State-run ONGC has initiated a cost optimisation drive to save more than ₹9,000 crore over the next two years as maturing oil and gas fields as well as continuously subdued oil prices threaten its bottom line.

The exploration & production (E&P) major has targeted to reduce its operating and capital expenditure, which amounts to roughly ₹61,000 crore, by 15 per cent till FY27. The company expects to save around ₹9,300 crore.

ONGC has embarked on a strategic journey to prepare itself for a future with $60 per barrel crude-price environment, the company said.

The Maharatna company has set up a dedicated cost council to suggest alternatives to bring down costs, Pankaj Kumar, Director (Production) at ONGC, said at a media briefing.

ONGC is scaling up its supply base at the Pipavav port wh

See Full Page