Oil and Natural Gas Corporation Limited (NSE: ONGC) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Vivek Chandrakant Tongaonkar — Chief Financial Officer, Director (Finance), Executive Director
Analysts:
Prabhat Singh — Analyst
Varatharajan Sivasankaran — Analyst
Mayank Maheshwari — Analyst
Sabri Hazarika — Analyst
Gagan Dixit — Analyst
Vivekanand Subbaraman — Analyst
Satish Kapoor — Analyst
Vikash — Analyst
Kirtan Mehta — Analyst
Somaiah V — Analyst
Ramesh — Analyst
Presentation:
operator
Welcome to ONGC Limited Q3FY26 earnings conference call. Please stay connected. Your conference will begin shortly. Welcome to ONGC Limited Q3FY26 earnings conference call. Please stay connected. Your conference will begin shortly. Welcome to ONGC Limited Q3FY26 earnings conference call. Please stay connected. Your conference will begin shortly. Welcome to ONGC Limited Q3FY26 earnings conference call. Please stay connected. Your conference will begin shortly. Welcome to ONGC Limited Q3FY26 earnings conference call. Please stay connected. Your conference will begin shortly. Welcome to ONGC Limited Q3FY26 earnings conference call. Please stay connected. Your conference will begin shortly. Welcome to ONGC Limited.
Good morning ladies and gentlemen. I am Marty, Moderator for the conference call. Welcome to ONGC’s earnings conference call for quarter ended 31st December 2025. We have this today. Sri Vivek Tangonkar, Director, Finance O NGC and team who will interact with investors and analysts to discuss Q3 earnings. As a reminder, all participants will be in listen on the mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator by pressing Star and then zero on your touch tone phone.
Please note that this conference is being recorded. I would now like to hand over the floor to Mr. Sri Vivek Songwankar for his opening remarks.
Vivek Chandrakant Tongaonkar — Chief Financial Officer, Director (Finance), Executive Director
Yeah. Good morning. Good morning, ladies and gentlemen. I am Vivek Ton Gaokar, Director of Finance, ongc. I welcome you all to this ONGC earnings call for Q3 financial year 26. Thank you for joining us. I am accompanied today by my colleagues from ONGC. Mr. Satish Kumar Devaidi is Chief of Joint Venture and business development. Mr. Ajay Kumar Singh. He’s our president, planning and transformation. Mr. Prakash Joshi from investor relations sales and Mr. Shekhar Mohanty from our corporate accounts. We also have our colleagues From ONGC Videsh Limited Mr. Bhishma Dev Mandal and Mr. Basant Kasari. ONGC has compiled its financial results for the quarter and nine months until 31 December 2020.
The results were released on 12 February 2026 through a press note and shared with the stock exchanges and analysts. I’ll now present the highlights of our performance. ONGC standalone crude oil production continues to show growth momentum. During Q3 financial year 26, production stood at 4.592 million metric tonnes. While the cumulative output for nine months financial year 26 reached 13.907 million metric tonnes. This reflects a modest increase of 0.35% over the nine month financial year 25 standalone natural gas production in Q3 financial year 26 registered an upward trend on year on year basis. This highlights improvement comes alongside the company arresting the earlier trend of B Group with cumulative output for nine months financial year 26 remaining steady thereby reinforcing stability in the gas portfolio.
During this nine month period of financial year 26 revenue from new well gas 5000 crore rupees. This delivered an additional 944 crore compared to the APM gas price reflecting the premium eligibility of gas. Notably now the new well Gas contributes over 18% of ONDC’s total gas field revenue. Underscoring its growing significance in the company’s portfolio, ONDC is actively working towards boosting the performance from new gas wells. Coindices Board has declared a second interim dividend of 125% amounting to 6 rupees 25 paise per equity share of 5 rupees face value. This translates into a payout of 7863 crore rupees on top of the first interim dividend of 6 rupees per share that is 120% announced in November 2025.
With these two payouts, ONDC has achieved a historic milestone. This is its highest ever cumulative interim dividend of 15,411 crore in a single financial year, underscoring our commitment to to shareholder value with regard to KG98 by 2. As you are aware so far all the 26 wells have been drilled. I’m happy to share that. As per the latest update surf I.e. subsea umbilical risers and flow lines and the subsea production system scs. These works are nearing completion. The Central processing platform together with the bridge connected living quarters and utility platform have been fully installed in January 2026.
The main support frame, the Living Quarter module was successfully pinned down on the LQ UP jacket followed by the installation of the Living Quarter unit HELIDEC and associated structures in February 2026. This series of completions represents a decisive push forward, reinforcing our confidence in unlocking the full potential of this strategic asset Coming to Mumbai High Field, the TSP one is already showing encouraging production gains. Additionally. Daman Upside Project Daman Upside development project in Western offshore is also on track to be monetized soon with a peak gas output expected at 4-5 MMSTM. ONGC also has a robust pipeline of over 20 major development, redevelopment and infrastructure revamp projects under execution with a total combined CAPEX of about 77,000 crores.
