Financial Daily from THE HINDU group of publications
Wednesday, Jun 23, 2004
Financial Daily from THE HINDU group of publications Wednesday, Jun 23, 2004 |
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Corporate
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Outlook ONGC eyes crude, gas shipping biz Our Bureau
Mr Subir Raha, Chairman and Managing Director of ONGC, at a press conference in the Capital on Tuesday. — Kamal Narang
New Delhi , June 22 OIL and Natural Gas Corporation (ONGC) is planning to enter the crude and gas shipping business in the coming years with an aim to become a $50-billion company in the next five years. The company earlier announced its plans to enter the petrochemical, power and LNG business. "We have two opportunities. The first being shipping crude oil from Sakhalin fields in far east Russia, where ONGC's subsidiary ONGC Videsh Ltd (OVL) has a 20-per cent stake and the field goes on production in 2005-06. The second is LNG shipping for our upcoming import terminal at Mangalore," the ONGC Chairman and Managing Director, Mr Subir Raha, told newspersons here today. ONGC is planning to initially go ahead with a petrochemical plant. Later, it will progress with the power plant. The diversification projects will entail an investment of $3-4 billion investment over the next five years. ONGC plans to invest about Rs 10,000 crore in the domestic oil sector and an additional $1 billion abroad in the current financial year. It also plans to enter the retail market by opening four to five gas stations this year. The company is seeking acquisitions in Africa, Latin America and the Commonwealth of Independent States, in the hope of producing 400,000 barrels a day from its overseas properties by 2010-11. ONGC has so far invested $3.5 billion in nine projects in countries such as Russia, Vietnam, Sudan and Angola, enhancing its proven reserves to more than five billion barrels. On the domestic front, the oil production is set to rise. "We have been able to restore Mumbai High production to 2,50,000 barrels per day on a sustained basis. Currently we are producing 2,65,000 barrels per day and we plan to rake up the production to 3,00,000 barrels per day by next year," Mr Raha said. According to ONGC Director (Exploration), Mr Y.B. Sinha, the company plans to raise its current crude oil output of 26 million tonnes by 1.5-1.8 million tonnes by 2006-07.
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