Oil & Natural Gas Corpn Ltd
Directors Reports
It gives me great pleasure to present, on behalf of the Board of
Directors of your Company, the 27th Annual Report on the business and operations of
Oil and Natural Gas Corporation Limited (ONGC/the Company) and the Audited Statements of
Accounts for the financial year ended 31.03.2020 (FY'20), together with the
Auditors' Report and Comments on the Accounts by the Comptroller and Auditor General
(CAG) of India.
Despite massive and unprecedented disruption due to COVID-19 during the
end of the FY'20 and resultant adverse socio-economic environment, your Company along
with its group companies, sustained performance, recorded success and growth not only in
its core activities of Exploration and Production (E&P) of crude oil and natural gas
but also in other areas of our business.
Crude oil and natural gas production by the Company, including its
share in Joint Ventures (PSC JVs) during FY'20 was 48.25 MMTOE (Million Tons of Oil
Equivalent) which is about 3.6 per cent less than the production during FY'19 (50.04
MMTOE). Your Company has been making all efforts to arrest the decline in the production
from its matured fields through various measures like Improved Oil Recovery (IOR) and
Enhanced Oil Recovery (EOR) methods and other production enhancement methods. Further,
your Company has made commendable performance in the core area of exploration by
registering Reserve Replacement Ratio of 1.19. All efforts are being made to enhance
production.
During FY'20, the accretion to In-place Hydrocarbons from Company
operated domestic fields has been 100.22 MMTOE in 2P and Estimated Ultimate Reserve (EUR)
was 53.21 MMTOE in 2P. In terms of 3P category, in-place hydrocarbon accretion was 98.99
MMTOE and EUR was 40.74 MMTOE on account of exploratory efforts from the Company-operated
areas in India.
55.26 MMTOE (about 56% of total 3P In-place volume) has been accreted
from New Discoveries.
43.73 MMTOE (about 44% of total 3P In-place volume) has been accreted
as an outcome of Field growth.
Your Company's share in In-place volume of accretion in the Joint
Venture (JV) fields in India, where it is not the operator, have been estimated to the
extent of 7.14 MMT O+OEG (3P) and 1.59 MMT O+OEG in EUR (3P).
Your Company had four direct subsidiaries, namely ONGC Videsh Limited
(OVL), Mangalore Refinery and Petrochemicals Limited (MRPL), Hindustan Petroleum
Corporation Limited (HPCL) and Petronet MHB Limited (PMHBL).
Your Company also has nine Associates/ Joint Ventures, namely ONGC
Petro additions Limited (OPaL), ONGC Tripura Power Company Limited (OTPC), ONGC TERI
Biotech Limited (OTBL), Dahej SEZ Limited (DSL), Mangalore SEZ Limited (MSEZL),
Indradhanush Gas Grid Limited (IGGL), Pawan Hans Helicopters Limited (PHL), Petronet LNG
Limited (PLL) and Rohini Heliport Limited (RHL).
1. Major Highlights: FY'20
The major highlights of your Company during FY'20 are:
a) Standalone production has been 44.57 MMTOE against 45.86 MMTOE
during FY'19.
b) Value Added Products (VAP) production was
3,548 (Thousand Tones) KT as compared to 3,641 KT during FY'19 -
mainly due to less receipt of condensate.
c) Your Company drilled 500 wells (Exploratory wells: 106, Development
and Side Track wells: 394) in spite of less Rig Months and lockdown due to COVID-19.
FY'20 is the fourth consecutive year when your Company has drilled 500 or more wells.
d) During the year gas production commenced
‘Cluster-2 Development of KG-DWN-98/2', in East Coast on
05.03.2020 from the well #U3B.
e) Your Company declared total 12 discoveries
(7 New Prospects and 5 New Pools) in its operated acreages.
f) Reserve Replacement Ratio (RRR) from domestic fields was 1.19 with
respect to 2P reserves. With this, the Company achieved Reserve Replacement Ratio (2P) of
more than 1 for the 14th consecutive year.
g) Your Company monetized 22 discoveries. Out of these, 4 discoveries
at Vanjiyur, Billakurru, Nandigamma North and Sundulbari, were made in the current year
and remaining 18 pertain to preceding years.
h) Buoyed by the path-breaking successes in well Hatta-2 in Vindhyan
and Asokenagar-1 in Bengal on-land Basin last year, a conscious effort was undertaken for
acquisition of open acreage areas around these discoveries.
i) Panna-Mukta operations were handed over back to the Company by the
current operator on 21.12.2019 post expiry of PSC contract with JV partners. Your Company
has taken over these fields after 25 years. Your Company has taken over operations of
these fields seamlessly and revived production.
j) Your Company was awarded 15 blocks in different rounds under Open
Acreage Licensing Policy (OALP) bidding.
The Company also bagged all seven Oil and Gas Blocks offered in the
fourth bid round of the OALP of the Ministry of Petroleum and Natural Gas (MoPNG).
k) Under the Policy Framework to promote and incentivize EOR method for
oil and gas, Government of India (GoI) presented an opportunity to your Company to further
expand its EOR portfolio. Under this policy,
22 onshore and 5 offshore fields qualified for EOR Screening. Four
onshore fields (Balol, Santhal, Sanand and Gandhar) have already been put under commercial
EOR applications. Further, commercial EOR schemes have been implemented in two onshore
fields (Viraj and North Kadi) after ER policy.
l) Eleven major projects, costing around Rs 218,822 Million, were
completed during the year. Further, as on 31.03.2020, a total of 17 major projects
(Development-10, Infrastructure-7) were under various stages of implementation.
m) Three major projects (MHNRD Phase-IV, HRP-III, PRP-VI) with an
investment of Rs 64,870 Million and envisaged oil and gas gain of 13.62 MMTOE were
approved.
n) Your Company announced Notice Inviting Offer (NIO) in June, 2019
seeking paricipation for enhancement of oil and gas production from its 64 marginal
nomination fields by infusion of new technology. Notice of Award (NOA) were issued on
14.05.2020 to seven successful bidders, in 13 contract areas, for 49 of these marginal
nomination fields.
o) Hazira Dahej Naphtha Pipeline (HDNPL), to facilitate direct supply
of Naphtha from the Company's Hazira Plant to OPaL, commissioned in Nov'2019,
resulting in substantial cost savings in transportation of Naptha to OPaL.
p) Hazira Plant has been successful in production of special grade of
High Flash High Speed Diesel (HFHSD) – viz. NATO grade HFHSD, for specific use of
Indian Navy being supplied through Indian Oil Corporation Limited (IOCL). Supply of NATO
grade HFHSD started from Hazira Plant from August 2019.
q) Your Company has obtained 9 patents and also filed for another 9
patents. r) Y our Company raised USD 300 Million year bond at coupon rate of 3.375% in
International Market, lowest by any Indian Issuer for 10 year or longer
tenure, which further demonstrates the credentials of your Company as an integrated energy
major in international investor community.
s) Revenue from operations stood at Rs 962,136 Million against Rs
1,096,546 Million (restated) in FY'19.
t) Net profit was Rs 134,445 Million against Rs 267,646 Million during
FY'19 (restated) mainly due to lower realisation on crude and exceptional item
towards impairment.
2. Global Recognitions
Your Company has been ranked at 17th among global energy majors in the
world by Platt's Top 250 Global Energy Company Rankings-2019 based on assets,
revenues, profits and return on invested capital. Among Indian companies, your Company has
been ranked at No. 1. The leading international business journal Forbes in its 2020 list
has ranked your Company 5th largest in India and 269th worldwide based on sales, profit,
assets and market value. Further, your Company is ranked 190th globally and 3rd in India
in 2020 ranking update of Fortune Global 500 list.
3. Details of discoveries
Your Company has declared following twelve new discoveries during
FY'20 in its operated acreages, which resulted in accretion of 55.26 MMTOE In-place
volume and 7.76 MMTOE of EUR.
Prospect discoveries:
1) Vanjiyur oil discovery #3 in Cauvery On land (L-II Petroleum Mining
Lease - PML);
2) Billakurru gas discovery #1 in KG On land (Godavari Mining Lease
-ML);
3) Nandigama North oil discovery #1 in KG On land (West Godavari PML);
- 4) B-218 oil discovery in Mumbai Offshore (Shallow Water - SW) in
extension of NW-MH PML;
5) B-219 oil discovery in Mumbai Offshore (SW) in extension of NW-MH
PML;
6) R-12-6 oil discovery in Mumbai Offshore (SW) in Ratna & R-series
PML; and
7) YS-6-2 gas discovery in KG offshore (Yanam PML).
Pool discoveries:
8) SDP-55 Pay (Mid. Bhuban) gas discovery in SD#12 in
Sundulbari-Agartala Dome in Assam and Assam Arakan (A&AA) basin;
9) SDP-22 and 23 pays (Upper Bhuban) gas discovery in SD#15 in West
Tripura PML in A&AA basin;
10)SD-6 Pay gas discovery in Gummaturu-1 (GMTAA) in Raghavapuram
Formation in Kavitam Additional PML in KG Onshore;
11)SD-4 Pay gas discovery in Penugonda-5 (PGAE) in Raghavapuram
Formation in Kavitam Additional PML in KG Onshore; and
12)L-II Pay (Bandra Formation) in WO-24-10 (SW WO-24 field), in NW-MH
PML in Western offshore Basin.
Out of 12 discoveries made during FY'20, four discoveries i.e.
Vanjiyur, Billakurru, Nandigama North and SDP-55 of well SD-12 were monetized during the
same year. Total 22 discoveries were monetized during FY'20, in addition to above18
discoveries of the earlier periods were also monetized during the year.
4. Award of E&P Blocks
Your Company was awarded 15 Blocks under OALP Rounds (OALP-II,
OALP-III, and OALP-IV), with an area of 32,117 Km2 of exploration acreage in different
sedimentary basins of the country - 23,732 Km2 of the acreage in onshore while 8,385 Km2
in offshore (Shallow Water
(SW): 5,894 Km2; Deep Water (DW): 2,491 Km2). Your Company has already
started exploratory activities in few of the awarded blocks and has acquired 1,432.14
Square Kilometer (SKM) of 3D data in MN-DWHP-2018/1 block (Mahanadi deep-water) and 310
Line Kilometer (LKM) of 2D and 88.22 SKM of 3D seismic data in MB-OSHP-2018/1 block
(Mumbai Offshore-SW).
5. Reserve Position and Reserve Accretion
Your Company adopted Petroleum Resource Management System (PRMS) for
estimation of hydrocarbon reserves. With this approach, as on 01.04.2020, accretion of
In-Place Hydrocarbons (3P) from the Company operated fields stood at 98.99 MMTOE due to
exploratory efforts, out of which 56 per cent accretion were on account of New
Discoveries.
Total In-Place Reserve Accretion during FY'20 in domestic basins
was 106.14 MMTOE, including 7.14 MMTOE from the Company's share in PSC JVs.
As on 01.04.2020, total In-Place Hydrocarbon Volume (3P) of the Company
Operated and JV Fields stood at 9,997.22 MMTOE against 10,002.63 MMTOE as on 01.04.2019.
The Estimated Ultimate Recovery (3P) at the end of FY'20 was assessed at 3,286.63
MMTOE against 3251.60 MMTOE estimated as on 01.04.2019.
During the year, the Estimated Ultimate Recovery (EUR) accretion in 2P
category from the Company operated areas in India was 53.21 MMTOE.
Accretion of In-Place Hydrocarbons and Estimated Ultimate Recovery
(EUR) by the Company in its operated areas and in Non-Operated areas (JV Share) during
FY'20 and position of In-Place Hydrocarbons and Estimated Ultimate Recovery (EUR) as
on 01.04.2020 were as below:
Units in MMTOE
|
In-place Hydrocarbon volumes
and Estimated Ultimate Recovery (EUR) |
| Accretion during the year 2019-20 |
|
|
|
|
Position as on 01.04.2020 |
|
| Reserve Type |
|
Company Operated |
JV Operated |
Total |
Company Operated |
JV Operated |
Total |
| In-place |
2P |
100.22 |
2.71 |
102.93 |
8,150.16 |
667.82 |
8,817.98 |
| Hydrocarbon |
|
|
|
|
|
|
|
|
3P |
98.99 |
7.14 |
106.14 |
9,305.04 |
692.18 |
9,997.22 |
| EUR |
2P |
53.21 |
1.74 |
54.95 |
2,939.78 |
119.68 |
3,059.45 |
|
3P |
40.74 |
1.59 |
42.33 |
3,166.74 |
119.89 |
3,286.63 |
Note: EUR position as on 01.04.2020 (EUR=Cumulative Production +
Reserves + Contingent Resources).
Units in MMTOE
|
Position of Reserves and
Contingent Resources as on 01.04.2020 |
| As per PRMS# |
Category |
Company Operated |
JV Operated |
Total |
| Reserves |
2P |
751.72 |
20.64 |
772.35 |
|
3P |
810.38 |
20.85 |
831.23 |
| Contingent Resources |
2C |
408.38 |
- |
408.38 |
|
3C |
576.68 |
- |
576.68 |
Note: # as per PRMS adopted w.e.f. 01.04. 2019.
Units in MMTOE
The details of Reserve Accretion (2P-Proved and Probable) for the last five years in
Company's basins is given in the table below.
| Year |
Company Assets (1) |
Company's share in
JVs (2) |
Total (3)=(1)+(2) |
| 2015-16 |
65.58 |
0.80 |
66.38 |
| 2016-17 |
64.32 |
0.22 |
64.54 |
| 2017-18 |
67.83 |
1.02 |
68.85 |
| 2018-19 |
63.02 |
11.45 |
74.47 |
| 2019-20 |
53.21 |
1.74 |
54.95 |
Note: Reserve Accretion reported in terms of 2P reserves.
6. Drilling of Wells
Your Company drilled 500 wells during FY'20, including 5
exploratory and 10 development wells in KG deep-water block, as against 516 drilled during
FY'19, as given under:
| Well Description |
FY'19 |
FY'20 |
| Exploratory (including shale) |
105 |
106 |
| Development |
373 |
357 |
| Side Tracks |
38 |
37 |
| Total |
516 |
500 |
7. Oil, Gas and VAP Production
Crude oil and natural gas production of the Company along with its
share in the PSC JVs during FY'20 was 48.25 MMTOE (23.35 MMT of crude oil and 24.90
BCM of gas) which was
~3.58% less than production during FY'19 (50.04 MMTOE).
On standalone basis, Company's production during the year was
44.57 MMTOE; with a decrease of 2.82% (45.86 MMTOE in FY'19).
On standalone basis, production from Company operated fields was 20.71
MMT of crude oil (21.11 MMT in FY'19) and 23.85 BCM (Billion cubic meters) of Natural
gas (24.75 BCM in FY'19).
