The Oil and Natural Gas Corporation (ONGC) has unveiled a comprehensive roadmap aimed at substantially amplifying its low-carbon energy portfolio.
Aligning itself with India’s ambitious environmental targets, ONGC is poised to play a pivotal role in the nation’s mission to slash carbon emissions by 1 billion tons and concurrently decrease carbon intensity by 45 percent before 2030.
Having consistently adopted decarbonization strategies, ONGC has successfully diminished its carbon footprint over the years. By integrating sustainable practices into its core operations, the company has achieved a remarkable 17 percent reduction in Scope-1 and Scope-2 emissions within the last five years.
Notably, emissions were further curtailed by 2.66 percent during the fiscal year 2022-23. In an extended endeavor to reach the coveted goal of Net-Zero emissions for Scope-1 and Scope-2 by 2038, ONGC has laid out plans to significantly elevate investments in green initiatives.
The corporation is actively forging partnerships with key players in the energy sector to explore and capitalize on a spectrum of low-carbon energy opportunities, spanning renewables, green hydrogen, green ammonia, and other derivatives of green hydrogen. ONGC’s strategic collaborations in the Oil to Chemical (O2C), refining, and petrochemical segments underscore its deep understanding of India’s evolving energy landscape.
In a bold move, ONGC intends to establish two green-field O2C plants within India, while concurrently crafting a strategic roadmap to seize opportunities within the realm of renewable energy and low-carbon domains.
ONGC is committed to injecting around ₹1 trillion into its diverse green initiatives by the end of the decade, with a target of expanding its renewable portfolio to a robust 10 GW by 2030. With a keen eye on potential collaborations, ONGC is actively exploring avenues to harness the power of renewables, green hydrogen, green ammonia, and related derivatives.
Emphasizing its commitment to innovation, ONGC is channeling significant focus into research and development of carbon capture, utilization, and storage (CCUS) technologies to effectively mitigate emissions from existing processes.
However, the cornerstone of ONGC’s energy business will remain in oil and gas exploration and production (E&P). Extensive exploration in both known basins and frontier areas, sustained production from existing fields, and the development of deepwater resources continue to be central to the company’s strategy.
ONGC’s dedication to time-bound and technology-intensive Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR) initiatives reflects its capacity to extract additional commercial value from existing producing reserves. The company’s ambitious development and redevelopment projects are poised to make substantial contributions to its oil and gas portfolio.
In recent years, ONGC has demonstrated its commitment to pushing the boundaries of exploration, expanding its operational scope. Under its “Future Exploration Strategy,” ONGC has set a bold target to bring 5 lakh square kilometers of area under active exploration by acquiring one lakh square kilometers annually, with an annual expenditure of Rs 10,000 crore on exploration by 2025. This proactive approach signifies ONGC’s commitment to driving innovation and sustainable growth in the energy sector.
ONGC has reported revenue of Rs 163,824 crore and net profit of Rs 14,134 crore during the April-June quarter of 2023.