ONGC lines up ~30K cr; focus on local purchases

Oil and Natural Gas Corporation (ONGC) will spend ~30,000 crore on capital expenditure (capex) in the fiscal year 2021-22. It is aiming for 22.56 million tonnes of crude oil and 24.89 billion cubic metres of gas production during the year.

“ONGC estimates to spend ~15,500 crore on major lump sum turnkey projects, ~13,600 crore on major services and ~2,250 crore on major material procurement in the financial year 2021-2022,” a company statement said. To aid the domestic oil and gas industry, ONGC said it has provided a list of required goods and services over the coming five years. A commitment to local procurement was reiterated by ONGC at a business partners’ meet focused on strengthening domestic supply chains. “Over 300 business partners were invited to pitch their suggestions, in order to make the collaborative ecosystems more efficient. ONGC shared details with its partners on initiatives, such as the introduction of a new development order policy, introduction of online vendor invoice management system, encouragement towards start-ups, as well as promoting its efforts to encourage indigenous business partners,” it said.