ICRA has assigned 'AAA' and 'A1+' ratings outstanding for ONGC's overseas investment arm, ONGC Videsh's (OVL) bank lines and various debt programmes. The outlook on the long-term rating is stable. While assigning the ratings to OVL, ICRA has been taking a consolidated view of OVL along with ONGC, considering that the company is wholly-owned by ONGC and is of strategic importance to ONGC by virtue of its status as its overseas E&P arm.
ONGC is a premier oil and gas company in India, accounting for 71% of the country's crude oil production and 54% of its natural gas production in 2011-12. It is also a significant producer of value added products such as liquefied petroleum gas (LPG), superior kerosene oil (SKO), and naphtha. GoI is the majority shareholder in ONGC, with a 69% equity stake as of now.