A Comprehensive Overview of Oil and Natural Gas Corporation (ONGC) and Its Subsidiaries
India's energy landscape is dominated by the Oil and Natural Gas Corporation Limited (ONGC), a Maharatna company that contributes significantly to the nation's domestic crude oil and natural gas production. This article provides a detailed overview of ONGC, its subsidiaries, and their roles in the wider petroleum industry, focusing on their exploration, production, and refinery capabilities.
ONGC: A Pioneer in Domestic Crude Oil and Natural Gas Production
The primary function of ONGC is the exploration and production of crude oil and natural gas in India. With a market share of around 71%, it is the largest player in the domestic oil and gas sector, contributing substantially to the nation's energy requirements.
Crude oil extracted by ONGC serves as the raw material for downstream companies like IOC, BPCL, HPCL, and MRPL, which are all subsidiaries or associated with ONGC. These companies produce various petroleum products such as petrol, diesel, kerosene, naphtha, and cooking gas (LPG).
ONGC’s In-House Service Capabilities
ONGC has a unique distinction of being a company with in-house service capabilities across all aspects of oil and gas exploration and production. This includes core competencies in drilling, well construction, reservoir engineering, field development, and more. The company's Efficiency and effectiveness are further bolstered by its Best Employer award recognition and a dedicated team of around 27,000 professionals.
ONGC Videsh: ONGC’s Overseas Arm
ONGC Videsh Limited, a Miniratna Schedule "A" Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum and Natural Gas, acts as the overseas arm of ONGC. The company is wholly owned by ONGC and focuses on oil and gas exploration, development, and production outside India. ONGC Videsh operates in 15 countries and accounts for 30.3% and 23.7% of India's domestic oil production, respectively, making it the second-largest petroleum company in India after its parent ONGC.
Mangalore Refinery and Petrochemicals Limited (MRPL)
Mangalore Refinery and Petrochemicals Limited (MRPL) is another significant subsidiary of ONGC. As a schedule 'A' Miniratna CPSE, MRPL has a production capacity of 15.0 million metric tons per annum (MMTPA) for refining. The facility is designed to process various crudes and produce a variety of quality petroleum products. Additionally, MRPL owns and operates ONGC Mangalore Petrochemicals Limited (OMPL), a petrochemical unit capable of producing para-xylene and benzene.
Hindustan Petromineral Corporation Limited (HPCL)
Hindustan Petromineral Corporation Limited (HPCL) is a Maharatna CPSE with a substantial network for the transportation and marketing of petroleum products. HPCL operates 3370 kilometers of pipeline for the transportation of petroleum products and has a vast marketing network consisting of 14 zonal offices and 133 regional offices. The company’s supply and distribution infrastructure includes terminals, pipeline networks, aviation service stations, LPG bottling plants, inland relay depots, and retail outlets.
HPCL's consistent superior performance is a result of its highly motivated workforce of over 9,500 employees, who are involved in various refining and marketing activities across India.
These subsidiaries not only support ONGC's core business but also contribute significantly to the broader Indian petroleum industry, providing a robust pipeline of petroleum products and petrochemicals.
For investors, analysts, and industry experts, ONGC and its subsidiaries are critical components to understand when analyzing India's energy sector and its future growth potential.