GRI G3.

0 Compliant
A+ Level Report

Sustainability
Report
2012-13

A NEW PARADIGM IN SUSTAINABLE LEADERSHIP

 About our Company 2
C O N T E N T S

Organizational Profile 4
About this Report 9
Awards and Accolades 10
From the Chairman & Managing Director’s Desk 12
Our Governance Framework 14
Stakeholder Engagement 20
Sustainability Challenges & Responses 24
Management Approach & Performance-Economic 32
Management Approach & Performance-Environment 42
Management Approach & Performance-Social 58
GRI Index - Oil & Gas Sector Supplement 70
Assurance Statement 82
Our Performance 84

01
ABOUT
OUR COMPANY
Oil and Natural Gas Corporation Limited (ONGC) is a National Oil Company of India focused
on Exploration and Production (E&P) of oil and gas and is a frontrunner at the global level as
well. The company has been working relentlessly for the past 57 years towards realising the
vision of energy independent India. The journey over these years has been a tale of
conviction, courage and commitment. 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 through
superlative efforts that have resulted in conversion of earlier frontier areas into new
hydrocarbon provinces1.

To augment our conventional hydrocarbon reserves, we are developing newer sources of

hydrocarbons: shale gas, coal-bed methane (CBM) and underground coal gasification
(UCG). With our operations that spans across the entire hydrocarbon value chain including
Refining, Liquefied Natural Gas (LNG), Power, Petrochemicals and Fertilizer, we have single-
handedly scripted the country's hydrocarbon saga.

OUR VISION
To be a global leader in integrated energy business through sustainable growth, knowledge
excellence and exemplary governance practices.

1
ONGC’s historical perspective can be viewed at http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Company/History/

Back to Contents
OUR MISSION Integrated in Energy Business

World Class • Focus on domestic and international oil and gas exploration and
production business opportunities.
• Dedicated to excellence by leveraging competitive advantages in
• Provide value linkages in other sectors of energy business.
R&D and technology with involved people.
• Create growth opportunities and maximize shareholder value.
• Imbibe high standards of business ethics and organizational values.

• Abiding commitment to safety, health and environment to enrich Dominant Indian Leadership
quality of community life.
• Retain dominant position in Indian petroleum
• Foster a culture of trust, openness and mutual concern to make sector and enhance India's energy
working a stimulating and challenging experience for our people. availability.

• Strive for customer delight through quality products and services.

02/03
ORGANISATIONAL
PROFILE
Organisational Overview
ONGC is Indian National Oil Company and the most valuable Public
Sector Enterprise with market capitalization of over INR 2300
billion. In FY13, our net revenue is INR 833.09 billion with total asset
of INR 1781.27 billion. We have not availed any loans-secured or
unsecured during FY13. We have 32988 permanent employees as
on 31st March 2013.
ONGC is the leader in E&P activities in India. In FY13, ONGC has
contributed 69% of India’s total production of crude oil and 62% of
natural gas. In FY13, we have produced 22.56 MMT of crude oil and
23.55 BCM of natural gas (26.12 MMT of crude oil and 25.33 BCM of
natural gas including our share in domestic joint ventures). We
established 8.78 billion tons (88% of total) of in-place hydrocarbon
reserves in the country. In fact, six out of seven producing basins in
India have been discovered by us. We produced 1.55 billion tons (83%
of total) of oil and oil equivalent (BTOE) since inception and produce
more than 1.20 million barrels of oil and oil equivalent per day (from
our domestic and overseas assets). We accreted 265.65 MTOE of In-
place volume of hydrocarbon with 84.84 MTOE ultimate reserves in
FY13 ( in domestic basins operated by us). We also produced 3.07
million tonnes of value added products including Liquefied Petroleum
Gas (LPG), Ethane/Propane (C2-C3), Naphtha, Motor Spirit (MS),
High Speed Diesel (HSD), Aviation Turbine Fuel (ATF), and Superior
Kerosene Oil (SKO) in FY13. We have also plans for foray in fertilizer
business in FY14.
We supply crude oil to public sector Oil Marketing Companies
(OMCs) mainly Indian Oil Corporation Limited, Bharat Petroleum
Corporation Limited, Hindustan Petroleum Corporation Limited and
also to our subsidiary Mangalore Refinery and Petrochemicals
Limited (MRPL). We supply produced natural gas mainly through
Gas Authority of India Limited; however, we directly market some
gas. We market value added products to Indian consumers and
internally consume products like HSD and ATF; however, in case of
off-take constraints by the domestic users some products like
Naphtha, HSD and ATF are also exported.
Back to Contents
Shareholders
The Government of India is our single largest shareholder with a stake of 69.23%. In FY13, the share of foreign institutional investors in ONGC
increased to 6.27% from 5.35% in FY12. On the other hand, the share of Indian banks, financial institutions and insurance companies declined to
9.69% from 10.05% in FY12.

Table 1: Shareholding Pattern

Shareholder* Percentage of Shareholding Number of Shares

President of India 69.23 5,92,25,46,522
Corporate Bodies 11.92 1,01,99,48,386
Indian Oil Corporation Limited 7.69 65,79,23,428
GAIL (India) Limited 2.4 20,56,01,068
Others 1.83 15,64,23,890
Banks, Financial Institutions and Insurance Companies 9.69 82,86,65,369
Life Insurance Corporation of India 7.75 66,28,45,162
Others 1.94 16,58,20,207
Foreign Institutional Investors 6.27 53,67,22,527
Public 1.65 14,10,85,805
Mutual Funds and UTI 1.13 9,68,60,594
NRIs and Qualified Foreign Investor 0.04 35,67,729
Employees 0.07 60,93,188
Total 100 8,55,54,90,120
*As on 31 March 2013
st

04/05
Our Subsidiaries and Joint Ventures 2
The other subsidiary, MRPL, a “Mini Ratna” has around 7% of
ONGC has two subsidiaries – ONGC Videsh Limited (OVL) and
India’s total refining capacity and is a state of the art refinery in India
Mangalore Refinery and Petrochemicals Limited (MRPL). OVL, our
with two units of Hydrocracking and Catalytic Conversions (CCR)
overseas arm to source equity oil and gas for energy security of the
to produce Premium Diesel and Unleaded Petrol of High
country, is a wholly owned subsidiary of ONGC and is currently operating
Octane, respectively.
in 16 countries on 32 projects with cumulative investment worth over USD
17 billion. Over the years OVL has increased its global presence Apart from the two subsidiaries, ONGC has 9 Joint ventures also, as
significantly and has emerged as the biggest Indian multinational. listed below:

Table 2: Our Subsidiaries and Joint Ventures

Company ONGC Stake (%)
Subsidiaries
ONGC Videsh Limited (OVL) 100
Mangalore Refinery and Petrochemicals Limited (MRPL) 71.62
Joint Ventures
ONGC Tripura Power Company Limited (OTPC) 50
ONGC TERI Biotech Limited (OTBL) 49
Pawan Hans Limited (PHL) 49
ONGC Mangalore Petrochemicals Limited (OMPL) 49 (shared with MRPL)
Petronet MHB Limited (PMHBL) 28.766
ONGC Petro-additions Limited (OPaL) 26
Mangalore Special Economic Zone Limited (MSEZ) 26
Dahej SEZ Limited (DSL) 23
Petronet LNG Limited (PLL) 12.5

Our investment in the subsidiaries and joint ventures is carefully structured to ensure our presence in the entire hydrocarbon value-chain.

E&P domestic
operations

Subsidiaries Joint Ventures Associates

Overseas E&P Refinery Petrochemicals Power LNG

(100%)
(50%)

(71.62%) (26%) (49*%) Services

(12.5%)
Joint Ventures Subsidiaries * ONGC: 46%, MRPL: 3%
Logistics
(49.98%) (100%) ONGC Nile Ganga B.V,
Netherlands (49%)

ONGC-Mittal Energy Ltd., (100%) ONGC Amazon Alaknanda

Cyprus Pipeline SEZ
Ltd., Bermuda
(49%)
(100%)
Imperial Energy Ltd., Cyprus

(28.766%)
(100%)
Carabobo One AB, Sweden
(26%) (23%)

(100%) ONGC Narmada Ltd., Nigeria

(100%) ONGC (BTC) Ltd., Azerbaijan

2
Information on our subsidiaries and joint ventures can be accessed from ONGC Annual Report FY13 - http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf
Operational structure
Our company is the country’s most valuable Central Public Sector
Enterprise (CPSE) with a majority stake held by the Government of
India. The company is governed by the Companies Act 1956. Our
financial performance and physical targets are determined on the basis
of the Memorandum of Understanding (MoU) signed with the Ministry of
Petroleum and Natural Gas (MoP&NG). The aspects such as the
company’s functioning, performance management, corporate
governance, corporate social responsibility and sustainable
development are regulated as per the guidelines of the Department of
Public Enterprise (DPE), under the Ministry of Heavy Industries and
Public Enterprises.

ONGC has a pan India presence with business activities, spread across
the length and breadth of the country, both on land (Onshore) and in sea
(Offshore-shallow water and deepwater). We have assets, basins, and
activity based organisational structures. We have 11 assets focusing on
oil and gas production and 7 basins which are engaged in exploration of
hydrocarbon in domestic basins. Three plants located in Uran, Hazira
and Dahej are large scale oil and gas processing units involved in
production of value added products. Our services located in Vadodara,
Delhi, Dehradun, and Mumbai provide support to the assets, basins and
plants in E&P endeavours.

Figure 1: Governance Structure

Government of India

Ministry of Petroleum and Natural Gas Department of Public Enterprises

ONGC Board

Assets Basins Plants Services Institutes Centres of Delivery

06/07
We have institutionalised Research and Development in E&P and
related sectors with an aim to support business processes and
promote indigenous research and innovation in technology. We have
established 13 R&D institutions in critical areas of Exploration;
Drilling; Reservoir Management; Production Technology; Ocean
Engineering; Health, Safety and Environment (HSE) Management;
and alternate sources of energy. Such institutes, located throughout
India, are fully equipped and utilise specialised multi-disciplinary
expert teams.
We have established four Centres of Delivery (COD) to provide renewed
thrust to the new plays viz CBM, Shale Gas, Deep water and High
Pressure/High Temperature (HP/HT) , essential to meet our aspirations,
as envisioned in PP2030.
In FY13, we have completed four major projects – Construction of new
Mumbai High North (MHN) platform; Revamping of Water Injection
North (WIN) platform; Low pressure gas processing and compression
facility in Rajahmundry Asset and Additional gas processing facility at
Hazira Plant.
We have not decommissioned/disposed-off fixed assets during FY13.

Figure 2: Operational Structure

CMD

Corporate Planning MD, ONGC Videsh Ltd. DG, ONGC Energy Centre

Company Secretary Chief Vigilance Officer

Director Director Director Director Director Director

(Offshore) (Onshore) (Exploration) (HR) (T&FS) (Finance)

Mumbai High Uran Plant Western Drilling Coporate

Ahmedabad Offshore HRD Services Finance

Bassein & Hazira Plant Western Employee

Ankleshwar Drilling Internal Audit
Satellite Onshore Relations
Offshore
Heera & Logistics Assam & ONGC Connenting
Neelam Mehsana Commercial
Assam Arakan Academy
PSC-JVs
Eastern Mud Corporate
Assam Cauvery Security
Offshore Accounts
Offshore
Engineering
Well Services
Karaikal KG-PG Legal Budget/PAS
Marketing
Workover
Rajahmundry Frontier Medical Treasury
IOGPT
WSS
Corporate Risk
IEOT Tripura MBP Management
Communication
Well
Completion
HSE Corporate
IRS Administration Direct Taxes
Technical
Services
MM GEOPIC CSR Indirect Taxes
Assets
Infocom
Basins CM&SG KDMIPE C2-C3-C4 Plant
Project ICE
Plants Onshore Regional Training
Engineering INBIGS
Institutes
IDT
Services Geophysical
IPSHEM
Services
Institutes SMP
E&D
Corporate Services

NMFD COED

Laboratories CEWELL

CEDC CEC-OG
ABOUT THIS
REPORT
“A New Paradigm in Sustainable Leadership” is ONGC’s fourth annual
sustainability report and presents the company’s sustainability
performance for FY13 (reporting period is from 1st April 2012 to 31st
March 2013). The current report attempts to progressively build on our
previous three sustainability reports of FY10, FY11 and FY12.3
The boundary of this report includes our domestic exploration and
production operations (assets and basins) and processing plants, which
is in full control of management. Our office buildings (including institutes
and centres of delivery) and residential colonies have also been
included as part of our disclosures. The new C2-C3-C4 extraction plant
at Dahej is under preservation and periodic inspection of equipment is
continuing as per Preservation Plan. This report does not include the
sustainability performance of our subsidiaries and joint ventures. There
is no change in the reporting boundary in FY13.
Figure 3: Reporting Boundary-Domestic E & P operations
This year’s sustainability report has been developed as per the GRI 3.0
Guidelines on Sustainability Reporting with Oil and Gas Sector
Supplement (OGSS) meeting the requirements of application level ‘A+’.
The content of the report has been developed on the principles of
materiality, stakeholder inclusivity and responsiveness as applicable to
ONGC’s current sustainability context. There is a change in the scope of
the report with the inclusion of oil and gas sector supplement in FY13.
This report has been developed with the commitment to disclosing our
sustainability performance transparently with the inclusion of our key
stakeholders. A robust sustainability governance structure continues to
manage and control the sustainability elements. We have tried to
integrate sustainable development organically in our core business of
3
ONGC previous year’s sustainability reports can be accessed at http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Initiatives/Corporate+Sustainability/
4
ONGC’s first BRR can be accessed on pages 126-151 of annual report 2012-13 at
http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf
Assets, Basins, Plants, and Services
11 Assets: Oil and gas producing properties
7 Basins: Oil and gas exploratory properties
3 Plants: Oil and gas processing and value added producing properties
13 Institutes: Applied research and development of oil and gas exploration
and production and knowledge support.
4 Centres of Delivery(COD): Providing renewed thrust to the new plays
viz CBM, Shale gas, Deep water and High Pressure/High Temperature
(HP/HT) , essential to meet PP2030 aspirations.
Services: Providing support, enabling facilities and resources to the
Assets and Basins towards the core functions of oil and gas exploration and
production; and production of related value added products.
exploration and production. The performance based data points are
generally collated from our robust Enterprise Resource Planning
system. However, some data points viz natural gas, electricity, water
and waste are collected by sending data collection templates to work
centres across assets, basins, plants and relevant services. We have
presented actual numbers in most cases and estimated numbers for
some data points.
The report has been independently assured by Det Norkse Veritas AS
(DNV) in accordance with AA1000AS (Type 1, moderate level
assurance) for validation of the reported contents and to enhance the
credibility. The GRI content index on page 63 onwards gives a detailed
reference on the GRI performance indicators and standard disclosures.
The report has also been mapped to the framework of Business
Responsibility Report (BRR)4 as mandated by Securities and Exchange
of Board of India (SEBI). BRR is mandatory for the top 100 listed entities
based on market capitalisation at BSE and NSE as on 31st March, 2012,
which requires company’s communication on its Environmental, Social
and Governance (ESG) performance along with the annual report. The
report is mapped as per UNGC principles as well.
With our Perspective Plan 2030 (PP2030), we are targeting a sustained
growth of 4-5% per annum in the next two decades. Based on this, we
are aligning our R&D with technology priorities, reviewing our risk
management systems and exploring investment opportunities to
enhance energy security through expansions and investment in
alternate energy.
We are working towards bringing out a sustainability report of ONGC
group of companies including subsidiaries OVL and
MRPL by FY 2015.
We believe we can improve upon our sustainability
reporting process and consider your comments and
suggestions valuable to us.
We appreciate if you send your comments on
the report to: chief_cmsg@ongc.co.in
08/09
Back to Contents
AWARDS
AND ACCOLADES

The Company was Ranked 5

• 22nd Position in the Platts Top 250 Global Energy Company Ranking
2012 and 3rd position among E&P companies (October 2012).

• 155th Position of world biggest companies in the Forbes Global 2000

list for 2013 and 23rd position globally under oil and gas operations
industry (April 2013).

• 386th Position in the Newsweek Green Rankings 2012 Global 500

list (2012).

• 36th Position in oil and gas companies based on Research and

Development (R&D) expenditure as per 2012 EU Industrial R&D
Scoreboard.

5
ONGC’s ranking can be accessed at http://top250.platts.com/Top250Rankings
http://www.forbes.com/global2000/list/#page:2_sort:0_direction:asc_search:_filter:All%20industries_filter:All%20countries_filter:All%20states
http://www.thedailybeast.com/newsweek/2012/10/22/newsweek-green-rankings-2012-global-500-list.html
https://www.google.co.in/webhp?source=search_app&gws_rd=cr&ei=C-UuUv_TEYHtrQfM0oHoCA#q=Research+and+development+expenditure+eu+industrial+r%26d+scoreboard+2012

Back to Contents
The Company was:
• Awarded Gold Trophy of SCOPE Meritorious Award for Corporate
Social Responsibility and Responsiveness for FY12 (April 2013).
• Awarded 10 awards in the Oil Mines Category at the prestigious
National Safety Awards (Mines) for the years 2008, 2009 and 2010
(November 2012).
• Bestowed with ‘Certificate of Recognition’ for adopting exemplary
corporate governance practices, instituted by the Institute of
Company Secretaries of India.
• Bestowed with two CII-ITC Sustainability Awards 2012 under
‘Commendation for Significant Achievement’ at corporate category
and under unit category-Hazira Plant.
• Selected (jointly with GAIL) for the prestigious SCOPE Award for
Excellence and Outstanding contribution to the public sector
management.
• Awarded Randstad Award 2013 for being the Most Attractive
Employer in the Energy Sector in India.

10/11
FROM THE CHAIRMAN &
MANAGING DIRECTOR’s DESK
“itsOurpeople
commitment to sustainable development aimed at taking care of the planet and
is organically integrated to our exploration and development of energy assets,
which is automatically resulting in a robust bottom line…”

I am pleased to introduce the ONGC Sustainability Report 2012-13. Our sustainability focus has led to a robust presence in most of the
Against the backdrop of a still struggling global economy and India’s emerging green corridors including renewable and unconventional fuels
energy dependency on fossil fuel, we continue to operate in like Shale Gas and Coal Bed Methane. On climate change mitigation,
economically, environmentally and socially responsible ways; and we embrace our responsibility proactively and voluntarily. Our
invest for the future. commitments are reflected in our unique successes in CDM project
development and Global Methane Initiative, which has helped us
As India’s energy demand continues to rise with its economic growth,
improve our production bottom-line as well. Our corporate wide carbon
and easy oil depletes at a faster rate, we endeavour to develop energy
foot printing exercise is complete and has opened several avenues to
resources that exist in a challenging environment, or are difficult to
reduce our footprint. We have set specific targets for commercialization
produce. We face stiff challenges to maintain our bottom-line and
of stranded cleaner gas and development of alternate energy sources
generate ample financial resources on account of steep and increasing
including solar, wind, and nuclear. It is our organizational objective to
discounts to support the under-recoveries of the Oil Marketing
progressively reduce our carbon footprint by working towards reduction
Companies (OMCs), which is beyond our control. However, we strive to
in both direct and indirect energy consumption.
address the issue of under-recoveries through continuous engagement
with all stakeholders. We are working on a company-wide ‘Sustainable Water Management
Strategy’ to reduce fresh water consumption and reporting on the water
Our Perspective Plan 2030 (PP2030) aims at building a portfolio to
footprint based on internationally recognized standards and practices.
transform ONGC as a global energy company. We are investing toward
During FY13, we have been able to reduce GHG emission by 5%,
building unique ‘differentiating’ core capabilities through investment in
fresh water consumption by 15% and considerable reduction in the
niche technology, physical and intellectual capacity building, applied
bulk material consumption and this has been possible due to on-going
R&D capability and capital management capabilities to service our
energy conservation measures and enhanced impetus to good
future growth prospects in unconventional, deepwater and IOR/EOR, as
industry practices.
envisaged in PP2030.
Our vision of sustainable growth drives both business decisions as well
Sustainable development remains firmly at the core of our business
as Corporate Social Responsibility (CSR) initiatives. Our CSR
strategy. Working with communities, governments, non-government
interventions aim at an inclusive business paradigm with triple bottom-
organisations and others help us to operate safely and responsibly. We
line considerations and are well-integrated into the decision-making
take effective steps to preserve the environment and ecological
processes of the organization. We have made significant strides in
diversity and to build trust with communities close to our operations.
engaging communities through a number of structured big-format
Wherever we operate, we never cease in our efforts to ensure
community-enrichment projects. These projects have strengthened the
everyone’s safety: our employees or contractors or the communities
community engagement, helping secure enduring stakeholder
near our operations alike.
cooperation in ONGC’s energy business.

Back to Contents
We will continue to take up Sustainable Development projects for
conserving natural resources, energy, water and make all out
efforts to minimize environmental impacts of our projects on the
society. We will also continue to invest in community around our
work centres through various initiatives by providing access to
infrastructure, water, electricity, education, healthcare etc.

The issues related to environmental, community and economic

performance covered in my statement during FY12 have been
duly addressed under respective sections in this report.

Ever cognizant of the necessity of being accountable, responsive

and transparent to the wider body of stakeholders, we had
commenced sustainability reporting based on the globally
recognized Global Reporting Initiative (GRI-G3) guidelines in
FY10. We will continue to bring out externally assured
sustainability reports through which our company will strive to
improve the overall engagement with stakeholders, be
accountable for the triple bottom line performance and help
improve the same.

ONGC is the founding member of the Global Compact Network,

India through which we uphold and propagate the Ten Principles of
UNGC on human rights, labour, environment and anti-corruption.
In this report, our progress in these areas has also been duly
covered.

I invite your comments on the report.

