Oil and Natural Gas Corporation Ltd
NSE:ONGC
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
US |
|
Bank of America Corp
NYSE:BAC
|
US |
|
Mastercard Inc
NYSE:MA
|
US |
|
UnitedHealth Group Inc
NYSE:UNH
|
US |
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
Pfizer Inc
NYSE:PFE
|
US |
|
Nike Inc
NYSE:NKE
|
US |
|
Visa Inc
NYSE:V
|
US |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
Coca-Cola Co
NYSE:KO
|
US |
|
Verizon Communications Inc
NYSE:VZ
|
US |
|
Chevron Corp
NYSE:CVX
|
US |
|
Walt Disney Co
NYSE:DIS
|
US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
Q1-2026 Earnings Call
AI Summary
Earnings Call on Aug 13, 2025
Net Profit: Standalone net profit fell 10.2% year-on-year to INR 8,024 crores due to lower crude price realization.
Consolidated Profit: Consolidated net profit rose 18.2% to INR 11,552 crores, helped by HPCL performance.
Crude Price Realization: Average crude price realization dropped to $66.13 per barrel from $83.05 last year.
Production Trends: Crude oil production increased 1.2% year-on-year, reversing recent declines; gas production remained flat.
Cost Management: Statutory levies fell sharply by 38% due to removal of SAED on crude oil; focus on reducing operating costs continues.
Guidance: Management expects ramp-up in oil and gas output from the KG Basin in early 2026, with plans to reach 45,000 barrels per day oil and 10 MMSCMD gas at peak.
Opal Update: Opal turned EBITDA positive in the first quarter (INR 13 crores); plant utilization is above 90% and expected to improve.
CapEx: Annual CapEx guidance maintained above INR 30,000 crores, with exploration spend between INR 8,000–10,000 crores.
ONGC reported a standalone net profit of INR 8,024 crores for the first quarter, down 10.2% year-on-year, mainly due to a sharp drop in crude price realization. However, on a consolidated basis, profit after tax increased by 18.2% to INR 11,552 crores, helped by improved performance at HPCL.
Crude oil production rose by 1.2% versus last year, continuing a trend of quarter-on-quarter increases, while natural gas output was almost flat. The KG Basin currently produces over 30,000 barrels of oil per day and about 3 MMSCMD of gas, with guidance to ramp up to higher levels by early 2026.
Falling international crude prices led to a decline in average crude price realization to $66.13 per barrel from $83.05 per barrel a year ago, impacting revenues for both ONGC and OVL. New well gas fetched a 20% premium over the domestic price, contributing to higher natural gas revenue.
Statutory levies dropped by nearly 38% after the removal of SAED on crude oil. Operating costs increased due to higher FPSO charges and LNG consumption, but management outlined several ongoing cost-cutting measures, such as using alternative ports and reducing insurance and manpower expenses. Benefits of these efforts are expected to accumulate through the year.
Progress was highlighted at key projects such as the KG Basin and Daman, which are expected to drive output growth in coming quarters. The technical service provider (TSP) arrangement for the Mumbai High field is underway, with initial results expected in Q4. Two new discoveries were announced, and new well gas is a growing contributor.
Opal turned EBITDA positive in Q1, contributing INR 13 crores. The plant is running above 90% utilization and management expects further improvement. There are no immediate plans for further capital injection or expansion, with a focus on operational stability and debt servicing.
Annual capital expenditure is maintained above INR 30,000 crores, with INR 8,000–10,000 crores earmarked for exploration and substantial allocations for infrastructure and drilling. There is no immediate plan for additional equity infusion in Opal.
Management provided clear production guidance: FY26 and FY27 oil output at 21 million metric tonnes, gas at 21.487 BCM, with expectations for further ramp-up at KG Basin. They also anticipate improved performance at Opal and cost reductions over the coming quarters.
