ONGC charts Rs 30,000 cr capex for FY22 with 50% in turnkey projects

It is aiming at 22.56 million tonnes of crude oil and 24.89 billion cubic metres of gas production during the year

Oil and Natural Gas Corporation (ONGC) earmarked Rs 30,000 crore towards capital expenditure in financial year 2021-22, and aims at an out put of 22.56 million tonnes of crude oil and 24.89 billion cubic metres of gas during the year.

“ONGC estimates to spend Rs 15,500 crore in major lumpsum turnkey projects, Rs 13,600 crore on major services, Rs 2,250 crore on major material procurement in financial year 2021-2022,” a company statement said.

To aid domestic oil and gas industry, ONGC said it has provided a list of required goods and services over the coming five years. This commitment to local procurement was reiterated by ONGC management at a business partners meet focused on strengthening domestic supply chains.

“Over 300 business partners were invited to pitch their suggestions, in order to make the collaborative ecosystems more efficient. ONGC shared details with its partners on various initiatives such as the introduction of a new development order policy, introduction of online vendor invoice management system, encouragement towards start-ups, as well as promoting its efforts to encourage indigenous business partners,” the statement said.

Speaking at the meeting, ONGC Chairman and Managing Director, Subhash Kumar said, “ONGC is adopting technology-enabled process that can improve transparency, and minimise human intervention.”

ONGC’s business partners sought relaxation in bid evaluation criteria, such as financial criteria of contracted partners, experience of group companies to be considered for qualification, certification criteria of vessels, and realistic completion schedules for turnkey projects.

O P Singh, Director (Technology & Field Services) and Director In-charge of Materials Management, said that the focus on promoting localisation initiatives are under ONGC’s push for ‘Aatmanirbhar Bharat’. “The move for promoting local ventures is a key driver in this reform exercise by ONGC, whose average annual purchases are in excess of INR 30,000 crore,” Singh said.