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ONGC's existential problem: India's exploration conglomerate running empty

India's dependence on imported oil and gas is rising steadily but the country's premier exploration conglomerate is running on empty

Without a clear roadmap for future, ONGC grapples with existential crisis

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The board still lacks a full-time chairman. Subhash Kumar, director (finance), is holding additional charge as chairman and managing director

Subhomoy Bhattacharjee New Delhi

6 min read Last Updated : Jul 16 2021 | 8:58 PM IST

It is rare for cabinet ministers to tick off state-owned companies publicly, yet that was what then petroleum and natural gas minister Dharmendra Pradhan did for ONGC.

Speaking at an event on June 29, Pradhan said he has asked India’s premier exploration company to find fresh oil acreages fast. “Do it yourself through some joint venture (or) through a new business model. But the government cannot permit you to hold resources for an indefinite time.”

The reason for this stricture is India’s rising dependence on imported oil and gas. Or, to put it another way, falling domestic production (see chart:

Topics : ONGC oil and gas Indian oil demand Oil imports Dharmendra Pradhan Oil industry Oil production

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