Ppt on ongc & imperial energy & its acquition

PPT On

ONGC and Imperial Energy

Presented By-

Dhanna

Kumud

Shreeya

Introduction

The Oil and Natural Gas Corporation Limited (ONGC) was the

largest oil exploration and production (E&P) company in India.

The company enjoyed a dominant position in the country's hydrocarbon sector with 84% market share of crude oil & gas production.

Around 57% petroleum exploration licenses in India for over 5,88,000 sq. km belonged to ONGC.

ONGC's major products included petroleum, crude natural gas, liquefied petroleum gas (LPG), kerosene and petrochemical feedstock.

Intro. Cont.

• The company was the first to achieve Rs 100 bn net profits in the Indian corporate history.

• For the fiscal year ended 2002-03, the company reported gross revenues of Rs 353.872 bn and net profit of Rs 105.293 bn.

• With market capitalization of US$ 15 bn, ONGC was ranked 260 in Business Week's Global 1000 list of the world's top companies by market value, for 2003-04.

• Since the mid 1990s, ONGC had faced the problem of declining crude oil and gas production.

Continues…..Company made efforts to consolidate its position in the business by acquiring foreign oil equity through its wholly owned subsidiary, ONGC Videsh Limited (OVL).

OVL was formed to help ONGC secure a strong foothold in the international oil market.

With the acquisition of Mangalore Refinery and Petrochemicals Limited (MRPL), ONGC became the first integrated oil company in India.

ONGC Also plan to go into downstream activities such as LNG

IMPERIAL ENERGY

• January 2009

• Acquisition deal

• It is Canada's second-biggest integrated oil company

• It

• ONGC-Imperial Energy:$2.8billion

Continues…….

• ONGC paid 880 per share to the shareholders of Imperial energy

• ONGC wanted to tap the Siberian market

• Founded - London, Ontario, Canada (1880)

Imperial Oil CEO Bruce March

IMPERIAL ENERGY

•Head office of Imperial Energy is located

Alberta, Canada

• Company is run by skilled management team with

working experience in more than 18 countries.

• Executives and specialists of the company ensure successful implementation of advanced technologies, project and corporate management.

IMPERIAL ENERGY

• Imperial Energy is a modern company focusing on efficient oil field development and long-term oil production growth.

• Scope of activities and core assets of the company are clustered in the North and West part of Tomsk region

ONGC to acquire Imperial Energy

• Oil & Natural Gas Corp of India has agreed to buy UK- listed Imperial Energy for $2.6bn.

• It was acquired in January 2009.

• It is most expensive acquisition to tap the UK based company.

Motives Of the Merger

They want to increase their market share, spread their costs and risks, become more international and also for the need to transform their corporate identity.

India's explorers have been outbid by Chinese rivals as the two most populous nations compete for energy assets globally.

The South Asian nation is looking to invest in oil projects in Russia, Kazakhstan, Iran and Africa as the government expects economic growth to accelerate to as much as 10 percent by 2012.

Continues……..

• It is first acquisition of a foreign exploration & production company with significant assets.

• ONGC has 6.8 billion barrels of oil equivalent in reserves.

After acquisition

• The price dipped sharply.

• Their oil output was estimated at 80,000 bpd at the time of purchase but now reduced to 15,000 bpd

SWOT Analysis

Strength

• Growing Demographics

• Hard Industry for competitor to enter

• Strong Infrastructure

Weaknesses

• Ever changing laws

Opportunities

Alternative fuels before competitor.

Expanding into more areas.

Threat

• Threat of alternative fuels

THANKYOU