Good afternoon, ladies and gentlemen. I'm Adri, moderator for the conference call. Welcome to ONGC's earnings conference call for quarter and year ended on 31 March 2025. We have with us today: Sri Arun Kumar Singh, Chairman and CEO, ONGC Group of Companies; Sri Rajarshi Gupta, MD, ONGC Videsh; Sri Vivek Tongaonkar, Director of Finance, ONGC and team, who will interact with the investors and analysts to discuss Q4 earnings. As a reminder, all participants will be in listen-only remote, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator by pressing star and then zero on your touchstone telephone. Please note this conference is recorded. I would now like to hand over the floor to Mr. Sri Vivek Tongaonkar for his opening remarks.
Thank you. Thanks for the goodness. Good afternoon, ladies and gentlemen. I am Vivek Tongaonkar, Director of Finance, ONGC over here. I welcome you all in this ONGC earnings call for Q4 and financial year ended 2025. Thank you all for joining us on this call. We have with us Sri Arun Kumar Singh, Chairman and CEO, ONGC; Sri Rajarshi Gupta, MD, ONGC Videsh Limited. Also present with me are my colleagues from ONGC: Ajay Kumar Singh, Chief Corporate Planning; Sri Satish Kumar Dwivedi, Chief BD and JV; Yogesh Naik, Chief Corporate Finance; Sri Akhilesh Tiwari, Head Corporate Accounts; Prakash Joshi from Investor Relations; and Mr. Vinod Hallan, Head of Finance from ONGC Videsh Limited. ONGC has compiled its financial results for the quarter and financial year ended 31st March 2025, which have been audited by the statutory auditors.
The financial results have already been released on 21st May 2025 through a press note and sent to the stock exchanges. This has also been sent to the analysts who are on our mailing list. A brief synopsis of the result follows. The company has earned a profit after tax amounting to INR 35,610 crore during financial year 2025, as against a PAT of INR 40,526 crore in financial year 2024, a decrease of INR 4,916 crore, which is about 12.1% down. Sales revenue for financial year 2025 is INR 137,361 crore against INR 137,774 crore in financial year 2024, partly because of lower per barrel realization of crude oil. During financial year 2025, operating expenditure increased marginally by INR 753 crore, that is 2.8%, from INR 26,725 crore in financial year 2024 to INR 27,478 crore in financial year 2025.
During financial year 2025, there is an increase in exploration cost return of survey and dry well costs by INR 4,257 crore from INR 5,569 crore in financial year 2024 to INR 9,826 crore in financial year 2025. Major wells charged as dry during the financial year 2025 were at Western Offshore Basin: INR 1,152 crore; at KG Basin, INR 1,808 crore; at Cauvery Basin, INR 779 crore; and at Assam Arakan Basin, INR 359 crore. During the year, ONGC declared a total of nine discoveries in its operated acreages. Eight hydrocarbon discoveries have been monetized during the year. Reserve replacement ratio from domestic fields excluding JV share was 1.35. ONGC has achieved reserve replacement ratio of more than one for the 19th consecutive year. During the year, ONGC drilled 578 wells. This is the highest recorded in the past 35 years, comprising 109 exploratory wells and 469 development wells.
ONGC invested around INR 62,000 crore in capital during the year, thus achieving highest-ever utilization, including acquisitions, in a financial year. Exploration capital of INR 10,300 crore was invested during the year. This is up about 25% from the previous year. The standalone crude oil production during 2024-2025 was 18.558 million metric tons, which is an increase of 0.9% over the previous year. The standalone natural gas production was 19.654 BCM, as against 19.978 BCM in financial year 2024. To address the production decline in mature and marginal fields, ONGC is proactively enhancing well interventions and accelerating new well drilling initiatives, which includes the recent engagement of technical services providers. The board has recommended a final dividend of 25%, that is, INR 1.25 per share. With a dividend payout ratio of 47.3%, the total dividend for financial year 2025 would be 245%, which with a total payout of INR
15,411 crores. This is the highest quantum of dividend paid by ONGC. The company at a consolidated level has earned profit after tax of INR 38,326 crores during financial year 2025, as against INR 55,272 crores during financial year 2024. This is a decrease of about 30.7% in absolute terms, INR 16,976 crores. This decrease is mainly due to declining profit of subsidiaries, HPCL, MRPL, and OPaL. At the consolidated level, gross revenue has increased by 1.5% from INR 653,171 crores in financial year 2024 to INR 663,262 crores in financial year 2025. With this, I have finished my briefing of the results of fourth quarter and financial year 2024-2025. Now, I will request Sri Arun Kumar Singh, Chairman and CEO, ONGC, to address the attendees. Thank you.