Sudhir Vasudeva
Chairman & Managing Director

12/13
OUR GOVERNANCE
FRAMEWORK
Our corporate governance is driven by adherence to the ethical
standards for effective management, distribution of wealth and
discharge of social responsibility for sustainable development of all the
stakeholders including customers, employees and society at large.
ONGC is governed by a Board of Directors. The Chairman and
Managing Director (CMD) is the Chairman of the ONGC Board. The
Board collectively formulates strategies, policies and periodically
reviews company performance.
As on 31st March 2013, the Board of Directors has 14 members,
comprising of 6 Functional Directors (including the CMD) and 8 Non-
Executive Directors. The Non Executive Directors comprise 2 part-time
official nominee Directors and 6 part-time non-official Directors
nominated by the Government of India. Managing Director, OVL is a
permanent invitee to the meetings of the Board. The Board has two
women Directors during the reporting period. The company being a
CPSE, Directors are appointed/nominated by the President of India.
Twelve Board meetings have been held during the reporting period.
except that for the period from 1st April 2012 to 21st May 2012, the Board
of Directors did not comprise of the required number of Independent
Directors as per the terms of the above mentioned Listing Agreement.
The Government of India was in the process of nominating the
Independent Directors during the mentioned period.
ONGC operates as per the guidelines of the MoU with the Ministry of
Petroleum and Natural Gas (MoP&NG) , which is governed by the
Department of Public Enterprises under the Ministry of Heavy Industries
and Public Enterprises.
Functional Directors are evaluated by the MoP&NG for their
performance as per the contract with MoP&NG. Non-executive
Directors are not assessed formally 7. CRISIL 8 have conducted a
study on Governance and Value Creation in ONGC and
recommended for formal appraisal process for Board as a whole.
Accordingly, ONGC Board approved in principle a policy on
“Performance Evaluation of Directors”, which is under consideration
of the Independent Directors.

The composition of the Board of Directors as on 31st March 2013 In addition to the Board, ONGC also has various committees of the
complies with the provisions of Clause 49 of the Listing Agreement, Board, which oversee specific functions of the company and provide

Table 3: Our Board Structure6

Functional Directors Official Nominee Directors Independent Directors Permanent Invitee
Shri Sudhir Vasudeva Shri Sudhir Bhargava Smt Anita Das Shri D K Sarraf
Shri A K Hazarika Shri Bimal Julka Dr D Chandrasekharam
Shri U N Bose Shri Aramane Giridhar Prof Deepak Nayyar
Shri S V Rao Shri Shaktikanta Das Shri Arun Ramanathan
Shri K S Jamestin Prof S K Barua
Shri A K Banerjee Shri O P Bhatt
Shri P K Borthakur Smt Sushama Nath
Shri Shashi Shanker Shri K Narasimha Murthy
Shri N K Verma

6
Shri A K Hazarika, Director (Onshore) superannuated on 30th September, 2012. Shri U N Bose, Director (T&FS) superannuated on 30th November, 2012. Shri S V Rao, Director (Exploration)
superannuated on 31st March, 2013. Shri A K Banerjee joined as Director (Finance) on 22nd May, 2012. Shri P K Borthakur joined as Director (Offshore) on 30th October, 2012. Shri Shashi Shanker joined
as Director (T&FS) on 1st December, 2012. Shri N K Verma joined as Director (Exploration) on 1st April, 2013.
Shri Sudhir Bhargava resigned from the ONGC Board on 3rd August, 2012. Shri Bimal Julka was as a Government Nominee Director from 4th April, 2012 to 28th August, 2012. Shri A Giridhar joined as a
Government Nominee Director on 3rdAugust, 2012. Shri Shaktikanta Das joined as a Government Nominee Director on 28th August, 2012. Smt Anita Das resigned from the ONGC board on 4th August
2012. Smt Sushama Nath resigned from the ONGC board on 21st January 2013. Shri K Narasimha Murthy joined as an Independent Director on 21st March, 2013.
7
Information on our process for determining the composition, qualifications, expertise, compensation of the members of the Board and its committees and precautionary approach have been reported in
ONGC Annual Report FY13 - http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf and also in ONGC’s previous sustainability reports -
http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Initiatives/Corporate+Sustainability/
8
CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services.

Back to Contents
Table 4: Our Board Committees 9
Committee Name
Audit and Ethics Committee
Remuneration Committee
Shareholders’/ Investors’
Grievance Committee
Human Resource
Management Committee
Project Appraisal Committee
Financial Management
Committee
Committee on Dispute
Resolution
HSE and Sustainable
Development Committee
ONGC’s performance is evaluated by the Department of Public
Number of Chairman Number of Enterprises on the basis of the MoU that ONGC signs with the MoP&NG.
members meetings in
2012-13 The entire MoU is on a 100 point scale and various activities of ONGC
7 Shri Arun Ramanathan 12 with specific targets and percentage weightage form the MoU
5 Dr D Chandrasekharam 1 parameters. At the end of the financial year, performance of ONGC is
7 Prof Deepak Nayyar 2 evaluated on the basis of the target achieved against various
parameters. The performance related pay (PRP) of ONGC executives is
11 Prof S K Barua 6
based on this MoU evaluation, which is decided by the DPE on a fixed
11 Shri O P Bhatt 9 guideline for all CPSEs. The MoU has two parts—static financial
11 Shri Arun Ramanathan 3 parameters and dynamic parameters—each with 50% weightage. SD
activities and CSR constitute 10% of the total MoU weightage under the
10 Prof Deepak Nayyar 4
dynamic parameters. Thus, performance against the set targets under
12 Dr D Chandrasekharam 2 the economic, environmental and social parameters of ONGC
constitute 60% of the total MoU target and hence are extremely critical
for its performance evaluation.

Governance for Sustainability

ONGC follows the Guidelines on Corporate Social Responsibility and
Sustainability for Central Public Sector Enterprises issued by the
Department of Public Enterprises. The core objective of these
guidelines is to make significant contribution to the socio-economic
growth of the country and environment protection.

At the corporate level in ONGC, we have a dedicated team, “Carbon

Management and Sustainability Group” for managing all sustainable
development projects. This team is supported onsite by Sustainable
Development Officers (SDOs) at various locations who oversee the
implementation of sustainable development projects in an effective
manner. Throughout the year, the core team ensures rigorous
interaction with the SDOs for training and awareness on sustainability
issues.

In various core sustainable development performance areas in ONGC,

their expertise in reviewing and supervising the overall affairs.
Company's guidelines relating to Board Meetings are applicable to
Committee Meetings as far as practicable. Both, the Board and
Committees of the Board function as per defined guidelines in order to
systematize decision-making process in the company.
we undertake an incrementally scalable, project based approach. In this
approach, the pilot projects are initiated at the representative locations
and they are eventually scaled up for the entire organisation.
In ONGC, our sustainability policy remains our guiding document in our
sustainability journey. It is periodically reviewed for the sustainability
goals and targets. The concerns of the external and internal
stakeholders have been addressed in this policy.

9
For details on the roles and responsibilities of these committees, please refer to ONGC Annual Report FY13, which can be accessed at
http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf

Information on mechanisms for shareholders and employees to provide recommendations to the Board and processes in place to ensure that conflicts of
interest are avoided have been reported in ONGC Annual Report FY13 -
http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf and also in ONGC’s previous sustainability
reports - http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Initiatives/Corporate+Sustainability/ 14/15
Figure 3: Our Sustainability Structure

Board Committee HSE & SD ONGC Board

Director (Onshore)
In-charge Carbon Management & Sustainability Group

Executive Director
Chief -Carbon Management & Sustainability Group

Sustainable Development Officers Carbon Management & Sustainability

(SDOs) at all work centers Group (CM&SG) Corporate set
(Assets, Basins, Plants and Services) up to steer SD activities

Sustainable Development Policy

ONGC believes that Sustainable Development requires contribution from all societal players and significantly so from corporates. This policy is
aimed at driving efficient and effective implementation of Sustainable Development activities, initiatives and projects across ONGC.

We consider that sustainable management of water, materials and energy; addressing climate change through carbon management are our key
broad responsibilities towards environmental sustainability.

Our vision is to gradually work towards reducing our carbon and water footprint, innovative beyond compliance management of waste and
prudent energy management and biodiversity conservation.

Our approach for working on our Sustainable Development responsibilities will be through projects in the specified areas and will be driven by an
adequately empowered organizational structure in ONGC with a system of management oversight, review and control.
To ensure effective operational structure and governance for
sustainable development in ONGC, we re-designated our Health,
Safety and Environment (HSE) Committee as “HSE and Sustainable
Development Committee” during the year. The detailed terms of
references of the committee are as under:

Approve Sustainable Development policy and revise the same at

periodic intervals
Approve SD plan (short, medium and long term) in the context of the
SD guidelines
Provide apex level guidance for SD projects and targets
Oversee SD performance
Approve annual SD evaluation report
Approve annual SD budget ONGC maintains its commitment on promoting transparency and
Help and oversee alignment of SD projects/activities with the continues with its existing structure for ensuring transparency. The
organizations business goals and the national and international structure includes:10
trends. Conduct Discipline and Appeal (CDA) Rules: In ONGC, we have a
comprehensive code of conduct (CDA Rules) to guide the behaviour
of employees, maintain ethical conduct and discipline at the
workplace. We have proactively adopted the ‘Whistle Blower Policy’
voluntarily.

Vigilance Department: We have a strong vigilance department with

17 vigilance units spread across regions, assets, basins and plants.
This department ensures that our business procedures run in a
transparent manner. Some of the initiatives to maintain
transparency in our operations and dealings include e-procurement,
e-payment, invoice monitoring system and publishing tenders on
our corporate website. All units are regularly analysed for risks
related to corruption. In FY13, there were 4 reported cases of
corruption. Three cases have been registered under vigilance and
one case has been registered under CBI, Dehradun. We organize
various training and sensitization programs on anti-corruption and
participative vigilance for all employees.

Audit and Ethics Committee: Audit and Ethics is a board level

committee which observes and guides the findings of internal,
government and statutory auditors.
Promoting Transparency Integrity Pact by Transparency International: The pact guides us to
reduce risk of corrupt practices during our procurement process.
ONGC has taken structured initiatives towards Corporate Governance
Through implementation of the guidelines of the pact we have seen
and its practices, which revolve around multi-layered checks and
reduction in complaints from the vendors regarding
balances to ensure transparency. Apart from the mandatory measures
contract and procurement activities.
required to be implemented as a part of Corporate Governance, ONGC
has walked the extra mile in this regard and has implemented the Grievance Management System (GMS): We
Whistle Blower Policy, published Annual Report on working of the Audit provide an easily accessible machinery to the
and Ethics Committee, MCA Voluntary Guidelines on Corporate employees for redressal of their grievances,
Governance and Enterprise-wide Risk Management (ERM) framework. either through an informal channel (open

10
Information on our transparency structure can be accessed from ONGC Annual Report FY13 -
http://www.ongcindia.com/wps/wcm/OngcHTML/Annual_Report_2012_13/Annual_Report_2012_13.pdf and also from ONGC’s previous sustainability
reports - http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Initiatives/Corporate+Sustainability/ 16/17

hearing day) or through a formal channel. In this regard, a new GMS
has been introduced in the Company in FY13.
Public Grievance Management System: All Key Executives of the
Company have designated a publicized time slot thrice in a week to
meet public representatives in order to speedily redress their
grievances. In addition to the above, at every work centre, Central
Public Information Officer (CPIO) has been appointed to redress the
issues under RTI Act.
Right to Information (RTI) response: We have established a system
to respond to the requirements of the Right to Information Act, 2005
and comply with all references to it within the stipulated time. An
elaborate mechanism has been set up throughout the organization
to deal with the requests received under the RTI Act. 40 applications
received in March, 2012 were carried forward to FY13. 1,552
applications have been received during the year making a total of
1,592 applications. 326 first appeals (6 were received in March,
2012 and 320 have been received in FY13) have been disposed of
by the appellate authority of ONGC and orders passed by the
authority have been compiled within stipulated timeframe.
Compliance to Voluntary Guidelines on Corporate Governance of
the Ministry of Corporate Affairs.
Commitment to External Charters and Memberships in
Associations
ONGC is a founder member of the United Nations Global Compact
(UNGC) India Network and over the years have strengthened the UNGC
movement amongst the businesses in India. We are committed to
aligning our operations and strategies with the ten universally accepted
principles of UNGC in the areas of human rights, labour, environment
and anti-corruption. Our Chairman and Managing Director is the Board
member of the United Nations Global Compact for a period of three
years w.e.f. FY13.
We are actively involved with the following key industry associations of
the country in different capacities for developing industry specific
standards, recommended practices, capacity and institution building
and sponsoring events.
Member of Confederation of Indian Industries (CII)
Member of Federation of Indian Chambers of Commerce and
Industry (FICCI)
Founding Member of Petro –Tech Society
Member of Society of Petroleum Engineers and Society of
Petroleum Geologists (SPE and SPG)
Member of Standing Conference on Public Enterprises (SCOPE)
Member of Petroleum Federation of India (PetroFed) Leading Indo-
Africa Business Council (IABC) for the Oil and Gas sector
ONGC and PetroTech Society in collaboration with Oil Industry Safety Directorate
organized two day 6th National Health Safety & Environment Workshop at New Delhi
during March 2013. 168 delegates from 15 oil & gas companies in upstream and
downstream sectors participated in the workshop.
Also, ONGC organized two day programme on sustainable development with
PetroTech Society.
Being a CPSE, ONGC supports the Government of India’s endeavours
and does not lobby on specific issues. We do not make any financial
contributions to any political party or related institutions. We have not
received any reported instances of anti-competitive behaviour, anti-trust
and monopoly practices in FY13.
Precautionary Approach
Our operations emphasize risk management and abundant caution in
our E&P operational activities. We do not take lack of scientific
uncertainty as a reason for delaying action undertaken for risk
management, risk mitigation and safe operations, that would minimize
the impact on environment.
Risk Management System
Energy business, particularly E&P business, has always been a very
dynamic business characterized by inherent uncertainties, geological
surprises, volatile markets and a number of external factors such as
geo-political uncertainties, fiscal and regulatory regime, etc., which
makes it a highly risky business. In such a scenario, where the
uncertainties are the rule, it becomes imperative to have a
comprehensive Enterprise-wide Risk Management.
The Risk Management Policy has been rolled out across the
organization in all Assets, Basins, Plants, Institutes and offices. We have
institutionalized robust internal control systems to continuously monitor
critical businesses, functions and operations, particularly field
operations. A set of standardised procedures and guidelines have been
issued for all facets of activities to ensure that best practices are adopted
right down to ground level. Performance of every business unit is
monitored by the respective directorates for suitable corrective
measures, if any, in time.
The Chief Risk Officer and Risk Management Committee review various
types of risks whether present or future and apprise the same to the
Board of Directors. Further, the Board of Directors effectively monitor,
evaluate and manage risks in the company. Our critical business risks
generally remain constant over short to medium term. We identified
seven critical business risks facing the organisation.

Government’s control over pricing of crude oil, natural

gas, and petro-products
Global volatility in crude oil prices

Time and cost overruns in development of fields

Non discovery of oil/gas reserves in explored blocks

Accidents/ Incidents affecting employee and

contractual safety
Inability to acquire exploration rights

Asset security in security sensitive operating areas

Inherent risks are associated with oil and gas field operations viz -
spillage, rupture, blowout of wells, earthquake, tsunami, terrorist
activities, sabotage and pilferage etc. Every possible attempt is taken to
mitigate these risks right from the design stage; however probability of
emergency situations cannot be totally eliminated. In the event of any
such unfortunate event the risk of significant liabilities increases
manifold. However in ONGC, we have implemented improved OISD
standards to improve contingency combat capabilities. Our offshore
assets have been rated under 'acceptable risk' by international
underwriters, enabling a lower-than-peer insurance premium for these
assets.
In ONGC, our Risk Management framework allows us to ensure that we
stay within the compliance of national laws and regulation.

18/19
STAKEHOLDER
ENGAGEMENT
As an oil and gas major in India, ONGC has a large number of stakeholders who are important for its success. In ONGC, we emphasise on building
relationships with these stakeholders. To promote sustainability, we continuously engage with our employees, customers, suppliers, investors,
media, the government and the local community.

Engagement with employees for identification of stakeholder and key sustainability issues
For year 2012-13, a survey was conducted amongst the employees with the dual objective of
a) Identification of key stakeholders
b) Prioritization of key material issues by employees
The survey tool was discussed with over 200 employees in interactive sessions as well as through internal portal of ONGC. Responses received from the
employees were consolidated and ranked to derive the key stakeholders as well as key material issues of employees. The results were discussed with the
management and used to derive the overall material issues for the organization. The survey helped us understand the expectations of our employees and also
gave us an opportunity to engage and educate our employees on sustainability initiatives taken up by the management.

Obtaining inputs from our stakeholders is an important component of Stakeholders

our sustainable development journey. The engagement with the Employees
stakeholders is carried out across business verticals through different
National/State Governments/ Investors/Shareholders
platforms and forums. The inputs of stakeholders help us to understand
their needs and expectations from ONGC. Addressing their concerns Contractors/Suppliers
help us building trust. Customers

The key stakeholders are identified on the basis of the value and
expectations generated for them and their impact on our company. We
follow the GRI framework to ensure a structured, thorough and effective
stakeholder engagement process.
Following this framework, ONGC identified top 5 groups of stakeholders
who are most important to our organisation
To substantiate our stakeholder engagement, we are formulating a
“communication policy for Stakeholder Engagement”. The policy
Local Community
focuses on integrating stakeholder engagement in its business process.
The goals of the Communications Policy for various Stakeholders are to
Connect, Listen, Respond, Sustain - leading to value creation in the
business with an overall Economic, Social and Environmental
sustainability in view. The policy is being put on ONGC Board for
consideration and once approved, it will be enforced in FY14.

Back to Contents
The process for stakeholder engagement for each group of stakeholder is given below:
Stakeholder Level of Engagement Mode of engagement & activities Key concerns & actions
Corporate Asset/ Facility
Basin/Plant
• Investors and Analyst Meet Concerns:
• Three Quarterly Earnings Conference Call Economic worth of the
company, value creation
• ONGC Annual General Meeting September 24, potential.
2012
• 14 Domestic conferences and one overseas Actions: PP2030
conference organized by Financial Institutions / Venturing into shale gas, CBM,
Shareholders Investment Bankers Creating sustainable wealth
and Investors
 • Large No. of meetings of Officers of Investor through renewables.
Relation Cell with representatives of
Institutional Investors and Analysts
• Regular update of Quarterly / Annual results,
annual reports, press releases and
presentations to media, institutional investors,
financial analysts on corporate website
www.ongcindia.com

Structured engagement through meetings with Concerns:

administrative Ministry-Ministry of Petroleum and Energy Security, Connecting,
Natural Gas (MoP&NG), Ministry of Heavy Listening & getting Response
Industries and Public Enterprises and from ONGC on other specific
Parliamentary Committees. issues
• Quarterly Performance Review Meetings Actions:
(QPRM) with administrative Ministry Structured plan and program in
• Meetings with Consultative Committees of the the form of PP2030.
administrative Ministry. Responding to the Govt through
• Meetings with Standing Committee of the implementation of various
Petroleum and Natural Gas, Government of stipulations, strictures &
India. guidelines.
• Meetings with Committee on Science and
Technology, Environment and Forest,
Government of India.
• Meetings with Consultative Committee of
Government
Ministry of Heavy Industries and Public
and Regulatory
Enterprises, Government of India.
agencies such
as DGH, OISD,
• Meetings with Standing Committee on Labour
DGMS, SPCBs, Government of India.
CPCB, OCC • Meeting with Committee on subordinate
legislation, Government of India.
• Meeting with Committee on Government
Assurance, Rajya Sabha, Government of India.
• Meetings with Committee on Official Language,
Government of India.

Structured engagement through audits,

inspections, and meetings with OISD, DGMS,
CPCB, SPCBs.

Oil Spill Response Exercise and Workshop jointly

organized by ONGC and Indian Coast Guard
• 68th Onshore Security Coordination Committee
Meeting
• Meetings with DGMS, Government of India.

20/21
Stakeholder Level of Engagement Mode of engagement & activities Key concerns & actions
Corporate Asset/ Facility
Basin/Plant

Through structured forum like Strategy meet, Concerns:

Vichar Vishleshan, Conclave, Change Agents meet Professional growth.
and Open houses Safe and Healthy working
• 10th Strategy Meet Board members and senior atmosphere, Welfare
officials of MoP&NG meets to discuss and measures.
deliberate the concerns and growth of the
company. Actions:
Sustained engagement through
• Vichar Vishleshan (12th Key Executive meet) -
ONGC portals.
An open session of Key Executives of Assets,
Improved working conditions.
Basins, Plants, Services, with CMD and
Best in class welfare measures
Functional Directors to review performance and
to formulate future plans.
Employees • 11th Conclave (Mantrana) - An open session of
former and present members of Board to share
the cumulative knowledge and experience.
• Change Agent’s meet - An open session of
junior and middle level managers to engage
and prepare them for taking up challenges and
for realization of P2030 aspirations.
• Regular interaction in workshops, seminars,
training and through internal web portal.
• Periodic workshops and capacity building
programs on QHSE, CSR & sustainability

Engagement through Crude Oil Sales Agreement Some of the issues discussed
(COSA), Gas Sales Agreement (GSA) and regular with customers and resolved:
interactions with customers on supply of crude oil, • Settlement of payment,
gas allocation and pricing of value added products periodicity of billing
• Change in pattern of gas
supply and availability of
Customers  additional gas
• Flaring issue in case of
unplanned tripping of plant
at customers end
• Gas pool account surplus
transfer
Stakeholder Level of Engagement Mode of engagement & activities Key concerns & actions
Corporate Asset/ Facility
Basin/Plant

Through contract agreement and direct interactions 22 issues were raised by

at work-centre level meets. Business partners, ONGC has
• Business partners meet and pre-bid conference taken action on 8 pertinent
• Direct meetings with wide cross section at issues and no action taken on
organizational level as well as Work centre level 14 issues, as the existing
including functionally categorized specific procedures and system is
Business meets. adequate. The issues are:
partners, • Rig mobilisation period for
• Contract worker training and workshops,
Contractors and  foreign and Indian bidders
Contractual SAHYOG scheme.
• Qualifying criteria for Rigs
Labour
• Vintage for Supply Vessels
and technical evaluation of
Offshore Supply Vessel
tenders
• Difficulty in uploading bids
on e-portal
• Threshold limit for
applicability of financial
criteria, ascertaining annual
Turnover and liquidated
damage on taxes/duties
• Concerns for contractual
labour: Workplace Safety

Actions:
Structured customised training
programs

Direct engagement specifically at work-centre Concerns:

level through ONGC’s CSR and HR department. Connecting, Listening and
• Corporate Social Responsibility Meet Responding
• Stakeholder meetings across our Assets, Actions:
Communities Basins and Plants. Engagement in CSR Projects as
and NGOs
 Partners.
Making them aware about
ONGC CSR initiatives through
structured engagement
program.

