India, Sept. 1 -- State-owned Oil and Natural Gas Corporation (ONGC) plans to enter crude and petroleum-product trading and build a new strategic petroleum reserve as it seeks to strengthen supply security and extract more value across its energy portfolio, while continuing to make upstream exploration its central focus.

ONGC's new trading unit is expected to begin operations "end of this year", Chairman and CEO Arun Kumar Singh told reporters. The will initially handle the group's own crude and product requirements, while also pursuing third-party business.

The unit, which ONGC is considering locating in Dubai or Singapore, could create opportunities worth about USD 1 billion a year through better crude sourcing, freight management and...