ONGC

OIL AND NATURAL GAS

CORPORATION

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PERSONAL INFORMATION

NAME : PRATAP HAMIRBHAI ODEDARA

STREAM : S.Y.B.B.A – SEMESTER- 4

UNIVERSITY : BHAKTA KAVI NARSINH MEHTA UNIVERSITY

TOPIC : ONGC (PUBLIC LIMITED COMPANY)

ACADEMIC YEAR : 2022-2023

ROLL NO : 61

GUIDED BY : PROF. CA ankita thanki ma’am

INSTITUTE : DR virambhai rajabhai godhaniya

COLLEGE OF B.B.A. PORBANDAR

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COMPANY DETAILS

NAME : OIL AND NATURAL GAS CORPORATION

LIMITED

ADDRESS : PLOT NO 5A-5B, NELSON MANDELA ROAD,

VASANT KUNJ, NEW DELHI, 110070

PHONE NO : 011-26750998

FAX : 011-26750991 / 26129001

WEBSITE : www.ongcindia.com

E-MAIL ADDRESS : [email protected]

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DECLARATION

The undersigned by Mr. NITIN ODEDARA here by place the

submission of project which is required for the partial fulfillment of
S.Y.B.B.A course.

I had prepared project report on OIL AND NATURAL GAS

CORPORATION LIMITED , which is a public limited company.

I undersigned this project was not previously given or submitted to

any other university.

Date: _____________ Yours faithfully,

Place: PORBANDAR (NITIN B. ODEDARA)

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ACKNOWLEDGEMENT

The more knowledge a person gets, the more he realizes what area he
is interested in. The more knowledge a person gets he will find easy to
complete any of the difficult task in a simple manner.

As I completed my work successfully because of few, I would like to

express my appreciation and gratitude towards all those individuals who
have contributed to accomplish my work by guiding me.

I would like to thank the honorable faculty Prof. Arti Chotai for their
regular guidance in this project. I learned a lot about management and it
enabled me to grow as an individual.

Date: Signature

Place: (NITIN B. ODEDARA)

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PREFACE

According to the syllabus set up for the students of S.Y.B.B.A, the

students were required to prepare a project report on a study of corporate
profile of any large scale public limited company with Indian or foreign
origin.

Here, I got an opportunity to prepare the report of the OIL AND

NATURAL GAS CORPORATION LIMITED. The report includes all the
information regarding the company which is secondary data- based
dissertation.

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INDEX

SR. NO PARTICULARS PAGE NO.

1. GENERAL INFORMATION. 9

2. PRODUCTION INFORMATION. 28

HUMAN RESOURCE MANAGEMENT

3. 33
DEPARTMENT.

4. FINANCIAL INFORMATION. 37

5. OTHER INFORMATION. 45

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1. GENERAL INFORMATION.

1.1 ESTABLISHMENT.

1.2 HISTORY AND DEVELOPMENT.

1.3 PROMOTERS.

1.4 MISSION AND VISSION STATEMENT.

1.5 CORPORATE GOVERNANCE AND BUSINESS ETHICS.

1.6 CSR ACTIVITIES.

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1.1 ESTABLISHMENT

ONGC was set up under the visionary leadership of Pandit Jawahar Lal
Nehru. Pandit Nehru reposed faith in Shri Keshav Dev Malviya who laid the
foundation of ONGC in the form of Oil and Gas division, under Geological Survey
of India, in 1955. A few months later, it was converted into an Oil and Natural Gas
Directorate. The Directorate was converted into Commission and christened Oil &
Natural Gas Commission on 14th August 1956.

"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"
said Pandit JawaharLal Nehru, India's first Prime Minister to Lord Mountbatten, on
ONGC in 1959

In 1994, Oil and Natural Gas Commission was converted in to a

Corporation, and in 1997 it was recognized as one of the Navratnas by the
Government of India. Subsequently, it has been conferred with Maharatna status in
the year 2010

In its 60 years of illustrious journey, ONGC has crossed many a milestone to

realize the energy aspirations of India. The journey of ONGC, over these years, has
been a tale of conviction, courage and commitment. ONGCs’ superlative efforts
have resulted in converting earlier frontier areas into new hydrocarbon provinces.
From a modest beginning, ONGC has grown to be one of the largest E&P
companies in the world in terms of reserves and production.

