Business Case Studies, Mergers, Acquisitions and Takeovers Case Study, Metlife's Acquisition of Citigroup's Insurance Arm, Travelers Inc , The Synergies

print page
Tell A Friend
Bookmark
 

Case Categories

Mergers, Acquisitions and Takeovers Case Study

IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
Case Title:

ONGC’s acquisition of Imperial Energy – Can it be profitable?

Publication Year : 2010

Authors: V Phanase, S Chaganty

Industry: Oil and Natural Gas

Region:India

Case Code: MAA0203IRC

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study
OR





Abstract:
ONGC (Oil and Natural Gas Corporation) in India acquired Imperial Energy, the UK based firm operating in Russia for $1.9 billion in 2008. This acquisition was the second largest investment made by ONGC in Russia. Imperial Energy was an upstream oil and gas exploration and production company which had oil producing blocks in Western Siberia, which was considered to be the most productive oil producing part of Russia. The acquisition deal began in August 2008. 98% of the shareholders of Imperial Energy approved the deal in December 2008 so the deal became unconditional for ONGC. Raising finance for this deal was the biggest challenge for ONGC. The acquisition value in the oil and natural gas industry was normally decided by the prevailing crude oil prices at the time of the deal. When ONGC made the bid, crude oil prices were hovering between $115 to $120 per barrel. However, with the subsequent fall in oil prices due to the global financial crisis, there were concerns regarding profitability of the deal. With this acquisition ONGC added one more strong asset to its portfolio. This case examines the acquisition of Imperial Energy by ONGC. It also discusses the challenges faced by ONGC during the deal, and provides a brief overview of the oil and natural gas industry in India.

Pedagogical Objectives:

  • To understand the Indian oil and natural gas industry and the challenges for this industry.
  • To analyse the reasons behind ONGC's acquisition of Imperial Energy.
  • To discuss the benefits of this deal for ONGC.

Keywords : ONGC (Oil and Natural Gas Corporation), Gas industry, Imperial energy, Russia, Oil reserves, Natural gas, India, Tomask, Production, Consumption

Contents : 
ONGC’s market share in oil production
India’s Crude Oil consumption
Oil and Natural Gas companies in India - Public sector
India’s oil production and consumption 1990-2006
ONGC’s acquisition of Imperial Energy
Overview of Oil and Natural Gas Sector of India
Regulatory actions declared by Government of India

Recently Bought Case Studies

    Recently Bought Case Studies
advertisement

    Executive Interviews

  • Dr. Michael HammerDr. Michael Hammer

    Visiting Professor at MIT and a Fellow at Oxford University.
    Speaks on Change Management
  • Don SullDon Sull

    Donald N Sull is a Professor of Management Practice in Strategic and International Management at the London Business School.
    Speaks on Strategy Execution
  • Michael BrimmMichael Brimm

    Prof. Michael Brimm is Emeritus Professor of Organization and Management at INSEAD.
    Speaks on Managing Complexity
  • View All Executive Interviews»






Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501 504, Andhra Pradesh, INDIA.
Mob: +91- 9640901313, Phone: +91 - 08417 - 236672, Fax : + 91 - 08417 - 236674
E-mail: casehelpdesk@ibsindia.org

©2003-2010 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap