The Oil and Natural Gas Corporation (ONGC) has set an ambitious goal to achieve net-zero emissions by the year 2038. To accomplish this target, the chairman of ONGC, Arun Singh, has stated that the company will need to invest a substantial amount of Rs 2 lakh crore. This investment will be crucial in transitioning ONGC's operations to be more environmentally friendly and sustainable.
Chairman Arun Singh emphasized that approximately half of this substantial investment, which amounts to Rs 1 lakh crore, will be directed towards projects by the year 2030. Singh expressed confidence in ONGC's ability to secure funding for these initiatives due to its healthy financial position, characterized by low levels of debt. Additionally, the company can tap into the availability of green bonds, which offer lower borrowing costs compared to other financing options.
The envisioned projects encompass a diverse range of eco-friendly endeavours, including ventures related to green ammonia, hydrogen production, solar energy, and offshore wind power. These initiatives reflect ONGC's commitment to embracing sustainable technologies and reducing its carbon footprint across various sectors.
In a noteworthy development, ONGC is poised to commence oil production from its KG basin field in October. This strategic move is expected to contribute to the company's operational growth and align with its broader sustainability objectives.
Rajarshi Gupta, the managing director of ONGC Videsh, revealed that the company is currently awaiting approximately $130 million in dividends from its ventures in Russia. These funds are anticipated to play a pivotal role in financing ONGC's project-related expenditures within Russia.
Furthermore, it was highlighted that the force majeure situation affecting ONGC's significant gas project in Mozambique is likely to conclude within the current year. This could potentially open up new opportunities for ONGC's operations in the region. ONGC is part of an Indian consortium of oil companies with a 30% stake in the Mozambique field, operated in collaboration with France's Total.
This forward-looking approach underscores ONGC's dedication to not only enhancing its operational capacity but also embracing sustainable practices that contribute to a greener and more environmentally conscious future.
