The Oil and Natural Gas Corporation Limited (ONGC) is an Indian central public sector undertaking which is the largest government-owned oil and gas explorer and producer in the country. It accounts for around 70 per cent of India's domestic production of crude oil and around 84 per cent of natural gas. Headquartered in Delhi, ONGC is under the ownership of the Government of India and administration of Ministry of Petroleum and Natural Gas. It was founded on 14 August 1956 by the Government of India. In November 2010, the Government of India conferred the Maharatna status to ONGC.
In a survey by the Government of India for fiscal year 2019–20, it was ranked as the largest profit making Central Public Sector Undertaking (PSU) in India. It is ranked 5th among the Top 250 Global Energy Companies by Platts.
ONGC is vertically integrated across the entire oil and gas industry. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India, owns and operates over 11,000 kilometers of pipelines in the country and operates a total of around 230 drilling and workover rigs. Its international subsidiary ONGC Videsh currently has projects in 15 countries. ONGC has discovered 7 out of the 8 producing Indian Basins, adding over 7.15 billion tonnes of In-place Oil & Gas volume of hydrocarbons in Indian basins. Against a global decline of production from matured fields, ONGC has maintained production from its brownfields like Mumbai High, with the help of aggressive investments in various IOR (Improved Oil Recovery) and EOR (Enhanced Oil Recovery) schemes. ONGC has many matured fields with a current recovery factor of 25–33%.[5] Its Reserve Replacement Ratio for between 2005 and 2013, has been more than one.[5]
During FY 2012–13, ONGC had to share the highest ever under-recovery of inr 89770000000000 (an increase of inr 17890000000 over the previous financial year) towards the under-recoveries of Oil Marketing Companies (IOC, BPCL and HPCL).[5]
On 1 November 2017, the Union Cabinet approved ONGC for acquiring a majority 51.11% stake in Hindustan Petroleum Corporation Limited (HPCL).[6] On 30 January 2018, ONGC completed the acquisition of 51.11% stake in HPCL.[7]
History
Foundation to 1956
Before the independence of India in 1947, the Assam Oil Company in the north-eastern and Attock Oil Company in the north-western part of the undivided India were the only oil-producing companies, with minimal exploration input. The major part of Indian sedimentary basins was deemed to be unfit for the development of oil and gas resources.[8]
After independence, the Central Government of India realized the importance of oil and gas for rapid industrial development and its strategic role in defence. Consequently, while framing the Industrial Policy Statement of 1948, the development of the petroleum industry in the country was considered to be of utmost necessity.[8]
Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources of India. In Assam, the Assam Oil Company was producing oil at Digboi (discovered in 1889) and Oil India Ltd. (a 50% joint venture between Government of India and Burmah Oil Company) was engaged in developing two newly discovered large fields Naharkatiya
Operations
ONGC's operations include conventional exploration and production, refining and progressive development of alternative energy sources like coal-bed methane and shale gas.[23] The company's domestic operations are structured around 11 assets (predominantly oil and gas producing properties), 7 basins (exploratory properties), 2 plants (at Hazira and Uran) and services (for necessary inputs and support such as drilling, geo-physical, logging and well services).[23]
Subsidiaries
ONGC Videsh Limited (OVL) is the international arm of ONGC. It was rechristened on 15 June 1989. 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. It currently has 38 projects across 17 countries. Its oil and gas production reached 8.87 MMT of O+oEG in 2010, up from 0.252 MMT of O+OEG in 2002/03. ONGC holds 100% stake in ONGC Videsh Limited.[5]
Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil
Products and services
ONGC supplies crude oil, natural gas, and value-added products to major Indian oil and gas refining and marketing companies. Its primary products crude oil and natural gas are for the Indian market.[23]
Listings and shareholding
The equity shares of ONGC are listed on the Bombay Stock Exchange,[47] where it is a constituent of the BSE SENSEX index,[48] and the National Stock Exchange of India,[49] where it is a constituent of the S&P CNX Nifty.[50]
As of 31 March 2013, Government of India held around 69% equity shares in ONGC. Over 480,000 individual shareholders hold approx. 1.65% of its shares.[51] Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 7.75% shareholding.
Employees
As of 31 March 2024, the company has 25,847 employees, out of which 2,043 are women (7.9%).[52]
Awards and recognitions
- ONGC is the top employer in the energy sector in India, in the Randstad Awards 2013.[53]
- ONGC was one of 12 winners of the 'Golden Peacock Award 2014' for its corporate social responsibility practices,[54] and one of 24 winners of the 'Golden Peacock Award 2013' in the occupational safety and health category.[55]
- In April 2013, it was ranked at 155th place in the Forbes Global 2000 for 2012.[56][57]
Controversies
Despite being owned by the government of India, ONGC has repeatedly been found not claiming its rightful payments from private players, especially for the use of oil fields, oil rigs and concessions.[63]
ONGC was owed inr 920000000000 from Reliance Industries Limited (Petrochemicals) for the use of blocks of oil fields. This was highlighted by the Comptroller and Auditor General of India (CAG), the overseer of expenditures of the Indian Government. However, as of 2018, this outstanding amount was still not paid by Reliance Industries Limited to ONGC.[64]
On 21 April 2021, three employees (Mohini Mohan Gogoi, Alakesh Saikia, Retul Saikia) of the ONGC were allegedly abducted from Lakuwa field of Assam's Sivasagar district.[65] Authorities suspect that the banned United Liberation Front of Asom (Independent) is behind the abduction.[66]
See also
- ONGC FC
- List of companies of India
- List of largest companies by revenue
- List of corporations by market capitalisation
- Make in India
- Forbes Global 2000
- Fortune India 500
- Indian Institute of Technology (Indian School of Mines), Dhanbad
- Rajiv Gandhi Institute of Petroleum Technology
Further reading
- Matthew Shutzer. 2022. "Oil, Money and Decolonization in South Asia." Past & Present.
- "UPSTREAM INDIA Fifty Golden Years of ONGC" by ONGC group publications year 2006 is official narrative of the history of ONGC.
- Story of ONGC by I.A.Farooqi gives a historical account of Oil and Natural Gas Corporation from its foundation to the year 2000.
External links
References
- Oil Ministry mulls proposal for new ONGC chairman, may extend higher age limit mint, 19 June 2022, retrieved 5 July 2022^
- ONGC Financial statements moneycontrol.com, retrieved 31 May 2022^
- Shareholding pattern