ONGC diversifies portfolio to counter volatile oil prices

India's largest oil explorer, Oil and Natural Gas Corp. (ONGC), is planning to expand its business to cope with falling oil prices. According to Arunangshu Sarkar, the director for strategy, this diversification is crucial for the company's survival. ONGC aims to branch out into refining, petrochemicals, and liquefied natural gas trading. The International Energy Agency suggests the world is facing an oversupply of oil and gas, leading to lower prices. Sarkar emphasized that these new ventures will help the company manage potential losses in a declining oil market. As oil prices drop, ONGC faces rising production costs. Many oil fields are becoming depleted, making it harder to find new fuel sources. Sarkar noted that he took on the role of strategy director in September and is now focused on these challenges. The company is looking to secure regassification capacity on India's western coast and engage in long-term contracts with city gas retailers. Importing inexpensive gas could help counteract the impact of fluctuating oil prices. ONGC also plans to construct its first refinery that will focus on oil-to-chemicals. While the specifics of this project are still developing, it aims to adapt to changing market demands. In total, ONGC already controls a significant refining capacity through other subsidiaries. Lastly, ONGC is investing in clean energy, targeting 10 gigawatts of renewable capacity by 2030, which is three times its current capacity. It will soon seek bids for 1 gigawatt of solar and wind power for its own use.