Globally demand for refined fuels is expected to slow in the next few years.

| Photo: Twitter2 min read Last Updated : Sep 10 2024 | 9:49 PM IST India's ONGC Videsh is focused on acquiring stakes in overseas oil and gas producing assets as the transition to renewable energy is expected to dent demand for conventional fuels in the future, its head of finance said on Tuesday.  "In view of the energy transition, we are not looking at the long gestation projects.

So exploration is not a priority right now for us except for the projects which are already with us," said Anupam Agarwal at the APPEC conference.  ONGC Videsh, the overseas investment arm of the country's top exploration company Oil and Natural Gas Corp has stake in 32 oil and gas projects in 15 countries.   Globally demand for refined fuels is expected to slow in the next few years as countries expedite a switch to environmentally friendly fuels such as renewable energy to cut emissions.  While oil products demand in China, long the driver of global crude consumption, peaked in 2023 and is forecast to decrease by 1.1 per cent annually between 2023 and 2025, India is looking at switching a third of its truck fleet to liquefied natural gas in addition to expanding the role of renewables in its energy mix.  "We are continuing to do exploration in the nearby areas, but otherwise our focus is to acquire producing or near producing assets," Agarwal said.  Agarwal said capex plans for developing projects have been 'impacted' due to higher demand for services and equipment required for producing hydrocarbons.  India is the world's third biggest oil importer and consumer.

It imports more that 80 per cent of its oil needs as local production has been almost stagnant for years.  Agarwal said Indian companies are looking at increasing local oil and gas output from existing and new fields including those in challenging or the so called frontier areas.(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)First Published: Sep 10 2024 | 9:49 PMIST