State-run Oil and Natural Gas Corporation (ONGC), through the Perspective Plan 2030, has set ambitious long-term targets. In 18 years, ONGC would seek to double its exploration and production growth, triple its revenues and earnings before interest, taxes, depreciation, and amortisation, and quadruple its market capital. It also plans a six-fold rise in international exploration and production (E&P).
To achieve this, ONGC plans to invest Rs 11,00,000 crore by 2030. “An enabling factor to achieve these goals would be focus on foreign E&P, with a target of 60 million tonnes of oil equivalent (mtoe) a year, against the current nine mtoe. Other focus areas are alliances for developing new types of hydrocarbon resources and exploration for over 450 mtoe of yet-to-find domestic hydrocarbons,” Chairman and Managing Director Sudhir Vasudeva had said at a meeting of analysts earlier this week.
The company also targets a production growth rate of four to five per cent, against the current two per cent. “If we want to grow at four per cent, we would have to go abroad. Prospects of Indian basins are limited, and these have not been explored enough. The perspective plan is to double our growth rate. We know this is difficult to achieve, but we are committed,” Vasudeva said.
ONGC's stand-alone net worth rose 18 per cent to Rs 1,35,266 crore in 2011-12, from Rs 1,14,531 crore in 2010-11. The company, which recorded a 102 per cent rise in net profit for the March quarter, owing to better realisation and a favourable exchange rate, gave a domestic oil production guidance of 27.54 million tonnes and a gas production guidance of 25.73 billion cubic metres for 2012-13. ONGC’s ultimate reserve accretion of 84.13 mtoe was the highest in two decades, the company said.
The foreign production target, if achieved, would see the ratio of the company’s domestic to foreign production change from 85:15 to 50:50 or 54:46 by 2030.