22/23
SUSTAINABILITY CHALLENGES
AND RESPONSES
ONGC’s sustainability report is a disclosure of performance related to engagement with our employees be the focus for the purpose of the
economic, environmental and social aspects. To improve the current reporting.
sustainability management, monitoring and reporting process and
Based on our materiality determination exercise for sustainability, a
progressively integrate sustainable development in the organizational
macro level mapping of issues for the organization in the overall
working, it is important to identify issues that are most important for our
business and sustainability context with relative priority in terms of
stakeholders. For FY13, this has been done through a structured
management attention, plans and work program during the reporting
engagement process as per the GRI framework. The engagement
period is presented below. Elements of this issue map, which have
process (formal and informal) has involved identification of key
found focused management attention and have moved up in the priority
stakeholders (employees of ONGC, Government of India, business
hierarchy during the reporting period, are Energy Security and Reserve
partners and community) and subsequently understanding major
Accretion; Worker Health, Safety and Asset Security; Water and Waste ;
sustainability issues. Considering the diverse nature of operations and
Hiring and Retaining Workforce; and Community. The issues of
a concomitant diverse aspirational levels of the employees engaged
Innovation and R&D, and Ethics have also emerged as sustainability
in those operations, it has been proposed that systematic
issues this year and would be addressed after due diligence.

Stakeholder

Workplace Environment

Biodiversity

Ethics

Organization

Marketplace

High Importance-towards the centre

Low Importance- away from the centre

Priortized Sustainability issues - High

o
Innovation and Research

Priortized Sustainability issues - Moderate

o
& Development

o Hiring and Retaining

Workforce
Worker Health, Safety
& Asset Security
Transparency

Hyderocarbon
Energy Security &
Reserve Accretion
Unconventional

Monetizing difficult and

isolated hydrocarbon footprint

Supply Chain

Transparency
Climate Change and GHG

Resource Efficiency

Environment Footprint
Water and
Waste

Community
Effluents

Transparency

Stakeholder
Organization

Community

Back to Contents
Energy Security and Reserve Accretion
ONGC is the largest producer of oil and oil equivalent gas (O+OEG) in
the country. With the ever increasing demand of petroleum products in
the country, ONGC plays a crucial role in ensuring energy security of the
country. At the same time, we are encountering natural decline in our
mature and aging fields, which is a global phenomenon.
To ensure energy security for our nation, ONGC has drawn up a
strategic roadmap “Perspective Plan 2030”, to address the energy
security needs of the country. In the plan, our focus is on reserve
accretion, brown field management, overseas E&P operations, value
chain integration and sound financial management to ensure sustained
growth. This Plan also provides us guidance in integrating sustainable
development with our business operations.
In our MoU targets for FY13, we assigned 12% weightage to Energy
Security and Reserve Accretion. We received a very good rating in our
achievement. In our MoU targets for FY14, we assigned 16% weightage
to Energy Security and Reserve Accretion. The targets assigned for
FY13 and FY14 are:
Table 5: Key targets for Energy Security and Reserve Accretion

Category FY13 FY14

Crude Production (MMT) 27.54 * 27.24 **
Gas Production (BCM) 25.73 25.19
Value Added Products (KTON) 3410 3463
Reserve Accretion (3P) (MTOE) 83.00 83.00

* Includes 2.08 MMT condensate ** includes 2.2 MMT condensate

Worker Health, Safety and Asset Security
Worker health, safety and asset security has been one of ONGC’s most
important focus areas and continues to remain so in the current year.
Every year we seek to mitigate health and safety risk for our entire
workforce - employees as well as contract workers. We have followed
best-in- class industry practices for ensuring safety of our workers as
well as security of our assets. ONGC have institutionalised internal and
external audits and are conducting them on a continuous basis to
ensure compliance.

24/25
ONGC regularly organizes extensive training programmes and
awareness sessions for our workforce on health and safety practices.
We also work with other companies from the same sector to share
information and good practices on safety and security issues.
We conduct third party audits regularly for offshore and onshore
installations by established national and international HSE agencies
such as Oil Industry Safety Directorate (OISD), an organization under
the control of the MoP&NG, which issues safety guidelines. Further,
subject to the safety regulations prescribed by the Directorate General
of Mines and Safety (DGMS), each work center has teams dedicated to
HSE, which execute the safety guidelines prescribed by OISD as well as
DGMS. HSE teams are also responsible for obtaining necessary
licenses and clearances from the State Pollution Control Boards.
In our MoU targets for FY13, we assigned 0.5% weightage to HSE
(Process safety) audits. We received an excellent rating in our initiative.
In our MoU targets for FY14, we assigned 1% weightage to HSE audits
(Process safety). The initiative planned for FY14 is:
Key initiatives for HSE (Process Safety) Audits:
Category FY13 FY14
Audits in critical installations 220 220
Water and Waste
We use fresh water for our E&P at offshore and onshore operations. The
geographic spread of our operations results in unique water challenges
for each of our assets, plants and installations. Our North Eastern assets
have an abundance of water, whereas our assets in Gujarat and
Rajasthan and Uran Plant face shortage of fresh water. Our offshore
installations face entirely different water challenges, where we have to
use desalination plants to meet our demand for fresh water.
As we increase our exploration operations to find new sources of oil and
gas, particularly the non conventional sources like Coal bed Methane,
Shale gas and tertiary recovery from existing reserves, we expect the
demand for water to grow. This puts our operations at risk in areas where
there is a limited supply of water.
We have developed companywide ‘Sustainable Water Management
Strategy’ aimed to reduce fresh water consumption and have
developed action plans for baseline assessment of current water
consumption, location specific statement of purpose for water recycling
and reuse targets as appropriate in the medium to long-term. We have
reduced our fresh water consumption by 15% in FY13.
As a policy decision, we have made it mandatory to implement rain
water harvesting in all our future projects including the residential
complexes across the country.
Water foot printing and rain water harvesting were taken up as
Sustainable Water Management initiatives under our MoU targets
for FY13.
Key initiatives for Water Management :
Completion of water mapping study of Uran Plant and Mehsana Asset and
action plan thereof
Water mapping study at Cauvery and Tripura Assets
Rain water harvesting in Western Onshore Basin; Rajahmundry, Tripura
and Ahmedabad Assets
Wastes generated during exploration and production operations are
primarily drilling mud and mud cuttings (non-hazardous), chemical
sludge and tank bottom sludge (hazardous). Chemical sludge is
collected in lagoons having leachate collection facility where water is
drained to reduce the quantity of sludge. This chemical sludge is
disposed of by land filling in accordance with the norms of the state
pollution control board. To treat tank bottom sludge, which is mainly
organic in content, bio-remediation techniques are employed. We
emulate best practices in the oil industry to manage our solid waste
arising from our operations. Drill mud and cuttings is disposed, re-used
in land filling or sold to authorized vendors as per industry practices. We
have an e-waste policy to manage our e-waste.
Talent Management
Our focus is to maintain a balance of technical expertise which comes
through experience and the innovative approach. To this effect, we have
increased our management and technical training across our new
divisions and are providing individuals with opportunity to grow
professionally by adapting our promotion policy.
In our MoU targets for FY13, we have assigned 5% weightage to Human
Resource Management (HRM). We have received an excellent rating in
our initiatives under HRM. The initiatives planned for FY14 are:
Key initiatives for Human Resource Management :

Competency and Leadership development

Training for all employees
Training on risk management to senior management
Development of future leaders for succession planning at each level
Performance Management
Linkage of development plan of employees with performance
management and implementation of performance related pay
Recruitment, Retention and Talent Management
Implementation of systems for management of talent viz job
rotation and transfer, reward system, growth opportunities
Employee Relations and Welfare
Effectiveness of grievance redressal system
Stress management and welfare scheme
HR Branding and Excellence
Review HR Policy for meeting changing business priorities
Organisation culture building initiatives

Community
The geographic spread of our operations takes us to the remotest parts
of our country and makes us engage with diverse cross sections of
societies. In many places, the company is the primary employer. We
consistently engage with the local communities to understand their
concerns which in turn help us run our operations in a safe manner.
Community engagement is important as it gives us the social license to
operate. This is especially true for our new exploration activities and our
coal-bed methane and shale gas projects that require acquisition of new
land. ONGC renewed its commitment to the developmental needs of the
communities in the areas where it operates across its 12 focus areas.

In our MoU target for FY13, we assigned 5% weightage to community

initiatives. We received an excellent rating in our community initiatives.
Key initiatives for Corporate Social Responsibility
Improving Healthcare – Varishtajan Swasthya Seva Abhiyan
Improving IT Knowledge – Computer Education
Improving Environment – Harit Moksh
Improving Livelihood Opportunities – Project Utkarsh
Ecological Conservation – Eastern Swamp Deer

26/27
In our MoU target for year FY14, Corporate Social Responsibility and
Sustainable Development have been combined as per revised DPE
Guidelines and 8% weightage has been given to CSR and SD related
parameters.
Key initiatives for Corporate Social Responsibility and SD :
Involvement of employees and management through workshops and
campaigns
Carbon management projects – Flare reduction and reduction of gas
consumption
Stakeholder engagement meetings
Akshay Patra and Varistha Jan Swasthya Seva Abhiyan
Installation of Large Wind Power project at Jaisalmer
Our Annual Target
The government in its endeavor to increasingly mainstream
sustainability and corporate governance in the eco-system of CPSEs
has expanded the performance canvas and the related evaluation
criteria. Beginning FY14, work areas under the sustainability umbrella
have been increased, which include introduction of compliance to
Corporate Social Responsibility and sustainability guidelines. The
increased weightage of sustainability in our goals, targets and
performance evaluation mechanism sets the stage for sustainability to
gradually move up the work defining hierarchy of ONGC and will thus
help the organization to create increased sustainable value for all our
stakeholders.

MOU 2013-14 11

Static Financial
Parameters
Sustainable - Gross Margin/Gross Block
Development - Net Profit/Net Worth
- Human Resource Management - Gross Profit/Capital Employed
- R&D Activities - Gross Sales
- CSR and SD Activities - Gross Margin
- Corporate Governance - PBDIT/Total Employment
- Energy Management - Added Value/Gross Sales
- Carbon and Water Management
- Energy Audits
- HSE Audits

20%
50%

2%
Enterprise
16%
12%
Specific Parameters
- Average Finding Cost
- Average Cost of Production

Dynamic
Parameters
Sector Specific - Plan Expenditure
Parameters - Project Management
- Crude Production
- Gas Production
- Value Added Products
- Reserve Accretion (3P)

11
MoU of FY14 with MoP&NG can be accessed at
http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Company/MoU_with_MoPNG_2013-14/ 28/29
ECONOMIC
PERFORMANCE

30/31
 ECONOMIC
PERFORMANCE

MANAGEMENT APPROACH &

PERFORMANCE – ECONOMIC
Assuming an economic growth rate of 8% per annum for India in the next two decades, primary energy consumption is projected to increased from
537 million tonne oil equivalent (MTOE) in 2012 to 1856 MTOE in 2032. Out of this, oil consumption is projected to rise from 166 MMTPA to 486
MMTPA and gas consumption will go up from 44 MTOE to 197 MTOE 12. Making oil and gas available for future requirement would be a daunting task
given the prognosticated domestic reserves of these resources in the country.

ONGC recognises that exploring the poorly explored Indian sedimentary basins (78% of the 26 sedimentary basins still remain unexplored) with low
drilling density require technology and capital intensive accelerated exploration. Strategies have been formulated to ensure energy security and
converting these strategies into action will determine to what extent we are going to achieve our goals.

In response to limitations and the accompanying challenges, ONGC chalked out a Perspective Plan 2030 (PP2030) to address the energy security
needs of the country. This Perspective Plan will give the organization a sense of long-term direction through its clear demarcation of priorities and
challenges that are pertinent to the growth strategy and business objectives of ONGC.

PP2030 aspires for 2 fold increase in hydrocarbon production, 3 fold revenue growth and EBITDA (Earnings before interest, taxes, depreciation and
amortization) in real terms, 4 fold increase in market capitalization (real terms), 5 verticals from non-E&P business, and 6 times international growth
with a planned capital expenditure of INR 11 trillion. PP2030 has also identified 5 shaping moves - grow OVL six-fold to 60 MTOE/yr production by
2030, unlock 400 to 700 MTOE of domestic YTF (Yet To Find) production from domestic exploration, accelerate 300-400 MTOE of cumulative
production by redevelopment, secure alliances to develop new resource types and build non-E&P business to 30% of group revenue.

12
Source: Integrated Energy Policy of GOI and World Energy Outlook 2011

Back to Contents
Perspective Plan 2030

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% growth against the present growth rate of 2%. In physical terms the
aspirations under Perspective Plan 2030 aims for –

• Production of more than 130 MTOE of oil and oil equivalent gas (O +
OEG) per year (50% from international assets)

• Accretion of over 1,300 MTOE of proved reserves.

• Over 6.5 GW power generations from alternate energy and 9 MTPA

of LNG.

• Full downstream value capture in petrochemicals.

32/33
Contributing towards India’s energy security discoveries (Anklav-9, Motera-36, Mandapeta West-12 and Phulani-1)
have put on production and one discovery (Mansa-36) is under trial
Majority of the company’s domestic production comes from matured oil production. In addition, we are developing a number of small and
fields, both offshore and onshore, which are about 30-50 years old. We marginal fields. Cost of production from these fields is going to be higher
have taken structured initiatives (IOR/EOR schemes) to arrest decline in than the current net realised crude price of INR 2522/bbl due to tailor-
15 major domestic fields through capital intensive technology infusions. made facilities and short life of these fields, coupled with the increased
In FY13, we produced 46.11 MTOE oil and oil equivalent gas (O+OEG), OID Cess, which will affect the viability of future projects for monetisation
a decline of 1.95% over FY12 (47.03 MTOE) from the domestic field of discoveries.
operated by us. The major reason for lower production has been the
natural decline from the ageing matured oil fields. We have made voluntary disclosures in respect of oil and gas reserves,
conforming to SPE classification 1994 and US Financial Accounting
We produced 22.56 MMT of crude oil in FY13, a decline of 4.85% over Standards Board (FASB)-69.
FY12 (23.71 MMT) and 23.55 BCM of natural gas, 1% higher over FY12
(23.32 BCM). During FY13, our natural gas production is the highest in Table 6: Ultimate Reserve Accretion vis-à-vis Production
last nine years. We maintained our position as the largest producer vis-à-vis Reserve Replacement ratio
of O+OEG in the country contributing 69% of Crude oil and 62% of
Gas production. Year Ultimate Reserve Production Reserve
Accretion (MTOE) (MTOE) Replacement Ratio
During FY13, our plants at Uran and Hazira produced 1.006 MMT of
2008-09 68.90 47.85 1.44
LPG (a decline of 2.9% over FY12), 1.534 MMT of Naphtha (a decline of
1.4% over FY12), 4,28,000 MT of Ethane/Propane (a decline of 7.5% 2009-10 82.98 47.78 1.74
over FY12)and 1,08,000 MT of SKO (36% higher over FY12). 2010-11 83.56 47.51 1.76

During FY13, we made 22 oil and gas discoveries (9 discoveries in 2011-12 84.13 47.03 1.79
NELP blocks and 13 in the nomination blocks) in domestic fields: 12 new 2012-13 84.84 46.11 1.84
prospects discoveries (4 offshore, 8 onshore) and 10 new pool
discoveries (5 offshore, 5 onshore). We accreted 265.65 MTOE of in-
Figure 4: Our Production and Reserve Accretion
place volume of hydrocarbon with ultimate reserves accretion of 84.84
MTOE which is the highest in last 22 years. As on Mar 31, 2013, we have
82.98 83.56 84.13 84.84
balance reserves of 741.00 MTOE (1P), 1021.24 MTOE (2P) and 63.82 68.90
1290.52 MTOE (3P). 48.28 47.85 47.73 47.51 47.03 46.11

The new pool discovery (D-1-D-1) in N.B. Prasad (D-1) field has been a
significant discovery and with this, oil and gas in-place volume of the
field has increased to 149 MTOE; making it the third largest field after 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13
Mumbai High and Neelam-Heera fields. During FY13, four more Ultimate Reserve Accretion (MTOE) Domestic Production (MTOE)
Our Reserve Replacement Ratio (RRR) of 1.84 (signifying addition of
84% more oil and natural gas reserves than what we produced in the
fiscal year) marks the 8th consecutive fiscal with RRR more than one,
establishing the strength of our sustainable business model.

We have attained a significant level of expertise and success in

IOR/EOR schemes which are expected to pay rich dividends in arresting
decline in matured fields. During FY13, two more IOR projects,
development of Western Periphery of Mumbai High South field and B-
173A field have been taken up. We have made an incremental oil gain of
7.94 MMT from the fields under IOR/EOR/Redevelopment in FY13 and
cumulative incremental gain oil gain of 79.94 MMT so far. We have
made an investment of INR 310.81 billion towards IOR/EOR
schemes.16 out of 24 IOR/EOR and development projects has been
completed.

Such calibrated capital and technology infusion for best-in-class

reservoir management maintained production in 15 major fields, which
contribute 73% of our crude production. Seven of these matured fields
registered more production than the last fiscal year. This positions
ONGC in the league of the world’s best brownfield managers.

Table 7: Our achievements vs. targets 2012-13

Criteria 12 Units Our Our % achievements
targets achievements
Crude oil production MMT 27.54 26.13 94.88
Natural gas production BCM 25.73 25.34 98.48
VAP production KTON 3,410 3,150 92.38
Reserve accretion MMTOE 83.00 84.84 102.22
Expenditure on R&D Million INR 2,512.30 6002.02 238.91
(1% of PAT of previous year)
Expenditure on CSR (0.5% Million INR 1,256.15 2,621.30 208.68
of PAT of previous year)
Expenditure on SD (INR5 Million INR 243.67 369.00 151.44
million + 0.095% of PAT of
previous year)

We have taken up intensive exploration to locate hydrocarbon reserves in FY12. The company’s net profit is INR 209.26 billion, down by 16.7%
even in challenging locales viz deep-water and ultra-deepwater regions, over net profit of INR 251.23 billion in FY12 because of sharing of
basement plays and High Pressure/High Temperature reservoirs and highest ever under-recoveries of INR 494.21 billion and increase in oil
subtle traps. Exploration and development in these regions is not only industry development cess of INR 42.14 billion. Our company’s net profit
cost intensive but technologically challenging as well. is impacted by INR 284.13 billion in FY13 (INR 255.35 billion in FY12)
and by INR 1254.77 billion cumulatively due to subsidy since inception.
We have forayed into unconventional sources viz CBM, UGC and Shale
gas. We are the first to establish shale gas presence in India. We have
planned three pilots for shale gas exploration, one in Cambay Basin in
FY14 and one each in KG Basin and Cauvery Basin in FY15. Land
acquisition and overlapping of CBM blocks with the mining blocks for
exploration and development projects remains a major constraint.
We are waiting for the award of mining lease (ML) for our UCG pilot
project in 'Vastan block' for the last three years. As such, policy
framework for exploration and exploitation of new sources of
energy remains a concern and it affects our endeavours for
unconventional sources.

During FY13, the company earned the highest ever turnover of INR
833.09 billion, an increase of 8.35% over turnover of INR 768.87 billion 34/35
Figure 5: Economic Value Generated (Billions INR) Figure 6: Economic Value Distributed (Billions INR)
494.21
444.66
82.98 83.56 84.13 84.84 382.87
408.81
63.82 68.90 317.76
282.25 280.50 280.98
48.28 47.85 47.73 47.51 47.03 46.11 248.92

115.54 103.30
68.44 70.58 67.28 74.86 83.42 81.28
47.40 57.19 67.96
2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13
2008-09 2009-10 2010-11 2011-12 2012-13
Ultimate Reserve Accretion (MTOE) Domestic Production (MTOE) Employee Benefits Subsidy shared with OMCs Dividends Contribution to Exchequer

Table 8: Financial Performance.

Financials (Billions INR) 2008-09 2009-10 2010-11 2011-12 2012-13

Total Assets 1074.06 1230.28 1480.18 1717.28 1781.27

Income from Operations 650.49 619.83 695.32 768.87 833.09

Retained Earnings (Domestic Operations) 81.19 85.48 102.22 154.53 114.97

Total Revenue - - 720.56 813.40 887.45

Net Profit 161.26 167.68 189.24 251.23 209.257

Operating Expenses 123.81 126.29 142.38 139.81 173.92

Expenses on Employees 47.40 57.19 67.28 67.96 103.30

Interest Payments 1.19 0.69 0.25 0.35 0.28

Contribution to Exchequer (Payments to Government) 280.50 280.98 317.76 382.87 408.81

Dividends to Shareholders 68.44 70.58 74.86 83.42 81.28

Under-recoveries shared with OMCs 282.25 115.54 248.92 444.66 494.21

Economic Value Added (EVA) 17.22% 22.12% 19.79% 21.36% 15.21%

During FY13, we did not receive any financial assistance from the
government.
Sharing of Under – Recoveries
In line with Government directives on subsidy on petroleum products
viz. High Speed Diesel (HSD), Superior Kerosene Oil (SKO) and
Liquefied Petroleum Gas (LPG), our share of under-recoveries with the
oil marketing companies has increased from INR 444.66 billion in FY12
to INR 494.21 billion in FY13, an increase of 11.14%. The adhoc
mechanism of sharing, resulting in increasing burden of share of under-
recoveries is a major concern for our company. Since adoption of the
mechanism cumulatively we have shared under-recovery of INR
2163.36 billion.
We have raised our concern for reforms on subsidies in various public
forums and are taking up the issue with the Government of India. In
volatile oil market and devaluation of Rupees against Dollars has the
potential to increase price of Indian crude basket. In case the
mechanism continues, it will be constraint for future investment.
Risk and Opportunities due to Climate Change
Our primary focus is on current and future energy security for the country
and our strategic goals of enhancing recovery factor, increasing
reserves and equity oil and gas from overseas assets are fully geared to
achieving this. Carbon is at the centre of our business and we are aware
of the implications of pursuing a low carbon high growth strategy. We are
guided by the National Action Plan on Climate change and its missions
on energy efficiency and renewable energy in chartering our future low
carbon footprint. This is reflected in our endeavours within our
operations to become energy and resource efficient as well as in the
pursuit of alternative sources of energy through research. Our
registered CDM projects amply demonstrate that. Through our
corporate policy of greening the vendor chain, we have boldly taken on
the role of looking at life cycle impacts on carbon and resource
management beyond the fence line of our facilities and assets. We are
envisaging in developing 6.5 GW renewable by 2030, which would
contribute to our diversified energy portfolio and reduce our carbon
footprint.
Employee Benefits
ONGC has always been one of the best employers in our country and
currently employs 32988 permanent employees (as on 31.03.2013) and
provides one of the best overall compensation and benefits package to
its employees. These benefits serve as a motivator, help attract and
retain quality human resource.
Some of the key benefits provided to our employees are:
Table 9: Employee Benefit Plans
Employee benefit plan Offered to Offered to
permanent Part-time
employees Workers
Medical coverage, Education Assistance No Yes
(through ONGC Sahyog Trust)
Assistance for marriage of girl child, Livelihood No Yes
Assistance (through ONGC Sahyog Trust)
Group Insurance Scheme Yes Yes
Comprehensive medical facilities Yes No
to employees and their dependents
Contributory Provident Fund (CPF), Gratuity, Yes No
Comprehensive Social Security Scheme (CSSS),
Post Retirement Benefit Scheme (PRBS)
Maternity/paternity/child care Leave Yes No
House Building Advance, Conveyance Yes No
Advance, Education Advance
Furniture and House Hold Goods purchase scheme Yes No
Company Accommodation at work centres Yes No

We treat all employees equally and do not discriminate them on the

basis of caste creed, religion and gender. There is no difference in
wages and equal opportunities available to all employees based on
gender. We comply with the minimum wage requirement as per the
applicable regulations at all our locations.

