividend that we have paid. It signals a very strong, we are very quite positive about the future of this company, and we are We are also taking care of our stakeholders so that they get optimum returns also. So we do hope that this would, the stakeholders would also welcome this. This was one longstanding demand from the investors also about the returns or the rewards that are given to the shareholders, and we think we would be in a position to reward the shareholders in the future also. Thank you very much.

Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Doorsabha's conference call service. You may disconnect your lines now. Thank you and have a blessed day.