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ONGC Videsh Limited

ONGC Videsh Limited - Working globally for the energy security of India


ONGC Videsh, a Miniratna Schedule “A” Central Public Sector Enterprise (CPSE) of the Government of India under the administrative control of the Ministry of Petroleum & Natural Gas is the wholly owned subsidiary and overseas arm of Oil and Natural Gas Corporation Limited (ONGC), the flagship national oil company (NOC) of India. The primary business of ONGC Videsh is to prospect for oil and gas acreages outside India, including exploration, development and production of oil and gas.

ONGC Videsh was incorporated as Hydrocarbons India Pvt. Ltd. on 5 March 1965 to carry out exploration and development of the Rostam and Raksh oil fields in Iran and undertaking a service contract in Iraq. The company was rechristened as ONGC Videsh Limited on 15th June, 1989 with the prime objective of marketing the expertise of ONGC abroad. The nineties saw the Company engaged in limited exploration activities in Egypt, Yemen, Tunisia and Vietnam.

In its new avatar as ONGC Videsh, the company from mid-nineties re-oriented its focus on acquiring quality overseas oil and gas assets. ONGC Videsh, which had one asset in year 2000, gradually succeeded in competing with the best in the international arena and could conclude many large transactions across the world in subsequent years. Presently, ONGC Videsh owns Participating Interests in 33 oil and gas assets in 16 countries and contributes to 14.5% and 8% of oil and natural gas production of India respectively. In terms of reserves and production, ONGC Videsh is the second largest petroleum Company of India, next only to its parent ONGC.

ONGC Videsh’s oil and gas operations produced 8.36 MMT of oil and oil equivalent gas in 2013-14 as against 0.252 MMT of O+OEG in 2002-03. ONGC Videsh’s overseas cumulative investment up to 31st March, 2014 has crossed USD 22 billion.

Current Assets Portfolio

ONGC Videsh has stake in 33 oil and gas projects in 16 Countries. ONGC Videsh adopts a balanced portfolio approach and maintains a combination of producing, discovered, exploration assets and pipeline assets. ONGC Videsh has 13 producing assets, namely, Russia (Sakhalin-I and Imperial Energy), Syria (Al-Furat Petroleum Co.), Vietnam (Block 06.1), Colombia (MECL), Sudan (Greater Nile Petroleum Operating Company), South Sudan (Greater Pioneer Operating Company and Sudd Petroleum Operating Company), Venezuela (San Cristobal), Brazil (BC-10), Myanmar (Block A1 & Block A3) and Azerbaijan (ACG). 4 Assets where hydrocarbons have been discovered are at various stages of development, 14 assets are under various stages of exploration phase and 2 pipeline projects are under operation for transportation of oil and gas.

ONGC Videsh made successfully new acquisitions in last one and half year by investing more than USD 4 billion which include (a) acquisition of Hess Corporation’s 2.7213% participating interest in the Azeri, Chirag and the Deep Water Portion of Guneshli Fields in the Azerbaijan sector of the Caspian Sea (“ACG”) and 2.36% interest in the Baku-Tbilisi-Ceyhan (“BTC”) Pipeline which was completed in March 2013, ACG is one of the world’s biggest oil producing field in Caspian Sea; (b) acquisition of an additional 12% PI in Block BC-10, a deep-water offshore block in Campos Basin, Brazil  in December, 2013; (c) acquisition of 6% PI in the Rovuma Area 1 Offshore Block in Mozambique from Videocon in January, 2014; (d) acquisition of  a direct 10% PI in the same Rovuma Area 1 from Anadarko in February, 2014. Apart from these, ONGC Videsh acquired two shallow water blocks in Bangladesh namely SS-04 and SS-09 in 50-50 consortium with Oil India Limited. ONGC Videsh has also been awarded two onshore blocks namely B2 (Zebyutaung-Nandaw) and EP-3 (Thegon-Shwegu) in the Myanmar Onshore Bidding Round 2013.

Fulfilling social responsibility as a corporate citizen is part of the foundational ethos of Indian Public Sector Enterprises. ONGC Videsh operates as responsible global corporate citizen by positively engaging with the communities and society where it operates. ONGC Videsh is committed to create a positive and lasting social impact by developing successful partnerships built on mutual trust and respect, ultimately raising the standard of living and the stability of the communities of the countries in which the Company operates. ONGC Videsh makes valuable contribution in many ways e.g. through payment of tax revenues to governments; by investing in education and training and improving employment opportunities for nationals; providing medical/sports/agricultural facilities to the local community etc.

ONGC Videsh operates in highly competitive international oil and gas sector by competing with the best in the industry. Over the years, ONGC Videsh has built inherent capabilities and expertise in its areas of operations. ONGC Videsh has developed strong partnership alliance with a host of IOCs and NOCs including ExxonMobil, British Petroleum, Shell, ENI, Total, Repsol, Statoil, Chevron, Petrobras, Sodeco, Socar, Rosneft, Daewoo, Kazmunaigaz (KMG), Petro Vietnam, CNPC, Sinopec, PDVSA, Petronas, Anadarko and Ecopetrol. It has highly skilled human resource with excellent technical and management capabilities. The company has built facilities for evaluation, interpretation, economic modeling, FEED, design and execution of oil and gas projects and enjoys the technical and human resource support from ONGC. ONGC Videsh has developed core expertise in due diligence, techno-commercial evaluations, bid negotiations and transaction documentations.

ONGC Videsh is focused to support India’s oil and gas security through overseas participation in oil and gas Exploration and Production activities. The emerging industry landscape augurs well for the company as it evolves into a leading New Multinational Oil Company (NMOC). As a NMOC, the company is positioning itself to be a key ONGC growth vehicle by aiming for 60MMTOE production by 2030.

ONGC Videsh has emerged as India’s most internationalized company based on the Trans nationality Index (TNI) as per survey conducted jointly by Indian school of Business (ISB), Hyderabad and Fundacao Dom Cabral (FDC), Brazil.

For further details, log on to www.ongcvidesh.com