State-owned ONGC is eyeing about USD 1 billion of profit from a new trading company it plans to set up for buying and selling of crude oil and refined fuels of its group companies, a top official said Monday.
While most of the crude oil and natural gas it pumps out of the ground and from below the seabed is sold on government nomination, ONGC’s subsidiaries buy or sell about 70 million tonnes of crude oil annually. They also export some amount of fuel.
ONGC Director (Production) Pankaj Kumar said the company is looking to amalgamate all trading business under one roof for economies of scale as well as get better prices.
