ONGC rejects government’s request to list subsidiary

The Dollar Business Bureau Rejecting the government’s proposal to list its fully owned subsidiary ONGC Videsh Ltd. (OVL), ONGC has said the time is not right to hit the capital market. “There is no proposal with the company to list OVL at present,” ONGC Chairman and Managing Director Dinesh K. Sarraf, said on Thursday.   That Sarraf couldn’t have been more right can be gauged from the fact that despite a 6.2% y-o-y rise in production, OVL’s bottom line has seen a 57.2% drop to Rs.1,904 crore in FY2015, on the back of falling crude oil prices. It’s worth noting that at the end of FY2015, OVL has a stake in 36 projects in 17 countries, including Azerbaijan, Kazakhstan, Russia, Brazil, Colombia, Venezuela, Iraq, Syria, Libya, South Sudan, Sudan, Mozambique, Bangladesh, Myanmar, Vietnam and New Zealand. While 13 of these 36 projects are operational – leading to the production of 5.533 MMT crude oil and 3.341 BCM natural gas in FY2015 – four are under development, 17 are exploratory and the remaining two are pipeline projects.      

May 29, 2015 | 7:30 pm IST.