ONGC to retain OVL as flagship

ONGC Videsh Ltd (OVL), the 100 per cent subsidiary of Oil & Natural Gas Corp (ONGC), will remain India's flagship firm for acquisition of oil and gas fields abroad, the company said.

OVL will continue to enjoy fast track project approval and special empowerment, a statement from the company said, after a Monday meeting of the petroleum ministry and public sector oil majors which decided that the equity capital of OVL will not be split among the oil PSUs.

Instead, the oil PSUs may consider setting up a joint venture company on the lines of OVL to pitch for projects abroad. ONGC, a listed corporation, also informed the Bombay Stock Exchange (BSE) that there is no change in the status and empowerment of OVL, nor any change is intended.

The government has provided a specific empowerment procedure to facilitate overseas Exploration & Production (E&P) by OVL. OVL owns participating equity in ten projects in eight countries. "There is no change in the status and empowerment of OVL, nor is any change intended. Further, there is no plan for ONGC to form another subsidiary or joint venture for overseas E&P investments," the statement said, quoting ONGC and OVL chairman Subir Raha.

The statement said that that "there is no plan for ONGC to form another subsidiary or joint venture for overseas E&P investments." At present, OVL owns participating equity in ten projects in eight countries.

Raha was quoted as saying that ONGC-OVL will continue to consider participation of other PSU oil or gas companies in E&P projects in India and overseas, on case-to-case basis.