ONGC plans to set up trading company, eyes $1 billion profit

NEW DELHI: ONGC is eyeing about $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 govt nomination, ONGC’s subsidiaries buy or sell about 70 million tonnes of crude oil annually. They also export some amount of fuel. The trading company will buy crude oil for subsidiaries HPCL and MRPL and ONGC Videsh. A global oil company will be given equity in new company to get trading expertise