Good afternoon, ladies and gentlemen. I'm Celsia, moderator for the conference call. Welcome to ONGC's Earnings Conference Call for quarter ended 30th June 2025. We have with me today, Shri Vivek Tongaonkar, Director of Finance, ONGC, and team who will interact with investors and analysts to discuss Q1 earnings. [Operator Instructions] Please note that this conference is being recorded.
I would now like to hand over the floor to Shri Vivek Tongaonkar for his opening remarks. Thank you, and over to you, sir.
Yes. Good afternoon, ladies and gentlemen. I'm Vivek Tongaonkar, Director of Finance, ONGC, and I welcome you all in this ONGC's earnings call for Q1 financial year '26. Thank you all for joining us on this call. I'm joined over here by my colleagues from ONGC. Ajay Kumar Singh, is Chief of Corporate Planning; Mr. Yogesh Naik, he's our Chief Corporate Finance; Akhilesh Tiwari, he's our Head of Corporate Accounts; Prakash Joshi and Anand Kukreti from our Investor Relations Cell. We also have Mukul Bhatnagar and Basin Pasari from ONGC Videsh Limited.
ONGC has compiled its financial results for the quarter ended 30th June 2025, which have been reviewed by the statutory auditors. The financial results have already been released on the 12th of August 2025 through a press note and sent to the stock exchanges. This has also been sent to the analysts who are there on our mailing list.
A brief synopsis of the results follows. The company has earned a net profit after tax of INR 8,024 crores during quarter 1 financial year '26 as against INR 8,938 crores during Q1 FY '25. It's a decrease of INR 914 crores, about 10.2% decrease. This decrease in net profit during Q1 '26 is mainly on account of lower crude price realization. The crude price realization was $66.13 per barrel in this current quarter against USD 83.05 per barrel in Q1 FY '25.
Accordingly, the sales revenue in Q1 '26 has decreased on account of lower revenue from crude oil. The decrease is about INR 4,047 crores, and value-added products also is lesser by INR 409 crores, which has been set off by increase in natural gas revenue by INR 1,083 crores as against those corresponding quarter of the previous year. Increase in natural gas revenue is due to increase in ceiling price of nomination gas from USD 6.5 per MMBtu to USD 6.75 per MMBtu and additional revenue from new well gas sales. The incremental revenue from new well gas during Q1 FY '26 is approximately INR 333 crores.
During Q1 FY '26, the expenditure on account of statutory levies was INR 6,073 crores as compared to INR 9,772 crores for Q1 FY '25. So this is a decrease of INR 3,699 crores, about 37.9% or 38% decrease. This is mainly attributable to abolishment of SAED on crude oil, which was effective from 2nd of December 2024. So this SAED amount was about INR [ 29 ] crores in Q1 FY '25. There's also a decrease in average selling price of crude oil from INR 51,768 per metric ton in Q1 FY '25 to INR 42,593 per metric ton in Q1 FY '26.
In Q1 FY '26, operating expenses stood at INR 5,577 crores against INR 5,182 crores in Q1 FY '25. There was an increase in contractual payments by INR 313 crores. These were driven primarily by higher FPSO full day rate charges, which was about INR 191 crores at KG 98/2. Also raw material consumption costs increased by INR 265 crores quarter-on-quarter basis, and this was due to the increase in LNG consumption cost mainly at Dahej C2-C3 plant, which was amounting to INR 244 crores.
The depletion, depreciation and impairment costs for Q1 FY '26 stood at INR 6,531 crores as against INR 5,897 crores during the corresponding period of the previous year. So this was an increase of INR 634 crores. This increase was mainly due to depletion expenditure of INR 211 crores. Out of this INR 211 crores, INR 174 crore depletion expenditure was at KG 98/2. This was due to the cumulative impact of the increase in carrying value ONG or oil and gas assets. Increase in depreciation by INR 393 crores was mainly at Western Offshore. There was also due to the addition of INR 259 crores of ROU assets, which was related to hiring of additional vessels at offshore.
At the consol level, the company has earned a higher net profit, profit after tax of INR 11,552 crores during the first quarter of FY '26 as against INR 9,776 crores during the first quarter of FY '25. This is an increase of INR 1,778 crores, about 18.2% increase. And this increase has been primarily additionally because of HPCL.
