State-owned oil and Gas Company, Oil & Natural Gas Corporation (ONGC) is planning to invest Rs 86,862 crore in 44 mega projects in the current Plan period. The 44 mega projects comprise of 16 on-land projects and 28 offshore projects. Maximum projects are lump-sum turnkey contracts (LSTK).
However, the LSTK is not the most efficient way of awarding contracts and therefore company is considering other options to award such contracts mainly ‘open book’ a cheaper and more efficient route of executing a contract. In an open book contract, the company and contractor agree on the costs that are remunerable and the margin that can be added in the contract.
ONGC is a premier oil and gas company in India, accounting for 71% of the country’s crude oil production and 54% of its natural gas production in 2011-12. It is also a significant producer of value added products such as liquefied petroleum gas (LPG), superior kerosene oil (SKO), and naphtha. GoI is the majority shareholder in ONGC, with a 69% equity stake as of now.
| Company Name | CMP |
|---|---|
| ONGC | 279.25 |
| Oil India | 454.40 |
| Jindal Drilling&Inds | 535.85 |
| Deep Industries | 457.70 |
| Asian Energy Service | 297.85 |
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