Our Post Retirement Benefit Schemes (PRBS) Trust manages the

pension scheme of the employees. During FY13, Trust paid INR 445.70
million net commutations to separating employees and purchased
annuity of INR 1373.50 million from Insurance Companies for the
separating employees.

Indirect Economic Impact on Community

We have ventured in geographical areas, which are considered
logistically remote and challenging and therefore had seen no or very
little socio- economic development. With our advent of our operations in
such areas we have generated jobs, built infrastructure and led to
growth of such areas.

Our procurement practices are designed to promote procurement from

technically competent vendors through competitive bidding and as such
we give preference to the local suppliers. Vendors are selected purely

36/37
on meeting the requirements of the contract and location is generally not Figure 9: Community Expenditure Category wise
a deciding factor. However, we do encourage local suppliers to
participate in our tender process.
14.42
Peoples are inducted in the company purely on merit and the
3.75 0.41
Government mandated reservation criteria for specified sections of the 38.34
community. However, we do provide employment opportunities to local
people as recruitment of non-executives are carried out locally.

29.25
Community and Environmental Investments
Our community investment increased to INR 2.62 billion in FY13, an
increase of 116.5% over FY12 (INR 1.21 billion in FY12). We have spent
38% of our community expenditure into the Rajiv Gandhi Gramin LPG
1.11
Vitaran Yojana. 1.16
5.94
0.42
1.44 1.96 1.81
Education Water management
Health Care Sponsorship of media, cultural,
Figure 7: Community expenditure (Billions INR)
Entrepreneurship sports, conferences
2.68 Infrastructure development
2.62 Grant of Financial aid/assistance
Ecological conservation &
2.20 protection of heritage sites Promoting sports/sports persons
and agencies
1.69 Promotion of artisans, craftsman,
1.21 musicians, artists Rajiv Gandhi Gramin LPG
VitranYojana (RGGLVY)
Empowerment to women &
challenged

Figure 10: Beneficiaries Category wise

2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2151

278249
Our environmental expenditure has also seen a consistent increase 464
over the past five years. Our environment expenditure increased to INR 9500
5.90 billion, an increase of 19.2% over FY12 (INR 4.95 billion in FY12). 3275
Our environmental expenditure consists of procuring new technology or 11500
intervention related to environmental protection; training, consultancy 750

and awareness workshops; biodiversity conservation such as

mangrove and Ringal plantation.

Figure 8: Environmental expenditure (Billion INR) 717786

5.90 Education
5.10 4.95 Healthcare
4.38
3.75 Entrepreneurship
Promotion to artisans, craftsman, musicians, artists
Empowerment to women & challenged
Sponsorship of media, cultural, sports, conferences
Promoting sports/sports persons and agencies
Rajiv Gandhi Gramin LPG Vitran Yojana (RGGLVY)

2008-09 2009-10 2010-11 2011-12 2012-13

Rajiv Gandhi Gramin LPG Vitaran Yojana
(RGGLVY)
“Rajiv Gandhi Gramin LPG Vitaran Yojana (RGGLVY)” was
launched on October 16, 2009. The Scheme aims at setting up
small size LPG distribution agencies in order to increase rural
penetration and to cover remote as well as low potential areas
(locations having potential of 600 cylinders (refill sales) per
month).
Coverage
The scheme is currently being launched in all states across the
country.
Salient features of the scheme
• The agencies under the RGGLV will be of small size requiring
lesser finance/infrastructure. These agencies would be viable
with monthly refill sales of 600 against 2,500 at present.
• The agencies would penetrate deeper into the rural areas
where regular distributorships become unviable due to the
scale of operation and investment. RGGLV distributors may
be viable for around 1,500 customers in the cluster of villages
being served.
• These agencies will be self-operated: The distributorship
himself will manage the agency, with the help of his family
member and one or two employees.
• There will be no arrangement for home delivery.
• Age limit for the distributor is being kept as between 21 and 45
years leading to new employment opportunities for the rural
youth.
• Distributor under the scheme will have to be a permanent
resident of the village(s) covered by particular location.
• Under this scheme, all agencies will be in the joint name of
husband and wife. In case of applicants who are single, an
undertaking will be obtained that after marriage, 'Spouse' will
automatically deem to become 'partner'. This will be a step
towards empowerment of rural womenfolk.
• The likely capital expenditure for setting up of a new RGGLV
distributorship will be about ` 3.21 lakh with land measuring
20 meter X 24 meter being owned by the candidate being an
essential requirement.
• The distributor will be able to recover the capital expenditure
by the time 1,800 new LPG connections are released. The
indicative net income of the distributor would be about ` 7,500
per month.
• An important feature of the scheme is that no interviews
would be conducted and selection of the distributors would be
by draw of lots from amongst all candidates who have
secured more than 80% marks on the criteria of financial
capability and educational qualifications.
• 25% of the locations would be reserved for SC/ST categories
in the respective states. 25% reservation for the categories of
Defense Personnel/Para Military Personnel/Physically
Handicapped/ Outstanding Sports persons would be clubbed
under one common category. In the common category, if no
candidate is found, then the advertisement next time would
be under open category.
38/39
ENVIRONMENTAL
PERFORMANCE

40/41

“We firmly believe sustainable development solutions can be
evolved into a business model of a company, thereby creating
value for the company and its stakeholders. At ONGC we are
working towards solutions that will lead to a sustainable and
prosperous future, ensuring business continuity and the
wellbeing of environment, society and the nation.”
ONGC demonstrates its commitment toward sustainability through
carefully designed functions and acts. The most prominent act is to
create an independent corporate group for Sustainable Development,
called Carbon Management Group, in 2007. The Group has since
been rechristened as Carbon management & sustainability group
(CM&SG) with a wider and more encompassing mandate. The
bouquet of activities, projects and initiatives across the organisation is
steered by a Board Level Committee on CSR & Sustainability at the
apex level and by Carbon Management & Sustainability Group at the
corporate level.
MANAGEMENT APPROACH &
PERFORMANCE – ENVIRONMENT
Our exploratory and production activities are spread across more than 400
operational establishments on-land and in the high seas. Processing of
crude oil and natural gas is carried out at the Uran, Hazira and Ankleshwar
plants. Operations at the on-land exploration and production installations
[drilling rigs, Group Gathering Stations (GGS) and Central Tank Farms
(CTF)] are different in nature and scale from those at Uran, Hazira.
Offshore installations have their typical operational requirements owing to
their specific logistical and locational environments.
* Director (Exploration) holds an additional responsibility of Carbon Management & Sustainability Group in the absence of regular Director (Onshore).
Insight from Director (Exploration) -
Director I/C Carbon Management
& Sustainability Group *
This demonstration of commitment starts best with customised policies to
steer plans and action. We are one of the few organisations of our size in the
country to have an umbrella policy on Sustainable development. Besides, we
have a policy on “Sustainable Water Management and one on “Greening the
vendors chain” towards greening the procurement process.
Our aim is to achieve sustainable growth through proper eco
management. ONGC has undertaken Eco Foot Printing (Water, Carbon
& Waste) of the entire operations to develop a comprehensive eco
inventory of the organization. As a knowledge and technology driven
company ONGC's approach towards sustainable growth is primarily
through carbon management and low carbon growth. ONGC is inspired
by the Prime Minister's “National Action Plan on Climate Change”, which
calls for environmental sustainability through Indian corporate and has
undertaken some path breaking initiative. ONGC has 10 registered
CDM projects with an accruable CERs of 1.9 Million per annum. ONGC
has also been undertaking Methane Reductions Projects across its
production facilities in association with the United States Environmental
Protection Agency (USEPA). Our effort towards sustainable growth has
started bringing result. In 2012-13 the GHG emission reduced by 5%
and fresh water consumption by 15%.
Besides, our strength in Sustainable development lies in the R&D on
renewable energy sources, newer GHG mitigation through algae,
collaboration with global leaders in this area and also in the transparent
reporting through annual sustainability report.
It is becoming increasingly necessary for organisations to work on the
path of sustainable development and also communicate with
organisational stakeholders in the sustainability context. ONGC has
started sustainability reporting four years back which has now been
internalised. This is ONGC's 4th such report with its TBL performance.
Input materials for the exploration and production activities include
industry specific mud, water, cement, tubular and chemicals and various
engineering devices. Exploration and production activities produce
primary products-crude oil and natural gas. In addition to crude oil and
natural gas, we produce value added products - LPG, Naphtha,
Kerosene, ATF, HSD, LSHS and C2-C3 (Ethane-Propane). We maintain
strict government guidelines to keep the harmful ingredients in our VAP
such as benzene and sulphur within the prescribed limit.
Back to Contents
The marketing policy and practices are governed by the existing
government guidelines. We market our products through OMCs
however, some product we market on our own.

We have promoted a joint venture with The Energy Research Institute

(TERI), ONGC TERI Biotech Ltd for utilization of cutting edge
biotechnology in oil & gas applications to help reduce environmental
impacts as well as enhance production without adverse environmental
impact. All our major projects factor considerations in the design stage
to minimize environmental impact and in subsequent stages of project
expansion, modernization etc. We have dedicated institutions at
Mumbai and Goa (IEOT, IOGPT & IPSHEM) to continually assess
needs for environmental tools, and accordingly identify, design and
implement the initiatives effectively.

We have our robust process of internal audit and management review

for QHSE management system and regularly review our QHSE policy
and map our risks. We have developed our corporate guidelines on
incident reporting, investigation and monitoring of recommendations
and have implemented it uniformity throughout the organization in line
with international practices. Some of the standout features of the
Company's exemplary HSE practices are – Regular QHSE internal
audits, Fire safety measures, regular fire and earthquake mock drills,
Health Awareness programs, water and electricity conservation,
Material Safety Data Sheets (MSDS), Personal Protective Equipment
(PPE), and identification and implementation of Environment
Management Programmes (EMP) and Occupation Health and Safety
(OHS) programs as per need of the units, near miss and Governance,
Risk and Compliance (GRC) reporting.

Given the nature of our operations, we often use mobile

installations/tools viz drilling rigs, seismic crew, logging units etc. The
varying size, scale and nature of operations of these installations/tools
result in varying patterns of energy, material usage and environmental
footprints. Uran and Hazira are akin to large scale petro-chemical
complexes. The scale and heterogeneity of our operations presents
unique challenges for data capture across a universal set of
environmental performance indicators.

We are conscious of the extreme and unpredictable conditions that we

operate in. Ever cognizant to the effects of incident of oil spill
internationally, we have renewed our resolve to strengthen our
processes, technology and human resources to meet the challenges of
operating in some of the most hostile environments. We realize the
importance of retaining the integrity of our production
infrastructure in order to obviate situations leading
to oil spillage in offshore operations that are usually
accompanied with serious damage to life and
property, besides disruption of operations.

42/43
We have identified a key position at corporate level who works in tandem Risk assessment and control
with Head – HSE and Safety Officers across our assets, basins and
plants constituting the operational layer of the organization structure for We have implemented QHSE management systems conforming to
effectively managing and reporting safety performance. Chief HSE requirements of ISO 9001, OHSAS 18001 and ISO 14001 at ONGC
reports to Director I/C HSE. The Board level committee on HSE and SD facilities and are certified. Corporate guidelines on incident reporting,
reviews the performance on HSE. investigation and monitoring of recommendations has been developed
and implemented for maintaining uniformity throughout the organization
Figure 11: Health, Safety & Environment
in line with international practice.
Chief HSE
In ONGC all hazards are mapped and
associated risks are evaluated,
Assets/ Basin/ Plant Assets/ Basin/ Plant Head Offshore Safety
Manager HEAD HSE Mumbai quantified and brought to acceptable
Assets Manager Asset/ Drilling Services level through work procedure and
Head Drilling Serv Head HSE
FPS/ Tool Pusher Offshore Platform/ Rig Mumbai Offshore management plans. Emergency
Safety Officer
I/CHSE Coordination preparedness is part of the system. Our
Assets Surface Western Offshore
Manager/ Head DS Surface/ Drilling Services Sector, Mumbai Institute of Engineering and Ocean
Onshore-installation/ Head HSE
Inst. Manager/ D.I.C Rig Safety Officer Technology (IEOT) act as a nodal
Mumbai Mumbai agency to carry out HAZOP and QRA
Head DS I/CHSE, DS I/CHSE Coordination
Head ES I/CHSE, ES Western Onshore studies in association with Institute of
Head Logging I/CHSE, Logging Sector, Vadodara
Head Well Services I/CHSE, Well Services Petroleum Safety Health and
Head off. Logistics I/CHSE, Off Logistics,
Environmental Management (IPSHEM),
Asset/ Basin Respective Asset/ Basin I/CHSE Coordination Institute of Oil and Gas Production
Manager Head HSE Southern Sector
Chennai Technology (IOGPT) and Institute of
Head Asset
Drilling Services
I/C HSE, Drilling-Serices
(Onshore Asset)
Drilling Technology (IDT). We are
evolving our data management system
Asset Surface I/C HSE, Surface Group I/CHSE Coordination
Manger (Onshore Asset) Eastern & NE Sector to manage the data in a comprehensive
Kolkata
manner. We are reporting energy,
Head Well Services
Asset/ Basin
I/C HSE, Well Services
(Onshore Asset) Emissions, Effluents, Waste and other
environmental data separately for
Head Loggin Serv.
Asset/ Basin
I/C HSE, Logging
Services-Onshore Asset installations and plants.

In FY13, we have not paid any fines or

Head GP Services I/C HSE, Geophysical
Asset/ Basin Services faced sanctions for non-compliance with
environmental laws and regulations.
 Figure 12 : Energy Consumption 2008-12 (TJ)
Managing our Diverse Operations
117,608 116,111
The environmental impacts of our operations on land, air and water are 97,376 105,127 108,126
similar to those of other upstream oil and gas companies. Our
exploration activities result in transient to very short-term impacts of low
956 1049 2014 2075 2273
significance and are managed through appropriate technological
interventions. Impacts due to drilling and production activities vary from
2008-09 2009-10 2010-11 2011 -12 2012-13
short to long-term and include change in land use pattern, generation of
Total Direct Energy (TJ) Total Indirect Energy (TJ)
wastes, emissions and potential surface disturbances. One of our waste
streams that has been of concern to us is produced water; water that Reduction in environmental Impact from Energy Consumption
occurs naturally in the formation and is ejected out while drilling.
To reduce our energy consumption and its impact on environment, we
We manage our impacts by adopting system approach for all our have followed a two pronged approach:
activities and operations. We have adopted cutting-edge environmental
technology improvements including vapour recovery units, engine Replacement of fossil fuel use through increased focus on renewable
upgrades, closed-loop drilling fluid systems, and recycling/reuse of energy
treated produced water to reduce and minimize our impacts. Many of Energy savings through energy efficiency and other measures
these technologies and approaches are promoted by global industry
initiatives such as the USEPA steered Global Methane Initiative. Increased focus on Renewable Energy

We are aware that in-spite of policy initiatives, program developments,
and industry practices, significant environmental concerns such as oil
spill, major fire break out and leaks still exist. These challenges require
to be addressed with the collective involvement of regulatory agencies,
industry, and stakeholder representatives.
Our Energy Performance
Energy Consumption
ONGC has a built-in environment-focus in its business model. Moving
towards a low-carbon green energy regime, we are aggressively
pursuing renewable. We have a plan to generate 6.5 GW of renewable
energy from wind, solar and nuclear under PP2030 plan. This
aggressive venture may provide a boost to renewable energy
generation in the country.

Our direct consumption has decreased marginally because of less

consumption of natural gas in FY13. Our indirect energy consumption
has increased substantially at Uran Plant due to scheduled
maintenance of the turbine generator and purchasing electricity from
the grid to bridge shortfalls in FY13.

Table 10: Direct energy consumption13 (TJ) at Plants (Uran and Hazira) 2008-12
Fuel Consumption (TJ) 2008-09 2009-10 2010-11 2011-12 2012-13
Natural Gas 18,883 17,326 16,519 19,032 20,068
HSD 3.74 1.38 1.70 4.17 3.64

Table 11: Direct energy consumption (TJ) at other installations 2008-12

Fuel Consumption (TJ) 2008-09 2009-10 2010-11 2011-12 2012-13
Natural Gas 66,322 74,564 79,228 86491 83,557
HSD 11,916 12,963 12,123 11,842 12226
Aviation Fuel 250 271 254 239 255

Table 12 : Indirect energy consumption (TJ) at Plants (Uran and Hazira) and other
installations 2008-12
Electricity Consumption (TJ) 2008-09 2009-10 2010-11 2011-12 2012-13
Plants 8.18 30.07 26.81 6.77 13.94
Installations 947.32 1018.87 1986.85 2068.28 2258.76

13
1 TJ is equivalent to 0.2465 MMSCM of Natural Gas
1 TJ is equivalent to 26.9499 KL of HSD
1 TJ is equivalent to 29.2590 KL of ATF
1 TJ is equivalent to 277.78 MWH of Electricity
SCM standard cubic metre natural gas at 101,325 Pa and 15°C, DRY 44/45
Wind Power:
Our target is to have 2 GW wind power generation capacity (onshore
and offshore) by 2030.
We have commissioned 51 MW wind power project in Jhakau, Gujarat
and is operational since 2009 and have generated 94.04 Million Unit. We
are installing a 102 MW wind power project in Rajasthan, with an
investment of INR 6,780 million, which is scheduled to be commissioned
by mid-2014. In addition, a Hybrid power system (Solar panel and Micro
wind turbine) on 16 unmanned platforms in western offshore is also
under implementation.
Solar Power:
We are targeting 1.5 GW in solar power generation by 2030. We have
taken up a project to convert solar energy directly into grid quality
electricity using sterling technology. We are acquiring equity stake in
promising solar photo voltaic technology for further development.
Nuclear Power:
We are targeting 3 GW of nuclear power generation in collaboration with
Nuclear Power Corporation Limited, India by setting up six nuclear plants,
each with a capacity of 1,740 MW. We plan to explore and harness sub-
surface uranium sources through in-situ Leaching (ISL) in technical
collaboration with Atomic Mineral Directorate (AMD), Hyderabad.
14
Total savings are ` 4,288.5 Million, These have been converted in MWh by taking unit cost as `6/KWh.
These moves are perfectly in sync with our aim of generating 30% of our
revenue from non-exploration and production business by 2030.
In addition, other renewable projects have been initiated at various
locations:
• 25 KW solar power plants for street lighting in KDMIPE campus.
• 15 KW solar power plants at GEOPIC.
• 12 KW solar power plants at IRS, led to a saving of 20,000 units
(KWh).
• Solar Street light for illumination of remotely located CBM wells, led
to reduction of diesel consumption.
Energy Savings through Energy Efficiency and other Measures
We have saved over 714,750 MWh14 , by adopting different energy
conservation measures at various installations, resulted in reduction of
significant quantity of natural gas consumption. Energy conservation
measures were primarily focused on energy audits, gas flaring reduction
measures, use of bi-fuel technology, and use of efficient lighting
systems.
Reduction in Gas Flaring
Gas flaring has been reduced to 631 MMSCM in FY13, a reduction of
22% over FY12 (807 MMSCM in FY12). This has been done primarily
through installation and updation of facilities and technological
interventions such as installation of compressors and pipelines, better
utilization and marketing of low pressure gas, isolated low volume gas
and adopting innovative measures as GTW (Gas to Wire). Considering
FY02 as the base year, these measures have resulted in meaningful
utilization of 467 MMSCM of gas in FY13 alone.
We have identified a key position at corporate level who works in tandem
with Head – HSE and Safety Officers across our assets, basins and
plants constituting the operational layer of the organization structure for
effectively managing and reporting safety performance. Chief HSE
reports to Director I/C HSE. The Board level committee on HSE and SD
reviews the performance on HSE.
 • Continued replacement of existing conventional fluorescent tube
light fittings with energy efficient T-5 type fluorescent fittings with
electronic ballasts.

• 12 numbers of compressor houses lighting has been made on auto

mode (Timer mode) with in-house efforts, led to a saving of 273,312
KWh of electricity.

Energy Saving Initiatives

Uran

• Implemented energy conservation project “Recovery of Additional

Rich Gas from CSU through stripping by Rich Gas.”, led to a saving
of INR 59 million per year.

• Replacement of RGT with a synchronous motor of 3.35 MW in

LPG-1, led to gas saving of 4.8 MMSCM.

• Installation of Steam based VAM at Cogen Plant, led to a saving of

342,000 KWh.

• Improvement of power factor in Uran Plant led to savings of INR

3.12 million.

Hazira

• Provision to make up LP gas to KRIBHICO gas from MP header,

instead of HP header with an aim to increase capacity utilization of
LPG plant. Expected saving will be INR 210 million per year.

• Replacement of 24 number of old 160 watt MLL light fittings with

energy efficient 125 watt HPMV fitting, resulted in energy savings
of 3.68 MWh.
The following other measures were taken towards energy conservation:
• Replacement of nine air handling units with more energy efficient
• Pilot project of Bi-fuel technology for utilization of associated gas led to savings of 249,660 KWh of electricity.
@1,000 SCMD from the well MSAA for running drilling rig power
• Replacement of lighting with more energy efficient auto mode has
packs deployed at MSDB (cluster well). This has resulted in 40%
led to savings of 273,312 KWh.
reduction of HSD consumption and additionally helped in reduction
of gas flaring. Our energy saving for the last two years is:
2012-13: 779.72 million units
• Conducted 208 energy audits in the year as against our MoU target
2011-12: 743.63 million units
of 195 audits.

