2006 Indian Stamps :Oil And Natural Gas Corporation Limited

In August, 1956 Oil and Natural Gas Commission was formed, raised from a mere Directorate status to Commission,it had enhanced powers. In 1959 these powers were further enhanced by converting commission into a statutory body by an act of Indian Parliament. Major functions of ONGC according to this provision were to plan, promote, organize and implement programs for development of Petroleum Resources and the production and sale of petroleum and its products. Since its foundation stone was laid, ONGC is transforming India’s view towards Oil and Natural Gas by emulating country’s limited upstream capabilities into a large viable playing field. ONGC since 1959 has made its presence noted in most parts of India and In oversea territories. ONGC found new resources in Assam and also established new oil province in Cambay basin (Gujarat). In 1970 with the discovery of Bombay High (now know as Mumbai High), ONGC went offshore. With this discovery and subsequent discovery of huge oil fields in Western offshore, a total of 5 billion tones of hydrocarbon present in the country was discovered. The most important contribution of ONGC, however, is its self-reliance and development of core competence in E&P activities at a globally competitive level. Post 1990, The liberalized economic policy was brought into effect, subsequently partial disinvestments of government equity in Public Sector Undertakings were sought. As a result, ONGC was re-organized as a limited company and after conversion of business of the erstwhile Oil & Natural Gas Commission to that of Oil and Natural Gas Corporation Ltd in 1993, 2 percent of shares through competitive bidding were disinvested. Further expansion of equity was done by 2 percent share offering to ONGC employees. Another big leap was taken in March 1999, when ONGC, IOC (India Oil Corporation) Gas Authority of India Ltd.(GAIL) agreed to have cross holding in each other’s stock. Consequent to this the Government sold off 10 per cent of its share holding in ONGC to IOC and 2.5 per cent to GAIL. With this, the Government holding in ONGC came down to 84.11 per cent. In 2002-03 ONGC took over MRPL from Birla Group and announced its entrance into retailing business. ONGC also went to global fields through its subsidiary, ONGC Videsh Ltd. ONGC Videsh Ltd. (OVL). ONGC has made major investments in Vietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from its investment in Vietnam.