Your Company's share of production through JV operations was 2.64
MMT of crude oil (3.12 MMT in FY'19) and 1.04 BCM of natural gas (1.06 BCM during
FY'19).
Production of VAP was 3.548 MMT against 3.640
MMT in FY'19 (decreased by 2.6%).
Detaitls of production, sales quantity and value, productwise during
FY'20 with comparision of FY'19 is as under:
| Description |
Unit |
Production Qty |
Sales Qty |
Value (Rs |
in Million) |
|
|
FY'20 |
FY'19 |
FY'20 |
FY'19 |
FY'20 |
FY'19 |
| Crude Oil |
(MMT) |
23.35 |
24.23 |
21.34 |
22.50 |
6,48,363 |
775,729 |
| Natural Gas |
(BCM) |
24.90 |
25.81 |
19.40 |
20.48 |
1,93,556 |
188,389 |
| Value Added Products (VAP) |
|
|
|
|
|
|
|
| Liquefied Petroleum |
000 MT |
1,013 |
1,107 |
1,011 |
1,109 |
36,038 |
43,490 |
| Gas |
|
|
|
|
|
|
|
| Naphtha |
000 MT |
1,115 |
1,175 |
1,177 |
1,154 |
39,863 |
46,861 |
| Ethane-Propane |
000 MT |
345 |
414 |
346 |
414 |
8,155 |
10,063 |
| Ethane |
000 MT |
536 |
455 |
535 |
456 |
12,937 |
10,109 |
| Propane |
000 MT |
224 |
210 |
219 |
207 |
7,251 |
7,948 |
| Butane |
000 MT |
125 |
114 |
125 |
115 |
4,208 |
4,470 |
| Superior Kerosene Oil |
000 MT |
54 |
66 |
55 |
71 |
2,465 |
3,355 |
| Others* |
000 MT |
135 |
99 |
91 |
58 |
4,178 |
2,585 |
| Sub Total (VAP) |
000 MT |
3,548 |
3,640 |
3,559 |
3,584 |
1,15,095 |
128,881 |
| Total |
|
|
|
|
|
9,57,014 |
1,092,999 |
*Others include ATF, Sulphur-P, Sulphur-C, LSHS, HSD, LDO and MTO
Production from Overseas Assets - ONGC
Videsh Ltd
Your Company's overseas operations are carried out exclusively
through ONGC Videsh Limited (OVL), the wholly owned subsidiary. OVL in turn conducts its
operations either directly or through its subsidiaries. Production from overseas assets
during FY'20 was 14.981 MMOE in comparison to 14.833 MMTOE during FY'19; an
increase of approx.1%. The oil production during FY'20 was 9.755 MMT; 3.4% less
compared to the production (10.097 MMT) during FY'19.
The reduction is mainly because of exit from the Greater Nile Petroleum
Operating Company (GNPOC), Sudan in August 2019, and lesser than anticipated production
from Vankor field in Russia, San Cristobal and Carabobo fields in Venezuela, and ACG,
Azerbaijan. The gas production of 5.226 BCM during the year was
10.3% higher compared to FY'19 production of
4.736 BCM with better performance of Block 6.1 in Vietnam and A1&A3
projects in Myanmar.
Oil and Gas production of your Company including contribution from JVs
and Overseas assets for FY'20 was 63.23 MMTOE (against 64.88 MMTOE in FY'19).
8. COVID-19 and ONGC's response
The COVID-19 pandemic, which originated in late-2019, has now assumed
substantial global proportions with significant human, societal and economic impact.
Radical lockdown measures that were executed, early on, across several countries,
accounting for more than half of the global population and energy consumption, to contain
the spread of the disease brought the world to a standstill like never-seen before.
While lockdown measures still continue in some form in different
countries based on the current severity of the pandemic, the economic impact of the
lockdown was particularly pronounced in the month of April, 2020. Like any other sector of
the economy, oil and gas industry too has been adversely affected by the fallout of the
COVID-19 pandemic.
Oil and gas counts among the country's essential and strategic
resources and sustaining hydrocarbon operations becomes even more critical under
exceptional circumstances such as this. Your Company has taken cognition of its role as
the country's leading upstream player and stands well equipped to sustain this kind
of emergency situation. Based on the perceived threat posed by the pandemic and in
anticipation of a possible disruption in future, the Company has prepared itself
operationally to ensure critical supplies of oil and gas without compromising the health
and safety of its valued workforce including contract workers.
However, the challenges posed by COVID-19 are multi-layered, complex
and evolving on a daily basis – a situation that is unprecedented for our times. Your
Company's COVID-19 response is premised on preserving ‘People, Material and
Resources', and continuously reassessing its efficacy and effectiveness and also
revisiting the strategies based on regular updates from operations teams, channel
partners, and in-house HSE, Risk and Medical teams. For better coordination and
information dissemination, OCAY Desk (ONGC Covid19 Assistance for You), a 24x7 Helpdesk
for Covid19 has been established. Further, your Company has maintained its average
production levels throughout the period as the country has been under a state of lockdown
notwithstanding the supply and logistical constraints imposed by the situation.
Furthermore, your Company embarked upon a massive country wide well-coordinated crew
change operation named ‘Operation Nishtha', to ensure safe return of
operational crews, who had been performing extended duty for 50-60 days against their
normal duty pattern of 14 days at various location of field operations.
As a responsible corporate, your Company contributed Rs 3,000 Million
to PM CARES fund and around Rs 242 Million worth of CSR projects have so far been
undertaken countrywide benefitting more than 43 lakh fellow countrymen through
distribution of food supplies, masks, PPE kits, sanitizers and funding of ventilators in
hospitals. ONGCians, on their part, donated two days' salary in the month of
April'20; and one day salary during May and June 2020 amounting to about Rs 255
Million to PM CARES Fund.
9. Technology induction/up-gradation
Technology induction/up-gradation in various areas of operations is a
continuous process in your Company to remain effective and competitive. The following
technologies were evaluated/ inducted during FY'20:
a. Remote sensing image processing software suite with
extensions/add-ins for physics-based atmospheric correction. Software: ERDAS Imagine,
Extension/ Plug-in: ATCOR: Software would help in basic and advanced raster
image data processing and pre-processing of multispectral/hyper-spectral visible-shortwave
infrared as well as thermal infrared image data with built-in extension for
radioactive-transfer physics-based absolute atmospheric and in spectral mapping of
lithology and identifications of micro-seeps, thus providing an interpretative edge over
existing verticals. This would also support batch processing of large data volumes
dedicated with built-in spatial modelling functionality to integrate spatial and
non-spatial data. It is useful for 3D geospatial rendering and geoprocessing, topographic
analysis and manipulation of DEM/ DSM/ DTM data derived from stereo-photogrammetry, SAR or
LiDAR for hydrographic and geomorphic derivatives.
b. CUDA FORTRAN Compiler Graphic
Processing units (GPUs) have evolved into programmable, highly parallel
computational units with very high memory bandwidth. GPU designs are optimized for the
computations found in graphics rendering, but are general enough to be useful in many
data-parallel, compute-intensive programs common in high-performance computing. The
compiler has been inducted with the intent of developing specialized software applications
as a part of R&D activities.
c. CRAM (Common Reflection Angle Migration): A new depth migration
software which is a multi-arrival depth domain solution which works in local angle domain
and outputs angle gathers in depth. This is a highly compute (computational) intensive and
resource intensive application. CRAM is designed for detailed velocity model building and
for precise imaging in areas with complex structure and velocity for 3D onshore and
offshore data.
d. Big Data analytics: The Company has successfully implemented big
data analytics using Machine learning approach. This technology can be employed to handle
large datasets for analysing seismic and micro-seismic data, improving reservoir
characterization and simulation etc. The approach was successfully implemented in the
prediction of reservoir properties in B-12/ C26 area of western offshore basin during
FY'20.
e. Broadband processing technology: In-house capability for
Broadband processing technology of broadband data has been developed, which helped in
increasing image resolutions with its analysis on Amplitude Versus Offset, leading to
substantial savings of foreign exchange.
f. E-line Well Intervention Services: The first E-line Intervention
job was carried out in well HSC-2ZH of Heera field in Western Offshore Basin. Rig-less
well intervention services were deployed with the objective to retrieve Grating Light
Valve (GLVs) and set these GLVs in the deviated zone (angle: 68) to maximize production.
In the past, there had been various constraints to retrieve and reinstall GLV in high
deviation wells with other intervention technologies that were deployed in the field. The
GLV change job was successfully completed in this well.
g. Dual Zone Testing (DST): DST has added immense value during
testing in the Well B189#A by saving significant Rig-days (six days) and by providing real
time data, opening a new chapter for future dual zone testing in a single DST run. Use of
dual zone DST helped the Company in improving operational efficiency and also maintaining
the highest level of operational standards along with safety in the offshore environment.
h. GEOTEST1000. A new state-of-the-art technology GEOTEST-Triaxial
Rock testing laboratory from Vinci Technology, France was inducted in June 2019 and will
be helpful in determining the varied range of geo-mechanical properties.
i. Up-gradation of processing system for genomic analysis: Technology
up-gradation of processing system to amplify the target 16s rRNA gene of bacteria for
identification of oil degrading bacteria through Polymerize Chain Reaction was
successfully completed during the year. This technological upgradation will help in
isolating and finding potent Polycyclic Aromatic Hydrocarbon (PAH) degrading bacteria for
bioremediation of soil and effluents contaminated with high concentration of PAH and will
be useful in field implementation project for bioremediation of crude oil contaminant soil
and effluents.
j. Under the Make in India campaign Your
Company, in collaboration with IOCL, has developed the following
materials for operational requirements:
1. Base Oils suitable for Drilling Fluids for Low Toxicity Oil Base
Mud; and
2. High Pressure Extreme Pressure lubes for Drilling Fluids.
10. Technology developed/ tested in-house and absorbed for IOR/ EOR
processes:
a. North Kadi polymer flood: The chemical
EOR technology i.e. polymer flood in North Kadi field was
conceptualised for commercialization. The scheme was commissioned on 17.01.2020 ahead of
its target schedule of August, 2021. The target STOIIP of the scheme is approximately 18
MMT and the envisaged incremental oil in polymer flood at end of 15 years will be
approximately 0.769 MMT over base case.
b. Bechraji Polymer flood pilot: Feasibility
Report for polymer flood in Bechraji heavy oil field of Mehsana Asset
was approved. This is for the first time that polymer flood is planned in heavy oil. The
Pilot started on 06.05.2019.
c. Commercialization of ASP Flood in Viraj
(K-IX+X): Field scale Alkali-Surfactant-Polymer flooding (ASP)
scheme consists of four phases of chemical injection followed by chase water injection.
The implementation of the ASP project commenced in July'19.
The commercialization of ASP injection in K-IV sand of Viraj field
envisages ASP injection @1,120 m3/d through fourteen injectors in inverted 5-spot pattern.
It envisaged oil recovery of 0.3 to 0.6 MMT.
d. Cyclic Steam Stimulation (CSS) Pilot in
Lanwa Field: Lanwa CSS pilot is being taken up with an envisaged
incremental gain of 0.312 MMT. The scheme is likely to commence during FY'21.
e. Immiscible Gas Injection in Borholla Field: Immiscible gas
injection EOR initiatiated on pilot scale in Borholla Field, Jorhat from January 2017.
Positive results observe in terms of increase in reservoir pressure and arrest of
production decline. Based on success of pilot scheme, full field development scheme has
been prepared with envisaged incremental oil gain of 0.3
MMT and recovery of 35.6% by 2030. Field
Report (FR) has been approved and scheme is under implementation.
f. Gas Assisted Gravity Drainage (GAGD) in Kasomarigaon Field: GAGD
EOR scheme in Kasomarigaon Field, Jorhat envisaged incremental oil gain of 0.31 MMT with
recovery of 33% by 2030. FR has been approved and the project is under implementation.
g. Immiscible Gas Injection in Bokabil pay of Khoraghat Field: The
immiscible gas injection EOR scheme envisaged incremental oil gain of 0.153 MMT and
recovery of 22.7% by 2035. FR has been approved and the project is under implementation.
h. in Gandhar Field: Simulation
Miscible CO2
for GS-9 and GS-11 layers were studied and incremental oil gain of
8-10% is expected by 2042 with 75 new injector wells. Lab studies and simulation were
completed and EOR implementation has been planned by injecting captured from IOCL's
Koyali
CO2
refinery. In this regard, Memorandum of Understanding was signed with
IOCL on 01.07.2019.
i. LoSal water flood in Mumbai High Field: As a step towards
solution search for offshore EOR, single well micro pilot for Low Salinity (LoSal) water
flood was carried out in January 2017 in Mumbai High South field. Based on laboratory and
field results, multi-well pilot application of Low Salinity Water Flood (LSWF) in western
periphery of Mumbai High Field is currently under implementation which envisages
incremental oil gain of 0.846 MMT by 2035. The project is likely to commence during
FY'21.
j. During FY'20, the following technologies were developed by the
Institute of Oil and Gas Production technology (IOGPT), Panvel:
i. "Enzyme Application for Wellbore
Cleaning to Remove Mud Cake in Oil/ Gas Wells to Enhance the
Productivity"
- The patented formulation is useful for effective degradation of mud
polymer cake formed in horizontal section of well bore during drilling operations.
ii. "Gelled Emulsified Acid System for Stimulation of Carbonate
Reservoirs".
The patent formulation is a Gelled Emulsified Acid System with dual
properties of high viscosity and reaction retardation for effective matrix acidization and
acid fracturing of carbonate reservoirs.
iii. "Composition and Process for
Preparation of a Fracturing Fluid".
The patent relates to a formulation and process for preparation of a
polymer-free fracturing fluid comprising of visco-elastic surfactant.
iv. "Method for Recovering Heavier
Hydrocarbons from Liquefied Natural Gas". The patented process
offers high efficiency in cold energy utilization, minimizes infrastructure requirements
and maximizes recovery of heavier hydrocarbons. It also reduces utility requirements and
can be easily integrated with existing LNG regasification terminals.
v. ‘Novel Demulsifiers for Separation of Water from Oil and
Preparation thereof" jointly with M/s. National Chemical Laboratory, Pune,
Maharashtra. The patent relates to a low temperature process for demulsification of crude
oil using novel crude oil demulsifier with greater than 95% efficiency.
vi. Copyright for "Software
i-Procal v-1", developed on Visual Basic Platform for Sizing
and Rating of Various Process Equipment.
vii. Identification of Suitable Diverters for
Improving Diversion Efficiency for Fracturing Operation in more than
one Perforated Interval: With comprehensive laboratory experimentations and studies,
IOGPT has developed a Novel, eco-friendly, biodegradable particulate Poly Lactic Acid Pill
for application in fluid diversion in hydraulic fracturing operations.
viii. Work-over Fluid for Sub Hydrostatic Gas Wells: An innovative
eco-friendly Polylactide based Self-degradable Loss Control Particulate Pill could be
developed by IOGPT after extensive laboratory studies to address fluid loss in
sub-hydrostatic gas wells.
ix. H2S Reduction in Dispatched Oil from
B-193 Platform: IOGPT recommended scheme of use of sweet gas as
stripper gas in a stripper column was successfully implemented in B-193 process complex to
sweeten the crude oil.
x. Wax removal by Exothermic Chemical
Reaction: A technology developed by IOGPT utilizes the heat
liberated through controlled exothermic chemical between aqueous nitrogenous salts for
melting the paraffin deposits. The technology was successfully implemented in wells of
Mehsana and Cambay Asset.
