ONGC Videsh sets up global treasury centre at GIFT City
NEW DELHI : ONGC Videsh Ltd has incorporated a wholly owned subsidiary called OVL Overseas IFSC Ltd in Gujarat’s GIFT City that will function as a treasury hub catering to OVL and its 25 subsidiaries, including step-down subsidiaries, across 15 countries. “... OOIL expects to efficiently consolidate funds available with the group in various countries and raise additional funds needed to achieve the ambitious target of producing 40 million metric tonnes oil and oil equivalent (MMToe) by 2040 from overseas assets," ONGC Videsh said in a statement on Wednesday.
OOIL will act as ONGC Group’s gateway to the world for its overseas ventures and investments, the company said. ONGC Videsh, recognised as one of 14 Navratana enterprises of the government, is the overseas arm of ONGC, the flagship national oil company. OVL plays a key role in securing the energy interests of India, which imports a significant part of its hydrocarbon requirements.
The primary business of ONGC Videsh is to prospect for oil and gas acreages outside India, including exploration, development and production of oil and gas. It owns participating interests in 32 oil and gas assets in 15 countries. In terms of reserves and production, ONGC Videsh is India’s second-largest petroleum company, next only to its parent ONGC.
The International Financial Services Centre, developed as a multi-services special economic zone at Gift City, allows domestic and multinational companies the option to shift their overseas investments onshore. The government has provided a competitive tax structure for IFSC in a bid to develop it as a hub for international financial services activities. On Tuesday, Power Finance Corp.
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