(DC)
India’s largest explorer Oil and Natural Gas Corp is seeking to diversify its portfolio to shield its core business from volatile oil prices, said Arunangshu Sarkar, director for strategy at the state-run giant. The company’s multi-pronged approach involves entering the refining and petrochemical sectors, trading liquefied natural gas and growing its renewable capacity.
According to the International Energy Agency, the world is entering an era of cheaper energy prices, with growing electricity use leading to a surplus of oil and gas. ONGC is among the several oil majors looking to diversify their business strategies as the global economy moves away from fossil fuels. “Globally, we are heading to a glut in oil supplies which means prices will reduce,” Sarkar said in an interview. “It will be difficult for a company like ONGC to survive in a low oil-price regime and the new businesses provide a hedge for such a scenario.”
