ONGC signs MoU with IOC

Oil and Natural Gas Corporation (ONGC) signed a memorandum of understanding (MoU) with Indian Oil Corporation (IOCL) on June 14, 2023, to explore downstream opportunities in petrochemicals, through greenfield projects and acquisitions.

 The agreement aims to explore prospects in utilizing downstream business in ONGC and IOCL (including their subsidiaries) and setting up assets, if feasible. Both the Maharatna companies aim to scour and harness possibilities for using feedstock from both the companies and their subsidiaries to manufacture petrochemical products. The companies seek to jointly discover and search for global opportunities to enhance value creation from exports of refining and petrochemical yields as well as explore opportunities for collaboration in oil to chemicals and/or niche products. 

Oil and Natural Gas Corporation (ONGC) is the largest crude oil and natural gas Company in India. Crude oil is the raw material used by downstream companies like IOC, BPCL, and HPCL (a subsidiary of ONGC) to produce petroleum products like Petrol, Diesel, Kerosene, Naphtha, and Cooking Gas-LPG. It is the only public sector Indian company to feature in Fortune’s ‘Most Admired Energy Companies’ list. ONGC has the unique distinction of being a company with in-house service capabilities in all areas of Exploration and Production of oil & gas and related oil-field services.   

Today, the ONGC stock opened at Rs 158, with a high and low of Rs 158.60 and Rs 156.40. The stock closed trading at Rs 157, down by 0.38%. The stock has a 52-week high of Rs 168.95 and a 52-week low of Rs 119.80. The company has a ROCE of 14.7% and an ROE of 14.3% with a market capitalisation of Rs 1,97,510 crore.