Oil & Natural Gas Corporation Limited (ONGC), India's leading oil and gas exploration and production company, has announced a strategic partnership with APM to establish an offshore oil and gas logistics facility. This collaboration aims to develop crucial infrastructure to support offshore energy operations, potentially enhancing ONGC's capabilities in the sector.

Partnership Details

The partnership between ONGC and APM is set to focus on:

• Developing a state-of-the-art offshore oil and gas logistics facility
• Creating infrastructure to support offshore energy operations
• Enhancing the efficiency of ONGC's offshore activities

This move is expected to strengthen ONGC's position in the offshore energy sector and potentially improve its operational capabilities.

Potential Impact

The establishment of this offshore logistics facility could have several benefits for ONGC:

1. Improved operational efficiency in offshore operations
2. Enhanced support for exploration and production activities
3. Potential cost savings through optimized logistics
4. Increased capacity to handle offshore projects

Company Background

ONGC, with its registered office in New Delhi, is a key player in India's oil and gas sector. The company is known for its extensive offshore and onshore operations across the country.

Recent Corporate Developments

While the partnership with APM is a significant development, it's worth noting that ONGC has recently faced a challenge in its auditing arrangements. According to the latest LODR (Listing Obligations and Disclosure Requirements) data:

• M/s MSKA & Associates, one of the five Chartered Accountants Firms appointed as Joint Statutory Auditors, has declined the appointment.
• The firm cited a conflict of interest, as its network entity has been providing multiple services to the ONGC Group, including accounting and finance services to a subsidiary and business valuation services to an associate company.
• These services fall under the category of prohibited services under Section 144 of the Companies Act, 2013, which would compromise the firm's independence as an auditor.

This development highlights ONGC's commitment to maintaining transparency and adhering to regulatory requirements in its corporate governance practices.

As ONGC moves forward with its partnership with APM for the offshore logistics facility, it will likely also need to address the auditor appointment issue to ensure compliance with statutory requirements.

The collaboration with APM for the offshore logistics facility represents ONGC's ongoing efforts to enhance its operational capabilities and maintain its position as a leader in India's oil and gas sector.

Oil & Natural Gas Corporation (ONGC), India's state-owned oil and gas exploration company, has announced that MSKA & Associates has declined their appointment as Joint Statutory Auditor for the Financial Year 2025-26. The decision comes in light of potential conflicts of interest that could compromise the firm's independence.

Reasons for Declining the Appointment

MSKA & Associates, in a letter dated September 24, 2025, informed ONGC that they cannot accept the role due to existing engagements with ONGC Group companies. The firm identified that its network entity has been providing multiple services to the ONGC Group, including:

1. Accounting and finance services to one of ONGC's subsidiaries
2. Business valuation services to an associate company of ONGC

These services fall under the category of prohibited services as per Section 144 of the Companies Act, 2013. Accepting the appointment as Joint Statutory Auditor would compromise the firm's independence, which is crucial for maintaining the integrity of the audit process.

Background of the Appointment

The Comptroller & Auditor General of India (C&AG) had previously notified ONGC about the appointment of five chartered accountant firms as statutory auditors. MSKA & Associates was specifically appointed for the ONGC Calcutta unit in Kolkata.

ONGC's Response

ONGC, in its filing to the stock exchanges, acknowledged receipt of the letter from MSKA & Associates. The company stated that it had previously informed about the C&AG's appointment of the five firms in filings dated September 12 and 19, 2025.

Implications

This development highlights the importance of auditor independence in ensuring transparent and reliable financial reporting. It also underscores the complexities that can arise in large corporate structures with multiple subsidiaries and associate companies.

ONGC will likely need to work with the C&AG to appoint a replacement for MSKA & Associates to ensure a complete panel of joint statutory auditors for the upcoming financial year.

The incident serves as a reminder of the strict regulations governing auditor appointments and the need for thorough conflict of interest checks in the auditing process.