Oil and Natural Gas Corporation Limited (ONGC) Q3 FY2026 Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. I'm Arti, moderator for the conference call. Welcome to ONGC's earnings conference call for quarter ended 31st December 2025. We have this today it from Vivek Tongaonkar, Director of Finance; ONGC and team who will interact with investors and analysts to discuss Q3 earnings. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand over the floor to Mr. Shri Vivek Tongaonkar for his opening remarks.

Yes. Good morning. Good morning, ladies and gentlemen. I'm Vivek Tongaonkar, Director of Finance, ONGC. I welcome you all to this ONGC earnings call for Q3 financial year '26. Thank you for joining us. I'm accompanied today by my colleagues from ONGC, Mr. Satish Kumar Dwivedi, he's Chief of Joint Venture and Business Development; Mr. Ajay Kumar Singh, he is our President, Planning and Transformation; Mr. Prakash Joshi from Investor Relations Sales; and Mr. Shekhar Mohanty from our corporate accounts. We also have our colleagues from ONGC Videsh Limited, Mr. Bhishmadev Mandal and Mr. Basant Pasari. ONGC has compiled its financial results for quarter end and months ended 31st December 2025. The results were released on the 12th of February 2026 through a press note and shared with the stock exchanges and analysts. I'll now present the highlights of our performance. ONGC stand-alone crude oil production continues to show growth momentum. During Q3 financial year '26, production stood at 4.592 million metric tons. While the cumulative output for 9 months financial year '26 beat 13.907 million metric tons. This reflects a modest increase of 0.35% over the 9-month financial year '25. Standalone natural gas production in Q3 financial year '26 registered an upward trend on a year-on-year basis. This highlights from the key operations resilience. This improvement comes alongside the company addressing the earlier trend of degrowth with cumulative outlook for 9 months financial year '26 remaining steady, thereby reinforcing stability in the gas portfolio. During this 9-month period of financial year '26, revenue from new well gas crossed INR 5,000 crores. This delivered an additional INR 944 crores compared to the APM gas price, reflecting the premium eligibility of new well gas. Notably, now the new well gas contributes over 18% of ONGC's total gas revenue, underscoring its growing significance in the company's portfolio. ONGC is actively working towards boosting the performance from new gas wells. ONGC Board has declared a second interim dividend of 125%, amounting to INR 6.25 per equity share of INR 5 face value. This translates into a payout of INR 7,863 crores on top of the first interim dividend of INR 6 per share, that is 120%, announced in November 2025. With these 2 payouts, ONGC has achieved a historic milestone. This is its highest ever cumulative interim dividend of INR 15,411 crores in a single financial year, underscoring our commitment to shareholder value. With regard to KG 98/2, as you are aware, so far, all the 26 wells have been drilled. I'm happy to share that as per the latest update, SURF, that is subsea umbilicals, risers and flowlines and the subsea production system, SPS, these works are nearing completion. The central processing platform together with the bridge connected living quarters and utility platforms have been fully installed. In January 2026, the main support frame, the living quarter module was successfully pinned down on the LQUP jacket, followed by the installation of the living quarter unit, helibase and associated structure in February 2026. This series of completions represents a decisive push to a forward, reinforcing our confidence in unlocking the full potential of this strategic asset. Coming to Mumbai High field. TSP 1 is already showing encouraging production gains. Additionally, Daman upside project, Daman upside development project in Western Offshore is also on track to be monetized soon with peak gas output expected at 4 to 5 MMSCMD. ONGC also has a robust pipeline of over 20 major development, redevelopment and infrastructure revamp projects under execution with a total combined CapEx of about INR 77,000 crores. These projects are designed to augment production, sharpen operational efficiency, which will ensure sustained growth. Importantly, 4 key infrastructure and design projects are slated for near-term completion, recognizing the volatility in global crude prices and the need to sustain profitability in a competitive environment, ONGC has already adopted a structured enterprise-wide approach to efficiency and value creation. A dedicated cost council has identified multiple areas where structural improvements can deliver long-term benefits. Key focus areas where progress is there include inventory rationalization, fuel efficiency, logistics optimization, manpower restructuring, and integration of renewable energy into operations. We now come to financials. At the consolidated level, net profit grew by 23% in both on a quarterly and 9-month basis, it was INR 11,946 crores in Q3 financial year '26 up from INR 9,747 crores in increased financial year '25. For the 9 months, financial year '26, the figure was INR 36,115 crores compared to INR 29,364 crores for the previous year, 9 months. This increase in profit can mainly be attributed to our subsidiaries, HPCL and MRPL. And profit for Q3 financial year '26 was INR 8,372 crores, up 1.6% compared to INR 8,240 crores in Q3 financial year '25. For the 9 months financial year '26 stand-alone net profit was at INR 26,244 crores against INR 29,162 crores in the previous -- in the same period previous year. The increase in net profit during Q3 financial year '26 is on account of contribution from gas revenue, higher other income and lower statutory revenue. One point to note is that in spite of the decline in crude oil prices, ONGC net profit at both stand-alone and consol level has been upwards. Sales revenue in Q3 FY '26 declined primarily due to INR 2,145 crore drop in crude oil revenue and an INR 710 crore reduction in value-added products, which was partly offset by an increase of INR 505 crores in natural gas revenue compared to the same quarter last year. Crude oil prices have declined to USD 61.63 per barrel in Q3 financial '26 from USD 72.57 per barrel in Q3 financial year '25, which adversely impacted our revenue. Crude oil and value-added products declined due to lower price realization, which was offset by an increase in natural gas quantity and price, resulting in a net decrease. The rise in gas revenue was driven by incremental revenue of INR 294 crores from new well gas sales during the Q3 financial year '26 and incremental revenue of INR 944 crores for the 9-month period. During Q3 financial year '26 statutory levies stood at INR 5,975 crores down from INR 6,630 crores in Q3 financial year '25, which was a reduction of INR 655 crores, that is 9.9%. This decline is primarily attributable to lower royalty and sales driven by the decrease in average crude oil 2025. Operating expenditure in the third quarter of financial year '26 stood at INR 7,151 crores compared to INR 6,563 crores in the same quarter last year, which was an increase of 9%. This rise is primarily attributable to our Dahej plant where LNG consumption grew significantly from 7.68 million MMBtu in Q3 financial year '25 to 11.31 million MMBtu in Q3 financial year '26. Also, there has been an increase in GST on oil services from 12% to 18%, and we have worked diligently to keep our operational costs flat through disciplined management even in this challenging fiscal environment. There is a decrease of INR 168 crores, that is 2.5% in DD&I cost which was INR 6,778 crores in Q3 financial year '25 to INR 6,610 crores in Q3 financial year '26. This is mainly on account of impairment reversal of INR 224 crores during the quarter compared to a small impairment loss of INR 4 million in Q3 '25. With this strong operational execution, strategic progress and resilient financial performance, ONGC continues to reinforce its contribution in India's energy sector by working towards production growth. With this, I conclude my briefing on the third quarter results for financial year '25, '26. We are now happy to take questions and answer them. Thank you.

