India: Produce or perish, Oil Ministry tells ONGC

Oil and Natural Gas Corp, nation’s largest oil and gas producer, will become a marginal player if it did not set right its priorities and produce more hydrocarbons, Oil Ministry has warned the state-run firm.

In a stinker of a message at the firm’s Strategy Meet at Agra on August 25-26, Petroleum Secretary MS Srinivasan said ONGC should stick to its core business of producing hydrocarbons and not divert resources for diversification plans like power and refinery projects.
According to the minutes of the meeting, Srinivasan said: “Globally E&P firms have ventured into integration only after becoming giants in hydrocarbon exploration and production.”

ONGC may become a marginal player in gas business in about 2-3 years, while in case of oil, the firm may fall to that position in about 5-6 years.

On ONGC chairman RS Sharma’s claims that the company accreted highest ever reserves last year, he said ‘reserve accretion should translate into production.’

EconomicTimes