The board of state-owned Oil and Natural Gas Corp (ONGC) has given in-principle approval for exploring options for a restructuring of the group firms, including the merger of subsidiaries MRPL and HPCL.
“The board of directors of ONGC, at the 308th meeting held on June 29, accorded its in-principle approval for exploring options for the restructuring of ONGC group companies,” the company said in the filing.
The move by the board is largely in line with the Union Budget announcement made in February to create a public sector oil major that can compete and perform well against other global and domestics firms. The company also noted that the announcement had already seen ONGC take over the government’s stake in HPCL earlier this year.
The stock is currently trading at Rs161.20 up by Rs5.35 or 3.43% from its previous closing of Rs155.85 on the BSE. The scrip opened at Rs155 and has touched a high and low of Rs161.45 and Rs155 respectively.
ONGC accounts for ~70% of India’s oil and gas production. Its FY18 domestic oil & gas production stood at 25.4mmt & 24.6bcm, respectively. Through its 100% subsidiary ONGC Videsh Limited (OVL), it has equity investments in E&P blocks in 16 countries.
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