ONGC undervalued at $ 7 per barrel

New Delhi, Nov 7: State-owned Oil and Natural Gas Corporation (ONGC) today said the company is undervalued as they are not able to optimise the value per barrel during exploration which is only seven dollars per barrel compared to Cairn Energy's 14 dollars per barrel.

''Our total enterprise value is seven dollar per barrel in comparison to 13-14 barrels per dollar of Cairn Energy,'' Company's Chairman Managing Director R S Sharma told reporters here.

The total enterprise value is counted by dividing market capitalisation with underlying proven reserve which is currently at nine billion per barrrel.

ONGC's market cap is Rs 7,000 crore, Mr Sharma said.

On an average the enterprise value of Exploration and Protection companies stands at 15-16 dollar per barrel, he said.

UNI