Welcome

Graduate Trainees

Tuesday, November 12, 2013

Welcome to ONGC
Welcome to you all, for joining the
team of about 32923* strong
professionals. You have joined a
mainstream organization, actively
associated in the nation building
and contributing towards your
nations energy security.
* Manpower Status as on 01-04-2013
Tuesday, November 12, 2013

Welcome to ONGC
You are now a proud member of the
family contributing significantly to
nations GDP through Integrated
Energy business and to Central
and State Govt.
Govt Revenue through
Custom, Income Tax, Sales Tax,
Octroi, Cess & Royalty.
Tuesday, November 12, 2013

Presentation Sequence
ONGC: Past & Introduction
Present Scenario
Vision & Mission
Performance Trends
SWOT Analysis
Strategies for brighter tomorrow

Tuesday, November 12, 2013

An Exploration & Production (E&P) Company

Working for Indias Energy Security

Tuesday, November 12, 2013

ONGC: An Introduction
A Humble Beginning
Soon after Independence, the
Government of India formulated a
national
policy,
p
y
which
made
development of oil resources the
exclusive responsibility of the State.
Tuesday, November 12, 2013

ONGC: An Introduction
As a first step towards the
implementation of this policy, a
Petroleum Division was created in
October, 1955, exclusively for oil
exploration in the country within
the Geological Survey of India.

Tuesday, November 12, 2013

ONGC: An Introduction
Soon, the Division grew into the Directorate
Soon
of Oil & Natural Gas and was raised to the
status of a Commission on August 14, 1956.
The Commission was later converted into
Statutory
y Body
y on October 15,, 1959 with
Headquarters at Tel Bhavan, Dehradun. It
was formed under an Act of Parliament as a
`Commission`
Tuesday, November 12, 2013

ONGC: An Introduction
Its creation
It
ti
i 1956 was to
in
t reflect
fl t the
th
philosophy of self-reliance contained in
the Industrial Policy Resolution of that
year.
At that time,
time it was decided that core
sector such as oil and gas exploration
would be reserved for the state-owned
units.
Tuesday, November 12, 2013

ONGC: An Introduction
ONGC came into being at a time when
most of the oil in India was
undiscovered.
The indigenous production was
entirely from the Upper Assam area,
area
where oil had been struck as far back
as 1890, in Digboi Oil Field of
BOC/AOC.
Tuesday, November 12, 2013

10

ONGC: An Introduction
No further discovery was made till the
middle of 20th century.
In early fifties, BOC, which was later
nationalized and renamed as Oil India
Limited discovered two fairly large oil
Limited,
fields namely Noharkatia & Moran in
Upper
Assam
&
began
their
development.
Tuesday, November 12, 2013

11

ONGC: An Introduction
From modest scale of Operation
p
in limited area,,
ONGC expanded petroleum exploration activities
through intensive efforts with remarkable
success.
In the onland, it established new resources in
Upper Assam Basin and also found new oil
province in Cambay Basin.
Subsequently, it added new petroliferous areas
in Assam Arakan Fold Belt, Krishna Godavary
Basin, Cauvery Basin & Mumbai Offshore Basin.
Tuesday, November 12, 2013

12

ONGC: An Introduction
The first ONGC well was spud
p
at
Jwalamukhi in April, 1957.
Lunej-1 in Cambay is the first oil well of
ONGC, spud in July, 1958. A significant
on-shore discovery of oil was made at
Ankleshwar in May,
May 1960.
1960
This was followed by the discovery of
oil in Kalol field near Ahmedabad and
Rudrasagar field in Assam.
Tuesday, November 12, 2013

13

ONGC: An Introduction
In March 1970, the first off-shore well was
spud at Bhavanagar.
Offshore drilling commenced at Bombay High
in 1973 and Oil was discovered in 1974.
In March 1976, Gas was found at Bassein
structure in Bomaby offshore.
In July 1978, the oil pipeline system from
Bombay High to Trombay was commissioned.
Tuesday, November 12, 2013

