ONGC

OIL AND NATURAL GAS CORPORATION LTD.

AMBUJ SHUKLA PGDM-IB ITM BUSINESS SCHOOL

Assam Oil co. in northeastern and Attock Oil Industrial Policy co. Statement. northwestern.

Oil and Natural Gas Directorate.

Industrial Policy Resolution.

Before Independence

1948

1955

1956

Commission was converted in Statutory body.

Discovered Bombay high.

Liberalized economic Policy.

Conversion of ONGC into ONGC Ltd.

1959

1970s

1991

1993-94

ONGC, IOC and GAIL agreed to have cross holding in each others stock.

Taken over MRPL from A.V.Birla Group.

1999

2002-03

Challenges
Increased Competition within national boundary.

Overseas expansion.
Lack of availability of real time information. Keep pace with technological advancement.

Rejuvenation of ONGC
Corporate Strategic goal.
Corporate Rejuvenation campaign. Merger & Acquisitions and Strategic alliance.

Corporate Strategic goal

Doubling of in-place reserves to 12 Btoe.

Improving Average Recovery Factor from 26% to

40%.
Sourcing 20 MMToe from overseas.

Corporate Rejuvenation Campaign

Its a type of Restructuring Strategy. Shift from slow moving, rule bound organization to

goal oriented accountable and responsive.

Engaged in intensive and innovative HRD processes. Formation of different departmental committees. Project ICE.

Mergers & Acquisition and Strategic Alliance

ONGC with IPR International Ltd. in Apr.2004 ONGC and Schlumberger in May 2004.

ONGC Videsh and Ghana National Petroleum

Corporation in Oct.2004. ONGC Videsh Ltd. And Gazpron in Dec.2004. ONGC and Baker Hughes in Jan.2005. ONGC with Shell Exploration Co. in Jan.2005

 Acquired 71.6% majority shareholding in MRPL.

Acquired 23% equity interest in Petronet MHB Ltd.

Acquired 12.5% equity interest in Petronet LNG Ltd.

SWOT Analysis Strength

State owned

Growing Demographics
Top Technology

Hard Industry for competitor to enter

Strong Infrastructure

Weaknesses
State owned Ever changing laws

Opportunity
Possible mergers with smaller Cos. Finding alternative fuels before competitor. Expanding into more areas. Grow their in the energy market.

Threat

Threat of alternative fuels

Perceived gaps, strategic conditions, alternative dimensions NATURE OF GAP Gap narrow ETOP shows stability SAP shows strength ALTERNATIVE STRATEGIES Stabilize Expand Retrench ETOP shows opportunity

Gap larger ETOP threat SAP shows weakness

Pace change
Internal changes Related change horizontal passive

Business definition change

External change Unrelated change Vertical integration Active

Thank you