The Cabinet Committee on Economic Affairs (CCEA) on 22 December 2015 gave its approval for investment of 5000 crore rupees by Oil and Natural Gas Company Limited (ONGC) into the equity share capital of ONGC Videsh Limited (OVL) by conversion of existing loan of equivalent amount into equity.
The approved investment will strengthen the capital base of ONGC Videsh. It will enhance the ability of ONGC to undertake overseas Exploration and Production (E&P) business, thereby improving the energy security of the country.
With this investment, the equity base of OVL will rise to 15000 crore rupees. All the loan ONGC had given to OVL was at zero interest.
About Oil and Natural Gas Corporation Limited
• Oil and Natural Gas Corporation Limited (ONGC) is a multinational oil and gas company.
• It was founded on 14 August 1956 by Government of India (GoI).
• It is a Public Sector Undertaking (PSU) of the GoI, under the administrative control of the Ministry of Petroleum and Natural Gas.
• It is India's largest oil and gas exploration and production company.
• It produces around 69 percent of India's crude oil and around 62 percent of its natural gas.
About ONGC Videsh Limited
• ONGC Videsh is a Miniratna Schedule A Central Public Sector Enterprise (CPSE) of the Government of India.
• It is the wholly owned subsidiary and overseas arm of Oil and Natural Gas Corporation Limited.
• It was incorporated as Hydrocarbons India Pvt. Ltd. on 5 March 1965 to carry out exploration and development of the Rostam and Raksh oil fields in Iran and undertaking a service contract in Iraq.
• The company was rechristened as ONGC Videsh Limited on 15 June 1989 with the prime objective of marketing the expertise of ONGC abroad.
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What: Approved by CCEA
When: 22 December 2015