The Hindu : National : ONGC to pursue exploration of oil more aggressively: official

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Saturday, Dec 03, 2005

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ONGC to pursue exploration of oil more aggressively: official

R.K. Radhakrishnan

95 per cent of investment in this sector

Photo: M. Vedhan

A.K. Balyan

CHENNAI: A.K. Balyan, Director (Human Resource), Oil and Natural Gas Corporation, said that the ONGC would explore more aggressively the pursuit of its "first mandate" — to look for oil and gas.

"We have budgeted and planned our activities accordingly. As much as 95 per cent of our investment is in this sector," he said. On the criticism that the ONGC was investing more in its non-core activities, he said that the "very basic fact" was that the ONGC put in "90-95 per cent of its budget in the E&P sector." Only about five per cent was spent on diversification. "I would call it integration projects," he said, and added that if one looked at how the best international companies did this it would be very instructive. As far as the ONGC was concerned, some forward integration was needed.

Citing LNG production, he said that fractionating some of the gases would mean a lot more revenue to the company. "We have no plans to go into areas that are not connected to the oil and gas industry. We will remain very close to our core (competence) but are going to integrate forward in certain areas that give us a lot of strength. LNG for example. We have a refinery. If you bring in LNG there are many options for synergy." He refused to comment on the proposed takeover of the Southern Petrochemicals Industries Corporation.

The ONGC rigs did not face any problems on account of rough seas, he said. "The facilities are certified to a very high level of sea roughness, wind speed and corrosion. They all conform to international standards," he said. The ONGC kept inspecting all its facilities. The earthquake and the tsunami did not have any impact on exploration activities, he added.

Asked if the ONGC would think of a public issue after it was named the "largest wealth creator," he said that it was upto the Government to decide on this issue. He refused comment on whether the ONGC would give an interim dividend despite the fact that there was no provision in company law for it.

On cooperation with Nigeria, he said the ONGC would help develop oil fields and also infrastructure there. "They are not very happy with multinationals. They see Indian companies as more friendly... we can train their people, we can work with them," he said. In return, the immediate benefit would be the supply of oil from that country. Later, Nigeria would identify blocks that the ONGC would develop, produce oil and gas and bring it to India.

On cooperation with China's national oil and gas agency, he said that any developing economy would compete with the other. "Our requirements are very high. China's too... So it is natural that wherever we go shopping for oil and gas, they will be there. Well, yes, we do need to work on that so that we do not unduly compete so that a third party gets the benefit," he said.

Mr. Balyan was speaking on the sidelines of the Asia-Pacific Human Resources Management conference in Chennai. Partha Chatterjee, president, National Institute of Personnel Management and vice-president, Asia-Pacific Federation of Human Resource Management, said that a new committee was in place for the organisation. The next world HR congress would be held in June 2006 in Singapore. The deliberations here would also consider a change in name for the NIPM, he added.

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