By: ICN Bureau
Last updated : May 01, 2021 2:51 pm
The company has continuously been reviewing its engagements to move up higher in the value chain
ONGC management feels that its potential restructuring will be a win-win for all stakeholders as it will deliver greater value and make the company a stronger commercial organisation, at par with the best in the world.
The Ministry of Petroleum and Natural Gas has been continuously encouraging ONGC to play a much larger role in the context of India’s oil and gas sector. ONGC's Energy Strategy 2040 outlines strategic growth initiatives across the energy value chain and the Ministry is further augmenting the role of the company in the domestic upstream sector.
ONGC has continuously been reviewing its engagements to move up higher in the value chain to concentrate on areas where the expected risk-reward payoff offers better business opportunities for growth. ONGC has benefitted from participation of other players and opportunity specific alliances which have helped ONGC enhance value for itself, besides releasing ONGC resources to pursue more promising opportunities with perceived better risk return tradeoff.
In its efforts to augment production of oil and gas, ONGC is endeavoring to engage all interested players so that the concept of ‘Atmanirbhar Bharat’ is the central theme of our domestic project execution.
On the back of enabling policy facilitation by the Government, ONGC has rolled out its separate Gas vertical, which will increase its activities in the gas sector leveraging on its strong domestic and international presence. It is also taking steps to augment its renewables portfolio.
ONGC is also looking into strategic relationships and close alliances with key international players through ONGC Videsh. The intention is to invite foreign participants to explore Category-II and Category-III basins which match the size and scale of expectations and portfolio of these large players.
Despite uneconomical gas prices, ONGC has been aggressively pursuing its deepwater projects in the East Coast and a couple of shallow water projects in the West Coast. ONGC has also a plan of acquiring much larger acreage through OALP. There are certain issues around structure where decisive steps can be evaluated only once the industry is completely under GST regime.