Oil & Natural Gas Corpn Ltd
Directors Reports
Dear Shareholders,
On behalf of the Board of Directors of your Company, it is my pleasure to present the
30th Annual Report of Oil And Natural Gas Corporation Limited (ONGC/ the
Company) and its Audited Financial Statements for the year ended 31 March 2023 (FYRs.3),
together with the Auditors' Report and Comments on the Financial Statements by the
Comptroller and Auditor General (CAG) of India.
After three tumultuous years, the pandemic's and geopolitical disruptions' extensive
effects are finally showing tapering signs coupled with slow recovery in the world
economy. Strong economic growth has been apparent and inflation appears to have decreased
in a number of nations, largely as a result of the implementation of strict monetary
policies. On the other hand, the evolving energy challenges are complex and include not
only natural gas but also oil, coal, electricity, food security, and climate change. It
appears that constant unpredictability and potential volatility continue to characterize
the oil and gas industry.
Your Company has been working to improve the value proposition for all stakeholders
while maintaining the pace of capital spending and project execution, sustaining
production, and cost-optimizing operations. The country's expanding energy needs can be
met while also generating value for all our stakeholders if we consolidate from here and
continue to grow sustainably.
Your Company, along with its group companies, has registered yet another year of robust
performance and made substantial progress on most of the priority areas.
Your Company's standalone production during FYRs.3 was 40.212 Million Metric Tonnes of
oil and oil equivalent gas (MMTOE) (against FYRs.2 production of 40.453 MMTOE).
Highlights of production during FYRs.3 are as under:
• Crude oil production, including share of JV production, was 21.485 Million
Metric Tonnes (MMT) during FYRs.3 against 21.707 MMT during FYRs.2.
• Natural gas production, including share of JV production, was at 21.351 Billion
Cubic Metres (BCM) during FYRs.3 against 21.680 BCM during FYRs.2.
• Value Added Products (VAPs) production during FYRs.3 was 2.598 MMT against 3.089
MMT during FYRs.2.
Backed by an intensive and continuous exploration programme, your Company declared
eight oil and gas discoveries (five on-land and three offshore) during FYRs.3.
During FYRs.3, accreted 40.62 MMTOE of 2P reserves from ONGC operated areas in India.
Reserve Replacement Ratio (RRR) from domestic fields was 1.01 with respect to 2P reserves.
Your Company has maintained Reserve Replacement Ratio (2P) of more than 1 for the 17th
consecutive year.
Your Company has 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 Limited (PHL), Petronet LNG Limited (PLL) and Rohini Heliport
Limited (RHL).
1. Major Highlights of FYRs.3
i. Revenue from operations in FYRs.3 stood at Rs.,555,173 Million against
Rs.,103,454 Million in FYRs.2.
ii. Net profit in FYRs.3 was Rs.88,289 Million against Rs.03,057 Million during
FYRs.2 mainly due to higher realisation on Crude Oil, Natural Gas and VAPs which was
partly offset by exceptional item amounting to Rs.2,351 Million during FYRs.3.
iii. Your Company has notified 8 new hydrocarbon discoveries (3 New Prospects &
5 New Pool discoveries) in its operated acreages including one discovery in OALP block, 1
in NELP block and 6 discoveries in nomination blocks.
iv. Three hydrocarbon discoveries (Mandapeta-60, Kesanapalli West Deep-7 &
Hatipoti-1), notified during the FYRs.3 with cumulative 2P reserves (EUR) of 0.244 MMTOE
were monetized during the year itself.
v. Your Company has notified first prospect discovery "Amrit"
(MBS171HAA-1) in OALP Block MB- OSHP-2017/1 awarded under OALP-I bid round in Mumbai
Offshore.
vi. One exploratory well has been drilled during FYRs.3
for exploration of new Mesozoic Play in Cambay Basin.
vii. During the year, with an objective to consolidate and realize reserves from
unconventional reservoirs, completed the drilling of 4 High Pressure High Temperature
(HP-HT) wells spreading over KG Basin (02 wells) and Mumbai Offshore (02 wells) and 3
wells with Basement Play as an objective - One each in Cambay Basin, Assam Shelf and
Mumbai Offshore (SW).
viii. During the year, 85 exploratory wells were drilled, out of which, 54 wells
were concluded and from concluded wells, 30 wells were proved to be hydrocarbon bearing.
Besides 23 wells of previous years were concluded out of which 16 wells proved to be
hydrocarbon bearing.
ix. Success ratio in exploratory drilling achieved considering total wells
tested/concluded including those of previous year's wells was 1:1.67 (59.74%) - (Total 77
wells concluded out of which 46 wells were proved to be hydrocarbon bearing).
x. A total of 809.58 LKM of 2D and 13696.49 SKM of 3D seismic was acquired during
FYRs.3. Out of this quantum, a total of 658.83 LKM 2D and 10,959.85 SKM of 3D seismic data
was acquired in Open Acreage Licensing Policy (OALP) blocks.
xi. An airborne DHI technique (Airborne Hydrocarbon Sensing System
"AHSS") based on measurement of micro-seepages concentration to de-risk existing
prospects and prioritize exploration areas, has been inducted for the first time in India
in A&AA Basin. The survey started on 20 January 2023 and completed on 6 February 2023
in Baramura & Barjala Areas of Tripura covering an area of about 1,488 SKM.
xii. Six contract areas awarded to ONGC under DSF- III. Three of these are located
in western offshore (2 in N&H, 1 in MH), while three are in Eastern Offshore.
xiii. Your Company incurred Rs.,698.46 Million on Research & Development
activities and another Rs.,108.65 Million on various innovative initiatives during FYRs.3.
These initiatives resulted in improved operational efficiencies and cost optimization for
your Company.
xiv. During FYRs.3, 14 Patents and 01 Copyright were granted to your Company by the
Intellectual Property India, Government of India.
xv. Great Place to Work: ONGC was recognized as one of the best employers in India
among other nation-builders by the Great Place to Work (GPTW) on 14 June 2022. The Energy
Maharatna also featured on GPTW's ‘Wall of Fame' for its commitment to maintaining
the energy security of the nation.
xvi. Best Employer Award: ONGC was conferred with the prestigious ‘Best
Employer Award' at the North India Best Employer & HR Leadership Excellence Awards
organized by World HRD Congress on 22 December 2022.
2. Global Recognitions
Your Company has been recognized at various national and international forums, list of
Awards and Accolades is annexed as Annexure - A.
3. Details of discoveries
During the year, your Company has notified eight new discoveries in acreages operated
by it.
Details of exploratory efforts made by your Company were as under:
| Sr. No |
Basin/Block |
Discovery well |
Acreage |
Discovery Type |
Hydrocarbon Type |
| 1 |
KG Onland |
Mandapetta-60 (MSDL) |
Mandapeta PML |
Pool |
Gas |
| 2 |
KG Onland |
Malleswaram-22 (MSAD) |
Malleswaram PML |
Pool |
Gas |
| 3 |
KG Onland |
Karugorumilli-1 (KML- AA) |
Godavari Onland PML (7 Year) |
Pool |
Gas |
| 4 |
Bengal Onland |
Kankpul-1 (WBON5-4-NA-E) |
NELP: WB-ONN-2005/4 |
Prospect |
Gas |
| 5 |
KG Offshore |
Kesanapalli West Deep-7 (KWD-AC) |
Vainateyam PML |
Pool |
Oil & Gas |
| 6 |
KG Offshore |
GS-15-22 (GS-15-AU) |
Vainateyam PML |
Pool |
Gas |
| 7 |
Assam Shelf |
Hatipoti-1 (NGAE) |
Mekeypore-Santak- Nazira PML |
Prospect |
Oil & Gas |
| 8 |
Mumbai Offshore (SW) |
MBS171HAA-1 (MBS171HAA-A)
"Amrit" |
OALP: MB-OSHP-2017/1 |
Prospect |
Gas |
Out of eight new discoveries made during the financial year, three discoveries viz.
Mandapetta-60, Kesanapalli West Deep-7 and Hatipoti-1 were monetized. Gain from
discoveries monetized during FYRs.3 was 0.03 MMTOE.
4. Reserve Accretion and Reserve Position
During FYRs.3, accreted 40.62 MMTOE of 2P reserves from ONGC operated areas in India
Reserve Replacement Ratio (RRR) from domestic fields was 1.01 with respect to 2P reserves.
The position of 2P Reserve established as on 01 April 2023 by ONGC in its operated areas
and in non-operated (JV share) was as follows:
| Position of Reserves as on 01 April 2023 (MMTOE) |
| As per PRMS1# |
Category |
Company Operated |
JV Operated |
Total |
| Reserves |
2P |
716.09 |
13.74 |
729.83 |
1
#PRMS: Petroleum Resource Management System. ONGC adopted PRMS w.e.f. 1 April
2019.
5. Award of Blocks/New Acreages taken for Exploration
During the year, Revenue Sharing Contracts (RSC) for 21 OALP Bocks (18 OALP-VI & 3
OALP-VII) covering total of area 43,493.94 Sq.km. were executed on 27 April 2022 and 28
June 2022 respectively.
Currently, all the awarded OALP blocks are in exploratory phase. As on 01April 2023, a
total 3706.49 LKM of 2D seismic data and 19929.26 SKM of 3D seismic data has been acquired
and two exploratory wells drilled in OALP Blocks.
Additionally, Revenue Sharing Contracts (RSC) for 6 DSF Contract Areas, measuring
2,656.14 Sq.km. and 2 CBM blocks measuring 1,506.89 Sq.km. area under Special CBM Bid
Round-2021 (SCBM 2021) were executed. As a result of the above total New Acreages taken
for exploration during the year was 47,657 SKM.
6. EOR Proposals
Your Company has been consistently expanding its Enhanced Oil Recovery (EOR) portfolio.
Under the Enhanced Recovery (ER) policy, fields of ONGC located in onshore and offshore
areas were considered for screening. 33 ER Pilots/Preliminary Screening reports submitted
to DGH till date for Oil Fields. 17 ER Pilots already approved (Phase-I), 3 are not
approved and 11 Under Approval (Phase-II). 2 ER Pilots notified to DGH (Gandhar GS-9
Miscible CO2 injection, Gandhar GS-11 Miscible CO2 injection) are
under feasibility study. During the year ONGC's offshore asset MH executed 1 EOR pilot low
salinity water injection and Onshore assets Ahmedabad executed Sanand ASP pilot and
Mehsana executed Nandasan Polymer, Bechraji commercial polymer & North Kadi surfactant
pilot EOR.
7. Major Projects Completed
During the FYRs.3 following 5 major projects with an investment value of around
Rs.1,182 Million were completed:
| Sl. No |
Project Name |
Completion Date |
Actual Cost (Rs. Million) |
| 1 |
Redevelopment of Nandasan Field- Mehsana Asset |
22.11.2022 |
4,277 |
| 2 |
Gas compressor Project at Ankleshwar Asset (GCP-ANK) |
31.03.2023 |
1,194 |
| 3 |
Mumbai High South Redevelopment Phase-IV (MHSRD-IV) |
08.05.2022 |
36,396 |
| 4 |
Cluster-8 Development Project |
31.12.2022 |
23,590 |
| 5 |
WO-16 Cluster Development Project(MOPU) |
23.12.2022 |
15,725 |
8. CAPEX
During the year, total capital expenditure of your company including its subsidiaries
was Rs.76,408 Million (comprising ONGC - Rs.02,084 Million, HPCL - Rs.40,840 Million, OVL
- Rs.7,232 Million and MRPL - Rs.,252 Million).
9. Drilling of Wells
Your Company drilled 461 wells during FYRs.3 against 434 wells drilled during FYRs.2.