11. Other Exploration Initiatives and Activities
a. National Seismic Programme (NSP):
Towards complying with the mandate of
2D seismic Acquisition, Processing and Interpretation (API) of 42,211
LKM assigned by GoI in un-appraised areas of Indian sedimentary basins grouped in 11
on-land sectors, your Company, as on 31.03.2020, has completed data acquisition of
40,137.38
LKM (95.1%) and processed about 35,422.38 LKM (83.9%) of complete
seismic lines. The interpretation of data is also being carried out and at the end of
FY'20, your Company completed the interpretation of about 22,003.97 LKM (52.1%). This
data in turn would contribute in augmenting domestic production of oil and gas. The entire
assignment of the on-going API Project would be completed during FY'21.
b. Basement Exploration:
To continue with the efforts towards Basement
Exploration, your Company has characterized basement reservoirs in
different basins during FY'20. It adopted various initiatives including fracture
characterization and fracture distribution modelling. This included drilling of 22 wells
together with 11 exploratory wells with Basement as a main objective in different acreages
of the Company falling in A&AA, Cambay, Cauvery, KG and Western Offshore Basins. An
innovative work flow has been adopted for the first time in Fracture Characterization of
intrusive bodies within Mesozoic Sequence in different blocks viz. GK-28/42,
GK-OSN-2009/1, GK-OSN-2010/1, GS-OSN-2004/1, falling in Kutch-Saurashtra area in Western
Offshore. The entire study was carried out on facies model of Trap by preparing General
Circulation Models and fracture modelling supplemented with stochastic porosity mapping
and calibrations. The study helped in identification of five prospects in GK-28/42 area
for future exploration. Basement prospectivity analysis based on Automatic Fault
Extraction and Vector Analysis around B-45, B-192 and WO-24 fields, south west of Mumbai
High area has also been completed during the year with identification of two more
prospects. Your Company has been involved in successful planning and monitoring of
basement reservoir in Thirunagari, Pundi and Panadanallur fields of Cauvery Basin. During
FY'20 Padra-132,135,136 wells in Cambay basin produced oil and gas; and in totality
the Production curve has shown a sharp rise in the Trap section in last five years in the
Padra area due to optimal placement of wells in the fractured zones. Twenty three new
locations have been firmed up in Padra area for targeting specific fractures.
c. HP-HT Exploration:
High Pressure-High Temperature (HP-HT) and tight reservoirs are
known to have typical challenges in the form of borehole complications, fluid design,
high-cost drilling technology, HP-HT cementing, well construction and other reservoir
engineering problems. Despite these challenges, your Company has successfully established
hydrocarbon in HP-HT reservoirs like, - Bhuvnagiri, Malleswaram, Periyakudi, Kottalanka,
Bantimulli South, Yanam shallow Offshore, GS-OSN-2004,G-4-6 and certain areas of Assam
Arakan Fold Belt.
During FY'20, HP-HT and tight gas plays had a mixed bag of
successes and failure. Exploration in Yanam shallow offshore in KG basin has led to
discovery of gaseous hydrocarbons from the lower synrift sequence in the well YS-6-2 sub
(drilled in FY'19) indicating development of sweet spots. Your Company has notified
YS-6-2 sub-gas discovery as a new prospect. The successful testing of the well using
state-of-the-art technologies and testing fluids proved the capabilities of the Company.
On the other front, the wells in Deendayal block in East Coast, where testing with
multiple HP-HT hydro-fracturing did not yield the desired results, continue to be a
challenge in developing the complex HP-HT reservoirs.
Geo-cellular Modelling, dynamic modeling and reservoir simulation
studies of Nagyalanka field in Andhra Pradesh were undertaken, based on which nine
development locations were identified and three locations are prioritized for drilling and
multistage hydro-fracturing where an incremental oil production from these locations is
around 300 m3. Multiple hydro-fracturing in the Eastern Offshore field DDW-D5 has been
completed and during the year two wells DDW-D6 and DDW-D7, in the same area, have been
taken up for drilling. Another well B-41-2 in Mumbai Offshore basin was drilled, which on
testing did not give any encouraging results.
Presently, your Company has been producing from four HP-HT fields viz.
Periyakudi in Cauvery Basin, Bantumilli South and Nagayalanka fields in KG Onland and Deen
Dayal West field in KG Offshore.
12. Exploration and Production from Unconventional Sources
a. Coal Bed Methane (CBM):
Currently your Company is operating four CBM blocks in Jharia, Bokaro
and North Karanpura in Jharkhand and Raniganj in West Bengal. Exploration activities have
been completed in these blocks and developmental activities are at an advanced stage in
three of these blocks viz. Bokaro, Jharia and North Karanpura.
During FY'20, in Bokaro CBM block, 26 wells (18 vertical and 8
inclined) were drilled and 17 wells were tested. Dewatering has been taken up by lowering
artificial lifts. Gas break-in was observed in 13 wells.
In North Karanpura CBM Block, total 26 wells were taken up for
drilling; out of which 18 wells have already been drilled. In addition, Hydro-fracturing
has been carried out in 19 wells and gas break-in was observed in four of these wells.
b. Shale Gas:
Your Company has assessed shale gas/oil potential in 24 blocks from
50 nomination PML blocks identified for shale gas/oil exploration in the country. As on
31.03.2020, drilling of 29 wells (including 10 exclusive wells and 19 dual objective
wells) were completed in four basins viz. A&AA, Cambay, Cauvery and KG Basins.
Further, two exclusive shale wells (NJSGA in Cambay Basin and MDSGA in KG Basin) and one
dual objective well PGAE (KG Basin) were drilled.
Currently, one dual objective well LKEAA in KG Basin is under drilling.
Efforts are on to establish the shale gas/oil potential in the identified blocks.
Indications of presence of shale oil have been recorded in wells like - JMSGA, NSGB and
NJSGA in Cambay Basin and WGSGA in KG Basin during activation after hydro-fracturing. One
zone within Nawagam Middle Pay (Tight Reservoir) of shale well NGSGA of Cambay Basin was
hydro-fractured and on activation produced oil. The shale well WGSGA in KG Basin, requires
further activation whereas in another well GNSGC in Cambay Basin hydro-fracturing job is
to be carried out.
c. Underground Coal Gasification:
Your Company had taken an initiative to test the Underground Coal
Gasification (UCG) technology in India for which all the ground work has been completed
with obligatory inputs for construction and implementation of UCG R&D Pilot Project at
Vastan Mine block site belonging to GIPCL in Naninaroli, Surat district, Gujarat to
establish UCG technology. However, there is not much progress as all state PSUs of
Gujarat, including MOU partner, Gujarat Industries Power Company Limited, backed out of
the UCG project due to the low calorific value of the Syngas.
Additionally, processing of gas at surface shall be a challenge as
Syngas has many impurities and contamination, and also non-availability of business
partners from Coal/ Chemical/ Power sectors for business ease during pilot/
commercialization. Considering all the factors and current gas price scenario, your
Company might not commit further in this line of business.
d. Gas Hydrate Exploration Program
Your Company has been an active contributor to gas hydrates
exploratory research under National Gas Hydrate Program (NGHP) of GoI since its inception
in the year 1997. So far, your Company has played a significant role in successful
execution of NGHP-01 and NGHP R&D Expedition-02. With the focus on the pilot
production testing, the gas hydrate reservoirs discovered during NGHP-02 (Block
KG-DWN-98/5) have been delineated and Geo-cellular modelling for the gas hydrate rich
reservoir has been completed to get detailed cell-wise geophysical/reservoir parameters
around the proposed site for pilot production test during next NGHP-03 expedition.
Potential exploitation methodologies like sand control measures, well
design, well bore completions and depressurization techniques, various production
simulation modelling and other studies have been carried out in collaboration with USA.
Gas Hydrate Research & Technology Centre (GHRTC) of your Company is
involved in R&D activities in exploration for gas hydrate prospects in Indian deep
waters and potential exploitation methodologies for gas hydrates through in-house efforts
and PAN-IIT collaborations. This institute will also contribute to GoI's plan to
commercialize
Gas Hydrates as energy resource, at the earliest.
Presently, your Company has been working on identification of gas
hydrate prospective areas in part of CY-DWN-2004/1 and MNDWN-2002/1 blocks in Cauvery and
Mahanadi Basin respectively for future field expeditions. Besides, your Company has also
been working on pre-stack seismic data analysis for Gas hydrates characterization/
delineation in part of KGDWN 98/2 Block in KG offshore.
13. Oil & Gas Projects
Projects completed during FY'20
Following eleven major projects (9 development and 2 Infrastructure)
costing around Rs 218,822 Million were completed during the year:
| Sl Project Name No |
Completion Date |
Project Cost ( Rs in
Million) |
Oil gain* (MMT) |
Gas Gain (BCM) |
| Development Projects |
|
|
|
|
| 1 NW B-173A Development Plan |
03.05.2019 |
3,655 |
0.76 |
0.213 |
| 2 Field Development Plan of NELP Block KG-
ONN-2003/1-NAGYALANKA-KG ONLAND |
10.09.2019 |
2,850 |
0.83 |
0.343 |
| 3 Development of BSE-11 Block |
13.10.2019 |
5,442 |
0.57 |
0.568 |
| 4 4th Phase Development NBP Field |
03.10.2019 |
11,136 |
2.08 |
- |
| 5 Daman Development Project |
31.10.2019 |
47,972 |
3.811 |
26.93 |
| 6 MH South Redevelopment Ph-III |
31.03.2020 |
49,539 |
7.547 |
3.864 |
| 7 Integrated Development of B-127 Cluster Fields(including
B-55 field) |
31.03.2020 |
20,209 |
1.992 |
4.68 |
| 8 Enhanced Recovery of Bassien field through Mukta, Panna
formations |
31.03.2020 |
46,549 |
1.729 |
18.83 |
| 9 Development of B-147 Field Infrastructure Projects |
31.03.2020 |
5,271 |
0.489 |
0.708 |
| 10 Assam Renewal Project |
26.12.2019 |
23,842 |
- |
- |
| 11 Construction of one ETP and three ETPs with WIPs |
30.11.2019 |
2,357 |
- |
- |
| Total |
|
218,822 |
19.808 |
56.136 |
* Oil gain includes condensate
Project under implementation:
As on 01.04.2020, seventeen major projects were under implementation
with a total projected cost of around Rs 625,925 Million with envisaged oil and gas gain
of ~121 MMTOE.
Projects approved for implementation
During FY'20, the following three offshore projects were approved
for implementation:
1) Pipeline Replacement Project-VI: Project was approved on
30.05.2019 with an investment of Rs 7,639.20 Million. Project envisages laying of 11
pipeline segments in Mumbai High, Neelam & Heera and B&S Assets. The project is
expected to be completed by December 2020.
2) Mumbai High North Redevelopment Phase-IV: Project was
approved on 22.04.2019 with an investment of Rs 32,288 Million. The scheme envisages one
Conventional platform, new living quarter and revamp/ replacement work and drilling of 43
wells. The scheme envisages incremental gain of 4.249 MMT oil and 0.49 BCM gas by March
2035. The project is expected to be completed by March 2022.
3) Heera Re-development Phase-III Project:
The project was approved on 31.05.2019 with an investment of Rs 24,947
Million. The scheme envisages installation of two New Well platform (HM & HN), laying
nine pipeline segment of total length 48.5 Kms, Top-side modifications at Heera Complex,
Neelam Complex and seven well platforms and drilling of 26 wells. The scheme envisages
incremental production of 3.06 MMT oil and 5.82 BCM gas by March 2035. The project is
expected to be completed by May 2022.
In addition, the Company's mega offshore deep-water project in
East Coast i.e. Cluster-2 Development of KG-DWN-98/2, was in advanced stage of
completion.
First gas achieved on 05.03.2020 after completing tie-back of one
Gas Well [U-3-B] to the existing Vashishta facility at water depth of 1,300 meters.
14. Financial Highlights:
Your Company earned Profit After Tax (PAT) of Rs 134,445 Million, down
by 49.77% over FY'19 (Rs 267,646 Million - restated) and registered Revenue from
Operations of Rs 962,136 Million, down by 12.26% over FY'19 (Rs 1,096,546 Million).
Highlights – Standalone Financial Statements
| Revenue from Operations |
: Rs 962,136 Million |
| Profit After Tax (PAT) |
: Rs 134,445 Million |
| Contribution to Exchequer |
: Rs 411,019 Million |
| Return on Capital Employed |
: 22.44% |
| Debt-Equity Ratio |
: 0.07:1 |
| Earnings/ Share |
: Rs 10.69 |
| Book Value/ Share |
: Rs 154 |
| Particulars |
Rs in Million |
|
2019-20 |
2018-19* |
| Revenue from operations |
962,136 |
1,096,546 |
| Other Income |
61,050 |
72,652 |
| Total Revenue |
1,023,186 |
1,169,198 |
| Profit Before Interest |
467,083 |
579,773 |
| Depreciation & Tax (PBIDT) |
|
|
| Profit Before Tax (PBT) |
203,687 |
400,291 |
| Profit After Tax (PAT) |
134,445 |
267,646 |
| Transfer to General Reserves |
50,094 |
154,362 |
* re-stated figures.
15. Change in Share Capital:
There is no change in capital structure of the Company.
16. Dividend
Your Company has paid interim dividend of Rs5 per share of Rs5 each
(100%) in March 2020 amounting to Rs62,901.40 Million besides Rs12,929.40 Million
applicable Dividend Distribution Tax.
The Board of Directors has not recommended any final dividend with a
view to conserve cash for investments in business operations.
The Dividend Distribution policy as formulated by the Company, may be
accessed at the web link https://www.ongcindia.com/wps/wcm/ connect/en/investors/policies.
