Oil And Natural Gas

Corporation Limited

September 2016
 Presentation overview

1 Company Overview
2 Performance Highlights
3 Key Performance Indicators
4 Financial Performance
5 Segment Highlights

6 Policy Developments

2
Presentation overview

Company Overview

3
 ONGC is the flagship
National Oil Company of India, a
Maharatna , with interests in
E&P, Refining, LNG, Power,
Petrochemicals & New sources of
energy.

Majority shareholder: Govt. of India (68.93%)

4
 ONGC - Evolution
In 1955, GoI decided to
1955 Oil and Gas Division, GSI*
develop Oil and Natural Gas
resources in various regions 1955 Oil and Gas Directorate, GoI
of the country as a part of 1956 Oil & Natural Gas Commission
Public Sector Development.
1959 Autonomous Statutory Body

With this objective, Oil and

1994 Public Limited Company
Natural Gas division was set-
1997 A Navaratna PSU
up in O t 1955 under
Geological Survey of India. 2010 A Maharatna PSU

*Oil & Natural Gas division set-up in O t 1955 under Geological Survey of India to explore & develop hydrocarbon resources. 5
 Promoted
Petronet LNG Exploring for CBM,
Refine > Ltd. UCG, Shale gas &
300,000 bpd 12.5% equity Alternates
of O+OEG

Petrochemicals,
Power,

Produce* ~
1.20 mbpd of Extract ~ 3
O+OEG MMTPA of
VAP

* Domestic
6 & Overseas Assets
 Seismic data Acquisition, Processing
& Interpretation (API)
Well drilling & Work-over operations

Well testing & stimulation

ONGC has in-house Production & Processing

capability in entire
facets of upstream Oil Reservoir Management
& Gas business
Applied R&D and Training

Engineering & Construction

Transportation, etc.

7
 Processing Infrastructure

Hazira, Gujarat
Handling Capacity: 42 MMSCMD Sour Gas
Products: LPG, ARN, SKO, ATF, Propane

Uran, Maharashtra

Handling Capacity: 20 MMTPA Oil & 16 MMSCMD Gas

HSD Products: LPG, C2-C3, LAN
C2-C3 Plant, Gujarat

Handling Capacity: 4.9 MMTPA of LNG

Products: Ethane (C2), Propane (C3) and Butane (C4)
LPG Liquefied Petroleum Gas
SKO Superior Kerosene Oil Ankleshwar and Gandhar, Gujarat
C2-C3 Ethane- Propane
Handling Capacity: 0.1 MMTPA Oil & 1 MMSCMD Gas
HSD High Speed Diesel Products: LPG, Naphtha
LSHS Low Sulphur Heavy Stock
ATF Aviation Turbine Fuel Tatipaka, Andhra Pradesh
LAN Low Aromatic Naphtha Handling Capacity: 0.1 MMTPA Oil
ARN Aromatic Rich Naphtha Products: Naphtha, SKO, HSD, Fuel Oil
MMTPA- Million Tonnes Per Annum
MMSCMD-Million Standard Cubic Meter per day
8
 Institutes

G&G
KDMIPE Basin Modeling
Management
Development
ONGCA
Seismic Data
GEOPIC Processing
Technology hub
Well Logging Dehradun
CEWELL Drilling
Vadodara IDT Technology
Jorhat
Oil field Ahmedabad
equipment SMP Panvel Geo-microbial
maintenance INBIGS prospecting
Goa
Reservoir Geotechnical &
Management IRS IEOT Structural Enng.

Health, Safety & IPSHEM IOGPT Production

Environment Engineering

9
 E&P Infrastructure
Offshore Installation Onshore Installation
254 250

Process Complex Pipelines ( Approx.)