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The Company’s Evolution can be summarized as under:

 1955 – Inception
 1958 – First Oil in Cambay
 1960 – Oil gas discovery in Gujarat
 1963 – Oil in Assam
 1965 – Concept of ONGC Videsh Operations
 1970 – first Offshore well
 1974 – Mumbai High discovered
 1976 – Bassein Gas field of Mumbai High
 1984 – GAIL formed out of ONGC
 1993 – ONGC a limited company
 1993 – Govt of India divest 2% share
 1994 – 2% share to employees
 1999 – Equity swap ONGC, IOC, GAIL
 2003 – Acquired Mangalore Refineries Petrochemicals Ltd from Birla
Group
 2003 – Ist equity Oil & gas from Sudan / Vietnam
 2004 – Govt of India divests 10%
 2006 – Diversification – ONGC Petro additives Ltd and ONGC Mangalore
Petro Ltd
 2007 – ONGC Energy Centre formed
 2010 – Coal Bed Methane Production
 2013 – Oil at Kazakhistan/Mozambique

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With more than 50 years of Exploration ONGC had discovered 6 of the 7

Producing basins of India. These Oil Producing Basins are;

 1958 – Cambay, Gujarat

 1967 – Rajasthan
 1973 – Assam
 1974 – Mumbai Offshore
 1980 – Krishna Godavari Basin
 1985 – Cauvery Basin
ONGC as an integrated Oil & Gas Corporate has developed in-house capability
in all aspects of exploration and production business i.e., Acquisition, Processing
& Interpretation (API) of Seismic data, drilling, work-over and well stimulation
operations, engineering & construction, production, processing, refining,
transportation, marketing, applied R&D and training, etc.

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1.2 HISTORY AND DEVELOPMENT.

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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.

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.

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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 2 ndFive Year Plan (1956-57
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 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.

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Today, Oil and Natural Gas Corporation Ltd. (ONGC) is, the leader in
Exploration & Production (E&P) activities in India contributing 72 per cent to
India’s total production of crude oil and 48 per cent of natural gas.

ONGC’s quest for energy goes deeper than setting new benchmarks in deep-
water 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 “World’s Most
Admired Companies” and ranked us 3rd in the E&P industry globally on the Platts
Top 250 Rankings 2014.

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1.3 PROMOTERS.

 Oil and Natural Gas Corporation (ONGC) is an Indian

MultinationalCrude Oil and Gas Corporation.

 Its registered office is now at New Delhi, India.

 It is a state-owned enterprise of the Government of India, under the

administrative control of the Ministry of Petroleum and Natural Gas.

 Thus the company does not have their own promoters.

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1.4 MISSION AND VISION STATEMENT.

 Vision

“To be global leader in integrated energy business through sustainable

growth, knowledge excellence and exemplary governance practices.”

 Mission

World Class
 Dedicated to excellence by leveraging competitive advantages in R&D and
technology with involved people.

 Imbibe high standards of business ethics and organizational values.

 Abiding commitment to safety, health and environment to enrich quality of

community life.

 Foster a culture of trust, openness and mutual concern to make working a

stimulating and challenging experience for our people.

 Strive for customer delight through quality products and services.

Integrated In Energy Business

 Focus on domestic and international oil and gas exploration and production
business opportunities.

 Provide value linkages in other sectors of energy business.

 Create growth opportunities and maximize shareholder value.

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Dominant Indian Leadership

 Retain dominant position in Indian petroleum sector and enhance India's
energy availability.

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1.5 CORPORATE GOVERNANCE AND BUSINESS ETHICS.