14

ONGC: An Introduction
In 1984,, ONGCs g
gas and p
pipeline
p
division was
converted into another company Gas Authority of India
Limited (GAIL). Until the late eighties, ONGC was
focused on crude oil production. The refining and
marketing of petroleum products was reserved for the
public sector companies lead by Indian Oil Corporation.
The scenario of PSU dominance in Oil sector changed
with the deregulation of the oil sector. With the opening
up of the oil sector, companies such as ONGC have to
contend with dramatic changes in the competitive
structure of the industry.
Tuesday, November 12, 2013

15

Historical Profile
1955 Oil and
d Gas
G Directorate,
Di
t
t GOI
1956 Oil & Natural Gas Commission
1959 Autonomous Statutory Body
1994
99 Public
ub c Limited
ted Co
Company
pa y
1997 A Navaratna PSU
2010 A Maharatna PSU
Tuesday, November 12, 2013

16

Present Scenario.

Tuesday, November 12, 2013

17

50+ Years of Exploration

ONGC discovered
6 out of the 7 Producing Basins of India
1967: Rajasthan Basin

1889: Assam Shelf *

1973: A&AA FB

1958: Cambay Basin

1980: KG Basin
1974: Mumbai Offshore

1985: Cauvery
Basin
* By AR & T Co. - Assam Railways and Trading Company Ltd.
18

Indian Sedimentary Basins

Category-I:
Proved petroliferous basins with
commercial production
Category II:
Category-II:
Basins with known occurrence of
hydrocarbons but no commercial
production
Category-III:
Basins with no significant
hydrocarbon shows but assumed
prospective on geological
considerations
Category-IV:
Frontier basins with uncertain
prospects. Deemed prospective on
analogy with similar basins
worldwide
Deep Waters

19

ONGC: An Introduction
Strong Footing
Starting with the production of 100
tonnes of crude oil in 1961, ONGC* has
produced 26.13 million tonnes of crude
oil and 25.34
25 34 billion cubic meters of gas
in FY- 2012-13.
* Oil & Gas Production from ONGC + ONGCs share in JV fields
20

10

ONGC: An Introduction
Today,
Today ONGC is one of the few oil companies
in the world engaged in every aspect of oil
exploration,
seismic
survey,
drilling,
production, research & development and
training.
ONGC has the experience of exploring for oil
in the most diverse geographical conditions,
on land as well as in the Offshore/Sea.
Tuesday, November 12, 2013

21

The Infrastructure

Tuesday, November 12, 2013

22

11

ONGC: E&P Infrastructure

State-of-the-art exploration & production
facilities
27+3*
Seismic Crews

240
Onshore
h
Installations
ll i

77+44*
Drilling Rigs

202
Offshore Installations

58+30*
Work Over Rigs

26,598 Km
Pipelines
p

107
Well Stimulation
Units

17+48*
OSVs/MSVs

27+46@
Logging Units
* Charter-hired

plus 37 wire line, 8 LWD charter-hired & Well Shuttle unit

ONGC: Processing Infrastructure

Hazira, Gujarat
Handling Capacity: 42 MMSCMD Sour Gas
Products: LPG, C2-C3, LAN

Uran, Maharashtra
Handling Capacity: 20 MMTPA Oil & 16 MMSCMD Gas
Products: LPG, ARN, SKO, ATF, Propane, HSD

Ankleshwar and Gandhar, Gujarat

LPG

Liquefied Petroleum Gas

SKO

Superior Kerosene Oil

C2-C3

Ethane- Propane

HSD

High Speed Diesel

LSHS

Low Sulphur Heavy Stock

ATF

Aviation Turbine Fuel

LAN

Low Aromatic Naphtha

ARN

Aromatic Rich Naphtha

Handling Capacity: 0.1 MMTPA Oil & 1 MMSCMD Gas

Products: LPG, Naphtha

Tatipaka, Andhra Pradesh

Handling Capacity: 0.1 MMTPA Oil
Products: Naphtha, SKO, HSD, Fuel Oil
MMTPA- Million Tonnes Per Annum
MMSCMD-Million Standard Cubic Meter per
day

