Oil and Natural Gas Corp, nation's largest oil and gas producer, will become a marginal player if it did not set right its priorities and produce more hydrocarbons, Oil Ministry has warned the state-run firm.
In a stinker of a message at the firm's Strategy Meet at Agra on August 25-26, Petroleum Secretary MS Srinivasan said ONGC should stick to its core business of producing hydrocarbons and not divert resources for diversification plans like power and refinery projects.
According to the minutes of the meeting, Srinivasan said: "Globally E&P firms have ventured into integration only after becoming giants in hydrocarbon exploration and production."
ONGC may become a marginal player in gas business in about 2-3 years, while in case of oil, the firm may fall to that position in about 5-6 years.
On ONGC chairman RS Sharma's claims that the company accreted highest ever reserves last year, he said 'reserve accretion should translate into production.'
"ONGC would become a marginal player in case the organisation is not able to set right its priorities and align its actions along the mandate," Srinivasan said.
He observed that smaller and nimble companies are proving formidable and ONGC would have to register exploration successes and strengthen its systems to retain its position in the industry. Srinivasan took a dig at ONGC's super profits that came with spike in global oil prices saying Exxon Mobil saw a 500 per cent growth in profit, against projection of 80 per cent rise, even though it did not add a single barrel of oil production.
In a stinker of a message at the firm's Strategy Meet at Agra on August 25-26, Petroleum Secretary MS Srinivasan said ONGC should stick to its core business of producing hydrocarbons and not divert resources for diversification plans like power and refinery projects.
According to the minutes of the meeting, Srinivasan said: "Globally E&P firms have ventured into integration only after becoming giants in hydrocarbon exploration and production."
ONGC may become a marginal player in gas business in about 2-3 years, while in case of oil, the firm may fall to that position in about 5-6 years.
On ONGC chairman RS Sharma's claims that the company accreted highest ever reserves last year, he said 'reserve accretion should translate into production.'
"ONGC would become a marginal player in case the organisation is not able to set right its priorities and align its actions along the mandate," Srinivasan said.
He observed that smaller and nimble companies are proving formidable and ONGC would have to register exploration successes and strengthen its systems to retain its position in the industry. Srinivasan took a dig at ONGC's super profits that came with spike in global oil prices saying Exxon Mobil saw a 500 per cent growth in profit, against projection of 80 per cent rise, even though it did not add a single barrel of oil production.
Via|The India Economic Times
INDIA|
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