During this quarter, again, we have successfully reversed -- we have increased our crude oil production. ONGC successfully reversed the crude oil production decline in Q4 FY '24 and continues to increase production quarter-on-quarter basis for the past 4 to 5 quarters. The stand-alone crude oil production during Q1 '26 was 4.683 million metric tons with an increase of 1.2% over Q1 FY '25. Stand-alone natural gas production was almost flat at 4.846 BCM in Q1 FY '26 as against 4.863 BCM in Q1 FY '25.
ONGC has also declared two discoveries during FY '25 -- for Q1 F '26 in its operated regions. Out of these discoveries, Vajramani is a prospect discovery in Mumbai Offshore. And Suryamani is a pool discovery at Mukta formation in Western Offshore. Gas from new wells continues to be a key contributor with revenue from new well gas reaching INR 1,703 crores in Q1 FY '26.
This has delivered an additional INR 333 crores as compared to the APM gas price as the gas from these new wells is eligible for a 20% premium over the domestic APM gas price. The price for new well gas was $8.26 MMBtu, and for nomination gas was $6.64 per MMBtu. ONGC is actively working to boost output of its new well gas.
Now with the TSP, technical service provider already in place for the MH field, more sharper focus on deepwater and ultra-deepwater exploration, expediting monetization of new hydrocarbon discoveries, expanding the enhanced oil recovery initiatives and commencing additional production from upcoming projects currently at various stages of development, I am confident that these efforts will help offset the decline in production from mature fields, placing us in a stronger position in the coming quarters.
With this, I finish my briefing for the first quarter results for financial year '25-'26. We will be happy to field any questions from you. And we would request you to kindly restrict your queries on financial results only. Thank you very much.
[Operator Instructions] The first question comes from Probal Sen from ICICI Securities.
Yes. I had a couple of questions. Firstly, as far as the production is concerned, you did mention that crude production has sort of stabilized and is starting to increase. So what is the exact production level from the KG asset at this point of time? And what is the exit rate guidance as of now?
For the KG asset, you are asking? Yes, so currently from -- yes, from KG asset, we are producing 30,000-plus barrels of oil per day, and the gas is about 3 MMSCMD. And as far as projections are concerned, we are expecting that the production should ramp up from January, February onwards. I'm talking only about a KG basin as of now. And gas also should move up to 6 to 7 MMSCMD by [indiscernible] onwards.
So FY '26, we should ideally exit it at maybe slightly higher oil and 6 to 7 MMSCMD of gas output. Is that a fair way to look at it?
Yes.
Okay. The second question was sir, with respect to the TSP, the technical service that you just mentioned. Any progress you can share or any granularity in terms of time lines of when we can start to see some of the incremental production, which was sort of guiding to?
Yes. Already, the teams are in place. As we had mentioned that from April onwards, all the teams, both from BP as well as from ONGC have started working together. They are -- the work has started. They have started looking at the various data that is available for MH field. We do expect that something tangible should start coming up from the fourth quarter of this year, from January '26 onwards.
Fourth quarter of this year, we should start to see the results?
Yes.
And last question, if I may. Sir, with respect to Opal, thanks for sharing some additional data that you have done as part of the information. I just wanted your sense of where -- what impact higher amount of ethane could have in terms of our input costs, the arrangement that we are looking to do to sort of build VL and import ethane directly? What kind of impact do you see on our profitability once we start sort of the consuming or switching to ethane in the larger way for this plant?
So basically, that ethane usage will start from '28 only -- '28 onwards only. Currently, we are extracting -- using LNG for that extraction of C2-C3 portions. However, once this contract with Qatar gets over in '28, we are looking at derisking this project by tying up ethane supplies. And the best way to do this thing is ensuring that the supply is steady for which we have -- we are planning to have our own ships for transportation of ethane.
Cheaper also.
