OIL AND NATURAL GAS CORPORATION LTD. AMBUJ SHUKLA PGDM-IB ITM BUSINESS SCHOOL ONGC
Before Independence 1948 1955 1956 Assam Oil co. in northeastern and Attock Oil co. northwestern. Industrial Policy Statement. Oil and Natural Gas Directorate. Industrial Policy Resolution.
1959 1970’s 1991 1993-94 Commission was converted in Statutory body. Discovered Bombay high. Liberalized economic Policy. Conversion of ONGC into ONGC Ltd.
1999 2002-03 ONGC, IOC and GAIL agreed to have cross holding in each others stock. Taken over MRPL from A.V.Birla Group.
Increased Competition within national boundary.
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
It’s 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.
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.
Hard Industry for competitor to enter
Ever changing laws
Possible mergers with smaller Cos.
Finding alternative fuels before competitor.
Expanding into more areas.
Grow their in the energy market.
Threat of alternative fuels
Perceived gaps, strategic conditions, alternative dimensions Gap narrow Gap larger ETOP shows stability ETOP shows opportunity ETOP threat SAP shows strength SAP shows weakness NATURE OF GAP ALTERNATIVE STRATEGIES Stabilize Expand Retrench Pace change Business definition change Internal changes External change Related change Unrelated change horizontal Vertical integration passive Active