It gives me immense pleasure to present, on behalf of the Board of Directors of your
Company, the 25th Annual Report on the business and operations of Oil And Natural Gas
Corporation Ltd. (ONGC) and its Audited Financial Statements for the year ended March 31,
2018, together with the Auditors' Report and Comments (on the Accounts) of Comptroller and
Auditor General (CAG) of India, thereon.
Your Company has steadfastly focussed on organic growth through its exploratory
endeavours and built a healthy hydrocarbon reserve profile to sustain growth in future.
During FY'18, the Company registered Reserve Replacement Ratio (RRR) of 1.48 (with 2P
reserves) and thereby maintaining RRR of more than one in the twelfth consecutive year.
Twelve oil and gas discoveries were made in various basins of the country. With these
discoveries, your Company accreted reserves (2P) of 67.83 million metric tonnes of oil and
oil equivalent gas (MMtoe). This has been possible because of extensive exploration in
known basins as well as frontier plays. Two out of 12 discoveries i.e., Mattur West-1/
(Cauvery onland) and Matar-1 (Cambay onland) have already been monetized and these
prospects are producing since May 31, 2017 and January 30, 2018 respectively.
Domestic crude oil and natural gas production of your Company along with the share in
domestic joint ventures (PSC-JVs) during FY'18 has been 50.04 MMtoe which is about 2.5%
higher than FY'17 production (48.80 MMtoe). On standalone basis crude oil production from
the Company operated fields has been 22.31 Million Metric Tonnes (MMT) against production
of 22.25 MMT during FY'17. Considering the largely mature producing field portfolio, it
highlights the Company's prudent reservoir management and effective technological
interventions in improving the production. Natural gas production during FY'18 has been
23.48 Billion Cubic Metre (BCM) against 22.09 BCM during FY'17; an increase of 6.3 %. This
is a significant achievement as it marks the second consecutive year that the Company has
registered an increase in its domestic natural gas output. Your Company's share in
domestic Joint Ventures' production was 3.13 MMT of crude oil (3.29 MMT in FY'17) and 1.13
BCM of natural gas (1.18 BCM during FY'17). Combining the two total domestic production
has been 25.43 MMT of oil and 24.61 BCM of gas, Production of value added products
increased by 4.7%; from 3.24 MMT in FY'17 to 3.39 MMT during the year, with contribution
from C2-C3 and Hazira plants in Gujarat and Uran in Maharashtra. All ventures of your
Company established for value-chain integration i.e., ONGC Petro additions Ltd (OPaL),
ONGC Mangalore Petrochemicals Ltd (OMPL), ONGC Tripura Power Company Ltd (OTPC), Dahej SEZ
Ltd (DSEZ) and Mangalore SEZ Ltd (MSEZ) are now operational and started generating
Salient highlights with respect to performance of your Company during FY'18 are as
Your Company made 12 Oil and Gas discoveries; 6 in Onshore and 6 in Offshore.
One discovery is in New Exploration and Licencing Policy (NELP) block. Two of these
discoveries have already been put to production.
With these 12 discoveries, your Company accreted 67.83 MMtoe of 2P reserves in
the domestic fields.
RRR (2P) for FY'18 was 1.48; more than One for 12 consecutive years.
Standalone Oil and Oil equivalent gas (O+OEG) output is 45.79 MMtoe; 3.3% higher
Onshore crude oil and natural gas production increased by 1.7% and 8.3%
Offshore gas production registered an increase of 5.7%.
Production of Value Added Products increased by 4.7%.
Revenue from Operations was at Rs 850,041 million against Rs 779,078 million in
Profit After Tax (PAT) was at Rs 199,453 million against Rs 179,000 million
Acquisition of 51.11% stake in Hindustan Petroleum Corporation Limited (HPCL).
With this acquisition, Company's refining capacity increased to 42.198 MMTPA; accounting
18% of country's total refining capacity.
The highest ever deployment of 37 rigs for offshore operations.
The highest in last 27 years drilling of 503 wells (119 exploratory and 384
The overall Cycle Speed and Commercial Speed of exploratory and development
drilling achieved during 2017-18 is the highest ever since inception and stood at 997
meter/ rig month and 1616 meter/ rig month respectively. An increase of more than 9%
achieved in commercial speed compared to previous year.
4 projects worth Rs 68,300 million (approx.) were completed.
Significant development of KG-DWN-98/2 block in Krishna-Godavari (KG) Basin with
investment of about USD 5,076 million (approximately Rs 340,000 million) leading to Peak
oil production from the field to the extent of 78,000 bpd and natural gas @16 Million
Metric Standard Cubic Meter per Day (MMSCMD).