Good afternoon, ladies and gentlemen. If you look at our performance, it can be classified or bucketed basically in three categories. One is our conventional E&P business, and second is renewable, and third is our refining and petrochemical. First category, let's look at E&P. E&P, basically what our PAT going down by 12% is if you single only reason, you can say is out of INR 4,000 some odd hundred crores, INR 4,200 is on account of exploratory well write-offs. Exploration in our business is something like investment. Unless you explore, you don't find new finds you don't get. Unless you get new finds, your future is not assured. You would note that this year we have accelerated our exploration on both sides. Capital expenditure itself is now 25% up. Naturally, we had some discovery; we had some dry outs, dry wells too.
Basically, if you discount these write-offs, then our profit is at the same level. That is at the same level. That is the first thing which I wanted to say. The second part is that contrary to a general belief and numbers over many years, this year, last year, and basically we at a standalone level, our production went up on oil side. This is very heartening news because we believe that this positive story will remain because of the actions that we have taken. Now you say that why what is it giving us confidence? That is also reflected in the fact that despite that going down by 12%, we kept dividend at the same level because we feel that we can sustain this. We can do better next year, and primarily on account of production increase.
Production, in fact, if you the moment we are done with 98/2, the gas production will go up. Also, you are aware that we are in the throes of doing 10 SCM more production efforts work, which is absolutely on dot. Hopefully, in the last quarter of 2025-2026, we will get 5 SCM additional from the project, which is almost 60%-70% complete investment off. Let's come to oil. Oil side, while we have done many interventions to make sure that we remain steady in our existing fields, we have big hopes from ESP that we are signed with BP, and that is dot on course. On 4 April, all the resources of BP are in our establishment, and we are also thankful to them for giving the best talents for enhancing the production of Western Offshore. That is Mumbai High.
Hopefully, it will start showing results after some time, and that is the hope we have that and also some more improvement in 98/2 in oil production. These two put together, we are sure of our oil going up. Yes, I told you that 98/2 main platform is to be put in place. Everything is done except for one platform, which is basically living quarters. That work, once we do, then we can enhance production there, and then also DUDP, that is the upside, and then we have another DSF in Western Offshore, which is also around 4-5 SCM. With these, we are very, very confident that we will have our growth story intact. At least what we have done is not flash in the pan.
Earlier, we were going negative, but now you see at least we have turned positive, and we hope to remain positive for years to come. That is so far the production side is concerned, and I have now two, three more things just to recover. That one thing is that we are investing big into future. Out of INR 62,000 crore CapEx we spent last year, we have INR 38,000 crore we spent in conventional business, E&P. INR 18,000 crore we infused into OPaL. That ONGC ownership is now 95% plus. And also that basically that what we have promised to our shareholders, we have delivered. When we are investing in OPaL, you all had a lot of questions that what will happen to the gas, raw material, what will happen to the SEZ, what will happen to third question was what three factors, no?
Capital.
Capital restructuring. Now you know that OPaL, at least from this quarter onwards, we hope to have a very, very good performance compared to yesterday's. All three were delivered. It is out of SEZ now, which is giving at least INR 700-800 crore per year boost. We invested INR 18,000 crore, so now the finance cost is down to this extent because this was all money lying on, and we were paying interest. OPaL was paying interest. Of course, the big thing is gas. The input gas now is available to them at new well gas price, which is roughly $8 at current price against market price of $13-$14. OPaL turnaround is benefit both to ONGC and OPaL both because it is subsidiary. You may be aware that one more subsidiary that is going is good now.
