Oil and Natural Gas Corporation Limited (NSE: ONGC) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Vivek Chandrakant Tongaonkar — Director (Finance)
Mukul Gupta — Chief General Manager
Unidentified Speaker
Analysts:
Probal Sen — Analyst
Amit Murarka — Analyst
Vivekanand S — Analyst
Atishy Rathi — Analyst
Varatharajan Sivasankaran — Analyst
Mayank Maheshwari — Analyst
Puneet Gulati — Analyst
Achal Shah — Analyst
Ankit Patel — Analyst
Kishan Mundra — Analyst
Presentation:
Operator
Good afternoon, ladies and gentlemen, I am Talshia, moderator for the conference call. Welcome to ONGC’s Earnings Conference Call for Quarter Ended 30 June 2025. We have with me today Vivek Tongaonkar, Director, Finance, ONGC and team who will interact with investors and analysts to discuss Q1 earnings. As a reminder, all participants will be in the listen-only mode. And there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
I would now like to hand over the floor to Shri Vivek Tongaonkar for his opening remarks. Thank you. And over to you sir.
Vivek Chandrakant Tongaonkar — Director (Finance)
Yeah. Good afternoon, ladies and gentlemen. I am Vivek Tongaonkar, Director, Finance ONGC. And I welcome you all in this ONGC’s earning call for Q1 financial year ’26. Thank you all for joining us on this call. I am joined over here by my colleagues from ONGC, Ajay Kumar Singh, he is Chief of Corporate Planning; Mr. Yogesh Naik, he is our Chief Corporate Finance; Akhilesh Tiwari, he is our Head Corporate Accounts; Prakash Joshi; and Anand Kukreti from our Investor Relations cell. We also have Mukul Bhatnagar and Basant Pasari from ONGC Videsh Limited.
ONGC has compiled its financial results for the quarter ended 30 June 2025 which have been reviewed by the statutory auditors. The financial results have already been released on the 12 of August 2025 through a press note and sent to the stock exchanges. This has also been sent to the analysts who are there on our mailing list. A brief synopsis of the results follows.
The company has earned a net profit after tax of INR8,024 crore during quarter one financial year ’26 as against INR8,938 crore during Q1 FY ’25. It’s a decrease of INR914 crores, about 10.2% decrease. This decrease in net profit during Q1 ’26 is mainly on account of lower crude price realization. The crude price realization was $66.13 per barrel in this current quarter against $83.05 per barrel in Q1 FY ’25. Accordingly, the sales revenue in Q1 ’26 has decreased on account of lower revenue from crude oil. The decrease is about INR4,047 crores. And value-added products also is lesser by INR409 crores which has been set off by increase in natural gas revenue by INR1,083 crore as against those corresponding quarter of the previous year.
Increase in natural gas revenue is due to increase in ceiling price of nomination gas from $6.5 per MMBtu to $6.75 per MMBtu and additional revenue from new well gas sales. The incremental revenue from new well gas during Q1 FY ’26 is approximately INR333 crores. During Q1 FY ’26 the expenditure on account of statutory levies was INR6,073 crore as compared to INR9,772 crore for Q1 FY ’25. So this is a decrease of INR3,699 crores, about 37.9% or 38% decrease. This is mainly attributable to abolishment of SAD on crude oil which was effective from 2nd of December 2024. So this SAD amount was about INR29 crore in Q1 FY ’25. There’s also a decrease in average selling price of crude oil from INR51,768 per metric tonne in Q1 FY ’25 to INR42,593 per metric tonne in Q1 FY ’26.
In Q1 FY ’26 operating expenses stood at INR5,577 crore against INR5,182 crore in Q1 FY ’25. There was an increase in contractual payments by INR313 crores. These were driven primarily by higher FPSO full day rate charges which was about INR191 crores at kg 98 by 2. Also raw material consumption costs increased by INR265 crores quarter-on-quarter basis and this was due to the increase in LNG consumption cost mainly at Dahej C2-C3 plant which was amounting to INR244 crores. The depletion, depreciation and impairment cost for Q1 FY ’26 stood at INR6,531 crore as against INR5,897 crore during the corresponding period of the previous year. So this was an increase of INR634 crore. This increase was mainly due to depletion expenditure of INR211crores. Out of this INR211crores, INR174 crore depletion expenditure was at kg 98 by 2. This was due to the cumulative impact of increase in carrying value of ONG, oil and gas assets.
