ONGC shifts to actuarial pricing – 3 Jun 2025

ONGC demands depth-wise, type-wise, and activity-wise premium disclosures, raising the bar for insurance transparency and bid comparability.

The PSU has opted to retain USD 200 million cover per deepwater well with a modest USD 3 million deductible despite zero loss ratio so far.

A split payment system — 50% at spud and balance post-drill — gives ONGC flexibility in cashflow while holding insurers accountable to real activity.

In the directional development category, ONGC expects bids for wells exceeding 17,000 ft, pushing insurers into the high-risk, high-premium frontier.

Unlike some global benchmarks, ONGC demands flat-rate liability cover for shut-in, plugged, or abandoned wells — indicating a risk-averse stance.