OVL on an oil slick, struggles with geopolitical and domestic challenges

For ONGC Videsh Ltd (OVL), the 65-year-old overseas subsidiary of state-owned oil exploration major ONGC, the past few years have seen a unique convergence of issues that could add new dimensions of complexity to its core business of overseas exploration and operation in the years ahead.

These new challenges concern both the geo-politics inherent in the global economy and the growing uncertainties in fossil fuel pricing against the global shift towards green energy. Covid-19 has added to these issues. It has not only impacted the demand for fuel but also made the acquisition process slower.

Added to these risks are