Gas sales increased from 17.06 BCM in FY'17 to 18.58 BCM an increase of 8.9%.
Gas flaring during the year reduced from 2.4% to 1.9%.
Farm-in/ Farm-out (FIFO) agreement signed with GSPC on March 10, 2017 to acquire 80% PI
with operatorship in block KG-OSN-2001/3. Acquisition completed on August 04, 2017 with an
investment of USD 1,195 million.
Commencement of Coal Bed Methane (CBM) field development operations in Bokaro and North
Karanpura blocks in Jharkhand. Operations resumed in Jharia block. Techno-economic
analysis was carried out in Raniganj block.
Revenue from Operations of the ONGC Group was Rs 3,622,462 million and Profit After Tax
was Rs 221,059 million (attributable to owners) during FY'18.
ONGC Videsh Limited (OVL), a wholly owned subsidiary of your Company, registered
highest-ever production of 14.16 MMtoe of O+OEG during the year. It recorded consolidated
Revenue from Operations of Rs 104,176 million and consolidated Profit After Tax of Rs
9,815 million, attributable to owners(Rs 7,573 million in FY'17).
Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of your Company,
recorded highest-ever throughput of 16.31 MMT during FY'18.
MRPL recorded 6.1% increase in Revenue from Operations to Rs 630,836 million (Rs
594,305 million in FY'17) and Profit After Tax of Rs 22,241 million (Rs 36,437 million in
HPCL improved its Gross Refining Margin (GRM) to USD 7.40 per barrel during 2017-18 as
compared to GRM of USD 6.20 per barrel in 2016-17._
Your Company has been ranked number one E&P Company in the world by Platts Top 250
Global Energy Company Rankings - 2017 and 11th among global energy majors based on assets,
revenues, profits and return on invested capital. The leading international business
journal Forbes has ranked the Company 3rd largest in India and 246th worldwide based on
sales, profit, assets and market value.
Details of new discoveries and new resources:
During the year 2017-18, your Company made 12 discoveries (5 new prospects and 7 new
pools) of which 1 was in NELP acreage while other 11 were in Nomination acreages. The
major success during the year was an Oil discovery from well WO-24-3 (WO-24-C) which has
indicated potential of about 29.74 MMtoe of In-Place Hydrocarbon Volume in the discovery
area and the discovery is under further assessment through appraisal exploratory efforts.
Details of these discoveries are as below:
||Prospect / Pool
||Godavari Onland PML
||KG Offshore (SW)
||GS-29 EXT PML
||KG Offshore (SW)
||Godavari Onland PML
||KG Offshore (SW)
||KG Offshore (DW)
||KG Offshore (DW)
||GS-29 EXT PML
||Mumbai Offshore (SW)
||Mumbai High-S PML
Hydrocarbon Resource Re-assessment:
During the year, your Company was associated with Hydrocarbon Resource Re-assessment
studies for all 26 sedimentary basins including Deep-waters. The assessment has since been
completed and the reports were submitted to Director General of Hydrocarbons (DGH) on
October 31, 2017. Results are encouraging and study points toward enhancement of
prognosticated hydrocarbon resources.
National Seismic Program:
Your Company is committed to broaden its exploratory efforts by enhancing the basinal
footprint in India. It is the major stakeholder in National Seismic Program (NSP) with
40,835 Line Kilometer (LKM) target out of the total target of 48,243 LKM. The Company has
made concerted efforts for fast-track of data acquisition and interpretation. The 2D
seismic data acquisition work has already commenced in 10 sectors i.e., Saurashtra,
Rajasthan, Mahanadi, Deccan Synclise, Bhima, Kaladgi, Vindhyan and Himalayan Foreland
areas in October 2016; Ganga, Cuddapah-Krishna Godavari in June, 2017; and South Rewa
Damodar-Chhattisgarh in October 2017. 14,621.16 LKM of 2D data was acquired (besides
ONGC's routine 2D/ 3D survey) during FY'18. In total, the Company has acquired 19,655 LKM
of data. Processing and interpretation of data is under progress and expected to be
completed by 2019-20.
Details of discoveries in NELP blocks
Your Company, as on April 01, 2018, had a total of 74 discoveries to its credit out of
which 59 discoveries (18 in deep water, 21 in shallow water and 20 in onland areas) in 26
NELP blocks were made by the Company while remaining 15 discoveries were made by other
operators in blocks that were later acquired by the Company. Out of the total 74
discoveries, 12 discoveries made by the Company have been relinquished.
Monetization Status as on April 01, 2018:
Your Company has monetized 6 onshore NELP discoveries in four onshore blocks viz.
