A

PROJECT REPORT ON

Oil and Natural Gas Corporation

SUBMITTED BY:
Yogendra Agarwal
Registration no. 161001158
Course

BBA

Section C

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CORPORATE PROFILE
Oil and Natural Gas Corporation Limited (ONGC) is an
Indian multinational oil and gas company headquartered in Dehradun, Utt
arakhand, India. It is a Public Sector Undertaking (PSU) of
the Government of India, under the administrative control of the Ministry
of Petroleum and Natural Gas. It is India's largest exploration and
production company. It produces around 77% of India's crude
oil (equivalent to around 30% of the country's total demand) and around
62% of its natural gas.
On 31 March 2013, its market
capitalization was INR 2.6 trillion (US$48.98 billion), making it India's
second largest publicly traded company.[4][5] In a government survey for
FY 201112, it was ranked as the largest profit making PSU in India.
[6]
ONGC has been ranked 449th in the Fortune Global 500 list of the
world's biggest corporations for the year 2015. It is ranked 17th among
the Top 250 Global Energy Companies by Platts.
ONGC was founded on 14 August 1956 by Government of India, which
currently holds a 68.94% equity stake. It is involved in exploring for and
exploiting hydrocarbons in 26 sedimentary basins of India, and owns and
operates over 11,000 kilometers of pipelines in the country. Its
international subsidiary ONGC Videsh currently has projects in 17
countries. ONGC has discovered 6 of the 7 commercially producing
Indian Basins, in the last 50 years, adding over 7.1 billion tonnes of Inplace Oil & Gas volume of hydrocarbons in Indian basins. Against a
global decline of production from matured fields, ONGC has maintained
production from its brownfields like Mumbai High, with the help of
aggressive investments in various IOR (Improved Oil Recovery) and
EOR (Enhanced Oil Recovery) schemes. ONGC has many matured fields
with a current recovery factor of 2533%. Its Reserve Replacement Ratio
for between 2005 and 2013, has been more than one. During FY 2012
13, ONGC had to share the highest ever under-recovery of INR 494.2
million (an increase of INR 49.6 million over the previous financial year)
towards the under-recoveries of Oil Marketing Companies
(IOC, BPCL and HPCL)
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 ONGC is one of the most valuable corporations trading on Indian stock

exchanges. With a current approximate share price of around INR 250 per
share and 8555.60 million equity share base, the market valuation of
ONGC is INR 2,138,900 million.
ONGC Group of Companies comprises of Oil and Natural Gas
Corporation Limited (ONGC - The Parent Company); ONGC Videsh
Limited (OVL a wholly owned subsidiary of ONGC); ONGC Nile
Ganga BV (ONG BV - a wholly owned subsidiary of OVL) and
Mangalore Refinery and Petrochemicals Limited (MRPL - a subsidiary of
ONGC). Oil and Natural Gas Corporation Limited (ONGC) is India's
Most Valuable Company, having a market share of above 80% in India's
Crude Oil and Natural Gas Exploration and Production. ONGC registered
the highest profit among all Indian companies at US $ 1.92 billion (Rs.
8664.4 Caror) in the year 2003-04. Its production of Crude Oil in 2003-04
was 26.7 MMT and of Natural Gas 25.70 Billion Cubic Meters. ONGC
also produce Value-Added Products (VAP) like C2-C3; LPG; Naphtha
and SKO.
ONGC Videsh Limited (OVL) is overseas arm of ONGC, engaged in
Exploration & Production Activities. It trans-nationally operates E&P
Business in 10 countries, making ONGC the biggest Indian Multinational
Corporation. In recent years, it has laid footholds in hydrocarbon acreage
in various countries including Ivory Cost and Australia. ONGC Nile
Ganga BV is a wholly owned subsidiary of OVL and has equity in
producing field in Sudan.

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History
1947 1960
During pre-independence, the Assam Oil Company in the North-Eastern and
Attock Oil company in North-Western part of undivided India were the only oil
companies producing oil in the country. The major part of Indian sedimentary
basins was deemed to be unfit for development of oil and gas resources.
After independence, the Government realized the importance of oil and gas for
rapid industrial development and its strategic role in defence. Consequently,
while framing the Industrial Policy Statement of 1948, the development of the
hydrocarbon industry in the country was considered to be of utmost necessity.
Until 1955, private oil companies mainly carried out exploration of hydrocarbon
resources of India. Assam Oil Company was producing oil at Digboi, Assam
(discovered in 1889) and the Oil India Ltd. (a 50% joint venture between
Government of India and Burmah Oil Company) was engaged in developing
two fields Naharkatiya and Moran in Assam. In West Bengal, the Indo-Stanvac
Petroleum project (a joint venture between Government of India and Standard
Vacuum Oil Company of USA) was engaged in exploration work. The vast
sedimentary tract in other parts of India and adjoining offshore remained largely
unexplored.
In 1955, Government of India decided to develop the oil and natural gas
resources in the various regions of the country as part of Public Sector
development. With this objective, an Oil and Natural Gas Directorate was set up
in 1955 under the then Ministry of Natural Resources and Scientific Research.
The department was constituted with a nucleus of geoscientists from the
Geological survey of India.
A delegation under the leadership of Mr. K D Malviya, the then Minister of
Natural Resources, visited several countries to study the oil industry and to
facilitate the training of Indian professionals for exploring potential oil and gas
reserves. Foreign experts from USA, West Germany, Romania and erstwhile
USSR visited India and helped the government with their expertise. Finally, the
visiting Soviet experts drew up a detailed plan for geological and geophysical
surveys and drilling operations to be carried out in the 2ndFive Year Plan (195657 to 1960-61).
In April 1956, the Government of India adopted the Industrial Policy
Resolution, which placed mineral oil industry amongst the Schedule 'A'
industries, the future development of which was to be the sole and exclusive
responsibility of the state.
Soon, after the formation of the Oil and Natural Gas Directorate, it became
apparent that it would not be possible for the Directorate with limited financial
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and administrative powers to function efficiently. So in August, 1956, the