These projects are designed to augment production, sharpen operational efficiency which will ensure sustained growth. Importantly, four key infrastructure and revamp projects are slated for near term completion. Recognizing the volatility in global crude prices and the need to sustain profitability in a competitive environment, ONGC has already adopted a structured enterprise wide approach to efficiency and value creation. A dedicated cost council has identified multiple areas where structural improvements can deliver long term benefits. Key focus areas where progress is there include inventory rationalization, fuel efficiency, logistics optimization, manpower restructuring and integration of renewable energy into operations. We now come to financials at the consolidated level, net profit grew by 23% both on a quarterly and nine month basis.
It was 11,946 crores in Q3 financial year 26 up from 9,747 crore rupees in Q3 financial year 25. For the nine months financial year 26 the figure was 36,115 crore rupees compared to 29,364 crore rupees for the previous year’s nine months. This increase in profit can mainly be attributed to our subsidiaries HTCL and MRPL and profit for Q3 financial year 26 was 8372 crores up 1.6% compared to 8240 crore in Q3 financial year 25. For the nine months financial year 26 standalone net profit was at 26,244 crore against 29,162 crores in the previous in the same period previous year.
The increase in net profit during Q3 financial year 26 is on account of contribution from gas revenue, higher other income and lower statutory levies. One point to note is that in spite of the decline in crude oil prices, ONGC’s net profit at both stand alone and control level has been upwards. Sales revenue in Q3FY26 declined primarily due to 2,145 crore rupees drop in crude oil revenue and a 710 crore reduction in value added products which was partly offset by increase of 505 crores in natural gas revenue compared to the same quarter last year. Crude oil prices have declined to US$61.63 per barrel in Q3 financial year 26 from US$72.5 tonnes per barrel in Q3 financial year 25 which adversely impacted our revenue.
Crude oil and value added products declined due to lower price realization which was offset by increase in natural gas quantity and price resulting in a net decrease. The rise in Gas revenue was driven by incremental revenue of rupees 294 crore from Nueval Gas Sales during the Q3 financial year 26 and incremental revenue of 944 crores for the nine month period. During Q3 financial year 26, tax equity levy stood at 5,975 crore down from 6,630 crores in financial including financial 825 which was a reduction of 653 crore 55 crore rupees that is 9.9%. This decline is primarily attributable to lower royalty and the driven by the decrease in mortgage crore.
Operating expenditure in the third quarter of financial year 26 stood at 7,151 crore compared to 6,563 crore rupees in the same quarter last year which was an increase of 9%. This rise is primarily attributable to our Dahesh plant where LNG consumption grew significantly from 7.68 million MMBPU in Q3 financial year 25 to 11.31 MMBtu million MMBtu in Q3 financial year 2016. Also there has been an increase in GST on oil services from 12% to 18% and we have worked diligently to keep our operational costs flat through disciplined cost management. Even in this challenging fiscal environment.
There is a decrease of 168 crore that is 2.5% in DD and I cost which was 6778 crores in Q3 financial year 25 to 6610 crore in finance financial year 26. This is mainly on account of impairment reversal of 224 crores during the quarter compared to a small impediment loss of 4 crores in. With this strong operational execution, strategic progress and resilient financial performance, ONGC continues to reinforce its contribution in India’s energy sector by working towards production growth. With this I conclude my briefing on the third quarter results for financial year 2526. We are now happy to take questions and answer them.
Thank you.
Questions and Answers:
operator
Thank you sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please click Star and one on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing Star and one again. First question comes from Prabhar Sin from ICC Security. Please go ahead.
Prabhat Singh
Very good morning sir. Thank you for the opportunity. I hope I’m audible. Firstly on the KG98 by 3. Thank you for updating us on the progress of the associated infrastructure. But just wanted to understand now, how are we looking at FY27 in terms of gas production ramp up? Can you share some numbers of where we expect production to be? Maybe at the exit of FY27 or over the. Over the year. What kind of average output we expect now?
Vivek Chandrakant Tongaonkar
Your question is for kg 98.2 only.
Prabhat Singh
Yes. Yeah.
Vivek Chandrakant Tongaonkar
So for kg 98 by 2, as I have mentioned, we have already installed all the outstanding modules that were pending and we had held up the production of gas till now.
All those work have. Installation of those modules has completed. Currently we are in the process of paying them up and the commissioning, etc. Would take place subsequent to that. The wells would be hooked up to the platforms and they would start to flow. So we expect that the gas flow from these wells should start from the next quarter which is from April to June onwards. And the gas would be ramped up. Coming towards the end of financial year 27, you would expect that this gas quantum should increase to 5 to 6 mm SEMD. Got it.
And so the peak guidance continues to remain at around 7 to 8. And it will happen sometime. Yes, it continues to remain in that range.
Prabhat Singh
Okay. Oil production, sir, is already at around the level that we. I mean it is around 25 to 30,000 as of now.
Vivek Chandrakant Tongaonkar
It is around those levels. Once all these works are completed, we do expect that the oil production also should stabilize and we should have certain additional production coming up.
Prabhat Singh
And the peak there was guided to around 40,000 barrels, is that correct?
Vivek Chandrakant Tongaonkar
Yeah, 35 to 40 we had. 35 to 40 we had mentioned.
