ONGC sees crude prices hovering around $60-$65 per barrel in coming year

Despite global volatility in energy markets, state-run explorer Oil and Natural Gas Corporation (ONGC) remains cautiously optimistic about the medium-term oil price outlook. According to a senior ONGC official, crude prices are expected to hover between $60–$65 per barrel over the next two to three years, driven by a fine balance between rising global demand, evolving supply dynamics, and the ongoing clean energy transition.

“Oil prices are anticipated to remain volatile, but we foresee a stable average range of $60–$70 per barrel in the near to medium term,” the official said, adding that ONGC is strategically positioning itself to remain profitable and competitive in this price environment.

The company has witnessed a reversal in the downward trend of its standalone crude oil production, reflecting the impact of focused operational improvements and new project ramp-ups. ONGC is undertaking multiple development projects on both its eastern and western offshore fronts to sustain and enhance output levels.

As part of its growth roadmap, the energy major has committed $400 million in capital expenditure for the ONGC-BP redevelopment project (Phase 1). This initiative, the official noted, will play a key role in improving production efficiency and recovery rates from mature fields.

Additionally, ONGC has identified over ₹4,300 crore worth of value potential across more than 20 strategic initiatives currently under implementation. These include digital transformation efforts, process optimization, and integration of cleaner and more sustainable technologies across its operations.

With the global energy landscape undergoing rapid transformation, ONGC is preparing for a future where oil could stabilize around $60 per barrel. “We are recalibrating our operations, investments, and efficiencies to thrive in a lower price environment,” the official said.