24

12

ONGC : Institutes
K.D. Malviya Institute of Petroleum Exploration (KDMIPE), Dehradun
Basin
Basin modeling, HC Resource Appraisal, Prospect generation
Geological & Geo-chemical Research

Geodata Processing And Interpretation Centre (GEOPIC), Dehradun

Seismic Data Processing & Interpretation & Software Development

Institute of Reservoir Studies (IRS), Ahmedabad

Oil & Gas Field Development Planning, EOR/ IOR studies

Institute of Drilling Technology (IDT), (Dehradun)

Drilling Technology, Drilling Fluid & Cementing Engineering
W ll Control
Well
C t lS
School
h l

Institute of Oil & Gas Production Technology (IOGPT), Mumbai

Production Engineering, Facility Engineering, Well Analysis

Institute of Engineering & Ocean Technology (IEOT), Mumbai

Geotechnical & Structural Engineering
Material & Corrosion Engineering
25

ONGC : Institutes
ONGC Academy, Dehradun
I d ti Training,
Induction
T i i g M
Management
g
tD
Development,
l
t F
Functional
ti
l Training
T i i g

Institute of Petroleum Safety Health & Environment Management

(IPSHEM), Goa
Safety Audit, Inspection & Training, Occupational Health,
Environment Audit, Disaster Management, Survival at Sea Training

Institute of Biotechnology & Geo-tectonics Studies (INBIGS), Jorhat

Geo-microbial Hydrocarbon prospecting

Centre for Excellence for Well Logging Technology (CEWELL), Vadodara

Technology hub for Logging services/Special Studies

School of Maintenance Practices, (SMP), Vadodara

Certified training courses of Oil Field Equipment maintenance.

ONGC Energy Centre (OEC), Delhi
Holistic research beyond hydrocarbons
26

13

ONGC: Human Resources

Out of 32,923 69 % are executives (E1 & Above)
Manpower Profile

Human
Resources

Nos.

Class -1

22684

Class -2

1941

Cl
Class
-3
3

5602

Class-4

2696

Total

32923

St t i Business
Strategic
B i
unit wise Deployment

ASSETS
10466
32%

SERVICES
12655
39%

BASINS
2989
9%

CORPORATE
OFFICES PLANTS

3275
10%

1662
5%

INSTITUTES
1435
4%

OVL/ DEP.
OUT
441
1%

27

VISION

Tuesday, November 12, 2013

28

14

Vision
B ildi
Building
Companys
C
Vi
Vision
i

Companies that enjoy enduring success have

core values and core purposes that remain
fixed while their business strategies and
practices endlessly adopt to a changing world.
A well conceived vision consists of two major
components :

(a) Core ideology

(b) Envisioned future

Tuesday, November 12, 2013

29

Vision
B ildi
Building
Companys
C
Vi
Vision
i
The core ideology defines what we stand for
and why we exist.
The
core ideology is unchanging and
complement the envisioned future.
The Envisioned future is what we aspire to
become, to achieve or to create something
that will require significant changes and
progress to attain.
Tuesday, November 12, 2013

30

15

ONGC : Corporate Vision

To be a global leader in
Integrated Energy Business
through
Sustainable
Growth, Knowledge excellence
and
exemplary
Governance
Practices.
Adopted by ONGC Board in its 203rd meeting on 26th April 2010

31

Earlier Vision

To be a world-class Oil & Gas

Company integrated in Energy
Business with dominant Indian
Leadership and Global Presence.

Tuesday, November 12, 2013

32

16

Mission

The organizational mission statement

is a very broad statement of why the
organization exists.
The statement defines the business of
the organization.
g
It reveals what an organization wants
to be and whom it wants to serve.

