News Brief
ONGC Targets $1 billion Profit From New Crude Oil Trading Venture With Global Partner
ONGC posts net profit of Rs 15,206 cr in Q1
India's state-owned Oil and Natural Gas Corporation plans to establish a dedicated trading company for crude oil and refined fuels, targeting $1 billion in annual profits, as per Reuters.
The strategic venture will consolidate trading operations across ONGC's group companies, which collectively handle approximately 100 million tonnes of oil annually.
The new entity will involve stakes from ONGC's subsidiaries Hindustan Petroleum Corporation Ltd and Mangalore Refinery and Petrochemicals Ltd.
A global oil company will join as an equity partner to provide international trading expertise. ONGC annually produces about 42 million tonnes of oil, whilst its refining subsidiaries together import approximately 45-50 million tonnes.
ONGC’s idea to create a trading unit is still at an early stage, and “an internal group has been formed to discuss and look into the modalities, including legal issues,” Rajarshi Gupta, Managing Director at ONGC Videsh, was quoted as saying by Reuters on Tuesday (14 October).
The venture forms part of ONGC's broader strategy to optimise operations amid fluctuating global oil prices and an anticipated low-price environment. The consolidation will allow the group to leverage its substantial trading volumes for improved bargaining power.
ONGC, which contributes around 70 per cent of India's domestic crude oil production and 84 per cent of its natural gas output, has been expanding beyond traditional upstream activities.
The company posted a profit of Rs 38,329 crore in FY25 and has outlined plans to diversify into green energy, crude trading, and nuclear energy as part of its long-term growth strategy.
