ONGC Full Form and Additional Information

ONGC full meaning
ONGC Full Form

ONGC Full Form is Oil and Natural Gas Corporation Ltd. This is a international company which explores and produces oil and gas. ONGC was founded in 1956 and has its headquarters in Uttarakhand, India. This company is a public sector undertaking or PSU of the Indian government. It is governed by the MPNG or Ministry of Petroleum and Natural Gas. The operations of ONGC include conventional production, exploration, and refining of alternate energy resources such as shale gas and methane.

ONGC had become a Public Ltd Company in February 1994, with the Government of India holding 80% of the equity and selling 20% to the public. Today, the domestic operations of ONGC are formed around 11 assets; most of them are Oil & Gas producing properties. The domestic operations also comprise of 2 plants at Uran and Hazira, 7 basins, and services like drilling, logging, well services, and more.

Additional Information

The ONGC is basically a multinational company that deals with gas and oil in India. Its head office can be found in Uttrakhand. It is under the control of the Indian Government. It is the biggest company in India that deals with the exploration of gas and oil. Nearly sixty-nine percent of the crude oil and sixty-two percent of the natural gas in India is produced by it.

The foundation of the ONGC was laid by the Indian Government in the year 1956. The equity stake held by it is sixty-eight percent. The main products of this company include petrochemicals, natural gas, and petroleum. Its revenue during the year 2015 was twenty-five billion dollars. The operating costs and profit during the same year were eight billion dollars and two billion dollars respectively. Its total assets amount to thirty-five billion dollars.

Operations of the ONGC

The operations of the ONGC consist of conventional producing and exploring for gas and oil. It is also engaged in the developing and refining of the alternate sources of energy such as shale gas and methane obtained from coal beds. The domestic operations of this company revolve around its eleven assets, which mainly includes the properties that produce gas and oil, two plants, present at Uran and Hazira, seven basins which consist of exploration properties, and services like logging, drilling, well and geophysical services.

The global arm of this company is OVL or ONGC Vidisha Limited. Its rechristening was done in the year 1989. There are fourteen projects under this company, which are currently operating in around sixteen nations. Its production of gas and oil amounts to eight million metric tons in the year 2010. A hundred percent stake is held by the ONGC in the OVL. The presence of OVL is quite strong in Latin America. Its operations here are extended to Brazil, Cuba, Columbia and Venezuela. Similarly, in the Far-East and CIS, its presence can be seen in Vietnam, Russia, Myanmar and Kazakhstan. In Africa, it is currently in operation in locations of Libya, Sudan, Nigeria and Mozambique. In the Middle East, its ongoing projects are present in Syria and Iraq.

OTPC – ONGC Tripura Power Company Ltd

A joint venture was formed between the Tripura Government, Financial Services and Infrastructure Ltd and ONGC in the year 2008. This joint venture led to the formation of the OTPC or ONGC Tripura Power Company Ltd. A project is being developed by this company in Tripura which will generate more than seven hundred megawatts of thermal power. This power will be used for supplying electricity in those areas of the nation’s north-eastern states which are power deficit. The GE USA has supplied two 9FA machines.

A transmission system that connects Tripura to Palatana is developed by it to evacuate power from the project. The distance covered by the transmission system amounts to six hundred kilometres. A joint venture was formed between the beneficiary states of the North-eastern region, PGCIL or Power Grid Corporation of India and OTPC. This joint venture led to the birth of NETCL or North East Transmission Company Ltd. The NETCL would be responsible for operating as well as developing this transmission system. The Gol has granted the approval of the status of MPP or Mega Power Project to OTPC in the year 2006 for this project.

OPAL – ONGC Petro Additions Ltd

The incorporation of the OPAL or ONGC Petro Additions Ltd was done in the year 2006. It is promoted by the ONGC itself, along with GSPC and GAIL. A mega project related to petrochemicals has been set up by the OPaL at Dahej. The dual unit has the capability of producing eleven hundred tons of ethylene, and four hundred tons of propylene every year. There are many additional units associated with it which include Unit for extracting benzene and Butadiene and Pyrolysis Hydrogenation Unit.

The number of employees in the ONGC was thirty-two thousand, as of the year 2013. Out of thirty-two thousand employees, more than six percent or two thousand were women. More than a hundred of the employees were with disabilities. In the financial years of 2009 and 2010, the attribution rate of the company was 0.42%.

Products, Shareholding, and Listing of ONGC

The main products supplied by the ONGC include natural gas, crude oil, and other value added products. It supplies the same to numerous marketing, gas and oil refining companies in India. Its main products for the markets in India include natural gas and crude oil. Its other products include LPG, C2-C3, Naphtha, and SKO. The Indian Government holds nearly sixty-eight percent shares of the ONGC.

The number of individual shareholders of this company is over four hundred thousand, and the shares held by them amounts to nearly 1.65%. The biggest non-promoter shareholder is LIC, and it holds 1.15% of the company’s shares. The other shareholders include FII or Foreign Institutional Investors, which holds six percent of the shares, UTI and mutual funds that hold one percent of the shares and other corporate bodies of the private sector that hold 1.83% of the shares.