Tuesday, November 12, 2013

33

ONGC : Earlier Mission & Objectives

In 1984,
1984 the ONGC had adopted the
following:
Mission and Objectives:
To
stimulate,
continue
and
accelerate exploratory efforts to
develop
and
maximize
the
contribution of hydrocarbons to the
economy of the country.
34

17

ONGC : Present Mission

World class
Excellence in R&D and technology.
High standards of Business Ethics & Organizational values.
HSE to enrich quality of community life.
Customer satisfaction through quality products & services.
Integrated in Energy Business
Focus on Domestic and international E &P business.
Provide
P
id value
l
Li
Linkages
k
in
i other
th sectors
t
off energy business.
b i
Create growth opportunities & Maximize shareholder value.
Dominant Indian Leadership
Retain dominant position in Indian Petroleum sector &
enhance Indias energy availability.
35

The Change
The Regional Business Centre Organizational
structure increased interdependencies and
resulted in slow decision making.
In

1997,

Meckinsey

&

Co.

proposed

restructuring plan in which the Asset Based

Management was proposed.

Tuesday, November 12, 2013

36

18

ONGC Board (Function Based Structure)

CMD

Corporate Wing
CPD/CMSG/PIB/CC

ONGC-OVL

Security/
Vigilance
DIRECTORS*
(Part Time)

MD

DIRECTOR
DIRECTOR DIRECTOR
(Exploration)
(E
ploration) (Operation) (Drilling)

Administrative
control
Functional
control

MRBC

KDMIPE
IRS
EXCOM
GEOPIC

WRBC

Mumbai

Vadodra

BOMBAY
OFFSHORE,
HAZIRA
URAN

AHEMDABAD,
ANKLESHWAR
MEHASANA,
CAMBAY,
RAJASTHAN

IOGPT

DIRECTOR
(Technical)

IDT

ERBC

Nazira

ASSAM
DVP
CACHAR

DIRECTOR
(Finance)

DIRECTOR
(Personnel)

IMD

IEOT
IPSEM

SRBC
Chennai

CAUVERY
K-G

NRBC

CRBC

Calcutta

Dehradun

W.BENGAL
TRIPURA

DEHRADUN

37

*Include non-official Directors, Govt. nominees

ONGC - Functional Organization

Assets
Offshore
1.Mumbai High
2.Neelam-Heera
3.Bassein
4.East Coast

Onshore
1.Ankleshwar
1
Ankleshwar
2.Assam
3.Mehsana
4.Ahmedabad
5.Karaikal
6.Rajahmundry
7.Tripura

Plants
1.Uran
2.Hazira
3.C2-C3

Basins

Institutes

1.Western Offshore
2.Western Onshore
3.Cauvery
4.KG & PG
5.MBA
6.AA&A
7.Frontier
8 CBM Project
8.CBM

1.KDMIPE
2.GEOPIC
3.IDT
4.IRS
5.IOGPT
6.IEOT
7.INBIGS
8 IPSHEM
8.IPSHEM
9.ONGC Academy
10.SMP
11.CEWELL
12.OEC

Corporate Functions

Planning, E&D, Infocom, Vigilance,

Audit, Marketing, JV&BD

Services
1.
2.
3.
4.
5.
6.
7.
8
8.

Geophysical
Drilling
Logging
Well
Engineering
Logistics
Technical
HSE

Support
1.HR/ ER
2.Finance
3.MM
4.Legal
5.Medical
6.Security
38

19

ONGC
moves closer
to integrated business
along the Oil & Gas Value Chain
+

Tuesday, November 12, 2013

39

ONGC:

Now sourcing energy from

Crude Oil
Natural Gas
Working on
LNG,
CBM
C lG
Coal
Gasification
ifi ti
(underground & surface)
Gas Hydrates
Renewable

Tuesday, November 12, 2013

40

20

ONGC Group
E&P the Core
business

Overseas E&P

Refinery

(100%)

(71.62%)

Value-chain

Services
(28.77%)

(26%)

(49%)
Joint Ventures
(49%)

(100%)

