NEW DELHI: State-owned Oil and Natural Gas Corporation (ONGC) is planning to establish a trading unit for crude oil and refined fuels for its group companies, said Rajarshi Gupta, Managing Director of ONGC Videsh, the overseas arm of ONGC.
Gupta clarified that the plan is still at a preliminary stage, with an internal group formed to discuss the modalities, including legal and operational issues. "The trading unit will help ONGC streamline the sales and purchase of crude oil and refined fuels," Gupta added.
He further noted that ONGC currently produces 42 million tonnes of crude oil annually, while its refining subsidiaries Hindustan Petroleum Corporation (HPCL) purchases 30 million tonnes, and Mangalore Refinery and Petrochemicals (MRPL) imports around 18 to 20 million tonnes.
“As a group, we handle around 100 million tonnes of oil in terms of buying and selling. Coordinating this through a centralized trading unit will significantly improve efficiency and strategic planning,” Gupta added.
ONGC Videsh, which manages ONGC's overseas oil and gas assets, contributes approximately 10 million tonnes of oil production annually.
When asked about the company’s oil and gas operations in Syria, Gupta noted that ONGC Videsh’s activities, particularly in Block-24 and through its joint venture with Al Furat Petroleum Company (AFPC), have remained suspended since 2012 due to the security situation. “Although sanctions on Syria have been eased, we haven’t been active there for 13 to 14 years. Before considering a return, we need to thoroughly assess the current ground situation, security conditions, and potential operational challenges,” Gupta said.