11 23,100 Km

Well Head Platform OSVs/ MSVs

209 11+58*

FPSO : 2* Well Stimulation

Vessel: 1+1*
Plants : 3 Seismic Crews
20+3 (VSP)
Institutes / Centers
of Excellence : 11 Drilling Rigs
70+35*
Diversified Talent Work-over Rigs
33,820 56+22*

Well Stimulation Well Logging units * Charter-hired

As on 01.04.2016 Units: 132 28+63*
 ONGC : Production Centers
Production FY 2015-16*: Oil - 22.36 MMT; Gas - 21.18 BCM

Jodhpur Domestic Producing Areas

Gas: 0.005 BCM
Mehsana
Oil: 2.13 MMT
Gas: 0.20 BCM Bokaro Assam
Gas: 0.0015 BCM Oil: 0.96 MMT
Ahmedabad
Gas: 0.40 BCM
Oil: 1.30 MMT
Gas: 0.14 BCM
Tripura
Ankleshwar
Gas: 1.33 BCM
Oil: 0.74 MMT
Cond: 0.003 MMT
Gas: 1.05 BCM
Rajahmundry
Cambay
Oil: 0.295 MMT
Oil: 0.14 MMT
Gas: 0.62 BCM
Gas: 0.009 BCM
Eastern Offshore
Mumbai Offshore
Oil: 0.027 MMT
Oil: 16.52 MMT
Gas: 0.212 BCM
Gas: 16.19 BCM Karaikal
Oil: 0.248 MMT
* ONGC Operated Nomination Blocks Gas: 1.01 BCM
 ONGC Group
E&P
domestic
operations

Subsidiaries Joint Ventures Associates

Overseas E&P Refinery Petrochemicals Power

LNG
(100%)
(50%)

(71.62%) (49.36%)
Services
(12.5%)

(ONGC: 49%, MRPL: 51%) Logistics

(50%)

MRPL: Mangalore Refinery & Petrochemicals Ltd.

OPaL: ONGC Petro-additions Ltd.
Pipeline SEZ (49%)
OMPL: ONGC Managlore Petrochemicals Ltd.
OTPC: ONGC Tripura Power Company Ltd.
OTBL: ONGC TERI Biotech Ltd.
MSEZ: Mangalore SEZ Ltd.
DSL: Dahej SEZ Ltd. (28.77%)
PLL: Petronet LNG Ltd.
(26%) (50%)
PHL: Pawan Hans Ltd.

12
 ONGC Videsh

 ONGC Videsh, a wholly owned subsidiary of ONGC

 Overseas investment
US$ 24.8 billion till FY
 2P Reserves of 612 MMTOE
 FY : Oil & Gas production
8.92 MMTOE

1313
 ONGC Videsh: Global footprint
36 projects in Discovered/
Producing: 13 Exploration: 17 Pipeline: 2
17 countries Develop: 4
CIS

Azerbaijan 1

Russia 2

Kazakhstan 1 South East Asia

Vietnam 1 1

Myanmar 2 2

Bangladesh 2

Asia-Pacific
Middle East N. Zealand 1

Syria 1 1
Africa
Latin America
Libya 1 Iraq 1
Venezuela 1 1
Sudan 1
Colombia 7 1
South Sudan 2
Brazil 1 1
Mozambique 1
14
 ONGC Videsh: Overseas Production
 FY’16 Production 66.91 mmboe (against 66.56 mmboe in
FY’15)
Incremental production from BC-10 (Brazil), Blocks A-1 & A-3
(Myanmar) and Shakhalin-1 (Russia)

65.65 62.70 66.56 66.91 Country wise production

54.48 54.48
19.04 25.06 25.58 Russia Syria
21.53 28% 0%
21.92
Azerbaijan
11%
Myanmar
Continuing
Brazil 7%
46.61 problem
41.18 41.50 41.33 10% Sudan
32.56 8%
Venezuela
Colombia
9% S.Sudan
7%
Vietnam 0%
FY'12 FY'13 FY'14 FY'15 FY'16 20%
Oil (mmboe)MMT) Gas (mmboe)

