Public sector oil major Oil and Natural Gas Corporation (ONGC) is set to witness a significant change in
its revenue stream over the next couple of years. The company is close to completing two of its major
projects not linked directly to oil or gas production. This includes two petrochemical projects and a power
plant.
“We are building two projects for value added products such as the petrochemical, one at Dahej (in
Gujarat) and one near Mangalore

Growth for the firm has come by moving into exploration/production outside India via ONGC Videsh, and
through its acquisition of MRPL — an oil refinery. These projects will mark another level of diversification
for the firm that’s trying to convert its cash flows to growth

ONGC has near monopoly in India's oil E&P industry producing nearly 90 percent of the
country's crude oil and natural gas. Till the late 1990s, the company was mainly confined to
upstream activities of E&P. In order to reduce risks inherent in confining to one activity and to
achieve financial stability and steady growth, ONGC acquired a major equity stake in Mangalore
Refinery and Petrochemicals Limited so as to enter the down stream activities of refining. With
this, ONGC became the first integrated oil company in India.

ONGC's plans in 2004 to enter insurance, power generation and shipping businesses as part of its diversification
program.

ONGC tried to overcome the declining production of oil and natural gas by focusing on new domestic production
enhancement programs, offshore exploration and technology upgradation. To improve productivity and financial
performance, ONGC concentrated on human resources development and financial restructuring.
 Laxmi Niwas Mittal, chairman of world’s largest steel company, LNM group and Subir Raha, chairman of India’s
largest oil producing company, ONGC signed an agreement to float two Cyprus based companies (ONGC-Mittal
Energy Ltd and ONGC-Mittal Energy Services Ltd) in order to acquire overseas oil and gas assets and energy related
businesses. The deal would help the two companies to set up an energy consortium globally. The two new entities
would take up projects related to exploration, development, production, evacuation and related consequential
processing of hydrocarbons, in the form of oil, condensates and gas (including LNG). These activities would be
carried out in 25 countries where LNM group had strong presence. For ONGC, the new strategy was to lay a strong
foothold in a number of lucrative acreages, against stiff competition from international oil companies, in the Middle
East, Central Asia and East European countries.

Oil and Natural Gas Corporation Ltd. (ONGC) has entered into an MoU with global oil major BP, to collaborate in Exploration
& Production (E&P) business in India and abroad, which include sharing of knowledge in Coal Bed Methane (CBM) and
Deepwater exploration. 

After signing of the MoU, ONGC CMD Mr. R S Sharma said that both the oil majors have varied
experiences in Exploration and Production business and this synergy will give competitive
advantages to both entities in global operations. 

The Oil and Natural Gas Corporation Ltd. (ONGC) has

entered into an MoU with global oil major BP, to
collaborate in Exploration and Production (E and P)
business in India and abroad, which include sharing
of knowledge in Coal Bed Methane (CBM) and
Deepwater exploration.