In a time when global crude oil prices are struggling to regain their former strength, India’s state-run Oil and Natural Gas Corporation (ONGC) is reimagining the way it operates. Determined to thrive even in a $60-per-barrel world, the company has unveiled a sweeping plan to save ₹9,300 crore by 2027 — a move that marks one of its most ambitious efficiency drives yet.
The savings, which account for nearly 15% of ONGC’s projected operational and capital expenditure of ₹62,000 crore, are not just about tightening budgets. They reflect a deep cultural and strategic shift within the organization — one focused on smarter operations, leaner processes, and technological collaboration.
Building a Culture of Cost Consciousness
The company has set up a dedicated cost council to steer this transformation. It’s not merely an accounting body, but a think tank designed to identify and unlock efficiencies across every level of the enterprise. ONGC’s leadership acknowledges that the oil market’s subdued outlook demands a recalibration of priorities, where sustainability and agility must go hand in hand.
Currently, over 20 initiatives are already being implemented, with an estimated potential of ₹4,300 crore in savings. Another ₹5,000 crore could follow from projects still on the drawing board. Together, they represent a robust roadmap toward disciplined capital management in an unpredictable market.
The Efficiency Engine: Where the Savings Come From
The core of ONGC’s cost-optimization plan lies in improving offshore resource utilization, boosting drilling efficiency, streamlining logistics, cutting inventory waste, and increasing fuel efficiency across operations.
One of the standout projects in this push is the expansion of the Pipavav Supply Base. By scaling it up to serve two-thirds of the company’s offshore workload, ONGC expects to unlock over ₹1,000 crore in savings. This initiative alone reflects a shift from reactive cost-cutting to proactive, infrastructure-led efficiency building.
Collaboration for Growth: BP Joins the Journey
In a bold move to enhance production while cutting costs, ONGC has roped in UK-based BP as a technical service provider for its flagship Mumbai High field. The partnership aims to raise oil output by 44% and gas production by an impressive 89%, potentially generating an additional $15 billion in revenue over the next decade.
Under the new revival plan, Mumbai High has been divided into six operational hubs for faster, more focused redevelopment. ONGC has already committed $400 million for the first phase, while the second phase, slated for FY28 and FY29, targets the drilling of 100 new wells.
A Future-Oriented Vision
Beyond Mumbai High, ONGC is exploring additional technical collaborations to boost production across other fields. The company’s board has approved an extensive development scheme to produce 12 million metric tonnes of oil and 13.5 billion cubic metres of gas in the coming years — a clear signal of its commitment to maintaining domestic energy security while staying cost-competitive.
The New ONGC: Resilient, Efficient, Future-Ready
ONGC’s ₹9,300 crore savings drive is more than a financial exercise — it’s a strategic reawakening. By investing in technology, partnerships, and infrastructure while tightening operational discipline, the company is preparing for a world where margins will be thinner, but efficiency will define success.
In an era of shifting energy priorities and uncertain oil prices, ONGC is not waiting for the tide to turn. It is reshaping itself to sail smoothly through it — proving once again that the strength of an industry leader lies not only in its resources but in its ability to evolve.
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This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.