85 of these wells were exploratory wells, while the balance 376 wells were development
wells including side-track wells. Land Acquisition (LAQ) issues in Coal Bed Methane,
Bokaro (CBM) and Karaikal impacted the drilling activities of your Company. The major
highlights of Drilling operations during the year were as under:
• The overall exploratory and development cycle speed and commercial speed stood
at 1013 M/RM and 1611
M/RM respectively. The cycle speed achieved during the year is highest ever since
inception (Previous best: 997 M/RM during the year 2017-18) whereas commercial speed stood
at 2nd best since inception (Previous best: 1,616 M/RM during the year
2017-18).
• Well #NGAE_SBS (Exp.) (TD 4,179 m) was drilled in 111 days against plan of 122
days with commercial
speed of 1,145 M/RM. Well #NGAE_SBS (Exp.) (TD 4179 m) was drilled in 111 days against
plan of 122 days with commercial speed of 1,145 M/RM. During testing the exploratory
object (BCS-1 object) yielded an average production of 125 m3/d of Oil and
29,502 SCMD Gas with less than 1% water cut. However the well was completed in object-IV
(BCS-3). The success of this well in Hatipoti field gives a new lead for exploration and
realization of YTF potential.
• Successfully tested exploratory well no. Hatta#03 in Son Valley of MP (Vindhyan
Basin) and established commercial gas presence in India's 9th Commercial
Hydrocarbon Basin. Well flowed gas @ 62,044 m3/d thru 6 mm bean at FTHP -1700
psi, CHP - 1800 psi.
• Till FYRs.3 Eastern offshore Asset (EOA) successfully completed (11) Eleven
sub-sea wells [Oil Wells (9) and
Water injection wells (2)] of KG-DWN-98/2 Field.
10. Oil, Gas & VAP Production
Details of production, sales quantity and VAPs product wise during FYRs.3 (inclusive of
JV Share) in comparison of FYRs.2 were as under:
| Description |
Unit |
Production Qty |
Sales Qty |
Value (Rs. in Million) |
| FYRs.3 |
FYRs.2 |
FYRs.3 |
FYRs.2 |
FYRs.3 |
FYRs.2 |
| Crude Oil |
(MMT) |
21.49 |
21.71 |
19.19 |
20.29 |
1,030,076 |
836,612 |
| Natural Gas |
(BCM) |
21.35 |
21.68 |
16.68 |
16.75 |
374,168 |
124,414 |
| Value Added Products (VAPs) |
| Liquefied Petroleum Gas |
000 MT |
883 |
882 |
884 |
883 |
55,543 |
46,752 |
| Naphtha |
000 MT |
932 |
932 |
921 |
964 |
49,614 |
50,640 |
| Ethane-Propane |
000 MT |
119 |
315 |
119 |
315 |
4,909 |
9,078 |
| Ethane |
000 MT |
281 |
499 |
281 |
500 |
13,311 |
10,815 |
| Propane |
000 MT |
150 |
199 |
147 |
197 |
8,713 |
10,637 |
| Butane |
000 MT |
81 |
116 |
81 |
116 |
4,668 |
6,185 |
| Superior Kerosene Oil & MTO |
000 MT |
9 |
23 |
3 |
23 |
263 |
1,086 |
| Others* |
000 MT |
143 |
123 |
80 |
62 |
6,276 |
3,404 |
| Sub Total (VAP) |
000 MT |
2,598 |
3,089 |
2,516 |
3,060 |
143,297 |
138,597 |
| Total |
|
|
|
|
|
15,47,541 |
10,99,623 |
*Others include ATF, LSHS and HSD
11. Production from Overseas Assets - ONGC Videsh Ltd.
Your Company's overseas E&P operations are carried out through its wholly owned
subsidiary, ONGC Videsh Limited (OVL), which in turn conducts its operations either
directly or through its subsidiaries. Production from the overseas assets during FYRs.3
was 10.171 MMTOE in comparison to 12.330 MMTOE during FYRs.2. Oil production during FYRs.3
was 6.349 MMT as compared to 8.099 MMT during FYRs.2 and Gas production during FYRs.3 was
3.822 BCM as compared to FYRs.2 production of 4.231 BCM. Key factors affecting overseas
production included natural decline, Russia-Ukraine conflict leading to declaration of
Force Majeure with effect from 21 April 2022 in Sakhalin-1 project, FPSO shutdown in
BC-10; expiry of Nare Association Contract in MECL Colombia with effect from 4 November
2021; heavy floods in GPOC South Sudan; and Block 06.1 Vietnam project nearing end of
field life.
12. Other Exploration Initiatives/Activities
a) Acquisition of 2D Seismic Data for appraising offshore area up to EEZ:
Your Company was entrusted as nodal agency for EEZ survey under Government-funded
program
(To appraise the unapprised offshore areas upto Exclusive Economic Zone - EEZ), a total
of 70,000 LKM of state-of-the-art 2D high fidelity broadband seismic data (API) has been
planned to be acquired in three sectors namely West Coast, East Coast and Andaman
offshore. The initial target was subsequently revised to acquiring 82,353 LKM of seismic
data. Against that revised target of 82,353 LKM, as on 1 April 2023, a total of 65,271.55
LKM of 2D seismic data has been acquired by ONGC, which was 80% of the total target.
b) Basement Exploration:
As a part of concerted exploration efforts for Basement Play, a total of 3 wells having
basement as an objective were drilled, this includes Padra-168 in Cambay Basin,
Tengahola-1 in Assam Shelf and BH- 87 in Mumbai offshore. The well Padra-168 proved
hydrocarbon bearing in Basement.
c) HP-HT Exploration:
High Pressure - High Temperature (HP-HT) and Tight reservoirs have been an exploration
and development challenge for your Company. Your Company is striving hard in the field of
HP-HT due to bore hole complications, fluid design, high-cost drilling technology
including HP-HT cementing,
well construction and other reservoir engineering issues. In ONGC operated areas, HP-HT
regime is encountered in areas like Periyakudi, Bhuvanagiri in Cauvery Onland, Kottalanka,
Nagyalanka, Bantumilli South and Malleswaram in KG Onland. Yanam in KG Shallow offshore,
G-4-6, D-33 and GS-OSN-2004/1 in Western Offshore were also classified as HP-HT
reservoirs. Additionally, high pressure regime is often encountered in certain areas of
Assam Arakan Fold Belt.
During FYRs.3, eight exploratory HP-HT wells namely Bantumilli South-5, South
Penumadam-1 & North Veeravasaram-1 in KG Onland, Baramura-37 in AAFB, Tripura, GS-71-3
& GS-21-4 in KG Offshore (SW), MBS171HAA-1 and D-33-9 in Mumbai Offshore were taken up
for drilling. Well MBS171HAA-1 in Mumbai offshore OALP block was found to be gas bearing
and notified as new prospect discovery. Well GS-21-4 also proved gas bearing.
13. Exploration and Production from Unconventional Sources
a) Coal Bed Methane (CBM):
Your Company was awarded 9 blocks in CBM bidding rounds including nomination, out of
which it has relinquished 5 blocks on the basis of data generated from exploratory efforts
and has been operating 4 blocks (Jharia, Bokaro and North Karanpura in Jharkhand and
Raniganj in West Bengal) where exploration activities have been completed. Developmental
activities are at an advanced stage in three of these blocks viz. Bokaro, Jharia and North
Karanpura.
Recently, in the Special CBM Bid Round 2021, ONGC has been awarded two CBM Blocks i.e.
BP-ONHP(CBM)-2021/2 in Rajmahal Coalfield of Jharkhand and SR-ONHP (CBM)-2021/5 in
Sohagpur Coalfield of Madhya Pradesh.
b) Gas Hydrate Exploration Program
Your Company has been an active contributor to gas hydrate exploratory research under
the National Gas Hydrate Program (NGHP) of Government of India. ONGC has played a
significant role in G&G studies for the identification of sites for NGHP-01 and NGHP-
02. After the success of the NGHP-02 expedition, ONGC has set up a dedicated R&D
institute for Gas hydrate study at Panvel.
During FYRs.3, your Company obtained 3 patents in the field of gas hydrates and
published research papers in reputed journals and conferences. Gas hydrate R&D team
carried out projects to identify gas hydrate prospects in Mahanadi and Cauvery offshore,
performed simulation studies for gas hydrate production and developed in-house machine
learning based software-HYDRATEMIND for prediction of gas hydrate zones.
Your Company has MoUs with Skolkovo Institute of Science and Technology (Skoltech),
Moscow, and IOCL for gas hydrate R&D studies.
14. Drilling Services
There has been continuous induction of new technologies in Drilling Services. Some of
these new technologies, which are now being used extensively are:
a) Casing While Drilling: In view of safety prospect in 30" conductor piling
issues and further drilling for 20" casing, implemented Casing While Drilling (CWD)
in six wells of Mumbai on pilot basis. The technology has proven to be a safer and faster
for vertical exploratory wells, achieved using casing as drill string for both phases. It
turned out to be solution for surface seepage losses and associated complications for
initial well phases.
b) Auto-Driller: Automatic bit feeding system (eWildcat TM 2.0) implemented in 5
drilling rigs (Type- II & above rigs of ONGC) for one year on pilot basis results in
enhancement of the drilling efficiency.
c) Liner While Drilling: Under the Pilot project, out of planned 4 wells, 2 wells
Trident-XII (SN#8Y), GD Chitra (HSD#4Z) have been completed using Liner While Drilling
Technology in 8 %Rs.Rs. phase. The technology has provided benefit in drilling through
unstable (shale) formation and further through depleted reservoir in same drilling phase,
facilitating simultaneous liner casing and cementation of drilled sections without any
issues. Technology has proven for minimising formation damage due to drilling fluid loss
management.
d) Mechanical Pipe Cutter (MPC) and Echo meter:
Introduction of wire-line MPC tools reduces the side track preparation time for the
wells producing through depleted reservoir. It allows to cut the completion string in
under balance condition after adjudging the liquid level in well bore. This resulted in
reducing the time for curing the losses and further damaging the reservoir.
e) Under Reamer services: It allows to mitigate the well bore complications and
enhance the hole cleaning in High Angle/ ERD wells in larger hole
sizes. Drilling through the multi-layered formation, sailing at hi angle and sustain
the well bore stability is a challenge to reach the desired subsurface target. Under
reamer services used on recently wells in 12 %" hole where sailing angle was 81 deg.
Hole was enlarged to 13" and observed excellent hole clean-up and elimination of back
reaming. This is planned to be used in 6" section wherein losses are prominent and
ECD plays an important role enlarging the hole to 7", thereby helping in cased well
bore with 5" liner and cementation.
f) RTDMA for the Rig performance evaluation:
Real time monitoring and benchmarking the drilling different activities captured by
Real Time Data Management and Analytics (RTDMA) leads to evaluate the performance of each
ONGC hired and owned rigs. It results in creating the sensitive, responsible and enhanced
working culture among the crew rig providers and service providers. It also creates the
alert on operations deviations.
g) Oriented Coring: To enhance the understanding on the orientation of
sedimentation and its fractures, recently a core was taken in the exploratory well at well
bore angle of 60 deg.
h) Drilling Fluid for depleted reservoir: In house developed drilling fluids like
Energised Micro Bubble System (EMBS) and Mixed Metal Oxide (MMO) for the highly depleted
reservoir are used in recently for the multi-layered reservoir. It reduces the Non
Productive Time (NPT) for the loss control time.
i) Under Balance Drilling is a tool for drilling through depleted reservoir with
real reservoir assessment. Implementation in the drilling of drain hole section in 7 wells
of Neelam Heera Asset under progress.
j) Introduced new technology of anchoring i.e. Midline Buoy System for floater for
deployment of anchor moored rigs in complicated subsea architecture fields.
