ONGC to draw perspective plan to integrate business

ONGC to draw perspective plan to integrate business

New Delhi, Nov 1: State-owned Oil and Natural Gas Corporation will draw a new perspective plan to integrate recent acquisition HPCL and just commissioned petrochemical unit with its mainstay oil and gas exploration and production operations, its Chairman and MD Shashi Shanker said.
The nation’s largest oil and natural gas producer is keen that its recent diversification into refining business as also petrochemicals is leveraged to full by integrating them with its core business.
“Post-acquisition of Hindustan Petroleum Corporation Ltd (HPCL) and commissioning of OPaL petrochemical plant at Dahej (in Gujarat), the company is drawing up a perspective plan to achieve proper synergies from the integration to maximize value, optimize cost and enhance efficiency,” Shanker said.
Synergies like the use of naphtha and other liquid hydrocarbons ONGC produces in the petrochemical unit set up by ONGC Petro-additions Ltd to produce value-added products as well as integrating refining stream of HPCL with company’s existing subsidiary, Mangalore Refinery and Petrochemicals Ltd can result in huge opportunities, he said.
“ONGC today is chasing the hydrocarbon molecule to the last mile to derive the best value from it at the minimal cost,” he said, adding the company wants to put in place a well-knit strategic plan to bolster its presence in the entire hydrocarbon value chain.
ONGC earlier this year bought government’s entire 51.11 per cent stake in HPCL for Rs 36,915 crore, adding 23.8 million tonnes of annual oil refining capacity to its portfolio that made it the third-largest refiner in the country after Indian Oil Corp (IOC) and Reliance Industries Ltd.
ONGC already is the majority owner of Mangalore Refinery and Petrochemicals Ltd, which has a 15-million tonnes refinery.
The idea is to prepare a strategy to strengthen the integration further so that business growth is well diversified and risk well distributed to tide over the volatility due to fluctuations in global crude oil prices, he said.
The company has already mapped the production profile from its deepwater project in the KG Basin.
Block KG-DWN-98/2 will help double ONGC’s gas production by 2022.
The current gas production stands at 23 billion cubic meters, which is expected to reach nearly 42 BCM by 2022. Oil production is also set to increase from the present level of 22 million tonnes to 25.6 million tonnes by 2022.

Leave a Reply

Your email address will not be published.