Corporate Governance Report

Corporate governance implies the way in which a company is managed to
ensure that all of its stakeholders get their fair share in its earnings and assets.
Good corporate governance involves the commitment of a company to run its
businesses in a legal, ethical and transparent manner - a dedication that must come
from the very top and permeate throughout the organization. Good corporate
governance is necessary, not only in order to gain credibility and trust, but also as a
part of strategic management for growth, sustenance and consolidation. Corporate
governance helps to enforce confidence in the stock market and thereby in the
economic environment as a whole, creating an attractive environment for
investment/investors.

1.1 CORPORATE GOVERNANCE PHILOSOPHY OF ONGC

Compliance of laws, rules and regulations in letter and spirit in the interest of
stakeholders. • A sound system of internal control to mitigate risks associated with
achievement of business objectives, in short, medium and long terms. • Mitigation/
Minimization of risks through risk management. • Adherence to ethical standards
for effective management and distribution of wealth and discharge of social
responsibility for sustainable development of stakeholders. • Clearly defined
standards against which performance of responsibilities are measured. • Accuracy
and transparency in disclosures regarding operations, performance, risk and
financial status. • Timely and balanced disclosure of all material information to all
the Stakeholders and clear delineation of shareholders’ rights.
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1.2 Further, the Company has ensured compliance with the objectives of ‘the
principles of Corporate Governance’ stated under the SEBI [Listing Obligations
and Disclosure Requirements] Regulations – 2015 (Listing Regulations), as
brought out below:

A. THE RIGHTS OF SHAREHOLDERS:- The Company has taken all

necessary steps to ensure the Rights of Shareholders and seek approval of the
shareholders as and when required as per the provisions of the Companies Act,
2013 or other applicable legislations. The Company issues press releases
regarding the important events and the same has been submitted to Stock
Exchanges for information of the valued investors. The Annual Report and the
notice of the Annual General Meeting (AGM) explains exhaustively the
procedures governing the AGM, voting procedures etc. Sufficient opportunity is
provided to the shareholders who attend the meeting to raise queries to the Board
of Directors and queries parenting to accounts, companies future prospects etc. are
clarified at the meeting. The Company has a Board level Stakeholders’
Relationship Committee which meets periodically to redress the grievances of
shareholders. The shareholders have the facility of directly approaching the
Company as well as the Registrar and Share Transfer Agent (RTA) to address their
queries/ grievances, which are generally addressed within 7-10 days. Interests of
the minority shareholders are protected and there was no instance of abusive action
by controlling shareholders.

B. TIMELY INFORMATION:- The Company sends notices through email to all

shareholders who have provided their e-mail id with the Company and/ or
depository participants and to all others physically by post for providing timely
information. The Annual Report of the Company is compiled exhaustively to

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provide every conceivable information on the functioning of the Company. The

website of the Company is updated continuously to keep the stakeholders informed
of various developments including Notice of general meeting, Annual Reports,
quarterly results, dividend information etc.

C. EQUITABLE TREATMENT:- All the equity shareholders are treated

equitably, irrespective of their location or quantum of their shareholding. For
effective participation of the Shareholders, Company dispatches the notice for
General meeting to Shareholders well in advance. Further, the E-voting facility is
provided to all Shareholders. Simple and inexpensive procedures are adopted to
cast their vote electronically as well as through poll. In line with the SEBI
(Prohibition of Insider Trading) Regulations, 2015, the Company has put in place a
Code of Internal Procedures and Conduct in dealing with the securities of the
Company. The code is applicable to all the Insiders of the Company, which also
ensures to prevent unauthorised dealing by them in shares of the Company.

D. ROLE OF STAKEHOLDERS IN CORPORATE GOVERNANCE :- The

Business Responsibility Report of the Company brings out in detail the steps being
taken by the Company in this regard. The Company, being a listed Public Sector
Enterprise, conducts and governs itself with Ethics, Transparency and
Accountability as per the law of land and ensures compliance of all the policies,
rules, regulations, guidelines etc. mandated by the Government of India. Effective
Redressal mechanism is available to every stakeholder of the Company, should
there be any infringement of rights. For effective participation in Corporate
Governance, the Company disseminates various announcements from time to time
in newspapers, Company website and other media to the stakeholders concerned.
The Company is also covered under the provisions of Right to Information Act,
2005 and it provides all information to the citizens of India as provided under Act.
The Company has implemented a Whistle Blower Mechanism which gives
opportunity to its employees to raise any concern of ethical or illegal or immoral
activity occurring in the organization to the Audit Committee. The Company has a
Vigilance Department which is headed by an officer on deputation from the
Government of India in the rank of Joint Secretary or above.

