The top management of state-run explorer ONGC is preparing a plan to integrate its domestic and foreign oil and gas exploration businesses in order to reap synergy.
It may be noted that the domestic exploration business is taken care of by ONGC, while ONGC Videsh (OVL) handles foreign business.
Once the top management of the firm prepares the plan, the same would be submitted before the companyÂ’s board, Narendra Kumar Verma, ONGC Director (Exploration) informed.
If integrated, OVL and ONGC can leverage on each otherÂ’s strengths besides reducing operational cost. Besides, the integration would deliver benefits such as developing technical skills, imbibing the domain knowledge, international quality benchmarking and global technological innovations on fast track.
Meanwhile, ONGC ruled out rumours that it may spin-off OVL, which is its wholly-owned subsidiary, into a separate company. OVL is nurtured by ONGC over the decades and its success is attributed to the critical resources such as exploration and production skills, manpower, and financial strength continuously made available for its growth.
Verma pointed out that both the companies would be adversely impacted if they are separated and it would not be in the national interest.