Figure 13: Flaring (BCM) 2008-12 Figure 14: Specific Flaring (BCM/MMTOE) 2008-12

0.71 0.69 0.020

0.021
0.57 0.56 0.53 0.017 0.016 0.016

0.007 0.005 0.006 0.009 0.007

0.09 0.07 0.07 0.12 0.10
2008-09 2009-10 2010- 11 2011-12 2012-13 2008-09 2009-10 2010- 11 2011-12 2012-13

Onshore Flaring Offshore Flaring Onshore Flaring Offshore Flaring

46/47
Figure 15: Savings due to energy conservation measures Our emissions from air and rail travel (SCOPE 3) are 23443 tCO2e 16 in
(Billion INR) - 2008-12
FY13, a reduction of 0.53% over FY12 (23568 tCO2e in FY12). We have
5.00 deployed Video Conferencing systems across significant locations for
meetings and conferences to mitigate our business travel related
4.00 emissions.

3.00 CDM Projects

2.00 4.09 4.29 Sustainable development in ONGC, as a formally structured corporate

3.50 3.75
initiative, had a modest beginning in 2005 for developing CDM projects.
1.00 The initiative tasted early success with the identification of a number of
1.67
CDM projects across ONGC and securing host country approval. The
0.00
first CDM project was registered in February 2007. Since then 8 CDM
2008-90 2009-10 2010-11 2011-12 2012-13
projects have been registered by March 2013, largest in terms of the
number of projects by an Indian company. More projects have been
Environmental Impact from our Emissions offered for development. 132417 CERs were credited in FY13.

Our Carbon Footprint

A critical area of environmental sustainability is mitigation of global

greenhouse gas from operations. It is an organizational objective for us
to progressively reduce our carbon footprint, by working towards
reduction in both direct and indirect GHG mitigation. We have conducted
a comprehensive, organization wide Greenhouse gas emissions
inventory assessment 15. As per the study, our significant emissions are
Carbon -dioxide (88%) and Methane (11%).

The major sources of emissions are flaring of natural gas, exhaust from
running of DG sets, use of heavy equipment, construction activities,
movement of vehicles, etc. We have achieved reduction in our absolute
Greenhouse gas emissions first time in past six years. We have reduced
our direct emissions by 5.93% although our indirect emissions has
increased marginally. This reduction has been possible due to the
savings in energy consumption viz natural gas, reduction in flared gas,
capturing of fugitive methane and increased use of renewable energy in
our overall energy mix.

Figure 16: Emissions from direct & Indirect energy consumption

0.52
0.22 0.24 0.46 0.47

7.93 8.03 8.13 9.21 8.59

2008-09 2009-10 2010-11 2011 -12 2012-13

Direct Emissions Indirect Emissions

Figure 17: Emissions from various Sources

8.00
5.98 5.81 2011-12 2012-13
6.00

4.00
1.88
2.00 1.45
0.88 0.91
0.46 0.40 0.47 0.52
0.02 0.02
0.00
Natural Gas High Speed Diesel Air Turbine Fuel Fugitive Emissions Flaring Indirect Emissions

15
We use Greenhouse Gas Protocol and GHG Compendium by American Petroleum Institute.
16
The air travel emissions were measured as per guidelines provided by DEFRA and for rail travel we used emission factors published by World Bank
CDM Project (as on 31st March 2013) Date of Registration CER per annum Methodology
Waste heat recovery from Process Gas Compressors 5 Feb 07
th
5,320 AMS-II.D. ver. 7
(PGCs), Mumbai high south (offshore platform) Energy efficiency and fuel switching
Up-gradation of Gas Turbine 1 (GT 1) and Gas Turbine 2 1st Mar 07 7,802 AMS-II.D. ver. 8
(GT 2) at co-generation plant of Hazira Energy efficiency and fuel switching
Gas Processing Complex (HGPC) measures for industrial facilities
Flare gas recovery project at Uran plant 14th Dec 07 97,740 AM0037
Flare reduction and gas utilization at
oil and gas processing facilities
Flare gas recovery project at Hazira Gas 16th May 08 8,793 AM0037 ver. 1
Processing Complex (HGPC) Flare reduction and gas utilization at
oil and gas processing facilities
Energy Efficiency of Amine Circulation 23rd Sep 09 4,043 AMS-II.D. ver. 11
Pumps at Hazira plant Energy efficiency and fuel switching
measures for industrial facilities
51 MW wind power project of ONGC at Surajbari 1st Mar 10 85,762 ACM0002 ver. 7
Consolidated methodology for grid-
connected electricity generation
from renewable sources
Energy efficient green building at Mumbai 5th Oct 12 544 AMS-II.E. ver. 10
Energy efficiency and fuel switching
measures for buildings
Green Building at Dehradun 9th Oct 12 735 AMS-II.E. ver. 10
Energy efficiency and fuel switching
measures for buildings

48/49
 Green Building
The year 2012-13, holds a special significance as two of our Green Building projects—at Mumbai and Dehradun have been registered. The
other two buildings—at Delhi and Kolkata have been validated and sent to UNFCCC for registration. ONGC has entered into a new foray in the
CDM arena related to energy efficient buildings. Across the globe, only a few energy efficient buildings have been successfully registered so far
for their entire energy efficient features.

The buildings are being constructed for the Platinum Rating under USGBC’s LEED rating system. The projects are an initiative to provide eco-
friendly and energy efficient workspace. Various green features have been incorporated in the design with intricate equipment/system selection
procedures to ensure the maximum adherence/value engineering to the design intent. The purpose of the project activity is to reduce the grid
power consumption, thereby reducing the greenhouse gas emission. Further, the buildings are designed on sustainable and environment-
friendly architectural concept resulting in environment protection, water conservation, energy efficiency, usage of recycled products and
renewable energy. An Integrated Building Management System (IBMS) will manage the HVAC, lighting, power, individual access control,
vehicle access control, parking, fire detection & control, lifts, water & waste disposal management, office automation processes and
communication processes in these buildings.

Our Green Building- "Green Hill" at Dehradun

Global Methane Initiative Indian Oil & Gas Industries. ONGC has procured the relevant equipment
to undertake leak detection and measurement of hydrocarbons at
The Global Methane Initiatives is an action-oriented initiative from ONGC production facilities and has developed a system of periodically
United States Environmental Protection Agency (USEPA) towards measuring & monitoring hydrocarbon leak/emissions across the
reducing global methane emissions to enhance economic growth, installations. A core team has been trained in the use of these leak
promote energy security, improve the environment, and reduce detection and measurement equipment in collaboration with USEPA
greenhouse gases. The Partnership currently focuses on five sources of and has completed leak detection and measurement of hydrocarbon at
methane emissions: Agriculture, Coal mines, Landfills, Waste water and more than 60 major installations. During the reporting period, ONGC
Oil and gas systems. GMI aims at bringing together industry, NGOs, reduced approx. 2.44 MMSCM of methane from emitting into the
national governments, and other stakeholders to advance project atmosphere by using number of technological interventions. The
development around the world. methane saved is equivalent to reducing approx. 34700 ton of CO2e
from emitting into the atmosphere. During the last 4 years, ONGC has
ONGC has an on-going MoU with USEPA to undertake field based leak reduced approx. 13 MMSCM of methane from emitting into the
detection and measurement/estimation of Fugitive Methane in its atmosphere (reducing approx. 185000 ton of CO2e from emitting into the
production facilities and can be considered a trailblazer among the atmosphere).
Figure 18: Methane reduction (MMSCM) As a policy, we do not do any cold venting. However, venting do occurs
3.2 4.72 2.44 from the wet seal degaussing vent of centrifugal compressors, fixed roof
1.99
0.62 crude storage tanks and reciprocating compressors seal etc. We are
progressively measuring those vents under the GMI program.
2008-09 2009-10 2010-11 2011-12 2012-13
Other Emissions
We have installed real time monitors at major installations and mobile There are no other ODS emissions from production, substances
ambient air quality monitoring vans are in use to keep track of air destroyed by technology or substances used as feedstock. We operate
pollutants. Air monitoring is also carried out by third parties, approved by as per our specific approvals of the Ozone cell of the Ministry of
the respective state pollution control boards. Noise pollution levels are Environment and Forest.
measured through in house facility as well as through external agencies.
Table 14: SOx and NOx emission Water Management
In tonnes Uran Hazira ONGC is committed to the development of water management practices
2011-12 2012-13 2011-12 2012-13 in a sustainable and responsible manner as an integral part of its
SOx 42.25 29.20 187.16 85.34 corporate vision. ONGC is managing water resource as per its policy on
NOx 595.12 329.53 517.99 252.85 sustainable water management.

Our plants are energy efficient and we closely monitor the air and water In ONGC, we have seen a 15% reduction in fresh water consumption
quality. Our emission level in the plants is well below the permissible limit this year. This has been possible due to increased awareness towards
as stated by the SPCB. use of fresh water achieved due to sustained closed interactions with
employees and also due to number of initiatives towards this such as
Ozone Depleting Substances closed water monitoring at Mehsana Asset.
We use Halon based fire suppression systems at our offshore In order to conserve the natural resources by reducing the fresh water
installations. Halon is ozone depleting substance and due care is taken consumption, we inject the treated effluent (produced water) to the
to ensure there are no leakages in the atmosphere. Still, accidental extent possible for the purpose of maintaining the reservoir pressure
leakages do happen during maintenance or training exercises. This year and during the drilling operations.
we have seen an increase in the Halon emissions.
Figure 19: Freshwater consumption 2008-12 (Billion Litres)
Table 15: ODS use 2008-12
40.00
Year 2008-09 2009-10 2010-11 2011-12 2012-13 31.14 30.26
Quantity (Kg) 2765.8 8895 4305.8 3744 6182 30.00 23.60
CFC11 equivalent 27658 88950 43058 37440 61820 25.79
20.00
21.68
To counter this, all our new offshore installations come equipped with 10.00
clean–agent based fire extinguishing system as per current National
0.00
Fire protection Association (NFPA) Standards.
2008-09 2009-10 2010-11 2011-12 2012-13

50/51
Figure 20: Fresh Water Consumption at Plants and other Installations 2008-12
(Billion Litres)
0.47

16.08

16.41
67.05

Fresh Water (Ground Water Sources)

Fresh Water (Municipality Sources)
Fresh Water (Surface Sources)
Fresh water supplied for offshore
installations

Figure 21: Fresh water consumption by source (Billion Litres)

12 12 20 22 19
12 10 11 8 7
2008-09 2009-10 2010-11 2011-12 2012-13

Other Installations
Plants (Uran & Hazira)

Water Footprint
Water Footprint is a tool which can be used by the companies to measure the total fresh water requirements to produce goods and services and
in process identify risks and opportunities associated with consumption of water. It investigates how the company uses water currently and how
it discharges waste water.

ONGC has undertaken as midterm project of water mapping of its onshore installations for framing up a sustainable water management
programme. We have already completed water footprint of Uran plant and Mehsana plant. In 2012-13 we have undertaken water footprint of
Cauvery Asset and Tripura Asset.

Rain Water Harvesting

The corporate policy of ONGC promotes 4R philosophy – Reduce, Reuse, Recycle and Replenish. Under this policy we are using rain water
harvesting system as a mechanism of replenishment. ONGC has taken a long term project on RWH across its work centre. Year 2012-13 was
the first year of the project and for the year focus was on creating suitable facilities and infrastructure across four of its work centres (Vadodara,
Tripura, Rajahmundry and Ahmedabad)
Waste Management
Solid Waste
Waste has been recognized as one of the key sustainability issue for
FY13. We are in the process of understanding our waste generation and
its impact on the environment. To start with, our efforts have been
concentrated on e-waste.
Another important source of pollution which may contaminate the land is
drill cuttings, drilling fluid and generation of oily sludge from cleaning of
storage tanks and from various process units of effluent treatment
plants. The tank bottom sludge and oily waste ware identified as
hazardous waste and is disposed-off according to the local statutory
guidelines. Oily sludge removed periodically is treated by the
environmentally sound bioremediation technique using a consortium of
bacteria known as Oil Zappers and is rendered non-hazardous. In FY
2012-13, 21900 MT of oily sludge was treated using the Oil Zapper
method of microbe based bioremediation at our plants and installations.
In the reporting period, we have recycled and reused 7.65 billion Litres of
produced water, which is 11.78% of produced water. The remaining
88.22% of produced water is injected back into the reservoir and into the
sub surface disposal wells.
Spill Management
In offshore operations, ONGC handles and transports crude oil through
pipelines and tankers. For combating minor oil spills (Tier-I: upto 700
tons of oil spill), the facilities exist with ONGC. For major oil spills, we
have renewed the agreement with OSRL, U.K. an internationally
reputed oil spill response organization. We have an agreement with
Mumbai Port Trust (MbPT), Jawaharlal Nehru Port Trust (JNPT) and
other participating oil companies (RIL, Cairn Energy and GSPC) for the
implementation of the National Oil Spill Disaster Contingency Plan
(NOS-DCP) within Mumbai harbour. We have Coast Guard approved
Oil Spill Contingency Plan in East Coast and an agreement with BG for
pooling of Oil Spill Response in West Coast.

Land is normally acquired by ONGC for short duration to carry out

drilling activities. The land degradation takes place during drilling
operations due to discharge of waste water from various sources. The
land acquired for drilling activities is reclaimed/ restored to normal
before returning back to land owners.

Produced Water/ Effluents

Produced water, the water produced along with the oil and gas, is the
major effluent for the company as part of its production activities. The
produced water, which is part of well fluid is separated and sent to
Effluent Treatment Plants (ETPs) for further treatment. We operate
twenty two ETPs to treat the effluent generating at onshore Installations.
In order to cope up with enhanced liquid production due to high water
cut because of aging of oil fields twenty one new/ substitute ETPs have
been planned /under construction.

At drill sites waste water generated during drilling activities is collected in

a waste pit lined with High Density Poly Ethylene Sheets (HDPE). The
waste water from waste pit is recycled for mud preparation and other
uses. In North East Sector, where heavy rainfall takes place, waste
water is treated by mobile ETPs and reused to avoid overflow of water
from waste pits to nearby areas.

In onshore locations, part of treated produced water is used for water

injection into the reservoir for pressure maintenance; the remaining
quantities are re-injected into sub surface disposal wells located 1000
meter underground. In offshore location, treated produced water is
disposed 40 meter below the sea surface.
Table 16: Produced water
Locations Produced water (Billion Litres)
2011-12 2012-13
Plants (Uran and Hazira) 0.82 0.62
All other installations 55.14 64.38

52/53
ONGC personnel along with resources like long booms, oil skimmers,
dispersant chemicals and OSVs / MSVs take part in oil spill exercises
conducted by Indian Coast Guard regularly as per National Oil Spill
Disaster Contingency Plan (NOS-DCP).
In FY13, there is no reported case of oil spills as per the tier I, II and III.
Oil Spill Categories
Tier I: Pertains to facilities to combat oil spills of a minimum of
100 to 700 tons
Tier II: Pertains to combined total facilities to combat oil spills up
to 10,000 tons
Tier III: Pertains to capability of responding to oil spills of more
than 10,000 tons
Recycle of Materials
ONGC is committed to recycling of materials and do so wherever
feasible. ONGC’s Mehsana asset has established effective
infrastructure to control the expenses, non-optimal usage of costly
materials, ground water and also to effectively manage the waste
disposal and has upgraded the existing mud preparation plant through
enhancing the mud preparation and storage capacity.
Mehsana Asset is now transporting the costly polymer based mud from
drill sites to centralized mud plant for treatment and storage and
thereafter sent to other drill sites, where new wells are under drilling.
Drilling being our most water intensive operation, recycling of drilling
mud has effectively reduced our water consumption 120 million litre of
ground water.

Oil Spill Management exercise Ecosystem Services and Biodiversity

Indian Coast Guard conducted fourth national level pollution ONGC does not own, lease, manage in, or is adjacent to, protected
response exercise NATPOLREX-IV during December 13-14, 2012 areas and areas of high biodiversity value outside protected areas. As
at Kochi. The first ever exercise at Kochi involved one day table top such we do not have activities, products and services that have
exercise on Dec 13, 2012 by creating a mock scenario of oil spill from impacted on biodiversity. For each of our operational site, we have
Environmental Management Plans in compliance to the environmental
a tanker Motilal Nehru off Kochi with consequence of spilled oil
regulations, which includes forest, biodiversity and marine ecosystem
reaching various sensitive location nearby including beaches and
conservation. However, we have not assessed and monitored the bio-
port. The stake holders, including Oil Spill Response Limited (OSRL)
diversity risk across our operational areas.
participated in Table Top exercise followed by Mock drill.
ONGC has always given great importance to tree plantation with
emphasis on survival of planted saplings. ONGC has commitment to
Materials protect environment and arrest climate change agents in the written
Our key material consumptions are as under: documented form of HSE policy as well as Climate Change and
Sustainability Policy. Forests are great preserver of land biodiversity and
Material 2010-11 2011-12 2012-13
are not just trees, but part of ecosystems that underpin life, economies
Cement (MT) 53,793.52 54,642 59443 and societies. However, we have taken up projects for conservation of
bio-diversity:
Tubular (M) 1,420,321.34 1,255,206 1,422,757

Chemicals (MT) 60,094.29 70,477.63 52,303 Ringal Plantation: We are working on a long-term project to plant
Ringal Bamboo in the fragile Upper Himalayan Region which is also
Lube Oil (L) 1,545,197.2 36,76,626 29,31,534 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
In the reporting period our cement and tubular consumption have
marginally increased. This is due to our increased drilling activities.
Our Chemicals and Lube Oil consumption have been reduced
substantially by (26% and 20 %) in the reporting period. This is due
to increased recycling of drilling fluid (mud) and the use of latest
best in class power packs across our operations. We are the first to
establish shale gas presence in India. As such being a beginner in
the shale gas exploitation arena, we are not prolific user of
chemicals used in hydraulic fracturing such as acids, biocides,
breakers, clay stabilizers, corrosion inhibitors, cross-linkers, friction
reducers, gelling agents, iron controllers, scale inhibitors,
surfactants. Our use is limited to the extent of our exposure to such
condition, where hydraulic fracturing is a requirement.
Environmental impacts of fraking are the issues being dealt by us
with technology enabled mitigation techniques with global partners
experienced in shale plays.
area of 730 hectares. Under Phase I and II, 0.7 million plants in Upper
Himalayas were planted in the area of 280 Hectares forest area. We
signed a project agreement with Hemwati Nandan Bahuguna Garhwal
University, Srinagar, for third party verification of Ringal Plantation under
phase II. Phase III of Ringal plantation is already launched for planting
0.375 million plants in 150 Hectare in upper Himalayas.
Mangrove Plantation: ONGC has undertaken massive mangrove
plantation drive in operational areas. In Phase I of the project, 1.2 million
saplings and about 0.5 million seeds and propagules were planted in the
soil erosion-prone area along the coast of the Dhadar river at
Ankleshwar. Following the success of the Phase I of 'Mangrove
Restoration and Conservation Education Project' at Ankleshwar, ONGC
has gone for the continuation of the mangrove plantation at Ankleshwar
and Hazira. Mangrove Plantation in Phase II envisages plantation of 0.1
million mangroves in Hazira and 0.5 million mangroves in Ghandhar
region.
Technology Partnership
The oil and gas industry relies heavily on technological innovations to
continually enhance productivity in the context of gradually depleting
production from matured producing fields. We have collaborative
partnership in various facets of products and services, which helped us to
reduce the environmental impacts. Some of the partnership initiatives are:
• High Resolution Molecular Stratigraphy in depositional sequences
with mature source rocks in key wells in Indian sedimentary basins.
• Assessment of Disproportionate Permeability Reduction (DPR) by
various pore filling polymer gels for rig-less water shut off jobs.
• Degrading Bacterial (PDB), mitigation of Wax deposition problem
and field trial of high temperature (96ºC) microbial system for
enhanced oil recovery.
• Developing of composite material down hole casing for highly
corrosive wells and fiberglass pipelines for oil field applications in
onshore.
• Studies on Binary Hydrates for application in storage and
transportation of methane gas and on the effects of gas hydrate
dissociation on sea floor stability.
• Development of Viscoelastic Surfactants Based Self-diverting Acid
(VSDA), Low Temperature Demulsifier and Gelled emulsified acid
system, Eco-friendly solvent for removal of organic deposits
• Development of Baryte free Non Damaging
Drilling Fluid (NDDF) System, suitable shale
stabilizers and lubricants for low
permeability/HT/HP reservoir.
54/55
SOCIAL
PERFORMANCE

56/57
 SOCIAL
PERFORMANCE

MANAGEMENT APPROACH &

PERFORMANCE – SOCIAL
In ONGC, we believe that we can achieve sustainable growth only by integrating our business approach with the expectations of our stakeholders,
conducting our business with integrity and providing our workforce with a safe environment and opportunity for growth. Our belief is translated into
action through various policies, plans and work programs.

Being one of the largest CPSE of India, we endeavour to achieve highest level of business ethics and transparency in our organization. Our Vigilance
department is empowered to ensure our operations and procurements are conducted in an utmost transparent and ethical manner.

Our CSR projects are selected taking into account needs of the stakeholder in our operational areas as well as regions of backward districts identified
by planning Commission for Backward Region Grant Fund. Additionally, our CSR projects are designed in alignment with the Guidelines on
Corporate Social Responsibility for Central Public Sector Enterprises issued by the Department of Public Enterprises. Our Chief of Corporate Social
Responsibility is the senior most person responsible for community development projects. He is supported by Head of Human Resources / Employee
Relations at plant level. The operational activities are looked upon by full time CSR co coordinators at the various units.

To ensure safety of our employees, we have robust management systems in place. Our HSE department is working extensively to ensure safe
working conditions for our workforce. Our workforce is provided training on safety measures on regular basis. We closely monitor our injury rates and
constantly work towards ensuring safer working environment for our workforce.

Back to Contents
We believe quality of talent is defining force for our success. To ensure we attract and retain best talents of the country, we provide our employees with
a motivating and at the same time challenging work environment. Training to employees has been one of the consistent parameter in the annual MoU
targets of ONGC. We believe in providing equal opportunity to our employees as well as our contract workers through fair wage policy. We also sign
an integrity pact with our vendors and suppliers to ensure commitment to ethical practices and no violation to human rights.

Safety of our People and Assets

Safety and health of our employees and security of our assets has been consistently identified as one of our key material issue. We ensure strict
adherence to globally recognized and industry accredited best practices in its domain. We have implemented Quality Health Safety and Environment
(QHSE) Management System.

The Health, Safety and Environment management system is driven through our Integrated HSE Policy and Risk Management Policy. For
implementation of these policies separate HSE department with dedicated manpower and financial budget is institutionalized in ONGC. The team is
steered at the Apex level by a Director of the ONGC Board.

Some of the standout features of the Company’s exemplary HSE practices are - Regular QHSE internal audits, Fire safety
measures, regular fire and earthquake mock drills, Health Awareness programs, water and electricity conservation, Material
Safety Data Sheets (MSDS), Personal Protective Equipment (PPE), and identification and implementation of
Environment Management Programmes (EMP) and Occupation Health and Safety (OHS) programs as per need of the
units, near miss and Governance, Risk management and Compliance (GRC) reporting.