[Operator Instructions] First question comes from Probal Sen from ICICI Securities.

I hope I'm audible?

Yes.

Sir, a couple of questions. Firstly on the KG 98/2, thank you for updating us on the progress of the associated infrastructure. But just wanted to understand now how are we looking at FY '27 in terms of gas production ramp up? Can you share some numbers of where we expect production to be maybe at the exit of FY '27 or over the year, what kind of average output we expect now? That was my first question.

Yes, your question is for KG 98/2 only?

Yes, as of now, specifically. Yes.

So for KG 98/, as I have mentioned, we have already installed all the outselling modules that were pending and which had held up the production of gas until now, all those works have -- installation of those modules have completed. Currently, we are in the process of cleaning them up and the commissioning, et cetera, would take place. Subsequent to that, the wealth would be hooked up to these platforms, and they would start to flow. So we expect that the gas flow from these wells should start from the next quarter, which is from April to June onwards. And the gas would be ramped up, coming towards the end of financial year '27, you would expect that this gas quantum should increase to 5 to 6 MMSCMD.

Got it. And sir, the peak guidance continues to remain at around 7% to 8% and will happen sometime in...

Yes, it continues to remain in that range.

Okay. And oil production, sir, is already at around the level that we -- I mean it is at around 25,000 to 30,000 sir, as of now?

It is around those levels. Once all these works are completed, we do expect that the oil production also should stabilize and we should have certain additional production coming back.

And the peak, there was guided to around 40,000 barrels. Is that correct?

Yes, 35 to 40, we had mentioned.

Okay. All right. The second question was with respect to sir, OPaL. Can you just share some numbers in terms of how OPaL's performance has been in this quarter? And any guidance that you can share for...

So for OPaL, it has now stabilized. Operations are going on well. We have been performing -- we have been operating at more than 90% of that capacity. They have also -- they have -- the average capacity utilization in Q3 was -- so 9 months was 92%. Our revenue from operations was INR 11,000-plus crore.

Any EBITDA numbers can be shared?

EBITDA was INR 353 crores for the 9-month period.

The INR 11,000 crores was also for the 9-month period, right?

Yes.

So after already like...

Probal, just 1 correction. INR 11,000 crores was for previous year. For this year, it was INR 9,790 crores.

INR 9,790 crores was the revenue and INR 350 crore odd was the EBITDA for the 9-month period, right, sir?

Yes. Yes. Yes, right.

So just wanted to -- just a small follow-up here. After all the cleanup that has happened in terms of the debt and conversion to execution, what is the net debt now that is still sitting on OPaL's book as of now?

It is around INR 23,000 crores, INR 24,000 crores.

