ONGC not to list OVL for now

10 July 2008

Mumbai: Oil and Natural Gas Corp (ONGC) has no plans to list its overseas arm ONGC Videsh Ltd, at least in the near future, as the company does not need outside funds for its operations, R S Sharma, chairman and managing director of ONGC and chairman of OVL, said.

"Today in the prevailing situation, I see no reason why we should get OVL listed. Transparency is not an issue. We have an independent board for OVL, with two government directors and two independent directors. So the decisions of OVL are absolutely transparent," he said.

 OVL, which recorded its highest-ever oil and gas production from its overseas assets, earned a net profit of Rs2,397 crore in 2007-08, he pointed out.

Crude oil production was up 18 per cent at 6.811 million tonnes, while gas output was marginally lower at 1.962 billion cubic meters.

OVL is currently engaged in oil and gas production at six projects in Sudan, Russia, Vietnam, Syria and Colombia. And, as of close of the financial year 2007-08, OVL had proven reserves of 1.166 billion barrels, the second-largest holding of proven oil and gas reserves by any Indian company after ONGC.

"Today when we feel that the parent company is having surplus liquid funds, it makes no sense for getting OVL listed," Sharma said.