58/59
Emergency Preparedness
All the installations both in offshore and onshore areas have emergency ONGC-IADC Workshop on Drilling Safety
and disaster management plans. Mock drills as per annual plan are One day workshop was organized in association with International
conducted by these installations to keep up the readiness of plan by Association of Drilling Contractors (IADC) at Mumbai, where more than
improving the response time. ONGC has a well-documented Regional 150 delegates of drilling fraternity of oil and gas industry discussed and
Contingency Plan (RCP) which is vetted by Western Naval Command of deliberated on safety while drilling operations. Our management has
decided to arrange such event periodically and asked the employees to
the Indian Navy. It contains emergency response for emergencies like integrate the learnings from theevent.
blow-out, fire, search and rescue, vessel hitting installation, oil spill,
helicopter crash etc. Standard Operating Procedures for various
contingencies have been prepared and documented. There is also a
dedicated fire control group in place.

Process Safety
ONGC has developed SMS based on OHSAS 18001 which is third party
certified. Significant hazards are identified and associated risks are
evaluated, quantified and brought to acceptable level through relevant
work procedure and management plans for our business. ONGC follows
five basic steps to manage its operational risk.
Identified hazards are analyzed using Fault Tree and Event Tree
methodology. Subsequently risks are prioritized using risk matrix to sort
through a large number of risks and plan for contingency plan and safe
measure and control. The above studies are essential to bring down the Pilot Study for Asset Integrity Management (AIM)
overall risk of a facility to ALARP level (As Low As Reasonably Safety Critical Elements (SCEs) are highly essential for the integrity of any
Practicable). installation. SCEs can either be equipment or a procedure of an installation
whose purpose is to prevent, control or mitigate major accident hazards.
We have mapped the safety AIM helps in providing assurance that all identified SCEs will operate with
events in terms of business the required reliability and they be able to prevent incidents by developing a
Ass isk
Ha entify

activity and conduct safety maintenance management strategy of these SCEs. Considering the
d

R
ess
zar

importance of this safety management tool, the following 6 installations

Id

events which cover all the

have been identified for Asset Integrity:
business processes. In FY13,
De ntrol s

• BHS Process Complex, Mumbai Offshore

Co asure
Me
evi rs
s

cid
ew
& R onito

We have done the pilot study • HEERA Process Complex, Mumbai Offshore
e
M

for Asset Integrity for six • Sagar Vijay Rig, Mumbai Offshore
Implement • CPF Ghandhar, Ankleshwar Asset
installations including oil & Control
Measures • South Santhal, Mehsana Asset
gas process complex and • Electrical Rig, Rajahmundry Asset
drilling rigs.
Safety and health is publicized through Safety awareness programmes • Contractor Safety Workshop
to enhance awareness among the employees. Safety quiz, safety • ONGC-IADC Workshop on Drilling Safety
poster competition , slogan, lectures on safety aspects by industry
experts were organized for employees and their family at corporate level • Workshop on Finger Safety with focus on finger safety in drilling
and across work centres. Apart from these, workcentres level activities, operations
organizational level big events/programmes with identified THEME are • HSE orientation Training
launched every year, like this year 2013 has been dedicated as “Year of • Behavioural Based Safety Training to bring about positive
Safety of Contract Workers”. Some of other initiatives are: reinforcements to change unsafe individual behaviours and
• Safety Training Centre for Contractual Employees going to offshore encourage safe behaviours.

“2013- Year of Safety of Contract Workers”

The petty job contract workers constitute a significant number of contractual workers engaged in ONGC. The contractors engage them for
unskilled or semi-skilled jobs for short duration and put them directly to work in absence of dedicated training institutes available for
contractual workers. The lack of awareness about the job related hazards put them to increased risk of accident. This is a special drive to
address and take up on priority various safety issues with petty contract workers.

All these measures have resulted in considerable reduction in our incident rates for injuries (22.52%), fatalities (55.56%) and lost days (12.75%) in
FY13 over FY12.

Figure 22: Near Miss & Man-day Lost Figure 23: Incidents involving injuries (per million man hours)

381 0.26
2008-09 0.47
3120 2012-13
0.72
370
2009-10 3660 0.77
2011-12 0.88
362 0.66
2010-11 5244 0.78
2010-11 0.92
345
2011-12 4902 0.66
1.57
301 2009-10 2.01
2012-13 5756 1.19
1.72
0 2000 4000 6000 2008-09 2.86
Manday lost (Days) Nearmiss 0.94

0.00 0.50 1.00 1.50 2.00 2.50 3.00

Figure 24: Fatalities (per million man hours) Total Contractual Permanent

0.03
0.04
2012-13
0.01
0.06
2011-12 0.11
0.01
0.08
2010-11 0.16
0.01
0.08
2009-10 0.15
0.03
0.08
2008-09 0.18
0.00

0.00 0.05 0.10 0.15 0.20

Total Contractual Permanent 60/61
We realize that loss incidents resulting in injuries and fatalities to our
workmen and those belonging to our contractors are one of the
challenging issues. To better understand the causes responsible for
these loss incidents, we have aggressively increased awareness across
the organization to report all injury causing incidents including first aid
injuries since the past two years.
To contain the fatalities in the contractual workforce, we are taking steps
to strengthen contract management, work supervision including
educating contractual personnel on work safety through tool box talks
and ensuring work appropriate medical fitness for them.
Talent Management
In the wake of rising superannuation trends and an aggressive growth
trajectory embraced by the Company in its PP-2030, the issue of
attracting, building and retaining domain expertise has gained sharp
focus. ONGCs talent management edifice rests upon three broad areas
of focus-Talent Replenishment, Skill and Competencies development
and Retention.
A. Within talent replenishment paradigm, ONGC has embarked
upon a host of measures, which include:

Keeping our Employees and Workforce Healthy
To ensure safe living conditions for our employees and their families we
ensure there is no exposure to excessive amount of hazardous
substances. We conduct regular air and water quality tests as well as
provide regular health check-ups, counselling and treatment to
employees, workers and their families. We have occupational health
centres at all major locations. These centres are equipped with trained
health specialists and modern medical equipment.
We have a comprehensive policy on periodic medical examination
(PME) for all our regular employees, employees on deputation,
tenure/term based employees and casual/contingent workers. General
PME is done every 2 to 5 years based on age group of employees.
Specific PME is conducted for employees identified as having hazard
based profiles. The periodicity is clearly mentioned in our Periodic
Medical Examination Policy. We also conduct PME workshops for our
contractual workers time and again. As per the data, it is concluded
that there has been no reported case of occupational disease in the
reporting period.
Assistance Programs
Education/training Counseling Prevention Treatment
/ Risk Control
Workers    
Worker Families  Inspired Successors for Higher Achievement), has been successfully
Community Members  
We regularly have formal, structured consultation-led meetings to
review, discuss, and take-up improved measures to promote
occupational health and safety of employees at our workplace. Our through the talent pipeline
relationship with our employees (including unionized category) does not
necessitate formal agreements on HSE topics.
Health and Safety Aspect
Provision of protective equipment
Joint-management health and safety committees
Participation of worker representatives in health and safety inspections, audits, and
accident investigations
Training and education
Complaints mechanism
Right to refuse unsafe work
Periodic Inspections
An increased rate of regular induction, which is based on a long term
perspective, to replenish the talent pool to sustain future leadership
roles and address the concerns of the graying of workforce and
qualification imbalances.
On boarding of retired E&P professionals in the capacity of Advisors and
Consultants, whose services are being remunerated through payment
of honorarium. Such measures are directed to create a platform for
transfer of knowledge, mentorship and guidance in order to insulate
from vacuum that may arise due to increased rates of superannuation.
Lateral inductions at E2, E4 and E6 levels as a hedge to bridge the
competency gaps that may occur as the result of midstream employee
turnovers that are part and parcel of a competitive business
environment.
Contractual engagement of Domain expert’s equivalent to E6 level
executive to create a platform for inflow of contemporary competencies,
expertise and knowledge transfer.
B. Skill and Competency Building paradigm rests upon two basic
pillars of Job Rotations and Training and Succession Planning. The task
cut out for HR is to “manage the leadership pipeline with succession
planning and a next generation leaders program. In this regard, a
Succession Planning Application Module- “DISHA”-(Developing
launched. It is a tool to spot likely successors early on so that efforts can
be directed to providing developmental experiences that align with the
challenge encounters en route to senior executive roles and rigorous
management of careers based on individuals’ potential to progress
C. Retention and Motivation paradigm is built on number of initiatives
have been launched to address employee retention concerns. One such
endeavor is the formulation of ‘Per formance Related Pay’ scheme, the
purpose of which is to embed a high performance culture across the
organization. It is a scheme directed to safe-guard the expectations of
the high performers. It affords differentiated monetary pay-outs based
on annual performance appraisals. This encourages and motivates the
employees to improve performance. The PRP algorithm integrates
overall Company performance at the macro level with Individual
performance at the micro level.
To better aid employee development, we ensure that 100% of our
employees receive a formal performance appraisal.

Training
Skill up-gradation is a vital component for driving excellence through
Human Resource. ONGC has recently branded the spectrum of its
training activities as EXPONENT- a comprehensive program which
nurtures the energy leaders of tomorrow. The program is facilitated by
the ONGC Academy, Regional Training Institutes (RTIs), other in-house
Institutes and through tie-ups with globally recognized trainers.

In FY13, 691 Graduate Trainees in five batches were imparted induction

training. In order to keep the executives abreast of the latest
advancements in cutting edge concepts and technologies in oil and gas
exploration and production, 84 programs were organized, including
Planning for Superannuation
foreign faculty programs. 175 senior level executives were exposed to
Senior Management and Advanced Management Program with We have specially designed training programs to assist our employees
overseas learning component through tie-ups with leading B-schools of who are in the retirement zone. In the reporting period, a total of 150
the country. Total number of training hours is 207447 man-days employees were assisted in superannuation. Several programs were
in FY13. The average training hours of male is 52.48 and of female conducted which covered topics like:
are 5.18.
• Understanding retirement and the processes involved
Figure 25: Training-participants 2008-12
• Managing the change - Retiring to purposeful activity
8107 8269
7510 7647 7754 • Investment avenues

• Tax planning
7000
• Implications of WILL
5000
• Change in mental attitude
2008-09 2009-10 2010-11 2011-12 2012-13
• Enriching relationships

Figure 26: Training-participants by gender in FY13 • Discovering own potential - Never too old to work

10.7% Male • Time management, Leading a healthy life

Female • Topics on EPS and PRBS

Employee Headcount and Turnover

89.3%
We saw a marginal increase in our workforce mainly due to increase in
non- executive employees. All our employees, who were on parental
leave, have returned to work and as such no employees have left the job
after availing parental leave.
Figure 27: Training-man-days Institute wise in FY13
ONGC Academy
6990, 3% 10119, 5% RTIs
10872, 5% IOGPT
4984, 2% IPSHEM
SMP
15921, 8% IDT

158561, 77%

62/63
Table 17: Employee Headcount 2009-12 Women Empowerment
(Workforce Type) 2009-10 2010-11 2011-12 2012-13
Permanent 32,826 33,273 32,909 32,988 Women constitute 6.37 per cent of ONGC’s employees. During the
Executive 24,484 24,995 24,697 24,680 year, programs on women empowerment and development, including
Non-Executive 8,342 8,278 8,212 8,308 programs on gender sensitization were organized. We actively support
Others – Tenure/Term based 1,838 1,681 1,481 1,772 and nominate our female employees for programs organized by
Contract 17,458 16,080 18,770 18,088 “Women in Public Sector (WIPS)” and “Women in Leadership Roles
Daily Wage Workers 683 686 645 613
(WILR)”. Also, a new award, ‘Woman Executive of The Year’, was
Table 18: Employee Diversity 2009-12 introduced by the Company during the year, as part of its Annual Award
Employee Diversity 2009-10 2010-11 2011-12 2012-13 Scheme.
Female 1,990 2,056 2,054 2,100
In the reporting period, this training was attended by 453 employees and
Male 30,790 31,173 30,808 30,888
conducted 13 programs covering topics such as
We have an aggressive growth plan to meet the challenge of greying
workforce. Our projected plan for next three years is: Work-Life Balance

2500
We provide our employees opportunities and assistance to ensure a
2333
2000 balanced work life. Most of our employees live in townships where they
1500 1297
1000 899
1368 Retirements are provided facilities like gymnasiums, music rooms etc.
1057 Recruitments
500 702
0 Our “Nav-Utsah” programme aims at educating senior executives on
2012-13 2013-14 (Projected) 2014-15(Projected)
stress management, conflict resolution, good parenting, Yoga and other
personality development initiatives. We routinely organize outbound
Our employee turnover numbers are: team building programmes like family events at work centres,
Table 19: Employee turnover 2009-12 celebrations at all major festivals to engage with our employees and
AGE GROUP GENDER (M/F) 2009-2010 2010-2011 2011-2012 2012-13 their families. We have various Mahila Samiti and Resident Welfare
21-30 F 0 2 1 7 Associations (RWA) for organizing various social and cultural events at
21-30 M 51 42 36 42 ONGC work centres.
21-30 51 44 37 49
31-40 F 0 1 1 2
31-40 M 50 9 12 7
A spirit that has transcended its boundaries
31-40 50 10 13 9
First time in the history of ONGC, three graduate women executives were
41-50 F 0 0 2 1
posted at Offshore on regular shift operation. The male dominance is no
41-50 M 22 22 18 16
41-50 22 22 20 17 more a bastion at Offshore in ONGC rather in India. It is matter of pride for
51-55 F 0 0 0 1 ONGC and the country that the women are now proactively and
51-55 M 10 8 5 8 combatively working for securing energy needs of the nation at the very
51-55 10 8 5 9 frontiers of oil field technology.
56-60 F 2 0 0 1 Well the oil and gas industry worldwide is a male dominated industry.
56-60 M 4 2 2 0 Similar norms prevail in ONGC too but with a difference. Women are
56-60 6 2 2 1 recruited in the company not just for allied functions but also in core jobs
Overall Turnover 139 86 77 85
like exploration and production. It is a level playing field here in ONGC.
It’s the performance which counts. Women have ample opportunities to
Diversity and Equal Opportunity start and helm important initiatives within the company. There is no
We ensure that all individuals are accorded equal opportunities to dearth of challenging assignments and postings if one is up for it and no
develop knowledge, skills and competencies that are relevant to the job special concessions are made on the basis of gender. It is the delivery of
he or she performs. We recruit employees with diverse background those counts.
covering SC, ST, OBC and minorities as well as those who are differently
abled. Gender equality is one area where we have stressed upon
leading to strict compliance of the law relating to Equal Remuneration.
Women representation at ONGC is spread across all the levels of Promoting Sports
organization, across all major disciplines and cadres, both in technical
and non-technical areas of work. We have evolved a working ONGC continues to extend its support for all the sportsperson under its
environment that is devoid of gender discrimination or bias. Other
employment. They are provided financial assistance and encouraged
supportive and nurturing initiatives include focused training and
development programs for women and the setting up of the Women for training and participation in tournaments across the globe. We have
Development Forum. scholarship programme for promoting these sports person across 23
The ratio of basic salary of men to women for the same position across sports categories. On 31st March 2013, we have 178 sportsperson as
all employee categories is 1. employees of ONGC.
 Ms Kavita Raut and Ms
Aswini Ponnappa were
conferred with Arjuna Award
for Athletics and Badminton
respectively in 2012-13.
Today we have fifteen
Arjuna Awardees besides
one Khel Ratna and two
Padamshrees.
We were the principal sponsor for the Indian Contingent for the Olympics
Games 2012. 15 ONGCians were part of the Indian contingent. Our
Chairman was selected as the president of All India Public Sector Sports
Promotion Board (AIPSSPB), the largest conglomerate of public sector
undertaking, in July 2012.
Human Right Practices
Our HRM policy covers the human rights aspect and as such there is no
separate human rights policy. All suppliers/contractors who undertake to
provide services enter into a comprehensive formal agreement with
ONGC, which contains stipulations and conditions requiring them to
ensure the compliance of various applicable labour statutes in respect of
their employees/ workers. These include the Payment of Wages Act,
1936, the Minimum Wages Act, 1948, Equal Remuneration Act, 1976,
the Industrial Disputes Act, 1947, the Employees State Insurance Act,
1948, the Employees Provident Fund and Misc. Provisions Act, 1952,
the Child Labour (Prohibition and Regulation) Act, 1986 and the
Contract Labour (R&A) Act, 1970. As a responsible Principal Employer,
ONGC ensures that contractor’s labour is treated fairly as per the law
and for complaints or disputes, the contractors are advised to settle the
issue in accordance with the law.
The organization proposes to meet future economic, environmental and
social challenges by making efforts to establish and ensure fair
practices/ethics in its supply chain. We organize Business partners
Meet since April 2002, where our Board of Directors share the strategic
goals with all leading vendors in the oil field business.
We are committed to the principles of the United Nations Global
Compact on Human Rights and subscribe to the international
agreements/conventions such as Kyoto Protocol, Montreal Protocol,
UNCLOS (MMD), SOLAS, and MARPOL etc. within the frame work of
our Government directives.
We are fully committed to respect human rights across our operations
and this reflects in our dealing with our different stakeholders. We have
strict guidelines on non – discrimination and prohibition of child labour
and forced labour across all our operation. All our investment
agreements include a clause asking commitment from our suppliers,
contractors and vendors to uphold human rights as per Indian laws and
regulations. They are expected to ensure with all applicable labour laws
of the country such as minimum and equal wages, prohibition of child
labour and forced labour.
Awareness on human rights is included in our training programmes. All
our graduate trainees are provided training on human right during their
induction training. Our security personnel across the operations are
trained on human rights issues. This year, a special training was held on
“treatment of Juvenile caught while theft “ at Silchar.
In FY13, we don’t have any reported case of discrimination on caste,
creed, sex and religion. In FY13, We have not received any grievance on
human rights violations.
All ONGC operations are subject to human rights reviews and/or impact
assessments.

Safety Training Center for Contractual Workers

We have set-up free Safety Training Center for Contractual workers going to offshore. This training centre has been
pitched as a stepping stone towards 'Operation Zero' for ONGC, as a sign of our commitment to the cause of
overseeing the overall safety of all men and processes as a responsible corporate citizen and the principal employer.

64/65
Collective Bargaining
At ONGC collective bargaining happens at two levels:
Workers Unions: We engage with recognized workers unions at least
twice a year at corporate level to discuss issues on welfare benefits,
health and safety, and career progression policies. Our workers and
employees have complete freedom to be part of trade unions and it does
not have any negative impact on their career progression in the
company.
Officers Association: Officers association is a group for all our executive
employees and it engages with the management throughout the year
through both formal and informal mechanisms. Some of the issues
addressed are employee welfare, security, living conditions, pay and
perks, job rotation and transfer.
locations and is in constant interface with underprivileged local
communities, which results in better understanding of the community
and consequently an enhanced sense of responsibility and
accountability to the communities whose lives we touch. A well-defined
set of objectives, clearly delineated beneficiaries, strategy and project
activities characterize CSR projects undertaken to yield discernible,
long-term, sustainable benefits for the communities in question.
It has been our constant endeavour and relentless effort, to meet the
expectations of the local communities and to facilitate inclusive growth
of the deprived and marginalized sections of the society. Our
commitment to expenditure of 2% of PAT towards CSR Initiatives along
with ensured accountability through 5% weightage in the MoU with
MoP&NG has helped in a progressive and holistic development of CSR
portfolio, as evident from the CSR Initiatives.

For effective and timely action, different issues are discussed at different
levels. At asset level issues related to the asset like transfers, overtime,
leave, wage fixation are discussed with recognized unions and
management representatives. At regional level issues like promotion,
recruitment of staff is discussed. At corporate level issues like pay
revision, changes in recruitment and promotion policy, employee
welfare policies are discussed. This approach covers issues related to
required operational changes impacting employees. 100% of our
employees are covered by collective bargaining.

Our joint management- worker health and safety committees represent

our entire employee workforce.

Compliance
Compliance to the laws of the land is foundational to working of all
corporate citizens. Rare slippages sometimes do occur part of the
working of a highly heterogeneous geographically spread out
organizations for which the stipulated penalties as levied are paid for by
the company.

Table 20: Penalties Paid

Period Penalty amount Remarks Location
2010-11 INR 1.22 million Penalty towards belated Karaikal
payment under Motor
Vehicle taxation act 1967
2011-12 INR 1.17 million Significant fines paid Ahmedabad
2012-13 INR 0.58 million Significant fines paid Ahmedabad CSR activities are primarily guided by the Department of Public
Enterprises (DPE) and Ministry of Corporate Affairs (MCA) of the
Government of India. For selection of relevant CSR activities, we follow
We comply with rules and regulations of resettlement plan across all
“Stakeholder Participation model”.
operations. However, there are no reported cases of resettlement and
their livelihood in FY13. Every activity proposed to be taken up as CSR is evaluated for

Community • Identification of stakeholders(Society) and intended beneficiaries of

the project
ONGC since its inception in 1956 has been contributing to the socio-
economic development of the communities nearby our business • Project details including project timeline
activities. ONGC, in its quest for oil and gas, charters remote rural • Impact measurement
For implementation of CSR projects, Head HR/ER is responsible at
respective work-centre locations. They are assisted by full time CSR
coordinator on site. Our CSR efforts are primarily focuses on protection
of environment, providing infrastructure support in our operational
areas, water management, women empowerment, and initiatives for
physically and mentally challenged people, protection and preservation
of our heritage, arts and culture, promotion of sports, entrepreneurship
building and sponsorship of seminars, conferences, workshops etc.

To make ourselves more objective and impact oriented, impact

assessment of the flagship CSR projects is done through third party
external agency, which has been very encouraging and it will help in mid-
course corrections of our initiatives to deliver maximum desired impact,
wherever required.

