Oil India surges 16% in 2 days, ONGC at 15-month high; here's why

ONGC in an exchange filing said that the rise in the company's share price was attributable to the increase in the world crude oil prices.

Oil India, ONGC share price today

 

Share prices of state-owned upstream companies continued their upward march with Oil India and Oil and Natural Gas Corporation (ONGC) gaining as much as 6 per cent on the BSE in Thursday’s intra-day trade in an otherwise weak market. In comparison, the BSE Sensex was down 0.54 per cent at 81,901 at 09:46 AM.

 

Oil India hit a fresh 52-week high of ₹519.80, surging 6 per cent in intra-day deals on the back of near two-fold jump in the average trading volumes. In the past two trading days, the stock has zoomed 16 per cent. It now quotes at its highest level since November 2024.

 

Share price of ONGC hit a 15-month high at ₹275.75, gaining 3 per cent on the BSE in intra-day trade. In the past two trading days, the stock has soared 11 per cent.

 

Why are ONGC, Oil India stocks up for second straight day?

 

ONGC and Oil India are engaged in the business of E&P (Exploration and Production) of Crude Oil and Natural Gas.  The prices of crude oil and gas are dependent on the world market and geopolitics.

 

There has been an increase in the world crude oil price from ~ $60 (on Jan 07) to ~$67 today (on Jan 28), an increase of 10.5 per cent in the last 3 weeks.

 

ONGC in an exchange filing said that the rise in the company’s share price on Wednesday was attributable to the increase in the world crude oil prices.

 

Crude oil prices ended on Wednesday on a positive note gaining almost 1.5 per cent on concern over supply disruption and decline in the US crude oil inventory.  ALSO READ | Q3 Results Today

ONGC, Reliance Industries sign resource-sharing pact

 

ONGC and Reliance Industries have signed an agreement to enable resource sharing for deepwater offshore E&P operations on India’s East Coast, particularly across the Krishna Godavari (KG) basin and Andaman offshore, marking a major step towards cost optimization, faster execution, and improved asset utilization in complex deepwater projects.

 

ONGC on clarification said that the subject agreement is aligned with a forward-looking initiative facilitated by the Oilfields (Regulation and Development) Amendment Act, 2025 (ORDA Act 2025), introduced by the Government of India, which creates a clear enabling framework for E&P operators to share infrastructure and facilities, both onland and offshore, for more efficient development of oilfields and production of hydrocarbons.

 

This agreement is basically intended to facilitate collaboration for development of India’s Hydrocarbon sector, the company said.

 

Meanwhile, with BP led Technical Services Provider (TSP) advancing for redevelopment of the MH Field, scheme for revival of KG-98/2 and combined Western Offshore Development Plan, ONGC is strategically positioned to counterbalance declines from mature fields. Accelerated monetization of new hydrocarbon discovery alongside a sharper focus on deepwater and ultra-deepwater exploration is expanding ONGC's resource base. 

 

These efforts, accompanied by enterprise-wide cost optimization and digital integration work across workflows, are expected to boost operational efficiency and reinforce ONGC's resilience in the quarters ahead, ONGC had said in the Q2FY26 earnings conference call.

 

Numaligarh Refinery capacity expansion to be completed by year end

 

Numaligarh Refinery Ltd (NRL) will for the first time start processing imported crude oil after its capacity expansion to 9 million tonnes per annum from current 3 million tonnes is commercially completed by end of the year; PTI reported quoting Oil India chairman and managing director Ranjit Rath.

 

NRL, a subsidiary of Oil India, currently uses mainly domestic crude as feedstock for making fuels like petrol and diesel.

 

NRL was supposed to commence operations of the expanded refinery capacity (from 3MMTPA to 9MMTPA) in phases from December 2025 onwards. However, the commencement of refinery operations has been delayed.