17. Management Discussion and Analysis Report
As per the terms of regulations 34(2)(e) of the SEBI Listing
Regulations, the Management Discussion and Analysis Report (MDAR) as appended, forms part
of this Report.
18. Financial Accounting
The Financial Statements of the Company for FY'20 have been
prepared in compliance with the applicable provisions of the Companies Act, 2013 including
Indian Accounting Standards (Ind AS) and Guidance Note on Accounting for
Oil and Gas Producing Activities issued by the Institute of Chartered
Accountants of India.
The Company has issued two series of Non-Convertible Debentures (NCDs)
with issue size of Rs 5,000 Million and Rs 10,000 Million on 31.07.2020 and 11.08.2020
respectively. Both series of NCDs have been listed on Bombay Stock Exchange.
Besides issue of NCDs, there have been no material changes and
commitments, which affect the financial position of the Company, which have occurred
between the end of the financial year to which the financial statements relate and the
date of this Report.
19. Loans, Guarantees or Investments
Your Company is engaged in Exploration & Production (E&P)
business which is covered under the exemption provided under Section
186(11)oftheCompaniesAct,2013.Accordingly, the details of loans given, investment made or
guarantee or security given by the Company to subsidiaries and associates is not reported.
20. Details relating to deposits covered under
Chapter V of the Act:
Your Company has not accepted any deposit during the year. Further,
there was no outstanding deposit and/or unpaid or unclaimed principal amount or interest
against any deposit either at the beginning or at the end of FY'20.
21. Credit Rating of Securities:
Details of the Credit Ratings of Debt Securities of the Company as on
31.03.2020:
| 1 Name of Debt Security |
International Bonds (Senior unsecured notes)
issued by the Company and subsidiaries which are guaranteed by the Company |
International Bonds (Senior
unsecured notes) issued by the Company and subsidiaries which are guaranteed by the
Company |
Commercial Paper up to
Rs10,000 crore outstanding at any point of time |
| 2 Credit Rating obtained |
Rating : Baa2 (Negative) [Including for Issuer
Rating] |
BBB- (Stable) [Including for
Issuer Rating] |
[ICRA]A1+, CARE A1+ |
| 3 Name of the credit rating agency |
Moody's Investors Service |
S&P Global Ratings |
ICRA Limited (ICRA), CARE
Ratings Limited (CARE) |
| 4 Date on which the credit rating was
obtained |
February 2005 and annual surveillance thereon
every year. |
November 2012 and annual
surveillance thereon every year. |
ICRA: 18.06.2018 revalidated
on 17.09.2018,11.12.2018, 14.03.2019, 18.06.2019, 22.07.2019, 20.11.2019 and 2.03.2020
CARE: 25.06.2018 and revalidated on 21.08.2018, 27.12.2018, 22.02.2019, 29.04.2019,
18.06.2019, 20.09.2019, 17.01.2020, 25.02.2020 and 21.03.2020. |
| 5 Revision in the credit rating |
Yes, foreign currency rating and Local issuer
Rating is downgraded from Baa1 to Baa2. |
Not Applicable |
Not Applicable |
| 6 Reasons provided by the rating agency for a
downward revision, if any |
Due to increasing uncertain oil price
environment, Company's depleted cash reserves and government guidelines that
constrains state-owned enterprises' ability to lower dividends, Company's baseline credit
assessment (BCA) and ratings are materially challenged at the previous rating level and
its credit profile insufficient to remain above India's Baa2 sovereign rating. The rating
outlook is negative in line with the outlook on India's sovereign rating. |
Not Applicable |
Not Applicable |
Note: Pursuant to downgrade of India's sovereign rating from Baa2
to Baa3 on 01.06.2020, Moody's Investor Services had downgraded Company's local
and foreign currency issuer and issue rating from Baa2 to Baa3 on 02.06.2020.
22. Investor Education and Protection Fund (IEPF)
Details of transfer of unclaimed dividends and eligible shares to IEPF
have been placed in the Corporate Governance Report, which forms part of this Annual
Report.
23. Related Party Transaction
Particulars of contracts or arrangements with related parties as
referred to in Section 188(1) of the Companies Act, 2013, is provided in specified Form
AOC-2, and placed at Annexure-A.
Brief details about subsidiaries/ Associates and Joint Ventures:
Subsidiaries:
a) ONGC Videsh Limited
ONGC Videsh Ltd (OVL/ONGC Videsh), the wholly-owned subsidiary of your
Company for carrying on E&P activities outside India, has participation in 37 oil and
gas projects in 17 countries, viz. - Azerbaijan (2 projects), Bangladesh (2 Projects),
Brazil (2 projects), Colombia (7 projects), Iran (1 project), Iraq (1 project), Israel (1
project), Kazakhstan (1 project), Libya (1 project), Mozambique (1 Project), Myanmar (6
projects), Russia (3 projects), South Sudan (2 projects), Syria (2 projects), UAE (1
project), Venezuela (2 projects) and Vietnam (2 projects). In FY'20, OVL exited from
4 projects, viz., GNPOC and Sudan Pipeline Project, Sudan, PEL-0037, Namibia, and
PEP57090, New Zealand. Exploratory Blocks GUA OFF-2, RC-9 & RC-10 in Colombia, and
Satpayev in Kazakhstan are under relinquishment and OVL plans to exit exploratory block
LLA69 in Colombia during FY'21.
Out of these 37 projects, OVL is the Operator in 13 projects, Joint
Operator in 6 projects and in remaining 18 projects it is non-operator. OVL has a
combination of 14 producing,
4 discovered/ under development, 16 exploration projects and 3 pipeline
projects. OVL's share in production of oil and oil equivalent gas (O+OEG) is provided
under the heading ‘Production from Overseas Assets by OVL' in para 7 above.
Gross consolidated revenue of OVL for FY'20 was Rs 1,55,383
Million (against Rs 1,46,320 Million) and registered Rs 4,540 Million as PAT during
FY'20 as against Rs 16,823 Million during FY'19. The decrease in profit is
mainly on account of lower crude oil price realization and impairment provisions.
Significant Funding activities
5 year Notes of USD 750 Million which were due for redemption in July
2019, were duly redeemed by raising a syndicated loan facility of USD 500 Million from
international commercial banks and the balance requirements were sourced from internal
accruals. 8.54% Unsecured Non-Convertible redeemable Bonds in the nature of Debentures
issued for value aggregating Rs 3,700 Million which were listed on National Stock Exchange
were duly redeemed on 06.01.2020. Further, OVL refinanced USD 1,000 Million during March
2020 out of USD 1,775 Million falling due in November 2020.
Memorandum of Understanding (MoU)
Eastern Cluster Cooperation Agreement (ECCA) was signed on 17.09.2019
between Rosneft, Russia and Indian Consortium consisting of OVL, BPRL, IOCL and OIL to
widen the scope of cooperation between India and Russia in E&P sector.
Significant events in the area of Exploration & Operations:
1. OVL achieved the highest ever production of 14.981 MMTOE in
FY'20.
2. ACG, Azerbaijan:
The execution of Azeri Central East project, involving engineering,
fabrication and installation of processing and drilling rig platform, commenced in April
2019. The project is scheduled to deliver first oil in the year 2023 and envisages
cumulative incremental production of 300 Million Barrels (MMBBLS).
3. Sakhalin 1 , Russia
During FY'20, Sakhalin-1 Consortium decided to build 6.2 MMT/year
Russian Far East LNG plant as a part of Chayvo Phase-2 gas development. Phase 2
development envisages monetizing huge gas reserves, in excess of 6 Trillian Cubic Feet
(TCF), pending for long due to lack of suitable monetization option.
During FY'20, Sakhalin-1 project achieved highest ever yearly
average production of 258.5 Thousand Barrels of Oil Per Day (KBOPD).
4. Rovuma Area-1, Mozambique :
Area 1 Concessionaires have taken
Final Investment Decision (FID) for the initial two-train Golfinho/Atum
Project on 18.06.2019.
Area-1 has executed LNG Sale Purchase
Agreements (SPAs) for a significant volume.
Area-1 consortium obtained First Mover status with approval of the
Shared Facilities Construction Proposal from Government of Mozambique (GoM) on 20.03.2019.
This enables Area-1 to lead the construction of the onshore facilities shared by Area-1
and Area-4.
5. GPOC, South Sudan: First oil achieved from El-Nar and El-Toor
field of Block
1, 2 & 4 on 30.04.2019 and 30.05.2019 respectively.
6. SPOC, South Sudan: Block 5A Exploration and Production Sharing
Agreement (EPSA) extension has been offered by Government of South Sudan up to the year
2037 along with the extension of exploration period for 54 months i.e. till July 2024. The
resumption activities are underway in the field, while execution of addendum to EPSA is
awaited.
7. CPO-5, Colombia: The Block is currently producing from two
wells. Further 3D seismic API and drilling of exploration and appraisal wells has been
planned.
8. BM SEAL-4, Brazil :
Two wells were drilled during the year, and initial results are
encouraging. Further studies are in progress.
The first well MB-2 encountered oil and gas and during Testing (DST),
the well flowed approx. 600,000 m/d of gas and 475 m/d of condensate. The second well
MB-9, additional exploratory well over MWP, encountered oil & water in different sand
columns. Currently, all discoveries made in Moita Bonita PAD are being evaluated by
Operator for an Integrated Development Project.
9. A1 and A3 Myanmar:
Under new Exploration Program in
Block A-3, drilling of 3 exploratory wells commenced on 24.11.2019.
Drilling of first well Kissapanadi was completed on 26.12.2019, with
insignificant gas show.
Second well, Mahar-1 has been established as a new gas discovery with
an estimated gas in place (GIIP) of 1,056 billion cubic feet/BCF (2C). The well flowed gas
at 38 MMSCFD (Million standard cubic feet per day) with 12 m net pay interval.
Drilling of third exploratory well Yan Aung Myin-1 was completed
on 04.04.2020, with insignificant gas show.
10. Block 06.1, Vietnam:
Drilling of exploratory well PLDCC-1X-
ST1 has achieved success with the discovery of Permeable Low-Density
Cellular Concrete (PLDCC) field. Plan is in progress for drilling of an appraisal well in
2020.
PSC Extension for the block 06.1, in view of discovery in PLDCC, is
under process.
Direct Subsidiaries and Joint Ventures of OVL:
i. ONGC Nile Ganga B.V. (ONGBV): ONGBV, a subsidiary of OVL, is
engaged in E&P activities directly or through its subsidiaries/ JVs in Sudan, South
Sudan, Syria, Venezuela,
Brazil and Myanmar. ONGBV holds 25%
Participating Interest (PI) in Greater Nile Oil Project (GNOP), Sudan
with its share of oil production of about 0.097 MMT during FY'20. OVL has exited from
GNOP Sudan w.e.f 31.08.2019. ONGBV also holds 25%
PI in Greater Pioneer Operating Company (GPOC), South Sudan. Production
from GPOC, South Sudan resumed on 25.08.2018 after prolonged shutdown since December 2013
and produced 0.564 MMT in FY'20.
ONGBV holds 16.66% to 18.75% PI in four
Production Sharing Contracts in Al Furat Project (AFPC), Syria. Due to
force majeure conditions in Syria, there was no production in AFPC project during
FY'20. ONGBV holds
40% PI in San Cristobal Project in Venezuela through its wholly owned
subsidiary ONGC Nile Ganga (San Cristobal) BV with its share of oil & oil equivalent
gas production of about 0.175 MMTOE during FY'20. ONGBV holds
27% PI in BC-10 Project in Brazil through its wholly owned subsidiary
ONGC Campos Ltd. with its share of oil and oil equivalent gas production of about 0.577
MMTOE during
FY'20. It also holds 25% PI in Block BM-
SEAL-4 located in deep-water offshore, Brazil through its wholly owned
subsidiary ONGC
Campos Ltda. ONGBV also holds 8.347%
PI in South East Asia Gas Pipeline Co. Ltd., (SEAGP) for onshore
Pipeline project, Myanmar through its wholly owned subsidiary ONGC Caspian E&P B.V.
ii. ONGC Narmada Limited (ONL): ONL has been retained for
acquisition of future E&P projects in Nigeria.
iii. ONGC Amazon Alaknanda Limited (OAAL):
OAAL, a wholly-owned subsidiary of OVL, holds stake in E&P projects
in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture
company with Sinopec of China. During FY'20, OVL's share of oil and oil
equivalent gas production in MECL was about 0.419 MMTOE.
iv. Imperial Energy Limited (IEL): IEL, a wholly-owned subsidiary
of OVL incorporated in Cyprus, has its main activities in the Tomsk region of Western
Siberia, Russia. During FY'20, Imperial Energy's oil and oil equivalent gas
production was about 0.241 MMTOE.
v. Carabobo One AB: Carabobo One AB, a subsidiary of OVL
incorporated in Sweden, indirectly holds 11% PI in Carabobo-1 Project, Venezuela. During
FY'20, OVL's share of oil and oil equivalent gas production was about 0.094
MMTOE.
vi. ONGC BTC Limited: ONGC BTC Limited holds 2.36% interest in the
Baku-Tbilisi-Ceyhan Pipeline ("BTC") which owns and operates 1,768 km oil
pipeline running through Azerbaijan, Georgia and Turkey. The pipeline mainly carries crude
oil from the ACG fields from Azerbaijan to the Mediterranean Sea.
vii.Beas Rovuma Energy Mozambique
Limited (BREML): BREML was incorporated in British Virgin Islands
(BVI) and has been migrated to Mauritius w.e.f. 23.01.2018. OVL holds 60% shares in BREML
and the balance 40% are held by Oil India Ltd. BREML holds 10% PI in Rovuma Area 1,
Mozambique.
viii.ONGC Videsh Atlantic Inc. (OVAI): OVL has setup a Geological
and Geophysical (G&G) Centre at Houston, USA through its wholly owned subsidiary ONGC
Videsh Atlantic Inc. The Centre caters to requirement of G&G studies for potential new
acquisitions of OVL including G&G studies of its existing portfolio of projects.
ix. ONGC Videsh Rovuma Limited, Mauritius:
ONGC Videsh Rovuma Limited a wholly owned subsidiary of OVL was
incorporated in Mauritius for re-structuring the 10% PI in
Rovuma Area 1, Mozambique.
x. ONGC Videsh Rovuma Limited, India: OVL transferred its entire
10% PI in Rovuma Area-1 to its wholly owned subsidiary ONGC Videsh Rovuma Limited,
incorporated in India, on 01.01.2020.
xi. ONGC Videsh Singapore Pte. Ltd.: This company was incorporated
by OVL on 18.04.2016 in Singapore for acquisition of shares in Vankorneft, Russia, through
its subsidiary ONGC Videsh Vankorneft Pte
Limited (OVVL). OVVL holds 26% shares in
Vankorneft, Russia and its share of production during FY'20 was
4.981 MMTOE.
xii.Indus East Mediterranean Exploration
Ltd.: Indus East Mediterranean Exploration Limited, a wholly owned
subsidiary of OVL was incorporated in Israel on 02.02.2018 and engaged in E&P
activities related to Block-32, Offshore Israel.
xiii.ONGC Mittal Energy Limited (OMEL):
OVL along with Mittal Investments Sarl (MIS) promoted OMEL, a joint
venture company incorporated in Cyprus. OVL and MIS together hold 98% equity shares of
OMEL in the ratio of 49.98:48.02, remaining 2% shares are held by SBI Capital Markets Ltd.