Naturally, we expect that this will also do very well. This quarter, even MRPL is going very well. If refining margin remains at this level, we can expect MRPL also to do very well. All three big ones. This year is also, you may be aware that from OVL side, a big laggard was Mozambique delay. Now Mozambique is almost, work is happening almost, any day we expect force majeure to be called off, but work in any case has started in a big way. We expect Mozambique to be delivering its gas in next weeks after three years. That is something, a very big upside for ONGC as well as for OVL. Now coming back to dividend payout, our friend Vivek conveyed you that is 245.
We are also proud at least to say that among CPSEs, not the banking sector, if you leave banking sector, CPSE, Central Public Sector Enterprise, ONGC is the highest profit-making CPSE, and even among any company of government in country. That is something that we are very proud of. Now I come to a futuristic thing. We do not mind sharing with you that OPaL, we are on the verge of closing everything for its ethane sourcing from 2028, right from terminaling to sourcing to shipping. This is something that is a good boost for OPaL because OPaL will need ethane in bigger numbers. LNG business is something that is a natural bet for us because you would be aware that we can have a model where all the integrated oil companies or gas companies have, those who produce, they have a natural hedge when they sell.
Because oil and gas, if it all it links, it goes up, you make a lot of money there. If it goes down, then you make a lot of money in the downstream side. LNG downstream, we have big aspiration. Hopefully, you'll get to hear something big once we are once we cross the threshold. Now you are aware that we have roughly 30% our offshore fleet is basically we have lots of requirement of vessels and hydrocarbon transport vessels. Naturally, we are thinking of investing big in this vessel business too because this is something that it is our line of business and also continues to be a good profit space.
Green energy, I just want to tell you that in one year, I do not know how many examples in the world is there where you jump from 0.1, 0.2 GW- 2.5 GW in four months' time. In January 2025, if I remember correctly, we were at 192 MW. As on date, we are almost 2.5. I am correcting because 2.23, 2.34 is INA plus PTC, and plus you add our 192 we have already had. So we have now 2.5 GW. Anybody having more than 1 GW in the renewable space is considered formidable. I am very happy to see that ONGC has become formidable in no time. In no time, I repeat, in no time, it has become a formidable force for in renewable energy space. You may be aware we have planned to go up to 10 GW . Today, we have 2.5.
7.5 we have to add by 2030. Every year, our rally should be around, if you go by, 1.5 additional to reach that goal of 10 GW, which holds us in good state from both sides, from profitability point of view and also from renewable commitment to the world that being a fossil fuel company, we'll do our bit of job to see that world is greener and better and also making a good business sense. This is something, this area that we are doing well, and we hope to do better in years to come. Now coming to KG, KG, as you know, your favorite, 98/2, we are at 33,000-34,000 barrels a day with peak production around 45,000 barrels a day. Peak production happens when the wells mature and also the reservoir, all conditions satisfy.
As you are aware, we started our production sometime in January 2024, and gradually we have been ramping up to reach up to 34. You should see another 10,000-12,000 we should expect from this field over the period of time. Now coming to gas, gas is something that we are producing well, and once we are done with everything, we should reach our target of 10 SCM. Now it is something that is extremely good reservoir, and also it is realizing good price for its crude because every month we sell it on auction or something. There is a massive interest from everyone for this crude, as visible in the rate that we get, mostly better than Brent. That is something that this year term contract we have signed with one other company for December 2024 to March 2026 for approximately 20 cargo.
This is something that we want to tell you is in term contract with another company for 12 cargo. This product of this field is something that has really stabilized. Natural gas, I told you, KG Basin and EOA both. Now we have some sales on exchange happening, IGS sales. That number, one big story which I missed is this year we roughly sell 42 SCM a day, and this year our new well gas has already reached 20% of that. Today, this month we are hovering around 20%. With every year, this is likely to go up by 10-15% more. Last year, new well gas gave us because the price of new well gas is 12% of crude. Naturally, this is much better than the 12% of crude.