Increase in depreciation by INR393 crore was mainly at Western Offshore. There was also due to the addition of INR259 crores of ROU assets which was related to hiring of additional vessels at offshore. At the consol level the company has earned a higher net profit, a profit after tax of INR11,552 crores during the first quarter of FY ’26 as against INR9,776 crores during the first quarter of FY ’25. This is an increase of INR1,778 crore, about 18.2% increase and this increase has been primarily additionally because of HPCL.
During this quarter again we have successfully reversed we have increased the oil crude oil production. ONGC successfully reversed the crude oil production decline in Q4 FY ’24 and continues to increase production quarter on quarter basis for the past four to five quarters. The standalone crude oil production during Q1 ’26 was 4.683 million metric tonnes with an increase of 1.2% over Q1 FY ’25. Standalone natural gas production was almost flat at 4.846 Bcm in Q1 FY ’26 as against 4.863 Bcm in Q1 FY ’25. ONGC has also declared two discoveries during FY ’25 — for Q1 FY ’26 in its operated acreages. Out of these discoveries, Vajramani is a prospect discovery in Mumbai Offshore and Suryamani is a pool discovery at Mukta Formation in Western offshore.
Gas from new wells continues to be a key contributor with revenue from new well gas reaching INR1,703 crores in Q1 FY ’26. This has delivered an additional INR333 crore as compared to the APM gas price. As the gas from these new wells is eligible for 20% premium over the domestic APM gas price. The price for new well gas was 8.26 MMBtu and for nomination gas was 6.64 per MMBtu. ONGC is actively working to boost output of its new well gas. Now with the TSP, Technical Service Provider already in place for the MH field, more sharper focus on deepwater and ultra-deepwater exploration, expediting monetization of new hydrocarbon discoveries, expanding the enhanced oil recovery initiatives and commencing additional production from upcoming projects currently at various stages of development, I am confident that these efforts will help offset the decline in production from [Technical Issues] placing us in a stronger position in the coming quarters.
With this I finish my briefing for the first quarter results for financial year ’25-’26. We will be happy to field any questions from you and we would request you to kindly restrict your queries on financial results only. Thank you very much.
Questions and Answers:
Operator
Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] The first question comes from Probal Sen from ICICI Securities. Please go ahead.
Probal Sen
Yeah, good afternoon, sir. Thank you for the opportunity. I had a couple of questions. Firstly, as far as the production is concerned, you did mention that fuel production has sort of stabilized and is starting to increase. So what is the exact production level from the KG asset at this point of time? And what is the exited guidance as of now?
Vivek Chandrakant Tongaonkar
For the KG asset you are asking. Currently from KG, yeah, from KG asset we are producing 30,000 plus barrels of oil per day and the gas is about 3 MMSCMD. And as far as the projections are concerned, we are expecting that the production should ramp up from January-February onwards. Here I’m talking only about of KG basin as of now. And gas also should move up to 6 to 7 MMSCMD by [Technical Issues].
Probal Sen
FY ’26 we should ideally exit it at maybe slightly higher oil and 6 to 7 MMSCMD of gas output. Is that a fair way to look at it?
Vivek Chandrakant Tongaonkar
Yes.
Probal Sen
Okay. The second question was with respect to the TSP, the technical service that you just mentioned, any progress you can share or any granularity in terms of timelines of when we can start to see some of the incremental production which was sort of guided to?
Vivek Chandrakant Tongaonkar
Yes, already the teams are in place. As we had mentioned that from April onwards all the teams, both from BP as well as from ONGC have started working together. They are — the work has started. They have started looking at the various data that is available for MH field. We do expect that something tangible should start coming up from the fourth quarter of this year from January ’26 onwards.
