Oil and Natural Gas Company (ONGC) expects gas production from new wells to continue rising and increasingly contribute to spur profitability, Arun Kumar Singh, Chairman of the state-owned exploration and production company told investors in an analyst call Wednesday.

New-well gas constituted 17% of production volumes and 21% in terms of revenue in the company’s nomination gas portfolio in FY 2026.

“Bigger story in our basket is new-well gas [in terms of volume] will be on the rise,” he stated, adding, “It will be anywhere between 25% and 30% this year.”

He added that it would continue to increase thereafter.

Further, the ONGC chairman informed there has been “a big jump” in new-well gas production.

It has increased to 9 million standard cubic metre (MSCM) since April 1 in the ongoing financial year, with another 3 mscm set to be added with newer projects.

New-well gas effectively is priced at 12% of crude oil prices, thus, making it more profitable.

Elaborating on the aspect of profitability, Mr. Singh explained, “At crude price of $90 [per barrel], we can get [new-well gas price] of $10.8 [per MMBtu].”

Overall, Mr. Singh told analysts that ONGC’s overall gas production is expected to increase 7-8% in the current fiscal year.

“Every year 7-8% increase you should expect in gas [production],” he stated, elaborating this is on the back of Daman Upside Development project (DUDP), DSF block and completion of opening of the wells at KG 98/2.