And this comes out to be cheaper because plant to -- most of the ethane is normally available from the U.S., which is linked to Henry Hub. So we do believe that the cost -- landed cost over year should come out to be cheaper than what we have today.
How much of ethane requirement will be there, sir, at full capacity for Opal?
It would be 600 KTT per annum, kilotonnes per tonne.
600 KTT. And just one last follow-up. Do we expect to hit EBITDA breakeven in this year? Are we guiding to that point?
EBITDA first quarter itself, we are EBITDA positive. And we are hopeful that with the measures that we have taken and now that the plant is also running more than 90% capacity, we should end the year with a good performance.
The next question comes from Amit Murarka from Axis Capital.
So just on your production volumes. So the marginal uptick in crude volume, as you've highlighted, so which field would it have come from? And also on BP, as you said that the engineers are working on it. But if you could just give some guidance on volume uptick on that front that would be great.
So first, as far as the -- if any particular production, there has been an uptick, no, it has been general all across. There have been different areas in which we have got marginal increases in crude oil production as such. We are expecting, as I've already mentioned, that from KG Basin, we should have much further increase from January, February onwards for both crude as well as gas. And as far as TSP is concerned, the work has initially started now. The initial work would be more to do with interpretation, going through the data and then suggesting what has to be -- what actions need to be taken, which would take some time for the actions to be completed.
However, we do expect that we should see some impact upon production from the fourth quarter of this year. So as of now, there is nothing concrete on the ground as far as to report. But yes, things are moving in the right direction. And that's why we are hopeful that on the fourth quarter of this year, we should have some results or benefits of TSP visible.
Understood. And then the Daman project is on track for Q4, I think which you guided earlier?
It is on track, very much on track. And we do expect that this coming year, fourth quarter, we should have production coming out of it.
[Operator Instructions] The next question comes from Vivekanand from AMBIT Capital Private Limited.
I have two questions. One is on the KG-D5 peak production guidance. You had earlier said you will reach 45,000 barrels per day peak oil production and gas 10 MMSCMD. Would you be willing to share an update on the time lines when you reach peak production in KG-D5? That is question [indiscernible] with your guidance for FY '26 and '27 hydrocarbon output, both oil and gas separately, if you can?
Yes. So as I mentioned, for KG 98/2, our guidance would be for the fourth quarter of this year. We should move ahead beyond 30,000 what we are producing just now. We were to have this earlier on during this quarter itself. However, because there was of vessels not being available for that installation of living quarter, this got delayed. And due to monsoon coming setting in, it was not possible to do the work. So it will now get shifted to winter, which is happening sometime in November, December, and that's why by January, February, we should have this production coming up.
Gas also, we have said that 10 MMSCMD should come up from now the fourth quarter onwards, starting off 6 to 7 and then moving up to 10 MMSCMD once the field -- once the wells that have opened up and connected through that living quarter platform stabilize. Coming to your second question of what is the production levels for '26, '27. For oil, crude oil, we have 21 million metric tonnes. Guidance on gas for '26, '27 is 21.487 BCM. So the total would come out to 42.50. And...
And just one -- please go ahead.
Yes, go ahead.
My followup was on the -- yes, on the current year also.
Yes. Sorry, sorry. For the current year, we have crude oil at 19.928 and gas at 20.110, which is 41.04 in totality.
The next question comes from Atishy Rathi from JPMorgan.
So my question is regarding the OVL performance. I see that the volumes have remained almost flat Q-on-Q, but the revenues are substantially down. So could we have some color on that?
Mukul, can you just add on to volume terms?
Volume terms, we are sort of flattish because of the Russian impact, the geopolitical impacts, the Russian assets have been impacted in terms of production. And we have been almost stable. The production -- the oil production this quarter was in the same range as in the last quarter with a difference of about 2%. As far as our operated assets are concerned, we are doing well. We have increased production in South Sudan. In CPO-5, we are doing pretty well. But the revenue is largely impacted by the crude price realization because our average realization has come down from 67 to 60. That also has a Russian angle.
