New Delhi: Oil and gas production from Indian assets overseas is increasing, while the domestic output is on the decline.

Indian oil companies’ share in the output from overseas oilfields increased two-and-a-half times in the last five years to 24.7 million metric tonnes of oil equivalent (mmtoe) in 2018–19. In the same time, the domestic production dropped 6.0% to 67.1 mmtoe.

In recent years, the investment in oil-producing assets in the UAE and Russia primarily led to the increase in the overseas output, as per an executive at ONGC (Oil and Natural Gas Corp) Videsh, the global arm of the state-run ONGC that is directed to scout for endowment opportunities worldwide as part of India’s energy security strategy.

The executive said that the state firm’s ability to track good investment opportunities worldwide, negotiate contracts with asset owners, and the big diplomatic support from Narendra Modi government have helped enhance India’s hydrocarbon asset portfolio.

In the past five years, Prime Minister Narendra Modi and Oil Minister Dharmendra Pradhan have continuously engaged with oil producers to maintain a smooth oil trade and surged the scope of investments in the upstream assets in those nations, an official said.

In 2016, ONGC, Oil India, Bharat Petroleum, and Indian Oil, bought 49.9% stake in Russia’s prominent Vankor field for around $4.2 billion. Further, Indian Oil, Bharat Petroleum, and Oil India together purchased 29.9% interest in Taas-Yuryakh, where the output doubled in 2018 from the previous year.

ONGC, India’s primary vehicle for overseas investments in oil and gas assets, today has 41 projects, consisting of 15 producing assets spread in 20 countries. Till now, it has invested nearly $29 billion. Its production has increased 13.7% annually in the past five years to 14.83 mmtoe in 2018–19, whereas its profit more than doubled in two years to Rs 1682 crore in 2018–19.