Oil and Natural Gas Corporation

Oil & Natural Gas Corporation Limited

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Type	State-owned enterprise Public (NSE: ONGC, BSE: 500312)
Industry	Oil and Gas
Founded	14 August 1956
Headquarters	Dehradun, India
Key people	A. K. Hazarika (Chairman & MD)
Products	Petroleum Natural gas Petrochemicals
Revenue	US$ 22.599 billion (2010)
Operating income	US$ 6.752 billion (2010)
Net income	US$ 4.381 billion (2010)
Total assets	US$ 37.153 billion (2010)
Total equity	US$ 22.887 billion (2010)
Employees	32,826 (2010)
Website	www.ONGCIndia.com

File:ONGC Oil Platform.jpg

ONGC platform at Bombay High in the Arabian Sea

Oil and Natural Gas Corporation Limited (ONGC) (NSE: ONGC, BSE: 500312) is an Indian state-owned oil and gas company headquartered at Dehradun, India. It is a Fortune Global 500 company ranked 413, and contributes 77% of India's crude oil production and 81% of India's natural gas production. It is the highest profit making corporation in India, according to filings with the BSE of latest quarter results External Link. It was set up as a commission on 14 August 1956. Indian government holds 74.14% equity stake in this company.

ONGC is one of the Asia's largest and most active company involved in exploration and production of oil. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India. It produces about 30% of India's crude oil requirement. It owns and operates more than 11,000 kilometres of pipelines in India. It is one of the highest profit making companies in India. In 2010, it stood at 18th position in the Platts Top 250 Global Energy Company Rankings.

A turning point in the history of India’s oil sector was in 1994. While the oil sector was on the backburner of India's political realm for some time, is was brought to the forefront by the privatization of India's leading oil E&P organization, the ONGC. Simultaneously, there were steps taken for the enhancement of production on the Bombay High oil fields as the result of a INR 150 billion development investment.

One of Asia's largest oil E&P companies, ONGC became a publicly held company as of February 1994, following the Indian government's decision to privatize. This privatization was conceived and achieved (sweat equity) to a great extent by ONGC’s influential Association of Scientific and Technical Officers (ASTO) – spearheaded by the then Bombay top executives Ganesh P. Shahi and Amarjit S. Jowandha (DGM and Head - Management Services Group too) who worked closely with the then ONGC CMDs S. K. Manglik and S.L. Khosla, IAS and with Dr. Vijay Kelkar, Secretary, Ministry of Petroleum & Natural Gas, Government of India, among others. Amarjit S. Jowandha was able to usher in change from his imbibed learnings, inter alia, from his alma mater University of Bombay [Jamnalal Bajaj Institute of Management Studies (also referred to as JBIMS or just Bajaj]. Eighty percent of ONGC assets were subsequently owned by the government, the other 20% were sold to the public. At this time, ONGC employed 48,000 people and had reserves and surpluses worth INR 104.34 billion, in addition to its intangible assets. The corporation's net worth of INR 107.77 billion was the largest of any Indian company.

After its initial privatization, ONGC had authorized capital of INR 150 billion: it also met its need to raise INR 35 billion to invest in viable oil and gas projects. The Asian Development Bank (ADB) had also set a deadline for privatizing and restructuring at 30 June 1994, if loans were to be granted for development of two ONGC projects. As a consequence of the successful privatization, the loans were granted - US$267 million for development of Gandhar Field, and US$300 million for the gas flaring reduction project in the Bombay Basin. The successfully formulated and implemented privatization strategy put ONGC at par with other large multinational and domestic oil companies.