So is there any other measures that we are looking to do, sir? Or now we expect that the profitability is good enough to service the interest cost, which again probably would still be a few around INR 1,000 core, INR 1,200-odd crores on the books.

So as far as the profitability is concerned, we do expect that the profitability should increase because the capacity utilization should also move up from now onwards. Now that everything has been stabilized. Even the petrochemical prices have started to move up and therefore, in the future for '27, we expect that the performance should be much -- should be more positive than this previous year -- than this current year.

So we don't expect to have to infuse any more capital into this as of now, sir, in the near term?

No, no, no. We are not expecting anything on that front.

One last housekeeping question. Sir, any CapEx guidance and production guidance for FY '27 overall?

Broadly, ONGC will continue to have that CapEx of INR 32,000 crores to INR 33,000 crores, CapEx would remain on exploration as such -- exploration production as such. And for production also, we'll just give you those figures.

Sure. Production for?

Yes, next year, we will be producing -- we are targeting to produce total oil and gas sales to 42.5 million tonnes.

Sorry, sir, I could not get it, is that 42.5 million tonnes?

42.5 million. Oil and oil equivalents, including oil and gas, put together, 42.5 million tonnes.

For FY '27. This is a stand-alone numbers, right, or including JV?

Standalone production.

The next question comes from Varatharajan Sivasankaran from Antique Limited.

Sir, if you can give some idea about the discoveries during the 9 months and any reserve accretion which you can actually put a number to?

So reserve accretion figures, you'll be able to give on a yearly basis only. We normally do that on a yearly basis. We have had discoveries during this 9-month period. If you want the total number of discoveries, we'll give that separately, Prakash would be able to give it to you separately. We have been reporting it on a basis as such.

And any update on the OEM, especially Venezuela, Sakhalin and Mozambique?

So on Mozambique, the force majeure has been lifted. Already work has started on ground over there. Work has started full-fledged over there on ground. So it should -- it is on track to start production from '28 onwards. LNG production from '28 onwards. Venezuela, we have...

Any idea with the CapEx, sir?

CapEx is same. There is no further increase on the CapEx mark.

On Venezuela?

On Venezuela, we understand that the U.S. government is progressively lifting sanctions or is in the progress of liberalizing the trade from Venezuela and maybe allow other countries also, companies also to start operations over there. We are awaiting on those instructions as such, but the movement is in the positive direction. And we are hopeful that we should be in a position to restart our operations once the on-ground and the U.S. sanctions get lifted totally. Sakhalin...

What is the number here, sir, for Venezuela?

Money due to $550 million. And that is a dividend that -- for Sakhalin, we continue to move ahead, along with the Russian government also and with the help of the Russian and the Indian government, we are moving ahead. We have been advised that our share facility has been secured in that company. So -- which is a very positive step as far as ONGC OVL are concerned, and we are hopeful that during this coming year, we should be in a position to ask share of our held up dividends, et cetera. So operations and...

As far as then...

Operations continue to happen for there in Sakhalin, so production is happening over there. So that is not an issue for -- as far as the production part -- operational part is concerned.

And there is no change in the shareholder part, [indiscernible]?

Yes. There is no change. It would continue to be by 50% off.

One last thing about the production targets which you gave, if you can give us a breakup of oil and gas separately as well and if possibly FY '28 onwards.

Yes, the oil we are planning to produce hereabout 21 million tonnes. And gas is 21.5 million tonnes. This is a breakup between oil and gas. Total put together 45 million tonnes. And we plan to increase the production more than what we are planning for '26, '27. We are positive on that, and we'll [indiscernible].

The next question comes from Mayank Maheshwari from Morgan Stanley.

On the production side, can you just give a bit of details around what's going on for the rest of the world apart from JV on production ramp as well as I think we are still seeing a consistent challenges, especially on the JV side on gas from a production perspective as well. So what's going on there as well, if you can give us a brief idea of what are you expecting for fiscal '27 around production?

Yes, in the MH field, already, we have engaged the TSP, the technical support service provider, BP and they already started giving the advice and we have planned a number of wells to be drilled as identified jointly by ONGC and BP and we are seeing the positive output from that area. So that is giving stability to our ONGC production. Similarly for Neelam & Heera and B&S asset, oil production are more or less steady is there. So it is giving desired production what we envisage. And similarly for onshore Ankleshwar, Ahmedabad and Mehsana asset, there we are drilling a number of wells that's targeted and there also production is stabilized. So as such sure, we are very confident of achieving the target set for this year and well as for next year '26, '27.

So Mayank, additionally, as DUDP project, which is Daman upside project is on track, we have already confident that in the next quarter, gas should start flowing from this -- sorry, from March itself, this would start flowing. Gas would start flowing from that project. DSF project comes up for the next year last quarter. So that is also on track, so these are the 2 projects which are going on well and will provide upside, immediate upside apart from the KG basin new gas, which is about to come up.