Prabhat Singh
Okay. All right. The second question was with respect to Sir Opal, can you just share some numbers in terms of how performance has been in this quarter and any guidance you can share
Vivek Chandrakant Tongaonkar
for Opal, it has now stabilized. Operations are going on. Well, we have been performing. They have been operating at more than 90% of that capacity. They have also they have. The average Capacity utilization in Q3 was nine months. So nine months was the 92%.
Prabhat Singh
Okay. Revenue from operations was 11,000 plus crores. Any ebitda numbers?
Vivek Chandrakant Tongaonkar
353 for the nine month period. The 11,000 crore was also for the nine month period, right? Yeah.
Yes. So after already. Right. This is for. No, just one correction. 11,000 was for previous year. For this year it was 9,790,790 crore was the revenue and 350 crore all was the EBITDA for the nine month period. Right sir? Yeah. Yeah. Yes. So.
Prabhat Singh
Right. So just wanted just a small follow up here. After all the cleanup that has happened. In terms of the debt and conversion, what is the net debt now? That is still sitting on opals book. As of now it is around 23,24,000 crore. So is there any other measures that we are looking to do sir or.
Now we expect that the profitability is good enough to service the interest cost which again probably would still be a few. You know around 10001200 crore on the books. So
Vivek Chandrakant Tongaonkar
as far as the profitability is concerned we do expect that the profitability should increase. Because the capacity utilization should also move up from now onwards. Now that everything has been stabilized even the petrochemical prices have started to move up. And therefore the future for 27 we expect that the performance should be much should be more positive than this previous year than this current year. So we don’t expect to have to infuse any more capital into this as of now sir.
No, no. We are not expecting anything on that. One last housekeeping question sir. Any CAPEX guidance and production guidance for FY20 overall so broadly? Broadly ONGC will continue to have that CAPEX of 32 to 33,000 would remain on exploration as such. Exploration production as such. And for production also we’ll just give you those figures. Oil and gas is 52.5 million. Sorry sir, I could not get. Is that 42.5 million oil and oil equivalent is including oil and gas put together 42.5 million tons for FY27. This is standalone numbers right? Or standard production.
Prabhat Singh
Okay, thank you sir for the detailed answers.
I’ll come back. Yeah. Thank you.
operator
Thank you sir. The next question comes from Varadarajan from Antique limited. Please go ahead.
Varatharajan Sivasankaran
If you can give some idea about the discoveries during the nine months which you can actually put in number two.
Vivek Chandrakant Tongaonkar
So reserve accretion figures you’ll be able to give on the yearly basis only. We normally do that on a yearly basis. We have had discoveries during this nine month period. If you want the total number of discoveries we give that separately. Prakash would be able to give it to you separately. We have been reporting a Shawna. This is as such and any update on the ovl especially Venezuela and Mozambique. So on Mozambique the force measure has been lifted already.
Work has started on ground over there. Work has started full fledged over there on ground. So it is on track to start production from 28 onwards. LNG production from 28 onwards. Venezuela CAPEX is same. There’s no further increase of on the Capex now another on Venezuela. Yes on Venezuela we understand that the US government is progressively lifting sanctions or is in the progress of liberalizing the trade from Venezuela and maybe allow other countries also companies also to start operations over there. We are awaiting on those instructions as such but the movement is in the positive direction and we are hopeful that we should be in a position to restart our operations once the on ground and US sanctions get lifted totally.
Sakhalin. Money due to 500, 550 million. $550 million. That is the dividend that for Saklin Saklin we continue to move ahead along with the Russian government also and with the help of the Russian and the Indian government we are moving ahead. We have been advised that our share of equity has been secured in that company. So which is a very positive step as far as ONDC OVL are concerned and we are hopeful that during this coming year we should be in a position to have a share of our held up dividends etc. So operations and otherwise operations continue to happen over there in suckling.
So production is happening over there. So that is not a issue. For as far as the production part, operational part is concerned there is no change in the shareholding. It would continue to be 20% off. One last thing about the production targets issue guys. You can grow the breakup of oil and gas separately as well and we possibly have 28 hours. Yeah, yeah. This oil we are planning to produce near about 21 million tons and gas is 21.5 million tons. This is a breakup between oil and gas put together 42.5 million tons and we plan to increase the production more than what we are planning for 26, 27.
We are probably on that and we’ll be.
operator
Thank you sir. The next question comes from Mayank Maheshwari from Morgan Stanley. Please go ahead.
Mayank Maheshwari
Thank you for the call sir. On the production side can you just. Give a bit of details around what’s going on for the rest of the blocks apart from KG on production ramp as well as I think we are still seeing a consistent challenges especially on the JV side on gas from the production perspective as well. So what’s going on there as well? If you can give us a bit of an idea, what are you expecting for this for fiscal 27 around production?
Vivek Chandrakant Tongaonkar
Yeah, production figures. Morning. Just hold on. Yeah. In the MH field already we have engaged the tsp that technical support service provider BP and they already started giving the advice and we have planned a number of wells to be drilled as identified jointly by ONGC and BP and we are seeing the positive output from that area.
