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Profile of ONGC – Oil and Natural Gas Corporation Limited

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Oil and Natural Gas Corporation Limited (ONGC) was incorporated on June 23, 1993) is an Indian public sector petroleum company. It is a Fortune Global 500 company ranked 335th, 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. It was set up as a commission on August 14, 1956. Indian government holds 74.14% equity stake in this company.

ONGC is engaged in exploration and production activities. 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 kilometers of pipelines in India. Until recently (March 2007) it was the largest company in terms of market cap in India.

History

In August 1956, the Oil and Natural Gas Commission was formed. Raised from mere Directorate status to Commission, it had enhanced powers. In 1959, these powers were further enhanced by converting the commission into a statutory body by an act of Indian Parliament.

Global Ranking

 

  • ONGC ranks as the Numero Uno Oil & Gas Exploration & Production (E&P) Company in Asia, as per Platts 250 Global Energy Companies List for the year 2007.

 

  • ONGC ranks 23rd Leading Global Energy Major amongst the “Top 250 Energy Majors of the World in the Platt’s List” based on outstanding performance in respect of Assets, Revenues, Profits and Return on Invested Capital (RIOC) for the year 2007.

 

  • ONGC is the only Company from India in the Fortune Magazine’s list of the World’s Most Admired Companies 2007. ONGC is 9th position in the Industry of Mining, crude oil production.

 

  • ONGC ranks 239th position in the prestigious Forbes Global 2000 and Numero Uno ranking amongst Indian Companies.

 

  • ONGC ranks 369th position in Fortune Global 500 list for the year 2006 based on Revenues.

 

  • ONGC retains Numero Uno position from India in terms of Profits with overall global ranking of 121st.

 

Represents India’s Energy Security

 

ONGC has single-handedly scripted India’s hydrocarbon saga by:

 

  • Establishing 6.42 billion tonnes of In-place hydrocarbon reserves with more than 300 discoveries of oil and gas; in fact, 6 out of the 7 producing basins have been discovered by ONGC: out of these In-place hydrocarbons in domestic acreages, Ultimate Reserves are 2.29 Billion Metric tonnes (BMT) of Oil Plus Oil Equivalent Gas (O+OEG).

 

  • Cumulatively producing 762.3 Million Metric Tonnes (MMT) of crude and 440.7 Billion Cubic Meters (BCM) of Natural Gas, from 115 fields.

 

  India’s Most Valuable Company

 

  • “Biggest Wealth Creator Award” for the period 2000-2006 instituted by M/s Motilal Oswal Securities Ltd., third time in a row.

 

  • Ranked as the most respected Company in PSU Category in the 2006 Business World Survey, with 13th position in the league of the most respected Indian Corporate.

 

  • Tops the Business India Super 100 list (among 284 Indian Companies having Sales in excess of Rs. 500 Crore), based on Sales, Profit After Tax (PAT), Net Fixed Assets and Market Capitalization (Dec 2006)

 

  • Topped the visibility metrics in Indian Oil and Gas Sector and the only PSU in the top 10 list of Indian Corporate newsmakers.

 

  • Moody’s Investor Services awarded the highest-ever Credit Rating for an Indian Corporate – Baa1 (indicative Foreign Currency debt rating)

 

  • CRISIL and ICRA also reaffirmed ONGC the highest credit rating of AAA and LAAA respectively.

 

 Strategic Vision: 2001-2020

 

  • To focus on core business of E&P, ONGC has set strategic objectives of:

 

  • Doubling reserves (i.e. accreting 6 billion tonnes of O+OEG).

 

  • Improving average recovery from 28 per cent to 40 per cent.

 

  • Tie-up 20 MMTPA of equity Hydrocarbon from abroad.

 

  • The focus of management will be to monetise the assets as well as to assetise the money.

 

Financials (2006-07)

 

  •  ONGC posted a net profit of Rs. 156.429 billion, the Highest by any Indian Company

 

  •  Net worth Rs. 614 billion

 

  •  Practically Zero Debt Corporate

 

  •  Contributed over Rs. 286 billion to the exchequer

 

 The Road Ahead

 

  • ONGC looks forward to become an integrated energy provider, with:

 

  •  New Discoveries and fast track development

 

  •  Equity Oil from Abroad

 

  •  Downstream Value Additions & Forward Integration

 

  •  Leveraging state-of-the art technology and global best practices

 

  •  New Sources of Energy

 

  •  Production from small and marginal fields