Directorate was raised to the status of a commission with enhanced powers,
although it continued to be under the government. In October 1959, the
Commission was converted into a statutory body by an act of Parliament, which
enhanced powers of the commission further. The main functions of the Oil and
Natural Gas Commission subject to the provisions of the Act, were "to plan,
promote, organize and implement programmes for development of Petroleum
Resources and the production and sale of petroleum and petroleum products
produced by it, and to perform such other functions as the Central Government
may, from time to time, assign to it". The act further outlined the activities and
steps to be taken by ONGC in fulfilling its mandate.
1961 1990
Since its inception, ONGC has been instrumental in transforming the country's
limited upstream sector into a large viable playing field, with its activities
spread throughout India and significantly in overseas territories. In the inland
areas, ONGC not only found new resources in Assam but also established new
oil province in Cambay basin (Gujarat), while adding new petroliferous areas in
the Assam-Arakan Fold Belt and East coast basins (both inland and offshore).
ONGC went offshore in early 70's and discovered a giant oil field in the form of
Bombay High, now known as Mumbai High. This discovery, along with
subsequent discoveries of huge oil and gas fields in Western offshore changed
the oil scenario of the country. Subsequently, over 5 billion tonnes of
hydrocarbons, which were present in the country, were discovered. The most
important contribution of ONGC, however, is its self-reliance and development
of core competence in E&P activities at a globally competitive level.
After 1990
The liberalized economic policy, adopted by the Government of India in July
1991, sought to deregulate and de-license the core sectors (including petroleum
sector) with partial disinvestments of government equity in Public Sector
Undertakings and other measures. As a consequence thereof, ONGC was reorganized as a limited Company under the Company's Act, 1956 in February
1994.
After the conversion of business of the erstwhile Oil & Natural Gas
Commission to that of Oil & Natural Gas Corporation Limited in 1993, the
Government disinvested 2 per cent of its shares through competitive bidding.
Subsequently, ONGC expanded its equity by another 2 per cent by offering
shares to its employees.
During March 1999, ONGC, Indian Oil Corporation (IOC) - a downstream
giant and Gas Authority of India Limited (GAIL) - the only gas marketing
company, agreed to have cross holding in each other's stock. This paved the way
for long-term strategic alliances both for the domestic and overseas business
opportunities in the energy value chain, amongst themselves. Consequent to this
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the Government sold off 10 per cent of its share holding in ONGC to IOC and
2.5 per cent to GAIL. With this, the Government holding in ONGC came down
to 84.11 per cent.
In the year 2002-03, after taking over MRPL from the A V Birla Group, ONGC
diversified into the downstream sector. ONGC has also entered the global field
through its subsidiary, ONGC Videsh Ltd. (OVL). ONGC has made major
investments in Vietnam, Sakhalin, Columbia, Venezuela, Sudan, etc. and earned
its first hydrocarbon overseas revenue from its investment in Vietnam.
Today, Oil and Natural Gas Corporation Ltd. (ONGC) is, the leader in
Exploration & Production (E&P) activities in India contributing 72 per cent to
Indias total production of crude oil and 48 per cent of natural gas.
ONGCs quest for energy goes deeper than setting new benchmarks in deepwater drilling in the Krishna Godavari Basin or finding new frontiers of energy.
Global decline in crude prices notwithstanding, we have taken significant
investment decisions diligently and aggressively, reversing the production trend
in offshore. And now we are venturing into deeper offshore plays in our quest
for energy security. It is this journey that has placed us among Fortune Worlds
Most Admired Companies and ranked us 3rd in the E&P industry globally on
the Platts Top 250 Rankings 2014.
Lets give you a birds eye-view, where we are stand.
Exploration
Discovered six out of seven producing Basins in India. Located 8.78
billion tonnes of Oil & Oil Equivalent in Indian Basins with over 400
discoveries
ONGC is the largest exploration acreage and mining lease holder in India
83% of established reserves (out of 10.9 BT) in the country has been
discovered by ONGC.
22 new discoveries - 10 new prospects, 12 new pools in FY15
Reserve Replenishment Ratio (RRR) for the last ten years has been more
than One (3P Reserves)

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Board of Directors
The Company is managed by the Board of Directors, which formulates
strategies, policies and reviews its performance periodically. The Chairman &
Managing Director (CMD) and Six Whole-Time Directors viz. Director
(Onshore), Director (Technology & Field Services), Director (Finance),Director
(Offshore), Director (Exploration) and Director (Human Resource), manage the
business of the Company under the overall supervision, control and guidance of
the Board.
As on 21st March 2016, the strength of the Board of Directors is 12 members,
comprising of 7 Functional Directors (including the Chairman & Managing
Director) and 5 Non-executive Directors (comprising 2 part-time official
nominee Directors and 3 part time non official Directors) nominated by the
Government of India. To share the global experience and business strategies,
Managing Director, ONGC Videsh Limited (OVL) is a permanent invitee to the
meetings of the Board.

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SWOT ANALYSIS
1. STRENGTHS
A)

O.N.G.C LTD is perceived to be the leader in oil production

industry.
B)

O.N.G.C has a very efficient and professional management team.

C)

O.N.G.C being an international company has sufficient resources

and capital to invest.

D)

O.N.G.C has ISO-9001 & ISO 14001 registration.

2. WEAKNESSES
A)

O.N.G.C facing difficulties to produce oil from aging reservoirs.

3. OPPURTUNITY
A)

Energy utilization of buried coal resource (700 -1700M),

estimated
63BT Equivalent to 15000 BCM.
B)

O.N.G.C facing difficulties to produce oil from aging reservoirs.

4. THREAT
A)

Security of personnel & property especially crude oil continues to

be

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a cause of concern in certain area.

B)

In some exploration Campaign Company involves high

technology,
high technology, High investment and high risk.
.

Production

ONGC has been able to arrest decline in majority of its matured fields (of
vintage 30-50 years) that contribute 72% of the companys O+OEG production
through its majorly successful technology-intensive IOR and EOR.
1184 oil wells and 151 gas wells in offshore and 4735 oil wells and 606
gas wells in onshore as on April 1, 2015
Western Offshore production up by 7.5% (16.20 MMT in FY15 against
15.54 MMT in FY14)
Produces 1.2 million barrels of oil equivalent per day
ONGC accounts 69% of Crude oil & 70% of Natural Gas production
Produced 1,743 Million Metric Tonnes of Oil Equivalent so far
Arrested decline in 14 major fields producing for over 30 years, vis-a-vis
global decline rate of 7% from matured fields
SiteMap
Website
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THE ORGANIZATION
ONSHORE
ONGC has got seven producing asserts in Onshore - Ahmedabad, Mehasana, Ankleshwar,
Assam, Tripura, Rajahmundry and Cauvery Assets.
Two producing basins- Cambay and Assam Arakan Fold Belt (AAFB).
Cumulative Crude oil production- 282.114 MMT.
Cumulative Gas production- 110.27 BCM.
IOR schemes implemented in 13 major onshore fields.

OFFSHORE
Three producing Assets- Mumbai High, Neelam & Heera and Bassein & Satellite.
Joint ventures and production sharing contract for Ravva, Panna-Mukta and Tapti fields.
Development of several Marginal Fields like- Vasai West (SB-11), Vasai East, C- series, G-1
and GS-15 Offshore fields in East Coast, KG Basin, B-22 cluster, etc.
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 Oil and Gas produced from offshore processed at Uran and Hazira plant.
Cumulative Crude oil production-453.83 MMT.
Cumulative Gas production- 336.34 BCM

Global Ranking
-

ONGC is ranked as the Top Energy Company in India, Fifth

in Asia and 20th globally as per Platts Top 250 Global Energy
Rankings, 2016; Maintains place as World's Third ranked
E&P Company in the list.
Ranked 464 in the Newsweek Green Rankings World's
Greenest Companies 2016
Ranked 14th among global Oil and Gas Operations industry in
Forbes Global 2000 list, 2016 of the World's biggest companies
for 2016; Ranked 220 in the overall list, 2016 - based on Sales
(US$ 26..1billion), Profits (US$ 3 billion), Assets (US$ 57.3
billion) and Market Value (US$ 27.8. billion).
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 Ranked 26 in 'Transparency in Corporate Reporting' among the

world's 124 largest listed companies published by
Transparency International, 2014(Up from 39 in 2012)

