ONGC eying integration of domestic, overseas exploration activities

ONGC eying integration of domestic, overseas exploration
State-owned energy major ONGC is targeting combining its overseas and domestic oil and gas exploration work in a synergistic manner.

At present, the company's overseas exploration activities are undertaken through its foreign arm ONGC Videsh Limited (OVL).

"We are still working out the details, which will be submitted before the company's board," said Narendra Kumar Verma, ONGC Director (Exploration).

Integration of domestic and overseas exploration activities may not only lead to a reduction in costs but also enable ONGC and OVL to reap the benefits from each other's technical skills, domain knowledge, international quality benchmarking and global technological innovations.

"For ONGC, it (OVL) provides a growth engine, whereas for OVL, it (ONGC) provides required balance sheet, technical strength and strong national oil company brand for business development overseas", Narendra Kumar added.

Kumar ruled out the prospect of hiving off OVL into a separate entity.

Read more about: ongc
Story first published: Tuesday, April 30, 2013, 13:30 [IST]
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