 Securing
Sustained Growth
Corporate
Ranking
New
Discoveries
ONGC
Videsh Limited
MRPL
A modest entity in the serene Himalayan settings - Oil and Natural
Gas Corporation Limited (ONGC) was set up as a Commission on August
14, 1956. The company became a corporate on June 23, 1993, which
has now grown into a full-fledged horizontally integrated petroleum
company. Today, ONGC is a flagship public sector enterprise and India’s
highest profit making corporate, achieving the record of being the
first Indian corporate to register a five digit profit figure of
Rs. 10,529 Crore in the year 2002-03.
ONGC has produced more than 600 million metric tonnes of crude oil
and supplied more than 200 billion cubic metres of gas since its
inception, thus fuelling the increasing energy requirements of the
Indian economy. Today, ONGC is the most valuable company in India,
contributing 77 percent of India’s crude oil production and
81 per cent of India’s natural gas production.
To sustain this growth, ONGC has drawn up ambitious strategic objectives,
which include doubling the oil and gas reserves. Having accreted
six billion tonnes oil and oil equivalent reserves in its first 45
years of operation, ONGC now aims to double these reserves by 2020.
The second strategic objective is to augment the global recovery
factor from the existing 28 per cent to the global norm of 40 per
cent in next 20 years.
Out of the six billion tonnes of oil and gas reserve accretion,
four billion tonnes is expected to come from Offshore and Deep Waters.
To improve the recovery factor from the existing fields, ONGC is
investing Rs. 2,000 crore in 15 re-development schemes.
Ranked
326th in Financial Times Global 500 List by market cap; first among
Indian Corporates
Ranked
133rd in Forbes 400 Top Global Corporates by market cap; first among
Indian Corporates
Ranked
1st in Economic Times 500 Corporate List by net profit and market
cap
Ranked
1st in Business Today 500 List by net profit
Ranked
1st in Business Today-Stern Stewart Study of 500 Indian Corporates
for highest-ever Market Value Added (MVA). ONGC is the only PSU which
has both MVA and EVA positive.
ONGC made six new discoveries, at Vasai West (oil and gas) in Western
Offshore, GS-49 (gas) and GS-KW (oil and gas) in Krishna-Godavari
Offshore, Chinnewala Tibba (gas) in Rajasthan, and Laipling-gaon
(oil and gas) and Banamali (oil), both in Assam.
ONGC’s wholly owned subsidiary, ONGC Videsh Ltd, has made
significant investments in many parts of the world.
The gas property in Vietnam (OVL’s participating interest
45%) went into commercial production in December 2002, leading to
OVL’s first revenue from hydrocarbons. In March 2003, OVL concluded
the acquisition of 25% equity in the Greater Nile project in Sudan
with an investment of Rs. 3,430 crore. This investment entitles OVL
to 3.00 MMT of crude oil per year, which is valued at Rs. 2,500 crore
at current prices.
OVL opened its first overseas subsidiary, Sakhalin India Inc., in
US for managing its operations in Sakhalin Oil field in Russia. Further,
ONGC Nile-Ganga BV, a wholly owned subsidiary, was incorporated in
The Netherlands to manage the Sudan property.
OVL is also pursuing exploration of oil and gas in Russia, Iran,
Iraq, Libya Myanmar and other countries.
Adopting an integrated business model, ONGC acquired 72% of the
stake in MRPL with full management control of the 9.69 tonne, state-of-the-art
refinery. MRPL has already received sweet crude from ONGC’s
equity in Sudan twice.
MRPL has registered a net profit of Rs. 459 Crore, after wiping out cumulative losses for a number of years.
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