(100%)

SEZ
(23%)

(49%) *

Subsidiaries
(100%)

Others

ONGC Nile Ganga

B.V, Netherlands

(50%)

(26%)

(12 5%)
(12.5%)

ONGC Amazon
Alaknanda Ltd., Bermuda

Power

Jarpeno Limited, Cyprus

(50%)

(100%)

Carabobo One
AB, Sweden

(100%)

ONGC Narmada
Ltd., Nigeria

* ONGC: 46%, MRPL: 3%

41

ONGC Board
Chairman & Managing Director
Shri Sudhir Vasudeva

Functional Directors
(Full Time)

Government
Nominees

Independent
Directors

Director (HR)
Shri K.S. Jamestin

Shri Shaktikanta Das

Addl. Secretary, MOF

Dr. D. Chandrasekharam

Director (Finance)
Shri A.K. Banerjee

Shri A. Giridhar
Joint Secretary, MOP&NG

Prof. Deepak Nayyar

Director (Offshore)
Shrii P.K.
Sh
P K Borthakur
B th k

Shri Arun Ramanathan

Director (T&FS)
Shri Shashi Shankar

Shri O.P. Bhatt

Director (Exploration)
Shri N.K. Verma

Shri S.K. Barua

Director (Onshore)

Special Invitees
MD, OVL
Shri D.K. Sarraf

Shri K.N. Murthy

42

21

The Performance

Tuesday, November 12, 2013

43

Highlights - FY 2012
2012--13
22 New discoveries in FY
FY 13 (12 New Prospects
and 10 New Pools)

Ultimate Reserve Accretion (84.84 MTOE) ,

highest in last 22 years
Reserve Replacement Ratio (RRR = 1.839) more
than 1 for the 7th consecutive year
Production (including JV)

Oil
Gas

: 26.127 MMT ( 22.561+3.566)

: 25.510 BCM ( 23.549+1.786 )

Financials ( FY 2012-13):

Turnover
Net Profit

:
:

Rs. 83,309 Crore

Rs. 20,926 Crore
44

22

Reserve accretion (3P): FY13

Ultimate Reserves accretion in ONGC operated fields :
84.84 MTOE is the highest in last 22 years.
82.98

90
80
70

63.82

83 56
83.56

84.13

84 84
84.84

68.89

60
50

UR

40
30
20
10
0
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
MTOE: Million tonnes of oil equivalent

45

ONGC: O+OEG Production (MMToe)

48.28

47.86

47.78

47.51

47.03

46.11

22.33

22.49

23.11

23.09

23.32

23.55

25.95

25.37

24.67

24.42

'2007-08

'2008-09

'2009-10

Oil (MMT)

ONGC Production excluding JV share

'2010-11

23.71

2011-12

22 56
22.56

2012-13

Gas (MTOE)
46

23

PSC JVs Production - ONGCs share

(MMToe)
4.67

4.60

4.28

5.08

5.39

5.35

Gas (MTOE)
Oil (MTOE)
1.79

2.19
2.23
2.78

2.95

2.49

1.89

2007-08

1.65

'2008-09

3.57

3.21

2.86
1.79

'2009-10

'2010-11

2011-12

2012-13
47

ONGC : Gas Sales (BCM)

(Excluding PSC JVs)

17.76

17.71

18.24

18.26

18.23

18.60

2007-08

'2008-09

'2009-10

'2010-11

2011-12

2012-13
48

24

ONGC: VAP Production (MMT)

3.256

3.314

3.457

2007-08

'2008-09

'2009-10

3.203

3.218

3.152

'2010-11

2011-12

2012-13
49

ONGC : Production Centers

As in FY 12-13
Ahmedabad
Oil: 1.46 MMT;
Gas: 0.24
0 24 BCM

Rajasthan
Gas: 0.14 BCM

Domestic Producing Areas

Assam
Oil: 1.22 MMT;
Gas: 0.49 BCM

Mehsana
Oil: 2.28 MMT;
Gas: 0.18 BCM
Ankleshwar
Oil: 1.27 MMT;
Gas: 1.41 BCM
Cambay
Oil: 0.17 MMT;
Gas: 0.008 BCM
Mumbai offshore
Oil: 15.57 MMT;
Gas: 18.05 BCM

