The ONGC Joint Venture planned for oil and gas trading is close to finalisation and could be based in Dubai or Singapore. ONGC Chairman and CEO Arun Kumar Singh said around 95% of the work has been completed.
ONGC Joint Venture Nears Finalisation
The ONGC Joint Venture is expected to be finalised by the end of 2026. ONGC is currently evaluating Dubai and Singapore as possible locations for the proposed trading entity.
Singh said the location is still under consideration. The final decision will be based on the trading model planned for the venture.
ONGC Joint Venture to Handle Oil and Gas
The ONGC Joint Venture could handle around 100 million metric tonnes of oil and oil equivalent. The expected volume will include purchases, sales and third-party trading.
The venture will cover oil and gas transactions. It will also be able to trade cargoes that are not produced directly by ONGC.
ONGC Group produced 50.1 million metric tonnes of oil equivalent in FY26. Its refining subsidiaries HPCL and MRPL processed about 43 million tonnes during the year.
ONGC Joint Venture Partner Yet to Be Decided
The partner for the ONGC Joint Venture has not yet been finalised. Singh said the company’s board will take the final decision.
ONGC has previously said that an international oil company could join the venture as an equity partner. The partner would provide international trading expertise.
HPCL and MRPL are also expected to hold stakes in the proposed entity.
ONGC Joint Venture Plan Announced Earlier
ONGC announced its trading venture plan in 2025. The company had estimated that the business could unlock around USD 1 billion in annual value.
The venture was initially expected to begin operations by March 2026. The timeline has now shifted to the end of 2026.
The ONGC Joint Venture is expected to help the company expand its presence in international energy trading.
ONGC Joint Venture Follows Industry Trend
The proposed ONGC Joint Venture follows a wider trend among Indian state-owned oil companies to expand their international trading operations.
Bharat Petroleum Corporation Limited has established a wholly owned subsidiary in Singapore to trade crude oil, gas and petrochemicals. Indian Oil Corporation has also established an arm at the International Financial Services Centre at GIFT City in Gujarat.
The ONGC Joint Venture will have a different structure. ONGC plans to bring an external equity partner into the venture for specialised trading capabilities.
The proposed venture could strengthen ONGC’s participation in global energy markets and support the company’s plans to expand its oil and gas trading operations.
Source: PSU Watch
