New Delhi: In a decisive reaffirmation of its procurement strategy, state-owned explorer Oil and Natural Gas Corporation (ONGC) announced that it will continue purchasing Russian crude oil “as long as it remains economically viable.” Chairman and CEO Arun Kumar Singh emphasized that there are currently no sanctions barring such imports, and reiterated that the decision will remain unchanged unless the government intervenes.
ONGC’s refining subsidiaries—Hindustan Petroleum Corporation Ltd (HPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL)—are long-standing buyers of Russian oil. With refining capacity exceeding 40 million tonnes per annum, these entities have relied on Russian crude due to its competitive pricing.
“As long as it is economical, we will keep buying every drop of Russian oil available in the market,” Singh asserted, signaling that cost considerations, not geopolitics, will guide their procurement decisions. He added that no restrictions from the U.S. or Indian authorities currently exist to compel a shift in this approach.
The remarks come amid mounting international pressure, notably U.S. tariffs targeting Indian imports linked to Russian energy. While the Trump administration has imposed up to 50% additional tariffs on certain Indian goods, Singh dismissed the geopolitical tension, underscoring that ONGC’s operational mandate remains firmly rooted in commercial rationale.
Further signaling ONGC’s forward-looking stance, a top executive of its overseas arm, ONGC Videsh, disclosed plans to establish a centralized commodity trading unit. This proposed unit, still at a conceptual stage, would coordinate the sale and purchase of crude oil and refined products across the ONGC group, aiming to streamline efficiencies and capitalize on the group’s substantial oil volumes.
According to industry estimates, ONGC produces roughly 42 million tonnes of oil annually. Its subsidiaries—HPCL and MRPL—import an estimated 45–50 million tonnes, while ONGC Videsh contributes about 10 million tonnes through overseas assets. In aggregate, the group manages nearly 100 million tonnes of oil, reflecting the considerable scope of its trading potential.
The internal task force considering this trading platform is evaluating both legal and operational frameworks. Should it materialize, the unit could significantly enhance strategic purchasing and selling across the group’s supply chain.
Arun Kumar Singh also highlighted ONGC’s appetite for value-driven overseas acquisitions, especially in volatile markets. Citing historical precedents where companies grew by acquiring distressed assets, he noted that “troubled times don’t last long,” and that if upstream assets become available at reasonable valuations, ONGC would consider acquiring them.
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