15. Infrastructure Up-gradation:
Your Company is in the process of up-gradation of existing resources with State-of-Art
equipment to remain competitive in the global E&P business. It has already taken
actions to refurbish, upgrade and replace its Onshore/Offshore drilling rigs, Workover
rigs, Cementing units, Crisis Management equipment in phases. Major Infrastructure
Up-gradations during the year were as under:
• Twenty seven (27) drilling rigs are being replaced by new generation hi-tech
rigs in phased manner.
During FYRs.3 another four new generation hi-tech drilling were commissioned (7 rigs
commissioned till 31 March 2023) and 2 more rigs were commissioned during Apr-May 2023.
• 5 Rigs out of 20 Automated Hydraulic Workover rigs were commissioned at Mehsana,
Ahmedabad, Assam, Ankleshwar and Agartala.
• Acquisition of new 36 new Well Stimulation units in progress.
16. Information Technology
Your Company has carried out several Business
Process improvements in the field of IT in FYRs.3.
Major Process improvements were as follows:
• A state-of-the-art Network Operation Centre (NOC) has been established for 24X7
monitoring, analysis and response against any unwarranted activity on ONGC Enterprise
Network. The NOC functions have been very ably augmented with latest Network Access
Control (NAC) tools for maintaining a "Zero Trust Network Architecture (ZTNA)"
and new generation firewalls on the Network periphery to further strengthen the cyber
security posture of ONGC network & information systems.
• Enterprise Production SCADA Upgrade Project successfully completed on 30 April
2022 covering 146 Tier-1 locations, 1.7 lakh sensor tags. Production SCADA upgrade
covering all onshore & offshore installations with optimised architecture is
completed. The Production SCADA system is upgraded to provide analytical capabilities
using industry-standard OSI PISoft software.
• ONGC's SAP-ECC ERP Systems successfully upgraded to latest SAP-S/4 HANA digital
platform having faster in-memory computing for improved system performance and advanced
data analytics features.
• "Common Analytics Platform" project completed on 30 January 2023. This
system will provide a common platform for cross-domain Analytics.
• As a part of Data Center Consolidation, Disaster Recovery Data Centre (DRDC)
successfully migrated and shifted enterprise e-mail DR from Mumbai to Vadodara on 23 March
2023. Data center consolidation and migration is targeted towards physically consolidating
Corporate Infocom & ICE Data centers for achieving operational efficiencies
within ONGC's IT landscape and to actively reduce the resources that data center needs.
• Communication to Sagar Samrat, converted from a Jack-up Rig to a MOPU (Mobile
Offshore Production Unit) - ONGC's jewel crown, bolstered with the commissioning of High
Throughput Satellite (HTS) connectivity, for the first time in offshore.
17. Financial Highlights:
Your Company earned Profit After Tax (PAT) of Rs.88,289 Million, down by 3.66% over
FYRs.2 (Rs.403,057 Million) mainly due to exceptional item amounting to Rs.2,351 Million
in FYRs.3 and registered Revenue from Operations of Rs.,555,173 Million, up by 40.94% over
FYRs.2 C1,103,454 Million).
Highlights - Standalone Financial Statements
| • Revenue from Operations |
: Rs.,555,173 Million |
| • Profit After Tax |
: Rs.88,289 Million |
| • Contribution to Exchequer |
: Rs.46,402 Million |
| • Return on Capital Employed |
: 38.79% |
| • Debt-Equity Ratio |
: 0.03:1 |
| • Earnings/ Share |
: Rs.0.86 |
| • Book Value/ Share |
: Rs.05 |
| Particulars |
Rs. in Million |
| 2022-23 |
2021-22 |
| Revenue from operations |
1,555,173 |
1,103,454 |
| Other Income |
76,266 |
65,156 |
| Total Revenue |
1,631,439 |
1,168,610 |
| Profit Before Interest Depreciation & Tax (PBIDT) |
791,252 |
609,456 |
| Profit Before Exceptional items and Tax (PBT) |
596,304 |
410,400 |
| Exceptional items* -Income/ (expenses) |
(92,351) |
- |
| Profit Before Tax (PBT) |
503,953 |
410,400 |
| Profit After Tax |
388,289 |
403,057 |
| Transfer to General Reserves |
212,164 |
288,576 |
* Your Company reviewed the entire issue of disputed Service tax and GST on royalty and
decided to make a provision towards these disputed taxes as a prudent and conservative
practice in respect of the nominated fields and in JV blocks where there are no disputes
amongst the JV partners. Accordingly, during the quarter and year ended 31 March 2023, the
Company has provided Rs.2,351 Million towards disputed taxes
for the period from 1 April 2016 to 31 March 2022 together with interest thereon up to
31 March 2023 towards the ST/GST on Royalty and disclosed being an exceptional and
material item.
Further, a similar provision of Rs.8,723 Million was also made during the quarter and
year ended 31 March 2023 for disputed taxes for the financial year 2022-23.
The above adjustments have adversely impacted the profitability for FYRs.3. However,
the Company shall continue to contest such disputed matters before various forums based on
the legal opinion as per which the Service Tax/GST on Royalty in respect Crude oil and
Natural gas is not applicable.
18. Change in Share Capital:
During the year under review, there is no change in capital structure of the Company.
19. Dividend
Your Company has paid interim dividend of Rs..75 per share of Rs. each (@135%) in
November 2022 amounting to Rs.4,917 Million and Rs..00 per share of Rs. each (@80%) in
February 2023 amounting to Rs.0,321 Million. The Board of Directors has recommended final
dividend of Rs..50 per share of Rs. each (@10%) amounting to Rs.,290 Million subject to
approval of shareholders. The total dividend pay-out for FYRs.3 would be Rs.41,528 Million
with pay-out ratio of 36.45%.
The Dividend Distribution policy may be accessed at the web link: https://www.ongcindia.com/wps/wcm/
connect/en/investors/policies.
20. Financial Accounting and Secretarial Standards
The Financial Statements of the Company for FYRs.3 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.
Secretarial Standards:
The Company has complied with the applicable Secretarial Standards issued by the
Institute of Company Secretaries of India.
21. 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)
of the Companies Act, 2013. Accordingly, the details of loans given, investments made or
guarantee or security given by the Company to subsidiaries and associates were not
reported.
22. Deposits:
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
FYRs.3.
23. Credit Rating of Securities:
Details of the Credit Ratings of Debt Securities of the Company as on 31 March 2023:
Your Company has not accepted any deposit during
| Sl. No. |
Particulars |
Details |
| 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 |
International Bonds (Senior unsecured notes) issued by the Company
and subsidiaries which are guaranteed by the company |
Commercial Paper up to Rs.0,000 Crore outstanding at any point of
time |
Non- Convertible Debenture upto Rs.,000 Crore |
NonConvertible Debenture upto Rs.,500 Crore |
| 2 |
Credit Rating obtained |
Rating : Baa3 (Stable) [Including for Issuer Rating] |
BBB- (Stable) [Including for Issuer Rating] |
BBB- (Stable)* [Including for Issuer Rating] |
[ICRA]A1+, CARE A1 + |
[ICRA] AAA (Stable), IND AAA (Stable) |
[ICRA] AAA (Stable), CARE AAA (Stable) |
| 3 |
Name of the credit rating agency |
Moody's Investors Service |
S&P Global Ratings. |
Fitch Ratings |
ICRA Limited (ICRA), CARE Ratings Limited (CARE) |
ICRA Limited (ICRA), India Rating and Research Private Limited(IRRPL) |
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. |
July 2021 and annual surveillance thereon every year. |
ICRA: 18.06.2018 and periodical surveillance and
revalidation from time to time.
CARE: 25.06.2018 and periodical surveillance and revalidation from time
to time. |
ICRA: 17.07.2020 and periodical surveillance and
revalidation from time to time.
IRRPL:
23.07.2020 and periodical surveillance and revalidation from time to
time. |
ICRA: 07.09.2021 and periodical surveillance and
revalidation from time to time.
CARE:
29.07.2021 and periodical surveillance and revalidation from time to
time. |
| 5 |
Revision in the credit rating |
Not Applicable |
Not Applicable |
No change in rating however rating outlook was upgraded to Stable
from Negative on 14th June, 2022 |
Not Applicable |
Not Applicable |
Not Applicable |
| 6 |
Reasons provided by the rating agency for a downward revision, if any |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
* Fitch Ratings vide Press release issued on 14 June 2022 has revised ONGC's rating
outlook to Stable from Negative. The rating action follows the revision of India's
sovereign rating outlook to Stable from Negative on 10 June 2022.
24. 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 the Annual Report.
25. Related Party Transaction
Particulars of contracts or arrangements with related parties as referred to in Section
188 of the Companies Act, 2013 is provided in specified form AOC-2, annexed as Annexure
- B.
26. Subsidiaries:
A. ONGC Videsh Limited
ONGC Videsh Ltd, the wholly-owned subsidiary of your Company for carrying out E&P
activities outside India, has participation in 32 oil and gas projects spread accross 15
countries. ONGC Videsh portfolio comprises of 14 producing, 4 discovered/ under
development, 11 exploration and 3 pipeline projects. ONGC Videsh is Operating 16 of the 32
projects, solely or in association with partners.
Gross consolidated revenue of ONGC Videsh for FYRs.3 was Rs.16,763 Million (against
Rs.73,220 Million during FYRs.2) and the PAT attributable to owners registered was
Rs.7,003 Million during FYRs.3 as against Rs.5,892 Million during FYRs.2
Significant events in the area of Exploration & Operations:
a. CPO-5 Block:
The Block ended FYRs.3 with JV production levels of 19,000 barrels of oil per day
(bopd), making it a significant drill bit success for the company. Drilling of 6 wells was
also completed successfully during the year. Two Development wells Indico-6 & Indico-7
have been drilled during FYRs.3 and will be brought on production after approval of
surface facilities by the Colombian regulator.
b. Lower Zakum Concession:
In FYRs.3, average JV production rate was about 388,000 bopd. The project envisages
production of 450K bopd by 2025 and 520K bopd by 2028. To evacuate the gas, execution of
34" subsea New Main Gas Line (85km) project is underway and expected to be
commissioned by DecRs.024.
c. ACG Azerbaijan:
During FYRs.3, average JV, oil production rate was about 404,000 bopd and gas
production rate was about 9 MMSCMD. A total of 16 Wells viz. 11 Producers, 4 Water
Injectors & 1 Non-Associated Gas (NAG), were completed in the year. Construction of
Azeri Central East (ACE) New Platform with 48 slots, at Capital Cost of USD 3.3 Billion
was 86% complete as on MarRs.3. The platform will cater to Incremental oil production of
300 MMBBLS till end of contracts in 2049. First oil from the ACE platform is expected by
MarchRs.4.
d. GPOC/SPOC South Sudan:
Average JV, oil production rate for FYRs.3 was about 37,000 bopd. Drilling of Infill
wells commenced in Nov 2022 and results were encouraging. Out of the 4 wells drilled, 2
wells were producing 1,900 bopd and the remaining 2 wells were under completion. The
project has received 2 years extension for exploration period of blocks 1, 2 and 4
effective from 26 February 2023.
e. BM-SEAL-4 Brazil:
Development Plan (DP) and Production Individualization Agreement (AIP) have been
submitted to the Regulator (ANP) on 1 November 2022. The Operator has commenced the
bidding process for shared FPSO and development activities to meet the target of first oil
& gas in calendar year 2028.
f. Sakhalin-1 Project
The year commenced with Sakhalin-1 JV producing about 210,000 bopd in accordance with
the planned production profile. However, following the Russia- Ukraine conflict, erstwhile
Operator ENL started production curtailment and declared Force Majeure on 21 April 2022.