Tripura
Gas: 0.65 BCM
Rajahmundry
aja
u d y
Oil: 0.295 MMT;
Gas: 1.25 BCM
Eastern Offshore
Oil: 0.044 MMT; Gas: 0.056 BCM
Cauvery
Oil: 0.238 MMT;
Gas: 1.21 BCM

50

25

NELP Blocks with ONGC

ONGC has bid aggressively in NELP rounds . ONGC +ONGC Consortia
has bagged 126 blocks , which is about 49% of the total 258 awarded
blocks.
NELP Round

II

III

IV

VI

VII

VIII

IX

TOTAL

Blocks Awarded
by GOI

24

23

23 20 20 52 44

36

16

258

Awarded to
ONGC + ONGC
Consortia

16

13 14

17

126

Blocks
Surrendered

15

35

Blocks with
ONGC as (
Operator + Non
Operator)

10

17

91

8 25 19
4

4 25 19

51

Financial Performance.

Tuesday, November 12, 2013

52

26

Turnover (Income from Operations)

Rs Crore

65,049

61,543

2007-08

'2008-09

61,983

'2009-10

76 887
76,887

68,648

'2010-11

2011-12

83,309

2012-13

53

ONGC: Net Profit

30000

` Crore

Net Profit at Rs 20,926 Crore

Crude
(US$/bbl)
C d oil
il price
i realization
li ti

25000
20000
15000
10000
5000
0

Realizable

Discount Realized

FY08

85.54

32.64

52.90

FY09

86.15

38.45

47.70

FY10
FY
10

71 65
71.65

15 71
15.71

55 94
55.94

FY11

89.41

35.64

53.77

FY12

117.40

62.68

54.72

FY13

110.74

62.89

47.85
54

27

ONGC: Dividend

Highest ever Dividend payout of ` 8,342 Crore

FY11: Bonus (1:1) and Share split to ` 5 face value

Dividend
10000
7500

` Crore
6844

7058

7486

Dividend payout ratio (%)

8342

8128

60

With tax

50
Perce
entage

5000
2500

40

Without tax

30
20
10

Payout in the range of 4050%

FY'07

FY'08

FY'09

FY'10

FY'11

55

Dividend amount excludes dividend tax

Contribution to Exchequer
Rs Crore

38287
30020

2007-08

40881

31776
28050

'2008-09

28098

'2009-10

'2010-11

2011-12

2012-13
56

28

Capital Expenditure
Capex: Rs. 1,32,410 Crore in last 5 years
Capex
FY11
p
Rs Crore
21,820

'2008-09

28,276

29,247

29,508

23,559

'2009-10

'2010-11

2011-12

2012-13
57

ONGC: Global rankings

Globally Acclaimed.
Platts Top 250 Energy Companies ranking 2012
2012, Oct.2012
Oct 2012
# 3 E&P Company in the World.
# 22nd Energy Company in the World.
Forbes Global 2000 list for 2012, April2013
# 155th in the Forbes Global 2000 list of
world's biggest companies, based on Sales,
P fit A
Profit,
Assets
t and
d Market
M k t capitalization.
it li ti
Newsweek Green Rankings 2012
# 386th on basis of cross-industry framework
for environmental commitment among global
500 companies.
58

29

Tuesday, November 12, 2013

59

Key Strengths
Highly attractive
Intl portfolio

Strong Support
from the GOI

Maharatna PSE
with
ith 50 yrs off Oil
and Gas
Experience

Integrated
Operations
Large proved
reserves &
geographic
diversification

Strong Financial
Position

Si
Sizeable
bl
Exploration Area

Attractive
A
i C
Cost
Structure
Excellent Oil and
Gas Infrastructure
Tuesday, November 12, 2013