Right, sir. But if I look at on a stand-alone first ONGC, I see that the revenue was basically down only 9%, whereas for OVL, it's almost down at 65%, which is -- we're still trying to figure out if the realizations have come down, ideally the impact, even if we take into account the mix, it wouldn't have come down that much. So is there something that we are missing?
No. Just to share, there is some kind of change in the arrangement related to the sale in one of the projects. So what has happened earlier, we were selling the entire product and it was getting recorded as revenue in the books of ONGC [indiscernible]. Right now, that sales is not coming to us. Instead, we are getting that entire profit from the JV. So earlier, we were selling on behalf of JV that was getting recorded as revenue. Now it is not coming to us. So that arrangement has changed. That's a significant impact. Almost INR 900 crores plus of revenue that was there in the last year is not there in the current year.
The next question comes from Varatharajan Sivasankaran from Antique Stockbroking Limited.
I wanted to understand this new well gas. So currently, ethanol, the level at which you are, when -- how often does it get reviewed? And when should we expect the next review and to what kind of a quantum?
See, the price book revised every month -- No, reviewed every -- the quantum gets reviewed every month, every 6 months.
So when would be the next review? Sometime around in the next 2, 3 months?
Just hold on for a second. Quantity gets projected monthly also and monthly -- accordingly, that quantum gets decided. And pricing is based upon the gas pricing, whatever that APM price [Foreign Language] Indian basket, 20% -- 12% on the Indian basket, which gets revised every year.
And any update on Mozambique asset?
Upon what? Update on?
Mozambique.
Yes. Mozambique currently still in force majeure, but we are expecting that since the -- there has been a very substantial improvement on the ground. From -- we are expecting August, September, this FM to be lifted. Already, Total is in talks with the government over there. They have also had talks with all the partners and actions have started to -- have been initiated to start the operations over there. So we do expect that very shortly, maybe in a month's time, we should have work up and going and the force majeure withdrawn from there.
The next question comes from Mayank Maheshwari from Morgan Stanley.
My question was more related to the operating cost itself. I think if you look at on a per unit basis, your operating costs are still tracking higher if you look at Y-o-Y basis or a long cycle last 3-year average basis. Any chances of this kind of coming down considering you have been highlighting focus on the cost side in the last call? So what are -- like is there a view here that you can share with us?
Yes. So the increase, as I've mentioned earlier, was that mainly because of the hiring charges that have increased as far as the FPSO was concerned on the East Coast when you compare on quarter-on-quarter basis. During this current quarter, the FPSO was working at full capacity and therefore, the price or the rate that was being charged was a full rate. In the previous year quarter 1, the FPSO rate was lower because it was not fully being utilized. It was at that time, 70% was the rate, which subsequently from October onwards became the full rate that was being charged.
So that was one aspect that comes up. Secondly, at for Opal, we supply C2-C3 through our C2-C3 plant. Now since Opal is now working or is full stream ahead, there has been -- we have been providing more LNG also to them. And because of this, purchase of LNG has also increased. Processing of our gas has also increased over there, and this has led to the increase in the cost. The focus on cost reduction remains. We have been starting to cut down upon our costs also. We have -- there have been decreases in other expenses and transportation expenses, et cetera, have also come down.
What has increased is in sync with the quantum of production increases that have happened. So the focus remains upon cost control. However, if there is production increase, there is going to be the production costs also moving up accordingly. But there have been a number of areas in which we have been able to reduce the costs also, like insurance, where we have cut down on the costs. There has been a decrease of about 15% in insurance expenses. We have also cut down upon some of the repair and maintenance costs also. So this is work in progress always, and this is going to help us.
Very substantially, we have been able to reduce our manpower cost also, partly because, yes, there have been retirements in the company.
We have -- hello? Am I audible? Yes. We have also taken measures to reduce our operational costs in another method. If you see for the Western Offshore, our fields spread out from -- right from below Mumbai side to right up to the Gujarat coast. So we have been earlier operating from Mumbai only. All our sorties or all our dispatches for cargo, et cetera, have been from Mumbai Nhava Sheva port. Now we have taken up Pipavav port. We have -- which is closer to the northern side of these fields. And by using that port, we have started to cut down on the cargo or the transportation costs.
