Oil & Natural Gas Corporation Limited (ONGC) – NSE/BSE Announcement

NSE: ONGC | BSE: 500312

Introduction

On 26 May 2026, the Board of Directors of Oil & Natural Gas Corporation Limited (ONGC) convened and approved several key items, including the audited financial results for FY 2025‑26, a final dividend recommendation, the formation of a joint venture for a liquid port at Dahej, and a parent‑company guarantee related to a Brazilian subsidiary.

Board Resolutions Summary

1. Audited Financial Results (FY ended 31 Mar 2026)

• The Board approved the standalone and consolidated audited financial statements for the financial year ended 31 March 2026, together with the auditors’ reports.
• The detailed statements are attached as Annexure‑A in compliance with SEBI Listing Regulations (Regulations 33 & 52).

2. Final Dividend Recommendation (FY 2025‑26)

• Dividend rate: ₹1 per equity share (face value ₹5), equivalent to 20 %.
• The dividend is subject to shareholder approval at the forthcoming Annual General Meeting.

3. Joint Venture for a 5 MMTPA Liquid Port at Dahej

• In‑principle approval for a 50:50 joint venture with the Gujarat Maritime Board (GMB).
• Objective: develop a 5 million metric tonnes per annum (MMTPA) liquid port at Dahej, Gujarat.
• The JV is pending:
  • Investment approvals from both partners.
  • Clearance from the Department of Investment and Public Asset Management (DIPAM), Government of India.
• The port is positioned as a strategic enabler for ONGC’s integrated energy business and logistics network in the region.

4. Parent Company Guarantee to BC‑10 Operator (Brazil)

• Approval for a Related Party Transaction: ONGC Nile Ganga BV (ONGBV) will provide a Parent Company Guarantee to M/s Shell Brasil Petróleo Ltda. (BC‑10 Operator) on behalf of ONGC Campos Ltda. (OCL).
• Guarantee amount: up to USD 325 million covering abandonment liability.
• Guarantee fees will be determined on an arm‑length basis following a transfer‑pricing study.
• Corporate relationships:
  • ONGBV – subsidiary of ONGC Videsh Limited.
  • OCL – step‑down subsidiary of ONGC Videsh Limited via ONGBV.

Key Takeaways for Investors

• Financial Transparency: Completion of audited results for FY 2025‑26 demonstrates compliance and provides a basis for performance assessment.
• Shareholder Return: A 20 % final dividend signals a commitment to returning cash to shareholders, pending AGM approval.
• Strategic Expansion: The Dahej liquid port JV aims to strengthen ONGC’s logistics and supply chain capabilities, potentially enhancing future revenue streams.
• Risk Management: The parent company guarantee for the Brazilian subsidiary addresses a significant abandonment liability, with fees structured to reflect market terms.

Investors should monitor subsequent disclosures for the detailed financial statements, AGM outcomes on the dividend, and regulatory clearances for the Dahej JV and the guarantee arrangement.