So that is giving stability to our ONGC production. Similarly for Milan Hira and dnss oil production are more or less steady is there. So it is giving desired production what we envisage. And similarly for onshore cliffs were Ahmedabad and Mehtana asset. They are there, we are drilling number of wells as targeted and there also production is stabilized. So as such we are very confident of achieving the target set for this year and as well as for next year’s 2627. Additionally as DoDP project which is Daman Afshar project is on track, we are already confident that in the next quarter gas should start flowing from this.
Sorry from March itself this would start flowing. Gas would start flowing from that project. DSF project comes up for the next year last quarter. So that is also on track. So these are the two projects which are going on well and would provide upside, immediate upside. Apart from that KG basin new guest which is about to come up.
Mayank Maheshwari
Thank you for that. I think on BP technical support that you have got, can you give us a bit more details around how much have you been able to kind of arrest the decline, what is going on there and what are the positive outcomes that we have seen around that?
Vivek Chandrakant Tongaonkar
Yeah, so the decline has been.
We can say if I will stick my neck out and say that it has been arrested because it is too early days. But yes, we have seen an uptick coming up in the production that we are getting from MH field where we have TSP or BP working with us is higher than the. It is about more than 100% that we had what we had envisaged. So that production uptick has started to happen and we expect that this should improve over the coming quarters. So BP’s contribution has helped us increase oil and gas from both MH from both from the MH field and it has been.
MH feed has given us about nearly 7% higher MH feed only. I’m not talking about business. 7% higher than what we were expecting in this POC quadrant than what we were expecting earlier on. So it has been a positive play as far as we are concerned. Is it fair to say that NH field where you had 8 to 10% decline rate is now only 2, 3%. Is that the right question? It is becoming positive.
Mayank Maheshwari
Okay.
Vivek Chandrakant Tongaonkar
By the quarter end I would be in a better position to give you the figures, the percentage wise and all that.
But it is already done. Got it. So the second question was related to costs. You Emphasized on how you’re trying to control costs and then I think previously the CM we had talked about that as well. So in terms of targets that you had given earlier on cost controls, how much of that have been you’ve been able to kind of get to and what you think will get achieved in 27. So those targets have not been met because the year is not yet closed or the period that we are talking about has not yet completed.
But we are on track to do that. We have reduced our inventory. We are also taken structural steps to reduce costs in the long run. We have also started off with Tipawa port operations which reduces our logistics cost as far as the deployments are concerned. For the northern part of Mumbai High field we have also optimized on the diesel consumption and actions have been taken over there. We have been taking action on reduction in our cost as far as manpower security is concerned. So those things have already started to translate into savings which would be reflected in the annual figures.
As such we are also transitioning to renewable energy power, our own generated power or green power that we will be using which will reduce our power bill also. So all these are on track and results should get reflected in this annual or this last quarter onwards further on. Thank you. And if you see in spite of the crude prices going down very substantially, we have been able to report positive figures both for the third quarter as well as for the nine month period. Yes, thank you sir.
operator
Next question comes from Sabri Hazarika from MT Capital. Please go ahead.
Sabri Hazarika
Yeah, good morning. So I have few questions. First one is there has been some decline on the share of US gas from 21 to 18 as per your press release. So I mean can you explain give more color on that. Just one sec. Your point was that it has gone down from 21 to 18%.
Vivek Chandrakant Tongaonkar
Yeah, I mean what you mentioned in the presidency. So 18 is on the basis of nine month production. What it is, What I was referring was that 1821 was on the six monthly basis. Now if you consider that nine month production on that basis it is 18%.
Sabri Hazarika
Okay. And it is also on revenue I have seen. So it’s fine. Yeah. Second, second question is on this I think the director production in the India Energy we mentioned some figure 4000 parents per day of incremental production from the BP TSP. Could you clarify this? It is too early to actually.
Vivek Chandrakant Tongaonkar
So as I mentioned earlier to an earlier reply that we have already seen positive results for MH field because of the tsp. The quantification, final quantification of which we will be in a position to give you at the end of this year or during the annual figures as such.
But yes, there has been a positive development in Mumbai high speed both for oil as well as gas.
Sabri Hazarika
Got it. Third, small question. What was the nine months capex spend on capex for the company?
Vivek Chandrakant Tongaonkar
So we have spent around 24,000 crore. 24,400.
Sabri Hazarika
Last question. I think it’s a regulatory question. So we see that in the Orda amendment has lot has been stated about fiscal stability and all. But the government basically raised the ESC in the budget and there is no good tax credit also. So is there any relief that the company can seek based on the amendment or.
You have to accept it for now
Vivek Chandrakant Tongaonkar
as far as this GST increase is concerned we have looked. We are. We don’t think it would be possible for us to get that any relief under that ORD act as such. Because GST act is particularly for all the goods. It’s not necessarily for only oil and gas sectors.
Sabri Hazarika
Okay. Anything related to MOP and the could be like that really could be sought. But this is coming from financial.
Vivek Chandrakant Tongaonkar
There was no share and all those things what was happening earlier on those things would not happen. There would be Adobe subsidy or in fall tax or something like that.
Sabri Hazarika
Got it. Got it. Thank you so much.
operator
Thank you sir. The next question comes from Gagan Dixit from LR Securities. Please go ahead.
Gagan Dixit
Thanks for taking my question. I have the question on. On this diamond upside development project. So. So what is the expected gas contribution in FY27 MMS? Okay so full number that’s we expect in FY27. Okay sir.