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E. DISCLOSURE AND TRANSPARENCY:- The Company ensures timely and

complete dissemination of information on all matters which require to be made
public. The website of the Company and the Annual Report of the Company
contain exhaustive information regarding every aspect of the functioning, financial
health, ownership and governance practices of the Company. All disclosures by
Company are made in line with the formats prescribed by the concerned regulatory
authority in respect of accounting, financial and non-financial matters. The
Company disseminates information through press releases, official website and/or
through the Stock Exchanges and access to all these modes are free for all users.
The Company maintains records of the proceedings of all meetings (Board/
Committees/ General meeting) as per the Secretarial Standards prescribed under
the Companies Act, 2013. The minutes are being maintained explicitly recording
dissenting opinions, if any.

F. RESPONSIBILITIES OF THE BOARD OF DIRECTORS:- The Company

has an exhaustive Book of Delegated Powers (BDP) and other manuals like
Material Management, Works manual etc. as duly approved by the Board, which
spell out the processes and defines the level (Executive Committee / Functional
Director / Key Executive and below) at which any decision is to be made and are
reviewed from time to time to ensure that they are updated and meet the needs of
the organization. The Company has adequate Board Level Committees which
deliberate upon various important matters and advise the Board on the course of
action to be taken. Appointment of directors on the Board of the Company and the
remuneration of functional directors are decided by the Government of India. The
Board members as well as Key Managerial Personnel are required to declare their
interest in all contracts and their shareholdings etc. which is noted by the Board.
The Company ensures that all related party transactions are brought to the notice /
approval of the Audit Committee / Board. Board evaluation is within the domain
of the Government of India.

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CORPORATE GOVERNANCE RECOGNITIONS:- The Company’s

Corporate Governance practices have secured many accolades, some of them are:

• ‘Best Corporate Governance’ and ‘Environmental Excellence & Sustainable

Development’ by the Indian Chamber of Commerce in year 2012. • ‘Golden
Peacock Award’ for Corporate Governance, U.K. in the Years 2005, 2007, 2008,
2009, 2013 and 2016. • The Company has received ‘ICSI National Award for
Excellence in Corporate Governance’ - Certificate of Recognition from the
Institute of Company Secretaries of India for 5 years in a row from 2010 to 2014.

TRAINING AND EVALUATION OF NON-EXECUTIVE BOARD

MEMBERS :- (a) In line with Clause 3.7 of the Guidelines on Corporate
Governance for Central Public Sector Enterprises, 2010, issued by Government of
India, Department of Public Enterprises and requirement of Listing Regulations
with regard to training of Directors, the Company has following training policy for
non-executive Directors: • Induction Training/ familiarization program • External
Training Non-executive Board members are eminent personalities having wide
experience in the field of business, education, industry, commerce and
administration. Their presence on the Board is advantageous and fruitful in
arriving at strategic decisions. The training policy of Directors and the details of
familiarization/ training programmes organized during 2017-18 are available at
web-lissnk: https://www.ongcindia.com/wps/wcm/
connect/en/investors/independent-director/ (b) Policy on Performance Evaluation
of Directors the Company being a Government Company, under the Companies
Act, 2013, the provisions relating to performance evaluation of Directors stand
exempted. The proposal for similar exemption under the Listing Regulations is
under the consideration of SEBI.

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Vision and Objective Statement

Vision
To support responsible and sustainable initiatives, while taking care of the concern
for People, Planet and Profit.

Mission
Continually enhance the triple bottom line benchmarks of economic,
environmental and social performance through committed involvement of the
employees.
To develop social wealth for the communities we engage with.
Promote efficient usage of scarce resources, encourage green energy initiatives and
develop innovative solutions to fulfil the vision by stepping beyond the mandatory
provisions.