Production was altogether stopped in September 2022. On 7 October 2022, President of
Russian Federation (RF) issued Decree and RF Government issued Resolution dated 12 October
2022, transferring all rights & obligations of Sakhalin-1 Consortium to a newly formed
entity; Sakhalin-1 LLC. As required by the decree, ONGC Videsh submitted its notice of
consent to retain its stake in the project on 8 November 2022. The Government of Russian
Federation, approved for ONGC Videsh to retain its existing participating interest in the
project, subject to fulfilling obligations towards the transfer of accumulated abandonment
funds to Sakhalin-1 LLC's current account.
As of 31 March 2023, the project production levels
were back to normal levels of approx. 200K bopd and drilling activities have also
resumed. Furthermore, ONGC Videsh has received the accumulated Abandonment Funds in its
account at SBI, GIFT City, Gandhinagar, India on 5 April 2023 to further comply with the
said condition precedent.
g. Rovuma Area-1:
Following deterioration of security situation in Palma district since March 2021, the
Operator evacuated all personnel from the site and subsequently, on 11 May 2021, declared
Force Majeure (FM). Recently, the operator has reported alignment of understanding with
Government of Mozambique (GoM) on security matters while acknowledging significant
improvement in security situation and believes if the progress continues in the same
trajectory, restart of project activities is possible in near future. In anticipation of
the restart, the Area 1 consortium has already commenced some preparatory works at the
project site.
h. Myanmar A1 & A3
Average JV, gas production rate of the project for FYRs.3 was about 15 MMSCMD. Phase II
Development of the projects was successfully completed in Aug 2022 and production from
additional 7 wells was started, with this the Project is expected to maintain production
of contracted quantity of 500 MMSCFD till 2026 or early 2027.
i. Vietnam Block 06.1
Average JV, gas production rate for FYRs.3 was about 4 MMSCMD. Although the block is
nearing its end of life and production from the block has fallen substantially, the
Consortium with an objective to continue production from the existing fields and to
explore the clastic areas, applied for extension of the Production Sharing Contract (PSC).
The host Government has granted 16 years extension of the PSC, with effect from 19 May
2023.
B. Hindustan Petroleum Corporation Limited (HPCL)
Your Company held 54.90% equity shares in HPCL on 31 March 2023 and HPCL is a Schedule
‘A', Maharatna, and listed entity operating for 100 years with Pan India presence.
Government of India had transferred its 51.1% equity in HPCL to ONGC in 2018. HPCL owns
and operates 2 major refineries - one at Mumbai (9.5 Million metric tonnes per annum -
MMTPA) and the other one at Visakhapatnam (8.3
MMTPA). HPCL has 19.14% domestic market share in petroleum products. It also owns and
operates the largest Lube Refinery in the country with a capacity of 428 TMT (thousand
metric tonne). HPCL has a vast marketing network of Supply & Distribution
infrastructure comprising of Terminals, Installations, Tap-off Points, LPG Bottling
Plants, Aviation Service Facilities, Lube Blending plants, Lube depots and various
customer touchpoints across the country. HPCL has its Research & Development Centre
named ‘HP Green R&D Centre' in Bengaluru.
During FYRs.3, HPCL refineries at Mumbai and Visakhapatnam achieved combined refining
thruput of 19.09 MMT. HPCL achieved highest ever sales volume of 43.45 MMT compared to
previous year's sales of 39.14 MMT. During the year, HPCL crossed a key milestone of
21,000 Retail Outlets with commissioning of 1,161 Retail outlets during FYRs.3 taking the
total Retail Outlets to 21,186. Further, 40 new LPG distributorships were commissioned
during the year taking the total number of distributors to 6,283 as of 31 March 2023.
The combined Gross Refining Margin (GRM) for HPCL Refineries for FYRs.3 worked out to
USD 12.09 / bbl compared to USD 7.19 /bbl in the corresponding previous year.
HPCL had 21,186 retail outlets, 17 cross country pipelines covered length of 5,132 kms
(making HPCL second largest Petroleum product pipeline Company in India), 55 LPG plants,
6,283 LPG distributors; 43 Petroleum, Oil & Lubricants (POL) terminals & 72 POL
depot, 1387 CNG dispensing station, 54 aviation services facilities; 2037 EV charging
facilities as on FYRs.3.
During FYRs.3, HPCL recorded Loss After Tax of Rs.9,740 Million as compared to Profit
After Tax of Rs.3,826 Million for the previous year. Revenue from operations for the
FYRs.3 was Rs.,661,924 Million as compared to Rs.,738,967 Million during the previous
year.
Rs.. Mangalore Refinery and Petrochemicals Limited (MRPL)
Your Company held 71.63 % equity shares in MRPL, a Schedule ‘A' Mini Ratna company
and listed entity, which is a single location 15 MMTPA Refinery. Further, HPCL, also holds
16.95% equity shares 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 Net throughput of MRPL during FYRs.3 increased
by almost 13.8 % to 17.14 MMT against 15.05 MMT during FYRs.2.
In FYRs.3, GRM for MRPL was USD 9.88 /bbl against USD 8.60/ bbl during FYRs.2. During
the year the company has added 31 Retail Outlets making total retail outlets to 63 as on
31 March 2023.
In a remarkable turnaround, MRPL registered a standalone turnover of Rs.,247,360
Million (Rs.860,944 Million in FYRs.2) and recorded profit of Rs.6,384 Million (against
Profit of Rs.9,553 Million in FYRs.2) during FYRs.3.
D. Petronet MHB Ltd (PMHBL)
Your Company, together with its subsidiary HPCL, hold equity shares of 49.996% each in
PMHBL. With your Company's holding of 54.9% in HPCL, the extent of its holding in PMHBL
comes to 77.44% and makes PHMBL a subsidiary of ONGC. PMHBL owns and operates Mangalore -
Hassan - Bengaluru JV pipeline (362.3 Km) to transport MRPL's petroleum products to
various parts of Karnataka State.
PMHBL achieved a thruput of 3.894 MMT in FYRs.3 against 2.841 MMT in FYRs.2 and
reported total income of Rs.,683 Million in FYRs.3 (Tl,282 Million in FYRs.2) and recorded
a net profit (PAT) of Rs.47 Million in FYRs.3 C603 Million in FYRs.2).
Associates and Joint Ventures:-
E. ONGC Petro additions Limited (OPaL)
OPaL is a mega petrochemical project established in Dahej SEZ and incorporated in 2006
for utilizing inhouse production of C2-C3 and Naphtha from Hazira and Uran units of your
Company. Your Company, GAIL and GSPC held 49.36%, 49.21% and 1.43% of equity shares of
OPaL respectively on 31 March 2023.
Company has successfully completed its first major turnaround (MTA) in FYRs.3. During
FYRs.3, Revenue from operations of OPaL was Rs.45,930 Million C160,475 Million in FYRs.2)
and posted loss of Rs.1,555 Million against loss of Rs.,347 Million in FYRs.2.
F. ONGC Tripura Power Company Limited (OTPC)
OTPC was incorporated in 2004 as a joint venture of your Company. Your Company held 50%
of its shares as on 31 March 2023.
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 your Company in landlocked Tripura State
and to boost exploratory efforts in the region.
Average Plant load factor for FYRs.3 was about 77% against 64% in FYRs.2 and power
generation increased from 4,124 Million Units (MU) in FYRs.2 to 4,741 MU in FYRs.3.
Revenue from operations during FYRs.3 was Rs.6,315 Million C12,640 Million in FYRs.2)
and Profit After Tax (PAT) was Rs. 2,011 Million during FYRs.3 C1,066 Million during
FYRs.2). OTPC has declared total dividend of Rs..30 Per share in FYRs.3 including proposed
final dividend of Rs..60 per share.
G. ONGC TERI Biotech Limited (OTBL)
OTBL is a JV incorporated in 2007 by your Company (49.98%) along with The Energy
Research Institute (TERI) (48.02%) and the remaining 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. The company has paid maiden
dividend @ 10% of the paid up share capital, amounting to Rs.5 Million during the FYRs.3.
Revenue from operations of OTBL during FYRs.3 was Rs.70 Million (Rs.88 Million in
FYRs.2) and Profit After Tax (PAT) was Rs.92 Million during FYRs.3 C86 Million during
FYRs.2).
H. Dahej SEZ Limited (DSL)
DSL, a 50:50 JV of your Company along with Gujarat Industrial Development Corporation
(GIDC), was incorporated in 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 serves as feeder unit to OPaL, JV of your Company.
Revenue from Operations of DSL during FYRs.3 was Rs.57 Million (provisional) against
Rs.66 Million in FYRs.2 (audited) and PAT was Rs.81 Million during FYRs.3 (provisional)
against Rs.70 Million (audited) during FYRs.2.
I. Mangalore SEZ Limited (MSEZL)
MSEZ is a JV, under Special Economic Zone and was promoted by your Company with an
equity stake of 26%. MSEZ, was incorporated in 2006 for development of necessary
infrastructure to facilitate and locate industrial establishments. MSEZ is operational
since April 2015.
Revenue from operations of MSEZ during FYRs.3 was Rs.,036 Million (Rs.1,924 Million in
FYRs.2) and Profit After Tax of Rs.2 Million during FYRs.3 (Net loss of Rs.99 Million
during FYRs.2).
J. Pawan Hans Limited (PHL)
PHL, is an Associate of the Company, with 49% holdings, and the Government of India
holding remaining 51%. PHL was formed primarily for catering to the logistic requirements
of offshore and other remote area oil fields. PHL is a Mini Ratna-I Category PSU, having a
fleet of 43 helicopters.
K. Petronet LNG Limited (PLL)
Petronet LNG Limited (PLL), an associate of your Company, which was incorporated in
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, the largest company in
the country in supply of LNG, 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.
During FYRs.3, PLL recorded revenue from operations of Rs.98,994 Million and Profit
After Tax (PAT) of Rs.2,399 Million. PLL paid a special dividend of Rs. per share and has
proposed a final dividend of Rs..00 per share for FYRs.3.
L. Indradhanush Gas Grid Limited (IGGL)
Your Company has subscribed 20% equity capital in IGGL, a JV company promoted by your
company in association with IOCL, GAIL, OIL and NRL. IGGL was incorporated in 2018 for the
purpose of laying 1,656 KM pipeline covering north-east states with a capex of Rs.2,650
Million. MoPNG has approved Viability Gap Funding (VGF) of Rs.5,590 Million which is 60%
of the project cost. Surveying, ROU acquisition and Pipeline laying in various sections is
under progress. Physical progress of 70.01% has been achieved till 31 March 2023 with a
cumulative financial expenditure of Rs.2,186 Million.
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 in 2019 for enabling disinvestment of PHL.
N. Companies Which Have become/ ceased to be Company's Subsidiaries, Joint Ventures And
Associates Companies during FYRs.3
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
27. Make in India
To promote "Atmanirbhar Bharat", ONGC has introduced Development Order Policy
in December 2020 for goods and services after delinking it from routine tender process to
make the process easier and continuous. The policy enables vendor to offer product at any
point of time.
ONGC has been able to localize 18 products through 23 successful development orders,
another 14 products/services are in development by 16 Indian manufacturers.
28. ONGC Start-Up Initiative
‘ONGC Start-up Fund', conceptualized in line with the ‘Start-up India'
initiative, launched by the Hon'ble Prime Minister of India, was established to foster,
nurture and incubate new ideas related to energy sector. The Fund supports and promotes an
ecosystem in the Energy Sector for entrepreneurship among the younger Indians.
