Indian oil PSUs plan nearly US$15 billion investment

This investment, as per several media reports that cited PTI, is a 5% increase from the current fiscal year's Rs1.12 trillion.

It will be directed towards oil and gas exploration, refineries, petrochemicals and pipeline infrastructure to support the energy demands of the rapidly growing economy.

ONGC has earmarked Rs308 billion for capital spending in the next financial year, focusing on discovering new oil and gas re-serves and bringing existing discoveries into production.

This is a slight increase from the Rs 305 billion capex in FY2023 - 24.

The company is actively developing discoveries along India's east and west coasts.

ONGC's international division, ONGC Videsh, is set to increase its investment by 68% to Rs55.8 billion in overseas oil and gas operations for FY2024 - 25.

Meanwhile, IOC, India's leading oil refiner, is poised to be the largest investor among its peers with a proposed outlay of Rs309.1billion, primarily for expanding and upgrading its seven refineries. This investment also includes Rs32.99 billion in the petrochemical sector and Rs2.36 billion in its oil and gas exploration portfolio.

Bharat Petroleum Corp Ltd (BPCL) plans to increase capital spend-ing by 30% to Rs130 billion, with two-thirds dedicated to its core refining business.

In contrast, gas utility GAIL India anticipates a reduction in planned investment to more than Rs80 billion, down from Rs97.5 billion, as its pipeline grid expansion projects near completion.

Hindustan Petroleum, an ONGC subsidiary, will invest Rs125 billion in FY25, a marginal increase from Rs120 billion in the previous year.

Oil India, the country's second-largest oil producer, will raise its investment to Rs68.8 billion next year, up from Rs56.4 billion in the current fiscal year.

In a separate development, Mangalore Refinery and Petrochemicals has entered a five-year long-term gas supply agreement with BPCL.

Under this agreement, BPCL will supply 0.43 million m3/d of re-gasified liquefied natural gas to MRPL's refinery and petrochemical facility in Mangaluru from the Cochin terminal.

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