OMEL also holds 1.20% of the issued share capital of ONGBV by way of Class-C shares issued
by ONGBV exclusively for Syrian Assets and is being financed by Class-C Preference Shares
issued by ONGBV.
xiv.SUDD Petroleum Operating Company:
SUDD Petroleum Operating Company (SPOC), a Joint Operating Company
incorporated in South Sudan to operate in Block 5A, South Sudan in which OVL, Petronas and
Nilepet of South Sudan holds 24.125%, 67.875% and 8% PI respectively.
Block 5A is located in the prolific Muglad basin and is spread over an
area of about 20,917 SKM.
xv. MozLNG1 Holding Company Ltd:
The MozLNG1 Holding Company Ltd incorporated at Abu Dhabi Global Market
(ADGM), UAE by the Area-1 Concessionaires with shareholding in proportion to the PI
holding in Area-1 Concession Contract as part of the Area 1 Project Finance Structure for
the initial two train LNG development. OVL and BREML, as Concessionaires in
Area 1 Concession Contract, each holds 10% shareholding in MozLNG1
Holding Company Ltd. The MozLNG1 Holding Company Ltd owns 100% shares of Mozambique LNG1
Company Pte Ltd incorporated at Singapore for Marketing and Shipping
activities and Moz LNG1 Financing Company incorporated ADGM for project financing
activities.
xvi. Falcon Oil & Gas B.V. (FOGBV): FOGBV was incorporated in
Netherlands on 02.02.2018. OVL's wholly owned subsidiary
ONGBV holds 40% shares in FOGBV, IOC and BPRL holds 30% shares each
though their respective Dutch subsidiaries. FOGBV holds 10% PI in Lower Zakum Concession
for a period of forty years with effect from 09.03.2018. During FY'20, OVL's
share of oil production was about 0.800 MMT. b) Hindustan Petroleum Corporation Limited
(HPCL)
Your Company holds 51.11% stake in HPCL, a Schedule ‘A',
Maharatna, and listed entity. HPCL owns and operates 2 major refineries – one at
Mumbai (7.5 Million metric tonnes per annum - MMTPA) and the other one at Visakhapatnam
(8.3 MMTPA). It also owns and operates the largest Lube Refinery in the country with a
capacity of 428 TMT (thousand metric tonne). It has second largest share of product
pipelines in India with a network of more than 3,370 Kms.
During FY'20, HPCL refineries achieved combined refining
throughput of 17.18 Million Metric Tonnes (MMT) with capacity utilization of 109%. Both
the Refineries were up-graded to produce BS VI compliant transportation fuels and BS VI
grade petrol (Motor spirit-MS) and high speed diesel (HSD) were produced and distributed
Pan India basis as per the timelines stipulated by Government of India. Mumbai Refinery
achieved highest ever LOBS (Lube Oil Base Stock) production with 478 TMT. Vizag refinery
has started the production of VLSFO (Very Low Sulphur
Fuel Oil of Sulphur less than 0.5%) to meet the regulatory requirement
of MARPOL (Marine Pollution) Protocol. Lower Refinery throughput during FY'20
(compared to FY'19 throughput of 18.44 MMT) was mainly due to planned shutdowns
required for upgradation of the refineries for BS VI fuel and revamps of secondary units
at Vishakhapatnam Refinery to cater to upcoming new primary processing units in Visakh
Refinery Modernization Project (VRMP), a brown field expansion of the refinery at
Visakhapatnam.
HPCL achieved combined Gross Refining Margin of USD1.02 per barrel
during the year as compared to USD 5.01 per barrel during FY'19. Gross refining
margins (GRMs) were lower in comparison to FY'19 mainly due to inventory losses and
reduced cracks in Diesel, Liquefied Petroleum Gas (LPG) and Fuel Oil.
During FY'20, HPCL achieved the highest ever sales volume of 39.6
MMT compared to FY'19 sales of 38.7 MMT. Domestic sales of Petrol increased by 4.7%
compared to FY'19 while LPG sales grew by 7.3 per cent.
HPCL commissioned record number of 1,194 new retail outlets and 245 new
LPG distributorships during FY'20 taking the number of total retail outlets to 16,476
and LPG distributors to 6,110 as on 31.03.2020. With its thrust on natural gas as a new
line of business, HPCL has commenced CNG sales at 476 outlets. Construction activities at
Chhara LNG gasification terminal are in progress. HPCL is also participating in cross
country natural gas pipelines in Joint venture with other companies.
Revenue from operations of HPCL for FY'20 was Rs 2,874,169 Million
(against Rs 2,969,463 Million) and registered Rs 26,373 Million as PAT during FY'20
as against Rs 60,287 Million during FY'19. Decrease in PAT was mainly because of
impact of inventory losses due to sharp fall in crude prices and exchange rate
fluctuations. For FY'20, HPCL has proposed a final dividend of Rs 9.75 per share.
Direct Subsidiaries of HPCL
i. Prize Petroleum Company Limited
Prize Petroleum Company Ltd (PPCL) is a wholly owned subsidiary of
HPCL. PPCL is the upstream arm of HPCL and is in the business of Exploration and
Production (E&P) of Hydrocarbons as well as providing services for management of
E&P blocks.
ii. HPCL Bio Fuel Limited
HPCL Biofuels Ltd (HBL) is a wholly owned subsidiary of HPCL. The
company was incorporated on 16.10.2009 as a backward integration initiative to foray into
manufacture of ethanol. HPCL Biofuels Ltd. (HBL) is a wholly owned subsidiary company of
HPCL. HBL was promoted as a backward integration initiative to enable
HPCL's foray into manufacturing of Ethanol for blending in Petrol. HBL presently has
two integrated Sugar-Ethanol-Cogeneration plants at Sugauli and Lauriya in the state of
Bihar.
iii. HPCL Rajasthan Refinery Limited
HPCL Rajasthan Refinery Ltd. (HRRL) is a joint
ventureofHPCLandGovernmentofRajasthan with 74% equity participation by HPCL and balance
26% by Government of Rajasthan.
HRRL is setting up a 9 MMTPA capacity Greenfield refinery cum
petrochemical complex in the state of Rajasthan. HPCL and the Government of Rajasthan
entered into a revised Memorandum of Understanding on 18.04.2017 for the construction of
the said Refinery with revised parameters. The revised Joint Venture Agreement was signed
on 17.08.2017.
iv. HPCL Middle East FZCO
HPCL Middle East FZCO, a 100% Subsidiary of HPCL was incorporated on
11.02.2018 as a free zone company under Dubai Airport Free Zone and Establishment Card was
issued on 22.03.2018. The company, established for trading of lubricants, greases,
petrochemicals and refined petroleum products, commenced its operations thereby supplying
HP Lubricants to 11 Countries.
c) Mangalore Refinery and Petrochemicals Limited (MRPL)
Your Company holds 71.63 % equity stake in
MRPL, a Schedule ‘A' Mini Ratna company and listed entity,
which is a single location
15 MMTPA Refinery. Further, HPCL, another subsidiary of your Company,
also holds
16.96% in MRPL.
MRPL's refinery is established with a versatile design with
complex secondary processing units and a high flexibility to process Crudes of various
API, delivering a variety of quality products. Refining throughput of MRPL during
FY'20 was lower at 14.14 MMT, against 16.43 MMT during FY'19, mainly due to
unprecedented water scarcity faced during first quarter and minor landslide during second
quarter of operation, aftermath of the intensified monsoon. This culminated in negative
GRM of USD 0.23/bbl for FY'20 (USD 4.06/bbl during FY'19).
FY'20, Financial Performance: In stressed global market
conditions, MRPL registered a standalone turnover of Rs 6,07,515 Million (Rs 7,23,151
Million in FY'19) and recorded Net Loss of Rs 27,076 Million (against Net Profit of
Rs 3,320 Million in FY'19). GRM for MRPL was negative at USD 0.23/bbl (against
positive USD 4.06/bbl during FY'19). The primary reason for reduction in GRM/
profitability were disruptions in operations due to water shortage during Q1, landslide
inside refinery during Q2 and impact of COVID in the last quarter.
Subsidiary of MRPL
ONGC Mangalore Petrochemicals Limited
(OMPL)
ONGC Mangalore Petrochemicals Limited
(OMPL), is a subsidiary of MRPL holding 51% and the balance 49% is held
by your Company.
OMPL has set-up Aromatic Complex with an annual capacity 914 Thousand
Tons Per Annum (KTPA) of Para-xylene and 283 KTPA of Benzene in Mangalore Special Economic
Zone (MSEZ) as a value-chain integration project aligning with MRPL's operations.
OMPL has introduced a new product, viz., Paraffinic Raffinate in the export market and
started sale of Heavy Aromatics in domestic market. Performance of OMPL during FY'20
was severely affected due to unprecedented fall in International prices of Para-Xylene and
Benzene owing to various factors like Capacity additions in China, Crude volatility and
US-China Trade issues etc. OMPL maintained excellent safety record of zero LTI
(Lost time Injury) consistently during past 4 years.
d) Petronet MHB Limited (PMHBL)
During FY'20 your Company along with its subsidiary HPCL
acquired additional 34.56% shares of PMHBL and post-acquisition both, your Company and
HPCL, are maintaining the equal share holding as increased at
49.99%. This acquisition resulted better cost economics, revenue
maximization and better synergetic opportunities for ONGC group.
PMHBL owns and operates a 362 kilometer (KM) multi-product pipeline to
transport of MRPL's products from Mangalore to the hinterland of Karnataka. Total
throughput of PMHBL for FY'20 was 2.93 MMT against 3.36 MMT in FY'19.
Associates and Joint Ventures:-
e) ONGC Petro additions Limited (OPaL)
OPaL is a mega petrochemical project established in Dahej SEZ and
incorporated on 15.11.2006 for utilizing in-house production of C2-C3 and Naphtha from
Hazira and Uran units of the Company. Total project cost of OPaL was Rs 308,260 Million.
Your Company,
GAIL and GSPC holds 49.36%, 49.21% and 1.43% of equity shares of OPaL
respectively.
OPaL was commissioned in 2016-17 and has been ramping up its production
in phases. OPaL has established itself in domestic/ export market with sale of prime grade
products. OPaL operated at average 88% capacity in FY'20; and aggregated more than
1.6 Million Tones of polymer and chemical sales.
OPaL has obtained Food Grade approvals for all polymer grades as per
US-FDA, EU and Indian standard. OPAL has also obtained RoHS-III approval for all these
polymer grades as per EU directive. During the year, much awaited Hazira Dahej Naphtha
Pipeline was commissioned which will reduce the feed cost to OPaL and increase the
profitability.
Total Income of OPaL during FY'20 was Rs 102,071 Million
(against Rs 97,854 Million in FY'19) and posted loss after tax of Rs 20,897 Million
(Rs 14,203 Million during FY'19).
f) ONGC Tripura Power Company Limited (OTPC)
OTPC was incorporated on 27.09.2004 as a joint venture of your
Company. Currently your Company holds (50%) along with the Government of Tripura (0.5%)
and IL&FS Energy Development Co. Ltd. (IEDCL - an IL&FS subsidiary) (12.03%);
IL&FS Finance (13.79%) and Global Infrastructure Partner 23.5%.
OTPC has a 726.6 MW gas based Combined Cycle Power Plant at Palatana,
Tripura with two generating units with equal capacity. The basic objective of the project
is to monetize idle gas assets of the Company in landlocked Tripura State and to boost
exploratory efforts in the region. Power evacuation for both the units is done through 663
KM long 400 KV double circuit transmission network by NorthEast Transmission Company
Limited (NETC), a joint venture of Power Grid Corporation, OTPC and Governments of the
North-Eastern states. Average Plant load factor (PLF) for
FY'20 was 61%; mainly due to shut down of one unit for about six
months.
Total Income of OTPC during FY'20 was Rs 12,765 Million
(against Rs 14,558 Million in FY'19) and PAT was Rs 705 Million (against Rs 2,139
Million during FY'19).
g) ONGC TERI Biotech Limited (OTBL)
OTBL is a JV formed and incorporated on 26.03.2007 by your Company
(49.98%) along with The Energy Research Institute (TERI)
(48.02%) and the balance 2% shares are held by individuals. OTBL has
developed various Biotechnical Solutions for oil and gas Industry through collaborative
researches involving the Company and TERI. These technologies include Bioremediation,
Paraffin Degrading Bacteria (PDB), Wax Deposition Prevention (WDP) and Microbial Enhanced
Oil Recovery (MeOR) which are being provided to oil and gas industries both in India and
abroad.
Total Income of OTBL during FY'20 was Rs 262 Million
(against Rs 245 Million in FY'19) and PAT was Rs 75 Million (Rs 67 Million during
FY'19).
h) Dahej SEZ Limited (DSL)
DSL, a 50:50 JV of the Company along with Gujarat Industrial
Development Corporation, was formed and incorporated on 21.09.2004 for establishing a
multi-product SEZ at Dahej. Your Company has set up C2-C3 Extraction Plant as a
value-chain integration project in this SEZ, which serve as feeder unit to ONGC
Petro-additions Limited, JV of your Company.
Revenue from Operations of DSL during FY'20 was Rs 649 Million
(compared to Rs 578 Million in FY'19) and PAT was Rs 461 Million (against Rs 330
Million during FY'19).
i) Mangalore SEZ Limited (MSEZL)
MSEZ is a Special Economic Zone promoted by the Company with an equity
stake of 26% along with KIADB (23%), IL&FS (50%), OMPL (0.96%) and KCCI (0.04%). MSEZ,
was set up and incorporated on 24.02.2006 for development of necessary infrastructure to
facilitate and locate industrial establishments including OMPL. MSEZ is operational since
April 2015.