On BP technical support that you've got, can you give us a bit more details around how much have you been able to kind of arrest the decline? What is going on there? And what are the positive outcomes that we're seeing around that?

Yes. So the decline has been -- if I will stick my neck out and say that it has been arrested because it is too early days. But yes, we have seen an uptick coming up in the production that we are getting from MH field where we have TSP or BP working with us is higher than the -- it is about more than 100% that we had -- what we had and we faced. So that production uptick has started to happen, and we expect that this should improve over the coming quarters. So BP's contribution has helped us increase oil and gas from both MH -- both from the MH field and it has been -- MH field has given us about nearly 7% higher, MH field only. I'm not talking about western offshore, 7% higher than what we were expecting in this Q3 quarter than what we were expecting earlier on. So it has been a positive play as far as we are concerned.

Sir, is it fair to say that MH field where you had 8% to 10% decline rate, so now only 2%, 3%, is that the right thinking?

It is becoming positive.

By the quarter end, I will be in a better position to give you the figures, percentage-wise and all that. But it is already [indiscernible].

Got it. And sir, the second question was related to costs. You emphasized on how you're trying to control cost. And then I think previously which you have talked about that as well. So in terms of targets that you've given earlier on cost controls, how much of that have you been able to kind of get to and what you think will get achieve in fiscal '27?

So those targets have not been met because the year is not yet closed or the period that we are talking about has not yet completed. But we are on track to do that. We have reduced our inventory, we have also taken structural steps to reduce costs in the long run. We have also started off with Pipavav Port operations, which reduces our logistics cost as far as the deployments are concerned for the northern part of Mumbai High field. We have also optimized on the diesel consumption and actions have been taken over there. We have been taking action on reduction in our costs as far as manpower security is concerned. So those things have already started to translate into savings, which would be reflected in the annual figures as such. We are also transitioning to renewable energy, power, our own generated power or green power that we will be using, which will reduce our power bill also. So all these are on track, and results should get reflected in this annual -- or this last quarter onwards, further on. And if you see, in spite of the crude prices going down very substantially, we have been able to report positive figures, both for the third quarter as well as for the 9-month period.

Next question comes from Sabri Hazarika from Emkay Capital.

So I have a few questions. First one is, there has been some decline on the share of U.S. gas from 21% to 18% as per your press release. So is it -- I mean, can you explain -- give more color on that? I mean what you mentioned.

Just 1 sec.

Sabri, just hold on. Your point was that it has gone down from 21% to 18%?

Yes. I mean what you mentioned in the press release sir.

Yes, we have mentioned 18% [indiscernible].

So 18% is Sabri on the basis of 9-month production, what it is vis-a-vis.

18% and 21% is on revenue basis, not quantity basis. So revenue [Foreign Language]

He's talking about quantity. So Sabri, what I was referring was that 21% was on the 6 monthly basis. Now if you consider that 9-month production on that basis, it is 18%.

Okay. And it is also on revenue, I've seen this. So it's fine.

Yes. It's on revenue.

Yes. Second question is on this I think the Director production in the India Energy Week mentioned some figure, 4,000 barrels per day of incremental production from this BP, TSP. Could you clarify this? It is too early to actually quantify.

So as I mentioned earlier to an earlier reply that we have already seen positive results for MH Field because of the TSP. The quantification -- final quantification of which we will be in a position to give you at the end of this year or during the annual figures as such. But yes, there has been a positive development in Mumbai High Field, both for oil as well as gas.

Got it, sir. Third small question, what was the 9 months CapEx spend on CapEx for the company?

So we have spent around INR 24,000 crores.

INR 24,400 crores.

Right, sir. And sir, last question is, I think it's a regulatory question. So we have seen that in the ORDA amendment, a lot has been stated about fiscal stability and all, but the government basically raised the GST in the budget sharply and there is no input tax credit also. So is there any relief that the company can seek based on the ORDA amendment or you have to accept it for now?

As far as this GST increase is concerned, we have looked -- we are -- we don't think it would be possible for us to get that any relief under that ORD Act as such because GST Act is particularly for all the goods. It's not necessarily for only oil and gas sector.

Okay. Anything related to MoPNG could be like that relief could be sought, but this is coming from financial.

There would be no price increases and all those things, what was happening earlier on, on Assam. Those things would not happen. There would be no ad hoc subsidy or windfall tax or something like that.

The next question comes from Gagan Dixit from Elara Securities.

I had a question on this Daman Upside Development Project. So what is the expected gas contribution in FY '27?

4-5 MMSCMD.

Okay. So full number, that's we're expecting FY '27. Okay, sir.

Because all our project is on schedule. Drilling also is already being done, already some wells would get hooked up immediately. So we are -- from March itself, we will have gas coming up in phases.

Okay, sir. And my second question is, you mentioned 4 major infrastructure projects that's nearing completion. So which are these? And what is the incremental production that they unlock over the time, sir?

