Cabinet Committee on Economic Affairs (CCEA) gave its approval for investment of Rs.5, 000 crore by Oil and Natural Gas Company Limited (ONGC) in the equity share capital of ONGC Videsh by conversion of existing loan of equivalent amount into equity.
- Oil and Natural Gas Corp (ONGC) had extended a loan of Rs 6,000 crore to its overseas investment arm to meet its acquisitions requirements. Of this, Rs 5,000 crore is being converted into equity.
- With this, the equity base of OVL will rise to Rs 15,000 crore. The entire loan ONGC had given to OVL was at zero interest.
The approved investment will strengthen the capital base of ONGC Videsh, and will also enhance the ability of ONGC to undertake overseas Exploration and Production (E&P) business for improving the energy security of the country.
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.