By holding equity stakes in 32 projects across 15 countries, OVL diversifies India's crude sourcing base. If supply from one region (e.g., Middle East, via Strait of Hormuz) is disrupted due to geopolitical tensions, India can potentially increase uptake from OVL's assets in other, less volatile regions (e.g., Russia, Latin America, Africa), ensuring a more resilient energy supply chain and reducing dependence on a single route or supplier.

OVL's primary strategic objective is national energy security, meaning decisions often consider long-term supply stability and diversification over immediate financial returns. While commercial viability is assessed, projects might be undertaken even with lower profit margins if they offer significant strategic advantages, such as access to new regions, diversification of supply, or strengthening bilateral ties. This often involves government backing or guarantees to de-risk projects.

The key figures are: India's current crude oil import dependence is approximately 87%, projected to rise to 92% by 2035. Domestic crude oil production in India saw a 2.5% drop in 2024-25. OVL holds equity stakes in 32 oil and gas projects spread across 15 countries. India has expanded its crude sourcing base from 27 countries to over 40 countries.

• •India's current crude oil import dependence: ~87%.
• •Projected import dependence by 2035: ~92%.
• •Domestic crude oil production drop in 2024-25: 2.5%.
• •OVL's global presence: equity stakes in 32 projects across 15 countries.
• •India's expanded crude sourcing base: from 27 countries to over 40 countries.

The U.S. sanctions complicated transactions for Indian refiners and directly impacted OVL's investments in Venezuela's oil sector. This led to a significant decline in Venezuela's share of India's crude oil imports, from 6.7% in 2018 to 0.3% in 2025. This situation highlighted the geopolitical risks associated with overseas investments and necessitated further diversification of sourcing to other regions.

OVL should prioritize aggressive exploration in high-potential blocks, technological partnerships for enhanced recovery and unconventional resources, diversification beyond just oil to include natural gas and renewables, and robust risk mitigation strategies against geopolitical instability and sanctions.

• •Aggressive Exploration: Focus on acquiring stakes in early-stage exploration blocks with high potential, rather than just developed fields, to secure future reserves.
• •Technological Partnerships: Collaborate with advanced energy companies for enhanced oil recovery (EOR) techniques in existing assets and explore unconventional resources.
• •Diversification beyond Oil: While oil is primary, strategically look into overseas natural gas and even renewable energy projects to align with India's broader energy transition goals.
• •Risk Mitigation: Develop robust strategies to navigate geopolitical sanctions and political instability in host countries, perhaps through multi-lateral agreements or insurance mechanisms.

OVL's long-term investments involve substantial capital and technological commitments to develop oil and gas infrastructure over decades. This differs from short-term strategies like spot market purchases which react to immediate demand/supply. The implication for India is a stable, predictable, and potentially cheaper supply over time, fostering strategic bilateral relationships, but also exposing OVL to long-term geopolitical and market risks in host countries.

ONGC Videsh Ltd operates as a Public Sector Undertaking (PSU) under the administrative control of the Ministry of Petroleum and Natural Gas, Government of India. Its operations are primarily governed by the Companies Act, 2013, along with relevant petroleum exploration and production policies.

While OVL's operations involve acquiring assets overseas, the concept of 'equity oil' means India directly owns the crude. This direct ownership and control over a portion of global oil production is a step towards 'self-reliance' in the sense of reducing reliance on volatile international markets and specific suppliers, and securing a stable, owned supply. It's about self-reliance in sourcing and control, not necessarily domestic production.

Critics often argue that overseas projects are capital-intensive, high-risk, and subject to political instability, potentially yielding sub-optimal commercial returns. From a national interest perspective, these are trade-offs for energy security. The cost is justified by the long-term stability and predictability of supply, reduced geopolitical leverage on India, and the strategic advantage of direct ownership, which private entities might not prioritize.

• •High Risk/Cost: Overseas projects are capital-intensive, high-risk, and subject to political instability and expropriation in host countries.
• •Sub-optimal Returns: Some projects might yield lower commercial returns compared to private sector investments due to strategic imperatives.
• •Geopolitical Vulnerability: Despite diversification, OVL's assets can still be impacted by international sanctions (e.g., Venezuela) or diplomatic tensions.