ONGC Represents India's Energy

Security Through its Pioneering
Efforts
-

ONGC is the only fullyintegrated petroleum company in India, operating along

the entire hydrocarbon value chain. It has single-handedly scripted India's
hydrocarbon saga. Some key pointers:
ONGC has discovered 6 out of the 7 producing basins in India:
It has 7.59 billion tonnes of In-place hydrocarbon reserves. It has to its
credit more than 320 discoveries of oil and gas with Ultimate Reserves
of 2.69 Billion Metric tonnes (BMT) of Oil Plus Oil Equivalent Gas
(O+OEG) from domestic acreages.
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 It has cumulatively produced 851 Million Metric Tonnes (MMT) of

crude and 532 Billion Cubic Meters (BCM) of Natural Gas, from 111
fields.
ONGC has won 121 out of a total 235 Blocks (more than 50%) in the 8
rounds of bidding, under the New Exploration Licensing Policy (NELP)
of the Indian Government.
ONGC's wholly-owned subsidiary ONGC Videsh Ltd. (OVL) is the
biggest Indian multinational, with 36 Oil & Gas projects (13 of them
producing) in 17 countries
Produces over 1.24 million barrels of oil equivalent per day,
contributing around 70% of India's domestic production. Of this, over
75% of crude oil produced is Light & Sweet.
The Company holds the largest share of hydrocarbon acreages in India
(51% in PEL Areas & 67% in ML Areas).
ONGC possesses about one tenth of the total Indian refining capacity.
ONGC has a well-integrated Hydrocarbon Value Chain structure with
interests in LNG and product transportation business as well.
A unique organization in world to have all operative offshore and
onshore installations (403) accredited with globally recognized
certifications.

Competitive Strength
-

All crudes are sweet and most (76%) are light, with sulphur percentage
ranging from 0.02-0.10, API gravity range 26-46 and hence attract a
premium in the market.
Strong intellectual property base, information, knowledge, skills and
experience

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 Maximum number of Exploration Licenses, including competitive

NELP rounds. ONGC has bagged 121 of the 235 Blocks (more than
50%) awarded in the 8 rounds of NELP.
ONGC owns and operates more than 26,600 kilometers of pipelines in
India, including sub-sea pipelines. No other company in India operates
even 50 per cent of this route length.

Perspective Plan 2030 (PP2030)

-

PP2030 charts the roadmap for ONGC's growth over the next two decades. It
aims to double ONGC's production over the plan period with 4-5 per cent
growth against the present growth rate of 2 percent. In physical terms the
aspirations under Perspective Plan 2030 aims for -

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 Production of 130 mmtoe of oil and oil equivalent gas (O + OEG) per
year and accretion of over 1,300 mmtoe of proven reserves.
Grow ONGC Videsh Limited (OVL) six fold to 60 mmtoe of
international O+OEG production per year by 2030.
More than 20 mmtoe of O+OEG production per year in India coming
from new unconventional sources such as shale gas, CBM, deepwater
and HPHT (High Pressure & High Temperature) reservoirs.
Over 6.5 GW power generation from nuclear, solar and wind and 9
MTPA of LNG.
Scaling up refining capacity to over 20 MMTPA and targeted
investments to capture downstream integration in petrochemicals.

Frontiers of Technology
-

State-of-the-art seismic data acquisition, processing and interpretation

facilities
Uses one of the Top Ten Virtual Reality Interpretation facilities in the
world

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 Alliances with Transocean, Schlumberger, Halliburton, Baker Hughes,

IPR, Petrobras, Norsk, ENI and Shell
One of the biggest ERP implementations in the Asia

Best In Class Infrastructure And

Facilities
-

The Company operates with 27 Seismic crews, manages 250 onshore

production installations, 215 offshore installations, 77 drilling (plus 31
hired) and 57 work-over rigs (plus 25 hired), owns and operates more
than 28,139 kilometers of pipeline in India, including 4,500 kilometers
of sub-sea pipelines.
ONGC has adopted Best-in-class business practices for modernization,
expansion and integration of all Infocom systems.

ONGC Videsh Limited

ONGC Videsh Limited - Working globally for the energy security of India
Introduction
ONGC Videsh Ltd. (OVL) a Miniratna Schedule A Central Public Sector
Enterprise (CPSE) of the Government of India under the administrative control
of the Ministry of Petroleum & Natural Gas is the wholly owned subsidiary and
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overseas arm of Oil and Natural Gas Corporation Limited (ONGC), the flagship
national oil company (NOC) of India. The primary business of OVL is to
prospect for oil and gas acreages outside India, including exploration,
development and production of oil and gas. OVL owns Participating Interests in
32 oil and gas assets in 16 countries and contributes to 12% and 7 % of oil and
natural gas production of India respectively. In terms of reserves and
production, OVL is the second largest petroleum Company of India, next only
to its parent ONGC.
GENESIS, BACKRGOUND and the evolutionary story of OVL History
and Background
OVL was incorporated as Hydrocarbons India Pvt. Ltd. on 5 March 1965 to
carry out exploration and development of the Rostam and Raksh oil fields in
Iran and undertaking a service contract in Iraq. The company was rechristened
as ONGC Videsh Limited on June 15, 1989 with the prime objective of
marketing the expertise of ONGC abroad. The nineties saw the Company
engaged in limited exploration activities in Egypt, Yemen, Tunisia and Vietnam.
In its new avatar as ONGC Videsh, the company from mid-nineties re-oriented
its focus on acquiring quality overseas oil and gas assets.. Realizing the
associated necessity of special empowerments, the Company was granted
special empowerment by the Government of India in January 2000 whereby
power to take investment decisions up to ` 200 Crore was delegated to the
Board of Directors of ONGC Videsh. In addition, a fast track approval system
was put in place for investments beyond power of the Board for approval by the
Cabinet Committee on Economic affairs (CCEA) through Empowered
Committee of Secretaries (ECS). The delegated authority of the Board was
enhanced to ` 300 Crore or US$ 75 million, whichever is less, in February 2005.
In 2011, the Govt. has upgraded the OVL Board to Mini Ratna (Category-1)
status and in August 2012 it has been upgraded from Schedule B to Schedule
A.
The special empowerment facilitated ONGC Videsh to successfully acquire oil
and gas assets in foreign countries. ONGC Videsh, which had one asset in year
2000, gradually succeeded in competing with the best in the international arena,
and could conclude many large transactions across the world in subsequent
years.
Current Assets Portfolio
OVL has stake in 33 oil and gas projects in 16 Countries, Viz. Vietnam (2
projects), Russia (2 projects), Sudan (2 projects), South Sudan (2 projects), Iran
(1 project), Iraq (1 project), Libya (1 project), Myanmar (2 projects), Syria (2
projects), Cuba (1 project), Brazil (2 projects), Nigeria (1 project), Colombia (8
projects), Venezuela (2 projects), Kazakhstan (1 project) and Azerbaijan (2
projects). OVL had ventured into midstream and had successfully completed
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741 Km product pipeline project in Sudan in 2005. In March 2013, it acquired

