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ONGC's proposed follow-on public offer is now expected to go through in July-August this year, said Mr S. Sundareshan, Secretary, Ministry of Petroleum and Natural Gas, here on Wednesday. The Government expects to raise Rs 11,000 crore by diluting its equity by five per cent. The FPO was originally proposed in March, but has been rescheduled. The rescheduling was partly because of delay in appointment of independent directors on ONGC board to fulfil SEBI's listing requirement.
According to Mr Sundareshan, oil marketing companies (OMCs) in India are likely to be burdened with Rs 2 lakh crore in 2011-12 due to under-recoveries as crude prices are hovering around $120 per barrel and OMCs are constrained to market products at subsidised, government-controlled rates.
Mr Sundareshan added, “We would still make profits.” He said his Ministry's officials will soon be meeting the Finance Minister to take remedial steps, failing which the burden of Rs 2 lakh crore would have to be borne.
$12 b investment so far
Speaking to reporters on the sidelines of the Golden Jubilee celebrations of ONGC's Ahmedabad Asset, he said private and public sector in India will be investing Rs 65,000 crore in the next three years to increase oil refining capacity from the existing 188 million tonnes per annum (mtpa) to 240 mtpa, which is around 90 mtpa more than the country's annual consumption. Also, India's public and private sectors have so far invested $12 billion in the development of oil and gas fields, he said.
Replying to a question about the proposed uniform pricing for APM and imported LNG, Mr Sundareshan said, the Government will take a decision after submission of a report by Mr Choudhary, Member, Planning Commission, this year. The planned increase in oil production by OVL from the present 50 mtpa to 60 mtpa in its global assets is also to be decided by the Director-General of Hydrocarbons and the Union Government soon.
OVL now had 34 assets in 15 countries and was producing oil and products in nine of them, equivalent of 20 per cent of India's domestic production. In India, LPG has already reached 50 per cent of population and 75 per cent population will have access to it by 2015.
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