Our operations are not affecting the indigenous communities. In FY13,

we have not received any reported incidents of violations involving rights
of local communities and indigenous people. However, our CSR policy
covers engagement of communities and strategies thereof. We routinely
engage with the communities impacted by our operations and activities
to come up with solutions to enrich the social capital and enhance the
positive outcomes of our activities.
Some of our major initiatives in previous years viz Varishtajan Swasthya
Seva Abhiyan for providing free door-step health care support to the
elderly through 20 Mobile Medical Units operated by HelpAge, ONGC
Swablamban Abhiyan for providing prosthetic support to physically
challenged persons across 100 districts in India, ONGC-GICEIT
Computer Centre (Employment-related computer training to
underprivileged youth), Harit-Moksha-the Green Cremation System,
Protection of Eastern Swamp deer in Kaziranga National Park have
made substantial impact and have touched various spectrum of socio-
economic and environmental issues.
ONGC-NFCH Rehabilitation Of Child Victims Of Societal Violence
For National Integration: The company with National Foundation for
Communal Harmony is working in 21 districts of Assam and Senapati
District of Manipur to provide financial assistance to about 900 children
who are victims of communal, caste, ethnic or terrorist violence, for their
rehabilitation with special reference to their care, education and training.
ONGC-Hope Foundation: This CSR project was initiated with the intent
to “Bandage the ulcers of 96 leprosy patients every day” for one year in
the Village of Hope, (VOH). This is situated in the leprosy complex,
Tahirpur, adjacent to Leprosy Mission Hospital at Nandnagri in the
outskirts of Delhi.

Some of our key CSR initiatives in FY13 are:

Aantyodaya Prakalp: The Company with Bhartiya Kushtha Niwarak

Sangh (BKNS) and Adivasi Development Initiative (ADI) has started a
project for providing health care and education to the tribal people in
Western and Eastern Melghat, District Amravati in Maharashtra and
District Betul in Madhya Pradesh respectively and in Bastar,
Chhattisgarh. The project aim is to eradicate malnutrition, provide
appropriate treatment guidance and medical facility for detection and
prevention of sickle cell disease and educating 20 students at Halbras.

Aids and appliances to Physically Challenged thru ALIMCO: The

company with ALIMCO distributed Aids and Appliances to Orthopaedic,
Visually Impaired, Hearing Impaired persons. The project has already
covered 750 beneficiaries. In the current year, initiative was taken in
Hazira, Surat and Karaikal and will be scaled up at national level in due
course of time.
66/67
ONGC-The Akshaya Patra Foundation: This unique CSR initiative
aims at setting up of a centralized fully automated mechanized kitchen
with a capacity to provide mid-day meals to two lakh school going
children (enrolled in Govt. schools) per day in the District of Surat,
Gujarat.
Udaan: This is a special Initiative taken up by the Ministry of Home
Affairs, Govt. of India for the educated youth of Jammu and Kashmir in
association with National Skill Development Corporation (NSDC). The
project aims to train Graduates/ Post Graduates from J&K to improve
their technical knowledge and soft skills and enhance their scope for
employability.
Preservation of heritage monuments: We are working on conservation
and development of four Ahom monuments at Sibsagar, Assam through
Archaeological survey of India and National Culture Fund. Project was
inaugurated in March 2012 and first phase of project is under execution.
Comprehensive Conservation and Development Plan is ready for 3
monuments; the same for 4th monument is under development.
Beneficiaries form the project will be local population through
conservation of culture and heritage in addition to creation of tourism
avenues and job opportunities
This year we have conducted an impact assessment analysis for some
of our key projects.
Impact Assessment of our CSR activities
ONGC has taken CSR initiatives in a big way in the field of elderly
health, environment, and livelihood creation through vocational
training, ecological conservation & improvement of IT skills
among the youths. Over the last few years, ONGC has been
implementing CSR activities around its various areas of
operation with an aim to realise maximum social &
environmental benefits as designed in the CSR projects
objectives. Evaluation and impact assessment plays an
important role in social sector’s projects to assess whether the
project is going in right direction and also yielding the desired
outcome in the line of set objectives or not. In order to be able to
judge the effectiveness of CSR project & its process of
implementation regular impact assessment studies are carried
out by the company.
During the year a third party impact assessment study has been
carried out to assess the relevance, effectiveness, sustainability
context & reliability of the on-going projects and to assess the
overall impact of the CSR projects. The specific objectives of the
assessment of CSR activities put emphasis on
• CSR project implementation in terms of the need of project
area.
• Efficiency of project in terms of achieved output and
activities plan.
• Effectiveness of project in terms of goal achievement in
terms of input & process.
• Positive and Negative affects on socio-economic and
environmental aspects of the project areas.
• Nature of project sustainability and provide suggestion for
further improvement.
The impact assessment was carried out for following projects:
• Varisthjan Swasthya Seva Abhiyan (VSSA)
• Computer Education Project
• Project Utkarsh
• Project Eastern Swamp Deer
• Project Mangrove Restoration and Conservation Education
Unit
• Project Harit Moksha
The assessment shows a good correlation with its intended
objective
Product Responsibility
Health and Safety
ONGCs product line consists of three broad product categories: Crude
Oil, Natural Gas and value added products. All the above products are
produced in bulk and sold in unpacked condition to downstream entities,
who further distribute them to retail consumers. Our products are placed
in "storage, distribution and supply" stage of the hydrocarbon value
chain, and comply with stringent quality standards, laws and
regulations.
Due to the limited scope of company’s operations in the products’
complete lifecycle, a formal system of assessment for improvement of
health and safety across the products entire lifecycle has not been felt
necessary.
We intend to progressively carry out limited assessment of the health
safety and environment impacts of the products over the company
relevant life-cycle element.
The storage, distribution and supply of our products are regulated by
means of well-defined laws and require environmental and safety
compliance. As such, ONGC has environment management systems,
quality management systems and occupational health and safety
management systems, custody transfer management, which is in
accordance with international standards.
Product and Service Labeling Marketing Communications

For crude oil sale, batch wise certificates are issued for the product,
which includes various quality parameters including BS&W. Product
labeling related to storage procedures and safety precautions are
clearly indicated in the ONGC installation holding the crude.
All VAPs are supplied with batch wise test reports and standard handling
procedures to be followed in line with OISD/other statutory standards.
Relevant BIS specifications (if applicable) and quality certificates with
parameters are issued while dispatching. Product labeling related to
storage procedures and safety precautions are clearly indicated in the
ONGC installation holding the VAP product.
Regarding the sale of gas from small/isolated and marginal fields as per
MoP&NG guidelines, ONGC has implemented e-tender route following
which bid documents specifying tender terms and conditions, which
inter-alia includes details of the product, its specification, likely uses are
available to prospective bidders.
In case of natural gas, regular meetings are held with main customers (97%)
of gas sales at Corporate, Zonal and Site levels. Gas supplies are maintained
on a round-the-clock basis and customer’s concern on product are
addressed on an immediate basis. In view of constant interaction and
feedbacks through meetings, no need has been felt presently to undertake
separate surveys to measure customer satisfaction.
Being an upstream E&P organisation, we do not go for branding
of products and services. However, ONGC have actualized
corporate branding.
There have not been any instance of non-compliance with regulations or
with voluntary codes concerning marketing communications in FY13.
There have not been any instance of substantiated complaints
regarding breaches of customer privacy and losses of customer data
in FY13.

There are no incidents this year for non-compliance with regulations

concerning advertising, promotion, and sponsorship. We have been
complying with laws and regulations concerning the provision of our
products and services and have not been imposed any fines for non-
compliance this year.

As such, we are not required to purchase any biofuels to meet the

sustainability criteria and therefore we did not produce any biofuels
in FY13. 68/69
GRI INDEX - Oil and Gas
Sector Supplement
STANDARD DISCLOSURE PART-I: Profile Disclosure
Profile Description Reported Cross- For partially reported UNGC COP Element BRR (SEBI)
Disclosure reference/ disclosures, reasons
Direct for omission & to be
answer reported in

1. Strategy and Analysis

1.1 Statement from the most senior Fully 12-13 Statement of
decision - maker of the organization. Continuing Support
1.2 Description of key impacts, risks, Fully 18-19,
and opportunities 24-29
2. Organisational Profile
2.1 Name of the organization Fully Cover Page, Section A: General Information
2 about the Company
2.2 Primary brands, products, and/or Fully 2 Section A: General Information
services about the Company
2.3 Operational structure of the Fully 7-8 Section C: Other Details
organization
2.4 Location of organization’s Fully Back Cover Section A: General Information
headquarters about the Company
2.5 Number of countries where the Fully 6 Section A: General Information
organization operates about the Company
2.6 Nature of ownership and legal form Fully 4 Section C: Other Details
2.7 Markets served Fully 4 Section A: General Information
about the Company
2.8 Scale of the reporting organization Fully 4
2.9 Significant changes during the Fully 9
reporting period
2.10 Awards received in the reporting Fully 10-11
period
3. Report Parameters
3.1 Reporting period Section A: General Information
about the Company
3.2 Date of most recent previous report Fully 9
(if any)
3.3 Reporting cycle Fully 9 Section D: BR Information
3.4 Contact point for questions Fully 9 Section A: General Information
regarding the report or its contents. about the Company
3.5 Process for defining report content Fully 9
3.6 Boundary of the report Fully 9 Section C: Other Details
3.7 Specific limitations on the scope or Fully 9
boundary of the report
3.8 Basis for reporting on joint ventures, Fully 9
subsidiaries, leased facilities,
outsourced operations

3.9 Data measurement techniques and Fully 9

the bases of calculations

Back to Contents
 Profile Description Reported Cross- For partially reported UNGC COP Element BRR (SEBI)
Disclosure reference/ disclosures, reasons
Direct for omission & to be
answer reported in
3.10 Explanation of the effect of any re- Fully 9
statements of information provided
in earlier reports, and the reasons
for such re-statement

3.11 Significant changes from previous Fully 9

reporting periods in the scope,
boundary, or measurement methods
applied in the report
3.12 GRI Content Index Fully 70-81
3.13 Policy and current practice with Fully 9 Section D: BR Information
regard to seeking external
assurance for the report
4. Governance, Commitments, and Engagement
Governance Actions Taken to
Implement Principles
1-10
4.1 Governance structure of the Fully 5, 7-8 " Section D: BR Information
organization
4.2 Indicate whether the Chair of the Fully 14 "
highest governance body is also an
executive officer
4.3 State the number of members of the Fully 14 "
highest governance body that are
independent and/or non-executive
members

4.4 Mechanisms for shareholders and Fully 15 "

employees to provide recommend-
ations or direction to the highest
governance body

4.5 Linkage between compensation for Fully 14 "

members of the highest governance
body, senior managers, and
executives

4.6 Processes in place for the highest Fully 15 "

governance body to ensure conflicts
of interest are avoided.
4.7 Process for determining the Fully 14 "
qualifications and expertise of the
members of the highest governance
body

4.8 Internally developed statements of Fully 2.3, 16-17 "

mission or values, codes of
conduct, and principles relevant to
economic, environmental, and
social performance and the status
of their implementation.

4.9 Procedures of the highest Fully 15-16 " Section D: BR Information

governance body for overseeing the
organization’s identification and
management of economic,
environmental and social
performance

4.10 Processes for evaluating the Fully 15-16 " Section D: BR Information
highest governance body’s own
performance, particularly with
respect to economic, environmental,
and social performance
70/71
 Profile Description Reported Cross- For partially reported UNGC COP Element BRR (SEBI)
Disclosure reference/ disclosures, reasons
Direct for omission & to be
answer reported in
Commitments to External Initatives
4.11 Explanation of whether and how the Fully 18 Actions Taken to
precautionary approach or principle Implement Principle 7
is addressed by the organization

4.12 Externally developed economic, Fully 18 Actions Taken to

environmental, and social charters, Implement Principles
principles, or other initiatives to 1-10
which the organization subscribes
or endorses.

4.13 Memberships in associations Fully 18 "

Stakeholder Engagement
4.14 List of stakeholder groups engaged Fully 20 -23 Sharing the COP with Section D: BR Information
by the organization the Company's
Stakeholders

4.15 Basis for identification and selection Fully 20 -23 " Section E: Principle 4-
of stakeholders with whom to Stakeholder Engagement
engage.

4.16 Approaches to stakeholder Fully 20 -23 " Section D: BR Information ;

engagement, including frequency of Section E: Principle 4-
engagement by type and by Stakeholder Engagement
stakeholder group.

4.17 Key topics and concerns that have Fully 20 -23 " Section D: BR Information ;
been raised through stakeholder Section E: Principle 4-
engagement Stakeholder Engagement ;
Section E: Principle 5- Human
Rights

STANDARD DISCLOSURE PART II: Disclosures on Management Approach (DMAs)

G3 DMA Description Reported Cross- For partially reported UNGC COP Element BRR (SEBI)
reference/ disclosures, reasons
Direct for omission & to be
answer reported in

DMA EC Disclosure on Management Actions Taken

Approach EC to Implement
Principles 1,4,6 and 7

Aspects Economic Performance Fully 32-39 Section D: BR Information

Market Presence Fully
Indirect Economic Impacts Fully
DMA EN Disclosure on Management Actions Takento
Approach EN Implement Principles
7, 8 and 9

Aspects Materials Fully 42-55 Section D: BR Information ;

Section E: Principle 6-
Environment
Energy Fully Principle 7, Principle 8
Biodiversity Fully
Emissions, Effluents and Waste Fully
Products and Services Fully
Compliance Fully
 G3 DMA Description Reported Cross- For partially reported UNGC COP Element BRR (SEBI)
reference/ disclosures, reasons
Direct for omission & to be
answer reported in
Transport Fully
Overall Fully
DMA LA Disclosure on Management Actions Taken to
Approach LA Implement Principles
1, 3 and 6

Aspects Employment Fully 62-64 Principle 6 Section D: BR Information

Labour/Management Relations Fully 66 Principle 3
Occupational Health and Safety Fully 58-52 Principle 1
Training and Education Fully 61, 63
Diversity and Equal Opportunity Fully 64 Principle 6
DMA HR Disclosure on Management Actions Taken to
Approach HR Implement Principles
1, 2, 3, 4, 5 and 6

Aspects Investment and Procurement Fully 37-38 Principle 1 to Section D: BR Information

Practices Principle 6

Non-discrimination Fully 64 Principle 1,

Principle 2, Principle 6
Freedom of Association and Fully 66 Principle 1, Principle
Collective Bargaining 2, Principle 3
Child Labour Fully 65 Principle 1, Principle
2, Principle 5
Forced and Compulsory Labour Fully 65 Principle 1, Principle
2, Principle 4
Security Practices Fully 65 Principle 1, Principle 2
Indigenous Rights Fully 67 Principle 1, Principle 2
DMA SO Disclosure on Management Actions Taken to
Approach SO Implement Principle
10
Aspects Community Fully 66-67 Principle 1, Principle 2 Section D: BR Information ;
Section E: Principle 8-
Inclusive growth ; Section E:
Principle 1-
Ethics,Transparency and
Accountability

Corruption Fully 17-18, 58 Principle 10

Public Policy Fully 18, 58
Anti-Competitive Behavior Fully 18
Compliance Fully 58, 66
DMA PR Disclosure on Management Actions Taken to
Approach PR Implement Principles
1 and 8
Aspects Customer Health and Safety Fully 68 Section D: BR Information
Product and Service Labelling Fully 69
Marketing Communications Fully 69

Customer Privacy Fully 68-69 Principle 1

Compliance Fully 68-69
72/73
 G3 DMA Description Reported Cross- For partially reported UNGC COP Element BRR (SEBI)
reference/ disclosures, reasons
Direct for omission & to be
answer reported in
Economic Performance
EC1 Direct economic value generated Fully 36 Section B: Financial Details of
and distributed, including revenues, the Company
operating costs, employee
compensation, donations and other
community investments, retained
earnings, and payments to capital
providers and governments.

EC2 Financial implications and other Fully 36 Principle 7

risks and opportunities for the
organization's activities due to
climate change.

EC3 Coverage of the organization's Fully 36-37

defined benefit plan obligations.

EC4 Significant financial assistance Fully 36

received from government.

Market Presence
EC5 Range of ratios of standard entry Fully 37
level wage by gender compared to
local minimum wage at significant
locations of operation.

EC6 Policy, practices, and proportion of Fully 37-38 Section E: Principle 2-

spending on locally-based suppliers Products Life Cycle
at significant locations of operation. Sustainability

EC7 Procedures for local hiring and Fully 37-38 Principle 6

proportion of senior management
hired from the local community at
significant locations of operation.

Indirect Economic Impacts

EC8 Development and impact of Fully 37-39
infrastructure investments and
services provided primarily for
public benefit through commercial,
in-kind, or pro bono engagement.

EC9 Understanding and describing Fully 37-38

significant indirect economic
impacts, including the extent of
impacts.

OG1 Volume and type of estimated Fully 34-35

proved reserves and production.

Environmental
Materials
EN1 Materials used by weight or volume. Fully 54 Principle 8

EN2 Percentage of materials used that Partially 54 We are developing a Principle 8, Principle 9 Section E: Principle 2-
are recycled input materials. system in place to Products Life Cycle
cover the recycled Sustainability
material.
To be reported by
2017
 G3 DMA Description Reported Cross- For partially reported UNGC COP Element BRR (SEBI)
reference/ disclosures, reasons
Direct for omission & to be
answer reported in
Energy
EN3 Direct energy consumption by Fully 45 Principle 8
primary energy source.
EN4 Indirect energy consumption by Fully 45 Principle 8
primary source.

OG2 Total amount invested in renewable Fully 45-46 Principle 8, Principle 9 Section E: Principle 6-
energy. Environment

OG3 Total amount of renewable energy Fully 45-46 Principle 8, Principle 9 Section E: Principle 6-
enerated by source. Environment
EN5 Energy saved due to conservation Fully 46-50 Principle 8 Section E: Principle 6-
and efficiency improvements. Environment

EN6 Initiatives to provide energy-efficient
or renewable energy based
products and services, and
reductions in energy requirements
as a result of these initiatives.
Fully 46-50 Principle 8, Principle 9 Section E: Principle 6-
Environment ; Section E:
Principle 2- Products Life
Cycle Sustainability

EN7 Initiatives to reduce indirect energy Fully 46-50 Principle 8 Section E: Principle 6-
consumption and reductions Environment ; Section E:
achieved. Principle 2- Products Life
Cycle Sustainability

Water
EN8 Total water withdrawal by source. Fully 51-52 Principle 8 Section E: Principle 2-
Products Life Cycle
Sustainability

EN9 Water sources significantly affected Fully 26, 50 Principle 8

by withdrawal of water.
EN10 Percentage and total volume of Fully 53 Principle 8 Section E: Principle 2-
water recycled and reused. Products Life Cycle
Sustainability

Biodiversity

EN11 Location and size of land owned, Fully 54-55 Principle 8

leased, managed in, or adjacent to,
protected areas and areas of high
biodiversity value outside protected
areas.

EN12 Description of significant impacts of Fully 54-55 Principle 8

activities, products, and services on
biodiversity in protected areas and
areas of high biodiversity value
outside protected areas.

EN13 Habitats protected or restored. Fully 54-55 Principle 8

EN14 Strategies, current actions, and Fully 54-55 Principle 8

future plans for managing impacts
on biodiversity.

OG4 Number and percentage of Fully 54-55 Principle 7, Principle 8

significant operating sites in which
biodiversity risk has been assessed
and monitored.
74/75
 G3 DMA Description Reported Cross- For partially reported UNGC COP Element BRR (SEBI)
reference/ disclosures, reasons
Direct for omission & to be
answer reported in
EN15 Number of IUCN Red List species Not Not applicable
and national conservation list
species with habitats in areas
affected by operations, by level of
extinction risk.

Emissions, Effluents and Waste

EN16 Total direct and indirect greenhouse Fully 48, 84 Principle 8
gas emissions by weight.

EN17 Other relevant indirect greenhouse Fully 48, 84 Principle 8

gasemissions by weight.

EN18 Initiatives to reduce greenhouse gas Fully 47-50 Principle 8 Section E: Principle 6-
emissions and reductions achieved. Environment

EN19 Emissions of ozone-depleting Fully 51 Principle 8

substances by weight.

EN20 NOx, SOx, and other significant air Fully 51 Principle 8

emissions by type and weight.

EN21 Total water discharge by quality and Fully 53 Principle 8

destination.

EN22 Total weight of waste by type and Partially 53 We are developing a Principle 8 Section E: Principle 2-
disposal method. system in place to Products Life Cycle
capture the waste by Sustainability
type and disposal
method.
To be reported by
2017
EN23 Total number and volume of Fully 53, 54 Principle 8
significant spills.

OG6 Volume of flared and vented Fully 46 Principle 8 Section E: Principle 2-

hydrocarbon. Products Life Cycle
Sustainability

OG7 Amount of drilling waste (drill mud Fully 52 Principle 8 Section E: Principle 2-
and cuttings) and strategies for Products Life Cycle
treatment and disposal. Sustainability

EN24 Weight of transported, imported, Not Not Applicable

exported, or treated waste deemed
hazardous under the terms of the
Basel Convention Annex I, II, III,
and VIII, and percentage of
transported waste shipped
internationally.

EN25 Identity, size, protected status, and Fully 54-55 Principle 8

biodiversity value of water bodies
and related habitats significantly
affected by the reporting
organization's discharges of water
and runoff.

Products and Services

EN26 Initiatives to mitigate environmental Fully 54-55 Principle 8, Principle 9 Section E: Principle 6-
impacts of products and services, Environment ; Section E:
and extent of impact mitigation. Principle 2- Products Life
Cycle Sustainability
 G3 DMA Description Reported Cross- For partially reported UNGC COP Element BRR (SEBI)
reference/ disclosures, reasons
Direct for omission & to be
answer reported in
EN27 Percentage of products sold and Not Not Applicable
their packaging materials that are
reclaimed by category.

OG8 Benzene, Lead and Sulfur content Fully 42 Principle 8, Principle 9 Section E: Principle 2-
in fuels. Products Life Cycle
Sustainability

Compliance
EN28 Monetary value of significant fines Fully 44
and total number of non-monetary
sanctions for non-compliance with
environmental laws and regulations.

Transport
EN29 Significant environmental impacts of Partially 48 Material transportation
transporting products and other is not covered under
goods and materials used for the scope 3 emissions.
organization's operations, and We are developing a
transporting members of the system to capture
workforce. scope 3 emissions for
transportation of
material.
To be reported by
2017

Overall

EN30 Total environmental protection Partially 38 Not fully available. We

expenditures and investments by are developing a
type. system in place to
capture the to capture
the environmental
expenses.
To be reported by
2017
Social:
Employment
LA1 Total workforce by employment Fully 63-64 Section E: Principle 3-
type, employment contract, and Employee's well being
region, broken down by gender.

LA2 Total number and rate of new Fully 63-64 Principle 6

employee hires and employee
turnover by age group, gender, and
region.

LA3 Benefits provided to full-time Fully 37

employees that are not provided to
temporary or part-time employees,
by major operations.

Labour/Management Relations
LA4 Percentage of employees covered Fully 66 Section E: Principle 3-
by collective bargaining Employee's well being
agreements.