2.36% stake in the BTC pipeline as part of its acquisition of stake in Azerbaijan.
OVL adopts a balanced portfolio approach and maintains a combination of
producing, discovered and exploration assets. Currently, OVL has oil and gas
production from 11 Assets, namely, Russia (Sakhalin-I and Imperial Energy),
Syria (Al-Furat Petroleum Co.), Vietnam (Block 06.1), Colombia (MECL),
Sudan (Greater Nile Petroleum Operating Company), South Sudan (Greater
Pioneer Operating Company and Sudd Petroleum Operating Company),
Venezuela (San Cristobal), Brazil (BC-10) and Azerbaijan (ACG). Imperial
Energy, Russia (100% PI) is one producing asset operated by OVL while five
assets namely GNPOC, Sudan; GPOC and SPOC, South Sudan; MECL,
Colombia and Sancristobal, Venezuela are jointly operated.
Five Assets where hydrocarbons have been discovered and are at various stages
of development as on 31st March, 2013 Viz. Petro Carabobo-1 Venezuela,
Block 24 Syria, Block A1 & Block A3 Myanmar and Farzad B Iran, of these,
one is operated.
There are 14 Assets under various stages of Exploration out of which 8
exploration acreages are operated by OVL, 2 are jointly operated and
remaining 4 are non- operated.
New Horizons - RECENT Acquisitions
OVL made three acquisitions in FY 2012-13. It acquired stakes of Hess
Corporation subsidiaries in upstream and midstream assets in Azerbaijan on
28th March 2013. The assets include 2.7213% PI in Azeri, Chirag and
deepwater Guneshli (ACG) fields in the Azerbaijan sector of Caspian Sea.
British Petroleum operates the fields on behalf of Azerbaijan International
Operating Company (AIOC), a consortium of BP (35.79% PI), SOCAR
(11.65%), Chevron (1.1.27%), INPEX (10.96%), Statoil (8.56%), ExxonMobil
(8.0%), TPAO (6.75%), Itochu (4..30%) and OVL (2.72%). OVL also acquired
the 2.36% PI in Baku-Tbilisi-Ceyhan (BTC) pipeline held by Hess. BTC
Pipeline is operated by BP and owned by the consortium of SOCAR, Chevron,
INPEX, Statoil, TPAO, ltochu, TOTAL, ENI and Conoco Phillips. ACG is the
largest oil and gas field complex of Azerbaijan with 354 MMT of proven
reserves as on 31st March 2013. The field produced 652, 000 barrels of oil per
day in 2012-13.
OVL also acquired stakes in two exploration blocks in Colombia in 2012-13.
Block GUAOFF-2 was acquired in Colombia Bid Round-2012 and the E&P
Contract was signed on 3rd December 2012. The block is contiguous to OVLs
operated block RC-10 in Caribbean offshore and is spread over an area of
1171.34 SKM. Another block Llanos 69 (LLA-69) was acquired in the same
bidding round through Mansarovar Energy Colombia Limited (MECL) - a 5050 joint venture company of OVL and Sinopec. It is an onshore block in the
prolific Llanos basin of Colombia.
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OVL in a 50:50 consortium with another Indian oil PSU (with OVL as the
operator) has submitted the bid on 2nd April, 2013 for two shallow water blocks
in Bangladesh namely SS-04 and SS-09. Both the blocks are awarded to the
consortium and PSC initialed in September 2013 and signing is likely in
October 2013.
ONGC Videsh Limited (OVL) and Oil India Limited (OIL) have signed
definitive agreements on 25th June 2013 with Videocon Mauritius Energy
Limited to acquire 100% of shares in Videocon Mozambique Rovuma 1
Limited, the company holding a 10% participating interest in the Rovuma Area
1 Offshore Block in Mozambique (Area 1) for US$ 2,475 million. The
transaction is expected to close in the fourth quarter of 2013.
ONGC Videsh Limited (OVL) has signed definitive agreements on 24th
August 2013 with Anadarko Moambique Area 1 Limitada (Anadarko) to
acquire a direct 10% participating interest (Interest) in the Rovuma Area 1
Offshore Block in Mozambique (Area 1) for US$ 2,640 million.
OVL assets as on 31st March 2013 are listed below in Table 1.
Performance Highlights
OVL is the first Indian Company to produce equity oil and gas abroad. OVLs
production started in 2002-03 from start-up production of Block 06.1 in
Vietnam in January 2003 and from Greater Nile Oil Project in Sudan in March
2003, aggregating a meager 0.25 MMToe in FY 2002-03. With sustained growth
in production from its acquired assets, OVL registered the highest production of
9.448 MMtoe in 2010-11. This was followed by 8.753 MMTOE achieved in
2011-12, which translates to a Compound Annual Growth Rate (CAGR) of
10.75% till 2011-12. Adverse geo-political conditions in Sudan and South
Sudan and force majeure situation in Syria has caused decline in oil production
to a level 7.260 MMToe in 2012-13. Year-wise production of oil and gas from
inception till 2012-13 is shown in Table 2 below.
Key Financials
Key financial performance of OVL in last three years are given as below: (`. in
million)
OVLs cumulative investment up to 31st March, 2013 was USD 16.75 billion of
which 73% has been financed through internal accruals.
Building Social Capital Engaging with communities and Society
Fulfilling social responsibility as a corporate citizen is part of the foundational
ethos of Indian Public Sector Enterprises. OVL operates as responsible global
corporate citizen by positively engaging with the communities and society
where it operates.
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OVL is committed to create a positive and lasting social impact by developing

successful partnerships built on mutual trust and respect, ultimately raising the
standard of living and the stability of the communities of the countries in which
the Company operates. OVL makes valuable contribution in many ways e.g.
through payment of tax revenues to governments; by investing in education and
training and improving employment opportunities for nationals; providing
medical/sports/agricultural facilities to the local community etc. Keeping in
view the CSR guidelines issued by DPE, ONGC Videsh has framed CSR Policy
for achieving the CSR objectives in all its overseas Projects / Assets. Budget of
0.5% of previous years Profit After Tax (PAT) or target as per MOU with
ONGC, whichever is higher has been allocated towards CSR every year from
financial year 201112 onwards. This budget allocation is nonlapsable. The
Company spent ` 239 million and ` 208 million on CSR activities during FY12
and FY13 respectively.
OVERSEAS OFFICES
OVL has 22 overseas offices, located in HoChi Minh City (Vietnam),Yuzhno
Sakhalinsk (Russia), Baghdad (Iraq),Tehran (Iran), Tripoli (Libya), Havana
(Cuba), Caracas (Venezuela), Astana & Atyrau (Kazakhstan), Bogota
(Colombia), Damascus (Syria), Calgary (Canada) and Baku (Azerbaijan).
ONGC Nile Ganga BV has its registered office in Amsterdam (Netherlands), in
Khartoum (Sudan), Juba (South Sudan) and its subsidiaries have offices in Rio
de Janeiro (Brazil) and Nicosia (Cyprus). ONGC Narmada Limited and ONGC
Amazon Alaknanda Limited have their registered offices in Lagos (Nigeria) and
Hamilton (Bermuda) respectively. Imperial Energy Limited has its registered
office in Cyprus and its subsidiaries have offices in Cyprus, Moscow and
Tomsk. Carabobo One AB has its registered office in Sweden. ONGC (BTC)
Limited has registered office at Cayman Islands.
Competitive Strengths
OVL operates in highly competitive international oil and gas sector by
competing with the best in the industry. Over the years, OVL has built inherent
capabilities and expertise in its areas of operations. OVL has developed strong
partnership alliance with a host of IOCs and NOCs including ExxonMobil,
British Petroleum, Shell, ENI, Total, Repsol, Statoil, Chevron, Petrobras,
Sodeco, Socar, Rosneft, Daewoo, Kazmunaigaz (KMG), Petro Vietnam, CNPC,
Sinopec, PDVSA, Petronas and Ecopetrol. It has highly skilled human resource
with excellent technical and management capabilities. The company has built
facilities for evaluation, interpretation, economic modeling, FEED, design and
execution of oil and gas projects and enjoys the technical and human resource
support from ONGC. OVL has developed core expertise in due diligence,
techno-commercial
evaluations,
bid
negotiations
and
transaction
documentations.
Looking ahead
Page 20