Even if you take 65 and all that, it comes around $8 per MMBTU, which is much better than 6 point something that we get for APM. This additional revenue last year was around INR 700 crore. This year is likely to become, if all goes well and the prices remain stable, this at least should add to ONGC kitty for not less than roughly around INR 1,500-2,000 crore additional. This is what I wanted to share with you. Mozambique, I shared with you. Mozambique, you know more than me because this has been in the air for quite some time. We have shared with you the LNG, I think I covered everything. One more thing I want to share with you. While revenue you saw, we are very proud to report that cost side we have done very well.
Cost side is almost we have kept 2024-2025 cost almost at flat level of 2023-2024. You can appreciate that point that against the natural inflation of 4-5% and the natural increase in many things, it means management effort in containing cost is paying off. All I wanted to tell you is that should the requirement be more to focus more on cost, we will not hesitate in taking drastic steps. Big improvement in cost around two, three sides, like our logistic cost is much better now. Second, we have opened a new port because most of the new activities in Western Offshore is more closer to Gujarat. We have created another base to serve our Western Offshore, that from Pipavav. Fields which are closer to Pipavav will be served from Pipavav so that we save a lot of money in logistic cost.
The field which is closer to Mumbai will be served from Mumbai. This is one opportunity that gradually we see that a lot of saving will happen on that account because of the distance of travel of everything. We have moved a chopper also to Surat so that we serve Gujarat side, we serve from Gujarat, and this side we serve from here, which otherwise we were serving. Need has arisen just now, just one year back, because a lot of new exploration and new production is going closer to API and Fassine and satellite fields for gas, which I told you DUDP or DSF, all are in that region. Naturally, this side we expect. What I wanted to tell you is that first side we will do as much as we can. However tough it is to take that decision, we will take.
Revenue side, I told you. Future, I told you. Renewable, I told you. OPaL, I told you. MRPL, I talked about. HPCL, I have talked about. This is some of the substance of the whole story. Thank you.
Thank you. Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on your telephone keypad and wait for your turn to ask a question. If you would like to withdraw your request, you may do so by pressing star and one again. The first question comes from Prabal Singh from ICSA Securities. Please go ahead.
Good afternoon, sir. Thank you for the opportunity. I have a couple of questions. Firstly, as far as KG 98/2, you mentioned the oil production level of 33,000-34,000 going to 45,000 of oil per day.
Can I get a similar number for gas in terms of when has production officially started, what is it right now, and when do we expect to hit, even as a range, when do we expect to hit the 10 SCM target?
Once the platform that just I want to share with you, all wells are ready, all pipings are ready, all the gas flow lines are ready, the platforms for processing platform is ready, all we have to do is to install a living quarter. Living quarter, unless living quarter comes, that operation because controls are there. That work got delayed for some reason, and we are hopeful that it will get done because we're waiting for weather to, once weather improves, then it will get done. I want to give you a ballpark number. Right now, we are producing roughly 2.75 or so.
We will move to another level of 6-7 once the platform gets done because then we'll open the process and all that. This is the minimum we'll begin with, and then over some time, what time it will depend on the maturation of field and reservoir condition, we will reach our peak stated production of 10. This is what the numbers look like.
So sir, if I can try and summarize as per my understanding, current 2.8 will go to 6-7, hopefully sometime in this financial year, and then maybe peak production of maybe hit sometime next year. Assuming everything goes well. Is that a fair assumption?
Yeah, that is certain. But one thing I want to tell you, almost same number will come 5 SCM will start coming from January to March in Western Offshore from the new field for UDP.
That is January to January March. January March 2026. Yeah, exactly. But financial year 2024-2025. 2025-2026 , sorry. This will, and this project is on dot. All the rigs are in place. Exactly it has come. Drilling is going on. Four months we take till a well. After that, platform is already fabricated. We have to just mount on it. January to March will start opening the wells one after another. That 5 SCM is additional you can take in our kitty in last quarter. Got it. That is also a big number because 5 SCM is roughly approximately 1.75 million ton.