Applied R&D for

E&P activities
60

30

Key Weaknesses
Declining
Production from
the mature fields
Manpower shortage
due to attrition for
high-tech
operations

Subsidy Sharing &

Under recoveries

Limited autonomy
for overseas
ventures

Product Pricing

Procedural
constraints

Tuesday, November 12, 2013

61

Key Opportunities
Incremental
recovery from
producing assets

Market
determined
pricing of Natural
Gas

Integration in
Value Chain

Bringing locked
Reserve to
stream

Domain Expert
&
Outsourcing
Unexplored
Domestic
Acreages

Overseas E&P
Opportunities
Infrastructure
Development

Tuesday, November 12, 2013

62

31

Key Threats
Continued
subsidy sharing
High rate of
Attrition

Highly volatile
crude oil prices

Ageing Assets &

Infrastructure

Security Risk

Constrained
competition

Geopolitics
Exploration risk in
Deepwater &
Frontier Basins
Tuesday, November 12, 2013

63

Strategies
For better tomorrow.

Tuesday, November 12, 2013

64

32

Corporate Plan
Planning is a continuous process.
process
No plan is sacrosanct & complete in itself.
The environment in which we operate changes
continuously
We have to update ourselves continuously to be
competitive for survival and growth.
Hydrocarbon exploration is a risky business, so
does all the business.
Integration of knowledge & use of technology can
reduce the risk of doing business.
Tuesday, November 12, 2013

65

Corporate Plan
Intensive exploration
p
in established basins
Thrust to Deepwater & Frontier basins
Add additional 6 btoe IIH
Strategies
20 MMToe of
equity oil
From overseas
assets
Tuesday, November 12, 2013

Strategies

Corporate
Plan
2000-2020

IOR Programme
in 15 Major
Fields
for recovery
improvement
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33

Strategic Goals
Focus on domestic and international Oil & Gas
exploration and production business opportunities
To double accretion of Initial In-place hydrocarbons from
6 billion tones to 12 billion tones in next 20 Years

Improve Global Recovery Factor from 28% to 40% by 2020

20 MMT per annum Equity Oil & Gas equivalent from

overseas by 2020 through OVL

Accelerated development of Oil & Gas fields

Monetization and development of small and marginal fields

Strategic Goals
Retained dominant position in Indias energy availability
Induction of Technology & Systems for Deep Water

Exploration & Production

Reducing idle Inventory

Gas flaring to be minimized

7`

Dedicated to excellence by leveraging competitive

advantages in R&D and Technology

Upgradation of technology

34

Strategic Goals
Abiding commitment to health, safety and environment to enrich
quality of community life
Emphasis on Health, Safety and Environment HSE

10

Imbibe high standards of business ethics and organizational values

Foster a culture of Trust, openness and mutual concern to make
working a stimulating & challenging experience for our people

Human Resource Development

11

Strategic Goals
Adopted in 2001; Revisited in Nov2011
To double Reserve Accretion
f
from
6 to
t 12 BtOE by
b 2020
To improve Recovery Factor
from 28% to 40% by 2020
To accrete resources of 1 Billion Tonnes
from unconventional sources of energy by
2020

To source 20 MMTPA
equity Oil & Gas by 2018

ONGC #2 E&P Company in the world

35

Perspective Plan - 2030

Aspirations
Fold production growth in E&P
Fold growth in Revenue & EBITDA
growth in Market Capitalization
p
Fold g
Shaping moves to be launched
Fold growth in international E&P
production

71

Perspective Plan - 2030

1. Grow overseas E&P to source 60
mmtoe/year of O+OEG by 2030

Shaping
Moves

2. Secure alliance for new resource

types
3. Unlock 450+ mmtoe from domestic
YTF (yet-to-find) reserves

4. Accelerate 300-400 mmtoe of

(re)-developments
5. Build non-E&P business to 30%
of group revenue

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36

Perspective Plan : 2030

1. Strengthen OVL processes &
t h i l systems
technical
t
2. Continued regulatory
engagement on prices & policy

Supporting
Initiatives

3. Strengthen staffing &

capabilities in focus areas
4. Improve services delivery under
new operating model
5. Align R&D with 2030 technology
priorities
73