ONGC Videsh

ONGC Videsh is the international arm of ONGC. ONGC Videsh Limited (OVL) was rechristened on 15th June 1989 from the earstwhile Hydrocarbons India Private Limited, which was incorporated on 5th March, 1965. Over a period of time, OVL has grown to become the second-largest E&P company in India both in terms of oil production and oil and gas reserve holdings. The primary business of OVL is to prospect for oil and gas acreages abroad including acquisition of oil and gas fields, exploration, development, production, transportation and export of oil and gas. OVL is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC). Starting with the exploration and development of the Rostam and Raksh oil fields in Iran and undertaking a service contract in Iraq, a major breakthrough was achieved by OVL in 1992 in Vietnam with the discovery of two major free gas fields, namely LanTay and LanDo, in partnership with British Petroleum and Petro-Vietnam. The success carried on thereafter. In 2001, OVL acquired 20% stake in Sakhalin-1 project in the far east of Russia. In January 2009, OVL completed the acquisition of Imperial Energy Corporation Plc.- an UK listed company, having its exploration and production assets in Tomsk region of Western Siberia, Russia with an investment of over USD 2.1 billion. The company, adopting a balanced portfolio approach, maintains a combination of producing, discovered and exploration assets, working as operator in 11 projects and joint operator in 6 projects. OVL produces hydrocarbons from its 9 assets, namely, Russia (Sakhalin-I and Imperial), Syria (Al-Furat Project), Vietnam (Block 06.1), Colombia (Mansarover Energy Project), Sudan (Greater Nile Oil Project and Block 5A), Venezuela (San Cristobal Project) and Brazil (BC-10) ; 6 projects are in development phase and 23 are in the exploration phase. OVL has successfully completed 741 km long pipe line project in Sudan. OVL’s international oil and gas operations produced 8.87 MMT of O+OEG in 2009-10 as against 0.252 MMT of O+OEG in 2002-03. OVL’s overseas cumulative investment has crossed USD 10 billion. While OVL participates and operates in varied environments – both political and geographical, it is committed to the highest standards of Occupational Health, Safety and Environment protection and compliance to all applicable local laws and regulations. Understanding well its Corporate Social Responsibility, OVL makes valuable contributions to the communities and economies in which it operates by investing in education and training, improving employment opportunities for nationals, and providing medical, sports and/or agricultural facilities, besides payment of tax revenues to local governments. Some of the leading alliance partners of OVL are BP, CNPC, Ecopetrol, ENI, Exxon, Statoil Hydro, PDVSA, Petrobras, Petronas, Petrovietnam, Repsol, Rosneft, Shell, Sinopec, Total and TPOC.

International rankings

• ONGC has been ranked at 198 by the Forbes Magazine in their Forbes Global 2000 list for the year 2007.
• ONGC has featured in the 2008 list of Fortune Global 500 companies at position 335, a climb of 34 positions from rank of 369 in 2007.
• ONGC is ranked as Asia’s best Oil & Gas company, as per a recent survey conducted by US-based magazine ‘Global Finance’
• 2nd biggest E&P company (and 1st in terms of profits), as per the Platts Energy Business Technology (EBT) Survey 2004
• Ranks 24th among Global Energy Companies by Market Capitalization in PFC Energy 50 (December 2004).
• Economic Times 500, Business Today 500, Business Baron 500 and Business Week recognizes ONGC as most valuable Indian corporate, by Market Capitalization, Net Worth and Net Profits.

Other Info

In the Year 2006 a Commemorative Coin set was released to mark 50 Years of ONGC. State Bank of India is the only other organisation that has a commemorative released.

See also

• List of petroleum companies

Oil and Natural Gas Corporation Ltd. (ONGC) has been ranked No. 1 E&P 

Company in the world as per Platts 2010. A Global Energy major, it contributes to 80% of India’s Domestic Oil Production. ONGC’s annual net profit is in excess of 16,000 Crores currently. ONGC, through its subsidiary ONGC Videsh Ltd. (OVL), is India’s biggest Transnational Corporate with overseas investment of over 10 billion USD in 16 countries.

External links

• Official Website of ONGC Ltd
• Official Website of ONGC Videsh Ltd
• Website of MRPL

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