State-owned Oil and Natural Gas Corporation Limited (ONGC), in partnership with BP Exploration (Alpha) Ltd and Reliance Industries Limited (RIL), has formally signed a Joint Operating Agreement (JOA) for offshore exploration of Block GS-OSHP-2022/2. The block was awarded under the Open Acreage Licensing Policy (OALP) Bid Round-IX. The agreement was signed on 28 July 2025 at ONGC’s Deendayal Urja Bhavan, Vasant Kunj, New Delhi, ONGC said in a regulatory filing.
Located off the western coast in the Saurashtra Basin, the block covers an area of approximately 5,454 square km and is classified under Category-II basins. The consortium, with ONGC designated as the Operator, is set to undertake exploratory activities aimed at assessing and harnessing the hydrocarbon potential of the region.
This agreement represents a major step forward in joint energy exploration and underscores the consortium’s unified dedication to strengthening India’s energy security and supporting the country’s long-term energy objectives.
Approval of Rs 5,082 crore true-up for Mozambique LNG project
Earlier last week, ONGC had approved a true-up amount of up to R 5,082 crore to be spent during FY26-27 by its subsidiaries under ONGC Videsh participating in the Area 1 Mozambique LNG project.
ONGC Videsh holds a 16 per cent participating interest in the Area 1 Mozambique project, which is managed through its step-down subsidiaries – ONGC Videsh Rovuma (OVRL) and Beas Rovuma Energy Mozambique (BREML), according to a regulatory update.
The company’s board has approved the receipt of a true-up amount—an adjustment made to account for estimated costs—of up to Rs 5,082.39 crore. Specifically, BREML is expected to incur Rs 1,270.62 crore in 2025-26 and Rs 635.31 crore in 2026-27, the company said.
ONGC’s Q4FY25 performance
Earlier in May, ONGC had released its fourth quarter earnings report for FY25 wherein it had reported a 35 per cent drop in net profit as it realised lower oil prices on almost static output. Net profit stood at Rs 6,448 crore as compared to Rs 9,869 crore in the same period last year. The firm got $73.72 per barrel of crude oil that it produced and sold to refiners for processing into petrol and diesel in the fourth quarter, down from $80.81 per barrel a year back.