The government has provided a specific empowerment procedure to facilitate overseas exploration and production (E&P) by OVL, the overseas oil and gas field acquisition arm of ONGC.
Petroleum secretary B K Chaturvedi had on Monday called a meeting of chiefs of IOC, Gail, BPCL, HPCL, and Oil India Ltd to find a way for addressing their ambition to expand overseas particularly in oil and gas exploration and production.
Overruling aspirations of IOC and GAIL, the meeting decided not to split OVL and continue it as country's flagship oil and gas project acquisition firm overseas, official sources said.
OVL presently owns participating equity in ten projects in eight countries. "There is no change in the status and empowerment of OVL, nor is any change intended. Further, there is no plan for ONGC to form another subsidiary or joint venture for overseas E & P Investments," a press release said.
Subir Raha, chairman and managing director of ONGC and chairman of OVL said ONGC-OVL will continue to consider participation of other PSU Oil or Gas companies in E & P projects in India and overseas, on case-to-case basis.
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