LA5 Minimum notice period(s) regarding Fully 66 Principle 8

significant operational changes,
including whether it is specified in
collective agreements.
76/77
 G3 DMA Description Reported Cross- For partially reported UNGC COP Element BRR (SEBI)
reference/ disclosures, reasons
Direct for omission & to be
answer reported in
LA6 Percentage of total workforce Fully 62 Principle 1 Section E: Principle 3-
represented in formal joint Employee's well being
management-worker health and
safety committees that help monitor
and advise on occupational health
and safety programs.

LA7 Rates of injury, occupational Fully 61, 84 Principle 1

diseases, lost days, and
absenteeism, and number of work-
related fatalities by region and by
gender.

LA8 Education, training, counseling, Fully 62 Principle 1

prevention, and risk-control
programs in place to assist
workforce members, their families,
or community members regarding
serious diseases.

LA9 Health and safety topics covered in Fully 62 Principle 1

formal agreements with trade
Training and Education
LA10 Average hours of training per year Fully 63 Section E: Principle 3-
per employee by gender, and by Employee's well being
employee category.

LA11 Programs for skills management Fully 63 Section E: Principle 3-

and lifelong learning that support Employee's well being
the continued employability of
employees and assist them in
managing career endings.

LA12 Percentage of employees receiving Fully 63

regular performance and career
development reviews, by gender.

Diversity and Equal Opportunity

LA13 Composition of governance bodies Fully 14-15 Principle 6 Section E: Principle 3-

and breakdown of employees per Employee's well being
employee category according to
gender, age group, minority group
membership, and other indicators of
diversity.

LA14 Ratio of basic salary and Fully 64 Principle 6

remuneration of women to men by
employee category, by significant
locations of operation.

Social: Human Rights

Investment and Procurement Practices
HR1 Percentage and total number of Fully 65 Principle 1 to
significant investment agreements Principle 6
and contracts that include clauses
incorporating human rights
concerns, or that have undergone
human rights screening.
 G3 DMA Description Reported Cross- For partially reported UNGC COP Element BRR (SEBI)
reference/ disclosures, reasons
Direct for omission & to be
answer reported in
HR2 Percentage of significant suppliers, Fully 65 Principle 1 to
contractors and other business Principle 6
partners that have undergone human
rights screening, and actions taken.

HR3 Total hours of employee training on Fully 65 Principle 1 to

policies and procedures concerning Principle 6
aspects of human rights that are
relevant to operations, including the
percentage of employees trained.

Non-discrimination
HR4 Total number of incidents of Fully 65 Principle 1,
discrimination and corrective actions Principle 2, Principle 6
taken.
Freedom of Association and Collective Bargaining
HR5 Operations and significant suppliers Fully 65 Principle 1,
identified in which the right to Principle 2, Principle 3
exercise freedom of association and
collective bargaining may be violated
or at significant risk, and actions
taken to support these rights.

Child Labour
HR6 Operations and significant suppliers Fully 65 Principle 1,
identified as having significant risk for Principle 2, Principle 5
incidents of child labor, and
measures taken to contribute to the
effective abolition of child labor.

Forced and Compulsory Labour

HR7 Operations and significant suppliers Fully 65 Principle 1, Section E: Principle 3-
identified as having significant risk Principle 2, Principle 4 Employee's well being
for incidents of forced or
compulsory labor, and measures to
contribute to the elimination of all
forms of forced or compulsory labor.

Security Practices
HR8 Percentage of security personnel Fully 65 Principle 1, Principle 2
trained in the organization's policies
or procedures concerning aspects of
human rights that are relevant to
operations.

Indigenous Rights
HR9 Total number of incidents of Fully 65 Principle 1, Principle 2
violations involving rights of
indigenous people and actions taken.

OG9 Operations where indigenous Fully 67 Principle 1, Principle 2 Principle 5

communities are present or affected
by activities and where specific
engagement strategies are in place.

Social: Society
Community
SO1 Percentage of operations with Fully 66-68 Section E: Principle 8-
implemented local community Inclusive growth
engagement, impact assessments,
and development programs.
78/79
 G3 DMA Description Reported Cross- For partially reported UNGC COP Element BRR (SEBI)
reference/ disclosures, reasons
Direct for omission & to be
answer reported in
OG10 Number and description of significant Fully 66 Principle 1, Principle 2 Principle 5
disputes with local communities and
indigenous peoples.

OG11 Number of sites that have been Fully 8 Principle 5

decommissioned and sites that are
in the process of being
decommissioned.

Corruption
SO2 Percentage and total number of Fully 17 Principle 10
business units analyzed for risks
related to corruption.

SO3 Percentage of employees trained in Fully 17 Principle 10

organization's anti-corruption
policies and procedures.

SO4 Actions taken in response to Fully 17 Principle 10 Section E: Principle 1-Ethics,

incidents of corruption. Transparency and
Accountability

Public policy
SO5 Public policy positions and Fully 18
participation in public policy
development and lobbying.

SO6 Total value of financial and in-kind Fully 18

contributions to political parties,
politicians, and related institutions
by country.

Anti-Competitive Behaviour
SO7 Total number of legal actions for Fully 18 Section E: Principle 9-
anti-competitive behavior, anti-trust, Customer Value
and monopoly practices and their
outcomes.

Compliance
SO8 Monetary value of significant fines Fully 66
and total number of non-monetary
sanctions for non-compliance with
laws and regulations.

OG12 Operations where involuntary Fully 66

resettlement took place, the number
of households resettled in each and
how their livelihoods were affected in
the process.

OG13 Number of process safety events, Fully 60

by business activity.
Social: Product Responsibility
Customer Health and Safety
PR1 Life cycle stages in which health Fully 68
and safety impacts of products and
services are assessed for
improvement, and percentage of
significant products and services
categories subject to such
procedures.
 G3 DMA Description Reported Cross- For partially reported UNGC COP Element BRR (SEBI)
reference/ disclosures, reasons
Direct for omission & to be
answer reported in
PR2 Total number of incidents of non- Fully 68 Section E: Principle 2-
compliance with regulations and Products Life Cycle
voluntary codes concerning health Sustainability
and safety impacts of products and
services during their life cycle, by
type of outcomes.

Product and Service Labelling

PR3 Type of product and service Fully 69 Section E: Principle 9-
information required by procedures, Customer Value
and percentage of significant
products and services subject to
such information requirements.

PR4 Total number of incidents of non- Fully 69 Section E: Principle 9-

compliance with regulations and Customer Value ; Section E:
voluntary codes concerning product Principle 2- Products Life
and service information and Cycle Sustainability
labeling, by type of outcomes.

PR5 Practices related to customer Fully 69 Section E: Principle 9-

satisfacqtion, including results of Customer Value
surveys measuring customer
satisfaction.

Marketing Communications
PR6 Programs for adherence to laws, Fully 69
standards, and voluntary codes
related to marketing
communications, including
advertising, promotion, and
sponsorship.

PR7 Total number of incidents of non- Fully 69

compliance with regulations and
voluntary codes concerning
marketing communications,
including advertising, promotion,
and sponsorship by type of
outcomes.
Customer Privacy
PR8 Total number of substantiated Fully 69 Principle 8
complaints regarding breaches of
customer privacy and losses of
customer data.

Compliance
PR9 Monetary value of significant fines Fully 69
for non-compliance with laws and
regulations concerning the provision
and use of products and services.

OG14 Volume of biofuels produced and Fully 69 Principle 8

purchased meeting sustainability
criteria.

80/81
ASSURANCE
STATEMENT
Introduction
Det Norske Veritas AS (DNV) has been commissioned by the
management of Oil and Natural Gas Corporation Limited (‘ONGC’ or
‘the Company’) to carry out an assurance engagement (Type 1,
Moderate) on the Corporate Sustainability Report (the Report) for the
year 2012-13 in its printed format, against the Global reporting Initiative
(GRI) 2006 Sustainability Reporting Guidelines Version 3.0 (G3) and
AccountAbility’s AA1000 Assurance Standard 2008 (AA1000AS 2008).
The intended users of this assurance statement are the readers of the
ONGC’s Sustainability Report 2012-13. The management of ONGC is
responsible for all information provided in the Report as well as the
processes for collecting, analysing and reporting that information.
DNV’s responsibility regarding this verification is to ONGC only, in
accordance with the agreed scope of work. The assurance engagement
is based on the assumption that the data and information provided to us
is complete and true. DNV expressly disclaims any liability or co-
responsibility for any decision a person or entity would make based on
this Assurance statement.
Scope of Assurance and Limitations
The scope of work agreed upon with ONGC included the following:
• Evaluation of the disclosed information in the Report, including the
systems and the processes ONGC has in place for adherence to
the three Accountability Principles (Inclusivity, Materiality and
Responsiveness) as required for a Type 1, moderate level of
assurance, in accordance with AA1000AS 2008.
• Evaluation of the additional principles of Completeness and
Neutrality, as set out in DNV’s Protocol for Verification of
Sustainability Reporting.
The assurance engagement (Type 1, Moderate) was carried out at the
ONGC office in New Delhi and did not involve any site visits. No external
stakeholders were interviewed as part of this assurance engagement.
DNV has not verified the accuracy and reliability of quantitative data and
sustainability performance information stated in the Report.
Verification Methodology
Our assurance engagement was planned and carried out in August –
September 2013, in accordance with the DNV Protocol for Verification of
1
Order for copy at - http://www.dnvba.com/Global/sustainability/reporting-communication/Pages/sustainability-reporting.aspx
Sustainability Reporting1. As part of the verification we have challenged
the sustainability related statements/claims made in the Report and
assessed the underlying systems and processes for adherence against
the three AccountAbility Principles AA1000 APS as referred under the
‘Scope of Assurance and Limitations’ of this Statement. We have:
• Conducted desk review of ONGC’s sustainability systems,
processes and outputs, and other relevant information and
documentation made available to us by ONGC as requested by DNV;
• Conducted interviews with the core team involved in preparing the
Report and key decision-makers of ONGC;
• Performed sample-based reviews of the mechanisms for
implementing the company’s policies, as described in the report,
and for determining material issues to be included in the Report;
• Reviewed the documents of stakeholder engagement process
specifically undertaken for the purpose of the sustainability
reporting exercise.
Conclusion
In our opinion, the Report is an appropriate representation of the
ONGC’s sustainability-related policies and management systems. The
report has disclosed its sustainability performance on material aspects
from GRI 3.0 and Oil and gas sector supplement, however the
performance disclosures could be further improved by fully reporting all
core indicators for the application level A as per the GRI 3.0. We have
evaluated the Report’s adherence to the following principles on a scale
of ‘Good’, ‘Acceptable’ and ‘Needs Improvement’.
AA1000AS 2008 Principles
Inclusivity: The Company, within its reporting boundary, has further
improved its stakeholder engagement process and has engaged with
selected stakeholders through different channels and the key concerns
and actions have been fairly responded in the report. In our view, the
level at which the Report adheres to this principle is ‘Good’.
Materiality: The Company has developed the structured process to
identify significant material issues at macro level and in our opinion has
not missed out any significant, known material issues/topics. In our view,
the level at which the Report adheres to this principle is ‘Acceptable’.
Back to Contents
Responsiveness: Within the reporting boundary, the Report has fairly
responded to key stakeholder concerns. In our view, the level at which
the Report adheres to this principle is ‘Good’.
Additional Parameters as per DNV’s Protocol
Completeness: The reporting boundary is limited to domestic
exploration and production operations (assets and basins) and
processing plants, which is in under full control of management and
does not cover the entirety of ONGC group. Within the reporting
boundary, we do not believe that the Report omits relevant information
that would influence stakeholder assessments or decisions. The level at
which the Report adheres to this principle is ‘Acceptable’.
Neutrality: The Company has reported its sustainability aspects in
terms of content and presentation a neutral tone; in our view, the level at
which the Report adheres to this principle is ‘Good’.
Opportunities for Improvement
The following is an excerpt from the observations and opportunities for
improvement reported to the Management of ONGC and are considered
for drawing our conclusion on the report; however, they are generally
consistent with the Management’s objectives:
For Det Norske Veritas AS,
Vadakepatth Nandkumar
Project Manager
Head-SBE & ACS Services
Det Norske Veritas AS, India.
Bangalore, India, 22 September, 2013
• The sustainability performance may be reported for the complete
boundary i.e. the future Report’s to include all the entities under its
sphere of control and influence i.e. Joint ventures and subsidiaries.
• Strengthen the existing stakeholder engagement and materiality
determination process i.e. evolve an issue-based multi-
stakeholder engagement process to fully map expectations and
needs and arrive at the all material aspect in the sustainability
context and incorporate these as inputs into the strategic planning
process;
• The Report may bring out responses to all material issues and
respond to stakeholder expectations i.e. incorporate these as
inputs into the strategic planning process;
DNV’s Competence and Independence
DNV is a global provider of sustainability services, with qualified
environmental and social assurance specialists working in over 100
countries. The DNV assurance team were not involved in the
preparation of any statements or data included in the Report except for
this Assurance Statement. DNV maintains complete impartiality
towards any people interviewed.
Kundu Prasun
Technical Reviewer,
Det Norske Veritas AS, India.
AA1000
Licensed Assurance Provider
000-10
82/83
OUR PERFORMANCE
Six-year performance data
Financial Year (1st April-31st March) 2007 2008 2009 2010 2011 2012
Safety Unit
Recordable Incidents-employees Nos 117 204 291 86 90 162
Recordable Incidents-contractors Nos 181 163 125 135 93 55
Incidents involving injuries-employees Nos/Million hours worked 0.28 0.94 1.19 0.66 0.66 0.72
Incidents involving injuries-contractors Nos/Million hours worked 3.10 2.86 2.01 0.92 0.88 0.47
Fatalities-employees Nos 0 0 2 1 1 1
Fatalities-contractors Nos 15 9 9 11 8 3
Hours worked- employees Million hours 71.27 71.36 72.21 73.20 72.39 72.57
Hours worked- contractors Million hours 49.01 49.01 62.04 68.26 71.69 71.70
Man Days Lost-employees 17 Mandays 570 381 370 362 345 301
Man Days Lost-contractors Mandays Not recorded because the nature of our contracts guarantees the availability of man-days.
Energy, Water and Environment
Natural gas (NG) Terra joules 83127.73 85205.23 91890.28 95746.70 105523.01 103626.35
High speed diesel (HSD) Terra joules 11111.03 11919.96 12964.74 12124.59 11845.79 12229.86
Aviation fuel (ATF) Terra joules 253.93 250.34 271.76 254.55 239.04 255.17
Electricity purchased from grid Terra joules 1083.81 955.50 1048.94 2013.67 2075.05 2272.7
Total Consumption Terra joules 95576.50 98331.04 106175.72 110139.51 119682.89 117259.64
Fossil fuel - Direct emissions Million tCO2e 7.55 7.93 8.03 8.13 9.21 8.59
Electricity - Indirect emissions Million tCO2e 0.24 0.22 0.24 0.46 0.47 0.52
Business Travel - Indirect emissions Million tCO2e 0.02 0.02
Total Green House Gas (GHG) emissions Million tCO2e 7.79 8.15 8.27 8.59 9.70 9.13
Fresh water (Ground water sources) Billion litres 4.29 4.43 5.18 3.88 7.65 4.15
Fresh water (Municipal sources) Billion litres 5.16 5.03 3.92 6.26 5.25 4.23
Fresh water (Surface sources) Billion litres 13.46 13.85 12.31 20.68 17.00 17.29
Fresh water supplied for offshore Billion litres 0.09 0.09 0.09 0.09 0.08 0.12
installations
Sea water desalination for potable use at Billion litres 0.19 0.20 0.18 0.22 0.28 0.00
offshore installations
Total water usage Billion litres 23.19 23.60 21.68 31.14 30.26 25.79
Environmental expenditure Billion INR 2.90 3.78 4.38 5.10 4.95 5.90
People
Number of employees Nos 32996 33035 32826 33273 32909 32998
Turnover of employees Nos 363 280 139 86 77 85
Benefits to employees-including salaries, Billion INR 60.48 47.40 57.19 67.28 67.96 103.30
benefits and others

Performance

Crude oil production MMT 25.94 25.37 24.63 24.42 23.72 22.56

Natural gas production BCM 22.34 22.48 23.10 23.10 23.32 25.34

*All other value added product sales to be referred to Annual Report

Reserve Accretion MTOE 63.82 68.90 82.98 83.56 84.13 84.84

Community investments Billion INR 1.69 1.69 2.68 2.20 1.21 2.62

Economic Value Added (EVA) % 21.70 17.22 22.12 19.79 21.36 15.21

*All other economic figures to be referred to Annual Report

17
Lost days begin 48 hours after the accident and disclosure as per national safety guidelines Recordable incidents does not include minor (first-aid level) injuries

Back to Contents
 GLOSSARY OF TERMS
ADI- Adivasi Development Initiative
Ÿ MS- Motor Spirit
Ÿ
AIPSSPB- All India Public Sector Sports Promotion Board
Ÿ MSDS- Material Safety Data Sheets
Ÿ
ALARP- As low as Reasonably Practicable
Ÿ MTOE- Million Tonnes of Oil & Oil Equivalent Gas
Ÿ
ATF- Aviation Turbine Fuel
Ÿ MoEF- Ministry of Environment and Forests
Ÿ
BCM- Billion Standard Cubic Meter
Ÿ ML- Mining Lease
Ÿ
BD&JV- Business Development and Joint venture
Ÿ MW- Mega Watts
Ÿ
BIS- Bureau of Indian Standards
Ÿ MWH- Mega Watt Hour
Ÿ
BRR- Business Responsibility Report
Ÿ NDDF- Non Damaging Drilling Fluids
Ÿ
BSE- Bombay Stock Exchange
Ÿ NELP- National Exploration licensing Policy
Ÿ
BS&W- Basic Sediment & Water
Ÿ NFPA- National Fire Protection Association
Ÿ
BTOE- Billion Tonnes of Oil & Oil Equivalent Gas
Ÿ NGO- Non Governmental Organisation
Ÿ
CCR- Catalytic Conversions
Ÿ NRI- Non Resident Indian
Ÿ
COD- Centre of Delivery
Ÿ NSDC- National Skill Development Corporation
Ÿ
CEO- Chief Operating Officer
Ÿ NSE- National Stock Exchange
Ÿ
CIRM- Centre for Insurance and Risk Management
Ÿ O+OEG- Oil+Oil Equivalent to Gas
Ÿ
CPCB- Central Pollution Control Board
Ÿ OCC- Oil Coordination Committee
Ÿ
CPSE- Central Public Sector Enterprise
Ÿ OISD- Oil Industry Safety Directorate
Ÿ
CSR- Corporate Social Responsibility
Ÿ OHS- Occupational Health and Safety
Ÿ
DGH- Directorate General of Hydrocarbons
Ÿ OMC- Oil Marketing Companies
Ÿ
DGMS- Directorate General of Mines and Safety
Ÿ OHSAS- Occupational Health, safety and Advisory Techniques
Ÿ
DNV- Det Norske Veritas
Ÿ OGSS- Oil & Gas Sector Supplement
Ÿ
DPE- Department of Public Enterprise
Ÿ OSRL- Oil Spill Response Limited
Ÿ
EBITDA- Earnings before Interests, Taxes, Depreciation and
Ÿ OVL- ONGC Videsh Limited
Ÿ
Amortization PAT- Profit after tax
Ÿ
EMP- Environmental Management Programme
Ÿ PBDIT- Profit before depreciation interest and Taxes
Ÿ
ESG- Environmental, Social and Governance
Ÿ PSU- Public Sector Unit
Ÿ
ERP- Enterprise Resource Planning
Ÿ PPM- Parts Per Million
Ÿ
ETP-Effluent Treatment Plant
Ÿ PP- Perspective Plan
Ÿ
FY- Financial Year
Ÿ PPE- Personal Protective Equipment
Ÿ
GAIL- Gas Authority of India Ltd.
Ÿ QHSE- Quality Health Safety and Environment
Ÿ
GDP- Gross Domestic Product
Ÿ R&D- Research & Development
Ÿ
GHG- Greenhouse Gas
Ÿ RWA- Resident Welfare Association
Ÿ
GMI- Global Methane Initiative
Ÿ RCP- Regional Contingency Plan
Ÿ
GRI- Global Reporting Initiative
Ÿ RRR- Reserve Replacement Ratio
Ÿ
GRC- Governance, Risk Management and Compliance
Ÿ SCADA- Supervisory Control and data acquisition
Ÿ
HSD- High Speed Diesel
Ÿ SMS- Short Message Service
Ÿ
HSE- Health, Safety & Environment
Ÿ SKO- Superior Kerosene Oil
Ÿ
HGPC- Hazira Gas Processing Comples
Ÿ SCOPE-Standing Committee of Public Enterprises
Ÿ
HVAC- Heating Ventilation & Air conditioning
Ÿ SPCB- State Pollution Control Board
Ÿ
HP/HT- High Pressure/High Temperature
Ÿ SPV- Special Purpose Vehicle
Ÿ
INR- Indian Rupee
Ÿ STD- Subscriber Trunk Dialing
Ÿ
ISO- International Organisation of Standard
Ÿ SEBI- Securities & Exchange Board of India
Ÿ
IOR/EOR- Improved Oil Recovery/ enhanced Oil Recovery
Ÿ TJ- Terra Joules
Ÿ
JV- Joint Venture
Ÿ UTI- Unit Trust of India
Ÿ
KRA- Key Result Area
Ÿ VATMS- Vessel and Air Traffic Management System
Ÿ
LNG- Liquefied natural Gas
Ÿ VRU- Vapour Recovery Unit
Ÿ
LPG- Liquefied Petroleum Gas
Ÿ VAP-Value Added product
Ÿ
LSHS- Low Sulphur Heavy Stock
Ÿ VOH – Village of Hope
Ÿ
MCA- Ministry Of Corporate affairs
Ÿ VSDA- Viscoelastic Surfactants Based Self Diverting Acid
Ÿ
MMSCM- Million Metric Standard Cubic Meters
Ÿ WIPS- Women in Public Sector
Ÿ
MMT- Million Metric Tonnes
Ÿ WIN- Water Injection North
Ÿ
MMTPA- Million Metric Tonnes per annum
Ÿ WILR- Women in Leadership Roles
Ÿ
MoP&NG- Ministry of Petroleum and Natural Gas
Ÿ YTF- Yet to find
Ÿ
MRPL- Mangalore Refinery and Petrochemicals Ltd.
Ÿ
Oil and Natural Gas Corporation Ltd.
Regd. office: Jeevan Bharti Bldg., Tower-II, 124, Indira Chowk, New Delhi - 110001.
Tel: 23301000, 23310156, 23721756 Fax: 011-23316413 www.ongcindia.com