OVL is focused to support Indias oil and gas security through overseas
participation in oil and gas Exploration and Production activities.As per ONGC
Groups Perspective Plan 2030, OVLs oil and gas production should increase
from the existing level of 7.26 MMToe to 20 MMToe by 2017-18 and 60
MMToe by 2029-30. This translates to a CAGR of 22.5% during 5 years till
FY18 and 9.5% during FY18 to FY30.
The emerging industry landscape augurs well for the company as it evolves into
a leading New Multinational Oil Company (NMOC). As a NMOC, the company
is positioning itself to be a key ONGC growth vehicle by aiming for 60MMTOE
production by 2030. The target requires Producing/Developing acquisitions
initially and then also on exploration acreage to yield additional 50 MTOE/ Year
by 2030. This will involve substantial fund requirement and OVL may have to
use full headroom of balance sheet of ONGC and OVL to finance these
acquisitions coupled with equity and project financing. This entails acquiring,
retention and training of manpower with specific skill sets and re organizing
internal processes and systems in tune with future requirements.
Recognition and Rewards
OVL has been conferred with the prestigious SCOPE Award for Excellence and
Outstanding Contribution to the Public Sector Management for 2009-10. The
award was presented by Dr. Manmohan Singh, Hon'ble Prime Minister of India
on 31st January 2012. OVL has emerged as Indias most internationalized
company based on the Transnationality Index (TNI) as per survey conducted
jointly by Indian school of Business (ISB), Hyderabad and Fundacao Dom
Cabral (FDC), Brazil.

The Road Ahead

ONGC looks forward to become an integrated energy provider, with:
New Discoveries and fast track development
Page 21

 Equity Oil from Abroad

Downstream Value Additions & Forward Integration
Leveraging state-of-the art technology and global best practices
New Sources of Energy
Production from small and marginal fields
ONGC has taken structured initiatives to tap unconventional energy
sources through unconventional gases like Coal Bed Methane (CBM),
Underground Coal Gasification (UCG), Shale Gas and Gas Hydrates, or
unconventional energy sources like wind, solar etc.
"ONGC Energy Centre Trust", a dedicated centre created by ONGC for
holistic research in non-conventional energy sources, has taken up three
projects viz., Thermo-chemical reactor for Hydrogen, Geo-bio Reactors
and Fuel Cells. ONGC has already commissioned a 50 MW Wind Farm
in Gujarat and plan is afoot to set up another 100 MW Wind Farm in
Rajasthan. ONGC has also set up 3 Solar Thermal Engines at Solar
Energy Centre, Ministry of New and Renewable Energy (MNRE)
campus at Gurgaon.

Value-chain integration
-

Page 22

 Value chain Integration ONGC's purchase of majority stake in equity in

the ailing Mangalore Refinery & Petrochemicals Limited (MRPL), a
stand-alone refinery of 9.69 MMT capacity in March 2003 is a standout
testimony of ONGC's integrated business model. The refinery capacity
has been progressively upgrqaded to 15 MMT. Besides adding that
desired comfort to this Company in mitigating higher risk of E&P
operation, this deal also set an example in the Indian business history
where a PSU has taken over a joint stock company and turned it around
in a record time of one year.
Moving ahead, ONGC has taken structured initiatives towards valuemultiplier integration projects like - Refinery, LNG, Petrochemicals,
Power, SEZ, etc., to have presence in the entire hydrocarbon valuechain.
ONGC is the key promoter in ONGC Petro-additions Pvt. Limited
(OPaL) - a grass root Mega Petrochemical project in the PCPIR / SEZ
zone at Port City of Dahej, Gujarat, India.

Page 23

Corporate Social Responsibility

In recognition of its role as a 'responsible leader', ONGC continues its quest to
make positive, tangible difference in the lives of the vulnerable and
disadvantaged, especially in and around its operational areas. With a business
paradigm that is based on an interconnected vision - of people's welfare, societal
growth and environmental conservation, ONGC continues to cater to the
developmental needs across the following focus areas:
Education including vocational courses;
Health Care;
Entrepreneurship (self-help & livelihood generation) schemes;
Infrastructure support roads, bridges, Schools, hospitals in around our
operational areas
Environment protection, ecological conservation, promotion;
Protection of heritage sites, UNESCO heritage monuments etc.;
Promotion of artisans, craftsman, musicians, artists etc. for preservation
of heritage, art & culture;
Women's empowerment, girl child development, gender sensitive
projects;
Water management including ground water recharge;
Initiatives for physically and mentally challenged;
Sponsorship of seminars, conferences, workshops etc. and
Promoting sports/sports persons; supporting agencies promoting sports /
sports persons.

Page 24

Corporate Governance
-

ONGC has taken structured initiatives towards Corporate Governance and its
practices which evolve around multi-layered checks and balances to ensure
transparency. Apart from the mandatory measures required to be implemented
as a part of Corporate Governance, ONGC has gone the extra mile in this
regard and has implemented the Whistle Blower Policy, Annual Report on
working of the Audit & Ethics Committee, MCA Voluntary Guidelines on
Corporate Governance, Enterprise-wide Risk Management (ERM) framework.

Health, Safety & Environment

-ONGC has implemented globally recognized QHSE management
systems conforming to requirements of ISO 9001, OHSAS 18001 and
ISO 14001 at ONGC facilities and certified by reputed certification
agencies at all its operational units. Corporate guidelines on incident
reporting, investigation and monitoring of recommendations has been
developed and implemented for maintaining uniformity throughout
the organization in line with international practice.
During 2011-12, 20% reduction in incidents achieved, 131
environmental clearance (EC/TOR) obtained, 4 Lakh Ringal Bamboo
Planted in Upper Himalayas, 25000 MT of oily waste treated using
Bioremediation, 412 installations certified with QHSE, 240
operational units audited for HSE Performance, 130 employees
trained on HUET, 14 HSE awareness programs completed.
Corporate Disaster Management Plan and guidelines have been
developed for uniform disaster management all across ONGC. ONGC
has also developed Occupational Health physical fitness criteria for
employees deployed for offshore operations. Occupational Health
module has now been populated on SAP system.
HSE Policy: Exploration and production of hydrocarbon involves
risk and close interaction with surrounding environment. To safeguard
Page 25

the working and surrounding environment, ONGC has adopted a well

defined HSE policy focusing on Occupational Health, Safe Operation
and control of pollution.
Statutory Compliance: In carrying out its operations and safety
requirements, ONGC abides by laws pertaining to oil and gas
exploration and production in India, particularly the Directorate
General of Mines Safety (DGMS) and Oil Industry Safety Directorate
(OISD). All statutory consents are obtained under section 21 of Air
Act, under section 25 of Water Act and Authorization under Rule 3(C)
& 5(5) of the Hazardous Waste (Management and Handling) Rules for
meeting operational requirements. All the stipulations are monitored
and timely reported to the respective regulatory agencies.
ISO certified: All the installations of ONGC have an integrated
management System based on requirements of ISO 9001, OHSAS
18001 and ISO 14001 and certified by third party. The integrated
management system is in place since 2004. All operating facilities
were certified to ISO 9001 since 2004-05. Today 412 nos. working
units of have third party certified integrated QHSE Management
System.
Corporate Environment Policy: The environment management
system of ONGC is top driven, effective and vibrant. Top
management commitment for prevention of pollution and protection
of environment is evident in the exclusive Corporate Environment
Policy statement stating the commitment.
Renewable energy: ONGCs holistic focus on sustainable growth
ensures its thrust on pursuing renewable sources of energy, decreasing
our internal carbon footprint and exploring unconventional
hydrocarbons. We are setting up a 102 MW Wind Farm in Rajasthan,
in addition to a 51 MW Unit already working successfully in Bhuj,
Gujarat. The planned investment is about INR 8 billion and the plant
is likely to be commissioned by 2014-15.
Energy conservation: ONGC has well defined energy policy which
focuses on various aspects of energy conservation. The introduction
of environment friendly and energy efficient technologies led to an
estimated savings of INR 409.23 Crores during 2011-12.

