ONGC's Growth Strategy

This meant that confining to one sector, whether upstream or downstream or petrochemicals would make any organization vulnerable to the ups and downs of a particular cycle. The integration of these activities would ensure profitable operation across a number of cycles and financial stability. ONGC acquired 297 mn shares of MRPL from the AVB group for Rs 2 per share in March 2003. The company pumped in Rs 6 bn by issuing fresh equity of MRPL, increasing its equity stake to 51 per cent. Later on, ONGC purchased 356 mn shares from institutional investors and increased its stake in MRPL to 71.5 per cent. This deal was worth about Rs 3.9 bn. The total amount invested by ONGC in MRPL was about Rs 10.494 bn...

For the fiscal year 2004-05, ONGC planned to spend approximately Rs 100 bn on capital expenditure relating to exploration and development of domestic oil and gas properties. As part of production enhancement, redevelopment of Bombay High oil wells was given top priority. This involved two projects called Bombay High North Redevelopment and Bombay High South Redevelopment, which were expected to cost around Rs 82 bn. The program aimed to achieve an additional 76 mn tonnes of producible reserves of oil and gas. ONGC expanded its global operations through its subsidiary OVL, by making sizeable capital investments in Vietnam, Sakhalin (Russia) and Sudan...