New Delhi: In a significant move to strengthen its international investment capabilities, the Board of Oil and Natural Gas Corporation Ltd (ONGC) has approved a corporate guarantee of up to USD 412 million to support fund-raising activities by its step-down subsidiary OVL Overseas IFSC Limited (OOIL).
The approval was granted during a board meeting held on June 20, ONGC disclosed in a regulatory filing to the stock exchanges. The newly approved amount includes an earlier sanctioned guarantee of USD 257.5 million from the board’s January 31, 2025, meeting, thereby bringing the total aggregate guarantee to USD 412 million.
Supporting Global Exploration and Investment Efforts
According to ONGC, the funds raised by OOIL will be used for refinancing existing loans or raising fresh capital. These proceeds will be directed toward ONGC Videsh Limited (OVL), its wholly owned international exploration and production arm, as well as ONGC Videsh Rovuma Limited (OVRL) or any other fully owned OVL subsidiary, in compliance with overseas direct investment (ODI) norms and guidelines established by the Reserve Bank of India (RBI) and other regulatory bodies.
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ONGC’s Global Strategy
ONGC Videsh spearheads ONGC’s overseas expansion and currently holds a portfolio of projects spanning multiple continents, including Africa, Latin America, Central Asia, and Southeast Asia. The fund-raising through OOIL aligns with ONGC’s broader vision of bolstering India’s energy security through strategic global investments in oil and gas assets.
OOIL and OVRL are wholly owned subsidiaries of OVL and function as financial and operational enablers in its global energy operations.
About ONGC
ONGC is India’s largest government-owned oil and gas exploration and production company. Established on August 14, 1956, ONGC is a Maharatna Public Sector Undertaking (PSU) under the Ministry of Petroleum and Natural Gas. Headquartered in New Delhi, ONGC is pivotal to India’s energy security and economic growth.
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