InvestorQ : Why is ONGC being asked by the government to hive off its assets?
Juvina Maggie made post

Why is ONGC being asked by the government to hive off its assets?

Answer
image
Deepa Salunkhe answered.
2 weeks ago
Follow

You are right that the Ministry of Petroleum has asked ONGC to generate resources by selling stakes in active oil fields like the Ratna R-Series to the private sector players. The ministry also wants ONGC to get foreign partners in the KG basin gas fields. In addition, ONGC will also monetise existing infrastructure by hiving off drilling and other services.

In the past 6 years, the cash chest of ONGC has been depleted substantially for reasons like buying out the government stake in HPCL, GSPL etc. Now the government wants ONGC to raise oil & gas output and also be financially independent. In the past, ONGC had opposed such moves but the government appears to be keen on pushing this idea through this time.

2 Views