The Hindu : OVL to continue as flagship overseas oil co.

Online edition of India's National Newspaper
Thursday, Nov 13, 2003

Business

Business

OVL to continue as flagship overseas oil co.

By Our Special Correspondent

NEW DELHI NOV. 12. The Government plans to retain ONGC Videsh, the overseas arm of Oil and Natural Gas Corp (ONGC), as the country's flagship company for acquisition of oil and gas fields abroad.

OVL will continue to enjoy fast track project approval and special empowerment for this purpose.

A company release today said there is no plan for ONGC to form another subsidiary or joint venture for overseas exploration and production investments. "There is no change in the status and empowerment of OVL nor is any change intended,'' it says.

The decision to retain OVL in its present form has been taken after a meeting held by the Union Petroleum Ministry with chief executives of OVL and downstream oil companies such as the Indian Oil Corporation, the Gas Authority of India Limited, the Bharat Petroleum Corporation Limited, the Hindustan Petroleum Corporation Limited and the Oil India Limited which are keen to have an equity stake in OVL.

For the time being, it has been decided to continue with OVL in its present form for overseas oil exploration projects.

The release says there is no plan for ONGC to form another subsidiary or joint venture for overseas E & P investments.

Subir Raha, Chairman and Managing Director of ONGC and Chairman of OVL said ONGC-OVL would continue to consider participation of other public sector oil and gas companies in E & P projects in India and overseas, on case-to-case basis.

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