So the projects which were mentioned, basically, those were mainly -- one was Daman, what we were talking about, which already sir has spoken. The rest of the projects were infrastructure projects, what we are referring to.

Okay, okay. Yeah, that, that's from me.

And Daman, actually, if you see, it's already completed around 94%.

Next question comes from Vivekanand S from Ambit Capital.

So my first question is on the investments outside of E&P. So you had invested in Ayana renewables and you had highlighted targets for 2030 in terms of the gigawattage output that you expect from renewables. Can you give us an update on that and the CapEx commitment for FY '27, '28 each year? I believe your CapEx guidance is only for stand-alone, if you can help us with this number? That's question one. I'll ask the next one after this.

For Ayana renewables, it continues to be on track for -- it is producing electricity from wind farm and solar projects, which are there already. The projects under execution are continue to be executed. They should be completed within this coming financial year. As far as the additions to all the targets that we had been given for 2030, yes, those stand at 10 gigawatt stands for 2030. And towards that end, we are already looking at projects which we could acquire. There is one project which we are setting up 300 megawatt project, solar project that we would be setting up as a greenfield on our own ONGC as of now. So our targets remain in place, and we continue to be on -- more or less on schedule for this thing. Would you like to add anything?

Okay. It's okay. Any specific question we can try.

That's it, Vivek. Anything further you want?

So is there any CapEx guidance you want to provide for FY '27 and '28 as far as renewable investment?

So these targets would be -- for this renewable, it would be more of -- whenever we get opportunity, we would be making those acquisitions or taking over those projects. So we have not kept a target, but we are open to -- for up to 10 gigawatts, we are -- we would be working on that. So CapEx is not a problem for us.

Okay. The next question is on the petrochemical investment plans. So you had been in talks to set up a greenfield refinery in Prayagraj in UP. And more recently, I think Chairman sir also commented about the petrochemical story in the India Energy Week. Any concrete plans or any thoughts that you want to share here with respect to the negotiations for the Prayagraj land parcel, the investment outlay that you are planning and any time lines?

We are already working on the various projects we are contemplating and working with the partners. But still, as of now, no concrete plan has been declared. As regards to Prayagraj, there is a land parcel available with BPCL. So we are in the talks with BPCL and with the UP government. The plans are being worked out. Techno-economics are being worked out, but no firm plan as of now.

[Operator Instructions] Next question comes from Saket Kapoor, from Kapoor & Co.

Yes. Sir, the question is pertaining to the CapEx part from the PSU when we are looking at your ancillary companies, suppose a pipe manufacturer, the seamless pipes or the drill pipe or the rig prices, everywhere we have seen softness. And also when we look at our historical data, there are quarters post the December when there is -- there are a lot of supply demand being generated from the existing fields in terms of the pipe orders being tendered. So that has not been the case for the current year. So can you give us some outlook on your spending or -- on the pipes for the rigs, for the wells which are already in output? Just to improve the output there?

Yes. Management.

Yes. So our CapEx program is on track. As we have already mentioned, we continue to have CapEx of INR 32,000-odd crores for our company. And as far as our ordering, et cetera, is concerned, it is on track for meeting our CapEx as such. So we are not in a position to comment upon what about the other companies are concerned.

Right, sir. But when we hear the output part, the oil output from the country and all are on declining trend also. Correct me there if my statement is incorrect. So going forward, what should be the output guidance from the management in terms of the existing oil fields and also in -- which are in the exploratory stage?

So as we have already mentioned earlier on, 42.5 million metric tonne is the oil and gas equivalent that we are targeting for this coming financial year.

The next question comes from Vikash Jain from CLSA India.

Sir, just a little bit more details on each of these production projects and where they would take us if we try and visualize quarter-by-quarter or half by half. So KG 98/2, you said production should start flowing in a couple of months, starting April to June that quarter. And the ramp-up -- the incremental 5 to 6, I think we are already at about 2 MMSCMD. So the incremental 5 to 6 will take 3 to 4 quarters. Is that what you said?

Yes. I said from April till April, we will be doing this ramp-up, et cetera. And subsequently, it should start coming up to 3 to 5 MMSCMD, additional [Foreign Language].

Okay. Additional [Foreign Language] fourth quarter.

Yes. Yes. Yes.

Okay. Okay. And Daman, you said the start will happen in March and it will ramp up to the 4 to 5 very quickly. I mean, within a couple of months itself, is that the likelihood over there?

In the quarter, it should have, July quarter, it should definitely be there.

Okay. So all in all, put together, say, sometime by between December and March -- December '26 and March '27, -- so say, by July quarter, you will have an extra 4, 5 from Daman, 1, 2 from about 1 or 2 from KGD6 by July -- by June, July. And then by -- somewhere by the fourth quarter, we could have a total of incremental 10 MMSCMD from these projects, right?

