‘As long as it’s viable’: ONGC to continue to buy Russian oil; acknowledges ‘instability’ from US tariffs

ONGC group refineries will continue purchasing Russian oil as long as it is financially viable, chairman Arun Kumar Singh said on Friday. “As long as it’s economical, we will keep buying every drop (of Russian oil) that comes to the market,” Singh told reporters, as quoted by Economic Times. Its subsidiaries Mangalore Refinery and Petrochemicals Ltd (MRPL) and Hindustan Petroleum Corporation Ltd (HPCL), which together manage over 40 million tonnes per annum of refining capacity, have been steady buyers of Russian crude since the Russia-Ukraine conflict began. Singh stressed that Russian oil imports face no US sanctions, nor has India imposed any restrictions. However, he acknowledged that the Trump administration’s 25 per cent additional duty on Indian exports over Russian purchases has created “significant instability” in global markets, complicating commercial planning. Looking ahead, Singh said ONGC is prepared to acquire overseas upstream assets if opportunities arise. “If assets come at a reasonable price, we have a thinking that we should go for it,” he said, adding that the company’s strong finances position it well for such moves. On the group’s Mozambique natural gas project, Singh reported that after long delays, production is expected to begin by 2028. He also forecast oil prices stabilising near $65 per barrel, noting, “It’s hard for it to fall further.”

Separately, ONGC Videsh managing director Rajarshi Gupta said about $350–400 million in dividends from Russian operations remain stuck due to banking restrictions. Singh also pointed to ONGC’s potential role in nuclear energy, saying the company has the required technology but is awaiting clarity on the legislative framework.