Oil and Natural Gas Corporation will become a marginal player if it did not set right its priorities and produce more hydrocarbons, the Oil Ministry warned the state-run firm.
In a stinker of a message at the firm's Strategy Meet at Agra on August 25-26, Petroleum Secretary M S Srinivasan said ONGC should stick to its core business of producing hydrocarbons and not divert resources for diversification plans like power and refinery projects.
According to the minutes of the meeting, Srinivasan said "Globally E&P firms have ventured into integration only after becoming giants in hydrocarbon exploration and production."
ONGC may become a marginal player in gas business in about 2-3 years, while in the case of oil production, the firm may fall to that position in about 5-6 years.
He observed that smaller and more nimble companies are proving formidable and ONGC would have to register exploration successes and strengthen its systems to retain its position in the industry.
Regarding ONGC chairman R S Sharma's claims that the company accreted highest ever reserves last year, Srinivasan said "reserve accretion should translate into production."
Srinivasan also took a dig at ONGC's super profits that came with the spike in global oil prices saying Exxon Mobil saw a 500 per cent growth in profit, against projection of 80 per cent rise, even though it did not add a single barrel of oil production.
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