Oil and Natural Gas Corporation (ONGC) is aiming about $1 billion of profit from a new trading company it plans to set up for buying and selling of crude oil and refined fuels of its group companies. While most of the crude oil and natural gas it pumps out of the ground and from below the seabed is sold on government nomination, ONGC's subsidiaries buy or sell about 70 million tonnes of crude oil annually. They also export some amount of fuel.
The company is looking to amalgamate all trading business under one roof for economies of scale as well as get better prices. The company plans to set up a new trading company which will buy crude oil for subsidiaries Hindustan Petroleum Corporation (HPCL) and Mangalore Refinery and Petrochemicals (MRPL) as well as trade oil and gas produced by its overseas firm ONGC Videsh.
ONGC is India’s largest government-run corporation and produces about 70% of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India.
| Company Name | CMP |
|---|---|
| ONGC | 283.05 |
| Oil India | 465.35 |
| Jindal Drilling&Inds | 535.35 |
| Deep Industries | 473.85 |
| Asian Energy Service | 312.75 |
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