ONGC Start-Up Fund supported 23 start-ups with applications in energy sector. The
financial commitment to these Start-Ups was Rs.57.70 Million as on 31 March 2023.
29. Procurement through Government e-Marketplace (GeM)
In line with directives of Government of India, your Company has been making all
efforts to enhance procurement of goods and sevices through GeM portal. During FYRs.3
ONGC's total procurement through GeM was Rs.1,783.70 Million. ONGC ‘s efforts were
also recognised by Ministry of Commerce during "GeM Kreta Vikreta Samman Samaroh
2023" wherein ONGC was awarded Gold buyer award under Highest Service procurement
category for FYRs.3.
30. Facilitation for payment of invoices through TReDS Portal
In line with the initiatives of Government of India, your Company is registered on
TReDS platform with M/s RXIL, M/s MYND Solution (M1xchange) and M/s A TREDS Ltd. (Invoice
Mart), to help MSME vendors get immediate access to liquid fund based on Buyers (i.e.
ONGC's) credit rating by discounting MSMEs trade receivables through an auction mechanism
where multiple financers can participate and bid. MSME vendors can avail this benefit by
registering themselves with any of the exchanges providing e-discounting/ electronic
factoring services on TReDS platform where ONGC is also participating in such TReDS
Platform as a Buyer. Such exchanges with participation of ONGC are being notified from
time to time.
The details of invoices discounted through TReDS system during FYRs.3 were as under:
| Name of TReDS Platform |
No. of Invoices discounted through TReDS |
Value of invoices discounted (Rs. in Million) |
| MYND Solution (Mlxchange) |
77 |
401.60 |
| RXIL |
22 |
37.80 |
| A TREDS Ltd. (Invoice Mart) |
Nil |
Nil |
31. Health, Safety and Environment (HSE)
ONGC accords topmost priority to the Health, Safety and Environment (HSE) management by
carrying out its operations ensuring zero harm to the people and the environment.
Operations of ONGC, mainly exploration and production activities, are highly hazardous and
risky. HSE in ONGC's operations is guided by HSE Policy and HSE management system. In
addition there is also dedicated Environment Policy and e-waste policy.
ONGC, in order to maintain highest standards, goes beyond the Regulatory requirements
and practices proactive HSE Management System. The HSEMS is based on International
Standards, ISO 9001, ISO 45001 and ISO 14001.
HSE Initiatives:
a) Compliance to HSE management systems, as well as to prevalent rules,
regulations, guidelines and standards is checked during internal audits, being conducted
by multi-disciplinary teams of the Company. The same are also checked by external
authorities like Oil Industry Safety Directorate (OISD) and Directorate General of Mines
Safety (DGMS).
i. Multi-disciplinary Teams conducted 293 Internal Safety Audits (ISAs) in 2022-23.
The overall compliance status of ISA observations as on 31 March 2023 was 93.43 per cent.
ii. OISD, conducted audits at 110 Installations in 202223. The overall compliance
status of the observations raised by OISD as on 31 March 2023 was 87.54 per cent.
iii. DGMS, carried out inspections at 164 Installations in 2022-23. The overall
compliance status for the contraventions raised by DGMS as on 31 March 2023 was 96.87 per
cent.
b) An expert consultant was engaged by ONGC to carry out gap analysis of existing
systems and practices of ONGC and assist in improving safety culture. To further
strengthen the Safety culture of the organization Project ‘Parivartan' is being
implemented across the organization. Under Project ‘Parivartan' the following 10
Strategic HSE Goals have been finalized:-
• Achieve culture of leadership excellence with an average score of 90% for the
leadership process by 2025;
• Significantly improving management system culture by achieving average safety
rating 7 out of 10 across all installations by 2025;
• Transformation of prevailing Bureaucratic System Culture to a Learning
Organization Culture by 2027;
• Building Risk Competency based on Training Needs Analysis by 2025;
• Ensure Total Safety of the asset through a systematic implementation of Asset
Integrity Management by 2027;
• Ensure Risk based Contractor Management System is fully embedded into the
Project Management by 2023;
• Sustain and / or improve on Loss Time Injury Frequency Rate Loss Time Injury
Frequency Rate (LTIFR) by achieving result better than an average Industry Rate by 2027;
• Design, Create and Implement Safety Management System Benchmarking (Internal
& External) by 2025;
• Resorting to Green initiatives for Zero Emission Pathway in backdrop of climate
crisis and Fasttracking of Forest clearances through adopting
proactive approach; and
• Elimination and mitigation of occupation related health impacts and introduction
of new initiatives for health improvement.
These strategic goals are being implemented through Syndicates, consisting of Key
Executives and Senior HSE officials. The progress is reviewed by Higher Management at
regular basis to ensure time bound achievement of the targets.
c) During FYRs.3, 18,995 mock drills were conducted, including 18,971 ERP
(Emergency Response Plan), 16 Onsite DMP (Disaster Management Plan), 6 Offsite DMP and 2
RCP (Regional Contingency Plan) mock drills.
d) Mines Vocational Training (MVT), a mandatory training as per Mines Act, is being
imparted to both employees and contract personnel through inhouse training centres. MVT
was provided to 3,218 personnel (1,110 Company Employees and 2,108 Contract Personnel) in
2022-23.
e) The Near Miss reporting and timely closure is being emphasized through
advisories, awareness programs and competency building exercises. Monthly Near Miss
Analysis and Reports are being issued for sensitization and actions in this regard. In
order to further encourage the work centres to report the Near Miss in SAP and close them
by taking required action, best performers are being recognized.
f) Every quarter, Safety Champion and Safe Installation awards are being declared
by Assets/ Plants/ Basins and the winners are being duly recognized as motivation for
commendable safety performance by all.
g) Implemented SAP based E-PTW (Electronic Permit to Work) which maintains system
based checks & balances, eliminates possibility of bypass of procedures and creates
trail of documentation for data analysis.
h) HSE Benchmarking of all ONGC installations has been done on various HSE
parameters in SAP by designing a HSE Index.
i) The processes of Management of Change (MoC) has been streamlined and SAP based
MoC module has been developed for ensuring adherence to MoC procedures.
j) To address any unsafe act or unsafe condition, Stop Card program has been
implemented which
empowers any personnel to use Stop Card to stop a work if it is noticed that the risk
associated with any job is unattended or a person is doing work in unsafe manner. The
system enables immediate action on the risk through prompt actions.
k) Corporate Disaster Management Plan (CDMP) has been revised, incorporating
DMP-2020 of MoPNG, NDMP-2019, MoPNG guidelines on COVID-19 & cyclone Tauktae and High
Level Committee's recommendations on cyclone Tauktae.
l) Dedicated webinars and workshops are being conducted through online platforms,
covering ONGC and contract personnel, on specific HSE topics through domain experts.
m) In order to enable the workforce to readily access the HSE related information,
guidelines, standards, manuals, documents, circulars etc., on their fingertips, a
dedicated HSE website and App has been introduced. The same is accessible anytime to all
ONGC employees posted at various work centers.
n) Environmental Clearances: ONGC received 18 Environment Clearances (ECs) for
drilling of 106 exploratory wells, 115 development wells and construction of 1 production
facility.
o) Waste Management
i. Waste Water Management: ONGC monitors the waste water usage and maintains the
quality of effluent discharged conforming to statutory requirements specified for
discharge of treated effluent at surface/ subsurface. The Company has 41 number of
Effluent Treatment Plants across onshore work centres to treat approx. 1,04,000 m3/day of
waste water produced during E&P operations. For Offshore effluent treatment, Produced
Water Conditioners (PWCs) have been installed at process platforms. Sewage Treatment
Plants for treatment of sewage water generated are also provided at offshore facilities.
ii. Hazardous Waste Management: The Hazardous Waste generated in the form of oily
sludge/oil contaminated soil are treated using bio-remediation technique in which oil
eating consortium of bacteria is used to break down hazardous substances into nontoxic
substances, thereby ensuring environmentally safe disposal of waste. It is ensured that
the Total Petroleum Hydrocarbon (TPH) of the treated oily sludge is less than 0.5% (5000
ppm) in consonance with the Hazardous and Other Wastes (Management and Trans-boundary
Movement) Rules, 2016. During 2022-23, 93,151 Metric Tons of oily sludge/oil
contaminated soil has been bio-remediated.
iii. Recovery from Waste: During the process of restoration of oil spillage area,
about 6,523 m3 of Oil has been recovered from the oil contaminated soil during
2022-23 which was sent back to the production installations.
p) A project for conservation of bio-diversity which aims to plant mangroves in an
area of 10 ha and protection of the Endangered Olive Ridley Turtle in the Karaikal
District of Puducherry has been taken up. The project commenced in August 2022 with
various activities planned in 3 years duration.
q) Oil Spill Management in Offshore operations:
ONGC is having a robust oil spill management system to address oil spills ranging from
minor to significant volumes. The Indian Coast Guard (ICG) is designated as a central
coordinating authority by the Government of India for combating oil spills in Indian
waters and undertaking oil spill prevention and control. As per the National Oil Spill
Disaster Contingency Plan (NOS-DCP) promulgated by ICG, ONGC is maintaining its own Tier-I
oil spill response equipment and manpower onboard multi-support vessels in its operational
area. For Tier-II level oil spill, ONGC is relying on Indian Coast Guard and ONGC's mutual
aid partners and for Tier-III oil spill, ONGC is maintaining participant membership of Oil
Spill Response Limited (OSRL), UK, through which ONGC is having guaranteed response and
access to OSRL's worldwide resources comprising of Booms, Skimmers, Oil Spill Dispersants
stockpile, storage equipment, specialized manpower etc. ONGC has a MoU for oil spill
response co-operation with Mumbai Port Trust, Jawaharlal Nehru Port Trust and
Participating Oil Companies for maintaining Tier-I oil spill response facility &
services in Mumbai Harbour.
In addition, ONGC has also developed its own oil spill contingency plan to deal with
oil spill incidents and eventualities. ONGC conducts internal oil spill mock drills and
also participates in regional and national level mock drills organized by the Indian Navy
and Indian Coast Guard. Annual returns on preparedness for oil spill response is being
filed annually to ICG.
32. Carbon Management and Sustainable Development
Sustainable Development is the standard template in the Company and this finds
expression in our commitment to continually enhance the benchmarks of economic,
environmental and social performance.
The major endeavours towards corporate sustainability were as under:
Clean Development Mechanism (CDM):
Your Company had 15 CDM projects registered with the United Nations Framework
Convention on Climate Change (UNFCCC) under the Kyoto protocol since 2006.
ONGC is also continuing the Verification/Renewal of existing CDM projects as well as
finding opportunities for Registration of new CDM projects.
Greenhouse Gas (GHG) Accounting and Mitigation:
ONGC aims to reduce GHG emissions by focusing on improved energy efficiency. The
scope-1 and scope-2 emissions during FYRs.3 was 8.897 MMTCO2e a reduction of
about 2.66% from the previous year.
Global Methane Initiative (GMI):
The 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.
During FYRs.3 leak detection survey was carried out in Hazira and Uran plant.
Solar and Wind energy initiatives:
The total installed capacity of renewable energy as on 31 March 2023 was 189.52 MW
(Solar: 36.52 MW and Wind: 153 MW).
Replacement of conventional lights with LED lighting:
In line with the Government of India's call for promoting efficient energy use (Ujala
Scheme), ONGC entered in to a MoU with Energy Efficiency Services Limited (EESL) for
replacement of all conventional lights in ONGC in a phased manner. However, incandescent
lamps, tube lights and CFLs were immediately replaced. During FYRs.3, ONGC installed 4,344
LED lights making a total of 355,344 LED lights installed so far.
