Shares of ONGC, one of India’s largest oil and gas companies, are trading today, January 10 on a positive note. As of 12:02 PM IST, the company’s stock is trading positively, up by 1.09%, at Rs 265.95 per share. The stock today opened at Rs 264.00 and reached a high of Rs 266.50, during the intraday trading session.
The stock is currently trading above its 5-day, 20-day, and 50-day moving averages but remains below the 100-day and 200-day averages. This surge came after a series of positive developments for the company. One of the focal points is this recent surge in the stock price is ONGC’s recent partnership with BP to enhance production at the Mumbai High field, India’s largest offshore oil and gas field.
ONGC’s partnership with BP
One of the reasons behind this uptick in the share price of the company is its move to enhance production from its flagship Mumbai High field. ONGC has partnered with UK-based BP as a technical service provider (TSP) to increase crude oil and gas output significantly over the next decade.
According to ONGC, the partnership could lead to a 44% jump in crude oil production and an 89% boost in gas output from the Mumbai High field. The company estimates that this could generate additional revenue of up to $10.3 billion over the contract period, with visible gains starting from FY26 and scaling up by FY28.
“Mumbai High (MH) is an Oil Producing Field of the Company, located in the Mumbai offshore area, was discovered by ONGC in 1974 and started production in 1976. While the Company focuses on unlocking the potential of new hydrocarbon resources through green-field projects, enhancing recovery from mature fields like MH also remains a top priority for increasing domestic production,” added the company in a BSE filing.
ONGC: Antique Stock Broking reiterates Buy
Antique Stock Broking has reiterated its “Buy” rating for ONGC, revising the target price to Rs 366 per share. The revised outlook stems from the company’s partnership with BP. Analysts believe the technical service provider (TSP) agreement could boost oil and gas output.
ONGC Stock performance
ONGC delivered over 24% return in 1 year. The company has a market capitalisation of Rs 3.35 lakh crore. Over the past 52 weeks, the stock has seen a high of Rs 345.00 and a low of Rs 209.70 per share. Despite the volatility, the stock has offered steady returns to investors, with a P/E ratio of 7.44 and a dividend yield of 4.69%.
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Moreover, ONGC has posted strong returns, with its stock price rising by 52.70 points over the past year, a 24.85% increase as of the latest update.
About ONGC
ONGC is India’s largest public sector company in the oil and gas industry, and plays a crucial role in the country’s energy security. Founded on August 14, 1956, and based in New Delhi, ONGC works under the Ministry of Petroleum and Natural Gas of the Government of India. The company produces around 70% of India’s crude oil and about 84% of its natural gas, making it a key contributor to the country’s energy needs.