Probal Sen
Fourth quarter this year, we should start to see the results?
Vivek Chandrakant Tongaonkar
Yes.
Probal Sen
And last question if I may sir, with respect to OPaL, thank you for sharing some additional data that you’ve done as part of the information. I just wanted your sense of where what impact higher amount of methane could have in terms of our input cost. The arrangement that we are looking to do to sort of build [Indecipherable] import methane directly? What kind of impact do we see on our profitability once we start sort of consuming or switching to ethane in a larger way for this plant?
Vivek Chandrakant Tongaonkar
So basically that ethane usage will start from ’28 only, ’28 onwards only. Currently we are extracting — using LNG for that extraction of C2-C3 portions. However, once this contract with Qatar gets over in ’28, we are looking at de-risking this project by tying up ethane supplies. And the best way to do this thing is ensuring that the supply is steady for which we have — we are planning to have our own ships for transportation of ethane and this comes out to be cheaper because plan to most of the ethane is normally available from the US which is linked to Henry Hub. So we do believe that the costs — landed cost over here should come out to be cheaper than what we have today.
Probal Sen
How much of ethane requirement will be there sir at full capacity.
Vivek Chandrakant Tongaonkar
It would be 600 KTP per annum, that is kilot tonnes.
Probal Sen
600 KTP. And just one last follow up. Do we expect to hit EBITDA break-even in this year? Are we driving to that effect?
Vivek Chandrakant Tongaonkar
First quarter itself we are EBITDA positive and we are hopeful with the measures that we have taken and now that the plant is also running more than 90% capacity, we should end the year with a good performance.
Probal Sen
Great sir, thank you so much for answering the questions. I’ll come back. All the best.
Operator
Thank you. The next question comes from Amit Murarka from Axis Capital. Please go ahead.
Amit Murarka
Yeah, hi, thanks for the opportunity. So just on your production volumes, so this is marginal uptick, include the volume as you’ve highlighted. So which field would it have come from? And also on on DP like you said that the engineers are working on it but if you could just give some guidance on volume uptick on that front that would be great.
Vivek Chandrakant Tongaonkar
First come as far as the if any particular production there has been an uptick. No, it has been general all across there have been different areas in which we have got marginal increases in crude oil production as such. We are expecting, as I’ve already mentioned that from KG basin we should have much further increase from January-February onwards for both crude as well as gas. And as far as TSP is concerned, the work has initially started now. The initial work would be more to do with interpretation, going through the data and then suggesting what has to be what actions need to be taken which would take some time for the actions to be completed. However, we do expect that we should see some impact upon production from the fourth quarter of this year. So as of now there is nothing concrete on the ground as far as to report. But yes, things are moving in the right direction. And that’s why we are hopeful that on the fourth quarter this year we should have some results or benefits of TSP visible.
Amit Murarka
Okay. And the Daman project is on track for Q4, I think, which was guided earlier?
Vivek Chandrakant Tongaonkar
Yes, it is on track, very much on track. And we do expect that this coming year, fourth quarter, we should have production coming out of it.
Amit Murarka
Got it. Thanks a lot. That’s all.
Vivek Chandrakant Tongaonkar
Thank you.
Operator
Thank you. [Operator Instructions] The next question comes from Vivekanand S from Ambit Capital Private Limited. Please go ahead.
Vivekanand S
Yeah, thank you for the opportunity. I have two questions. One is on the KG-D5 peak production guidance you had earlier said you will reach 45,000 barrels per day peak oil production and gas 10 MMSCMD. Would you be willing to share an update on the timelines when you reach peak production in KG-D5? That is question one. And secondly, could you refresh us with your guidance for FY ’26 and ’27 hydrocarbon output, both oil and gas separately, if you can. Thank you so much.
Vivek Chandrakant Tongaonkar
Yeah. So as I mentioned for KG-98 by 2 our guidance would be for the fourth quarter of this year. We should move ahead beyond 30,000 what we are producing just now. We were to have this earlier on during this quarter itself. However, because there was vessels not being available for that installation of living quarter, this got delayed and due to monsoon coming setting in, it was not possible to do the work. So it will now get shifted to winter which is happening sometime in November, December and that’s why January, February we should have this production coming up.
