 "Amid declining global fuel demand, ONGC Videsh pivots to securing overseas projects, prioritizing renewable transitions for sustainable growth.")
ONGC Videsh, India’s leading overseas oil and gas company, is strategically focusing on acquiring stakes in producing assets abroad as global demand for refined fuels is expected to decline due to the shift towards renewable energy. According to Anupam Agarwal, the company’s head of finance, long-term exploration projects are not a priority, and efforts are concentrated on already established projects. As the world’s third-largest oil consumer, India faces a significant dependency on imports, meeting over 80% of its oil needs. With declining demand, especially from China, India is now also looking to increase local oil and gas production, including from frontier regions, while transitioning to cleaner energy alternatives.
India’s ONGC Videsh is shifting its focus toward acquiring stakes in overseas oil and gas projects, reflecting the changing landscape of global energy demands. According to Anupam Agarwal, the head of finance at ONGC Videsh, the company is prioritizing acquiring producing or near-producing assets rather than engaging in long-term exploration projects. This shift is largely influenced by the expected decline in demand for conventional fuels as countries look to transition to renewable energy sources.
At a recent conference, Agarwal mentioned that, while ONGC Videsh continues exploration in nearby areas, their main goal is to secure assets that are already yielding production. The company currently has stakes in 32 projects across 15 countries, highlighting its extensive global reach.
As the world increasingly embraces renewable energy to reduce emissions, demand for refined fuels is anticipated to slow. For instance, oil product consumption in China is projected to decline by 1.1 percent annually from 2023 to 2025. Meanwhile, India plans to convert a third of its truck fleet to liquefied natural gas, aiming to enhance its energy diversification strategy.
Agarwal pointed out that rising demand for hydrocarbon production services and equipment has influenced their capital expenditure plans, making it more challenging to develop new projects. Despite these hurdles, Indian companies are eager to boost local oil and gas production, including in more challenging frontier areas.
Given that India is the world’s third-largest importer and consumer of oil, with over 80 percent of its oil needs met through imports, ONGC Videsh’s strategic adjustments reflect both domestic and global energy trends.
In summary, as ONGC Videsh adapts to a rapidly evolving energy landscape, its commitment to acquiring productive assets and focusing on energy transition signifies an important shift for the Indian energy sector.
Tags: ONGC Videsh, Renewable Energy, Oil and Gas, Global Energy Trends, India Oil Imports
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What is ONGC Videsh’s main focus right now?
ONGC Videsh is focusing on investing in oil and gas assets while also adapting to changes in the energy Market. -
Why is energy transition important for ONGC Videsh?
Energy transition is important because it involves moving towards cleaner and sustainable energy sources. ONGC Videsh wants to stay competitive and responsible in this changing landscape. -
How does ONGC Videsh invest in oil and gas assets?
ONGC Videsh invests by buying stakes in existing oil and gas projects or developing new ones in different countries. -
Is ONGC Videsh looking to change its strategy?
Yes, they are adapting their strategy to include more renewable energy options alongside traditional oil and gas investments. - How does this focus affect the future of ONGC Videsh?
This focus helps ONGC Videsh secure its position in the energy Market and ensures it meets future energy needs sustainably.