Total Revenue of MSEZL during FY'20 was Rs 1,741 Million
(against Rs 2,068 Million in FY'19) and loss after tax of Rs 316 Million (PAT Rs 24
Million during FY'19).
j) Pawan Hans Limited (PHL)
PHL, an Associate of the Company, with 49% holdings, was formed
with the Government of India holding remaining 51% of the capital, primarily for catering
to the logistic requirements of offshore and other remote area oil fields. PHL is a Mini
Ratna-I Category PSU, having fleet of 43 helicopters. The Government of India is in the
process of identifying a strategic investor for its entire holding and hence, your Company
has also decided to exit PHL along with the Government.
k) Petronet LNG Limited (PLL)
Petronet LNG Limited (PLL), a JV of the Company, which was
incorporated on 02.04.1998 with 12.50% equity holding along with identical stakes held by
other Oil PSU co-promoters viz., IOCL, GAIL and BPCL, is a listed Company. PLL, one of the
fastest growing world-class companies in the Indian energy sector, has set up the
country's first LNG receiving and regasification terminal at Dahej, Gujarat, and
another terminal at Kochi, Kerala. While the plant at Dahej terminal has 17.5 MMTPA
capacity, the Kochi terminal has capacity of 5 MMTPA.
PLL has recorded total Revenue of Rs 355,620 Million during FY'20
as compared to Rs 383,954 Million in the previous year. Further, PAT of PLL was Rs 27,609
Million in FY'20 as compared to Rs 22,306 Million in FY'19. PLL has proposed a
final dividend of Rs 7 per share for FY'20.
l) Indradhanush Gas Grid Limited (IGGL)
Your Company has subscribed 20% equity capital in IGGL, a JV
company along with IOCL, GAIL, OIL and NRL, formed and incorporated on 10.08.2018 for the
purpose of laying 1,656 KM pipeline covering north-east states with a Capex of Rs 92,650
Million. IGGL has initiated the project related activities. MoPNG has already approved
Viability Gas Funding (VGF) of Rs 55,590 Million which is 60% of the project cost.
Total Income of IGGL during FY'20 was Rs 17 Million (against Rs 6
Million in FY'19) and the net loss during the year stood reduced at Rs 53
Million (Rs 121 Million during FY'19).
m) Rohini Heliport Limited (RHL):
Your Company has subscribed 49% equity capital in Rohini Heliport
Limited with
Government of India's stake as 51%, RHL is a mirror company of
Pawan Hans Limited incorporated on 07.01.2019 for enabling disinvestment of PHL.
n) Companies Which Have Become/ Ceased To Be Company's
Subsidiaries, Joint
Ventures And Associates Companies during FY'20
a) Companies which has become subsidiaries: NIL.
b) Companies which has ceased to be subsidiaries: NIL.
c) Companies which has become a joint venture or associate: NIL.
d) Companies which has ceased to be a joint venture or associate: NIL.
24. Start-up Initiative
‘ONGC Start-up Fund' (the Fund) was initiated with Rs 1,000
Million on the 60th foundation day of the Company (on 14.08.2016) towards fostering,
nurturing and incubating new ideas related to energy sector and to promote
entrepreneurship among young Indians. Through the Fund, your Company intends to create an
ecosystem that is conducive for growth of Start-ups having technology-enabled ideas in the
energy sector.
The Fund provides support measures such as seed capital, hand-holding,
mentoring, market linkage and follow-ups, through engagement with selected Start-Ups, in
collaboration with SINE of IIT Bombay and L-Incubator of IIM-Lucknow (Incubators).
The Fund periodically invites application for support from budding
Start-ups. Seven proposals for investments aggregating to
Rs 315 Million have been firmed, out of which
Rs 210 Million has been disbursed. There are several proposals from
many Start-ups seeking funding support which are at different stages of evaluation and
due-diligence for investment.
Solar Chulha Initiative
Your Company also supported installation of
86 solar electric Chulhas and 5 solar thermal Chulhas in Betul village
in Madhya Pradesh, as a pilot project. These Chulhas are working efficiently and the
villagers have migrated to these newly installed Chulhas for their domestic purposes.
25. Health, Safety and Environment (HSE)
Being a high risk industry, safety of employees is the top-most
priority of your Company. Hydrocarbon Exploration & Production (E&P) operations
are being carried out in varied climatic regions ranging from deserts to coastal areas,
hilly terrains to forests, shallow to deep water and also in ultra-deep water areas.
E&P activities often interact with the ecosystems and may have physicochemical and
bio-geochemical impact on the surrounding Environment. Your Company, being a responsible
Corporate makes all efforts for protection and preservation of Environment.
The Company has a robust HSE Policy including e-Waste Policy in line
with the existing rules, regulations and guidelines. Your Company has established a
dedicated Institute, viz. Institute of Petroleum Safety, Health and Environment Management
(IPSHEM) at Goa, for research and development in the field of Health, Safety and
Environment Management apart from conducting training programs.
Your Company takes all the requisite measures to minimize the impact of
E&P activities on the environment by adoption of clean technologies for gaseous
emissions, liquid effluent and solid waste generated out of its operations. Your Company
has implemented globally recognized
Quality, Health, Safety and Environment (QHSE) Management System
conforming to requirements of QHSE Certifications ISO 9001, ISO 14001 and ISO 18001
(OHSAS) and certified by reputed agencies for Occupational Health and Safety Assessment
Series at all the operational units. Corporate guidelines on online incident reporting,
investigation and compliance of audit observations have been developed and implemented for
maintaining uniformity throughout the organization in line with the best international
practices.
HSE Highlights
Internal Safety Audits and External Safety Audits
To check the conformity of activities and processes with the existing
HSE management systems as well as to prevalent rules, regulations, guidelines and
standards, regular internal audits are being conducted by multi-disciplinary teams of the
Company. During the year, Internal Safety Audits were conducted at 266 Installations. In
addition, external safety audits are conducted periodically by Oil Industry Safety
Directorate (OISD) and the Directorate General of Mines Safety (DGMS).
OISD conducts Safety Audits on regular basis. During FY'20, 55
Safety Audits/ Surprise Safety Audits and 2 Pre-Commissioning Audits were conducted by
OISD. Compliance status for the observations raised by OISD as on 31.03.2020 was 94.05 per
cent.
DGMS is a Regulatory Agency under the Ministry of Labour and
Employment, Government of India in matters pertaining to occupational safety, health and
welfare of persons employed in mines including oil-mines. It carries out periodic
inspections of onshore facilities of the Company. During FY'20, DGMS carried out
inspections at 143 Installations. Compliance status for the contraventions raised by
agency as on 31.03.2020 was 97.69%.
Concerted efforts are being made to liquidate Safety Audit
Recommendations within the stipulated timelines. Expected date of completion for
compliance of audit observations is firmed up based on the criticality and volume of work
involved. Suitable compensatory safety measures are put in place till the audit
observations are complied with.
Waste Water Management: Your Company monitors the usage of waste
water and maintains the quality of effluent discharged conforming to statutory
requirements specified for discharge of treated effluent at surface/ subsurface. The
Company has 32 number of Effluent Treatment Plants across onshore work centers to treat
approx. 92,710 m3/day of waste water produced during E&P operations. For Offshore
effluent treatment, Produced Water Conditioners have been installed at process platforms.
Sewage Treatment Plants for treatment of sewage water generated are also provided at
offshore facilities.
Solid Waste Management: For environmentally safe disposal of oily
waste, OTBL has developed specialized patented technology for bioremediation of oily
sludge/oil contaminated soil. The technology uses a consortium of Hydrocarbon degrading
bacteria which reduces the Total Petroleum Hydrocarbons levels in waste/soil to less than
1 per cent. During FY'20, 65,225 Metric Tones of oily sludge/oil contaminated waste
has been bio-remediated.
Environmental Clearances: During the year FY'20, your Company
received 10 environment clearances (ECs) from Ministry of Environment, Forest and Climate
Change (MoEFCC) for carrying out exploration, development and production activities in 77
fields in onshore and offshore areas. Approvals were also accorded for drilling of 302
exploratory and 6 development wells, setting up of a Central Processing Facility, Deen
Dayal Development project in KG Offshore and Expansion of Onshore Gas Terminal and Central
Processing Plant in KG Offshore.
Regular interactions with Forest officials of Central and State
Governments followed by their field visits to the Company's operational sites at
Jorhat and Damoh resulted in issuance of new Guidelines dated 30.09.2019 by MoEFCC
simplifying the procedures for carrying out seismic surveys and exploratory drilling in
forest areas and resulting in substantial savings of resources and time for E&P
industry
Since 2013, your Company has been accredited by Quality Council of
India (QCI) – National Accreditation Board for Education & Training (NABET) as an
EIA Consultant Organization which is a prerequisite for preparing EIA reports for accord
of ECs by MoEFCC. The Company has been reaccredited third time in a row with validity
extending up to 26.05.2021. The accreditation is beneficial in securing the ECs for
Company's projects.
Other Initiatives:
An ambitious awareness campaign implemented during FY'20 on Ten
Safety Rules has been carried out at all installations in which 10,789 personnel
participated. In addition, 52,500 personnel have participated since its launch during
FY'17.
HSE Index, introduced during FY'18, for benchmarking installations
on various parameters like detection and suppression system, environment parameters,
evacuation systems, and equipment integrity, has been implemented at all work centres.
Regular Mock drills are being conducted at installations/rigs to check
the efficacy of preparedness against defined emergency scenarios. During FY'20,
nearly 13,000 mock drills were conducted.
Mines Vocational Training - MVT is being imparted to both the Company
employees and contract personnel through 10 in house training centres. During FY'20,
4,110 personnel (1,035 Company Employees and 3,075 Contractual Personnel) were trained.
In order to enhance the safety standards as well as ensure proactive
measures, your
Company has taken a unique initiative of issuing Predictive Safety
Alerts using data analytics. Analysis of past accidents data, near misses and audit
observations for the last five years is carried out and correlated to publish predictive
safety alerts based on which Installations are advised about the potential risks and the
mitigation measures in order to minimise the risks.
Safety Alert is a brief guidance material that highlights an incident
or unsafe practice and outlines the required action to prevent their occurrence. The
information is disseminated to stakeholders for evaluation and taking appropriate action.
Such alerts are regularly uploaded on Company's internal portal ongcreports.net for
wider circulation and awareness among those involved in operations along with Safety
Advisories for generic audit observations and their compliances to help improve the safety
measures.
Your Company renewed the agreement entered with OTBL on 08.05.2019 for
further ten years for Bioremediation of Oily Wastes and other Microbial techniques for
enhanced Oil recovery at various work centre of the Company.
Your Company is a participant member of
Oil Spill Response Limited (OSRL), UK for availing Tier-III Oil Spill
Response services. During FY'20, Annual Preparedness Review was organized with OSRL
on 21.01.2020 at Mumbai which was attended by participants from Offshore Assets.
World Environment Day was celebrated on 05.06.2019 on the United
Nations
Environment Program (UNEP) Theme - Air Pollution, at all work centres
of the Company. At the registered office of the Company, a talk by Director General of the
Centre of Science and Environment and leading environmentalist, Padmashree Ms. Sunita
Narain was organized.
An e-book titled "Connecting with the
Biodiversity of ONGC" was released, based on information collected
during baseline studies for EIA of the E&P projects of operational areas of the
Company. The book is a repository of natural sights, forest, land pastures and water
bodies and also the various species of flora and fauna which include endangered and near
threatened species. This repository basically aims to create awareness/sensitization by
sharing information which would be useful for all the inhabitants of the Company's
operational areas.
Your Company showcased its efforts on Bio-diversity Conservation at the
13th Conference of Parties of the Convention on migratory species on the theme
"Migratory species connect the planet and together we welcome them home", under
the aegis of United Nations Environment Programme, hosted by India during 17.02.2020 to
22.02.2020 at Gandhinagar, Gujarat in which 129 countries participated. As an exhibitor,
your Company showcased efforts for Bio-diversity conservation and future conservation
action plan of the migratory species. "Green Hub project" sponsored by the
Company was also showcased wherein youth from across North East India were trained in
wildlife videography who are currently engaged in various assignment related to
conservation of biodiversity and documentation.
26. Carbon Management and Sustainable
Development
Clean Development Mechanism (CDM):
Climate change and global warming arising out of human activities is
the biggest concern globally. Meeting the challenges require proactive innovative solution
to sustain economic activities with minimal impact on environmental systems. So far the
Company has registered 15 CDM projects with the United Nations Framework Convention on
Climate Change (UNFCCC) under the Kyoto protocol, demonstrating its commitment towards
protection of our environment and sustainable development. During FY'20, following
three new projects are under validation process for registration as CDM projects:
5 MW solar power project at Ankleshwar,
1 MW solar power project at IPSHEM-Goa, and
Rooftop solar power projects at work centres of Gujarat, Assam and
Dehradun.
As on 31.03.2020, your Company had 2,209,417 Certified Emission
Reductions (CERs) in CDM equivalent]. account [1 CER = 1 ton CO2
Greenhouse Gas (GHG) Accounting and Mitigation:
Your Company aims to reduce GHG emissions by focusing on energy
efficiency. Greenhouse Gas Accounting of the Company is being carried out every year based
on GHG protocol and is disclosed in Sustainability Report of the Company.
Global Methane Initiative:
The Global Methane Initiative (GMI) is an action-oriented initiative
from United States Environment Protection Agency (USEPA) to reduce global fugitive methane
emissions to enhance economic growth, promote energy security, improve the environment,
and reduce greenhouse gases emission. Under this programme, during FY'20, GMI survey
was conducted at Uran Plant, Hazira Plant and 17 production installations of Assam Asset.
Since 2007, the Company could prevent approximately 20.48 MMSCM of methane gas leakages in
to the atmosphere with an environmental benefit of approximately 306,250 ton Equivalent
CO2 (TCO2e) through this programme.
Solar and wind energy initiatives:
During FY'20, the Company has implemented 7 MW of Solar Power
Plants and projects for 6.6 MW are under the final stages of implementation. The total
Installed Capacity of Solar power as on 31.03.2020 was 25 MW. The solar capacity of the
Company would increase further to 50 MW by 2020-21. Further, two wind power projects - 102
MW at Jaisalmer, Rajasthan and 51 MW at Kutch, Gujarat – are operational. The total
installed capacity of Renewable Energy of your Company as on 31.03.2020 stood at 178 MW.
Replacement of conventional lights with LED lighting:
During FY'20, 73,000 conventional lights were replaced with LED
lights across various work centers of the Company, taking the total to 2.75 Lakhs LED
Lights under implementation of LED lighting program. This initiative has helped in
reduction of carbon intensity and saving of Rs 357 Million annually.
Micro Turbines and Dynamic Gas Blending system:
As a part of sustainability initiative, this year also, the use of
Micro Turbines and Dynamic Gas Blending systems (in diesel engines of drilling rig) were
taken up in different locations of the Company.
