APPEC-India ONGC Videsh focuses on stakes in oil and gas assets amid energy transformation

The head of finance at ONGC Videsh said that the company is focusing on acquiring stakes overseas in oil and gas producing companies, as the shift to renewable energy will likely reduce the demand for conventional fuels.

We are not interested in long-term projects, due to the energy transition. Anupam Agarwal, at the APPEC Conference, said that exploration was not a top priority for the moment.

ONGC Videsh is the overseas investment arm for the top oil and natural gas exploration company in the country, Oil and Natural Gas Corp. It has stakes in 32 oil and gasoline projects in 15 different countries.

In the coming years, global demand for refined fuels will slow down as countries switch to more environmentally friendly fuels like renewable energy in order to reduce emissions.

India, which has been the world's largest consumer of oil products, is planning to switch a third its truck fleet over to liquefied gas and increase the use of renewable energy sources.

Agarwal stated that "we are continuing to explore in the surrounding areas but our main focus is on acquiring producing or near-producing assets."

Agarwal stated that capex plans have been "impacted" due to the increased demand for services and equipment needed for hydrocarbon production.

India is the third largest oil consumer and importer in the world. India imports over 80% of the oil it needs, as its local production is almost static.

Agarwal stated that Indian companies are interested in increasing the local oil and gas production from existing and new wells, including those located in frontier or challenging areas.

(source: Reuters)