We have also started utilizing Surat Airport for our sorties for manpower deployment. So it cuts down a lot on the time as well as the sorties that are there. So these cost reductions will get translated over this year, which should be visible subsequently.
No, very clear, I think. Thank you for the detailed explanation. I think, just [indiscernible] Go ahead, bhai.
And we didn't have fair weather. During the fair weather, we are also using crewboats, which reduces the cost of transportation of people from shore to the offshore. It reduces the number of sorties -- helicopter sorties that we have -- which are much more expensive. And it also reduces the risk that the people are -- our employees and contractual employees face while going to offshore. So all these measures will translate during -- over the course of the year into lesser cost as far as operations are concerned.
So sir, just an extension of this, correct? Is there a guidance you want to kind of give us into the end of the year, where your OpEx per barrel could kind of sit or whether you see a 10%, 15% reduction with all the things that you kind of highlighted very clearly on a per barrel basis where your cost could kind of sit. Considering there could be some impact coming in also because of some of the rig costs, et cetera, kind of shifting lower as well, I'm assuming. So is there something that you can guide us on that?
In the first quarter, we will not be in a position to do that guidance. We were thinking on this issue, but then we would let a little bit more time flow because Pipavav has come very recently. We have not yet stabilized those operations. We have also not shifted most of our operations from Mumbai, only partly they have shifted. So by -- within the 6-month period, by maybe October, November onwards in the fair season, we should start making more use of Pipavav as such as well as for those crewboats, so then the cost would start appearing, how much we are going to save on it.
Okay. Sir, the last question was on Opal. You are running now at close to around 90% utilization rate. Do you think -- I think because most of the other assets in the country are running closer to 100% or above, sometimes even above 100%. Do you think with your performance in Opal that you have been now scaling up, do you think that's something that you can kind of get to going forward?
Yes, yes. We are very hopeful or very rather. We are aiming to do that. That should be closer to 100% or even try and cross it.
The next question comes from Puneet Gulati from HSBC.
My first question is the gas production has been delayed a bit. Do you envisage the risk for -- in ramp-up? And what could attribute as the main problem for slight delay in the gas ramp-up, especially the KG Basin side?
Yes. So for the KG Basin, that production could not happen because our living quarters got delayed. Living quarters volume that got delayed. And because of which we are not in a position to tie up our gas wells, which have already been drilled and they need to be connected and gas supply should start. So once that happens, as I said in the winter season by November -- January, February, we should have that gas coming up from that.
Okay. And that living quarter is yet to be tied up?
Yes, it is to be installed as yet. It is fabricated, everything is ready. It has to be brought to India and then installed over here. Because of the monsoon season, we are not able to do it now. We'll be able to do it after October only. So it is planned to be done in November, December.
And on the oil side, will that also help oil ramp-up from 30,000 more? Or you think we'll reach the peak now?
No, no. We expect the peak to be higher. All these measures would also -- should also help to improve the oil production from East Coast, KG 98.
And what is the peak vol you're talking here?
We have a target of 45,000.
And secondly, in your earnings, if you could talk a bit about slightly lower other income during the quarter. Anything you can attribute it to?
See, other income was lower because last year, we pumped in about INR 18,365 crores into Opal. So that cost -- that much amount went out and interest rates have also fallen, gone southwards. So that has contributed for the reduction in our other income as such.
Okay. And how much is Opal contributing now?
Opal, EBITDA positive, it has happened for the first quarter.
So it is EBITDA positive. It is around INR 13 crores.
INR 13 crores. Okay. And what does it take from here for Opal to better numbers?
From here, one, we need the production to happen. Broadly, that is all that will be required. Now that the plant is running on plus, we expect that it should improve -- its performance should improve and we should get a better price. Price also -- we are also expecting the petrochemical cycle to start an upturn. Prices are looking up. And so over the period of this year, we should expect that it should do much better. Interest rates are also going down, plus cost also -- interest quantum also going down, it should help us.
