In 1955, Government of India decided to develop the oil and natural gas resources in the various regions of the country as part of the Public Sector development. With this objective, an Oil and Natural Gas Directorate was set up towards the end of 1955, as a subordinate office under the then Ministry of Natural Resources and Scientific Research. The department was constituted with a nucleus of geoscientists from the Geological survey of India. In April 1956, the Government of India adopted the Industrial Policy Resolution, which placed mineral oil industry among the schedule 'A' industries, the future development of which was to be the sole and exclusive responsibility of the state.Oil and Natural Gas Corporation was established in 1959 and was incorporated on March 26, 1993 under the companies Act 1956 after converting a statutory commission namely Oil and Natural Gas Commission into a public limited company. ONGC is a schedule 'A' Navratna Company under the administrative control of the Ministry of petroleum and Natural Gas with 74.14% shareholding of the Government of India.
Since its inception in, Oil and Natural Gas Corporation (ONGC) has been instrumental in transforming the country's limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories. In the inland areas, ONGC not only found new resources in Assam but also established new oil province in Cambay basin (Gujarat), while adding new petroliferous areas in the Assam-Arakan Fold Belt and East coast basins (both inland and offshore).
ONGC went offshore in early 70's and discovered a giant oil field in the form of Bombay High, now known as Mumbai High. This discovery, along with subsequent discoveries of huge oil and gas fields in Western offshore changed the oil scenario of the country. Subsequently, over 5 billion tonnes of hydrocarbons, which were present in the country, were discovered. The most important contribution of ONGC, however, is its self-reliance and development of core competence in E&P activities at a globally competitive level.
The liberalized economic policy, adopted by the Government of India in July 1991, sought to deregulate and de-license the core sectors (including petroleum sector) with partial disinvestments of government equity in Public Sector Undertakings and other measures. As a consequence thereof, ONGC was re-organized as a limited Company under the Company's Act, 1956 in February 1994.
After the conversion of business of the erstwhile Oil & Natural Gas Commission to that of Oil & Natural Gas Corporation in 1993, the Government disinvested 2 per cent of its shares through competitive bidding. Subsequently, ONGC expanded its equity by another 2 per cent by offering shares to its employees.
During March 1999, ONGC, Indian Oil Corporation (IOC) - a downstream giant and Gas Authority of India Limited (GAIL) - the only gas marketing company, agreed to have cross holding in each other's stock. This paved the way for long-term strategic alliances both for the domestic and overseas business opportunities in the energy value chain, amongst themselves. Consequent to this the Government sold off 10 per cent of its share holding in ONGC to IOC and 2.5 per cent to GAIL. With this, the Government holding in ONGC came down to 84.11 per cent.
In the year 2002-03, after taking over MRPL from the A V Birla Group, ONGC diversified into the downstream sector. ONGC will soon be entering into the retailing business. ONGC has also entered the global field through its subsidiary, ONGC Videsh Ltd. (OVL). ONGC has made major investments in Vietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from its investment in Vietnam.
A joint venture company, Petronet LNG is in place with ONGC having 12.5% equity interest for import and marketing of LNG in India. Other partners in this venture are IOC, GAIL and BPCL each with 12.5% equity. The remaining 50% equity will be offered to strategic partners, financial institutions and public. The Company is planning to install two LNG terminals (Dahej in Gujarat and Cochin in Kerala) on western coast of India with total capacity of 7.5 MMTPA.
The Exploration Contract Monitoring (EXCOM) Group is the exclusive business face of ONGC for jointly operated oil & gas exploration and production ventures within India. It is the nodal agency of ONGC for single window E&P business communication with companies and the government.
Business area of the company includes:International sale/import of Crude OilExport of Petroleum Products and Petrochemical Products.Oil and Natural Gas Corporation Ltd. (ONGC) is engaged in E&P activities both in Onshore and Offshore. The Corporation is now venturing out to new areas i.e. deepwater exploration and drilling, exploration in frontier basins, marginal field development, optimization of field evelopment plan field recovery and other allied areas of service sector.ONGC has single-handedly scripted India’s hydrocarbon saga by establishing 6.61 billion tonnes of In-place hydrocarbon reserves with more than 300 discoveries of oil and gas; in fact, 6 out of the 7 producing basins have been discovered by ONGC.
• ONGC Videsh Limited (OVL)- The biggest Indian multinational, with 44 Oil & Gas projects (7 of them producing) in 18 countries.
• ONGC Nile Ganga BV (ONG BV)- ONGC Nile Ganga BV is a wholly owned subsidiary of OVL and has equity in producing field in Sudan.
• Mangalore Refinery and Petrochemicals Limited (MRPL) - Mangalore Refinery and Petrochemicals Limited (MRPL), located in a beautiful hilly terrain north of Mangalore city on west coast of India, have a State of Art Grass root Refinery at Mangalore and is a subsidiary of ONGC. The Refinery has got a versatile design with high flexibility to process Crude oils of various API and with high degree of Automation.
• ONGC Narmada (ONL): It is engaged in E & P activities in Nigeria. It holds 13.5% of PI in deep water exploration Block-2 in Nigeria-Sao-Tome & Principe
• ONGC Amazon Alaknanda (OAAL):- Its subsidiary of OVL & holds stake in E & P activities in Colombia through Mansarovar energy Columbia ltd,a 50:50 JV with sinopec of china.