By holding equity stakes in 32 projects across 15 countries, OVL diversifies India's crude sourcing base. If supply from one region (e.g., Middle East, via Strait of Hormuz) is disrupted due to geopolitical tensions, India can potentially increase uptake from OVL's assets in other, less volatile regions (e.g., Russia, Latin America, Africa), ensuring a more resilient energy supply chain and reducing dependence on a single route or supplier.

OVL's primary strategic objective is national energy security, meaning decisions often consider long-term supply stability and diversification over immediate financial returns. While commercial viability is assessed, projects might be undertaken even with lower profit margins if they offer significant strategic advantages, such as access to new regions, diversification of supply, or strengthening bilateral ties. This often involves government backing or guarantees to de-risk projects.

The key figures are: India's current crude oil import dependence is approximately 87%, projected to rise to 92% by 2035. Domestic crude oil production in India saw a 2.5% drop in 2024-25. OVL holds equity stakes in 32 oil and gas projects spread across 15 countries. India has expanded its crude sourcing base from 27 countries to over 40 countries.

• •India's current crude oil import dependence: ~87%.
• •Projected import dependence by 2035: ~92%.
• •Domestic crude oil production drop in 2024-25: 2.5%.
• •OVL's global presence: equity stakes in 32 projects across 15 countries.
• •India's expanded crude sourcing base: from 27 countries to over 40 countries.

The U.S. sanctions complicated transactions for Indian refiners and directly impacted OVL's investments in Venezuela's oil sector. This led to a significant decline in Venezuela's share of India's crude oil imports, from 6.7% in 2018 to 0.3% in 2025. This situation highlighted the geopolitical risks associated with overseas investments and necessitated further diversification of sourcing to other regions.

OVL should prioritize aggressive exploration in high-potential blocks, technological partnerships for enhanced recovery and unconventional resources, diversification beyond just oil to include natural gas and renewables, and robust risk mitigation strategies against geopolitical instability and sanctions.

• •Aggressive Exploration: Focus on acquiring stakes in early-stage exploration blocks with high potential, rather than just developed fields, to secure future reserves.
• •Technological Partnerships: Collaborate with advanced energy companies for enhanced oil recovery (EOR) techniques in existing assets and explore unconventional resources.
• •Diversification beyond Oil: While oil is primary, strategically look into overseas natural gas and even renewable energy projects to align with India's broader energy transition goals.
• •Risk Mitigation: Develop robust strategies to navigate geopolitical sanctions and political instability in host countries, perhaps through multi-lateral agreements or insurance mechanisms.

OVL's long-term investments involve substantial capital and technological commitments to develop oil and gas infrastructure over decades. This differs from short-term strategies like spot market purchases which react to immediate demand/supply. The implication for India is a stable, predictable, and potentially cheaper supply over time, fostering strategic bilateral relationships, but also exposing OVL to long-term geopolitical and market risks in host countries.

ONGC Videsh Ltd operates as a Public Sector Undertaking (PSU) under the administrative control of the Ministry of Petroleum and Natural Gas, Government of India. Its operations are primarily governed by the Companies Act, 2013, along with relevant petroleum exploration and production policies.

While OVL's operations involve acquiring assets overseas, the concept of 'equity oil' means India directly owns the crude. This direct ownership and control over a portion of global oil production is a step towards 'self-reliance' in the sense of reducing reliance on volatile international markets and specific suppliers, and securing a stable, owned supply. It's about self-reliance in sourcing and control, not necessarily domestic production.

Critics often argue that overseas projects are capital-intensive, high-risk, and subject to political instability, potentially yielding sub-optimal commercial returns. From a national interest perspective, these are trade-offs for energy security. The cost is justified by the long-term stability and predictability of supply, reduced geopolitical leverage on India, and the strategic advantage of direct ownership, which private entities might not prioritize.

• •High Risk/Cost: Overseas projects are capital-intensive, high-risk, and subject to political instability and expropriation in host countries.
• •Sub-optimal Returns: Some projects might yield lower commercial returns compared to private sector investments due to strategic imperatives.
• •Geopolitical Vulnerability: Despite diversification, OVL's assets can still be impacted by international sanctions (e.g., Venezuela) or diplomatic tensions.