CB-ONN-2001/1(Nadiad-1), CB-ONN-2002/1 (West Patan-3), CB-ONN-2004/1 (Karannagar-1),
CB-ONN-2004/2 (Vadatal-1, Vadatal-3, Vadatal-5) in Cambay Basin in the State of Gujarat.
Three Offshore discoveries viz. KG-08, KG-15, KG-17 in NELP block KG-OSN-2001/3
(recently acquired by ONGC) in KG Offshore have also been monetized.
Other discoveries are under various stages of exploration / assessment / appraisal /
development for monetization.
Reserve accretion and Reserve Replacement Ratio (RRR)
Accretion of In-Place hydrocarbons and Ultimate Reserves by the Company in its operated
areas and in Non-operated (JV Share) during 2017-18 along with position (as on April 01,
2018) of In-Place hydrocarbons and Ultimate reserves established is as below:
In-Place Hydrocarbon Volumes and Ultimate Reserves of Company operated and JV
||Accretion During the year 2017-18
||Position as on 01.04.2018
||JV-Domestic (ONGC Share)
Reserve Replacement Ratio (RRR) on 2P basis during the year has been 1.48.
The following table gives the details of Ultimate Reserve Accretion (2P - Proved and
Probable) for the last five years in domestic basins as well as from the overseas assets:
||Ultimate Reserves(2P) Accretion (O+OEG)
||ONGC Share in domestic JVs
||Total Domestic (1+2)
||ONGC Videsh Share in Foreign Assets
||Total ONGC Group (3+4)
Oil and Gas production
On standalone basis, in FY'18 the Company's domestic crude oil production level
registered at 22.31 MMt against 22.25 MMt in FY'17. Oil production from onshore assets
increased by 1.7% while offshore registered a decline of 0.3%. Increase in onshore oil
production was mainly due to various initiatives and early monetization of discoveries in
Ankleshwar, Cauvery (Madnam) and Rajahmundry (Keshnapalli West), etc. Onshore Crude Oil
production has registered an increase of 4.1% in last 2 years since 2015-16.
This turnaround in production has been achieved through revival of production from old
and matured fields, production from new fields including NELP blocks, increase in drilling
of development wells, execution of more number of work-over & well stimulation jobs
and induction of new technologies.
Natural gas production (from domestic operated fields) during FY'18 has been 6.3%
higher than the previous year (23.48 BCM against 22.09 BCM during FY'17). The Company's
onshore gas production increased by healthy 8.3% whereas offshore production increased by
5.7%. Onshore gas production increased with all assets recording incremental gas
production; substantial gains were in Ankaleshwar, Assam, Rajahmundry and Karaikal.
Incremental gas production in offshore during 2017-18 was from Daman/C-26, Vasishta
& S1 Development. Your Company's share in oil and gas production from PSC JVs were
3.13 MMT and 1.13 BCM respectively.
||Value (Rs in million)
|Superior Kerosene Oil
Production from Overseas Assets by OVL:
During the year, total Oil and Gas production from overseas assets was 14.16 MMtoe of
O+OEG (oil: 9.35 MMT; Gas 4.81 BCM) in comparision to 12.80 MMtoe during FY'17 an increase
of 10.6% which was mainly due to incremental production from Vankorneft and Sakhalin-1
projects, Russia; BC-10 project, Brazil; additional production from acquisition of 4%
stake in the Lower Zakum Concession project in UAE and from exploratory success in Block
CPO-5, Colombia. Oil and Gas production of ONGC Group, including PSC-JVs and from overseas
assets for FY'18 was 64.21 MMtoe (against 61.62 MMtoe during FY'17) an increase of 4.2%.
Your Company gives utmost importance for induction, up-gradation and application of
technology in various areas of its operations to remain competitive. During the year the
following technology were applied/ upgraded/ inducted:
Gas Chromatograph and Resistivity meter with the upgraded version have been installed
at KDMIPE, Dehradun. Gas chromatograph will facilitate in exploration by carrying out
studies pertaining to metabolites of microbial origin whereas Resistivity Meter will be
helpful in determining the realistic formation evaluation of the reservoir.
Switching over to Techlog Petrophysical Analysis Tools.
Hardware Virtualization Technology has been inducted using Red Hat Enterprise
Linux as well as VMware systems.
Lustre File System Technology has been adopted in the Seismic Processing domain
for the first time.
Infiniband based Networking Technology has been inducted on the recently
installed HPCC in the Seismic Processing domain for the first time.
Production enhancement through stimulation of tight carbonate reservoirs in
wells of western offshore field (implemented by IOGPT), in total 14 wells.
Innovative techniques for Gas Production enhancement in low gas production wells
of Assam/ Tripura/ Mehsana (implemented by IOGPT), in one well of Tripura (RO#8).
