Page 10 - AsianOil Week 05 2022

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India’s state-owned oil companies set to

spend $14.7bn over 2022-23 financial year

INVESTMENT INDIA’S leading state-owned oil and gas com- ONGC’s chairwoman, Alka Mittal, said at
panies – on both the upstream and downstream the World Energy Policy Summit online event
side – are set to spend nearly INR1.1 trillion this week that her company was looking for
($14.7bn) over the 2022-23 financial year, which partnerships with overseas oil and gas firms
begins in April. in a bid to help raise domestic production.
The plan was included in India’s annual Union The CEO of ExxonMobil Gas (India), Monte
Budget, which was unveiled on February 1. The Dobson, said his company would help ONGC
oil and gas companies covered by the spending boost output from the Indian company’s
plan include Oil & Natural Gas Corp. (ONGC), operations.
Indian Oil Corp. (IOC), GAIL (India), Bharat IOC, which is India’s largest refining and
Petroleum Corporation Ltd (BPCL), Hindustan fuel marketing company, is anticipated to spend
Petroleum Corporation Ltd (HPCL) and Oil almost $3.8bn, roughly in line with its spend- ONGC is expected
India Ltd (OIL). The Economic Times of India ing during the current financial year. BPCL
reported that the companies’ combined capital and HPCL are expected to spend nearly $3.3bn to spend around
expenditure budget was almost 7% higher than combined.
their overall spending of almost $13.9bn over the OIL is anticipated to have a capex budget of $4bn over the
2021-22 financial year. $575mn during the next financial year, which is
The increase comes as oil and gas companies marginally higher year on year, according to the next financial
globally cautiously step up spending as demand Economic Times. year, with $1.5bn
rebounds from the initial waves of the pandemic The budget announcement comes in the
and as commodity prices continue to strengthen. same week that Indian Minister of Petroleum of this potentially
India is also seeking to reduce its dependence and Natural Gas Hardeep Sing Puri said that oil
on oil imports – which cover about 85% of the and gas would continue to meet the country’s being allocated to
country’s demand and are expected to rise above “baseload” energy demand for the foreseeable
$100bn in value this year – by 10% by doing future. This is despite the fact that India is try- exploration and
more to develop domestic resources. ing to diversify its energy mix to include cleaner appraisal drilling.
Notably, ONGC is expected to spend around sources and is targeting net-zero greenhouse gas
$4bn over the next financial year, with $1.5bn of (GHG) emissions by 2070.
this potentially being allocated to exploration “As our economy grows to $5 trillion by 2025,
and appraisal drilling. Another $1bn would be and towards $10 trillion by 2030, our burgeon-
spent on development drilling, with the remain- ing energy needs will take shape and in turn, the
der being directed to projects under develop- global energy markets will be shaped by India’s
ment such as the KG-DWN-98/2 deepwater requirements,” Puri told the World Energy Pol-
project. icy Summit on February 4.™

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