The Hindu Business Line : ONGC to ramp up crude production

Mr Subir Raha, Chairman and Managing Director, ONGC, with Mr N. Lal, Director, Technical, addressing a press conference in the Capital on Wednesday. - Kamal Narang

New Delhi , Sept. 29

OIL and Natural Gas Corporation (ONGC) today said that it would ramp up domestic crude oil production to 28-29 million tonnes per annum by 2007 from the current level of 26 million tonnes.

Addressing a press conference here today on the occasion of the Annual General Meeting (AGM), the ONGC Chairman and Managing Director, Mr Subir Raha, said that the company would be investing Rs 18,814 crore by 2007 to meet this objective.

Of this, Rs 14,981 crore would be towards investments in offshore projects and the remaining Rs 3,833 crore in onshore projects.

Reacting to the Government's move to ask companies to consider issue of bonus shares, Mr Raha said, "... investors have been expecting a bonus issue. We have taken note of it. The Government, however, has so far not put forth any such proposal. As and when it comes up, the board will take a call".

With regard to ONGC's stock holding in GAIL (India) and Indian Oil Corporation Ltd, Mr Raha said that, "there was no intention at present to sell out the equity".

On the Panna-Mukta-Tapti fields issue where the price of gas is under review, Mr Raha said that GAIL (India) Ltd, the gas marketer, was unwilling to accept any raise in price and unwilling to market the gas at a higher price.

"In this situation, we and the other investors (Reliance, BG) in the gas field are willing to market the gas.

"We are currently awaiting a formal response from GAIL (India) Ltd," he said.

Significantly, ONGC today ruled out entering the power sector as a diversification measure.

"There is no plan for diversification that is not connected with our value chain," Mr Raha said.

"We are thinking only in terms of integrating our core competence. There is no plan to enter power or any area that is not part of it," he stressed.

ONGC will be entering the petro-retailing business during the current fiscal without the assistance of any joint venture partner, Mr Raha replied to a query on ONGC's plans in the petro-retailing business.