Sir, this 5 SCM, what will be the pricing of this? This will also be based on HPSD pricing or this will be new well pricing?
It is a new well pricing.
For KG Basin,
KG Basin is HPSD.
Yes, sir. This is what I was clarifying. But this 5 SCM becomes double upside will be on new well pricing, right? New well pricing, yeah. The second question, if I may, was around OPaL. A couple of things I wanted to clarify. The first was in terms of the input requirement as of today, correct me if I'm wrong. We are currently consuming a mix of naphtha and gas in a certain mix. Is that correct?
Exactly. The design is like that. It requires some naphtha and majority gas.
Is it possible to share the exact volume, sir? How much naphtha and how much gas has been consumed today? 60, 40.
Currently, we are operating 60, 40, 60% naphtha and 40% ethane.
This we expect to move almost entirely to ethane once our ethane import facilities are done. Is that what you plan to do?
Naphta and ethane.
And this proportion will remain the same?
Same, same, same. Right now, ethane we are getting from rich gas. That will get replaced by US gas.
Okay. Okay. Okay. So one more just last question on OPaL. When we say that moving away from FCG has added a bill add about INR 700-800 crore, I believe is what you said. Just wanted to understand exactly what changes. How does this benefit actually come about
So basic common, very simple. We conceived OPaL in 2006 based on the assumption that we'll export the product. So we took it in SEZ zone. But in the next 10-15 years, what happened in the country is that country's own indigenous demand grew. So today, OPaL is 92-93% indigenous. So which was paying both the duty.
When we are selling in domestic market, we were paying custom duty as well as excise. Now custom duty is gone. That money is coming to around because once it is out of SEZ notified. Now from effective April 4, 8%-9% saving is there. 8%-9% saving is there in this way. It is exactly what we told you. Depending on price, it depends on what happens in the petchem price because it is import parity and all that. Given the fact that at one point in time, it was hovering around INR 850 crore-INR 900 crore. Now, of course, the price has fallen to maybe INR 700 crore-INR 650 crore or so.
Appreciate that you can answer, sir. I'll come back in the Q5. Thank you so much. All the best. Thank you.
Participants are kindly requested to restrict with one question in the initial round. Dear participants, if you have any questions, please press star and one on your telephone keypad. The next question comes from Bhaskar Chakraborty from Jefferies. Please go ahead.
Thank you very much for the opportunity. It is very heartening to see daily crude production rising two quarters in a row. Could you share with us whether the trajectory is going to remain like this over FY 2026 and 2027, and what kind of production targets do you have on the crude side?
Month on month, of course, very difficult to say, but at least you know that we expect some number to kick in from in this FY itself by the year end from TSP initiative. Some number.
While all the numbers will come in 2026, 2027, 2027, 2028, but some number we expect to kick in in 2025, 2026 itself. For us, basically, we are saying that we are hoping at least in 2025, 2026, it should be around, we are B is around 21.5 million ton. Basically, this trend should continue. We have no reason to, because everything has stabilized now. You may be aware that surface facility in Western Offshore, we have improved as a part of our steps for not making the system lose any ton. Pipelines, maybe everything, whatever we could have done, that is on course.
Understandable. Sorry. This DSF field, is there a timeline around which that is going to come online?
2027.
It is DSF. DSF is 26 December, if I remember correctly. DSF is around 4.5 or 4 SCM.
That work is going on, but still because we have some all orderings done, everything is getting fabricated. Once we have in January-March, we have both 98 Bar 2 upside and then upside coming. After that, 98 additional production and some 2025-2026 end, this DSF block will come. We are hoping that for two-three years, at least we have planned everything for production to remain on.
Like you said, for crude, sir, will it be possible for you to share the gas number as well? Or if I can share?
Gas number, we said that from now, we have roughly we are saying that 2025-2026, we are hoping around 21. Then 2026-2027, we are hoping around 22. So 5%-6% increase each year, year on year. Standalone.