Perspective Plan : 2030

1. Sustained production growth 45%

ONGC
2030

2. > 130 mmtoe production in 2030

(50% international)
3. 1,300 mmtoe proved reserves
4. 6.5 GW alternate energy, 9
MMTPA LNG
5. Full downstream value capture
in petrochemicals
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37

THANK YOU
Wish You all a bright &
prosperous career.
Tuesday, November 12, 2013

75

ONGC: The Value Creator

st March 2011, Government of India realized Rs. 14,380
Till 31
The
Govt.
of India promoted ONGC with equity of Rs 342.85
Crore
through
disinvestment
of 26%during
equity 1959
in ONGC.
Crore contributed
over 22 years
to 1981.

An investment of ` 342.85 Crore

Govt. of India:
` 47,143 Crore
value-multiplied
>1400` times
Other shareholders:
14,387 Croreto
` 61,530
Crore
cumulative contribution of
Contribution to exchequer:
Central exchequer:
` 224,305 Crore
` 4,80,933
Crore
Dividend payment:

` 282,577 Crore

State
St t G
Governments:
t ` 58,272
58 272 Crore
C

Plus
Market Cap `of
` 214,957
234,677*
Crore (Value Crore
of Govt. share `
Market Capitalization*
Subsidy to OMCs

` 122,446 Crore

173,989 Crore)

* As on 1.11.2011

ONGC a Wealth Creator

38

ONGC Videsh Ltd. (OVL)

OVL is wholly owned subsidiary of ONGC

International E&P company operating in 15

countries with 33 projects

1965: formed as Hydrocarbons

India Limited
1989 Renamed
1989:
R
d as ONGC
Videsh Limited
Indias biggest MNC
Overseas investment more
than `650 billion

Tuesday, November 12, 2013

77

ONGC Videsh : Global footprint

30 Projects in 15
Countries

14
Exploration

5
Discovered

10
Producing

Venezuel
a
Cuba

Colombia

Brazil

Libya

Nigeria

Russia
2

Myanmar

North Sudan
South Sudan

Vietnam

Iran

1
3

*30th Project is North Sudans 741 km long completed Pipeline

Kazakhstan

1 1

Iraq
Syria
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39

Mission

While the essence of Vision is forward

looking view of what an organisation
wishes to become, a Mission is what
an organisation is & why it exists.
It focuses on questions like:
What is our business
What will it be
What it should be

Tuesday, November 12, 2013

79

Mission Statements: Good & Bad

NASA: To Explore the Universe and Search
for Life and to inspire the Next Generation
of Explorers.

Does a good job of expressing the core

values of the organization. Also conveys
unique qualities about the organization.
Walt Disney : To Make People Happy.
Happy

Too vague and unclear. Need more

descriptive information about what makes
the organization special.
Tuesday, November 12, 2013

80

40

ONGC: O+OEG Production

ONGC accounted for 57% of countrys O+OEG production in FY11

Crude oil: 72% & Natural Gas: 48%

d oill production
d
Crude

d
Naturall gas production
OIL
5%

OIL
10%
Others
18%

ONGC
72%

Others
47%
ONGC
48%

ONGCs production includes its share in PSC JVs

Source: MoP&NG

81

SWOT Analysis
Tuesday, November 12, 2013

82

41

Recognitions
ONGC ranked155th in Forbes Global 2000 list (April,
(April
2010); Topper from India based on Sales, Profits, Assets
and Market capitalization.

PFC Energy 50: 21th among top 50 publicly traded Global

Oil & Gas Companies (Jan, 2011)

Financial Express FE-500 Survey: 2nd position in Indian

companies for 3rd consecutive year.

Tuesday, November 12, 2013

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