• ONGC Mittal energy : OVL has entered 51:49 JV with Mittal Investment Sarl (MIS)
2013- ONGC receives global recognition as oil major named in Green Rankings
• ONGC is the only Indian energy major in Fortune's Most Admired List 2014 under 'Mining, Crude Oil Production' category.
• ONGC bagged the FICCI sports award for the third time in a span of twelve years which speaks volumes of the management’s commitment towards sports promotion in the country.
2012- ONGC Videsh signs definitive agreements to acquire an interest in the Azeri, Chirag and the Deep Water Portion of the Guneshli Fields in the Azerbaijan sector of the Caspian Sea and an interest in the Baku-Tbilisi-Ceyhan Pipeline.- ONGC inks agreement with Cairn India to use gas from North Tapti fields
2011 - Awarded the ""Leading Oil and Gas Corporate of the Year"" and ""Exploration and Production Company of the Year"" in the Petroleum Federation of India‘s Annual Oil and Gas Industry Awards 2010.- Sri lanka government awarded 3 hydrocarbon blocks to ONGC- ONGC Petro additions Ltd (OPaL) awards Rs 1,980 cr contracts for polyolefin projects- State-run ONGC regained its top most rank after 4 years propelling billionaire Mukesh Ambani-led Reliance Industries (RIL) as the country's most valued company.
• ONGC won Petrofed Oil & Gas Industry Awards 2011 in three categories - 'Exploration & Production: Company of the Year', 'Project Management (above Rs. 2000 crore): Company of the Year' and 'Innovator of the Year: Team (Won by IOGPT)
• ONGC bagged Oil Industry Safety Directorate (OISD) awards for 'Best Overall Safety Performance of Oil and Gas Onshore Assets' and 'Most Consistent Safety Performer Award' (won by Rajahmundry Asset of ONGC) for the year 2011-12. In addition, JV operation at Panna gas field between ONGC, BG and Reliance, operated by BG India won the OISD award for 'Best Production Platform – Pvt/JV Companies
2010 - Oil & Natural Gas Corporation Ltd was granted the 'Maharatna' status. - Ranked 1st among oil and gas exploration and production companies in the world and 18th among leading global energy majors as per Platts 250 Global Energy Company‘list. - Awarded 1st runners up for =Best Presented Accounts and Corporate Governance Disclosure Awards 2009‘ by South Asian Federation of Accountants, an apex body of South Asian Association for Regional Cooperation. - Selected as the ‘Natural Gas STAR Program‘s International Partner of the Year‘ by the United States Environmental Protection Agency. - Awarded the Golden Peacock Award for climate security. - Awarded the gold trophy for SCOPE Meritorious Award for Research & Development, Technology Development & Innovation for 2008-09. - Awarded the 2nd PSU Awards for highest market capitalization by Dalal Street Investment Journal PSU‘ awards. - Awarded the BML Munjal Award for excellence in learning and development in public sector category.
• Ranked at 2nd position in FE500 list 2010 in net worth and overall composite ranking
• ONGC ranks 3rd Oil & Gas Exploration & Production (E&P) Company in the world and 23rd among leading global energy majors as per Platts 250 Global Energy Companies List for the year 2009
• ONGC ranks 24th among the Global publicly-listed Energy companies as per ‘PFC Energy 50” (Jan 2008)
• Finance Asia 100 list ranks ONGC no 1 among Indian Blue Chips
• Occupies 155th rank in “Forbes Global 2000” list 2010 of the world’s biggest companies for 2010 based on sales, profits, assets and market capitalization
• ONGC ranked 402nd position as per Fortune Global 500 - 2009 list based on revenues, profits, assets and shareholder’s equity
• Ranked as the most respected Public Enterprise in India in 2007 “Business World Survey, with 19th position in the league of the most-respected Indian Corporate(s)
• Rated ‘Excellent’ in MOU Performance Rating for 2006-07 by the Department of Public Enterprises, Ministry of Heavy Industries in Public Enterprises, GOI
• Oil Industry Safety Directorate (OISD) has selected Ahmedabad Asset and MRPL for the year 2006-07 (as number one in Group-4 category (Oil & Gas Assets) and Second in Group-1 Refinery category respectively)
• Topped the visibility metrics in Indian Oil and Gas Sector and the only PSU in the top 10 list of Indian Corporate newsmakers
• Golden Peacock Global Award 2007 for Excellence in Corporate Governance 2007”, for the 3rd consecutive time, conferred by World Council for Corporate Governance. • Bagged the coveted winner’s trophy of the maiden “Earth Care Award for excellence in climate change mitigation and adoption” under the category of GHG mitigation in the small/medium and large enterprises.
• Conferred with “Infraline Energy Excellence Award” for its services to the Nation in Oil & Gas Exploration and Production category
• Bestowed with “Amity Award for Excellence” in Cost Management
Future Plan:ONGC’s strategic objective of sourcing 20 million tonnes of equity oil abroad per year is likely to be fulfilled well before 2020.