Objective
To understand the stakeholder expectations through structured engagement process
and communication strategy and leverage this understanding to develop and
implement outcome based and impact oriented projects in the select areas.
To adopt Environmentally Sustainable business practices in ONGC’s normal
operations with a view to gradually reduce our carbon and water footprint,
innovative management of waste, prudent energy management and biodiversity
conservation.
To envision, execute and manage long enduring projects with a wide geographical
spread and larger social impact with focus on inclusive growth of marginalized and
deprived sections of the society.
To create adequately empowered organizational structure and a system of
management oversight, review and control.
To persuade our business partners for adopting similar practices for CSR and
Sustainable development.

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1.6 CSR Activities

Projects / Programs will be identified and budgets allocated for them through
a process incorporating identification of suitable implementation agencies, need
assessment (where ever required) and clear outlining of desired outcomes.
The CSR projects / programs / initiatives, to be undertaken must fall within the
purview of the Schedule – VII of the Companies Act, 2013 (as modified from time
to time).

All CSR activities will be in the form of projects / programs, which will, as far
as possible, entail the following components:

1. Need Based Assessment / Baseline survey / Study where considered

necessary / feasible;
2. Identification of specific and measurable objectives / goals in identified
sectors and geographies;
3. Formation of the project and preparation of Detailed Project Report (DPR);
4. Identification of time lines – clear specification of start date and end date;
5. Specification of annual financial allocation;
6. Clear identification of beneficiaries (by name where possible);
7. Clear identification of milestones for the complete duration of the Project /
programme;
8. Preparation and signing of agreement with Implementing Agencies;
9. Preparation and implementation of a comprehensive and concurrent
documentation procedure;
10.Robust, periodic review & monitoring;
11.Evaluation & Assessment, preferably both concurrent and final (wherever
possible, by a competent third part);
12.Mandatory Reporting

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Opportunities for complementing / supplementing Government initiatives /

programmes will be explored. However, funds will not be deposited in
Government accounts except where the Act / Rules specify such allocation.

ONGC would assign priority to projects / programmes of medium (1-3 years) or

longer duration (more than 3 years) in order to ensure emphasis on long-term
outcomes / impacts.

ONGC will lay emphasis on the sustainability of its projects / programmes to

ensure they remain relevant and viable even upon disengagement at the end of the
project period.

ONGC will explore possibilities for collaborating / co-operating with other

Corporate / National / Multi- lateral / Bi-lateral / International Agencies in order to
synergise its efforts and increase both financial resources as well as outcomes and
impact.

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2. PRODUCT INFORMATION.

ONGC supplies crude oil, natural gas, and value-added products to major
Indian oil and gas refining and marketing companies. Its primary products crude
oil and natural gas are for the Indian market.

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Product-wise revenue breakup for FY 2016–17 (₹ billion):

Product Revenue

Crude oil 562.38

Gas 168.88

LPG 031.48

Naphtha 076.80

C2-C3 013.44

SKO 003.69

Others 001.59

Adjustments – 32.74

Total 825.52

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Constant efforts by ONGC, one of the leading upstream petroleum

companies in India, on the production front have yielded meaningful results.
Standalone domestic output from the ONGC-operated fields during the year stood
at 22.25 MMT, living up to its title of the largest crude oil producer in India.
During FY’17, declining crude oil production trend was reversed – onshore crude
oil production increased in FY’17 to 5.97 MMT against 5.83 MMT in FY’16. The
increase is expected to continue during the current fiscal.

The Company also recorded a strong year in terms of domestic gas

production, which registered an increase of 4.3% – from 21.18 BCM in FY’16 to
22.09 BCM during FY’17, the first increase in last four years. Gas production
increased in onshore fields by 9% and in offshore fields by 3% over FY’16.

Its strong production growth of 4 to 5 per cent is essential for ONGC to

maintain its leadership in India’s hydrocarbon space and provide the country
hydrocarbon security. With 4 to 5 per cent growth, ONGC aspires to increase its
share in India’s hydrocarbon consumption from the current 22 per cent to 27 per
cent by 2030.

