India’s major crude oil producer, Oil and Natural Gas Corporation (ONGC), at its annual general meeting (AGM) held on Sep. 19, 2008, has announced highest ever dividend by an Indian company at Rs 68.44 billion excluding Rs 11.63 billion payable as tax.

The company’s consolidated sales for FY 07-08 stood at Rs 1,037.17 billion, whereas standalone sales were at Rs 167.02 billion as compared to 156.43 billion during the corresponding period of the last year.

The company’s net profit for the same period increased 7% at Rs 167.02 billion up as against 156.43 billion in the previous year.

State-owned PSU Oil India Limited (OIL) would soon launch an IPO to raise debts. The company recently got the approval of Security and exchange Board of India (SEBI) in this regard. It has said, in a statement, that the company would generate funds from the market if the IPO fails to generate required debts. 

State-owned oil refiner, Indian Oil Corporation (IOC) would invest around Rs 6,500 crore in order to raise its pipeline network to more than 13,000-KM by March 2012.

Moreover, the company has also decided to finish up its primary gas pipeline by the end of existing year (Dec 2008). 

Mr. P.K. Chakraborti, Director-Pipelines, stated that the whole pipeline project will be funded through a debt-equity ratio of 1:1. 

“The money will come either from our borrowings or the money from the oil bonds,” Mr. P.K. Chakraborti said. 

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Oil and Natural Gas Corp (ONGC) would invest Rs 19,338 crore in oil and gas exploration in the existing fiscal (2008-09), which is around 10% more than its investment of Rs 17,651 crore during the previous year. 

Mr. R S Sharma, ONGC Chairman, said, “Improving the reserve replacement ratio by intensifying exploratory efforts is company's first priority.” 

“Improving recovery factor, arresting decline in mature fields and expeditious development of discovered fields are the other priorities,” Mr. Sharma said. 

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