Vivek Chandrakant Tongaonkar
And because all our project is on schedule. Drilling also is already being done already some wells would get hooked up immediately. So we are from March itself. We will have gas coming up.
Gagan Dixit
Okay sir, my second question is you mentioned four major infrastructure projects that’s nearing completion. So. So which are these and what is the incremental production that they unlock over the time? Sir,
Vivek Chandrakant Tongaonkar
so the project which I mentioned basically there’s those were mainly one was Dhamman what we were talking about which already Sarah spoken.
The rest of the projects were infrastructure projects what we are referring to. Okay. Okay. Yeah that backs from and Daman. Actually if you see it’s already completed around 94%.
Gagan Dixit
Okay. Okay sir. Yeah that’s. That’s on my side. Thanks.
operator
Next question comes from Vivekanandev from Ambit Capital. Please go ahead.
Vivekanand Subbaraman
Thank you for the opportunity. So my first question is on the investments outside of ENP, you had invested in INR Renewables and you had highlighted targets for 2030 in terms of the gigawattage output that you expect from renewables. Can you give us an update on that and the capex commitment for FY27 28 each year? I believe your CAPEX guidance is only for standalone. You can help us with this number. That’s question one. I’ll ask the next one after this.
Vivek Chandrakant Tongaonkar
For INR renewables, it continues to be on track for it is producing electricity from wind farm and solar projects which are there already.
The projects under execution are continue. Continue to be executed. They should be completed within this financial coming financial year. As far as the addition to all the targets that we are dealing with, yes, Those stand at 10 gigawatt stands for 2030 and towards that end we are already looking at projects which we could acquire. There is one project which we are setting up, megawatt project, solar project that we will be setting up as a greenfield on our own ONGC as a as of now. So our targets remain in place and we continue to be on more or less on schedule for this thing.
Would you like to add anything? Okay, yeah, that’s it. Vic, any further you want, is there any CAPEX guidance you want to provide for FY27 and 28 as far as renewable investment opportunities? So these targets would be these for this renewable. It would be more of whenever we get opportunity we would be making those acquisitions or taking over those projects. So we have not kept a target but we are open to for up to 10, 10 gigawatts. We are, we will be working on that. So CAPEX is not a problem for us.
Vivekanand Subbaraman
Okay, the next question is on the petrochemical investment plants.
So you had been in talks to set up a greenfield refinery in Pragraj in UP and more recently I think Chairman sir also commented about the petrochemical story in the India Energy Week. Any concrete plans or any thoughts that you want to share here with respect to the negotiations for the Pragraj land parcel, the investment of day that you are planning and any timeline. Thank you.
Vivek Chandrakant Tongaonkar
We are already working on the various various projects. We are contemplating and working with the partners. But still as of now no concrete plan has been declared. As regards to paragraphs.
There is a land parcel available with bpcl. So we are in the talks with BPCL and with the UP government. The plants are being worked out, techno economics are being worked out but no firm plan as of now.
Vivekanand Subbaraman
Okay, thank you and all the best. Thank you.
operator
Dear participants, if you have Any questions please press star and one on your telephone keypad. Next question comes from Satib Kapoor from Kapoor and company. Please go ahead.
Satish Kapoor
Yeah Namaskar. The question is pertaining to the. The CAPEX part from the psu. When, when we are looking at your ancillary companies. Suppose a pipe manufacturer, the seamless pipes and or the drill price or the rig prices everywhere we have seen softness and also when we look at our historical data there are quarters post December when there is a lot of supply demand being generated from the existing fields in terms of the pipe orders being tendered. So that has not been the case for the current dx. So can you give us some outlook on your spending or your on the pipes for the rigs for the results which are already in output?
Vivek Chandrakant Tongaonkar
Yeah.
So our CAPEX program is on track as we have already mentioned we continue to have capex of 32 or thousand crores for our. For our company and as far as our ordering etc is concerned it is on track for meeting our capex as such. So we are not in a position to comment upon what about the other companies are concerned. Right sir. That when we hear the output part the oil output from the country and all are on declining trend also correct me there if my statement is incorrect. So going forward what should be the output guidance from the management in terms of the existing oil field and also regarding the exploratory streams.
So as we have already mentioned earlier on 42.5 million metric ton is the oil and gas equivalent that we are targeting for this coming financial year.
Satish Kapoor
So I’ll join the queue. Thank you.
operator
The next question comes from Nikash from CLSA India. Please go ahead.
Vikash
Hi sir, thanks for taking my questions. I just wanted a little bit. Morning. Hi sir, just a little bit more details on each of these production projects and there they would take us if we try and visualize quarter by quarter or half by half. So kg98 bar two you said production should start flowing in in a couple of months say starting April to June, that quarter and the ramp up the incremental 5 to 6 I think we are already at about 2 MLS. So the incremental 5 to 6 will take 3 to 4 quarters. Is that what you said?
Vivek Chandrakant Tongaonkar
Yeah, well I said from April till April we will be doing this ramp up etc and subsequently it should start coming up to 3 to 5 mms additional.