Standalone, I'm talking about. Yeah. Thank you. Thank you very much.
Thank you.
The next question comes from Mayank Maheshwari from Morgan Stanley. Please go ahead.
Yeah, Mayank.
Hello? Hello?
Yeah, yeah. We can still hear you. Yes, sir. We are able to hear you.
So first question. Sir, my question was a bit more long-term question, which you kind of commented earlier in terms of trying to kind of grow your fleet yourself and invest in there. Can you just give us a bit of a view of how you're thinking about those investments for yourself? As well as on the cost side, you did talk about a few areas of cost controls. Can you detail out there as well of what you're kind of doing incrementally for the next few years to kind of keep costs under control?
Cost side, some tailwind from market itself because we at one point in time were taking it $90,000 a day.
That is now down to $35,000 a day. You can infer your own numbers because we have around 30 such rigs in our Western Offshore. Cost side, we are very, very bullish that whatever contract we signed, this contract, what we have signed is for three years. If the same trend continues, it means our average rig cost, and rig cost is our out of INR 40,000 crore, INR 10,000 crore is our rig cost. That is a major component. Second is, as I mentioned to you, our chopper movement, our vessel movement, that is also around INR 6,000-INR 7,000 crore. We have organized that in such a way that it has traveled less because by opening a base in Gujarat. That also is supposed to give us some good money.
In fact, we have also some couple of more measures like internal measures, like better manpower deployment, better growth opportunity, and all that. Naturally, that side also we have done well. We will continue to do well. These three, four things should give us a good handle on cost. It has given half, almost achieved 50%. But 50% more we can achieve in this FY or next time. Fleet, yeah. Fleet number on it. Fleet, yeah. Fleet, I will just say that you can imagine we have roughly 50-70 vessels, which we take from market.
As a matter of strategy, our own, if you own the vessel also in some space of vessel, will be more profitable because there is a shortage of vessel in the world and we are paying, we feel that we are paying more than acquisition would be. Probably better model because some of the market is not responding to new investment in some category of vessels. That is the opportunity we have before us. That is what we are talking about.
Just one more follow-up on, I think on the point you made that 20% of your volumes on gas right now on the new gas pricing. How do you see that kind of filter through in FY 2026 and 2027 now?
This number kind of every year,
Every year you should expect 15%-20% of gas coming to new well side, new NWG. In five years' time, six years' time, everything will be NWG, new well gas.
Okay. Got it. This year as well, another 20 could come in this year and then another 20 next year.
Last, last. Yeah, exactly. Because now it is getting accelerated. You might have seen in our report, annual result, we have drilled last year 578 wells, which is highest in the history of ONGC in the last 35 years. It is primarily attributed to two things. One, new well gas, because we have drilled more and more because it is more and more attractive.
Therefore, you notice that we have arrested decline rate. Normal decline rate of any gas field is not less than 6-7% a year. We have compensated the full by drilling new wells, and it is very remunerative because prices are good. In our country, gas prices still, I'm saying that though we are getting it, but market today for a spot is still 13-14. The sky is the limit. As long as we do not lose production, we do not lose production and keep producing. Second thing we have done very well is exploratory wells. In fact, we have drilled a high number of exploratory wells, and we have drilled a high number of new wells, new gas wells. This is something that both are commercially very sound and also futuristic.
Thank you for the very, very clear explanation. Thank you.
Thank you, sir. The next question comes from Sabri Hazarika from Emkay Global. Please go ahead.
Yeah, Jasmine sir. I have two questions. First one is with respect to the policy scenario, which the government has come up with a lot of response in the last few months, new rules as well as the act which has been amended. How do you see the scenario coming out in terms of tie-ups with global technology providers and also commercial agreement in some of the frontiers, etc.?
Two areas. One area, you are aware that we have already signed with TSP, with one of the IOC for Western Offshore, which is our crown jewel asset. There, in fact, reservoir is something that we were able to extract, but we want to extract better and faster.
