• 4 minutes U.S. Shale Output may Start Dropping Next Year
  • 8 minutes Read: OPEC WILL KILL US SHALE
  • 12 minutes Tidal Power Closer to Commercialisation
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 3 hours Why U.S. Growers Are Betting The Farm On Soybeans Amid China Trade War
  • 8 hours Trump to Make Allies Pay More to Host US Bases
  • 33 mins US-backed coup in Venezuela not so smooth
  • 10 hours BATTLE ROYAL: Law of "Supply and Demand". vs. OPEC/Saudi Oil Cartel
  • 20 hours Solar to Become World's Largest Power Source by 2050
  • 1 day Sounds Familiar: Netanyahu Tells Arab Citizens They’re Not Real Israelis
  • 11 hours Biomass, Ethanol No Longer Green
  • 1 day THE DEATH OF FOSSIL FUEL MARKETS
  • 1 day this is why Climate Friendly Agendas Tread Water
  • 1 day Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 1 day Exxon Aims For $15-a-Barrel Costs In Giant Permian Operation
  • 9 hours Trump Tariffs On China Working
Cuba Faces Oil Crisis As Venezuela Crumbles

Cuba Faces Oil Crisis As Venezuela Crumbles

While sanctions continue to weigh…

China’s Crude Oil Throughput Hits Record High

China’s Crude Oil Throughput Hits Record High

Chinese refineries processed a record…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

India Has A Plan To Create A New Oil Major

India Oil

India’s state-run Oil and Natural Gas Corporation (ONGC) will take majority control of Hindustan Petroleum Corp (HPCL) as part of the government’s plan to merge some state-held companies to create an oil major capable of competing with Big Oil, India’s Economic Times reported on Monday, quoting senior government officials.

The government will soon issue a note on the ONGC- HPCL deal in which the cabinet will transfer its 51.11 percent interest in HPCL to ONGC, one of the officials told Economic Times.

On February 1, India’s Minister for Finance and Corporate Affairs, Shri Arun Jaitley, said in the presentation of the 2017/18 budget in Parliament that the country was planning to create an integrated public-sector oil major to match the performance of huge international private sector oil and gas companies. The government sees possibilities of strengthening the Central Public Sector Enterprises (CPSEs) via consolidation, mergers and acquisitions, the minister noted.

Under the plan for the ONGC- HPCL integration, the exploration business of ONGC would be integrated with HPCL’s refining and distribution capabilities, Economic Times reports. HPCL owns India’s biggest lubricants unit and the second-largest pipeline network of more than 3,000 kilometers (1,864 miles). The earnings of the vertically integrated ONGC- HPCL would be more stable, and investors would benefit from the reduced volatility.

The world over, the largest and most successful oil companies like Shell, BP and Exxon, are vertically integrated,” one official told Economic Times.

Related: Have The Majors Given Up On Canada’s Oil Sands?

India has 13 state-controlled oil companies, the biggest being ONGC. Most of the other firms are relatively small, but if the government were to decide to integrate the top eight companies into one big firm, it would create a conglomerate with a market capitalization of just above US$100 billion, which would be close to BP’s capitalization of around US$116 billion, according to the Financial Times.

Last week, ONGC approved investments of US$1.1 billion (73.27 billion rupees) to develop five oil and gas projects that would raise India’s oil and gas production as the country plans to reduce oil imports.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News