Yes. Because by that time, Vikash ji, our TSP would be also there. So more positive things, we can.

For your understanding, Vikash is broadly in line.

Yes. And sir, MH Field coming back, I just wanted to -- maybe I was thinking very quantitatively. When you people were saying that it has turned positive to the question that what is the decline rate? Is it that you've been able to arrest the decline as compared to the earlier rate of over 7%, 8% decline of the MH Field? Is that what you mean by it has turned positive? Or it is just that the decline rate has reduced? Because maybe I was thinking too quantitatively about positive or not?

No, positive is positive. In the sense, it is the decline has been arrested. There has been an addition to that. But figures we'll give you at the end of the year.

Okay. And sir, just to understand, so this field was declining at over left to itself about 6%, 7% every year or more, was that the case?

So broadly, what happens is you estimate a decline because you can't project how much the field will decline over a 10-year period. So broadly, it was being said that this is declining from 6% to 8% annual basis. That is what we were expecting this field to decline. And accordingly, we had looked at -- looked for getting measures to arrest that decline. There was a profile which was agreed to between BP and ONGC that this would be the base profile if we do nothing case sort of -- -- this is how the production would decline. And now we are getting production. So BP is actually to give us production beyond that decline. What they have committed is 10 million metric tonnes over a period of 10 years.

Okay. So that -- you can say that the early gains have already started because versus your projected production levels, we are doing better?

Yes. So if you remember, I have been saying for the last 2 quarters that we have -- we are expecting BP or the TSP to give us positive results from the fourth quarter of this financial year, which we are already seeing it. And for the year-end, I think we should be in a position to give you those figures also.

Sure. And New Well Gas, not talking about 9 months, not talking about 6 months, but if I were to look at the exit rate right now and maybe whenever the next recognition of incremental production is, say, April or somewhere, that New Well Gas would be what share of output, say, from around April as per your best guess?

So we would expect that every year or every quarter, this percentage of New Well Gas should increase because what happens is for the existing fields, we would be working over the existing wells. If they stop, we will work over them or we will be doing certain other jobs, which will increase the production of the existing wells and the field. So that becomes the New Well Gas. What we are expecting is that we should have an increase in 2027. Now we are at 18%. We should increase up to 24% or something like that.

24% from April onwards can expect.

New Well Gas.

Yes. New Well Gas.

No, for the year.

Okay, for the year. Okay.

It will not.

Over the next 3, 4 quarters, you said.

Probably, this is an 18%.

Sure, sir. Understood. And sir, just to get a confirmation on the pricing, KG-98/2 will, of course, be HPHT and Daman will be what price?

NWG.

NWG pricing. Yeah. Okay.

Our next question comes from Kirtan Mehta from Baroda BNP Paribas.

In our target for FY '27, it's 42.5 million tonnes. What are we assuming about the BP at this point of time? Is it a continuing decline or a 0 decline for FY '27?

Sorry, come back I did not get the question.

I was asking in terms of the Mumbai High production field, what is our assumption for FY '27? When we have shared in our target, 42.5 million tonnes.

So for 42.5 million tonnes, we have not considered any contribution from this TSP project.

That would be an upside...

We are setting the target.

That is upside, upside.

Yes, it will be an upside.

And in terms of the BP, TSP, would you be also able to share the number of wells that we plan to drill and what would be the investment during FY '27?

No. As of now, no, because that is still work in progress, what we are doing. And once that gets finalized, then only we will be in a position to communicate about the details about the same, which we should most likely maybe in the annual results, we would be able to tell you. That's why I said the figures also, we would be able to tell you around that.

Sure. And in terms of the value creation that we are approaching, would we be able to give more color on what kind of numbers we can achieve during FY '27?

For the production figures, are you asking me?

Efficiency and value creation bucket that we have spoken about.

On the cost control?

Cost control...

So we are targeting that we should be reducing our costs by around INR 1,000 crores by the various measures that we have undertaken now.

This is additional INR 1,000 crore target over and above the measures that has been undertaken during FY '26. Is that right image?

It is a continuation of those measures that we have taken in... [Foreign Language]

Sure, sir.

The next question comes from Ramesh, an individual investor.

So if you were to look at your New Well Gas, I understand that it's going up from 18% to 24%, right, in terms of the share of overall gas production. So you will get the incremental upside in the gas price on the addition of 6% on a weighted average basis, right, on your New Well Gas. Is that the right way to understand that?

There would be an increase in the percentage of this New Well Gas as a percentage of the total quantum of gas produced. Another thing from the nomination fields. Another thing is that the price that we get would be 20% higher than the price that is given to the APM gas.

Yes. On the pricing, I understand. So basically, in terms of the growth for next year, you are expecting the share of your New Well Gas to go up from 18% to 24%. On the additional 6%, you will get the market-based price based on the 20% higher price, right? That's the way to look at that, right?

The market-based price, we will be getting up to that 12% of the slope, Indian crude plus.

