Production remained broadly flat during the quarter, with standalone crude oil production at 4.452 million tonnes and natural gas production at 4.756 billion cubic metres
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State-run ONGC on Tuesday reported a 43 per cent decline in its consolidated net profit at around ₹6,554 crore during Q1 FY27 as the net loss of ₹12,265 crore by Hindustan Petroleum Corporation was partially off-set by higher crude oil price realisation.On a sequential basis, the country’s largest exploration and production (E&P) company’s net profit fell by a steeper 52 per cent. However, ONGC on a standalone basis reported a net profit of ₹17,034 crore, more than double on an annual basis.The Maharatna company’s consolidated total income was higher at around ₹2.08 lakh crore in Q1 FY27 compared to ₹1.77 lakh crore in Q4 FY26 and ₹1.66 lakh crore in Q1 FY26.ONGC’s consolidated total expenses were higher in the June quarter at roughly ₹2.02 lakh crore compared to ₹1.61 lakh crore in Q4 FY26 and ₹1.50 lakh crore in Q1 FY26.“The ONGC Group’s consolidated Profit After Tax (PAT) for the quarter was significantly impacted by HPCL’s consolidated net loss of ₹12,265 crore, primarily on account of under-recoveries on petroleum products arising from the sharp increase in crude oil prices following the West Asia crisis,” ONGC said in a statement.However, the strong performance of other subsidiaries, including ONGC Videsh and MRPL, provided a positive contribution to the Group’s overall financial performance, it added.On a standalone basis, ONGC’s crude oil net realisation from nominated fields rose 50.4 per cent y-o-y to $99.45 per barrel in Q1 FY27. The realization from joint venture fields was higher by 52 per cent y-o-y at $103.34 a barrel.During Q1 FY27, revenue from new well gas stood at ₹3,998 crore delivering an additional ₹1,897 crore revenue compared to the (administered price mechanism) APM gas price. New Well Gas now contributes around 38 per cent of total revenue from ONGC nomination gas portfolio.Production remained broadly flat during the quarter, with standalone crude oil production at 4.452 million tonnes and natural gas production at 4.756 billion cubic metres.“Oil and gas production remained flat during Q1 FY27, maintaining the momentum achieved in Western Offshore during Q4 FY26 and providing a strong foundation for future production growth,” ONGC said.However, the reduction in Q1 FY27 production w.r.t corresponding period of FY26 is primarily attributed to complexities in reservoir behavior of KG-98/2 in Eastern Offshore, inclement swell in Western Offshore in April and May 2026 before onset of monsoon resulting in delays in PRP-8 and PRP-9 (Pipeline replacement Project), and temporary closing of wells during pre commissioning/ commissioning activities of some major projects, it explained.Gas offtake from small isolated fields was lower during the June quarter, primarily due to operational disruptions at customer facilities, leading to reduced demand and consequently production.Based on early positive results of (technical service provider) TSP-1, the company has now engaged bp as TSP through ICB tender for the entire Western Offshore portfolio and remains optimistic about the long-term prospects of Western Offshore assets.In collaboration with bp, ONGC is implementing a comprehensive programme encompassing reservoir and pressure management, enhanced water injection, pipeline replacement, and several major capital projects aimed at improving production performance and asset integrity, it added.“This is reflected in one of the highest ever ongoing capital investment programme in Western Offshore, with projects more than ₹40,000 crore currently under implementation. We expect their benefits to progressively materialise from FY 2027-28 onwards, leading to enhanced production, improved recovery, and sustained value creation in the years ahead,” ONGC emphasised.Published on August 4, 2026
