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Introduction
Oil and Natural Gas Corporation Ltd. is the full name of ONGC. ONGC is a global Indian state- owned business headquartered in Vasant Kunj ,New Delhi . ONGC is one of India’s leading oil and gas companies. It was formed by the Govt. of India on August 14, 1956, administered by the Oil and Natural Gas Ministry. It is engaged in hydrocarbon exploration and development. It generates over seventy per cent of the Nation’s total crude oil and roughly sixty per cent of its total natural gas. Shashi Shankar will become Chief Executive Officer and Managing Director of ONGC in March 2020.
History of Oil and Natural Gas Corporation Ltd
The only oil firms extracting oil in independent India pre-independence period were the Assam Oil Company in the north-east and the Attock Oil And gas company in the north-west. Most Indian sedimentary basins were deemed unsuitable for oil and gas extraction.
The Government realised the necessity of oil and gas for rapid economic development and its significant role in defence after independence. As a result, when the Economic Policy Statement of 1948 was drafted, the growth of the country’s hydrocarbon industry was deemed critical.
Until 1955, private oil corporations were mostly responsible for developing India’s hydrocarbon reserves. The Assam Oil Company (founded in 1889) and the Oil India Ltd. produced oil at Digboi, Assam (discovered in 1889). (a half-half partnership between the Indian Government and the Burmah Oil And gas company) was constructing two variables in Assam, Naharkatiya, and Moran. The Indo-Stanvac Petroleum project (a joint venture between the Indian Government and the Standards Vacuum Oil Company of the United States) conducted exploration operations in West Bengal. Other areas of India’s sedimentary tracts, as well as the adjacent offshore, remained mostly undiscovered.
As a portion of Government Sector Growth, the Government was required in 1955 to exploit oil and natural gas resources in various parts of the country. In 1955, the Ministry of Natural Resources and Scientific Research established an Oil and Natural Gas Directorate with this goal in mind. Geoscientists from India’s Geological Survey founded the department.
Mr K D Malviya, the then Minister of Natural Resources, led a mission to many nations to study the oil sector and aid the training of Indian professionals to explore possible oil and gas reserves. Foreign experts from the United States, West Germany, Romania, and the former Soviet Union visited India and assisted the administration. Ultimately, the accompanying Soviet specialists worked out a comprehensive plan for the 2ndFive Year Plan’s geological and geophysical investigations and drilling operations (1956-57 to 1960-61).
The Indian Govt. passed the Industrial Policy Resolution in April 1956, which classified the mineral oil business as a Schedule “A” industry, with the state’s exclusive and exclusive responsibility for its future growth.
Histories
Soon after the Oil and Natural Gas Directorate was established, it became clear that the Directorate’s limited financial and administrative powers would make it impossible to perform effectively. As a result, in August 1956, the Directorate was elevated to the rank of a commission with expanded powers, while it remained under the control of the President.
Further Proceedings
After acquiring Proceeds from the A V Birla Group in 2002-03, ONGC expanded into the downstream industry. ONGC Videsh Ltd, a subsidiary of ONGC, has also entered the worldwide market (OVL). ONGC has made significant investments in Vietnam, Sakhalin, Columbia, Venezuela, Sudan, and other countries, earning its first hydrocarbon revenue from Vietnam.
Maharatna ONGC is India’s leading crude oil and natural gas company, accounting for over 75% of domestic output.
ONGC’s pursuit for power involves more than just breaking new ground in deep-water drilling in the Krishna Godavari Basin or exploring new energy frontiers. Despite the global drop in petroleum prices, we have made important investment decisions meticulously and decisively, changing the oil drilling trend.
With our goal for power generation, we’re now pushing deeper offshore plays. This path has earned us a spot amongst Fortune’s “World’s Most Admired Companies.”
Roles and Responsibilities
The Oil and Natural Gas Corporation was formed to fulfil the stated objectives in the corporation’s Memorandum and Articles of Association.
These are key goals of ONGCs
- To procure the entire or any part of the Oil & Natural Gas Commission’s venture, company, assets/liabilities, privileges, authority, goodwill, advantages, operations, and associated establishments of whatever nature, and to enter into and carry into effect such agreements, contracts, and provisions as may become requisite.
- To prepare, encourage, organise, and carry out programs for the development of petroleum resources, the production and sale of petroleum and petroleum products, and all matters related to that.
- To Conduct exploration, development, and optimization of hydrocarbon production to maximise the country’s economic contribution.
- Exploring oil reserves by conducting geological, geophysical, or other types of surveys; drilling and other prospecting operations;
- To analyse oil reserves by geological, geophysical, or other means; to prospect for oil and drill.
Conclusion
ONGC provides major Indian oil and gas refining and distribution corporations with crude oil, natural gas, and value-added products. Its main products are crude oil and natural gas, destined for the Indian market.
ONGC has frequently been found not obtaining its rightful payments from commercial actors, particularly for the usage of oil fields, oil rigs, and concessions, while being owned by the Indian Government.
However, due to extensive corruption in both the firm and the Indian Government, such reports are routinely suppressed, even when made by authorised government organisations. Reports appeared in 2012 claiming that in May 2009, ONGC chartered an oil rig owned by RIL without soliciting bids from other businesses.
