{
  "id": 4673797,
  "title": "ONGC to enter oil trading, build strategic reserves",
  "url": "https://urgent.news/2026/08/31/ongc-to-enter-oil-trading-build-strategic-reserves",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-31T15:25:20.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/industry/energy/oil-gas/ongc-to-enter-oil-trading-build-strategic-reserves-as-upstream-remains-core/articleshow/133656929.cms"
  },
  "original_language": "en",
  "account": "New Delhi: State-owned Indian oil giant Oil and Natural Gas Corporation (ONGC) is set to venture into crude and petroleum-product trading, as well as construct a new strategic petroleum reserve, in a bid to bolster supply security and maximize value from its energy assets. ONGC's trading arm is slated to commence operations by the end of the year, according to Chairman and CEO Arun Kumar Singh. The unit will cater to the corporation's own crude and product needs, while also exploring third-party business opportunities.\n\nInitially, the trading desk, which ONGC is contemplating establishing in Dubai or Singapore, could generate revenues of around USD 1 billion annually through enhanced crude sourcing, freight management, and risk management, Singh stated. The process of setting up the trading desk is nearing completion, with 95% of the work already accomplished. The partners and location for the trading desk have yet to be finalized.\n\nThe new trading unit will coordinate with ONGC Videsh Ltd, the organization's overseas investment arm, and ONGC Petro Additions Ltd. This move will consolidate ONGC and its group companies under a single commercial interface in global oil markets, replacing the current fragmented model where individual enterprises source, sell, and procure crude and feedstock separately.\n\nIn addition to trading, ONGC is developing a 1.75 million tonnes strategic petroleum reserve in Mangalore, at the government's behest. The project, already approved by ONGC's board, will augment India's dedicated emergency crude storage capacity by approximately one-third, from its current 5.33 million tonnes. The facility will be built on ONGC's balance sheet, marking a departure from the conventional government-funded strategic storage model. Half of the reserve's capacity will be reserved for strategic use under government plans, while the remaining portion will be utilized commercially with ONGC's permission.\n\nDespite these expansions, Singh emphasized that exploration and production will remain ONGC's central focus. The company plans to invest Rs 1 lakh crore in drilling 87 wells in deepwater by 2031. The government's recent approval of Rs 84,000 crore over five years to support offshore exploration is anticipated to alleviate the financial burden on ONGC as it pursues more expensive deepwater resources. This initiative, known as Project DeepX, aims to double ONGC's deepwater drilling efforts over two years, in alignment with the National Offshore Exploration Scheme. The scheme plans to contribute to a reserve addition of over 600 million tonnes of oil equivalent by 2030-31, as per the petroleum ministry.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}