OIL AND NATURAL GAS CORPORATION LTD.

AMBUJ SHUKLAPGDM-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.

Challenges

Increased Competition within national boundary.

Overseas expansion.

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.

Project ICE.

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.

SWOT Analysis

Strength• State owned• Growing Demographics• Top Technology• Hard Industry for competitor to enter• Strong Infrastructure

Weaknesses

State owned

Ever changing laws

Opportunity

Possible mergers with smaller Cos.Finding alternative fuels before

competitor.Expanding into more areas.Grow their in the energy market.

Threat

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

Thank you