15
 Mangalore Refinery Petrochemicals Ltd.(MRPL)

FY’15: Highest-ever Throughput of 301,027 bpd

15 MMTPA (308,219 bpd)

state-of-art Refinery
Now a Schedule-A Company
• Capacity enhanced from 9.69 MMT
to 15 MMTPA
• MRPL producing EURO IV grade of
petrol & diesel and is equipped for
commercial production of EURO V
• Plan for opening of 100 retail
outlets

16
 ONGC Mangalore Petrochemicals Ltd. (OMPL)

Aromatic Petrochemical Complex producing Paraxylene & Benzene

 Equity Structure*: MRPL-51%; ONGC-49%

 Now a subsidiary of MRPL – synergy between MRPL & OMPL
 Project cost: US$ 1,273 million

Feedstock@ Products

Naphtha & Aromatic Para-xylene: 914,000 TPA

streams Benzene: 283,000 TPA

 Benzene & Para-xylene production started – October 2014

* wef 28th Feb 2015 @ MRPL 17

 ONGC Petro Additions Ltd. (OPaL)

1.1 MMTPA Ethylene Cracker & Polymer plant

 Project cost: US$ 5,000 million

 Project status: Commissioning in progress

Feedstock@ Products
HDPE/LLDPE: 1,020 KTPA
C2: 0.535 MMTPA Poly-propylene: 340 KTPA
C3: 0.271 MMTPA Benzene: 150 KTPA
C4: 0.167 MMTPA Butadiene: 115 KTPA
Naphtha*: 1.5 MMTPA Pyrolysis Gasoline: 135 KTPA
Carbon Black Feed Stock: KTPA

* Hazira (1.2 MMTPA) & Uran (0.3 MMTPA) @ From C2-C3 Plant 18
 ONGC Tripura Power Company Ltd. (OTPC)

 726.6 MW (363.3x2) Combined Cycle Gas Turbine (CCGT)

thermal power plant
 1st U it operatio al si e Ja .
 2nd u it dedi ated to atio y Ho le Pri e Mi ister of I dia i De .

Equity holding: ONGC (50%), Govt. of

Tripura (0.5%), IL&FS (26%) & IDFC (23.5%)

Project cost: US$ 755 million

(Debt/Equity=75:25)

Biggest project in NE region considering

investment in E&P, gas & power transmission
IL&FS: IL&FS Energy Development Company Limited
IDFC: India Infrastructure Fund-II through IDFC
Alternatives Ltd s

19
 Shareholding Pattern

Insurance
Companies
ONGC Share on BSE
10.70%
400

IOC 350
7.69%
GAIL 300
2.40%
FIIs 250
5.38%
Govt Indian 200
68.93% FI/MF/Banks
1.11% 150

Employees 100
0.06%
Individuals
50
1.96%

Others 0

06.Jän.16
26.Jän.16
11.Mai.15
31.Mai.15

06.Mär.16
26.Mär.16

05.Mai.16
25.Mai.16
01.Apr.15
21.Apr.15

18.Okt.15

15.Apr.16
10.Jul.15
30.Jul.15
19.Aug.15
08.Sep.15
28.Sep.15

07.Nov.15
27.Nov.15

15.Feb.16

04.Jul.16
24.Jul.16
13.Aug.16
02.Sep.16
17.Dez.15
20.Jun.15

14.Jun.16
1.77%

No. of shares: No. of shareholders*: Market cap*:

8.555 billion 586,793 (FIIs : 543) US$ 30.3 billion

* As on 31.08.2016 20
 ONGC Board
Chairman & Managing Director
Shri Dinesh K. Sarraf

Functional Director Government Independent

(Full Time) Nominees Directors
Director (T&FS) Shri A P Sawhney
Shri K M Padmanabhan
Shri Shashi Shanker Addl. Secretary, MoP&NG
Director (Offshore) Shri Amar Nath,
Shri Ajai Malhotra
Shri T K Sengupta Joint Secretary, MoP&NG
Director (HR)
Shri D D Misra Prof S.B. Kedare

Director (Exploration)
Shri A K Dwivedi

Director (Onshore)
Shri V P Mahawar

Director (Finance)
A.K. Srinivasan

As per existing guidelines of Security & Exchange Board of India (SEBI) six more
independent Directors required on ONGC Board

21
Corporate Governance in ONGC

Corporate Governance is the

basis for decision-making and
control processes which
comprises of responsible,
value-based management &
monitoring, focused on long
term success, goal
orientation, transparency and
safeguarding the interest of
all Stakeholders.