Page 26

Green Building: ONGC acknowledges that buildings have major

environmental impact over their entire life cycle. Hence, ONGC has
taken up concept of constructing green building, the essence of which
would be to address all these issues in an integrated and scientific
manner with due compliance to the guidelines of GRIHA (Green
Rating for Integrated Habitat Assessment). As part of its commitment
to sustainable development, ONGC has taken up development of
Green Buildings at Delhi, Mumbai, Kolkata & Dehradun. These
buildings are expected to save 50 to 60% energy, save water by about
30%, harvest 100% rainwater and discharge zero sewage and as
compared to baseline buildings.
Biodiversity Conservation: Apart from complying with the
environmental legal requirements, ONGC, as a responsible corporate
citizen has taken many initiatives to conserve nature and minimize
impact of our operations. Various initiatives taken by ONGC in
operational and outside operational areas are:
Mangrove Plantation: ONGC has undertaken massive mangrove
plantation drive in operational areas. In the Phase 1 of the project, 12
lakh saplings and about 5 lakh seeds and propugules were planted in
the erosion-prone area along the coast of the Dhadar river at
Ankleshwar. Following the success of the Phase 1 of 'Mangrove
Restoration and Conservation Education Project' at Ankleshwar,
ONGC has gone for the continuation of the mangrove plantation at
Ankleshwar and Hazira.
Ringal Plantation: We are working on a long-term project to
plant Ringal Bamboo in the fragile Upper Himalayan Region which is
also focus area outlined in National Action Plan for Climate Change
by Prime Minister. This project extends over a period of 5 years and
covers an area of 730 hectares.

Project Eastern Swamp Deer: ONGC is also working for protection

of eco-system of the North-Eastern region of the country, particularly
the state of Assam. The region of Kaziranga in upper Assam is home
to the famed one horned Rhinoceros and the Eastern Swamp Deer. It
Page 27

is also home to only surviving pool of Eastern Swamp Deer found in

the Kaziranga National Park.
Bioremediation: Accidental oil spillages and the tank bottom
sludge generated during the routine operations do pose threat to the
environment. ONGC hence decided to look for environmental
friendly options for the disposal and treatment. ONGC explored the
biotechnological option i.e. bioremediation wherein the indigenous
microorganisms are isolated, enriched and harnessed on mass scale
for application in the field. ONGC collaborated with The Energy and
Resources Institute (TERI, India) for supplying necessary technology
and resources for carrying out the project on bioremediation.

Safety
Risk assessment and control
The ONGC has developed SMS based on OHSAS 18001 which is
third party certified. All hazards are identified and associated risks are
evaluated, quantified and brought to acceptable level through relevant
work procedure & management plans. Emergency preparedness is
part of the system.
ONGC follows five basic steps to manage its operational risk.
1.
Identify Hazard
2.
Assess Risk
3.
Decide Control Measures
4.
Implement Control Measures
5.
Monitors and Review
Institute of Engineering & Ocean Technology (IEOT) is the nodal
agency for HAZOP & QRA studies in close association with Institute
Page 28

of Petroleum Safety Health and Environmental Management

(IPSHEM), Institute of Oil and Gas Production Technology (IOGPT)
and Institute of Drilling Technology (IDT)
Efforts taken to build and maintain safety & health culture at
workplace
To imbibe HSE culture among ONGC employees various programme
were undertaken across the organization. Safety awareness campaign
is organized every year on the occasion of National Safety Day on 4th
March. An online quiz at all work centers of ONGC was launched for
employees by CMD and winners receive recognition certificate by
CMD, ONGC for motivating them.
Apart from local safety awareness campaign, a complete organization
level safety awareness campaigns are launched every year with
specific themes. The details of some them are provided as below:
Humsafe Campaign: In the year 2012, Humsafe campaign is
launched. It is a campaign which will spur everyone to think safety
and act safely for himself and his team. ONGCians Promise of
Humsafe: To establish a Sustainable, Safe and World-Class working
environment in ONGC, I promise to be safe myself & will leave no
stone unturned for the safety of my team and colleagues.
Contractor Safety Workshop: To improve upon the safety
culture among contract workers, a series of workshops with
participation by senior management of both ONGC as well as
contractors was arranged during the period FY 2010-11 under the
campaign "Safe Together Tomorrow and Effective supervision is
the Key."
Workshop on Occupational Health and Industrial Hygiene: To
promote 'Health is Wealth', a one-day workshop on 'Occupational
Health and Industry Hygiene' was inaugurated on 23 December 2011
by Mr. A K Hazarika, former Director (Onshore) at New Delhi. Mr.
Hazarika expressed that monitoring the health level of ONGC
workforce was of paramount importance. Dr. Meena Shah of Medico
Media, Ahmedabad, defined health as a dynamic integration of body,
mind and spirit.
Emergency Response: The Oil and Gas Exploration & Production
Activities are dangerous. Although built-in safety systems at the
Page 29

design stages greatly reduce the risk-fallout probabilities, we still are

prepared adequately to plan for mitigating the consequences of such
disasters by mobilizing internal and external resources. Site specific
emergency response plan (ERP) for individual installation and
Disaster Management Plan (DMP) at asset level is an integral part of
emergency response. Offsite DMP plan at district level have also been
made and approved by competent authorities. Corporate DMP is
activated when the decision of top management are required with the
involvement of and Govt. of India.
Dedicated Crisis Management team
Blowout Control and all other related jobs of Drilling, Workover and
Production of various Assets & Basins are handled by 4 Regional
Crisis Management Teams namely RCMT-Rajahmundry, Baroda,
Sivasagar, Mumbai. All these 4 Teams will be headed by respective
Head-RCMTs under the functional guidance of Head-CMTOperations. Apart from the Mitigation of Blowouts, these teams are
involved in Kick Circulation, Equipment Audit, Critical Well
Reviews, Crew Trainings and Preparation of Contingency plans &
SOPs etc. as part of preventive measures. The Team and Infrastructure
at Mumbai, caters to the need of Mumbai Offshore.
Oil Spill Management:
ONGC has tier-1 capability of combating oil spills of upto 700 tons.
Necessary booms, skimmers and chemicals are available for the
purpose. For Tier-II, ONGC has inked MoU with MPT, JNPT & other
oil companies for the implementation of the National Oil Spill
Disaster Contingency Plan (NOS-DCP) in coordination with Indian
Coast Guard. For combating oil spills of higher magnitude (Tier-III),
membership of international response agency Oil Spill Response
Limited (OSRL), U.K has been taken by ONGC.

