Speaking to CNBC-TV18 at India Energy Week 2025, Singh highlighted that India’s energy appetite remains insatiable despite global geopolitical uncertainties.
“Geopolitical situations are difficult but not tough, and this too shall pass. Our main issue remains our insatiable energy demand,” Singh stated.
He emphasised that while the world has an ample supply of oil, artificial restrictions—such as sanctions, trade limitations, and geopolitical tensions—are impeding free energy flow. “If the world had been truly global with no friction, with no limitations on energy flow, then it would be a world of surplus. But artificiality doesn’t last long,” he added, confident that such constraints would eventually ease.
Singh also touched upon crude oil price volatility, suggesting that ONGC is comfortable with oil prices above $70 per barrel. “We are not the highest-cost producer; we are maybe a medium-cost producer. So, both the country’s interest and our interest get balanced in a $70 per barrel environment,” he said.
ONGC has entered into a significant tie-up with BP to boost domestic oil production to enhance production from Mumbai High, ONGC’s largest oil field. “BP’s understanding of such reservoirs is seemingly better than ours due to their size and global experience. This tie-up is aimed at a substantive increase — over 60% — in production from Mumbai High,” Singh explained.
Edited Excerpt:
Q: We are looking at crude oil prices in a range, but they are also very volatile within that space. At ONGC, what range are you comfortable with?
Singh: Anything above $70 per barrel is okay with us. We are not the highest cost producer; we are maybe a medium cost producer. So, the country and our interests are balanced at $70 per barrel.
Q: What will the tie-up you’ve done with BP bring to the table?
Singh: The BP tie-up is to enhance our production from our biggest reservoir, Mumbai High. Their understanding of such reservoir is better than ours because of their size and world experience. So, we did this tie-up basically to enhance our production substantively. It is not an incremental slight increase. We are looking at an increase of over 60%, a substantive increase in our production from Mumbai High. So, with that aspiration, we got into the tie-up with BP.
Q: While there has been lots said about when the oil demand will peak out and the way countries are trying to make their mix, would you say it’s more regional trying to get into the global as a space? Every country seems to be trying their own mix. How would you describe India’s mix currently, and where are we headed?
Singh: We will continue to grow in oil. Last year we grew by 3%-4%. I don’t foresee growth below 3% to 4% for India, at least for the next 10 years.
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