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Production & Processing

The directorate general of hydrocarbons (DGH) in the last few weeks has
issued specific directives to ONGC and Oil India Ltd (OIL) to submit daily field-
wise production report as well as periodic reservoir management reports.

In pursuit of enhancing hydrocarbon ONGC makes constant efforts to induct

state-of-the-art technology for higher precision and real time data acquisition in
reservoir characterization. The recent endeavor is the deployment of wireless
Surface read out technology during the Drill Stem Testing Operation in Well WO-
24#3.

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Transportation

As much as ONGC is widely known today as the largest oil producer, little
known is the fact is that ONGC was the pioneer in gas marketing in independent
India. Barring the Hazira-Bijaipur-Jagdishpur (HBJ) pipeline, the regional gas
pipeline networks in the States of Gujarat, Maharashtra, Assam, Tripura, Andhra
Pradesh and Tamil Nadu, and gas sale contracts with customers were made by
ONGC. However, gas marketing was transferred by ONGC to GAIL in May'92 on
the direction of GOI.

Looking for a larger role in the global offshore production scene, ONGC
wants to participate in transnational hydrocarbons pipeline projects. The company,
which has an understanding with Russia’s Rosneft for oil and gas explorations in
offshore Arctic, now wants to tap opportunities in direct transportation of
hydrocarbons from Russia and Central Asia to India.

State-owned Oil and Natural Gas Corp (ONGC) has over a dozen natural gas
discoveries, which it plans to put them to production in phases. Gas from offshore
is to be brought from where it is to be taken to users through existing gas
transporters.

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4. HUMAN RESOURCE MANAGEMENT

DEPARTMENT.

4.1 HUMAN RESOURCE MANAGEMENT.

4.2 TRAINING AND DEVELOPMENT.

4.3 CORPORATE SOCIAL RESPONSIBILITES.

4.4 WOMEN EMPOWERMENT.

4.1 HUMAN RESOURCE MANAGEMENT.

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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
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engineers, production engineers, engineering & technical service providers,

financial and human resource experts and IT professionals.

4.2 Training & Development

An integral part of ONGC’s employee-centered policies is its thrust on their

knowledge up gradation 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. ONGC’s 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.

4.3 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.

 Corporate Social Responsibility (CSR) and Sustainability Policy in

consonance with the CSR Policy framework enshrined in the section-135 of
Companies Act, 2013 (Act) and in accordance with the Companies (CSR
Policy) Rules, 2014 (Rules) notified by Ministry of Corporate Affairs,
Government of India and Guidelines on Corporate Social Responsibility and

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Sustainability for Central Public Sector Enterprises issued by Department of

Public Enterprises

 During the year, your Company has undertaken various CSR projects at its
work centers and corporate level.

4.4 Women Empowerment

Women employees constitute about 5% of ONGC's workforce. Various

programmers for empowerment and development, including programmed on
gender sensitization are organized regularly.

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5. FINANCIAL CONCERNS

5.1 TOTAL SALES.

5.2 PROFITS.

5.3 DIVIDENDS.

5.4 RATIOS.

5.5 CURRENT STOCKS.

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5.1 TOTAL SALES.

 A total sale refers to the total number of units you sell, regardless of
how much money you bring in or whether or not you make a profit. If
you use the term “sales” to refer to the amount of money you bring in,
your total sales would be your total dollar volume.

5.2 PROFITS.

 Profit describes the financial benefit realized when revenue generated

from a business activity exceeds the expenses, costs, and taxes
involved in sustaining the activity in question. Any profits earned
funnel back to business owners, who choose to either pocket the cash
or reinvest it back into the business. Profit is calculated as total
revenueless total expenses.

5.3 DIVIDENDS.

 A dividend is the distribution of reward from a portion of the

company's earnings and is paid to a class of its shareholders.
Dividends are decided and managed by the company’s board of
directors, though they must be approved by the shareholders through
their voting rights. Dividends can be issued as cash payments, as
shares of stock, or other property, though cash dividends are the most

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common. Along with companies, various mutual funds and exchange

traded funds (ETF) also pay dividends.
5.4 RATIOS.