This is something that has happened in Western Offshore. Now, the second area which we are thinking of, or we are in the process to find out some sort of in one field particularly, that is for Cluster 3. There is a lot of gas there, but somehow it is not coming to surface. Gas not being there is not an issue. Gas is there every time we drill and we find. There we are seeking some technology support in some form of partnership or something. We are in discussion with some people, and hopefully something should happen. That area we have not so far factored in our calculation. Because so far we are only Cluster 2 and Cluster 1. Cluster 2, we are producing, and Cluster 1 will be shortly do something.
Cluster 3 is something that is something we are looking for some partnership to bring that gas to surface. There is something there, something technology challenge problem because some would know and some would not. There is something that we are looking for some partnership.
Got it, sir. Thank you so much. Just a small observation, I think you just mentioned in the opening remarks also regarding the dry well write-up. Where exactly was it? Can you expect this run rate to continue or to keep escalating?
No, what happens is that some year you get more dry wells, some you get less dry wells. It is very difficult to predict at what will be next year. This was a bad year in terms of more dry wells happened.
If we do not drill, then we do not get at least seven to eight. You would notice that out of every seven to eight wells globally, you have a discovery. If we do not drill, you do not get discovery, and then you do not accrete reserves. Oil companies, oil and gas companies, value comes out of reserve accretion. That is the issue that we are. One choice is to not drill and allow it to deteriorate. Second choice is to drill and accrete. More so for our country and our company, we need to explore more and more. It is an investment into the future, as simple as that. Like you invest in share market for long-term share market.
Got it, sir. Thank you so much, Ananda. Thank you.
Thank you, sir. The next question comes from Varatharajan from Antique Limited. Please go ahead.
Thank you for the opportunity, sir. So focus on the new investment which you referred to. In the light of all the recent plans you laid down, what would be the CapEx guidance around here and how much should be spent on each of them? What is the current thought?
Like last year, we spent CapEx, you mean E&P sector, right?
No, overall. Looking at other areas as well.
Okay. Now how would you be looking at it? Now with the services cost falling, that likely we are expecting some fall there. If whatever plans we have done, our CapEx should hover anything between INR 30,000-35,000 crore. This is something that will include all. In fact, there will be some renewables with some E&P because you are aware that we have overall we are done with.
Basically, E&P and renewable put together, we expect 30,000-35,000 max. How would other new businesses like LNG and shipping? LNG does not require CapEx. Basically, unless we buy some asset abroad or some LNG terminal we buy. Otherwise, LNG is all you have to do is do a long-term deal and that is it. There are providers. It is an OpEx kind of model where we buy and sell.
On the OVL front, you mentioned Mozambique. Any update on the other assets? Thank you.
I will request MD OVL to answer this. I have that. No, it is me. Please speak.
Good afternoon. Thank you. As Jeremy sir has replied, Mozambique, we are doing very well. We see now the progress happening on a modular concept all over the world for the equipment and other things to happen.
The beach landing for the equipment to come in and start construction has also been completed. We expect post-measure to be removed anytime now. All the vendors are in place. We are confident that by late 2027, early 2028, we should have commissioning of these LNG trains. On the other assets, our production in Russia is as normal as ever. We had increased our production in Colombia, South Sudan, and also we have added our production in Azerbaijan. We are doing well in Lower Zakum, where the production is back to above 400,000. On our operated, joint operated projects, ONGC Videsh production has increased by 9% last year. We see that there will only be upsides as we go ahead. There will be a few other business development opportunities that we are pursuing.
As in that happens and that those rectify, we'll come back and inform the market as soon as it is done.
If you have anything on Sakhalin, as well as potentially Syria.
Let's come to Syria first. Syria, we had two projects. One was AFPC Syria where Shell was the operator. We had one block, Block 24, where we were the operator. Both were producing properties. Block 24 was under development. This recent development of the sanctions being lifted in Syria, we are trying to understand all the implications of that, how the things stand on the ground, how our partners will look at it going forward. It is a good sign that if things come back to normal, it will only help us.
