The Telegraph
Since 1st March, 1999
Email This Page
Rs 17,000 cr earmarked for ONGC makeover

Mumbai, June 26: Oil and Natural Gas Corporation Ltd (ONGC) will invest close to Rs 17,000 crore to emerge as a global integrated energy producer which will include the core activity of exploration and its new-found thrust to refining.

In exploration, the strategy will be to double oil reserves and improve the recovery factor to as high as 40 per cent while in refining, the plan is to invest in product upgradation and de-bottlenecking of ONGC’s most recent acquisition — Mangalore Refineries and Petrochemicals Ltd (MRPL).

Giving a detailed overview of the oil major’s plans at an analysts’ gathering yesterday, ONGC chairman Subir Raha said the company will be investing over Rs 16,000 crore in exploration and Rs 750 crore in MRPL. The investment in exploration will include Rs 6,000 crore through its subsidary ONGC Videsh.

ONGC, which has notched up a record Rs 10,000 crore plus net profit in the last financial year, has also lined up an ambitious foray into retailing of petro products. The public sector oil major plans to set up one to two outlets this year and scale it up to over 1,100 over the next three to five years.

According to Raha, availability of sites is a critical factor in retailing. ONGC has an advantage in this respect as it has large real estate holdings. “The company has large real estates, of which a few could be utilised for setting up such outlets,” he said. The products will be sold under the ONGC brand, he added.

“We plan to invest around Rs 400-500 crore in upgrading MRPL’s product quality and another Rs 250 crore in debottlenecking,” he had said in his presenation to the analysts.

According to Raha, the company should maintain its profits for the current year given that crude oil prices are ruling firm between $ 25 and $ 27 a barrel.

Email This Page