ONGC arm Imperial Energy to merge 5 subsidiaries with itself, save ₹2 crore per year

According to ONGC, the Cyprus-based Imperial Energy maintains a total of seven direct subsidiaries: Imperial Energy Cyprus Ltd (IECL), Imperial Energy Nord Ltd (IENL), Imperial Frac Services Cyprus Ltd (IFSCL), Redcliffe Holdings Ltd (RHL), Imperial Energy Tomsk Ltd (IETL), Biancus Holding Ltd (BHL), and San Agio Investment Ltd (SAIL).

ONGC manages its overseas exploration and production of oil and natural gas business mainly through its wholly-owned subsidiary, ONGC Videsh Ltd (OVL). OVL holds one of its assets in Russia through a wholly-owned subsidiary Imperial Energy Ltd (IEL).

The rationale behind this amalgamation is to mitigate administrative costs, estimated at approximately $0.24 million per year (equivalent to ₹2 crore per year), primarily attributed to accounting and audit, statutory payments, and taxes.

The merger is anticipated to yield not only a reduction in administrative costs and taxes but also simplify statutory and tax compliances, enhancing the overall efficiency of financial reporting under a more streamlined management structure, the company added.

Shares of Oil and Natural Gas Corporation Ltd ended at ₹274.70, up by ₹0.20, or 0.073% on the BSE.