Gas also we have said that 10 MMSCMD should come up from now the fourth quarter onwards, starting off 6 to 7 and then moving up to 10 MMSCMD. Once the field — once the wells that are opened up and connected through that living quarter platform stabilize. Coming to your second question of what is the production levels for ’26-’27 for oil, crude oil we have 21 million metric tonnes. Guidance on gas for ’26-’27 is 21.487 BCM. So the total would come out to 42.50.
Vivekanand S
Right. And just one — please go ahead. On the current year also. Yes, thank you.
Vivek Chandrakant Tongaonkar
Yeah, sorry, sorry. For the current year we have crude oil at 19.928 and gas at 20.110 which is 41.04 in totality.
Vivekanand S
Thank you very much.
Vivek Chandrakant Tongaonkar
Thank you.
Operator
Thank you. The next question comes from Atishy Rathi from JPMorgan. Please go ahead.
Atishy Rathi
Yes. Hi. Thank you so much for the opportunity. So my question is regarding the OVL performance. I see that the volumes have remained almost flat Q-on-Q. But the revenues are substantially down. So could we have some color on that?
Vivek Chandrakant Tongaonkar
Mukul, can you just add on to it?
Mukul Gupta
Volume terms, we are sort of flattish because of the Russian impact, the geopolitical impacts, the Russian assets have been impacted in terms of production and we have been almost stable. The production, the oil production this quarter was in the same range as in the last quarter with a different about 2%. As far as our operated assets are concerned, we are doing well. We have increased production in south Sudan. In CP-5 we are doing pretty well. But the revenue is largely impacted by the crude price realization. Because our average realization has come down from 67 to 60. That also has a Russian angle.
Atishy Rathi
Right. So but if I look at on a standalone ONGC first ONGC I see that the revenue from the was basically down 9%. Whereas for OVL it’s almost down 65%. Which is you know based on trying to figure out if the realizations have come down. Ideally the impact even if we take into account the mix it shouldn’t have come down that that much or is there something that we’re missing?
Mukul Gupta
No, just to share, there is a some kind of change in the arrangement related to the sale in one of the projects. So what has happened, earlier we were selling the entire product and it was getting recorded as revenue in the books of ONGC Videsh. Right now that sales is not coming to us. Instead we are getting the that entire profit from the JV. So earlier we were selling on behalf of JV that was getting recorded as revenue. Now it is not coming to us. So that arrangement has changed. That’s a significant impact. Almost INR900 crore plus of revenue that was there in the last year is not there in the current year.
Atishy Rathi
Understood, sir. Understood. Thank you so much.
Operator
Thank you, sir. The next question comes from Varatharajan Sivasankaran from Antique Stock Broking Limited. Please go it.
Varatharajan Sivasankaran
Thanks for the question. Wanted to understand this new well gas. So currently like you know the level at which you are when how often does it get reviewed and when should we expect the next review and to what kind of a quantum?
Vivek Chandrakant Tongaonkar
See this price gets revised every month. The quantum gets reviewed every month [Technical Issues] is every six months.
Varatharajan Sivasankaran
So when would be the next review? Sometime around the next — in the next two, three months.
Vivek Chandrakant Tongaonkar
Just hold on for a second. Yeah. Quantity gets projected monthly also and monthly the accordingly that quantum gets decided and pricing is based upon there that gas pricing whatever that KPM price Indian basket 20% upon — 12% on the Indian basket which gets revised every month.
Varatharajan Sivasankaran
And any update on every month what upon what update on Mozambique? Upon what. Update on… Update on Mozambique.
Vivek Chandrakant Tongaonkar
Yeah, Mozambique currently still in force majeure. But we are expecting that since the improve there has been very substantial improvement on the ground from we were — we are expecting August-September this FM to be lifted. Already Total is in talks with the government over there. They have also had talks with all the partners and actions have started to — have been initiated to start the operations over there. So we do expect that very shortly. Maybe in a month’s time we should have work up and going and the force majeure withdrawn from that.
