NEW DELHI, July 18 (UPI) -- The Indian government has asked the Oil and Natural Gas Corporation to focus on finding oil and gas instead of selling petrol and diesel.
But the state-run oil and gas major has been allowed to complete already approved refinery projects.
India's Petroleum Ministry and the new management of the ONGC reviewed the company's business initiatives, The Times of India reported Tuesday.
"The message is very clear -- ONGC should no more set up petrol pumps," the ministry said in a statement following the meeting.
ONGC currently has one petrol pump in Mangalore, and had identified 45 locations nationwide as potential filling stations to be opened this year. Its subsidiary, Mangalore Refinery and Petrochemical Ltd. had plans to increase the number of outlets to 1,100 by 2008 as part of its plans to diversify in downstream and liquefied natural gas imports, with a view to becoming an integrated oil and gas company with a turnover of $50 billion within the next few years.
"We have been told that since fuel retailing is a loss-making proposition, ONGC should focus more on its core competence," said the company, adding there had been no edict handed down on the new refineries at Barmer in Rajasthan and Kakinada in Andhra Pradesh, nor on a green field refinery adjacent to the existing MRPL refinery.
The statement said the ONGC might scale down, if not fully abandon, its ambition to become an integrated player.
"The management wants ONGC to focus entirely on exploration and production, both at home and overseas, leaving midstream and downstream activities solely in the hands of other state-owned companies like Indian Oil Corporation and Gas Authority of India (Limited), "a Petroleum Ministry statement said.
