Net profit in the October-December quarter of 2016-17 was 197 per cent higher than Rs 1,466 crore in the year-ago period, the company said in a statement.
Sales were up 9 per cent at Rs 20,014 crore.
ONGC, India's biggest oil and gas producer, earned $51.80 for every barrel of crude oil it produced, 16.8 per cent more than $44.34 per barrel it realised in third quarter of the previous fiscal year (2015-16).
Oil production dropped 1.9 per cent to 6.4 million tonnes while gas output was up 4.4 per cent at 6.025 billion cubic meters.
ONGC board, at its meeting on Tuesday, approved field development plan (FDP) of NW B-173A field under Neelam & Heera Asset in Western Offshore.
The company will invest $66.05 million to develop North West B-173A field to enhance production.
NW-B-173A field is located 5 km northwest from B-173A field which is about 25 km north of Neelam field at an average water depth of 55 meters.
"The production is expected to commence from February 2019 and peak production rate of 2870 barrels per day of oil and 56,350 cubic meters a day of gas is expected to be achieved in 2019-20," the statement said.
The cumulative production till 2031-32 is pegged at 0.760 million tonnes of oil and 0.213 billion cubic meters of gas.
"The oil and gas will be evacuated through existing Neelam Process facilities. The project envisages installation of one well head platform, associated pipelines and drilling of 3 wells. The project is scheduled for completion by May 2019," it added.
ONGC said its board also approved second interim dividend of 45 per cent (Rs 2.25 on each equity share of Rs 5).
The total payout on this account will be Rs 2,887 crore.
Of this, the government will receive Rs 1,973 crore on its 68.34 per cent shareholding.
In addition, dividend distribution tax of Rs 588 crore would also be paid to the government.