Page 30

Human Resources
-

ONGC has vast pool of skilled and talented professionals the most valuable
asset for the company. 33,927 ONGCians (as on 31st March, 2016) dedicate
themselves for the excellent performance of the company. ONGC extends
several welfare benefits to the employees and their families by way of
comprehensive medical care, education, housing and social security

Our People
"Not only had India... set up her own machinery for oil exploration and
exploitation... an efficient oil commission had been built where a large
number of bright young men and women had been trained and they were
doing
good
work."
- Pandit Jawahar Lal Nehru, India's first Prime Minister to Lord Mountbatten,
on ONGC (1959).
Today, ONGC is the flagship company of India; and making this possible is a
dedicated team of nearly 33,000 professionals who toil round the clock. It is this
toil which amply reflects in the aspirations and performance figures of ONGC.
The company has adopted progressive policies in scientific planning,
acquisition, utilization, training and motivation of the team. At ONGC,
everybody matters, every soul counts.
ONGC has a unique distinction of being a company with in-house service
capabilities in all the activity areas of exploration and production of oil & gas
and related oil-field services.
Needless to emphasize, this was made possible by the men & women behind the
machine. Over 18,000 technically-competent experienced scientists, engineers
and specialist professionals, mostly from distinguished Universities /
Institutions of India and abroad form the core of our executive profile. They
include geologists, geophysicists, geochemists, drilling engineers, reservoir
engineers, petroleum engineers, production engineers, engineering & technical
service providers, financial and human resource experts and IT professionals.
HR Vision, Mission & Objectives
HR Vision
"To build and nurture a world class Human capital for leadership in energy
business".
HR Mission
"To adopt and continuously innovate best-in-class HR practices to support
business leaders through engaged, empowered and enthused employees".
Page 31

HR Objectives
Enrich and sustain the culture of integrity, belongingness, teamwork,
accountability and innovation.
Attract, nurture, engage and retain talent for competitive advantage.
Enhance employee competencies continuously.
Build a joyous work place.
Promote high performance work systems.
Upgrade and innovate HR practices, systems and procedures to global
benchmarks.
Promote work life balance.
Measure and Audit HR performance.
Promote work life balance.Integrate the employee family into the
organisational fabric.
Inculcate a sense of Corporate Social responsibilities among employees.
Measuring HR Performance
HR Parameters have been incorporated in the MOU by ONGC since 1994-95,
to systematically and scientifically evaluate effectiveness of HR Systems, which
enables and facilitates time bound initiatives.
HR Parameters of MoU for 2009-2010
Mentoring and coaching
HR Audit
Engagement Survey
Continuous professional education credit course for finance executives of
ONGC.
A Motivated Team
HR policies at ONGC revolve around the basic tenet of creating a highly
motivated, vibrant & self-driven team. The Company cares for each & every
employee and has in-built systems to recognise & reward them periodically.
Motivation plays an important role in HR Development. In order to keep its
employees motivated the company has incorporated schemes such as Reward
and Recognition Scheme, Grievance Handling Scheme and Suggestion
Scheme.
Incentive Schemes to Enhance Productivity
Productivity Honorarium Scheme
Job Incentive
Quarterly Incentive
Page 32

Reserve Establishment Honorarium

Roll out of Succession Planning Model for identified key positions
Group Incentives for cohesive team working, with a view to enhance
productivity
Training & Development
An integral part of ONGCs employee-centred policies is its thrust on their
knowledge upgradation and development. ONGC Academy, previously known
as Institute of Management Development (IMD), which has an ISO 9001
certification, along with 7 other training institutes, play a key role in keeping
our workforce at pace with global standards.
ONGC Academy is the premier nodal agency responsible for developing the
human resource of ONGC. It also focuses on marketing its HRD expertise in the
field of Exploration & Production of Hydrocarbons. ONGCs Sports Promotion
Board, the Apex body, has a Comprehensive Sports Policy through which top
honours in sports at national and international levels have been achieved.
Transforming The Organization
ONGC has undertaken an organization transformation exercise in which HR has
taken a lead role as a change agent by evolving a communication strategy to
ensure involvement and participation among employees in various work centers.
Exclusive workshops and interactions/brainstorming sessions are organized to
facilitate involvement of employees in this project.
Participative Culture
Policies and policy makers at ONGC have always had the interests of the large
and multi-disciplined workforce at heart and have been aware of the nuances
and significance of cordial Industrial Relations. By enabling workers to
participate in management, they are provided with an Informative, Consultative,
Associative and Administrative forum for interactive participation and for
fostering an innovative culture.
In fact, ONGC has been one of the few organizations where this method has
been implemented. It has had a positive impact on the overall operations since it
has led to enhanced efficiency and productivity and reduced wastages and costs.
A Model Corporate Citizen
Respect and dignity are the key values that underline the relationship ONGC
has with its human assets. Conscious about its responsibility to society ONGC
has evolved guidelines for Socio-Economic Development programmes in areas
around its operations all over the country.
Education
Health Care and Family Welfare
Community Development
Promotion of Sports and Culture
Page 33

Calamity Relief
Development of Infrastructural Facilities
Development of the Socially & Economically Weaker Sections of Society
Benefit and Welfare
Sports
Around 150 sportspersons including 95 international level performers are on the
rolls of ONGC representing your Company in 15 different games.
Corporate Social Responsibility

ONGC is spearheading the United Nations Global Compact - World's

biggest corporate citizenship initiative to bring Industry, UN bodies, NGOs,
Civil societies and corporate on the same platform.

During the year, your Company has undertaken various CSR projects at
its work centres and corporate level.
Women Empowerment
Women employees constitute about 5% of ONGC's workforce. Various
programmes for empowerment and development, including programme on
gender sensitization are organized regularly.

Page 34

Corporate Sustainability
Sustainable Development is the overarching working template in ONGC and
this finds expression in our commitment to continually enhance the triple
bottom line benchmarks of economic, environmental and social performance.
We realized that focussed carbon management efforts were an ideal route to
cover the elements of our business specific sustainable development issues
across the environmental dimension. A critical area of environmental
sustainability is mitigation of global greenhouse gas from operations.
We have six registered CDM projects (a unique feat amongst CPSEs) with a
total saving of 2,09,643 tons of CO2 per year for 10 years. Six more CDM
projects are under registration which will significantly add to the portfolio of
our carbon credits.
It is an organizational objective for us to progressively reduce our carbon
footprint, by working towards reduction in both direct and indirect energy
consumption. We plan to make a comprehensive, organization wide GHG
inventory that covers both direct and indirect energy over the next two to three
years. This would provide the overall carbon footprint of the organization and
help identify mitigation opportunities. A pilot exercise to assess GHG footprint
of our representative operating units has already been completed. This pilot is
now being scaled up into a pan ONGC GHG accounting exercise to assess our
organisational carbon footprint and importantly to undertake a rigorous study
for identification of all feasible GHG mitigation opportunities. The pan ONGC
carbon foot printing exercise is likely to be completed in 2013 and provide us
with a number of viable mitigation projects at hand to work upon.
National Gas Star program
An innovative, interesting climate change mitigation work program for us is the
identification, quantification and reduction of fugitive methane emissions from
our production operations. For this we entered into an MoU with the United
States Environment Protection Agency (USEPA) in August 2007, to undertake
Methane to Market (now GMI) projects in ONGC under its Natural Gas STAR
Page 35