Vikash
Okay. Additional fourth quarter. Yes. Yes. Okay. Okay. And Taman, you said the start will happen in March and it will ramp up to the four to five very quickly. I mean within a couple of months itself. Is that the likelihood of
Vivek Chandrakant Tongaonkar
July quarter? It should definitely be there.
Vikash
Okay, so all in all put together, say sometime by between December and March of December 26th and March 27th. So say by July quarter we’ll have an extra four or five from the month. One, two from. You know about that to one or two from KGD 6 by July.
By June, July. And then by somewhere by the fourth quarter we could have a total of incremental 10mms cmd from these projects. Right?
Vivek Chandrakant Tongaonkar
Yeah. Because by that time, because our TSP would be also there. So more positive things we can for your understanding. Vikas is broadly in line. Yeah. And sir, MH field coming back, I just wanted to maybe I was thinking very quantitatively when you people were saying that it has turned positive to the question that what is the decline rate? Is it that you’ve been able to arrest the decline as compared to the earlier rate of over 7,8% decline of the MH field? Is that what you mean by this turned positive? Or it is just that the decline rate has reduced? Because maybe I was thinking too quantitatively about positive.
No, positive is positive in the sense key. It is the decline has been arrested. There has been an addition to that. But figures will give you at the end of the year. Okay. And so just to understand. So this field was declining at or left to itself about 6, you know, 6, 7% every year or more. Was was that the case broadly what happens with you estimate a decline? Because you can’t predict how much the feasible decline over 10 year period. So broadly it was being said that this is declining from 6 to 8% annual basis.
That is what we were expecting this field to decline and accordingly had looked at look for getting measures to arrest that decline. There was a profile which was agreed to between BP and ONGC that this would be the base profile if we do nothing case sort of sure. This is how the production would decline. And now we are getting production. So BP is actually to give us production beyond that decline. What they have committed is 10 million metric tons, 10 years.
Vikash
Okay. Okay. So that, so you can say that the early gains have already started because versus your projected, you know, production levels.
We are doing better.
Vivek Chandrakant Tongaonkar
Yes. So if you remember I have been saying for the last two quarters that we have, we are expecting BP or the TSP to give us positive results from the fourth quarter of this financial year, which we are already seeing it. And for the year end, I think we should be in a position to give it those results. Sure. And new well gas, if not talking about nine months, not talking about six months. But if I were to look at the exit rate right now and maybe whenever the next recognition of incremental production is say April or somewhere, that new well gas would be what share of output say from around April as per your best guess.
So we would expect that every year or every quarter this percentage of Nueva Gas should increase. Because what happens is for the existing fields, we would be working over the existing wealth. If they stop, we will work over them. Or we will be doing certain other jobs, wells and the field. So that becomes the new well gas. What we are expecting is that we should have an increase in 2027. Now we are at 18%. We should increase up to 24, 24% from. From April onwards. Okay. Over the next two period. And sir, just to get a confirmation on the pricing, kg 98 bar 2 will of course be HPHT.
And Dhamma will be what price NWG. NWC pricing.
Vikash
Yeah. Okay. Yeah. Thank you so much, sir. Those were all my questions. Hello. Hello.
operator
Next question comes from Ketan Mehta from Baroda BNP Paribas. Please go ahead.
Kirtan Mehta
Thank you. Sir. For the opportunity in our target for FY27, it’s 42.5 million ton. What are we assuming about the BP at this point of time? Is it a continuing Decline or a 0 decline for FY27? I was asking in terms of the Mumbai high production field, what is our assumption for FY27 when we have shared in our target 42.5 million ton. So for the 42.5 million ton, we have not considered any contribution from this TSP project. That would be.
Kirtan Mehta
Yes, it would be an upgrade. And in terms of the bptsp, would you be also able to share the number of wells that we plan to drill? And what would be the investment during FY27? No, as of now.
No, by. Because that is still work in progress what we are doing. And once that gets finalized then only you will be in a position to communicate about the details about the thing which we should most likely maybe in the annual results. You would be able to tell you. That’s why I said the figures also we would be able to tell you around that time.
Vivek Chandrakant Tongaonkar
Sure. And in terms of the value creation that we are approaching, would we be able to give more color on what kind of numbers we can achieve during FY27 or the production figures? Are you asking efficiency and value creation bucket that we have spoken about on the cost control? Cost control.
So we are targeting that we should be Reducing our costs by around 1000 crores by the various measures that we have undertaken. Now this is additional thousand crore target over and above the measures that has been undertaken during FY26. Is that a right in is a continuation of those measures that we have taken?
Kirtan Mehta
Sure sir. Thank you.
Vivek Chandrakant Tongaonkar
Thank you.
operator
The next question comes from Ramesh, an individual investor. Please go ahead.
Ramesh
Thank you. So if you have to look at your Nugal gas, I understand that it’s going up from 18 to 24%. Right. In terms of the share of overall gas production. So you will get the incremental upside in the gas price on the addition of 6% on a weighted average basis. Right. On your new well gas. Is that the right way to understand that
Vivek Chandrakant Tongaonkar
there would be an increase in the percentage of this new well gas as a percentage of the total quantum of gas produced? Another thing from the nomination fields, another thing is that the price that we get would be 20 higher than the price that is given to the APM gas.
