Board of Oil & Natural Gas Corpn gives in-principle approval for restructuring of group companies

At meeting held on 29 June 2018

The Board of Oil & Natural Gas Corpn has accorded its in-principle approval for exploring options for restructuring of ONGC group companies.

Hon'ble Minister of Finance, Government of India, in the budget 2017-18, had announced the proposal for creating public sector 'oil major' which will be able to match the performance of international and domestic private sector oil and gas companies. Keeping in view the internal strategic plan duly aligning with the said proposal of the Government of India, ONGC acquired 51.11% in the equity capital of Hindustan Petroleum Corporation (HPCL) from Government of lndia on 31 January 2018, and thereby HPCL has become another listed subsidiary of ONGC, in addition to Mangalore Refinery and Petrochemicals.

The restructuring proposal shall safeguard the overall interest of the public shareholders of all ONGC group companies and would be famed up after taking into account the following:

(i) The proposal of the Government of India referred above;

(ii) The need to better value creation and synergy of ONGC group companies; and

(iii) MRPL's obligation to meet the minimum public shareholding requirement in terms of regulation 3 8 of SEBI Listing Regulations, 2015.

The implementation of any such restructuring proposal shall be subject to approval of the Government of India, board of directors of the relevant companies and other stakeholders of such companies in te1ms of applicable laws.

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