Varatharajan Sivasankaran
Thanks a lot sir.
Operator
Thank you. The next question comes from Mayank Maheshwari from Morgan Stanley. Please go ahead.
Mayank Maheshwari
Hi sir, thank you for the call. My question was more related to the operating cost itself. I think if you look at on a per unit basis, your operating cost still tracking higher if you look at Y-o-Y basis or on a long cycle last three year average basis. Any chances of this kind of coming down considering you have been highlighting focus on the cost side in the last call. So what are — like is there a view here that you can share with us?
Vivek Chandrakant Tongaonkar
Yes. So the increase as I have mentioned earlier was that mainly because of the hiring charges that have increased as far as the FPSO was concerned on the East Coast when you compare on quarter-on-quarter basis. During this current quarter the FPSO was working at full capacity and therefore the price or the rate that was being charged was the full rate. In the previous year quarter one, the FPSO rate was lower because it was not fully being utilized. It was at that time 70% was the rate which subsequently from October onwards became the full rate that was being charged. So that was one aspect that comes up.
Secondly at — for OPaL, we supply C2-C3 through our C2-C3 plant. Now since OPaL is now working or is full stream ahead, there has been — we have been providing more LNG also to them and because of this the purchase of LNG has also increased. Processing of our gas has also increased over there and this has led to the increase in the cost. The focus on cost reduction remains. We have been starting to cut down upon costs also. We have — there have been decreases under other expenses and transportation expenses etc., have also come down. What has increased is in sync with the quantum of production increases that have happened. So the focus remains upon cost control. However, if there is production increase, there is going to be the production costs also moving up accordingly. But there have been a number of areas in which we have been able to reduce the cost also like insurance where we have cut down on the costs. There has been a decrease of about 15% in insurance expenses.
We have also cut down upon some of those repair and maintenance costs also. So this is work in progress always. And this is going to help very substantially. Very substantially we have been able to reduce our manpower cost also partly because, yes, there have been retirements in the company. Hello. Am I audible? Yeah. We have also taken measures to reduce our operational cost in another method. If you see for the Western Offshore, our fields spread out from right from below Mumbai side to right up to the Gujarat course. So we have been earlier operating from Mumbai only. All our sorties or all our dispatches for cargo etc have been from Mumbai Nhava Sheva Port. Now we have taken up Pipavav Port which is closer to the northern side of this field. And by using that port we have started to cut down on the cargo or the transportation costs. We have also started utilizing Surat airport for our sorties for manpower deployment. So it cuts down a lot on the time as well as the sorties that are there. So these cost reductions will get translated over this year which should be visible subsequently.
Mayank Maheshwari
No, very clear. I think thank you for that detailed explanation.
Vivek Chandrakant Tongaonkar
In terms of fair weather, sorry, there’s something.
Mayank Maheshwari
Yeah, go ahead, go ahead, go ahead, go ahead.
Vivek Chandrakant Tongaonkar
In terms of fair weather we are also using crew boats which reduces the cost of transportation of people from shore to the offshore. It reduces the number of sorties, helicopter sorties that we have to — which are much more expensive. And it also reduces the risk that the people are — our employees and contractual employees face while going to offshore. So all these measures will translate during over the course of the year into lesser cost as far as operations are concerned.
Mayank Maheshwari
So sir, just an extension of this, correct? Is there guidance you want to kind of give us into the end of the year where your opex per barrel could kind of sit or whether you see a 10%, 15% reduction with all the things that you kind of highlighted very clearly on a per barrel basis where your cost could kind of sit, considering there could be some impact coming in also because of some of the rig costs, etc., kind of shifting lower as well, I’m assuming. So is there something that you can guide us on that.
Vivek Chandrakant Tongaonkar
In the first quarter we will not be in a position to do that guidance. We were thinking on this issue, but then we would little bit more time flow because the Pipavav has come very recently. We have not yet stabilized those operations. We have also not shifted most of our operations from Mumbai only partly they have shifted. So by within a six-month period, by maybe October-November onwards in the fair season, we should start making more use of the Pipavav as such as well as for those crew boats. So then the cost would start appearing how much are we are going to save on it.