22
 Corporate Governance in ONGC
 Constitution of 15 Board Level Committees to discuss threadbare
most of the agenda items before being recommended to the
Board for an informed decision

1. Audit & Ethics Committee

2. Nomination & Remuneration 9. CSR & Sustainability Development
Committee
10. COD for issue of Duplicate Shares
3. “takeholders ‘elatio ship
Committee 11. Risk Management Committee
4. HR Management Committee 12. R&D Committee
5. Project Appraisal Committee 13. Project Monitoring Committee
6. HSE Committee 14. COD for Review of Operations
7. Financial Management Committee 15. COD for Review of JV & Subsidiaries
8. Committee on Dispute Resolution

23
 Corporate Governance in ONGC
 Robust Internal Control Mechanism to monitor critical
businesses, functions and operations

 Standardized procedures and guidelines for all facets of activities to ensure

that best practices are adopted even up to ground level.
 Dedicated Performance Management & Benchmarking Group (PMBG) to
monitor performance of each business unit against Key Performance
Indicators (KPIs) as defined in Performance Contracts
 E-Grievance handling mechanism for quick redressal of grievances of various
stakeholders
 Internal & External audits to ensure compliance to various industry norms &
benchmarks
 Dedicated Internal Audit group
 Third Party audit of all o shore & offshore i stallatio s y age ies like Oil
I dustry “afety Dire torate OI“D

24
Corporate Governance in ONGC

Enabling IT system across the organization

across the Supply Chain Management (SCM)

– All transactions on SAP R/3 Platform

– Purchase to Sales
– In-built VAT/ CENVAT/ Service Tax
– E-procurement with Reverse Auction
– Vendor payments through NEFT
– Invoice monitoring system
– IT solutions to monitor
• Internal Audit observations
• RTI applications
• Vigilance Cases
 Corporate Governance in ONGC

Tendering: Tender website

• All NITs > Rs. 0.5 million uploaded

• Vendors can download bid documents

• Facilitates linkage to e-procurement

portal

• All tenders (>Rs. 1 million) available

on the website

26
 Corporate Governance in ONGC

Integrity Pact (IP) ONGC the first Indian Corporate to sign

MoU with TI I dia Ltd i Apr’0

• Adopted from a presentation organized by CVC

in Bangalore in May 2005

• The concept uploaded on Tender website

– Noted comments from major Vendors

• Draft was vetted by the then Solicitor General

of India

IP is de ised y • Concept implemented across the organization

Transparency International i Aug’0

27
Corporate Governance in ONGC

…. o e step beyo d

Ve dors Meet

I estors Meet

MM Meet*
Presentation overview

Performance Highlights

29
 50+ Years of Exploration
ONGC discovered
6 out of the 7 producing Basins of India

1889: Assam Shelf *

1967: Rajasthan Basin

1973: A&AA FB
1958: Cambay Basin
1980: KG Basin
1974: Mumbai
Offshore
1985: Cauvery
Basin

* By AR & T Co. - Assam Railways and Trading Company Ltd.