Okay. And if you look at beyond '27, is there any further increase possible in the share of the New Well Gas if you will have to?

Yes. Normally, what we are expecting that every year, we should have additional incremental gas, New Well Gas coming up from this nomination fields. Even if we maintain the production, we will have an uptick of around 7% or so. And in addition to that, let me tell you, currently, it is at $6.75 from April 1, that ceiling will also go up by $0.25, which will be at $7.

Okay. Okay. The second thought is, if you look at your segment numbers, the petrochemical loss has come down. So do you have any line of sight in terms of when you would be able to report a positive number for the segment results from the Petrochemical segment, given the kind of efforts you have put in to restructure the feedstock and improve the product mix. When do you see that happen?

With this petrochemical prices moving up and with the other costs under control, we are quite hopeful that we'll continue to be EBITDA positive for the full year next year. And hopefully, we should be turning the corner also.

So would that be visible from the first quarter itself or more likely from second half?

So EBITDA positive, we are already EBITDA positive currently also. So we will continue to do that. Whether we turn the corner in the next quarter or the next year or subsequent, that would depend partly also on the petrochemical prices such.

Okay. So one last thought, if I might squeeze in. On the ethane sourcing arrangement you have with the ethane ship and the agreement with Petronet LNG. So I know you can't possibly get into the commercial terms, but in terms of the ethane sourcing, are you in a position to confidently have a line of sight in terms of the quantity you want? And what would be the pricing mechanism for that? Would you import it on a CIF basis because you have the ship or how would you go about fixing the commercial terms and because that would have an impact on the economics of using ethane for your petrochemical production. So broadly, in terms of the availability of the required quantities, what proportion of the naphtha you can replace? And what would be the broad approach to the pricing?

Let me come back to you. See, the OPaL plant uses basically 2 feedstocks, 60% naphtha, 40% ethane. So we are trying to engage this 40% ethane beyond 2028. Terminal part has been fixed. Fixed shipping arrangement has been made. And we are in the process of fixing up the sourcing issue. So the quantity would be of the order of 600 KTPA. Pricing and all, we will declare at a later date.

The next, follow-up question comes from Saket Kapoor, from Kapoor & Co.

Sir, just I'm referring to 2 new discoveries for Suryamani and Vajramani. So where are we, sir, in terms of the exploration activities? And also for the Mahanadi Basin, sir, I think so some discoveries were made in the MN-DWHP-2018 block. And secondly, we had some tie-ups with [Foreign Language].

[Foreign Language]. Coming to your first question on Suryamani and Vajramani we'll have....

Sir, regarding this Suryamani and Vajramani, the oil potential we have analyzed. And being a marginal field, we are evaluating various options, including a new way of installing the platforms, which becomes techno-commercial viable.

[Foreign Language]

It is in the West Coast. Both are in the West Coast. So the Suryamani and Vajramani are both in the Western offshore part of our fields. Regarding Mahanadi Basin, what was your question that what is the discovery as such?

Yes, sir, discovery as such, and when are we trying to explore [Foreign Language]?

So discovery or the development part of it will take some time. We are currently doing that development plans are being made up. Once those are finalized, we would be in a position to indicate how much is the cost or the CapEx that we will be incurring for these discoveries to be developed fully. These are still in the preliminary stage. And maybe in the next year, we would be in a position to have our CapEx plans firmed up. We have to drill some appraisal wells, et cetera. So all those things would be finalized and then accordingly, we'll prepare the development plans.

In my previous question also, I have inquired about what kind of order tendering we have done in terms of the -- especially the seamless Pipe segment. If you can give me comparable numbers for the current financial year with the previous year? And for going ahead, what have we outlined in terms of CapEx that will be attributable to this category? I think so these are consumables for us, if you could just abreast on the same.

As of now, I would not be in a position to give you those figures offhand as such because normally, an analyst call, we'll give you all details about what are the major plans, et cetera. So we restrict -- we don't have those details with us. We'll have to get it all those things.

The next question comes from Vivekanand S from Ambit Capital.

So as far as OVL is concerned, can you give us an update on the dividends that you expect from there? And any status on the money that you should have by now repatriated to India. What is the status of that given the geopolitical tensions, I believe there was some money that was stuck there. That is question one. And the second one, if you could repeat the update on the New Well Gas revenue contribution. I think Sabri had asked earlier that you had mentioned in the 1H results that the revenue contribution was 21%. But in 9 months, the revenue contribution declined to 18%, suggesting meaningful fall in New Well Gas revenue contribution. Yes, those are my two questions.

Vivekanand ji, we do have Mr. Rajarshi Gupta, who is MD of ONGC Videsh, so he would respond to your query.

The question was asked earlier. And as we said that our interest in Sakhalin-1 project is secured. And we are in the project, the production and operations are normal. Our -- some -- the standard dividends of Vankor from the other field which was there, that has also been utilized for our internal resources. So we are okay in that part of the world, and it's now more or less normal. Yes, the geopolitical tensions are going on, but we do hope that there will be a resolution sooner than later.

