State-run Oil and Natural Gas Corp. plans to come up with a global tender for selling stake in its petrochemical subsidiary, according to a top executive.
ONGC Petro additions (OPaL) has “become our subsidiary, and we have been mandated to dilute our stake in it and bring it back to a JV structure through a global tender”, said Arunangshu Sarkar, director, strategy & corporate affairs at ONGC, on the sidelines of the ongoing India Energy Week 2026. “We are looking for partners. We hope to come out with a global expression of interest (EoI).”
Sarkar, however, did not specify the quantum of shares the state-run energy major would offload in the proposed private placement.
The proposed share sale is part of the government’s requirement to offload stakes in the company to monetize assets. While ONGC owns 95.69% of OPaL, GAIL India Ltd holds around 4% stake, and Gujarat State Petroleum Corp. owns the rest.
In August 2024, the Union government approved the infusion of additional equity capital up to ₹10,501 crore in OPaL, the conversion of back-stopped compulsorily convertible debentures (CCDs) amounting to ₹7,778 crore, and the balance payment of ₹86 crore with respect to share warrants, totalling to ₹18,365 crore. The investment was approved to ease the company’s financial challenges and boost operations, according to the parent.
ONGC’s annual report for FY25 said: “Recognizing its long-term potential, your company took decisive steps to address OPaL’s financial challenges through a ₹18,365 crore capital restructuring and exit from SEZ area.” To ensure feedstock stability and reduce reliance on volatile LNG markets, Centre has also approved allocation of up to 3.2 million standard cubic meters (MMSCM) per day of gas from new wells, said the annual report.
In FY25, OPaL sold 1,785 kilo tonnes of petrochemical products, up from 1,769 kilo tonnes in the previous fiscal, and its revenue from operations stood at ₹14,804 crore, up from ₹14,307 crore in FY24.
OPaL, incorporated in 2006, is a petrochemical greenfield project established in the Dahej Special Economic Zone (SEZ). OPaL exited SEZ in March 2025.
Another ONGC subsidiary, Mangalore Refinery and Petrochemicals Ltd (MRPL), also hit a record throughput of 18.04 million tonnes in FY25, and is operating at 120% capacity, according to the annual report.
“Together, these downstream entities not only enhance ONGC’s vertical integration but also provide a financial hedge against upstream volatility, contributing to sustained group-level stability. As the global energy market continues to evolve, the chemicals and petrochemicals sector emerges as a pivotal force, poised to drive substantial demand within the oil industry over the next decade and beyond,” it said.
As the demand for products like petrol and diesel is expected to weaken globally, the Centre aims to develop India as a petrochemical hub for global consumption of these alternate products used in making plastics, synthetic fibres, fertilizers, paints, solvents, cosmetics, and pharmaceuticals, among others.
A CareEdge Ratings report in December said that India’s domestic petrochemical sector is expected to report a robust 6-7% annual growth in the medium term, supported by continued economic expansion and steady demand from downstream industries.
An S&P Global report in October had said that amid slowing consumer demand, uncertainty over tariffs, tighter margins and over-capacity, global petrochemical producers are betting on India as a key demand driver.
It noted that though India’s appetite for petrochemicals remains the strongest in Asia, it has not resulted in good tidings for domestic petrochemical producers. Chemical producers in India are looking at diversifying into specialty chemicals as well as upstream and downstream integration to compete with cheaper imports and maintain a strong hold in the domestic market, it said.