Carbon Capture, Storage and Utilisation (CCSU)
Carbon Capture, Storage and Utilization (CCSU) is a critical CO2 emission
abatement technology that can prevent large quantities of CO2 from being
released into the atmosphere. Considering its benefits, ONGC entered into a MoU with
Indian Oil Corporation Limited
(IOCL) for CO2 based Enhanced Oil Recovery (EOR). Under this initiative, the
CO2 captured from the IOCL's Koyali refinery will be utilized for EOR in the
depleting oil fields of ONGC in Gandhar field, near Vadodara. The project has the
potential for sequestrating 5 to 6 Million TCO2 by the year 2040.
33. 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/
Board 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.
34. Conservation of Energy, Technology Absorption and Foreign Exchange earnings &
Outgo:
The information as required under section 134(3) (m) of the Companies Act, 2013, read
with the Companies (Accounts) Rules, 2014, is annexed as Annexure-Rs..
35. Business Responsibility and Sustainability Report
Business Responsibility and Sustainability Report (BRSR) is annexed as Annexure-D and
forms part of the Board's Report.
36. Management Discussion and Analysis Report
As per regulation 34(2)(e) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations 2015, the Management Discussion and Analysis Report (MDAR) forms
part of this Report.
37. Corporate Governance
A report on Corporate Governance as stipulated under Regulation 34(3) read with
Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and
also on DPE Guidelines on Corporate Governance, 2010 forms part of the Annual Report.
38. Human Resource Development
Employees are our most valuable resource driving the Company to unparalleled excellence
in the energy business. As a strategic business partner, your Company's HR practices are
in alignment with its vision to be global leader in the integrated energy business. Our HR
vision is to build and nurture a world class human capital for leadership in energy
business, by continuously innovating and adopting best-in-class HR practices to support
business leaders through engaged, empowered and enthused employees.
As on 31 March 2023, there were 25,993 employees on the rolls of ONGC. Your Company
empowers these dedicated energy soldiers through its HR strategies focused on workforce
planning, talent acquisition, performance management, learning & development, career
growth, succession planning, leadership development and on enhancing employee experience
and engagement by extending best of employee facilities, welfare benefits and work
environment.
Capacity building of strong workforce of 25,993, to cater to both current and
future work requirements is a major thrust area. The challenging and transitioning E&P
business environment calls for accelerated development of employee knowledge, skills and
competencies. Your Company therefore, has dedicated Institutes providing focused and
relevant learning & development opportunities to employees. With a view to build a
leadership pipeline and providing healthy balance of both academic and field exposure to
its energy professionals, ONGC has tied up with a number of national & internationals
institutions, agencies and business schools. During FYRs.3, 19,846 executives and 5,506
non-executives were imparted training in relevant domains, spanning 66,806 executive and
13,764 non-executive training days.
Learning Management System: During the year, ONGC Academy, on-boarded Learning
Management Software of Ministry of E&IT and National Programme on Technology Enhanced
Learning (NPTEL) developed by seven Indian Institutes of Technology,
with the objective of enhancing knowledge and skills of executives. Various components
of the system have been successfully tested and rolled out.
Leadership Development: Your Company has structured and strategic learning and
development initiatives focused at nurturing the right technical and managerial abilities
at all executive levels to build energy leaders of tomorrow.
Harvard Manage Mentor program is one such initiative being offered to 3,100
executives, involving self-paced, anywhere anytime learning, assessments and real time
personal guidance. The program covers E2 to E4 level executives under the buckets Managing
Yourself, E5 to E6 - Managing others & E7 & above under Managing the Business.
Employee Engagement: In FYRs.3, ONGC
implemented a gamut of employee engagement activities to promote a culture of open
communication, trust, sense of belonging, team spirit, innovation and excellence. Some
highlights are as follows:
i. A 2-day Youth Meet was organized in August 2022, to bring together about
250 young officers from different work centres in a live and energetic physical setup for
experiencing, first-hand, the ONGC corporate ethos. During the 2019 -21, all new joinees
underwent virtual on-boarding on account of the pandemic restrictions. This Youth Meet
allowed them to initiate organizational friendships, expand social network and improve
batch camaraderie. The youth meet created an opportunity for the new joinees to interact
with ONGC Executive Committee, hear leadership perspectives and understand their Company's
journey, energy transition, corporate strategies and its national impact. The Youth Meet
saw a confluence of young ideas emerge through power packed discussions with top
management. The event included a series of competitions, live Energy and Business
Management Quiz, Youth Executive Committee meeting and interactions with national youth
icons such as Virender Sehwag and Chetan Bhagat.
ii. In ONGC the formal mentoring initiative was
introduced in 2008. ONGC management reintroduced the mentoring framework in 2021 with a
perspective to create an informal social learning opportunity that allowed for knowledge
transfer, professional and personal development of young officers who joined the
organization during the pandemic outbreak. In FYRs.3 approximately 650 new mentors and
around 600 mentees have been initiated into the mentoring
program. The mentee and mentors are also being given mentoring handbooks to capture
their discoveries, reflections and document their learnings.
iii. With a focus on connecting with the younger generation, more than 30 People
Connect Sessions were conducted across work centres for improved engagement &
interaction of key executives and seniors with work teams.
iv. Annual ONGC Business Games was successfully conducted to hone competencies such
as strategic thinking, business acumen, entrepreneurial learning, decision making,
critical thinking and collaboration in a competitive scenario under simulated business
constraints. During FYRs.3, a total of 217 teams and 868 executives participated in these
games.
v. Fun Team Games were also conducted for E0 and below level employees as a
capacity building and employee engagement initiative to enhance coordination, cooperation,
communication, planning, result orientation, mental/physical dexterity among the
participants, wherein more than 380 nos. of employees participated in the event.
vi. A special executive presence program was
conducted for senior level executives. The program was held over a four-week duration,
in a hybrid module combining both in-person sessions and online learning sessions on LMS.
The program focused on the journey of personal transformation that reflects in a person's
brand and the high intrinsic value that he/ she adds to the organization through their
presence, knowledge and individual contribution.
Digitization of HR Processes: In line with your Company's HR vision of continuous
innovation and adopting best-in class practices, a number of digital initiatives were
taken up towards improved employee processes, HR workflows etc. During the FYRs.3, ONGC
has digitized the Loans and Advances process and the nomination process for various
Trusts.
Employee Recognition:
Your Company observed its Annual Awards 2022 with great enthusiasm on 19 February 2023,
in Jaipur, to recognize its promising employees in different categories. This gala award
ceremony was conceptualized to engage and inspire the employees of the organization to
achieve greater heights and contribute to the organization and the nation altogether. The
idea was to connect to the employees by applauding their achievements and making them feel
recognized as great assets to the organization.
Employee Welfare: Your Company introduced new policies and such as paternity leave
to male employees on adoption of a child, medical facilities for dependent parents of
retired employees, additional financial support in case of death/disablement due to
accident on duty, payment of ex-gratia to secondary workforce who succumbed to Covid-19,
and reviewed existing policies leading to enhancement of ad-hoc payment under ONGC
Composite Social Security Scheme and revision of guidelines for home nursing care.
Work- Life Balance: ONGC focuses on employee well-being by promoting healthy
work-life balance. Enhancing employee experience is a priority and your Company achieves
this through well-developed facilities like gymnasiums, clubs, sports facilities and music
rooms in its townships. Facilities for gym, sports, yoga, library, etc. are also offered
in ONGC's offshore living quarters.
Your Company also recognizes and supports Collectives and other groups like Officers'
Club, Women Development Forum, Employee Welfare Associations, Resident Welfare
Association, etc. in each of its work centres. These Collectives and affinity groups
organized various sports, cultural and community events, which brought employees together
and built a sense of camaraderie and collective belonging.
‘ONGC Himalayan Association' has continued to foster the spirit of adventure
and oneness with nature in its employees by organizing activities like mountaineering,
trekking and water rafting.
Health and Wellbeing: Wellness Centres have been set up at various work centres of
ONGC to provide consultations/ counselling to employees and their dependent family
members, especially on issues related to mental health and well-being.
Employee Welfare Trusts:
Your Company has established the following Trusts for welfare and social security of
employees:-
• Employees Contributory Provident Fund (ECPF) is an exempted PF Trust established
by your company under EPF&MP Act 1952. The Trust manages the Provident Fund of the
employees.
• Post-Retirement Benefit Scheme (PRBS) Trust manages the pension fund of
employees of your company.
• 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.
• Gratuity Fund Trust has been established for payment of gratuity as per the
provisions of the Gratuity Act.
• ONGC Post-Retirement Medical Benefits (PRMB) Trust has been established during
the year to manage the funds for the post-retirement medical benefits of employees.
• ONGC Leave Encashment Trust has been established to manage the funds for the
Earned Leave encashment benefits of employees.
• The ‘Sahyog Trust' has also been set up by your Company for its
Sahyog Yojana aimed at providing ex-gratia financial grant for sustenance, medical
assistance and treatment, rehabilitation, education, marriage of female dependent and
alleviation of any hardship or distress to workforce and their kin, who lack other means
of support. Under this scheme, support is offered to casual, contingent, daily rated,
part-time, ad hoc, contract appointees, and tenure-based employees, apprentices and
trainees engaged by your Company besides regular and past employees.
• The Asha Kiran Scheme is also in place to meet the emergency needs of the
ex-employees retired prior to 1 January 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
ONGC recognizes its responsibility towards welfare of SC and ST communities and
complies with the Government directives in this regard. The percentage of Scheduled Castes
(SC) and Scheduled Tribe (ST) employees were 15.4 percent and 11.3 percent respectively as
on 31 March 2023.
Your Company carried out following welfare activities for their betterment in and
around its operational areas:-
i. Annual Component Plan: An allocation of Rs.00 Million is made every year under
the Annual Component Plan. Of this, Rs.0 Million is allocated to work centres for taking
up welfare activities for local communities in operational areas. The remaining Rs.40
Million is managed centrally, and is earmarked for taking up welfare initiatives
(education, training, community development, medical and healthcare)
for the welfare of areas/persons belonging to SC/ST communities.
ii. Scholarship to meritorious students: To
support higher education of meritorious SC & ST students, 1000 scholarships are
offered annually to SC & ST students for pursuing Engineering, MBBS, Geosciences and
MBA courses. An amount of Rs.8,000/- per student per year is offered, subject to
fulfilment of conditions under the scheme.
Diversity & Inclusion: ONGC is an equal opportunity employer. ONGC adheres to
constitutional and government guidelines on creating opportunities for employees and
promotes employee development, irrespective of their caste, creed, race, gender,
specially-abled status etc. Employees are empowered with best in industry support and
opportunities, enabling them to excel in their professional and personal lives. Sufficient
representation in terms of diversity, as per government guidelines, is ensured.
Women Development: Women employees constituted 7.8 per cent of ONGC's workforce as
on 31 March 2023. Your Company has been a pioneer in promoting inclusive workplaces
practices that support career growth of women and enhance leadership capabilities of
women. A focused programme on Women Leadership Development Urjasvini-NextGen, was
launched for a batch of 25 young women executives at E2 - E4 level by ONGC during FYRs.3,
to mentor and develop high-potential women executives for middle management roles, laying
the foundation for furthering their leadership aspirations as future leaders of ONGC.
As part of an initiative called Voice of Oil Women (VOW) which was started in January
2022, ONGC's Women Development Forum (WDF) Chapters, continued to organize online sessions
every month for knowledge sharing, learning and networking amongst the women fraternity.
