Calcutta, Sept. 29: Oil and Natural Gas Corporation (ONGC) plans to make substantial investment abroad through its wholly-owned subsidiary ONGC Videsh (OVL) to increase oil equity.
ONGC director (technology & field services) . Lal said the company aims to source 15-20 million tonnes of crude from abroad by 2020.
“OVL already has a presence in a number of countries and talks are on with others. We hope to cross our target even before the deadline is over,” he said.
The upstream major has already received the first tranche of oil equity from Sudan three months ago. The company is in an advanced stage to acquire equities in a couple of projects in Iran.
The company will set up a specialised trading desk in India to market crude received from investments in oil fields abroad and surplus petroleum products from its subsidiary Mangalore Refineries Petrochemicals Limited.
“We are talking to a few consultants for the specialised trading desk,” company sources said.
Besides managing risk and hedging volatility in the international oil market, the desk will help the company locate crude buyers.
Lal, who came here to start drilling the 46th well in the Bengal basin near Contai in Midnapore, said the company was aggressive in its domestic exploration activities as well.
“Even though explorations are time consuming, we are hopeful of striking oil and gas in good quantity in the country”, he said.
The corporation has already invested about Rs 700 crore in the Bengal basin without success.
“There is a 50 per cent possibility of striking oil in this basin. We will be able to understand the prospect of this field only after the drilling procedure is complete,” he said.