[Operator Instructions] The next question comes from Achal Shah from AMBIT Capital Private Limited.
Sorry, sir. I'm missing it. How much of the gas volume is currently APM and NWG percentage-wise? And going ahead, what -- how will this percentage change?
Yes, just one moment. So currently, our new well gas, what we are expecting for this '25, '26 would be 2.6 BCM going ahead, which would be around 13% to 14% as such. Next year, we are expecting it to be 4.8 plus BCM, which would be around 24% to 25%.
Understood. And sir, my follow-up question is, just wanted to know like the arrangement with BP. Are we doing any other type of arrangements, onshore arrangements to increase production of the smaller wells? And do you see any upside there in terms of volumes or output?
We do not currently have any other arrangement with BP as far as the production increases are concerned, except for the one that we have at Mumbai. Coming to other fields, onshore fields, yes, there are many pockets where we could be having additional production, which is possible. And we are continuously doing those things. New well gas, if you see, is there and the production or the quantum is rising because we continue to look for newer avenues for production in the existing fields also, mature fields also. So it's a continuous process, and we expect that additional oil and gas should continue to flow from these mature fields also.
Got it, sir. Sir, the CapEx guidance for F '26 and F '27 and a broad breakup of that would be helpful.
Broadly, we would continue to have INR 30,000 crores plus or [indiscernible] odd, whatever we have been doing annually CapEx out of which exploration should be INR 8,000 crores to INR 10,000 crores. We should have our infrastructure projects coming up to INR 15-odd crores. Drilling should be another INR 15 crores, less than INR 15,000 crores. Billings should be around INR 10,000 crores that is happening and balance some other projects as such.
Your next question comes from Ankit Patel from HSBC Mutual Fund.
So regarding ONGC's investments in Opal, I just also wanted to understand going forward, there is a significant debt which is there in that balance sheet. And while it is starting to contribute EBITDA, would you also be looking to basically contribute more capital over there to further improve the profit and loss? At the same time, there are also some expansion plans which were -- which had come up in the news regarding plans to ramp up capacity under ONGC into the subsidiaries. So would OPAL be also in the mix of all this? Is there any progress or development which you can share on this?
So for Opal, the debt has been -- debt is around INR 24,800-odd crores. We do not immediately intend to add any further equity or pump in funds to reduce this debt from ONGC side. We do believe that the company, Opal would be able to sustain its existing debt as of now. Now considering that the petrochemical cycle is expected to look up and the plant is running well. So as of now, we do not have any plans -- immediate plans of pumping in any money into Opal as such. It should be able to manage on its own.
The second part, as far as whether we are looking at any expansions or anything like that. Immediately, we do not have plans because we are looking at ensuring that this plant runs properly. But yes, it does have a lot of capabilities and capacities available over there as far as land is concerned or streams are concerned, different streams, gas streams or hydrocarbon streams that are concerned, which could be very beneficial for value-add products to be generated from there. And we would be looking at all these in the future.
The next question comes from Kishan Mundhra from DAM Capital.
Sir, just one question or rather a clarification. So the production guidance that you've given for FY '26 and '27, is it for ONGC stand-alone? Or it also includes your share of JV production?
No. Its only standalone.
We have a follow-up question from Vivekanand S from AMBIT Capital Private Limited.
Yes. My questions have been answered. Thank you so much.
Thank you, sir. There are no further questions. Now I hand over the floor to Shri Vivek Tongaonkar for closing comments.
Yes. Thank you very much, and thank you all for being on this call. And we do hope that we have been able to answer all your questions that have been there. If you require any further information or clarifications, please get in touch with our IR department. The details, I think should be available with you or otherwise, they are available on our website. So thank you once more all for joining this call.
Thank you, sir. Ladies and gentlemen, this concludes your conference call for today. Thank you for your participation and for using Door Sabha's conference call service. You may disconnect your lines now. Thank you, and have a good day.