Strengths, weaknesses, and threats at ONGC

Vol 5, PW 12 (01 Aug 01) Exploration & Production

You can't accuse ONGC of putting its head in the sand.

The corporation is fully conscious of its "Weaknesses" and not afraid of admitting them to its masters at Shastri Bhawan - in this case new oil secretary Vijayendra Kaul. Shortly after Kaul took over, ONGC lists Political Interference as a major Threat in a presentation on June 29th.

ONGC's "Weaknesses" are: "Lack of exposure to competition and international markets" "Increasing expenditure on revamping and upgrading existing facilities" "Need for organisational structure to be more responsive to change and technology" "Operations concentrated in six areas already in mature phase of exploration" "Low production growth and poor reserves replacement record" With equal candour, ONGC lists the following "Threats": "Increasing competition on the domestic front" "Tough competition overseas" "Continuing political influence" ..

.Is modest enough to list the following "Strengths" "Qualified and experienced manpower" "Detailed knowledge of Indian sedimentary basins" "Low finding and production costs .


And opportunities Developing international E&P business Capitalise on strong cash flow Expansion into frontier and deepwater basins in the country Implementation of improved recovery measures in exisiting fields Prospects of reduced government influence under deregulation