Oil and Natural Gas Corporation (ONGC) chairman and CEO Arun Kumar Singh said during a news conference after the company’s annual general meeting on Tuesday that the company expects to spend Rs 2 trillion to satisfy Scope-I and Scope-II emission objectives by 2038.
“We have said that we will shift to Scope-I and Scope-II by 2038. By 2030, our several green efforts will cost Rs 1 trillion. Green ammonia, hydrogen, solar, PSP, and offshore turbines are only a few of the components, he claimed.
In order to take advantage of numerous low-carbon energy options, such as renewable energy, green hydrogen, green ammonia, and other derivatives of green hydrogen, ONGC is aggressively investigating partnerships with top players.
The state-owned business has implemented a number of decarbonization strategies that have allowed it to reduce its Scope-I and Scope-II emissions by 17% over the last five years. From 9.14 MMTCO2e in FY22 to 8.89 MMTCO2e in FY23, it decreased emissions by 2.66%.
By 2030, it wants to increase the size of its renewable energy portfolio to 10 GW. To reduce emissions from current processes, more attention is being paid to research and development in carbon capture, utilization, and storage (CCUS) technology.
Given the impending carbon market, Singh said it made excellent financial sense to invest in green activities. Green goods also provide a significant export possibility, and they may be financed at significantly reduced costs.
In Rajasthan, ONGC has already agreed to build 5 GW of solar power capacity, and it is now looking for 5 GW more. To reach its goal of 10 GW, it is open to all possibilities, including wind energy and acquisitions, based on “economics and return”.
The firm would continue to concentrate on its traditional upstream and downstream activities, the chairman made clear. In his opinion, the next 10 to 20 years will see India’s energy narrative stay unique. For the next five to ten years, ONGC has the financial strength to continue both the transformation and the energy stories in India. With a debt-to-equity ratio of 2:1 and an estimated net value of Rs. 2.5 trillion, we have a borrowing capacity of Rs. 5 trillion.
Speaking at the AGM, Singh predicted that over the next years, domestic production will increase thanks to the increased output from the KG deep-water field in the eastern offshore. It has sent out two drill ships and started drilling exploratory wells in the eastern offshore Mahanadi basin’s deep waters.
An empowered internal “production squad” has been formed by the firm to revitalize western offshore. The multidisciplinary team will prioritize project acceleration, equipment availability, reservoir pressure control, and production improvement.
ONGC has a capex program of more than Rs 30,000 crore with a goal of bringing 500,000 sq km of territory under active exploration by 2025.
The production level of Sakhalin-1 has reportedly reached approximately 180,000 barrels per day, which is similar to the pre-crisis production level of about 200,000 barrels per day, according to its overseas branch ONGC Videsh (OVL).
Construction workers are on the ground in Mozambique, where OVL is carrying out its biggest project, and the security situation has continued to improve. According to Singh, the business anticipates the force majeure to be lifted at any point this fiscal.