ONGC sees crude oil prices hovering around $60 and $65 per barrel next year

Despite global volatility in energy markets, the state-run Oil and Natural Gas Exploration Corporation (ONGC) remains cautiously optimistic about the medium-term outlook for oil prices. According to a senior ONGC official, crude oil prices are expected to range between $60-$65 per barrel over the next two-three years, driven by a good balance between rising global demand, evolving supply dynamics, and the ongoing clean energy transition.

“Oil prices are expected to remain volatile, but we expect a stable mid-range of $60-70 per barrel in the near to medium term,” the official said, adding that ONGC is strategically positioning itself to remain profitable and competitive in this price environment.

The company has seen a reversal in the downward trend of its standalone crude oil production, reflecting the impact of focused operational improvements and ramp-up of new projects. ONGC is implementing multiple development projects on its eastern and western sea fronts to maintain and enhance production levels.

As part of its growth roadmap, the energy major has allocated US$400 million of capital expenditure for the ONGC-BP Redevelopment Project (Phase I). The official pointed out that this initiative will play a major role in improving production efficiency and extraction rates from mature fields.

Additionally, ONGC has identified over Rs 4,300 crore of potential value across 20+ strategic initiatives currently underway. This includes digital transformation efforts, improving operations, and integrating cleaner and more sustainable technologies across its operations.

With the global energy landscape rapidly transforming, ONGC is preparing for a future in which the price of oil could stabilize at $60 per barrel. “We are realigning our operations, investments and efficiencies to thrive in a low-price environment,” the official said.