Inclusion of Persons with Disabilities (PwD): Your Company's infrastructure and
facilities provide an enabling environment to Persons with Disabilities, supporting them
to effectively discharge their duties. Due consideration is provided to PwD employees in
matters of recruitment, job assignments, transfers, accommodation and leaves. In an effort
towards creating an equitable environment where PwDs can connect, play sports and build
sense of community, your Company organizes the ONGC Para Games. ONGC is the only public
sector enterprise to organize Para Games to promote sporting talent of Persons
\ _
with Disabilities.
The Hon'ble Minister of Petroleum and Natural Gas inaugurated the 4th ONGC Para Games
in Thyagaraj Sports Complex in Delhi on 2 August 2022. 275 specially-abled employees from
eight central oil and gas public enterprises participated in the 4th ONGC Para
Games being held during 2 to 4 August 2022. 192 ONGCians were among the participants.
Disclosure under the Sexual Harassment: ONGC has complied with the provisions under
the Sexual Harassment of women at workplace (Prevention, Prohibition and Redressal) Act,
2013. As per the provisions under the Act, Internal Complaints Committees (ICC) have been
constituted for dealing with complaints of sexual harassment of women at workplace. The
members of the ICC have been provided training programs to equip them with relevant
knowledge and tact for enquiring into such complaints.
Following is a summary of sexual harassment complaints:
| Financial Year |
Number of complaints received |
Number of complaints disposed-off |
Pending complaints as at 31 March 2023 |
| 2022-23 |
6 |
4 |
2 |
39. Industrial Relations
Harmonious Industrial Relations were maintained in your Company throughout the year.
Man-days loss due to internal industrial action was reported as ‘NIL' for FYRs.3.
40. Compliance under the Right to Information Act, 2005
A well-defined mechanism is in place to deal with RTI applications received under the
Right to Information Act 2005. A senior level officer has been designated as ‘Nodal
Officer' for fulfilling the requirements under RTI Act 2005. 23 executives have been
designated as ‘Central Public Information Officers' (CPIOs) in various work centres
across the Company to process RTI applications.
The corporate website of your Company, www. ongcindia.com, has important Information
relating to Right to Information Act, 2005 for convenience of general public.
During FYRs.3, your Company received 1,519 applications (including 58 transferred by
other Public Authorities). Against these applications, information
as sought were provided in 1,386 applications, 13 applications were rejected and 35
applications were transferred to other public authorities, 2 were returned to applicants
in accordance with the provisions of the RTI Act 2005. There were 247 first appeals, 226
were disposed-off during the period. Total pending requests were 21 as on 31 March 2023.
41. Implementation of Official Language Policy
In FYRs.3 your Company took all efforts to promote and implement Official Language
Policy. As per the Directives of Parliamentary Committee on Official Language, inspection
of the work centers across ONGC were carried out. Paperless office has been made bilingual
for effective implementation of Official Language policy. For enabling bilingual working,
Unicode has been installed in SAP platform. To achieve the annual target of Official
Language by using the applications of Hindi Computing tools, a special workshop/webinar
has been conducted for Official Language Executives posted at different work centres of
ONGC in association with Rs.-DAC, Pune.
To encourage the employees to do their work in official language, various incentive
schemes have been introduced in ONGC such as Best work center Award, Hindi Sevi Karmik
Award and Special Hindi Incentive Scheme. A bilingual handbook has also been prepared and
uploaded on ONGC's internal portal or.net for ready reference on Official Language policy.
Besides, ONGC has also conducted Hindi workshops at regular intervals in all work
centres. Hindi technical seminars/Webinars, Kavi Goshties, Kavi Sammelan and Hindi plays
have been organized at various work centres. The Rajbhasha Fortnight was organized
from 14 to 18 September 2022, during which, various competitions, programs and events were
conducted. On the occasion of Vishva Hindi Divas, local litterateurs were honoured at the
headquarters and other work centres of ONGC.
Hindi Teaching Scheme of Government of India was implemented effectively at all
regional work centres of the Company. Besides, Hindi E-magazines are being published to
promote paperless Office by all work centres of ONGC. An E-Roster of Employees with
working knowledge of Hindi has also been put in place.
42. Sports
As a responsible Maharatna PSU, ONGC strongly supports the promotion of sports and
sportsmen by
offering employment opportunities and scholarships to sportspersons. Your Company's
sponsorship of various sporting associations, federations and events as well as support to
develop sporting infrastructure has supported many sportspersons in bringing in accolades
to the nation and the organization.
Some of the significant achievements of our sportspersons during the year were as
follows:
(i) Five ONGC sports persons represented country and won medals in Commonwealth Games
2022 at Birmingham (UK):
• Table Tennis players G. Sathiyan & Harmeet Desai won Gold Medal in team
event
• Badminton Player Ashwini Ponappa won Silver medal in Mix team event.
• Hockey players Gurjant Singh, Mandeep Singh secured a Silver Medal in Men's
Hockey Team
(ii) Badminton player H. S. Prannoy was conferred with Arjuna Award for the year
2022 by President of India.
(iii) The total number of National Awardees in the organization stands at 61:
• Padma Bhushan - 1
• Khel Ratna - 2
• Padma Shri - 6
• Arjuna Award - 50
• Dhyanchand Award - 2
(iv) Other Highlights
• Badminton player H S Prannoy was part of the Thomas Cup winning team at Bangkok
in May 2022
• Pankaj Advani won the IBSF World Billiards Championship in Kuala Lumpur,
Malaysia in October 2022.
• Rashmi Kumari became the World Champion by winning 8th World Carrom
Championship in Langkawi, Malaysia in October 2022. She is 3rd time World Champion and 11th
time National Champion.
• Grandmaster K Sasikiran won the Liffre International Open Chess Tournament,
France in October 2022.
• Shiva Thapa won Silver Medal in Light weight
category at ASBC Asian Boxing Championship, Jordan in November 2022. He consecutively
won sixth medal in Asian Boxing Championship 2013, 2015, 2017, 2019, 2021,2022.
• Sports scholarships in 22 sports were awarded to 214 budding talents
• To encourage and support women in sports, sports scholarships were also awarded
to women in Kabaddi, Wrestling, Boxing, Hockey, Archery etc.
43. Corporate Social Responsibility (CSR)
As one of India's foremost Nation Builders, your Company is committed towards its
social responsibility. The Annual Report on CSR activities is annexed as Annexure - E.
44. Regulatory or Courts order
During FYRs.3, there was no order or direction of any court or tribunal or regulatory
authority either affecting Company's status as a going concern or which significantly
affected Company's business operations.
45. Material changes and commitments affecting financial position between the end of
the financial year and date of the report
There have been no material changes and commitments which affect the financial position
of the Company that have occurred between the end of the financial year to which the
financial statements relate and the date of this report.
46. 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 March 2023 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 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.
47. Annual Return
Pursuant to Section 134(3)(a) read with Section 92(3) of the Companies Act, 2013 Annual
Return of the Company is placed at https://ongcindia.com/web/ eng/investors/annual-return
48. 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 Whole-time Directors are subject to the
applicable guidelines issued by the Department of Public Enterprises (DPE), Government of
India.
49. Audit Committee
In compliance with Section 177(8) of the Companies Act, 2013 and Regulation 18 of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on
Corporate Governance, 2010 the details regarding Audit Committee is provided under
Corporate Governance Report which forms part of Annual Report.
There was no instance during FYRs.3, where the Board had not accepted any
recommendation of the Audit Committee.
50. Vigil Mechanism:
Your Company has established Whistle Blower Policy/ Vigil Mechanism to report genuine
concerns about ethical behaviour, actual or suspected fraud, violation of Code of conduct
and also instances of leak of unpublished price sensitive information. The said vigil
mechanism provides for adequate safeguards against victimization of persons who use the
mechanism and
has provision for direct access to the Chairperson of the Audit Committee in
appropriate or exceptional cases.
Policy of the Company may be accessed at https://
ongcindia.com/web/eng/investors/policies
51. Vigilance Functions:
Your Company has a full-fledged Vigilance Department headed by Chief Vigilance Officer.
The Department operates on the guidelines of Central Vigilance Commission on Vigilance
management in Public Sector Enterprises and is guided further by instructions issued by
the Department of Personnel and Training and MoPNG from time to time.
Complaints are handled as per the complaint handling policies stipulated in Vigilance
Manual issued by the Central Vigilance Commission. The prime focus of Vigilance activities
has been Preventive and Participative Vigilance by having regular interaction with
employees and other stakeholders to spread awareness among the masses.
Details of vigilance cases are provided as under:
| Nature of cases |
Details of cases |
| Penalty imposed during the financial year (2022-23) |
Cases Pending as on 31 March 2023 |
| Major penalty |
16 |
8 |
| Minor penalty |
19 |
3 |
52. Reporting of Fraud:
During FYRs.3, the Company has reported an instance of fraud by way of misappropriation
of funds through payment made against fictitious medical bills by one regular and one
contractual ONGC Doctor in collusion with a vendor. The relevant details (refer Note 24.5
of stand-alone financial statements) are provided as under:
a) Nature and Description of fraud: Payment against fictitious medical bills;
b) Amount involved: Rs..41 Million identified till date;
c) Parties involved, if remedial action not taken: Not applicable; and
d) Remedial action taken - Based on internal departmental enquiry process, the regular
ONGC Doctor involved in the reported fraud has been dismissed from the services of ONGC.
Further, services of contractual Doctor have also been
terminated. The empanelment of vendor involved in the fraud, has also been terminated
by ONGC. The matter has also been referred to CBI for investigation and criminal
prosecution, if any.
In order to prevent recurrence of such instance and to strengthen the internal control
mechanism, Internal Audit carried out special audit of medical process and recommended
various control measures including empanelment of chain pharmacies, fast track
implementation of ONGC Clinical Referral e-system (ONGCares), strengthening of system
controls over medical cards for all beneficiaries, stringent compliance of Segregation of
Duties (SoD) in medical process, robust communication and acknowledgement mechanism for
medical services which are under implementation.
Steps towards streamlining the Medical Services:
Following measures have already been put in place so that such incidence does not
recur:
a. The details of medical treatment advice / medicines prescribed are being sent by SMS
at the registered mobile number of the beneficiary employee - regular and separated.
b. Randomised bill checking: Checking of bills of one work centre by other work centre.
c. Internal Audit has completed the system study and the suggested changes are being
implemented.
53. 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.
54. Auditors
The Statutory Auditors of your Company are appointed by the Comptroller and Auditor
General of India (CAG). There were 5 Practicing Chartered Accountants firms namely M/s
SARC & Associates, M/s Kalani & Co., M/s R.G.N. Price & Co. M/s S. Bhandari
& Co. LLP and M/s J Gupta & Co. LLP who were appointed as Joint Statutory Auditors
of the Company for FYRs.3.
The Statutory Auditors have been paid a total remuneration of Rs.5.08 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.
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 FYRs.3.
There is no qualification in the Statutory Auditors Reports on the Financial Statements of
the Company for FYRs.3. Further, Comptroller & Auditor General of India (Rs.&AG)
in its Supplementary Audit under Section 143(6) read with Section 129(4) of the Companies
Act, 2013, has provided "Nil" comments in Consolidated and Standalone Financial
Statements for FYRs.3. The comments of Comptroller & Auditor General of India
(Rs.&AG) form part of this Report and is attached as Annexure - F.
55. Rs.&AG Audit on other matters:
The Rs.&AG conducts audits of various nature viz. Performance Audit, Thematic
Audit, Compliance Audit, Follow-up Audits, etc.
