• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 13 hours What China is Learning from Russia's War in Ukraine and its Consequences
  • 5 days How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 1 day Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65
  • 3 days Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
Russian Oil Revenues Soar Despite Sanctions

Russian Oil Revenues Soar Despite Sanctions

Despite suffering under a massive…

India Has A Plan To Create A New Oil Major

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

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News