APPEC-India ONGC Videsh focuses on oil and gas sector interests

ONGC Chief Financial Officer Videsh said the company is focusing on acquiring stakes in overseas oil and gas companies as the shift towards renewable energy sources is likely to reduce demand for conventional fuels.

We are not interested in long-term projects because of the energy transition. Anupam Agarwal at APPEC said that exploration is not a priority at the moment.

ONGC Videsh is the overseas investment arm of the country’s leading oil and gas exploration company, Oil and Natural Gas Corp. It has stakes in 32 oil and gas projects in 15 different countries.

Global demand for refined fuels is expected to slow in the coming years as countries switch to more environmentally friendly fuels, such as renewable energy sources, to reduce emissions.

India, the world’s largest consumer of petroleum products, plans to convert a third of its truck fleet to run on liquefied natural gas and increase its use of renewable energy sources.

Agarwal said, “We continue to explore the surrounding areas, but our primary focus is on acquiring producing or near-producing assets.”

Agarwal said investment plans had been “disrupted” due to increased demand for services and equipment required for hydrocarbon production.

India is the world’s third largest consumer and importer of crude oil. India imports more than 80% of its crude oil requirements because its local production is almost static.

Agarwal said Indian companies are interested in increasing local oil and gas production from existing and new wells, including those located in border or difficult-to-access areas.

(source: Reuters)