Oil and Natural Gas Corporation

Oil and Natural Gas Corporation (ONGC) is an Indian multinational oil and gas company headquartered in New Delhi, India. It is a public sector undertaking (PSU) under the administrative control of the Ministry of Petroleum and Natural Gas, Government of India. ONGC is India’s largest oil and gas exploration and production company, contributing to around 70% of India’s domestic production. The company also has a significant overseas presence, with operations in several countries.

History

ONGC was founded on 14 August 1956 as the Oil and Natural Gas Commission, following the merger of the Oil and Natural Gas Directorate, which was established in 1955, and the Directorate General of Petroleum Concessions. In 1994, the company was renamed as the Oil and Natural Gas Corporation Limited. ONGC played a crucial role in India’s first offshore oil discovery in 1974 at Bombay High, which remains the country’s largest offshore oil field.

Operations and Subsidiaries

Domestic Operations ONGC has a strong presence in India’s upstream sector, with exploration and production activities spanning across the country. The company has discovered 7 out of the 8 producing basins in India, including the major oil and gas fields in Mumbai High, Gujarat, Assam, and Andhra Pradesh. ONGC has also made significant discoveries in deep-water and ultra-deep-water areas, such as the Krishna Godavari basin.

Overseas Operations

ONGC Videsh Limited (OVL), the overseas arm of ONGC, has a presence in 35 projects across 15 countries, including Russia, Venezuela, Brazil, Colombia, Sudan, South Sudan, Iran, Iraq, UAE, Myanmar, Vietnam, and New Zealand. Some of the key overseas assets include the Sakhalin-1 project in Russia and the Greater Nile Oil Project in Sudan.

Subsidiaries and Joint Ventures

ONGC has several subsidiaries and joint ventures, including:

• Mangalore Refinery and Petrochemicals Limited (MRPL)
• ONGC Petro additions Limited (OPaL)
• ONGC Tripura Power Company Limited (OTPC)
• ONGC Mangalore Petrochemicals Limited (OMPL)
• Petronet LNG Limited (PLL)
• Pawan Hans Limited (PHL)

Exploration and Production

ONGC is the largest exploration and production company in India, with a proven track record of discovering and developing oil and gas fields. The company has adopted state-of-the-art technologies, such as 3D and 4D seismic surveys, horizontal drilling, and enhanced oil recovery techniques to optimise its exploration and production activities. ONGC has also made significant investments in research and development to enhance its capabilities in deep-water and ultra-deep-water exploration.

Financial Performance

ONGC has consistently been one of the most profitable public sector companies in India. In the financial year 2021-22, ONGC reported a revenue of ₹4,61,450 crore (approximately US$61 billion) and a net profit of ₹40,306 crore (approximately US$5.3 billion). The company has a strong balance sheet and has been consistently paying dividends to its shareholders.

Corporate Social Responsibility (CSR) and Sustainability

ONGC has a robust CSR and sustainability program, focusing on areas such as education, healthcare, skill development, and environmental conservation. The company has undertaken several initiatives, such as the ONGC Super 30 program, which provides free coaching to economically disadvantaged students for IIT-JEE entrance exams, and the ONGC Green Hub project, which aims to preserve the biodiversity of the Eastern Himalayas. ONGC has also set ambitious targets for reducing its carbon footprint and has invested in renewable energy projects, such as wind and solar power.

Future Outlook

ONGC has set a target of doubling its oil and gas production by 2040 to meet India’s growing energy demand. The company has a strong portfolio of domestic and international projects and is well-positioned to capitalise on the opportunities in the upstream sector. ONGC is also focusing on diversifying its operations into downstream and petrochemical segments to create an integrated energy company. With its strong financial position, technological capabilities, and experienced workforce, ONGC is poised to play a significant role in India’s energy security and economic growth in the coming years.