Program to promote development, implementation and reporting of profitable,

voluntary methane emission mitigation activities.
The technical collaboration between the U.S. EPA and the Oil and Natural Gas
Corporation (ONGC) under the MoU, administered under the GMI Partnership,
has built a strong base of knowledge and capacity within ONGC to costeffectively reduce methane emissions now and into the future.
As of now ONGC has reduced approx 10.54 MMSCM since joining the
partnership in 2007 which is equivalent to reducing 150,000 tCO2e from the
atmosphere and we have chalked out an elaborate plan to map all our
production installations for fugitive hydrocarbon emission and make the
installations leak free in the coming few years. As of now we have completed
leak detection & measurement at 56 relevant facilities. Once achieved its
planned objective, it would be a remarkable feat for ONGC and the Oil & gas
Industry at large in India.
Sustainable Water Management
We are also working on a company-wide "Sustainable Water Management
Strategy" aimed at reduction in specific fresh water consumption and reporting
on the water footprint based on internationally recognised standards and
practices. Our action plans include baseline assessment of water use, build
reporting capability in the short term followed by operation specific sustainable
water management plans, location specific SOPs with water recycling, and
reuse targets as appropriate in the medium to long term.
Sustainability Reporting
Ever cognizant of the necessity of being accountable, responsive and
transparent to the wider body of stakeholders we commenced sustainability
reporting based on the globally recognized Global Reporting Initiative (GRIG3) guidelines in 2009-10. We are in the process of releasing our third
consecutive independently assured GRI-G3 based Sustainability Report. We
will continue to bring out externally assured sustainability reports through
which we will strive to improve our overall engagement with stakeholders, be
accountable for our triple bottom line performance and help improve the same.
At ONGC, we firmly believe that sustainable development requires all societal
players to contribute their mite and as the nation's leading corporate citizen, we
have been and will always be contributing our best for sustainable development.

Page 36

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Page 43

Business Development

Business Development & Joint Ventures Group of ONGC (BD&JV) is

organizations link to driving value integration in hydrocarbon molecule beyond
the E&P domain and to identifying and developing futuristic energy portfolio
for the company to ensure sustainability of the organization. The Group is
headed by Director (HR) as the Director-Incharge of Business Development and
Joint Ventures.
BD&JV is involved in continuous scanning to identify synergistic business
opportunities, evaluate viability and implement these opportunities for ONGC
to expand its wings in the entire value chain of hydrocarbons and other domains
of energy.
Dynamic Present
BD&JV, in line with ONGC's pursuit for business growth plans has initiated
several measures for achieving enhanced value chain integration in both
vertically and horizontally integrated hydrocarbon businesses. In this respect,
several projects have been initiated in the field of Petrochemicals, Power, Wind,
Fertilizer, Special Economic Zone.
Keeping in mind the emerging competitive landscape and to harness key
complementary strengths of the respective domain, appropriate collaborative
structures for implementation of these projects has been created by BD&JV,
with several projects conceived for implementation through Joint Venture route.
Following are the major existing projects being developed by BD&JV:

Dahej Special Economic Zone Ltd.

(DSL)

www.dahejsez.com

Mangalore Special Economic Zone

(MSEZ)

www.mangaloresez.com

ONGC Tripura Company Ltd.(OTPC)

www.otpcindia.in

ONGC Petro-additions Ltd. (OPaL)

www.opalindia.in

ONGC Mangalore Petrochemicals Ltd.

:
(OMPL)
Page 44

Future possible
In the conventional domain of hydrocarbon molecule, BD&JV is exploring
feasibility of sourcing LNG on competitive basis to meet long-term natural gas
demand of India and thereby furthering energy security of the country. ONGC is
also planning to invest in Regasification Terminal with total capacity of 5-10
mmtpa as envisaged in Perspective Plan - 2030.
Oil and gas are going to remain mainstay of the company for a long time to
come, however, the fossil fuel, the source of which is finite would be facing
increasingly difficult challenges to explore and exploit. Further, with the
increasing focus of the world community on environment, clean energy is slated
to play increasing role in energy basket of any country.
ONGC has imbibed this emerging reality in its stated mission of providing
value linkage to other sectors of energy business. In order to create growth
opportunities and maximize shareholder value, along with its continued thrust
for exploration & production of hydrocarbon, ONGC intends to play an
important role in development of nonconventional energy resource for the
country. ONGCs resource base is an enabler in creating such growth
opportunities.
ONGC has already taken a concrete step in this direction by setting up a 51 MW
wind farm in Gujarat. BD&JV is now taking the initiative further for significant
addition of capacity in the portfolio. The Group is also actively examining and
pursuing various prospects in the domains of offshore wind, solar, hydro and
nuclear energy sources while engaging with some of the best players in the
respective domains.
A gas based urea fertilizer plant in Tripura is in active consideration by ONGC
for early monetization of new gas discovery in the acreage awarded to ONGC in
NELP III round. The project is envisaged to be set up in Joint Venture mode
with one of a leading fertilizer company of India and Government of Tripura
based on techno-commercial viability.
Significance of BD&JV to the organization
BD&JV is not only expanding the canvas of the organization but is also creating
entirely new planes in energy domain to drive the organization into its future. In
a nutshell, BD&JV is working towards ensuring sustainability of the
organization by being its umbilical cord to its tomorrow.
Considering the ongoing BD&JV driven projects and activities, and projection
of future expansions and new business areas including alternate sources of
energy and downstream gas business, the company envisages that its non E&P
activities shall contribute to 30% of organizations total revenue by the year
2030.

Page 45

Divident Paid
The dividends paid by Company during the last ten fiscal years are presented
below:
Financial
Year

Dividend
as
%age of
Equity

Total
Dividend
Paid
(Rs/lakhs)

Face Value

Dividend
paid
as %age of
PAT

2014-15

190

812771.55

5 each

45.83

2013-14

190

812771.70

5 each

36.78

2012-13

190

812771.60

5 each

38.84

2011-12

195

835160.50

5 each

33.20

2010-11

335

748605.40

10 each(5 each for

final)

39.55

2009-10

330

705827.50

10 each

42.09

2008-09

320

684438.80

10 each

42.44

2007-08

320

684438.80

10 each

40.98

2006-07

310

663049.70

10 each

31.42

2005-06

450

641670.30

10 each

44.46

2004-05

400

570373.6

10 each

43.93

Dividend Payout Ratio is the ratio of the dividend amount (computed

without considering dividend tax) to the net profit in any given fiscal
year.
The amounts paid as dividends in the past are not necessarily indicative
of our dividend policy in the future.
Page 46

Awards and recognitions

ONGC was ranked as the Most Attractive Employer in the Energy sector
in India, in the Randstad Awards 2013.[30]

ONGC was one of 12 winners of the Golden Peacock Award 2014 for
its corporate social responsibility practices,[31] and one of 24 winners of the
Golden Peacock Award 2013 in the occupational safety and
health category.[32]

In April 2013, it was ranked at 155th place in the Forbes Global 2000 for
2012.[33][34]

In 2011, ONGC was ranked 39th among the world's 105 largest listed
companies in 'transparency in corporate reporting' by Transparency
International making it the most transparent company in India.

It was conferred with 'Maharatna' status by the Government of India in

November 2010.[35] The Maharatna status to select PSUs allows more
freedom in decision making.[35][36]

In February 2014, FICCI conferred it with Best Company Promoting

Sports Award.[37]

ONGC wins the "Greentech Excellence Award" for the year 2013 in
Platinum Category
Page 47

ONGC was ranked 82nd among India's most trusted brands according to
the Brand Trust Report 2012, a study conducted by Trust Research Advisory.
In the Brand Trust Report 2013, ONGC was ranked 191st among India's
most trusted brands and subsequently, according to the Brand Trust Report
2014, ONGC was ranked 370th among India's most trusted brands.

Page 48