ONGC Sees Profit Dip Amid Lower Oil Prices, Boosts Deepwater Exploration Efforts

India's state-owned Oil and Natural Gas Corporation (ONGC) reported an 18% decrease in second-quarter net profit due to declining oil prices. The company is actively enhancing domestic production, particularly in deepwater exploration, to mitigate financial impacts and sustain growth in the current fiscal landscape.

State-owned Oil and Natural Gas Corporation (ONGC) has announced an 18% decline in its net profit for the second quarter, attributing the decrease to falling oil prices. The net profit stood at Rs 9,848 crore for the July-September period, down from Rs 11,984 crore in the same timeframe last year.

The drop in profits is primarily due to a significant decrease in crude oil prices, which plummeted from USD 78.33 per barrel in the second quarter of FY25 to USD 67.34 in the current fiscal year. Natural gas prices, however, rose by 3.8% to USD 6.75 per million British thermal units for legacy wells.

To counter these financial challenges, ONGC is intensifying its efforts in domestic production and deepwater exploration. The company has notified authorities of two new hydrocarbon discoveries during the first half of the year and is actively pursuing the National Deepwater Exploration Mission to expand its exploratory activities in India's offshore regions.

(With inputs from agencies.)