Source: LiveMint.com, Mar 27, 2019
Mumbai: State-run Oil and Natural Gas Corp. Ltd (ONGC) plans to leverage its units, ONGC Tripura Power Co. Ltd (OTPC), Hindustan Petroleum Corp. Ltd (HPCL), and Mangalore Refinery and Petrochemicals Ltd (MRPL), to win upstream linked electricity generation and refining projects overseas, said a senior company executive. The move is likely to help boost India’s energy security.
India is likely to continue to depend on fuel imports as domestic production has been unable to cope with rising demand. ONGC, which accounts for 73% of India’s oil and gas output, acquired the government’s stake in HPCL for ₹36,915 crore last year.
ONGC has, however, been facing concerns over its production performance. Its gas output grew 6.6% in the third quarter as compared to the corresponding period in the last fiscal, even as crude oil production fell around 5%. The government recently asked ONGC and Oil India Ltd to sell 66 of their small oil and gas fields to private firms.
“If there is a refining-linked upstream opportunity, we will explore it. We wouldn’t be doing a stand-alone refining play. We are open to it,” said the ONGC official mentioned above, requesting anonymity. Read the rest of this entry »