Oil and Natural Gas Commission
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ONGC acquires largest proportion of total hydrocarbon area of geographical India. Its contribution to India’s gross petroleum and gas production is over 78 percent. ONGC accounts for almost 10 percent of India’s oil refining capacity. In addition to oil exploration and refining, this company also conducts businesses in liquefied natural gas (LNG) and transportation of hydrocarbons.
Brief history
Inception of ONGC goes back to 1955 with formation of oil and natural gas directorate under Ministry of Natural Resources and Scientific Research. This body was formed around a core of geo-scientists from Geological Survey of India. In 1956 this directorate promoted as a commission and ultimately to a statutory body in 1959. Oil and Natural Gas Commission was formed to plan, organize, implement and promote programs for development of petroleum resources, and production and sale of petroleum products.
Exploration led to establishment of oil fields in upper Assam regions and Cambay basin in Gujarat. In 1970’s oil fields were discovered in Bombay High now named Mumbai High. Most significant contribution of ONGC was to become a self-reliant exploration and production organization of global standards.
Products and services
Exploration of crude petroleum and natural gas is primary activity of Oil and Natural Gas Commission. It has till date discovered a reserve of 5 billion tons of hydrocarbons in form of crude oil. In addition to exploration and production activities within Indian territory, ONGC has forayed successfully into global exploration for hydrocarbon reserves.
Petronet LNG limited formed by ONGC, IOC (Indian Oil Corporation), BPCL (Bharat Petroleum Corporation Limited) and GAIL (Gas Authority of India Limited) with 12.5% share each have planned installing liquefied natural gas (LNG) terminals in Cochin in Kerala and Dahe in Gujarat of aggregate capacity of 7.5 million metric tons per annum (MMTPA).
Exploration Contract Monitoring (EXCOM) group is a commercial outlet of ONGC set up specifically for working with other government or private agencies on oil and gas exploration and production endeavors within Indian territory.
Financials
This Forbes Global company, ranked 198th (as of March 2008), earned profits amounting to US $4.11 billion and achieved sales of US $18.90 billion. Total assets amounted to US $33.79 billion during same time.
ONGC has a number of awards to its credit. Some of these are:
- ‘Biggest wealth creator’ award between years 2000-2006 conferred by M/s Motilal Oswal Securities Limited;
- Rated Baa1 by Moody’s Investor Services, highest ever credit rating for an Indian company;
- Ranked as most respected PSU (public sector undertaking) in 2006 by Business World
