Credit Rating

OIL AND NATURAL GAS CORPORATION LIMITED COMPANY SECRETARIAT ONGC/CS/SE/2026-27 30.10.2026 National Stock Exchange of India Ltd. BSE Limited Listing Department Corporate Relationship Department Exchange Plaza Phiroze Jeejeebhoy Towers, Dalal Street, Bandra-Kurla Complex Fort Mumbai- 400001 Bandra (E), Mumbai – 400 051 BSE Security Code Equity: 500312 Symbol - ONGC; Series – EQ NCDs: 959881 Sub: Intimation of Credit Rating Madam/Sir, Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby informed that “India Ratings and Research Private Limited” has affirmed the Ratings assigned to bank facilities and instruments of the Company for the following Facilities/ instruments: - Facilities/Instruments Name of the Amount Rating Rating Regulator (₹ in million) Action IND AAA/Stable/IND Bank loan Facilities RBI 350,000 A1+ Affirmed Proposed commercial papers RBI 100,000 IND A1+ Affirmed Non-convertible debentures SEBI 10,000 IND AAA/Stable Affirmed Copy of Press Release is enclosed. This is for your information and records, please. Thanking You, Yours Sincerely, For Oil and Natural Gas Corporation Limited (Shashi Bhushan Singh) Company Secretary & Compliance Officer Regd. Office: Plot No 5A-5B, Nelson Mandela Marg, Vasant Kunj, New Delhi-110070 Phone: 011-2675 4073, 011-2675 4085, CIN: L74899DL1993GOI054155 Website: www.ongcindia.com Email: secretariat@ongc.co.in India Ratings Affirms Oil and Natural Gas Corporation’s Debt Instruments at ‘IND AAA’/Stable/‘IND A1+’ Oct 29, 2026 | Oil and Natural Gas Corporation Limited | Oil Exploration & Production India Ratings and Research (Ind-Ra) has affirmed Oil and Natural Gas Corporation Limited’s (ONGC) debt instruments’ ratings as follows: Details of Instruments Instrument Regulator of Date of Coupon Maturity Size of Issue Rating Assigned along Rating Description Instrument Issuance Rate (%) Date (INR million) with Watch/Outlook Action Bank loan RBI - - - 350,000 IND AAA/Stable/IND Affirmed facilities A1+ Proposed RBI - - Up to 100,000 IND A1+ Affirmed commercial 365 papers days Non-convertible Refer ISIN - - - 10,000 IND AAA/Stable Affirmed debentures* annexure *details in annexure Analytical Approach Ind-Ra continues to consider ONGC’s strong legal, operational, and strategic linkages with the government of India (GoI), which held a 58.89% stake in the company as of FYE26 (FYE25: 58.89%), while arriving at the ratings. Furthermore, the agency, as per its Parent Subsidiary Rating Linkage Criteria, continues to fully consolidate the financials of ONGC’s direct subsidiaries, ONGC Videsh Limited (OVL; debt rated at ‘IND AAA’/Stable; 100% shareholding), Mangalore Refining and Petrochemicals Limited (MRPL (consolidated); debt rated at ‘IND AAA’/Stable); 71.63%), and ONGC Petro additions Limited (OPaL; ‘IND AAA’/Stable; 95.96%), to which ONGC has extended support in the form of corporate guarantees apart from equity infusions. Furthermore, Ind-Ra continues to factor in the dividend income received from Hindustan Petroleum Corporation Limited (HPCL; debt rated at ‘IND AAA’/Stable and other subsidiaries, joint ventures (JVs), and associates while assessing ONGC. Detailed Rationale of the Rating Action The ratings reflect ONGC’s majority ownership and strategic importance to the GoI, as it plays a key role in the country’s energy security. The ratings are also supported by the dominant market position of ONGC in the domestic crude oil and natural gas production business, with large proven reserves, a globally competitive cost structure, stable performance of its subsidiaries, and its healthy financial position. The credit profile of the ONGC Group, at the consolidated level, is robust. Furthermore, the company’s strong financial flexibility arising from its moderate gearing, large liquid investments, and high cash balance provides additional comfort. However, the ratings are susceptible to the inherent risk related to the exploration and production (E&P) business, regulatory risks, geopolitical