On Sakhalin one, let me reiterate that we got the approval of the Russian Federation in November 2023 to get 20% stake in the incorporated entity. The production has been going on as normal there. It had come down to zero and it had picked up to 180. Now it is around 150-160,000 barrels. There is an issue of our shares being issued from the registrar on our transfer of abandonment fund, which we hold here due to the banking channel restrictions. We are expecting that the requisite decrees for transferring those abandonment funds in rubles would come through soon. In parallel, as you are also hearing, we also hear that there is some discussion on the geopolitical scenario between the different stakeholders on how to resolve the Russia-Ukraine conflict. We see only upside there also if the sanctions are lifted and other things happen.
It will quickly then we can move ahead with that.
That's very useful. Thanks a lot.
Thank you, sir. The next question comes from Gagan Dixit from Elara Securities. Please go ahead.
Yeah. Thanks for taking my question. Sir, just for the deepening question, since December, I observed that you have changed the classification of the sales revenues in your release. That I mean this crude oil, this daily in the non-operated and operated daily and same for the gas, I think that you have done. But I think you have maintained the same production and sales volume as the earlier classification, I think. So it would be helpful if you could tell what is your operated daily revenue or at least the operated, I mean operated daily sales volume in production. That's just for the easy for the apples to apple comparison, actually.
Operated daily.
Dagan, actually if you see, previously we were providing the entire revenue that was basically one was for nomination. The other one was for JV, which included our KG90 Part 2 and other 100% operated JV. If you even see the data which we have sent and which is there on our website also, where we have segregated our production figure as well as sales figure in line with whatever area, wherever we go and put up any figure, whether it is a mystery site or whether it is our press release, all the data are matching over there. You can also link it also in the same document. You can refer our site also for that purpose.
That is from my side. Thanks.
Thank you, sir.
Dear participants, if you have any questions, please press star and one on your telephone keypad. Participants are kindly requested to restrict with one question in the initial round. The next question comes from Hardik Solanki from ICICI Securities. Please go ahead.
Yeah. Thanks for the opportunity. So there has been a reinstatement in the JV volumes when we look at. So may I know the reason for FY 2024? There's a reinstatement and there's a decline within FY 2025, right?
Reinstatement. Sorry. Come back, Hardik. JV production.
Reinstatement. Reinstatement of JV. Yeah. JV.
Okay. Reinstatement. Nay, nay.
So basically, if you look at the volume numbers which are being given in JV in the English file which you share, right? So over there, the JV volumes have been reinstated for the FY 2024 if you look at the oil production and the gas production both.
Yeah. Yeah.
Actually, I told you previously also what was happening when we were putting JV, the NLP production was also part of it. Even our 100% operated JVs were also part of it. Now we have put all those under the standalone. Now whenever you see our standalone production, there you will find production which includes KG90 Part 2. The non-operated JVs are only there under the head JV currently.
Basically, it is only our share, right?
yeah. It is our share only.
Okay. We reinstated this year for APEC 2024 as well.
Yes. Yes. Yes. Yeah.
Secondly, on the OVL part, even in OVL, if you look at it, there was some revenue reinstatement of the crude oil. There was a major jump in the oil revenue for OVL. Can you please throw some light on that?
Yes. I think there was a reinstatement.
We sell our Lower Zakum crude through our ONGC subsidiary. And we had taken it as an agent. They were selling the crude. But now we have considered it as a principal and booked it to the main revenue part.
Okay. Sure, sir. That's helpful. One more thing. From Vidya, we have also considered the OPaL, right?
Yes. Yes. Okay. Yeah. Sure.
Thanks for that. That's very helpful. Thank you.
Thank you, sir. That would be the last question. Now I hand over the floor to Sri Vivek Tongaonkar for closing comments. Yeah. Thank you all. Thank you all for being present in our analyst call. And on behalf of the CSC, on behalf of PM&O, I would like to wish all of you all the best. And thank you very much. Thank you. Thank you.
Thank you, sir. Ladies and gentlemen, this concludes your conference for today.
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