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ONGC's robust financial position, bolstered by record-breaking profits over the past two years, has positioned the company for significant investments, according to its finance chief. The company's annual capital expenditure (capex) is set to increase by 10% in the next fiscal year due to heightened upstream activities. Moreover, the capex is expected to double to Rs 600 billion within three years as the company's new petrochemical and green energy initiatives take shape. As India's largest oil and gas producer, ONGC reported a combined profit of around Rs 800 billion in the two years leading up to March 2023, with the noteworthy achievement of having zero net debt. Despite consistently paying substantial dividends to shareholders, ranging from 30-45% of annual profits for a decade, the company's annual capex had stagnated at approximately Rs 300 billion. This stagnation was attributed to the absence of new field development plans, explained Pomila Jaspal, Director of Finance at ONGC. Jaspal pointed out that low domestic natural gas prices had hindered the economic viability of several projects, leading to them being put on hold. However, changes in domestic pricing policies and subsequent price increases have now made some gas projects economically viable, prompting ONGC to pursue them. ONGC's annual capex typically includes Rs 200-220 billion for maintaining production from existing fields and an additional Rs 70-80 billion for exploration and development. Jaspal anticipates the capex to increase by Rs 30 billion next year, reaching Rs 330 billion, and remain at that level until 2026-27. Further increases, potentially amounting to Rs 20-30 billion, are expected due to green spending initiatives. However, the significant surge in capex is anticipated after 2026-27 when petrochemical and green projects are fully operational. ONGC has ambitious plans, aiming to invest Rs 1 trillion in petrochemical expansion and another Rs 1 trillion in green businesses by 2030. This translates to additional annual spending of about Rs 600 billion in the last three years of the decade, in addition to the regular oil and gas capex of Rs 330 billion. Jaspal clarified that such substantial investments would likely be collaborative, possibly in the form of joint ventures. The company intends to start by acquiring small green projects and gradually developing larger projects internally.