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s4000oilgas.mtu-online.com Despite stagnant domestic production and challenging geopolitics, Oil and Natural Gas Corp has a plan to produce 130 million tonnes (mt) oil equivalent by 2030. A mounting subsidy burden could make things difficult, though. In an interview with Ajay Modi and Jyoti Mukul, ONGC Chairman and Managing Director Sudhir Vasudeva says he is an eternal optimist. Edited excerpts: How do you plan to take forward the Perspective Plan 2030, especially since the company is facing production challenge in domestic as well as overseas operations? We have now done a very comprehensive exercise. We hired Mckinsey and it acted as a facilitator. A team of ONGCians, those with 15 years experience, who know our business and have at least 15 more years to retire so that they are there when this plan is being implemented, oversaw the whole exercise while being steered by the functional directors. We discussed how we should define growth and what should be our aspirations. One way of seeing growth was from the point of view of market cap, turnover and net worth. However, we did not go for this since our vision is to be a leader in India with dominant global presence through sustainable development. We are contributing 73 per cent of the countrys oil production and 50 per cent of the gas production. If we have to maintain this position, we will have to grow in excess of three per cent,while historically we have grown at two per cent. Global players like Exxon (US) and Shell (The Netherlands) are growing at two-three per cent, while Petrobras (Brazil) is growing at seven per cent. In India, oil and gas demand is projected to grow at three per cent. If we have to meet this demand, we have set a growth rate of four per cent which we believe is achievable. How will you achieve the 3 per cent plus growth in production? To maintain current production level from domestic sources, we have to monetize 300-350 mt of already discovered reserves fast and aggressively. There are five to six such areas where we have yet to find oil but we have indication that we can find 400-450 mt here. However, to get the balance 60 mt by 2030, the contribution of OVL has to be six times of what it is today. In addition, we cannot keep our eyes close to growing importance of alternative fuels. We desire that 30 per cent our topline should come from alternatives or non-E&P business. With all these, doubling our production and trebling our revenues, our market cap should be four times from what it is now. What will be the contribution of ONGC Videsh (OVL) in this growth? Our production has to increase from 62 to 130 mt by 2030. This is not possible only through domestic exploration and production. The contribution of OVL has to be six times what it is today. In addition, we cannot keep our eyes closed to the growing importance of alternative fuels. We desire that 30 per cent our top line should come from alternatives or non-E&P (exploration and production) business. With all these, doubling our production and trebling our revenues, our market cap should be four times from what it is now. OVL has lately seen its production dipping, so how do you think its contribution will grow? We have problems in Sudan, Syria and Libya. In Libya, problem is less since it was only in the exploration phase and, therefore, there is no loss in production. In Sudan, there is loss of production which began in July last year after Sudan was split into North and South. Forty per cent of the production was coming from North while 60 per cent from South. However, North has all
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Tags : Sudhir Vasudeva | ONGC | Perspective Plan 2030 | Exxon (US) | Shell | Petrobras | ONGC Videsh |
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