NEW DELHI (Reuters) -India’s state-run Oil and Natural Gas Corp (ONGC) is planning to set up a trading unit for the crude and refined fuels of its group companies, a top executive at ONGC Videsh said at an industry event.
ONGC Videsh is the overseas investment arm of ONGC and annually produces about 10 million tonnes of oil through its assets.
The plan is at a preliminary stage and “an internal group has been formed to discuss and look into the modalities, including legal issues,” said Rajarshi Gupta, managing director at ONGC Videsh.
The trading unit will help ONGC look at sales and purchase of crude oil and refined fuels.
ONGC annually produces about 42 million tonnes of oil, while its refining subsidiaries Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals together import about 45-50 million tonnes.
“We control about 100 million tonnes of oil within the group,” said Gupta.
(Reporting by Nidhi Verma; Editing by Janane Venkatraman)