The ratio is the quantitative relation between two amounts showing the
number of times one value contains or is contained within the other.

 EPS RATIO:-Earnings per share (EPS) ratio measures how many

dollars of net income have been earned by each share of common
stock during a certain time period. It is computed by dividing net
income less preferred dividend by the number of shares of common
stock outstanding during the period. It is a popular measure of overall
profitability of the company and is expressed in dollars.

NET INCOME – PREFFERED DIVIDEND

EPS RATIO = _____________________________________
WEIGHTED AVERAGE NUMBER OF
SHARE OUTSTANDING

 ES RATIO: - The price-earnings ratio, also known as P/E ratio,

P/E, or PER, is the ratio of a company's share (stock) price to the
company's earnings per share. The ratio is used for valuing companies
and to find out whether they a+re overvalued or undervalued.

SHARE PRICE
P/E = _____________________

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EARNING PER SHARE

5.5 CURRENT STOCKS.

 A stock (also known as "shares" or "equity") is a type of security that

signifies proportionate ownership in the issuing corporation. This
entitles the stockholder to that proportion of the corporation's assets
and earnings.

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Financial Performance (Standalone)

Q1 Q1 %
Particulars 2019-20 2018-19 variation FY’19

Gross Revenue (INR Crore) 26,555 27,213 (2.4) 1,09,655

Net Profit (INR Crore) 5,904 6,144 (3.9) 26,716

Crude Oil Price-Nominated

Net Realization (US$/bbl) 66.30 71.49 (7.3) 68.19

Net Realization (INR/bbl) 4,612 4,792 (3.8) 4,766

Crude Oil Price-JV

Realization (US$/bbl) 66.78 67.97 (1.8) 65.97

Realization (INR/bbl) 4,645 4,556 2.0 4,611

Gas Price

Price on GCV basis($/mmbtu) 3.69 3.06 20.6 3.21

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2. Financial Performance (Consolidated)

%
Q1 Q1 variatio
Particulars 2019-20 2018-19 n FY’19

Gross Revenue (INR Crore) 1,09,51 1,10,367 (0.8) 4,53,461

5

Net Profit (INR Crore) 7,043 9,318 (24.4) 33,887

Net Profit (INR Crore) - attributable to 6,694 8,287 (19.2) 30,495

owners

3. Production Performance

Q1 Q1 %
Particulars 2019-20 2018-19 variation FY’19

Crude Oil–ONGC (MMT) 4.792 5.027 (4.7) 19.626

Crude Oil–JVs (MMT) 0.714 0.809 (11.7) 3.120

Condensate (MMT) 0.363 0.380 (4.5) 1.485

Total Crude Oil (MMT) 5.869 6.216 (5.6) 24.231

Gas – ONGC (BCM) 6.148 5.925 3.8 24.747

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Q1 Q1 %
Particulars 2019-20 2018-19 variation FY’19

Gas – JVs (BCM) 0.272 0.268 1.5 1.063

Total Gas (BCM) 6.420 6.193 3.7 25.811

Value Added Products 917 867 5.8 3,641

(KT)

ONGC FINANCIAL DATA SUMMARY

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ONGC Financial Data Summary

 P.E.Ratio : 80.9

 E.P.S Ratio: 1.3 Rs. Per Share

 Dividend : 5.0 Rs. (Per share)

 Total Profit: 134 billion Indian rupees

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6. OTHER INFORMATION.

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 STRENGHTS OF ONGC :-

1) Brand Equity:-

ONGC has invested in building a strong brand portfolio and has ensured to
create an environment that is conducive to the growth of the Indian economy. It
has played a proactive role in India’s development process and has CSR programs
that have worked on several under-developed regions of the country. It was also
the winner of best employer award and has a reputable image in the Indian as well
as foreign market.

