Firm Introduction ONGC Oil and Natural Gas Corporation Limited is the Indian Multinational oil company and one of the eight Mahartna central public sector enterprises a public sector undertaking

April 10, 2019 Critical Thinking

Firm Introduction
ONGC
Oil and Natural Gas Corporation Limited is the Indian Multinational oil company and one of the eight Mahartna central public sector enterprises a public sector undertaking (PSU) of India. Ministry of Petroleum and Natural Gas regulates all the operations of ONGC. At the beginning the head quarter of ONGC was located in Uttarakhand and later it was moved New Delhi. ONGC has been representing as the India’s largest firm in oil ; gas exploration and production since 1956. The crude oil production capacity of ONGC is about 3/4 of the overall national production as of now. It almost quenches the thirst of the country’s total oil demand. In addition to the oil production, the outcome of the natural gas is around 62% of India’s natural gas production. The gross revenue of ONGC has been registered as Rs.77907 Cr. for the year 2017. ONGC has been gradually earning the greater profits and was ranked as largest profit making public sector under in India. S;P Global Platt’s survey declared 11th rank among the top 250 Global Energy Companies to ONGC and its subsideries.
ONGC Videsh Limited (OVL)
ONGC Videsh is the ONGC’s international concerns division. ONGC Videsh set out its operations from 15 June 1989 in several countries and it emerged as a Miniratna schedule-A company of the Indian government. ONGC Videsh also working under It works under ministry of petroleum ; natural gas as like its parent company ONGC. Acquiring world-class exploration and production in the oil and natural gases is the primary objective of the ONGC Videsh. The major efforts are to focus on energy security to the country and business prospect for oil and gas operations throughout the world, including exploration, development and production of oil and gas. Currently, ONGC Videsh has been handling 41 projects across 20 countries. This is the most number of projects handled by any other firm in India in domestic and international level. ONGC Videsh registered the recent domestic production capacity 26.2% in oil and 20.7% in natural gases respectively for the year of 2018. With its affluent production portfolio in abroad ONGC Videsh emerged as the second largest petroleum producing company and next to its parent company.
ONGC Videsh is succeed by adopting a better composed portfolio approach and developing and implementing a combination of producing, discovered exploration and pipeline assets. Over all, ONGC Videsh is handling about 41 oil and gas projects in 20 countries all over the world. ONGC Videsh explore its operations in several countries such as Azerbaijan, Bangladesh, Brazil, Colombia, Iran, Iraq, Israel, Kazakhstan, Libya, Mozambique, Myanmar, Namibia, New Zealand, Russia, South Sudan, Sudan, Syria, UAE, Venezuela, and Vietnam. The total portfolio of ONGC Videsh is segmented into four. The majority of assets are involved in oil and gas production (15 assets) and various stages of Exploration (18 assets). The remaining minors segments include hydrocarbons (4 Assets) and pipeline projects (4 assets).
Over the years, ONGC Videsh has been adopting to develope its core capabilities and expertise in its crucial like exploration, development and production of oil and gas. ONGC Videsh strengthen its values and business operations by best partnership alliance with all the host of national and major international oil companies including British Petroleum, Sinopec, Total, Shell, , Petrobras, Sodeco, Daewoo, Petro Vietnam, Statoil ,Petronas, Anadarko, Ecopetrol and Chevron etc. ONGC Videsh deliberately fortified its core expertise in due diligence and bid negotiations. OVL is gaining a competitive advantage by updating in its techno-commercial assets and transaction documentations in daily bases.
As of now, the overall oil and mining investment of Indian in Africa is around 11.1% of the total Indian investment in all sectors in Africa. ONGC Videsh has invested around $8 billion in Africa so far and expected to double its investment over the next 3-4 years. Greenfield investments have been the dominant player especially in entry mode in African Investments for Oil and mining sector. ONGC Videsh invested around $12.5mn in the form of Greenfield Investment in Ivory Cost for Oil and mining in the year of 2002. In the petroleum industry as well ONGC Videsh has invested around US$600mn in Angola in 2004 in the form Greenfield Investment only. The Greenfield Investment was expanded in Nigeria about 6 billion for the operations in Coal, Oil and natural gas. ONGC Videsh is looking forward to explore its oil ; gas opportunities in other African countries include Angola, Algeria Equatorial Guinea Mozambique, Libya, Sudan and South Sudan.