Oil and Natural Gas Corporation (ONGC) began as the Oil and Natural Gas Directorate of the Union Ministry of Natural Resources and Scientific Research in 1955. Now, it is a transnational with interests spanning the entire hydrocarbon chain – from crude and natural gas to refinery products and renewable energy. It has gone on to become India’s largest oil and gas exploration and production company and produces around 70 per cent of India’s crude oil (equivalent to around 30 per cent of the country’s total demand) and around 60 per cent of its natural gas. Acclaimed for its corporate governance practices, Transparency International has ranked ONGC 26th among the biggest publicly traded global giants. ONGC’s feather in the cap was the recent acquisition of a majority stake in Hindustan Petroleum Corporation (HPCL), a move that significantly transforms the former’s downstream portfolio.
“Keeping in view the long term focus, your company has continued to maintain good investment level in its core area of exploration and production (E&P) despite the high volatility in the crude prices. We made as many as 12 hydrocarbon discoveries out of which two discoveries one each in Cambay and Cauvery Onshore, have already been put on production. Reserve accretion (2P) for the year stood at 67.83 MMtoe (million metric tonne of oil equivalent). With a reserve replacement ratio (RRR) of 1.48, we expanded our hydrocarbon resource base for the 12th consecutive year. Our crude production volumes remained steady with a marked improvement in gas output; capital outlays remained robust; profit edged higher and dividend payout was impressive,” CMD Shashi Shanker told shareholders while presenting its FY 2017-18 annual report.