2) Technology:-

ONCG ensures quality in its products through automation of activities which

has also helped the company scale up and down its capabilities depending on the
demand conditions. The company has set up EPINET which is alive E&P
information network. ONGC also has 3D reality centers known as the “Third Eye”
for real-time information transformation of offshore and onshore application. The
company has Memorandum of Collaboration (MOC)with seven IITs to undertake
advanced R&D projects.

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3) Focus on Sustainability:-

ONGC has ensured that it protects and cares for the environment and has an
integrated Health, Safety & Environment (HSE) program has proactively managed
the environment. The company aims to reduce the environmental impact it may
cause due to activities like drilling, exploration, and production by investing in
effective solid waste management, environmental monitoring and reporting, and
environmental management systems. The company also has ONGC Natural Gas
STAR Program to promote and effective implementation and reporting of
profitable and voluntary methane emission mitigation activities.

4) Strong Dealer Community:-

ONGC has a strong dealer community by building a culture among the

dealers and distributors by asking them not only to promote the company’s
products but also invest in educating and training the sales team to explain and
create the relationship with the customer and help them extract the maximum
benefits out of the products.

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 WEAKNESSES OF ONGC :-

1) Competition:-

Tata Petrodyne which is a subsidiary company of the TATA brand is

considered to be one of the leading Oil and Gas companies with a turnover of
around $200 billion. Oil India Limited (OIL) is also considered to be the second
highest hydrocarbon E&P (Exploration & Production) company and has more than
11,000 employees with a business turnover of 35 Billion Dollar. Bharat Petroleum
has major refineries in Cochin and Mumbai and was ranked in the Fortune 500
companies. These companies have been investing in various R&D activities and
ONGC has to make strategic decisions to stay ahead of the competition.

2) Cost of production:-

In the fiscal year that ended on March 31, 2018, ONGC logged 4000 crore
loss on natural gas output as the government mandated the price for fuel was less
than the average cost of production. The company claims that there is no more
profitable business in natural gas because the cost of the production is very much
higher than the gas prices

3) Investment in R&D:-

The company’s investment in Research and Development is said to be below

the leading players in the industry. Even though ONGC is spending a good amount

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on the R&D aspect, however, the company has not been able to compete with the
leading players in the industry when it comes to innovation.

 OPPORTUNITIES FOR ONGC :-

1) Increasing Fuel Prices:-

When the oil prices go up that means that the prices of the crude oil go up
and for companies like ONGC which are upstream companies, crude oil is the final
product and thus crude oil can be sold at higher prices.

The government announced a 10% higher price for natural gas at $ 3.36 per
million British thermal unit for 6 months this year that helped the company get
significant profit which would help the company break even after the new gas
price.

2) Research:-

The company established Gas Hydrate Research &Technology Center

(GHRTC). This center contributes to Government of India’s plan to commercialize
Gas Hydrates as an energy resource. This center by ONGC has been successful in
identifying the gas hydrate reserves in the deep sea of the coasts of India and fresh
reserves are estimated to be 134 trillion cubic feet. Research activities conducted
like this will help the company find better opportunities.

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 THREATS FOR ONGC :-

1) Government regulations:-

There are always threats on the profit of the company by the changing
government regulations. There have been instances where the government has
asked ONGC to help cut petrol and diesel prices. There are instances where it was
reported that the government had asked the company to absorb the rise of crude
prices at Rs 1 per liter. These regulations by the government directly affect the
profits of ONGC.

2) Electric Vehicles:-

According to International Energy Agency, more efficient fuel technology

and electric vehicles are expected to cut transportation demand for oil by 2040 but
it is also said that the world will face a supply crunch without good investment in
new production. The efficiency of EV and also ride sharing trends is said to reduce
oil consumptions and the demand for oil will grow slower in the next decade.

3) Fluctuating crude oil prices:-

The depreciation of rupee even though in small amount is said to be adding

to the rising cost of the oil. The international crude prices jumped 45% in terms of

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dollar and the spike was 49% in the rupee. The increment in oil prices will lead to
inflation pressures and will force the RBI to hike the interest rates.

BIBLIOGRAPHY.

 The information as given above is collected from the following sites:-

1) www.google.com
2) www.ongcindia.com
3) [email protected]

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