30 30
 ONGC Group: Reserves (as on 1st April 2016)

 2P Reserves = 1,693.31 MMToe (ONGC: 67%; OVL: 32%)

1P 2P 3P
2,022
Reserves (2P)
1,693
Mtoe Oil Gas Total (Mtoe)

1,366
ONGC 472.12 602.18 1074.30
1,074
PSC JV 15.09 7.79 22.88 912

691 633
OVL 244.58 351.55 596.13 596

Total 731.79 961.52 1693.31

202
19 23 24

ONGC JV OVL Total

31
ONGC Group: O+OEG Produ tio , FY

61.18 57.38
58.73 59.20 58.34
2.54
2.19 2.92 2.87 3.34
1.79 1.57 3.41
1.50 1.35

23.32
23.55 23.28 22.03 21.18

6.21 5.49 5.53 5.51

4.34
3.21 3.57 3.75 3.68 3.56

23.71 22.56 22.25 22.27 22.37

FY'12 FY'13 FY'14 FY'15 FY'16

ONGC (Oil) PSC-JV (Oil) OVL (Oil) ONGC (Gas) PSC-JV (Gas) OVL (Gas)

32
 ONGC Group: Fi a ials, FY

 Revenue & Net Profit affected in lower oil price regime

179,474 183,912
166,389 ` Crore

142,927 FY'15 FY'16

18,334
14,124

Turnover Net Profit Networth

33
 ONGC: Acclaimed for Transparency

ONGC ranked 26th a o g glo al o pa ies y Tra spare y

I ter atio al for ethi al & tra spare t usi ess pra ti es

ONGC – one of the only two companies and the only

PSU to feature in the highly prestigious list

ONGC ranks above several oil majors and NOCs

The assessment focused on three parameters - reporting on anti-corruption programs,

organizational transparency and country by country reporting.
Integrity Pact was signed with Transparency India Ltd. on 1st July
A first by any Indian company
Source: 'Tra spare y i orporate reporti g: Assessi g the orld's largest o pa ies ‘eport , Tra spare y I ter atio al

34
 Sustainability
ONGC registers one of the largest CDM project in world on OTPC for an
annual CER of 1.6 m with UNFCCC.
12 projects registered with UNFCC, highest by single entity. Issued 2,69,029
CERs (Certified Emission Reductions).

ONGC ranked 217 in Newsweek Green

Rankings 2014 Global 500 list (ranked 386th in
the previous edition of the rankings)
2014

UNFCCC (United Nations Framework Convention on Climate Change)

35
 Globally acclaimed
October, 2015

 # 3 E&P Company in the World

 # 17 Energy Company in the World
(Based on Asset, Revenue, Profit & ROCE)

Global 2000 list 2015

 # 220 in the Forbes Global 2000 list of world's
biggest public companies. (Based on Sales, Profit,
Assets, Market Value).
‘Randstad Award’
Fortu e World’s ost for Most Attractive
Admired Companies 2014 employer in
 Among only two companies from India in the list Energy Sector in
 Only PSU to figure in the list India, 2014
(Based on the survey of the identified respondents)

36
Presentation overview

Key Operating Indicators

37
 Efficiency Parameters

Commercial Speed
(metrage drilled/ rig months)

1,306

RRR* (2P)
1,233
1.47 1.51
1.38 1,180
1.25 1.24 1,159 1,150

FY'12 FY'13 FY'14 FY'15 FY'16

FY'12 FY'13 FY'14 FY'15 FY'16

* RRR – Reserve Replacement Ratio

RRR More than 1 for last 10 years.

38
 Technology Induction

The major technological thrust is on improving health and recovery

from mature reservoirs which necessitates induction of state of art
technologies.

Implemented horizontal, horizontal laterals, Ultra short radius drilling,

ERD and horizontal multilateral wells. Used SOBM, Non damaging
fluids, Under Balanced Drilling, etc. to overcome the drilling challenges.

Implemented improved Artificial lift systems like Dual ESPs, VFDs in

PCPs and SRPs. Intelligent completions, Multi-sand gravel pack
completions, etc. Use of Paraffin Degradable Bacteria to combat wax
problem. Hydrofracturing in HP/HT wells.

Successfully explored and drilled in Deep and Ultra-deep waters using latest
technology. Sub-sea well completions in Shallow and Deep waters.

