ONGC working on strategic vision document: CMD

Mrityunjay Bose, DHNS, Mumbai,

Jan 26 2019, 19:16 ist
updated: Jul 08 2019, 23:49 ist

State-owned Oil and Natural Gas Corporation Limited (ONGC) is mulling a vision document “Strategic Roadmap 2040” that will lay the strategic roadmap for the nation's largest oil and gas producer.

The document is expected to craft the company’s strategy as an integrated energy major with a long-term perspective, Shashi Shanker, CMD, ONGC said during his speech after hoisting the national tricolour at the Republic Day at company’s headquarter in Dehradun.

“The document would reframe the vision and recast the objectives of Perspective Plan 2030”, he said. The Perspective Plan 2030 was ONGC’s earlier vision document that outlined strategic goals for the growth of organization and for the energy security of the nation.

“Our portfolio has seen a metamorphic change in the last decade. Today our business portfolio includes E&P, Refining, Petrochemicals, LNG, Pipelines, Retail, SEZ Infrastructure, Power etc. While these developments open up new vistas and opportunities for the Company, they also add layers of complexity to our decision-making and strategic framework”, he was quoted saying in a press statement issued in Mumbai.

Shanker said that ONGC is considering many opportunities for sustaining growth and fulfilling its vision of becoming a global energy leader. The exercise also envisages evaluating potential growth areas both within and outside India, so that ONGC is able to prioritize suitable actions well in advance.

Overall, FY’18 was a solid year for ONGC, Shanker said. Our standalone hydrocarbon production increased year on year; the uptick in gas output was particularly impressive. Crude oil output increased marginally from FY’17 levels while gas output increased by over 6% to 23.5 BCM from 22.0 BCM in FY’17, he added.

Shanker also expressed his satisfaction with the performance of the company’s subsidiaries. Overseas production recorded another strong year of growth. O+OEG output increased to over 14.00 MMtoe in FY’18 against 12.80 MMtoe in FY’17. Vankorneft and Lower Zakum in UAE were milestone acquisitions which instil confidence in the growth story going forward. Performance of domestic subsidiaries and JVs was also impressive. MRPL recorded its highest ever throughput of 16.31 MMT with a gross refinery

Margin (GRM) of US$ 7.54/bbl. The completion of acquisition of majority stake in HPCL which intensified our downstream presence is a notable development during the year. Petchem ventures – OPaL and OMPL – also made encouraging progress during the year. Both units are EBITDA positive and are expected to reach 100% utilization very soon, he said.