Yeah. So basically in terms of the growth for next year, you’re expecting the share of your newer gas to go up from 18 to 24%. On that additional 6% you will get the market based price based on the. With the 20 higher price. Right. That’s the way to look at that. Right. The market base price, it will be getting up to that 12 of the slope, my Indian.
Ramesh
Okay. And if you look at beyond 20, beyond 27, is there any further increase possible in the share of the new world gas?
Vivek Chandrakant Tongaonkar
Yeah, normally what we are expecting that every year we should have additional incremental gas, new well gas coming up from this nomination field.
Even if you maintain the production? We will, even if we maintain the production, we will have an uptick of around 7% or so. And in addition to that, let me tell you, currently it is at 6.75 from April 1st. That billing will also go up by 25 cent which will be at $7.
Ramesh
Okay. Okay. The second thought is if you look at your segment numbers, the petrochemical loss has come down. So do you have any line of sight in terms of when you would be able to report a positive number for the segment results from the petrochemical segment? Given the kind of efforts you have put into, you know, restructure the feedstock and improve the product mix.
When do you see that happen?
Vivek Chandrakant Tongaonkar
With this petrochemical prices moving up and with the other costs under control, we are quite hopeful that we’ll continue to be EBITDA positive for the the full year next year and hopefully we should be turning the corner also. Would that be visible from the first quarter itself or more likely from second half? EBITDA positive. We already EBITDA positive currently also. So we kind of continue to do that whether we turn the corner in the next quarter or the next year or subsequent. That would depend partly also on the petrochemical price as such.
Ramesh
One last sort of my squeeze in on the E10 sourcing arrangement you have with the E10 ship and the agreement with Patron LNG. So I I know you can’t possibly get into the commercial terms but in terms of the ethane sourcing are you in a you know position to confidently have line of head in terms of the quantity you want and what would be the, you know, pricing mechanism for that? Would you import it on a CIF basis because you have the ship or how would you, how would you go about, you know, fixing the commercial terms? And that would have an impact on the economics of using ethane for your petrochemical production so broadly in terms of the availability of the required quantities, what proportion of the naphtha you can replace and what would be the broad approach to the pricing?
Vivek Chandrakant Tongaonkar
Well let me come back to you see the OPA plant uses basically two feedstocks, 60% naphtha, 40% etane.
So we are trying to engage engage this 40% design beyond 2028 terminal part has been fixed, fixed shipping arrangement has been made and we are in the process of process of fixing up the sourcing issue. So the quantity would be of the order of 600km pricing and all this we will declare at a later date.
Ramesh
Thank you very much. Wish you all the best.
Vivek Chandrakant Tongaonkar
Thank you.
operator
The next follow up question comes from Saket Kapoor from Kapoor and Co. Please go ahead.
Satish Kapoor
Hello. Yes yes just I’m referring to two there are new discoveries for Suyamani and Virgin money. So where are we said in terms of the exploration activities and also for the Mahan Basin? I think so. Some discoveries were made in the M&BWHP 2018 block and so secondly we had some some tie up with the Mr. BTK and Kiata your old Hamari oil field there you substrate well mayhem progress. Kara Capex. Hame.
Vivek Chandrakant Tongaonkar
Coming to your first question on Suryamani and Vajramani we’ll have regarding this budget money and query money the oil potential we have analyzed and being a marginal field we are evaluating various options including a new way of installing the platforms which comes to techno commercial viable.
It is the best cost. So the Suryamani and Vajramani are both in the western offshore part of our field. Regarding Manadi Basin, what was your question that what is the discovery as such?
Satish Kapoor
Yes. And when are we trying to explore
Vivek Chandrakant Tongaonkar
so discovery or the development part of it will take some time. We are currently doing that. Development plans are being made up. Once those are finalized you will be in a position to indicate how much is the cost or the CAPEX that you will be incurring for these discoveries to be developed fully. These are still in the preliminary stage and maybe in the next year we would be in a position to have our CAPEX plans formed up.
We have to drill some belts, etc. So all those things will be finalized and then accordingly we’ll develop prepare the development plans. In my previous question also I have inquired about what kind of order tendering we have done in terms of the single pipe segment. If you can give me comparable numbers for the current financial year with the previous year and for going ahead. What have we outlined in terms of capex that will be attributable to the this category? I think these are consumables for us. If you could just address on the same as of now I would not be in a position to give you those figures offhand as such because normally an analyst call will give you all details about what are the major plans etc.
So we restrict. We are. We don’t have those details with us. You’ll have to get it all.
Satish Kapoor
Okay.
operator
The next question comes from Vivekanandesh from Ambit Capital. Please go ahead sir.
Vivekanand Subbaraman
Thank you for the follow up opportunity. So as far as OVL is concerned can you give us an update on the dividends that that you expect from there and any, any status on the on the money that that you should have by now repatriated to India. What is the status of that? Given the geopolitical tension I believe there was some money that was stuck there. That is question one and the second one, if you could repeat the update on the new well gas revenue contribution. I think Sabri had asked earlier that you had mentioned in the 1H results that the revenue contribution was 21% but in nine months the revenue contribution declined to 18% suggesting meaningful fall in new oil gas revenue contribution.
Yeah, those are my two questions. Thank you.