Carbon Capture, Storage and Utilisation (CCSU)
CCSU is the only clean technology capable of decarbonising major
industrial sectors including refining and petrochemicals. As per the recommendations of
Task force constituted by Ministry of Coal, under the aegis of TIFAC (Technology,
Information, Forecasting and Assessment Council), roadmap of CCUS for India is being
prepared. Your Company, being party to the task force, proposed CO2-EOR as the top
priority area for utilization of anthropogenic CO2. Further, your Company signed an MoU
with Indian Oil Corporation Limited (IOCL) on 01.07.2019 for based EOR in Gandhar CO2
captured
Field of the Company by injecting CO2 from IOCL's Koyali refinery
into specially prepared wells. Presently feasibility study is being conducted by the
Company for assessing the requirements of surface facilities, quantity of required and
financial implications.
CO2
Electric Vehicle pilot project
Your Company promotes the use of clean fuel in its operations as well
as transportation. In March 2019, first batch of 5 electric vehicles were flagged off
under pilot project at Delhi, in collaboration with Energy Efficiency Services Limited, a
joint venture of Central Public Sector Enterprises (CPSEs) under Ministry of Power, GoI.
Video Conferencing- a step towards mitigating scope-3 emission
Taking advantage of the digital revolution like broadband and web-cam,
your Company has adopted video conferencing for interaction of top management with key
executives across the work centers. Presentations and business meetings are being held
through video conferencing which reduces the travel cost, saves executive man-hours and
mitigating scope-3 emissions from air travel. Besides that, your Company has been
utilising video conferencing and other audio-video means extensively to mitigate the
constraints due to pandemic COVID-19.
Sustainable Water Management
Different types of water management projects like rain water harvesting
projects, sewage treatment plants, and re-use of produced water were implemented in line
with existing policies of the Company. A large rainwater harvesting project at the IPSHEM,
Goa harvests the runoff water from the large institute campus in a 1000 m3 capacity ground
tank and utilizes the harvested water for its various utilities and for conducting
training programmes on fire fighting. As a way forward, Uran plant of your Company will be
setting up a 10,000 m3/day capacity Seawater Desalination Plant, scalable to 20,000 m3/day
capacity, which will eliminate the total fresh water requirement of the plant, in couple
of years from now. With this project alone, your Company's water footprint would be
reduced initially by 16% and upto 32% with the scaling up of capacity of the plant.
ONGC Group Sustainability Report:
Your Company launched its independently assured ‘Sustainability
Report' in the year 2009-10 and from then onwards the Company gradually expanded the
boundary of reporting by including its subsidiaries and JVs. The report is prepared based
on Global Reporting Initiative (GRI) Standard and independently assured through third
party assurers as per AA 1000 AS Standard. ONGC Group Sustainability report FY'19 was
released on 19.03.2020. Copy of reports may be accessed at www.ongcindia. com
27. Business Responsibility Report
Clause (f) of sub-regulation (2) of regulation 34 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, stipulates that the Annual
Report shall contain a Business Responsibility Report describing the initiatives taken by
the listed entity from an environmental, social and governance perspective in the format
specified. Accordingly, the Business Responsibility Report for FY'20 has been
appended to this Annual Report.
28. Internal Financial Control System
Your Company has put in place adequate
Internal Financial Controls by laying down policies and procedures to
ensure the efficient conduct of its business, safeguarding of its assets, prevention and
detection of frauds and errors, accuracy and completeness of the accounting records, and
timely preparation of reliable financial information commensurate with the operations of
the Company. Effectiveness of Internal Financial Controls is ensured through management
reviews, self-assessment and independent testing by the Internal Audit Team indicating
that your Company has adequate Internal Financial Controls over Financial Reporting in
compliance with the provisions of the Companies Act, 2013 and such Internal Financial
Controls are operating effectively. The Audit Committee reviews the Internal Financial
Controls to ensure its effectiveness for achieving the intended purpose. Independent
Auditors Report on the Internal Financial Controls of the Company in terms of Clause (i)
of Sub-Section 3 of Section 143 of the Companies Act, 2013 by the Statutory Auditors is
placed along with the Financial Statements.
29. Human Resource Development
Your Company's operations are in challenging terrains –
deserts, jungles, border areas, remote fields and offshore. Your Company truly values its
Human Resource, i.e., ONGCians who commit themselves towards pursuit of E&P of
hydrocarbons to ensure India's Energy security. To keep their morale high, your
Company extends welfare benefits to employees and their dependents by way of comprehensive
medical care, education, housing, social security and other facilities.
There were 30,105 employees on rolls as on 31.03.2020. These ONGCians
dedicated themselves for securing excellent performance of your Company during the year.
The workforce in-take strategy pursued by your Company caters to meet the demands of
maintaining a steady flow of talent, in a business which is characterized by high risks
and uncertainties, enormous costs, rapid technological advances, physically challenging
work environment, fluctuating product prices and growing competition. Your Company's
talent management strategy is focused on building an optimal and competent workforce to
meet business needs, and it is also centered around workforce planning and talent
acquisition, performance management, capacity building, career growth, succession planning
and leadership development.
During FY'20, 15,416 executives and 5,044 non-executives were
imparted appropriate training in relevant domains/ areas, spanning 163,156 executive and
17,966 non-executive training days.
During FY'20, 697 Graduate Trainees (GTs), in five batches, were
familiarized with various E&P activities as part of ‘Induction Training'.
For the first online onboarding training programs were organized for 442 newly joined GTs
from all work centers. Induction Program for Unionized Category Employees on their
elevation to executive cadre was introduced by ONGC Academy in association with Skill
Development Centres. Five training programmes were conducted through foreign faculty which
were attended by 118 participants. Your Company also pursued structured initiatives for
maintaining a vibrant academia – industry interface through Chairs, participation in
various academia-industry level forums, which conduct workshops, seminars, and
conferences.
Major Emergency Management trainings were conducted through in-house
faculty for the first time for Offshore Installation Managers. Four-day Emergency
Management training was introduced and second line managers of Offshore were trained as
per Emergency Response plans of the Company.
In 2019, your Company introduced two focused leadership development
programmes for junior and middle level executives - FuEL programme (Future Energy Leaders)
for E1 to E3 level executives and OYL programme (ONGC Young Leaders) for E4 and E5 level
executives. These customized programmes were in association with Centres of Excellences
(IIMs) to groom young executives as future leaders who will take ONGC to the next level.
Your Company also initiated a program for identification of
competencies and development of leadership for its Mid – Level executives through
Online Development Centres, with detailed Individual Development Plans for their
development based on the assessments.
To keep the workplace lively and the workforce engaged and vibrant,
your Company also conducted ‘Business Games' to hone the business acumen of its
executives through business quizzes, business simulations and case-study presentations.
During FY'20, a total of 260 teams and 1,029 executives participated in such games.
Similarly, ‘Fun Team Games' (FTG) were organized for E0 and
below level employees to inculcate MDT (Multi-disciplinary Team) concept and spirit of
camaraderie and belongingness to the organization, which was very well received by the
participants. 158 Teams comprising 632 employees participated in FTG organized during
FY'20.
Employee Welfare Trusts
Your Company has established following Trusts for welfare and social
security of employees:-
Employees Contributory Provident Fund (ECPF) Trust manages
Provident Fund accounts of employees of your Company.
Post-Retirement Benefit Scheme (PRBS) Trust manages the pension
fund of employees of your company. The Scheme was converted into a Defined Contribution
Scheme in accordance with DPE guidelines in November 2013.
Composite Social Security Scheme (CSSS) formulated by your Company
provides an assured ex-gratia payment in the event of unfortunate death or permanent
disability of an employee while in service. In case of separation other than Death/
Permanent total disability, employee's own contribution along with interest is
refunded.
Gratuity Fund Trust established for payment of gratuity as per the
provisions of the Gratuity Act.
Y our Company has ‘Sahyog Trust' for its Sahyog Yojana
to provide ex-gratia financial grant for sustenance, medical assistance and treatment,
rehabilitation, education, marriage of female dependent and alleviation of any hardship or
distress to secure the welfare of the workforce and their kin, who do not have adequate
means of support. The beneficiaries under this scheme include casual, contingent, daily
rated, part-time, adhoc, contract appointees, and tenure based employees, apprentices and
trainees engaged by your Company besides regular and past employees. Under the scheme, an
amount of Rs 50.10 Million was disbursed by the Trust during FY'20 to 1,170
beneficiaries.
Your Company has instituted Asha Kiran Scheme to meet the
emergency needs of the ex-employees retired prior to 01.01.2007. The scheme was launched
as per DPE guidelines with a corpus of 1.5% of profit before tax.
Implementation of Govt. Directives for Priority Section
Your Company complies with the Government directives for Priority
Section of the society. The percentage of Scheduled Castes (SC) and Scheduled Tribe (ST)
employees were 15.4 percent and 10.5 percent respectively as on 31.03.2020.
Your Company is fully committed for the welfare of SC and ST
communities. The following welfare activities are carried out by your Company for their
betterment in and around its operational areas:-
Annual Component Plan
Under Annual Component Plan for SC/ST, every year allocation of Rs 200
Million is made. Out of this, Rs 60 Million is distributed amongst all the work-centres of
the Company for taking up welfare activities for communities in and around areas of the
Company's operations. In addition, Rs 140 Million is managed centrally, and is
earmarked for special projects/ proposals/ schemes for the welfare of areas/ persons
belonging to SC/ST communities. The amount under component plan is utilised for taking up
various measures for the welfare and up-liftment of the needy people of the said
communities. This fund is especially meant for providing help and support in Education and
Training, Community Development and Medical and Health Care.
Scholarship to meritorious students
Your Company provides 1,000 scholarship for meritorious SC and ST
students for pursuing higher professional courses at different Institutes and Universities
across the country in Graduate Engineering, MBBS, PG courses of MBA and Geo-Sciences. The
major feature of the scheme is that the scholarships have been equally divided for both
Boys and Girls students. The scholarship amount is extended up to Rs 48,000/- per annum
per student subject to conditions of the scheme.
Women Empowerment
Women employees constituted 7.3 per cent of your Company's
workforce as on 31.03.2020. During the year, various programmes for women empowerment and
development, including programmes on gender sensitization were organized. Your Company
actively supported and nominated the women employees for programmes organized by reputed
agencies. All middle level women executives underwent an Online Development Centre program
for identification, assessment and development of leadership competencies. Special
engagement initiatives were undertaken, such as story-writing contest, for sharing their
unique journeys of courage and inspiration from the female perspective.
Disclosure under the Sexual Harassment
Your Company has complied with the provisions under the Sexual
Harassment of women at workplace (Prevention, Prohibition and Redressal) Act, 2013
including constitution of Internal Complaints Committees (ICC) for dealing with complaints
of sexual harassment of women at workplace. Four complaints of sexual harassment were
received during FY'20. Skill enhancement programs were conducted for members of ICC
to equip them with requisite skill for enquiring into complaints. The Company also issued
detailed guidelines for dealing with complaints of sexual harassment. A dedicated page on
Prevention of Sexual Harassment, with useful resources on creating awareness, has been
added on the internal portal of the Company.
Work-Life Balance
Your Company believes in provides an enabling environment for work-life
balance of its employees. Townships at many work centres have developed facilities like
gymnasiums, clubs, sports facilities and music rooms. Facilities for gym, sports, yoga,
library, etc. are also provided in Offshore Living Quarters. During the year, outbound
programmes with families were also organized at various work centres. In addition,
cultural programmes involving employees and their families were also conducted involving
ONGC Officers' Mahila Samiti and Resident Welfare Associations of Company's
residential colonies. Your Company has an adventure wing named ‘ONGC Himalayan
Association' which organizes adventure programmes like mountaineering, trekking,
water rafting, snow skiing, desert safari, Aero sports etc. which adds towards employee
morale, engagement, team spirit, camaraderie, stress management and spirit to explore the
unknown.
30. Industrial Relations
Your Company maintained harmonious
Industrial Relations throughout the Company. Man-days loss due to
internal industrial action was reported as ‘NIL' for FY'20.
31. Compliance under the Right to Information
Act, 2005
Your Company has a well-defined mechanism in place to deal with the RTI
applications received under the Right to Information Act 2005. Your Company has a
designated senior level officer as a ‘Nodal Officer' to oversee its
implementation. The applications received are processed by the 22 executives designated as
‘Central Public Information Officers' (CPIOs) in various work centres across the
Company, in compliance of Sections 5(1) and 5(2) of the Act. The particulars of all the
quasi-judicial authorities under the ambit of RTI Act, 2005 have been uploaded on the
Company website (www.ongcindia.com) for information of the general public. Further, in
compliance of Government directives, your Company is successfully processing the online
applications under the Act.
Your Company received 1,973 applications (including 34 transferred by
other Public Authorities) during FY'20, and 206 RTI applications were carried forward
from FY'19. Against 1,848 applications information as sought were provided, 57
applications were rejected and 44 applications were transferred to other public
authorities, in accordance with the provisions of the RTI Act, 2005. There were 422 first
appeals, which were disposed-off during the period. Additionally, 94 Second Appeals which
were listed for hearing before the Central Information Commission during FY'20 were
also processed.
32. Implementation of Official Language Policy
Your Company makes concerted efforts for promotion and implementation
of Official Language. In this regard, some of the steps taken during the year were:
Unicode Hindi software installed in all offices.
Hindi workshops conducted at regular intervals in all work centres.
Hindi technical seminars, ‘kavi-gosthies', kavi-sammelans and
Hindi plays were organized at various work centres.
Various programmes for promotion of Hindi were organised at all work
centres of the
Company during ‘Rajbhasha Fortnight' (14-28.09.2019) and
‘Vishwa Hindi Diwas' (10.01.2020).
17th Annual Official Language Review Meeting was held during
24-25.07.2019 at Guwahati.
A two days Special Hindi workshop and
‘Twarit Anuvad Prashikshan' program during 27-28.02.2020 for
official language officers posted at various work centres of the Company and Members of
Town Official Language Implementation Committee, Dehradun was organised.
Your Company bagged ‘Sarvotkrisht
Rajbhasha Puruskar' from ‘Vishwa Hindi Parishad' on
09.09.2019 at New Delhi.
Hindi Teaching Scheme of Government of India was implemented
effectively at all regional work centres of the Company.
E-Roster of Employees regarding working knowledge of Hindi has been put
in place.
Hindi e-magazines were published by all work centres.
Paperless office has been made bi-lingual for effective implementation
of Official Language policy. Besides, Unicode has been installed in SAP platform for
enabling bilingual working.
33. Sports
Your Company continued its support for development of sports in the
country by providing employment opportunities to sportspersons and also granting
scholarships to budding talents in 25 games. Your Company also sponsored various sports
associations/ federations/ sports bodies for organizing sports events as well as
developing sporting infrastructure. The support has enabled many sportspersons to achieve
excel and bring home laurels for the nation and the organization. Some of the significant
achievements of our sportspersons during the year were as follows:
Nine ONGCians participated in 21st Commonwealth Championships held at
Cuttack, in July, 2019 and won 6 Gold, 3 Silver and 1 Bronze medal.
