History of ONGC
Established on August 14, 1956, by the Indian government, Oil and Natural Gas Corporation (ONGC) stands as India's premier producer of crude oil and natural gas. Its inception aimed to bolster the nation's crude oil production primarily through oil exploration endeavors.
ONGC boasts discoveries in 8 out of India's 9 producing basins, spanning from Gujarat in 1958 to Vindhyan in 2022. Presently, it accounts for approximately 71% of India's crude oil and 84% of natural gas production, making it the most profitable public sector entity in India. Recognizing its significant contribution, the government bestowed upon it the Maharatna status in 2010.
However, amidst the 2022 Russia-Ukraine conflict, ONGC encountered logistical challenges in oil and gas transportation despite its stakes in Russian energy fields, leading to a dip in net profit in the first half of FY 2023, a setback from which it subsequently recovered.
Business Segments
ONGC's core operations revolve around drilling and operating oil wells, reflected in its diverse product lines:
- Crude Oil: Contributing approximately 70% to FY 2021 revenues, its revenue from crude oil nearly doubled from FY 2015-16 to FY 2022-23.
- Natural Gas: Accounting for around 17% of FY 2021 revenue, its revenue from natural gas also witnessed a near doubling from FY 2018-19 to FY 2022-23.
The remaining revenue stems from a variety of value-added products such as LPG, Naphtha, and aviation turbine fuel.
Geographically, ONGC derives 93.5% of its revenue from India, with the rest from international ventures facilitated by its subsidiary, ONGC Videsh Ltd., operating in countries like Myanmar, Colombia, and Russia.
Corporate Structure
ONGC's extensive global operations are supported by subsidiaries and joint ventures, including ONGC Videsh Ltd., Hindustan Petroleum Company Ltd. (HPCL), Mangalore Refinery and Petrochemicals Limited (MRPL), and Petronet MHB Limited (PMHBL).
Corporate Actions
Over the years, ONGC has undertaken strategic corporate actions such as stock splits, bonus share issues, and share buybacks to enhance shareholder value and maintain market competitiveness.
Financial Highlights
Despite volatile profits and cash flows over the past decade, ONGC has consistently doubled its total sales revenue from FY 2020-21 to FY 2022-23 and maintained a respectable dividend payout ratio.
Established on August 14, 1956, by the Indian government, Oil and Natural Gas Corporation (ONGC) stands as India's premier producer of crude oil and natural gas. Its inception aimed to bolster the nation's crude oil production primarily through oil exploration endeavors.
ONGC boasts discoveries in 8 out of India's 9 producing basins, spanning from Gujarat in 1958 to Vindhyan in 2022. Presently, it accounts for approximately 71% of India's crude oil and 84% of natural gas production, making it the most profitable public sector entity in India. Recognizing its significant contribution, the government bestowed upon it the Maharatna status in 2010.
However, amidst the 2022 Russia-Ukraine conflict, ONGC encountered logistical challenges in oil and gas transportation despite its stakes in Russian energy fields, leading to a dip in net profit in the first half of FY 2023, a setback from which it subsequently recovered.
Business Segments
ONGC's core operations revolve around drilling and operating oil wells, reflected in its diverse product lines:
- Crude Oil: Contributing approximately 70% to FY 2021 revenues, its revenue from crude oil nearly doubled from FY 2015-16 to FY 2022-23.
- Natural Gas: Accounting for around 17% of FY 2021 revenue, its revenue from natural gas also witnessed a near doubling from FY 2018-19 to FY 2022-23.
The remaining revenue stems from a variety of value-added products such as LPG, Naphtha, and aviation turbine fuel.
Geographically, ONGC derives 93.5% of its revenue from India, with the rest from international ventures facilitated by its subsidiary, ONGC Videsh Ltd., operating in countries like Myanmar, Colombia, and Russia.
Corporate Structure
ONGC's extensive global operations are supported by subsidiaries and joint ventures, including ONGC Videsh Ltd., Hindustan Petroleum Company Ltd. (HPCL), Mangalore Refinery and Petrochemicals Limited (MRPL), and Petronet MHB Limited (PMHBL).
Corporate Actions
Over the years, ONGC has undertaken strategic corporate actions such as stock splits, bonus share issues, and share buybacks to enhance shareholder value and maintain market competitiveness.
Financial Highlights
Despite volatile profits and cash flows over the past decade, ONGC has consistently doubled its total sales revenue from FY 2020-21 to FY 2022-23 and maintained a respectable dividend payout ratio.