Vivek Chandrakant Tongaonkar
Okay, just hold up. Just hold on. Veghanji. We do have Mr. Ashree Gupta who is MD of ONGC Videsh so he would respond to your query. Very good morning to all of you. The question was asked earlier and as we said that our interest in the Sakhalin Project is secured and we are in the project. The productions and operations are normal. Our some the standard dividends of Bangkok from the other field which we are there that has also been utilized for our internal resources. So we are okay in that part of the world and it’s now more or less normal.
Yes, the geopolitical tensions are going on. But we do hope that there will be a resolution sooner than later. Regarding nwg. Just give me a minute. Nwg 528 out of what was mentioned earlier was as was already clarified. I think that key it was on the H1. The 21% was on the H1 figure and this 18% is on the nine month figure. So for the H1 we had about 3352 crores to be precise as the N gas revenue upon a total revenue of 15,000 odd which comes out to around 20 21%. Whereas in this case in the nine months it is 5,000 plus crores of Nueville gas upon a gas sale of 23,000 or 24,000 or which comes out to 18%.
So there has been incremental addition to the new well gas. But as a percentage of the total gas revenue it has percentage has come down. It is more of statistics than. But it moves upwards. Why has it come down? We will just put out that NWG gas sales figure also. So that that should help you out to work out. Okay. Yes, yes, I think that would be more helpful because I think might be related to HPHT contribution maybe. Yeah, that’s also there. It is possible but yes, it would be great if you can figure that number out.
Vivekanand Subbaraman
Okay, thank you so much.
Vivek Chandrakant Tongaonkar
Okay, thank you.
operator
The next question comes from Somaya V from Avendus Part. Please go ahead.
Somaiah V
Thanks for the opportunity, sir. So the question is on the production output for FY27 the growth that we are building on a YOY basis. So if you could just help us with one. What is the natural decline rate that gets built in? 2 in terms of projects Daman and KG Bhasan are the two major ones that we are factoring in for growth.
Vivek Chandrakant Tongaonkar
We’ve already mentioned this thing I repeated for kg. We have already mentioned that all our modules have been installed and now we are doing the FUCA commissioning etc will be carried out. And from this next year onwards we should have the gas flow coming up and we would have 4-5 mm FTMD from kg basin in the next year For Dhamma Upside also we have mentioned that our wells have been drilled are under process rail.
We are in process of doing the jacket and well, platform installation, etc. We are expecting first gas to come in from this March itself and for the next year we would have again another 4-5 mm SEMD of gas coming up from Damana project. As such, as far as the targets are concerned, whenever we give the targets those, we do factor in whatever other likely reductions or expected declines for those fees and the measures that we are going to take. So it is not that you would have just a reduction coming up in all the fields.
There would also be actions that would. You would have taken billing of bells, you would have have done urs etc. Which would take care of the targets that are to be achieved.
Somaiah V
Just want to understand what would be the blended portfolio level, what would be the decline?
Vivek Chandrakant Tongaonkar
So broadly we consider. You can consider that this would be around depending upon the field this can be around 6 to 7 or 8% declines on normal basis. But things do behave differently. If you see other fields at other places also declines have been very sharp. It depends upon the field, it depends upon how much you are extracting, it depends upon what processes you are using, vintage of the field, etc.
Many factors which contribute to the decline decline in production for fields as such. Broadly we have been considering it to 6 to 8%. So the question on the projects was are these two the only major projects that we are considering in FY27 or is there a few more projects that gets built into this FY27? So DSS2 project is coming up which is again a gas in the west coast and we are expecting it to come on stream in the last quarter of the next year. Thank you.
operator
Thank you sir. There are no further questions. Now I hand over the floor to Sri Vivek Pangonkar for closing comments.
Vivek Chandrakant Tongaonkar
Yeah, thank you very much Madhuri. Thank you all participants for being on the call with us and we do hope that we would have replied to your questions. Any further details you can be in touch with our IRC over here. I would like to mention that as we have been saying earlier in different previous calls that tsp we are expecting positive results or we would be getting certain results in the last quarter of financial year 26. I have already mentioned we are also getting positive results and we will be in a position to quantify that at the end of this year.
Secondly, our KG Basin T8X2 project which had been delayed because of certain reasons which were has now. We have now been able to install all the modules over there. The hookup commissioning works will be underway. And we do expect gas to start flowing from the immediate in the beginning of this coming financial year. DUDP is also on track. Our gas we expect to flow from this March itself. So those are upsides that are there. And I think one major point, one major decision which the board has also taken is to announce a dividend of 6.25 rupees per share.
Considered with the first internal dividend of 6, it is a total amount that we are giving is 12.25, which was the dividend that we had paid for the previous year. So on an interim dividend basis, this is the highest cumulative interim dividend that we have paid. It signals a very strong. We are very quite positive about the future of this company and we are also taking care of our stakeholders so that they get optimum returns also. So we do hope that this would, the stakeholders would also welcome. This was one long standing demand from the investors also about the returns or the rewards that are given to the shareholders.
And we think we would be in a position to reward the shareholders in the future also. Thank you very much.
operator
Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and producing doorsebha’s conference call service. Disconnect your lines now. Thanks and have a pleasant day.