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ONGC, IOC pool resources for joint ventures

The state-owned Oil and Natural Gas Commission and Indian Oil Corporation have decided to form a ''strategic alliance" to set up a national oil entity for executing joint venture projects at home and abroad.

Giving details on the coming together of the two oil majors in the country for the first time, ONGC Chairman B C Bora and IOC Chairman M A Pathan made it clear that there was no move to merge both the profit making pubic sector undertakings.

What the two oil giants intended to do was to collaborate with each other by pooling their resources, manpower, expertise and technology in developing the hydrocarbon sector in the country and taking up joint ventures to reduce cost of construction and operation, they added.

Global oil business now favoured big organisations with financial strength and capability to withstand competition and absorb price volatility. Oil majors in the world had been opting for alliances, mergers and acquisitions while the business was being deregulated in the developing countries including India. The petroleum industry would have smaller number of players, so the strategic alliances among the survivors. The Indian oil companies could not ignore this scenario, Bora and Pathan added.

UNI

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