Mayank Maheshwari
Okay. So the last question was on OPaL, you are running now at close to around 90% utilization rate. You think — I think because most of the other assets in the country are running closer to 100% or above, sometimes even above 100%. You think with your performance in OPaL that you have been now scaling up, you think that’s something that you can kind of get to going forward?
Vivek Chandrakant Tongaonkar
Yes, yes. We are very hopeful or very rather we are aiming to do that. That we should be closer to 100% or even try and cross it.
Mayank Maheshwari
Got it. Yeah. Thank you.
Vivek Chandrakant Tongaonkar
Thank you.
Operator
Thank you. The next question comes from Puneet Gulati from HSBC. Please go ahead.
Puneet Gulati
Thank you for the opportunity. My first question is the gas production has been delayed a bit. Do you envisage a risk for in ramp up and what would you attribute as a main cause for slight delay in the gas ramp up? This is the KG basin side.
Vivek Chandrakant Tongaonkar
Yeah. So for the KG basin that production could not happen because our living quarters got delayed. Living quarters module that got delayed and because of which we are not in position to tie up our gas wells which have already been drilled and they need to be connected and gas supply should start. So once that happens, as said, in the winter this year, by November, January, February, we should have that gas coming up from the…
Puneet Gulati
Okay. And that living quarter is yet to be tied up?
Vivek Chandrakant Tongaonkar
Yeah, it is to be installed as yet it is fabricated. Everything is ready. It has to be brought to India and then installed over here. Because of the monsoon season, we are not able to do it now. We will be able to do it after October only. So it is planned to be done in November-December.
Puneet Gulati
And on the oil side, will that also help oil ramp up from 30,000 to more? Or you think we’ve reached the peak now?
Vivek Chandrakant Tongaonkar
No, no, we expect the peak to be higher. All these measures would also should also help to improve the oil production from East Coast, KG-98
Puneet Gulati
And what is the peak oil you’re talking out here.
Vivek Chandrakant Tongaonkar
We have a target of 45,000.
Puneet Gulati
And secondly in your earnings, if you could talk a bit about slightly lower other incomes during the quarter, anything you can attribute it to?
Vivek Chandrakant Tongaonkar
Other income was lower because last year we pumped in about INR18,365 crores into OPaL. So that cost — but that much amount went out and interest rates have also fallen, gone southwards. So that has contributed for that reduction in our other income as such.
Puneet Gulati
And how much is OPaL contributing now?
Vivek Chandrakant Tongaonkar
OPaL, EBITDA positive it has happened for the first quarter.
Unidentified Speaker
Yeah. So it is EBITDA positive. It is around INR13 crores.
Puneet Gulati
INR13 crores. Okay. And. And what does it take from here OPaL to better numbers?
Vivek Chandrakant Tongaonkar
From here, one, we need the production to happen. Broadly that is all that would be required now that the plant is running on plus we expect that it should improve, its performance, should improve and we should get a better stabilization. We are also expecting the petrochemical cycle to start an upturn. Prices are looking up and so over the period of this year we should expect that it should do much better.
Puneet Gulati
Understood. That’s very helpful. Thank you so much. And all the best.
Vivek Chandrakant Tongaonkar
Interest rate also going down plus cost also — interest quantum also going down, it should help us.
Puneet Gulati
Thank you so much.
Operator
Thank you. [Operator Instructions] The next question comes from Achal Shah from Ambit Capital Private Limited. Please go ahead. A repeat question comes from Achal Shah. Please go ahead.
Achal Shah
Hello, Am I audible?
Vivek Chandrakant Tongaonkar
Yeah, yeah you are audible.
Achal Shah
Sorry sir, I was thinking that how much of the gas volume is currently APM and NWG percentage wise and going ahead how will this percentage change?