risk for overseas operations, large capex requirements to replace reserves, and high contingent liabilities. List of Key Rating Drivers Strengths Strong linkages with GoI Strong operating metrics Healthy credit metrics Weaknesses High capex likely to continue Profitability dependent on crude and natural gas prices High contingent liabilities Detailed Description of Key Rating Drivers Strong Linkages with GoI: ONGC is India’s largest domestic crude oil and natural gas producer, with proven reserves of 793.3 million metric tonnes of oil equivalent (mmtoe) as of March 2026 (ONGC: 517.88mmtoe; OVL: 265.27mmtoe; JVs: 10.16mmtoe). ONGC and OVL aid the GoI’s objective of ensuring energy security. OVL acts as India’s upstream producer in international markets and helps in maintaining diplomatic and strategic ties with different countries. Moreover, OVL’s capex and investment decisions benefit from its diplomatic ties with the GoI and are guided and approved by the latter. ONGC operates blocks allocated to it on a nomination basis by the GoI along with the blocks awarded through the New Exploration Licensing Policy and Hydrocarbon Exploration and Licensing Policy; the latter two were introduced in FY98 and FY16, respectively, to attract private participation in upstream production. Ind-Ra believes that ONGC, by the virtue of it being the largest domestic oil producer, will continue to be strategically important for the GoI. ONGC’s importance to the GoI is further supported considering the significant taxes and dividends paid by it to the exchequer. Ind-Ra does not expect the GoI’s shareholding in ONGC to reduce below 51%, given the overseas bonds raised by ONGC stipulate the GoI’s minimum holding at 51%. ONGC also has one GoI-nominated director and six independent directors on its board. Strong Operating Metrics: ONGC’s consolidated oil and gas production declined to 49.15mmtoe in FY26 (oil – 26.41mmtoe; gas – 22.73mmtoe) (FY25: 50.321mmtoe (oil – 27.118mmtoe; gas – 23.2mmtoe)), largely led by a production decline in JVs. At the standalone level, the oil and gas production was stable at 18.34mmtoe and 19.54mmtoe, respectively (FY25: 18.56mmtoe and 19.65mmtoe). OVL’s production slightly decreased to 9.67mmtoe in FY26 (FY25: 10.279mmtoe), largely due to a natural decline in matured fields. At the standalone level, ONGC’s reserve replacement ratio (2P) was 1.17x in FY26, with a reserve accretion of 44.01mmtoe from operated domestic areas, reflecting a healthy replenishment of its hydrocarbon reserves and supporting the long-term sustainability of its exploration and production operations. ONGC’s total domestic 2P reserves was 709.32mmtoe as of 1 April 2026, including its share in non-operated JVs. ONGC’s standalone oil and gas production declined 3.4% yoy to 9.444mmtoe in 1QFY27 (1QFY26: 9.779mmtoe). Moreover, the crude oil production declined 4.9% yoy to 4.452mmt, while the natural gas production moderated 1.9% yoy to 4.756 billion cubic metres. The decline was primarily attributable to reservoir complexities in the KG-DWN-98/2 block, delays in pipeline replacement activities in the Western Offshore, and temporary well closures during the commissioning of major projects. While the production has broadly stabilised sequentially, the continued yoy decline highlights the challenges in arresting natural depletion across mature fields. Going forward, the stabilisation and recovery of production will likely depend on the timely commissioning and ramp-up of key projects, including the Daman Upside Development Project (DUDP), along with the expanded technical service provider programme across Western Offshore and the development of discovered small fields. ONGC’s ongoing Western Offshore investment programme exceeding INR400 billion is likely to support production recovery, with benefits progressively materialising from FY28. Healthy Credit Metrics: Ind-Ra expects ONGC’s credit metrics to [Showing first 8,000 characters — download PDF for full document]