Regarding NWG, just give me a minute. INR 528 crores out of...

What was mentioned earlier was, as was already clarified, I think that, it was on the H1 -- 21% was on the H1 figure. And this 18% is on the 9-month figure. So for the H1, we had about INR 3,352 crores to be precise as the well gas revenue upon a total revenue of INR 15,000-odd crores, which comes out to around 20%, 21%. Whereas in this case, in the 9 months, it is INR 5,000-plus crores of New Well Gas upon a gas sales of INR 23,000-odd, INR 24,000-odd, which comes out to 18%. So there has been incremental addition to the New Well Gas, but as a percentage of the total gas revenue, it has -- the percentage has come down. It is more of statistics than, but it moves upwards.

Right sir. Why has it come down?

Difference in the gas price. U.S. gas price and the quantum of other gas, et cetera.

Vivekanand ji, we will just put out that NWG, gas sales figure also, so that should help you out to work out. Okay?

Yes, yes. I think that would be more helpful because I think might be related to HPHT contribution maybe.

Yes, that's also there. It is possible. But yes, it would be great if you can take that number out. That is how it is.

The next question comes from Somaiah V. from Avendus Spark.

Sir, the question is on the production outlook for FY '27, the growth that we are building on a Y-o-Y basis. So if you could just help us with, one, what is the natural decline rate that gets built in? Two, in terms of projects, Daman and KG Basin are the 2 major ones that we are factoring in for growth?

Yes, we've already mentioned this thing. I'll repeat it. For KG, we have already mentioned that all our modules have been installed. And now we are doing the hookup commissioning, et cetera, will be carried out. And from this next year onwards, we should have the gas flow coming up, and we would have 4 to 5 MMSCMD from KG Basin in the next year. For Daman Upside also, we have mentioned that our wells have been drilled are in the process of drilling. We are in process of doing the jacket and well platform installation, et cetera. We are expecting first gas to come in from this March itself. And for the next year, we would have, again, another 4 to 5 MMSCMD of gas coming up from Daman Upside Project as such. As far as the targets are concerned, whenever we give the targets, those -- we do factor in whatever are the likely reductions or expected declines for those fields and the measures that we are going to take. So it is not that we would have just a reduction coming up in all the fields. There would also be actions that we would have taken drilling of wells, we would have done IORs, et cetera, which would take care of the targets that are to be achieved.

Sir, just wanted to understand what would be at the blended portfolio level, what would be the decline rate?

So broadly, we consider -- you can consider that this would be around -- depending upon the field, this can be around 6% to 7% or 8% declines on a normal basis, but fields do behave differently. If you see other fields at other places also, declines have been very sharp. It depends upon the field. It depends upon how much you are extracting. It depends upon what processes you are using.

Vintage of the field.

Vintage of the field, et cetera. So many factors which contribute to the decline in production for fields as such. Broadly, we have been considering it to between 6% to 8%.

Got it, sir. Sir, the question on the projects was, are these 2 the only major projects that we are considering in FY '27? Or is there a few more projects that gets built into this FY '27 outlook?

So DSF-II project is coming up, which is again a gas in the West Coast, and we are expecting it to come on stream in the last quarter of the next year.

There are no further questions. Now I hand over the floor to Shri Vivek Tongaonkar for closing comments.

Yes. Thank you very much, Madhuri. Thank you all participants for being on the call with us and we do hope that we would have replied to your questions. Any further details, you can be in touch with our IRC over here. I would just like to mention that as we have been saying earlier in different various calls that TSP, we are expecting positive results or we would be getting certain results in the last quarter of financial year '26. I've already mentioned we are also getting positive results, and we would be in a position to quantify that at the end of this year. Secondly, our KG Basin 98/2 project, which had been delayed because of certain reasons, which has now -- we have now been able to install all the modules over there. The hookup commissioning works would be underway, and we do expect gas to start flowing from the immediate -- in the beginning of this coming financial year. DUDP is also on track. Our gas we expect to flow from this March itself. So those are upsides that are there. And I think one major decision which the Board has also taken is to announce a dividend of INR 6.25 per share. Considered with the first interim dividend of INR 6, it is a total amount that we are giving is INR 12.25, which was the dividend that we had paid for the previous year. So on an interim dividend basis, this is the highest cumulative interim dividend that we have paid. It signals a very strong -- we are very quite positive about the future of this company, and we are also taking care of our stakeholders so that they get optimum returns also. So we do hope that this would -- the stakeholders would also welcome this. This was one long-standing demand from the investors also about the returns or the rewards that are given to the shareholders and we think we would be in a position to reward the shareholders in the future also. Thank you very much.

Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Door Sabha' conference call service. You may disconnect your lines now. Thanks, and have a pleasant day.