Vivek Chandrakant Tongaonkar
Yeah, just one moment. So currently our new well gas, what we are expecting for this ’25-’26 would be 2.6 BCM. Going ahead we should be around 13% to 14% as such. Next year we are expecting it to be 4.8 plus BCM which would be around 24% to 25%.
Achal Shah
Understood. And sir, my follow up question is just wanted to know, like the arrangement with BP. Are we doing any other type of arrangements, onshore arrangements to increase production of the smaller well and do you see any upside there in terms of volumes or output?
Vivek Chandrakant Tongaonkar
We do not currently have any other arrangement with BP as far as the production increases are concerned except for the one that we have at Mumbai High. Coming to other fields, onshore fields, yes, there are many pockets where we could be having additional production which is possible and we are continuously doing those things. New well gas if you see is there and the production or the quantum is rising because we continue to look for newer avenues for production in the existing fields also, mature fields also. So it’s a continuous process and we expect that additional oil and gas should continue to flow from these mature fields also.
Achal Shah
Got it. Capex guidance for F ’26 and F ’27 and a broad breakup of that would be helpful.
Vivek Chandrakant Tongaonkar
Broadly we would continue INR30,000 plus crores or INR30,000 odd crores whatever we are between annually capex out of which exploration should be INR8,000 crores to INR10,000 crores. We should have our infrastructure projects coming up to INR15,000-odd crores. Drilling should be another less than INR15,000 crores. Drilling should be around INR10,000 crores that is happening and balance some other projects as such.
Achal Shah
Got it. Thank you.
Operator
Thank you. The next question comes from Ankit Patel from HSBC Mutual Fund. Please go ahead.
Ankit Patel
Yeah, good evening sir. So regarding ONGC’s investments in OPaL, just also wanted to understand going forward was there is a significant debt which is there in that balance sheet and while it is starting to contribute EBITDA, would you also be looking to basically contribute more capital over there to further improve the profit and loss? At the same time there are also some expansion plans which had come up in the news regarding plans to ramp up capacity under ONGC into the subsidiaries. So would OPaL be also in the mix of all this? Is there any progress or development which you can share on this?
Vivek Chandrakant Tongaonkar
So for OPaL the debt has been — debt is around INR24,800-odd crores. We do not immediately intend to add any further equity or pump in funds to reduce this debt from ONGC side. We do believe that the company OPaL would be able to sustain its existing debt as of now. Now considering that the petrochemical cycle is expected to look up and plant is running well. So as of now we do not have any plans, immediate plans of pumping in any money into OPaL assets. It should be able to manage on its own.
The second part, as far as whether we are looking at any expansions or anything like that, immediately we do not have plans because we are looking at ensuring that this plant runs properly. But yes, it does have lot of capabilities and capacities available over there. As far as land is concerned or streams are concerned, different streams, gas streams or hydrocarbon streams that are concerned which could be very beneficial for value-add products to be generated from there and we would be looking at all these in the future.
Ankit Patel
Thank you.
Operator
Thank you. The next question comes from Kishan Mundra from DAM Capital. Please go ahead.
Kishan Mundra
Hi, sir, just one question or rather clarification. So the production guidance that you’ve given for FY ’26 and ’27, is it for ONGC standalone or is it also includes your share of JV production?
Unidentified Speaker
It’s only standalone.
Kishan Mundra
Okay. Okay, understood. That’s it from me. Thank you.
Operator
Thank you. We have a follow-up question from Vivekanand S from Ambit Capital Private Limited. Please go ahead.
Vivekanand S
Yeah. My questions have been answered. Thank you so much.
Vivek Chandrakant Tongaonkar
Okay.
Operator
Thank you, sir. There are no further questions. Now I hand over the floor to Shri Vivek Tongaonkar for closing comments.
Vivek Chandrakant Tongaonkar
Yeah. Thank you very much and thank you all for being on this call. And we do hope that we have been able to answer all your questions that have been there. If you require any further information clarification, please get in touch with our IRC department. Materials I think should be available or otherwise they are available on our website.
So thank you once more all for joining this call.
Operator
[Operator Closing Remarks]