As on 31 March 2023, there are twenty five published Rs.&AG reports/paras of
previous years, pending at various stages. These are related to Payment of Stagnation
Relief, Non-recovery of Perquisite Tax, Payment towards Encashment of Half Pay Leave/
Earned Leave, IT Audit on FI-CO Module of Sap Loss of Interest due to Inordinate Delay in
Receipt of Share of Gas Transportation Charges, Delay in Appraisal and Non-Monetisation of
the Discoveries in KG- DWN-98/2 Block, Non Achievement of objective of Acquiring Coal Bed
Methane (CBM) Blocks, Avoidable Extra Expenditure due to Delay in Procurement of Casing
Pipes, Failure to obtain the Share of Cost of Immediate Support Vessels purchased by ONGC
for Security of Offshore Assets from private Exploration and Production (E&P)
Operators, Non-recovery of pending Cash Calls, Construction of Toilets in Schools by
CPSEs, Loss of Returns to ONGC due to Adoption of Financing Mechanism to Maintain the
Status of OPaL as a Non-Public Sector Undertaking, Avoidable Payment of Equipment Standby
Rentals, Supply of Gas without Security resulted in Non-recovery of Dues, Water Injection
Operations in Western Offshore, Loss due to Flaring of High Pressure Gas, Management of
Spectrum assigned on administrative basis to Government Departments/ Agencies, etc.
These Audit Paras have been suitably replied and the same are under review of MoPNG or
Rs.&AG.
56. Cost Audit
There were 6 cost accountants firms, namely M/s ABK & Associates, M/s Sanjay Gupta
&
Associates, M/s Rao, Murthy & Associates, M/s Shome and Banerjee, M/s Dhanajay V
Joshi & Associates and M/s Dewanji & Co. appointed by the Board as Joint Cost
Auditors of the Company for FYRs.3. 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.
57. Secretarial Audit
Your Company had engaged M/s JMC & Associates, Practicing Company Secretaries as
Secretarial Auditors for FYRs.3. Secretarial Audit Report is annexed as Annexure - G.
Reply of management to the qualifications made in the Secretarial Audit Report are as
under:
Board Composition:
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. There
was shortage of one Independent Director during intermittent period, i.e. 13 July to 31
August 2022 and 7 December 2022 to 28 February 2023, due to completion of tenure of one
Independent Director in the first instance and appointment of one whole-time director in
other case. The Company was fully compliant as on 31 March 2023.
Availing working capital loans for short periods on a rolling basis against lien on
Term deposits from nationalized banks:
The Company did not register charges for loan against Term Deposit Receipts from Banks.
The Banks stated that no charge was required to be registered for the loans against Term
deposits as the original of Term Deposit receipts were kept with banks under lien. The
Company accords priority to compliance requirements and matter is under examination in
consultation with legal practitioner.
58. Changes in Board of Directors and Key Managerial Personnel
Being a Government Company, policy on directors' appointment and remuneration is not
applicable and also evaluation of their performance is exempted under the Companies Act,
2013.
Details of Appointments/ Cessation of Directors and KMPs:
Changes in the Board/ Key Managerial Personnel of the Company during the year and up-to
date of the Report are as under:
• Shri Arun Kumar Singh has been appointed as the Chairman w.e.f. 07.12.2022 and
Chief Executive Officer (CEO) of the Company w.e.f. 24 January 2023. He also holds the
additional charge of post of Director (Strategy & Corporate Affairs) w.e.f. 1 August
2023.
• Dr. Alka Mittal, ceased to be Chairman & Managing Director (Addl. Charge)
and Director (HR) of the Company w.e.f. 01.09.2022.
• Smt. Sushma Rawat has been appointed as Director (Exploration) of the Company
w.e.f. 1 January 2023.
• Shri Rajesh Kumar Srivastava ceased to be Director (Exploration) on the Board
w.e.f. 1 January 2023.
• Shri Anurag Sharma ceased to be Director (Onshore) on the Board w.e.f. 1 March
2023.
• Shri Manish Patil has been appointed as Director (HR) of the Company w.e.f. 5
May 2023.
• Shri Parveen Mal Khanooja, IAS, Additional Secretary in the Ministry of
Petroleum & Natural Gas has been appointed w.e.f. 23 September 2022 as the Government
Nominee Director vice Shri Srinivas Gudey, the then Additional Secretary & Financial
Advisor.
The Board places on record its appreciation for
commendable contribution made by Dr. Alka Mittal,
Shri Rajesh Kumar Srivastava, Shri Anurag Sharma
and Shri Srinivas Gudey during their tenure on the
Board of your Company.
59. Declaration by Independent Directors:
The Company has received declaration from Independent Directors confirming that they
met the criteria prescribed under the provisions of Companies Act, 2013 and SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
60. 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 to ensure that the Company continues to
sustain, grow and excel.
On behalf of the Board of Directors
|
Sd/- |
| Place: New Delhi |
Arun Kumar Singh |
| Date: 4 August 2023 |
Chairman & CEO |
Annexure - A
Awards and Accolades
1. Fortune Global 500 list 2022
ONGC has been ranked 190th globally & 4th in India in Fortune
Global 500 list 2022.
2. Platt's Top 250
ONGC has been ranked 14th among global energy majors in the coveted Platt's
Top 250 Global Energy Company Rankings 2022.
3. Forbes 2000 list 2023
ONGC has been ranked 226th globally & 5th in India in Forbes
Global 2000 list 2023.
4. Great Place to Work
ONGC features in Great place to work's list of India's Best Employers among
Nation-Builders.
5. Golden Peacock Award for risk management
ONGC has received the ‘Golden Peacock Award for Risk Management' at the London
Global Convention on Corporate Governance & Sustainability organized by the Institute
of Directors.
6. ONGC has been conferred with Best Overall Performance Award
ONGC has been conferred with the ‘Best Overall Performance Award' in
‘Upstream/Midstream Sector' for oil and gas conservation activities for Saksham-
2021at the inaugural ceremony of Saksham-2022 by Petroleum Conservation Research
Association under the aegis of Ministry of Petroleum and Natural Gas.
7. Green Ribbon Champions Award
In recognition of ONGC's commitment to sustainability and consistent efforts in
protecting biodiversity surrounding its operational areas, CNBC, Network18 Group conferred
‘The Green Ribbon Champions Award' to ONGC.
8. ONGC conferred with the high procurement value award in GeM
In recognition of ONGC's efforts to enhance procurement through Government
e-Marketplace (GeM), ONGC has been conferred with "GeM Top Buyer Award" for 3rd
highest procurement by value during FYRs.2.
9. ET Energy Leadership Awards
ONGC bagged the "Energy Company of Year" (Large Cap) Award & adjudged
runners-up in the Star PSU of Year Award. Dr Alka Mittal former Director (HR) and CMD
(Addl. Charge) was conferred "Energy Woman of the Year "Award.
10. ONGC conferred with National CSR Award
ONGC adjudged winner in "Environment, Sustainable Development and Solar
Energy" category of ‘National CSR Award 2020' conferred by Ministry of Corporate
Affairs.
11. Best Employer Brand Award
ONGC received the Best Employer Brand Award at National Best Employer Brand Awards.
12. ONGC bagged WCDM-DRR Awards
ONGC won the "World Congress on Disaster Management- Disaster Risk
Reduction"- (WCDM- DRR) Award for excelling in the field of Disaster Management by
"bringing new practices, improving the existing ones, upgrading the tools &
skills and innovating new areas".
13. ONGC's Corporate HSE bestowed with Energy and Environment Foundation Global
Environment Award 2022
Corporate HSE has been awarded by the prestigious Energy and Environment Foundation
Global Environment Award 2022 in Platinum Category for outstanding achievement in
operational excellence and environment conservation.
14. Institute of Drilling Technology, ONGC bags ‘Golden Peacock National Training
Award 2022'
In recognition of excellence in training practices of Institute of Drilling Technology,
Dehradun, "Golden Peacock National Training Award 2022" conferred by Institute
of Directors. IDT is a leading training and R&D institute in the field of Drilling,
Well Control, Cementation, Drilling Fluid, and Completion Fluid Engineering.
15. ONGC Conferred with ‘Finance Transformation Award'
ONGC bagged the ‘Finance Transformation Award' for "Comprehensive Digital
Transformation of
Entire Finance Process" at the SAP Achievement in Customer Excellence Awards (SAP
ACE Awards) 2022.
16. ONGC Videsh received Golden Peacock Award for Risk Management
ONGC Videsh has been conferred by ‘Golden Peacock Award for Risk Management' for
the year
2021 for its ability to thrive in ever changing risk environment.
17. ONGC Videsh Colombia recognized for ‘Zero-labor Accidents' for 2 consecutive
years
ONGC Videsh Limited Sucursal Colombian has been recognized for completing two years
with ‘Zero Labour Accidents' in CPO-5 block of Llanos Basin in Colombia. A
Certificate of Recognition for the same was presented to ONGC Videsh, Colombia office, by
ARL SURA, a government-authorized entity in charge of administration, advice and
prevention of labour risks.
18. ONGC Videsh bestowed with two India Risk Management Awards
ONGC Videsh Limited received award for ‘Best Risk Management Framework and Systems
- PSU Category' and ‘Masters of Risk in Risk Technology - Large Cap category' at the
India Risk Management Awards constituted by ICICI Lombard & CNBC-TV18.
19. IIIE PERFORMANCE EXCELLENCE AWARD
2022
ONGC bagged Indian Institution of Industrial Engineering (IIIE) performance excellence
award 2022 in the Organization Category at the CEOs conference.
20. Indian Red Cross Special Award
Hon'ble Gujarat Governor gave the ‘Indian Red Cross Special Award' to ONGC for its
CSR support for COVID-19 testing in Ahmedabad.
21. ONGC has been conferred with Global safety Awards 2022
ONGC has been conferred with ‘Global Safety Awards 2022' in Platinum Category for
its outstanding performance in practicing excellent work culture.
22. Swachhta Pakhwada Award 2022 in ‘Above Rs.000 cr' category'
ONGC received ‘Swachhta Pakhwada Award 2022' in ‘above Rs.000 crore' category
for the financial
year 2022-23 for furthering vision of ‘Swachh Bharat Abhiyan'.
23. Global Oil Spill Management Award 2022
ONGC conferred with the Energy and Environment Foundation's Global Oil Spill Management
Award 2022 during the World Oil Spill Technology Conference 2022 (WPTC) for it's
outstanding achievement in the field of Oil Spill Management.
24. Award for Global Sustainability Leadership Award
ONGC bagged the ‘Global Sustainability Leadership Award' by World Sustainability
under the ‘Environment Sustainability Programme' in recognition of the it's exemplary
performance towards ensuring sustainable E&P operations.
25. Award for Best Security Practices in Energy Sector
In recognition of ONGC's efforts in Information Security. ONGC was conferred with the
‘Best Security Practices in Energy Sector' by the Data Security Council of India
during the Annual Information Security Summit 2022.
26. Best Risk Management & Risk Assessment Award
ONGC received the ‘Best Risk Management & Risk Assessment' Award at India HSE
& Awards Summit.
27. Governance Now 9th PSU Award
ONGC conferred with ‘Governance Now 9th PSU Award' under the category
"Nation-Building" for its multifaceted contributions to Nation-Building &
"Communication Outreach" award for it's versatile outreach.
28. Sportstar Aces Award 2023
ONGC won ‘Sportstar Aces Award 2023' under the category- Best PSU for promotion of
Sports.
29. Greentech International EHS Award 2023
ONGC won the ‘Greentech International EHS Award 2023' for it's exemplary
performance in Environmental Leadership.
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