State-owned Oil and Natural Gas Corporation (ONGC) is preparing to set up a dedicated trading unit for crude oil and refined fuels to manage supply and sales for its group companies. The plan was revealed by Rajarshi Gupta, Managing Director of ONGC Videsh, the overseas subsidiary of ONGC, who emphasized that the proposal is still at an early stage of discussion.
Gupta explained that an internal committee has been formed to examine various modalities, including legal and operational frameworks. “The trading unit will help ONGC streamline the purchase and sale of crude oil and refined fuels across the group, ensuring greater coordination and efficiency,” he said.
ONGC trading unit to centralize crude and fuel operations
Currently, ONGC produces about 42 million tonnes of crude oil annually. Its refining subsidiary Hindustan Petroleum Corporation Limited (HPCL) purchases nearly 30 million tonnes, while Mangalore Refinery and Petrochemicals Limited (MRPL) imports 18–20 million tonnes of crude oil. By centralizing these operations under a trading unit, ONGC aims to handle close to 100 million tonnes of crude and refined fuels more strategically.
Efficiency and strategic planning to improve with new structure
Gupta highlighted that a centralized trading unit will strengthen ONGC’s ability to negotiate deals, manage imports and exports, and optimize logistics. “As a group, we handle around 100 million tonnes of oil in terms of buying and selling. Coordinating this through a centralized trading unit will significantly improve efficiency and strategic planning,” Gupta stated.
Contribution from ONGC Videsh and overseas operations
ONGC Videsh, which manages the company’s overseas oil and gas assets, contributes nearly 10 million tonnes of annual oil production. This output forms a vital component of ONGC’s overall energy portfolio, and integrating it into the new trading framework is expected to maximize group synergies and reduce inefficiencies in global supply management.
ONGC’s inactive projects in Syria remain on hold
When asked about ONGC Videsh’s international operations, Gupta pointed out that the company’s projects in Syria, including Block-24 and its joint venture with Al Furat Petroleum Company (AFPC), have been inactive since 2012 due to security concerns. Although some sanctions on Syria have recently been eased, ONGC has not resumed operations there for over a decade. “Before considering any return, we must carefully assess the current ground situation, security conditions, and operational challenges,” Gupta explained.
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