Mr. B. Sai Praneeth (Badminton), Mr. Harmeet
Desai (Table Tennis) and Ms. Swapna Barman (Athletics - On Scholarship)
were conferred the prestigious "Arjuna Award" instituted by GoI, for FY'19.
The total number of National Awardees in the organization stood at 55:
o Padma Bhushan: 1 (Mr. Pankaj Advani);
o Padma Shri: 6 (Mr. Pankaj Advani, Mr. Koneru Humpy and Mr. Virat
Kohli and three former ONGCians - Mr. Jaspal Rana, Mr. Virender Sehwag and Mr. Gautam
Gambhir);
o Rajiv Gandhi Khel Ratna: 2 (Mr. Pankaj Advani and Mr. Virat Kohli);
o Arjuna Award: 44;
o Dhyanchand Award – 2 (Mr. Bhupender Singh and Mr. Manpreet
Singh).
Ms. M. R. Poovamma secured individual bronze medal for the country in
Asian Championships at Doha and won 2 silver medals in relay races. Ms. Poovamma is also
part of the Indian Squad which is being trained for 2021 Tokyo Olympics.
Mr. Om Prakash Singh who is currently on training for Tokyo 2021,
participated in the SAF games held at Kathmandu in December 2019. He won a silver medal in
the games.
ONGCian Mr. Sai Praneeth is the first
Indian male badminton player in 36 years to win a bronze medal at the
BWF World Championships in 2019 after Mr. Prakash Padukone in 1983. Sai Praneeth was
honoured with the Arjuna Award in 2019. He also won Bronze medal at the World
Championships in Basel and Japan Open, 2019.
ONGCian Mr. Pankaj Advani, Padma Bhushan,
Padma Shri, Rajiv Gandhi Khel Ratna, Arjuna Awardee, won GOLD Medal in
World Billiards Championship (150-up format), in Myanmar, Sept 2019, in Asian Snooker
Tour, Bangalore, April 2019, IBSF World Team Snooker Championship, Myanmar, Sept 2019 and
in ACBS Asian Snooker Championship, Qatar, June 2019.
He won Silver medal in ACBS Asian Team Snooker, Doha, June 2019, World
Cup Snooker Team Championship, Qatar, July 2019 and brought Bronze medal for the country
in IBSF World 6 Red Snooker Championship, Myanmar, Sept 2019 and in ACBS Asian Billiards
Championship, Chandigarh, May 2019
Arjuna Awardee Mr. Shiva Thapa won Gold
Medal and was declared as Best Boxer in 2nd India Open International
Boxing Tournament at Guwahati in May 2019. Earlier in Asian Boxing Championship at
Bangkok, Thailand in April 2019, he won Bronze Medal for India and Gold Medal in
President's Cup International Boxing Tournament at Astana (Kazakhstan) in June 2019.
Gold Medal in Olympic Test event at Tokyo in Oct 2019. Bronze Medal in 71st Boxing
International Tournament Stranja Cup, at Stranja (Sofia) in Jan 2020.
Padmashri and Arjuna Awardee, Ms. Koneru
Humpy won the FIDE Women Grand Prix Tournament at Russia in Sept 2019
and finished 2nd in the FIDE Women Grand Prix Tournament, Monaco and established clear
lead in the FIDE Women GP Series 2019-20 and won the World Women Rapid Chess Championship
2019, Russia in Dec 2019. She won the Cairns Cup Women International Tournament, St.
Louis, USA in Feb 2020.
ONGCian Mr. Virat Kohli has been ranked as one of the world's most
famous athletes by ESPN and one of the most valuable athlete brands by Forbes. In April
2019, he was named the captain of India's squad for the 2019 Cricket World Cup.
In Nov 2019, he scored his 70th century (27 Test and 43 ODI) in
international cricket which makes him the second most successful centurion in ODI cricket
after Sachin Tendulkar. Virat Kohli has been given honours as Captain of ICC ODI Team of
the Year: 2019, ICC Test Team of the Year: 2019, ICC Spirit of Cricket: 2019.
Your Company organised the 3rd edition of the Para Games on 03.12.2019
on International Disability Day in which 210 PWDs from different work-centres of the
Company including more than 20 players from 6 Oil PSUs participated. ONGC is the only
public sector enterprise to organise Para Games to promote sporting talent of persons with
disabilities.
34. Corporate Social Responsibility (CSR)
Your Company meticulously take care of its social responsibility and in
this pursuit has spent Rs 6,069.67 Million during the FY'20, which is higher than
spending obligations of the Company for the year. Major highlights of CSR activities for
the FY'20, is as under:
60% of CSR expenditure towards School
Education, Nutrition and Healthcare as notified by DPE for CSR of
CPSE's in 2019-20;
33% of CSR Budget executed towards
Swachhta Projects as directed by MoPNG;
CSR expenditure aligned towards achieving the objectives of UN
Sustainable Development Goals, covering 12 out of 17 sustainable development goals;
20 Aspirational Districts adopted in 11 states where 599 projects have
been implemented amounting to Rs 61.51 Million benefitting 4 lakhs rural population;
4.30 Lakh patients benefitted through healthcare initiatives; and
4.98 Lakh students benefitted through educational initiatives.
A report on CSR and details of enclosed with this report at Annexure-B.
Efforts of the Company has been recognized at various forums including
the prestigious International recognition of S&P Platts Global Energy Awards, 2019
– the only Indian company to receive this award for CSR. Other host of awards are
placed at Annexure-C of this Report.
35. Awards and Accolades
Consistent with the trend in preceding years, your Company, its various
operating units and its senior management have been recipients of various awards and
recognitions. Detail of such accolades is placed at Annexure-C.
36. Regulatory or Courts order
During FY'20, there was no order or direction of any court or
tribunal or regulatory authority which either affecting Company's status as a going
concern or which significantly affecting Company's business operations.
37. Directors' Responsibility Statement
Pursuant to the requirement under Section 134 of the Companies Act,
2013, with respect to Directors' Responsibility Statement, it is hereby confirmed
that:
a) In the preparation of the annual accounts, the applicable accounting
standards were followed and there was no material departures from the same;
b) The Directors had selected such accounting policies and applied them
consistently and made judgments and estimates that were reasonable and prudent, so as to
give a true and fair view of the state of affairs of the Company as at 31.03.2020 and of
the profit of the Company for the year ended on that date;
c) The Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the is provisions of the
Companies Act, 2013, for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
d) The Directors had prepared the annual accounts of the Company on a
‘going concern' basis;
e) The Directors had laid down internal financial controls which were
being followed by the Company and that such internal financial controls were adequate and
were operating effectively; and
f) The Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are adequate and operating
effectively.
38. Corporate Governance
A detailed report on Corporate Governance as stipulated under
Regulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 is appended and forms part of the Annual Report.
39. Statutory Disclosures
YourDirectorshavemadenecessarydisclosures, as required under various
enactments including the Companies Act, 2013 and the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
40. Annual Return
Pursuant to Section 134(3)(a) read with Section
92(1) of the Act, Annual Return of the Company is placed at
https://www.ongcindia.com/wps/ wcm/connect/en/investors/annual-return/
41. Particulars of Employees
Your Company being a Government Company, the provisions of Section
197(12) of the Companies Act, 2013 and relevant Rules issued thereunder are not
applicable.
The terms and conditions of the appointment of Functional Directors are
subject to the applicable guidelines issued by the Department of Public Enterprises (DPE),
Government of India. The salary and terms and conditions of the appointment of Company
Secretary, a Key Managerial Person of the Company, and other employees are also in line
with the parameters prescribed by the DPE.
42. Energy Conservation
The information required under section 134(3) (m) of the Companies Act,
2013, read with the Companies (Accounts) Rules, 2014, is annexed as Annexure-D.
43. Audit Committee
In compliance with Section 177(8) of the Companies Act, 2013, the
details regarding Audit Committee is provided under Corporate Governance Report which
forms part of this Annual Report.
There was no instance during FY'20, where the Board had not
accepted any recommendation of the Audit Committee.
44. Vigil Mechanism:
Details regarding Vigil Mechanism is provided under Corporate
Governance report which forms part of this Annual Report.
45. Risk Management Policy and Implementation:
The Company has a Board approved Risk Management Policy. Risk framework
and Risk portfolio are periodically monitored by the Risk Management Committee, Audit
Committee and the Board.
46. Auditors
The Statutory Auditors of your Company are appointed by the Comptroller
and Auditor General of India (CAG). There were 6 chartered accountants firms namely M/s.
MKPS & Associates, M/s. G.M. Kapadia & Co., M/s. R.
Gopal & Associates, M/s. Kalani & Co., M/s. SARC &
Associates and M/s. R.G.N. Price & Co. who were appointed as Joint Statutory Auditors
of the Company for FY'20.
The Statutory Auditors have been paid a total remuneration of Rs 46.97
Million towards audit fees, certification and other services. The above fees are inclusive
of applicable service tax/ GST but exclusive of re-imbursement of travelling and out of
pocket expenses.
47. Auditors' Report on the Accounts
Statutory Auditors Reports and the comments of CAG on standalone and
consolidated accounts of the Company are placed along with respective financial statements
for FY'20.
There is no qualification in the Statutory Auditors Reports on the
Financial Statements of the Company for FY'20.
The Comments of Comptroller & Auditor General of India (C&AG)
and the reply of the Management thereto form part of this Report, is annexed as Annexure-E.
During FY'20, there has not been any fraud reported by the
Auditors of the Company.
48. Cost Audit
There were 6 cost accountants firms, namely M/s. M. Krishnaswamy &
Associates, M/s. Musib & Co., M/s. Chandra Wadhwa & Co., M/s. Bandopadhyaya
Bhaumik & Co., M/s. N. D. Birla & Co., M/s. Joshi Apte & Associates, appointed
by the Board as Joint Cost Auditors of the Company for FY'20. Necessary cost audit
report shall be prepared by the said auditors and filed with the Central Government as per
requirements under the Companies Act, 2013.
49. Secretarial Audit
Your Company had engaged M/s. Ashu Gupta & Co., Company Secretaries
in whole-time practice, as Secretarial Auditors for conducting Secretarial Audit for
FY'20. Their report is enclosed as Annexure-F, which shall form part of this
Report.
Reply of management to the qualifications made in the Secretarial Audit
Reports are as under:-
1. Board Composition & Evaluation:
The Company, being a CPSE, composition of its Board of Directors is the
prerogative of the President of India as provided under the Articles of Association of the
Company. The Ministry of Corporate Affairs (MCA) vide notifications dated 05.06.2015 and
05.07.2017 exempted government companies from the provisions relating to appointment,
performance evaluation and remuneration of directors. Further, it is learnt that
Department of Public Enterprises (DPE) has recommended the proposal to SEBI for similar
exemption to government companies under the provisions of Listing Regulations in view of
the distinct nature of the administration of CPSEs.
2. Related Party Transaction (RPT):
In terms of RPT Policy, all the contracts/ arrangements/ transactions
entered by the Company during FY'20 with related parties were in the ordinary course
of business and on an arm's length basis. Transactions with related parties have been
disclosed under Annexure-A to this report. SEBI Regulations provide for prior
approval of related party transactions excepting the transactions with government
companies and wholly-owned subsidiaries.
The qualification is with respect to the requirement for prior omnibus
approval under Regulation 23 of the Listing Regulations, since such approval was accorded
by the Audit Committee at the meeting held on 26.07.2019. In this regard, necessary system
is put in place to avoid this technical non-compliance in future.
50. Directors
Your Company being a Government Company, policy on directors'
appointment and remuneration is not applicable and also evaluation of their performance is
exempted vide notification dated 05.06.2015 issued by the Ministry of Corporate Affairs.
Appointments/Cessation etc.
Since the 26th Annual General Meeting held on 30.08.2019, change in
composition of Board is as under-
i. S/Shri Ajai Malhotra, Shirish B Kedare and
K M Padmanabhan, Independent Directors, ceased to be the directors of
the Company w.e.f. 20.11.2019.
ii. S/Shri Sumit Bose, Deepak Sethi and Vivek Mallya Independent
Directors, ceased to be the directors of the Company w.e.f. 31.01.2020.
iii. Shri Santrupt B Misra, Independent Director, ceased to be the
director of the Company w.e.f. 06.02.2019.
iv. Shri Rajesh Madanlal Aggarwal, has been nominated by MoPNG as
Government Nominee Director w.e.f. 24.03.2020, in place of Shri Rajiv Bansal.
v. Shri Om Prakash Singh has been appointed as the Director (Technology
& Field Services) of the Company w.e.f 01.04.2020, in place of Shri Navin Chandra
Pandey, who superannuated on 31.03.2020.
vi. Shri Anurag Sharma has been appointed as the Director (Onshore) of
the Company w.e.f 01.06.2020, in place of Shri Sanjay Kumar Moitra, who superannuated on
31.05.2020.
The Board places on record its appreciation for commendable
contribution of S/Shri Ajai Malhotra, Shirish B Kedare, K M Padmanabhan, Sumit Bose,
Deepak Sethi, Vivek Mallya, Santrupt B Misra, Rajiv Bansal, Navin Chandra
Pandey and Sanjay Kumar Moitra during their tenure on the Board of your
Company.
As on 31.03.2020, there were 11 Directors (including two women
Directors) on the Board, comprising of 7 Executive Directors (including the Chairman and
Managing Director) and
4 Non-Executive Directors - 2 Government Nominee Directors and 2
Independent Directors. There was vacancy for 7 Independent Directors to meet the
requirement under the provisions of Companies Act, 2013 as well as Listing Regulations,
2015.
51. Acknowledgement
Your Directors are highly grateful for all the help, guidance and
support received from the Ministry of Petroleum and Natural Gas, Ministry of Finance, DPE,
MCA, MEA, and other agencies in Central and State Governments. Your Directors acknowledge
the constructive suggestions received from Auditors and Comptroller and
Auditor General of India and are grateful for their continued support
and cooperation.
Your Directors thank all share-owners, business partners and all
members of the ONGC Family for their faith, trust and confidence reposed in the Board.
Your Directors wish to place on record their sincere appreciation for
the unstinting efforts and dedicated contributions put in by the ONGCians at all levels,
in spite of the challenging and unprecedented pandemic situation, to ensure that the
Company continues to sustain, grow and excel.
|
On behalf of the Board of Directors |
|
Sd/- |
| New Delhi |
Shashi Shanker |
| 01.09.2020 |
Chairman and Managing Director |