39
Presentation overview

Financial Performance

40
 ONGC Q FY Fi a ials
Revenue (from operations) PAT

22628 (` Crore)

17784

5368
4233

Q1 FY17 Q1 FY16

41
 ONGC FY16 Financials
Revenue (from operations) PAT
83094
78565 (` Crore)

16004 17733

FY16 FY15

42
Presentation overview

Segment Highlights

43
 Proje ts o pleted duri g FY
Project Cost
Sl No Project Name
` Crore
1 Development of B-193 Cluster Fields 5633
2 Development of Cluster-7 Fields 6639
3 Pipeline Replacement Project-3, Western Offshore 1417
4 C2-C3 plant Dahej 976
5 Integrated Development of G-1 and GS-15 fields 3955
6 Construction of 23 Immediate Support Vessels 269

7 Upgradation of Konaban GCS & Pipeline Grid Project 253

8 Heera and South Heera Redev. Ph-II 5608
9 102 MW Wind Power Project 678
Development of Lower Pays in NBP-14 Block of NBP (D-1)
10 429
Field
11 Development of WO-16 Cluster Fields 2523
Total 28,380

44
 Ne Proje ts appro ed i FY
Project Cost
Sl. No Name of Projects
` Crore
1 Redevelopment of Gamij field, Ahmedabad 1,881

Neelam Redev plan(NRP) for exploiting Bassin and Mukta

2 2,819
play-Neelam field*

Field Development of NELP Block CY ONN-2003/1

3 4,954
Nagyalanka-KG Onland

Field development of Madanam Nelp-IV Block CY ONN-

4 390
2002/2: (60% ONGC share)

5 Development Plan of Bokaro Block (80% ONGC share) 659

6 Life extension of 48 well Platforms (EDC-30.04.18) 3,191

7 FDP for the development of KG-DWN-98/2 34,012

Total 47,906

45
Presentation overview

Policy Developments

46
 HELP - 2016
 Hydrocarbon Exploration & Licensing Policy (HELP)
announced in 2016 will simplify the policy

 Uniform license for exploration & production of

all forms of hydrocarbon,
 An open acreage policy,
 Easy to administer revenue sharing model and
 marketing and pricing freedom for the crude oil
and natural gas produced.

The uniform licence will enable the contractor to explore conventional as well as
unconventional oil and gas resources including CBM, shale gas/oil, tight gas and
gas hydrates under a single license. The concept of Open Acreage Policy will
enable E&P companies choose the blocks from the designated area.
47
 Gas price revision
 After promising a price premium for gas produced from discoveries in
high pressure-high temperature, deepwater and ultra deepwater
areas in October 2014, the Indian Government outlined how such a
pricing mechanism will be structured.
 On March 10, 2016, the GOI approved - proposal to grant certain
marketing freedoms, including pricing freedom for gas produced
from high pressure-high temperature, deepwater and ultra
deepwater areas. This pricing freedom would be capped by a ceiling
price, calculated (in US$/mmBtu) as the lowest of:
o Fuel oil landed import price;
o Weighted average landed import price of alternative fuels (0.3 x
price of coal + 0.4 x price of fuel oil + 0.3 x price of naphtha); and
o LNG landed import price.
o Gas Price Ceiling, as per the formula, for the period April-
September 2016 is US$ 6.61/mmBtu

48
 Other Policy Measures
 Discovered Small Field (DSF) Round: In September 2015, the
Government announced the policy for development of marginal
fields on the basis of which the Discovered Small Field bid round was
launched in May 2016. Some of the key aspects of this new small
field package are uniform license for mining of all hydrocarbons, no
restriction of exploration activity during contract period, freedom to
price oil and gas so produced in the domestic markets.

 Positive steps taken to reduce the subsidy burden on upstream

companies by limiting under-recoveries for Oil Marketing Companies:
 Decontrol of HSD
 Capping of LPG
 DBT for LPG and SKO
 Phased increments in SKO and LPG prices

49
Thank You