BSE Oil & Gas index up 2%; ONGC, Oil India, GAIL surge up to 4%

BSE Oil & Gas index surged 2 per cent in Wednesday’s intra-day trade, driven by an over 3 per cent rally in state-owned upstream companies Oil and Natural Gas Corporation (ONGC) and Oil India on the back of heavy volumes.

 

At 02:54 PM; the BSE Oil & Gas index, the top gainer among sectoral indices, was up 1.5 per cent, as compared to a 0.4 per cent rise in the BSE Sensex. Oil India was up 3.5 per cent to ₹379.01, while ONGC gained 3.4 per cent to ₹240.65 in intra-day trade. Gail (India), Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Petronet LNG were up in the range of 1 per cent to 2 per cent.

 

 

ONGC and its partners won the most number of blocks — 15 — in the ninth round of the national oil and gas asset auctions. Under the Open Acreage Licensing Policy (OALP) Round-IX, ONGC won 11 blocks on its own and the four others with partners, the government announced on Tuesday.

 

British energy major BP, along with Reliance Industries and ONGC, has secured an offshore block off the Gujarat coast in the latest exploration bidding round. Oil India won six blocks on its own and three in partnerships with ONGC. 

 

The bidding round offered 28 blocks covering a total area of 1.36 lakh square kilometres. A key highlight was the joint bid by Reliance-BP and ONGC for the Gujarat offshore block, ICICI Securities said in a note.

 

Oil India, in an exchange filing, said the company secured 9 blocks under OALP Round IX, adding over 51,000 Sq. km to its exploration portfolio, with 6 blocks as sole operators and 3 as consortium partners. This milestone propels Oil India’s total exploration acreage from 60,000 sq. km to 110,000 sq. km, registering a remarkable 85 per cent growth.

 

Backed by the Government of India’s transformative policies — including the Hydrocarbon Exploration and Licensing Policy (Help), ease of doing business reforms, and the unlocking of ‘No-Go’ areas — this achievement signals a new era of growth, confidence, and capability, Oil India said.

 

Meanwhile, the government also released an online portal for stakeholders to discuss the Draft Petroleum and Natural Gas Rules, 2025.

 

These rules operationalise new substantive provisions introduced by the Oilfields Regulation & Development Act, including renewal, extension and unitisation of leases, sharing of production and processing facilities, dispute resolution, site restoration, sound management of mineral oils, and decarbonisation, the Business Standard reported.

 

Meanwhile, analysts at Elara Capital expect ONGC’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) to grow 8 per cent year-on-year (Y-o-Y) in the March 2025 quarter (Q4FY25E) amid lower statutory levies. Crude oil realisation for ONGC is estimated at $73.5 per barrel, flat Y-o-Y and up 1 per cent quarter-on-quarter (Q-o-Q). Oil India’s Ebitda is likely to fall 4 per cent Y-o-Y due to reduced offtake. Oil India’s crude oil production is likely to be flat Y-o-Y, while gas production is set to grow 2 per cent Y-o-Y.