Development of chemical formulation for water shut off in gas wells of ONGC
fields and its field execution (executed by IRS, Ahmedabad), in 3 wells during 2017-18.
Exploration in different plays (a) Basement Exploration:
Concerted efforts for Basement Exploration, a frontier exploration play, have been
taken up by the Company as a major initiative. During the year, your Company was pursuing
Basement exploration across most of the operational areas as a frontier exploration play
and drilled 24 wells including 11 wells with primary objective as Basement. Encouraging
results have been obtained in wells GK-28-11, N-24-4, N-24-5, HY-11X in Western Offshore,
wells Padra-114, 116, 117, 119, 120 in Cambay basin, Khoraghat-42 and BJAB in A&AA
basin. Wells BH-76 and SMH-1 drilled in Western Offshore Basin flowed oil from Basement.
Cauvery basin is coming up as an important area for Basement Play with encouraging results
in Mattur West-I and Pundi-8. For the development of discoveries in Basement play, Field
Development Plan (FDP) of Pandanallur field has been approved and FDP implementation will
begin in FY'19.
(b) Exploration in HP-HT and Tight Reservoir:
The Company has prioritized HP-HT/ Tight/ Deeper plays in KG, Cauvery, Western Offshore
Basin and Assam and Arakan Fold belt. These plays are deep, difficult to drill, test and
produce from. During the year 2017-18, onland well PD-3 in Periyakudi field, Cauvery Basin
became the first HP-HT well to be put on production. Another well BTS-3 in KG onland Basin
has been successfully drilled and tested for gas in commercial quantities. The development
drilling will be taken up in 2018-19. In addition, the Company after acquiring the
operatorship of NELP block KG-ONN-2003/1 has submitted the FDP of two discoveries made in
the block. Further, the Company acquired 80% stake and operatorship from Gujarat State
Petroleum Corporation Limited (GSPCL) in the block KG-OSN-2001/3. The field is already on
production and FDP is under preparation for six more monetized discoveries in the Block.
Unconventional and Alternate sources of energy
Your Company is well focused on exploration and development of unconventional like -
Shale (CBM), High Pressure/ High Temperature (HP/HT), Fractured
Basement plays, etc. and alternate sources of energy. Structured actions have been
initiated to increase the share of unconventional/ alternate energy in the production
(a) Shale Gas/ Oil Exploration:
The Company has firmed up a programme to explore for shale gas/ oil in 50 Nominated ML
blocks (28 in Cambay, 10 in KG, 9 in Cauvery and 3 in A&AA basins). 23 Assessment
wells have been drilled so far and prospects have been established in Cambay and KG basin.
Drilling of more wells (both exclusive and dual objective) are planned in North Cambay and
KG Basins in future, for better understanding and assessment. The areas planned to be
covered include Nawagam, Kalol, Linch in north Cambay Basin; Mandapeta and Mahadevapatnam
etc. in Krishna Godavari Basin.
(b) Coal Bed Methane (CBM):
Your Company is operating in four CBM Blocks i.e. Jharia, Bokaro and North Karanpura in
Jharkhand and Raniganj in West Bengal. FDP for Bokaro and North Karanpura Blocks have been
approved. Details regarding various activities undertaken in these blocks are as under:
1. Bokaro Block: Drilling of 141 development wells has been considered in
the FDP of Bokaro Block. Five wells have been drilled successfully and drilling of sixth
well is in progress. 10 more well sites are earmarked and total 30 wells are planned to be
drilled during 2018-19.
2. North Karanpura Block: Total 68 development wells have been considered in
the FDP of North Karanpura Block. 30 wells are planned to be drilled during 2018-19.
3. Jharia Block: After receiving permission from DGMS, operations have been
resumed Since March'18 by hydro-fracturing and testing of already drilled well JH#14.
Around 10,000 - 15,000 SCMD of incidental Gas is being sold and the sales is planned to be
ramped up with production in this Block. Revised Feasibility Report has been prepared
after discounting 12 wells in line with co-development plan which is under vetting by
independent Financial Institution and consent of JV partner Coal India Limited is being
obtained on the Feasibility report. Agreement has been entered into with gas off-taker at
a price of 6.12 USD/MMBTU on GCV basis for 10,000 SCMD.
4. Raniganj Block: Techno-economic analysis for monetization of the block
has been carried out and efforts are underway for economizing production cost.
(c) Gas Hydrates
Your Company has been an active participant in gas hydrates exploratory research in the
country under National Gas Hydrate Program (NGHP) of the Government of India (GoI) since
1997. The results of NGHP-02 are very encouraging and two gas hydrate reservoirs have been
discovered in KG deep offshore. For a deep focus, your Company has established a Gas
Hydrate Research & Technology Centre (GHRTC) at Panvel, Maharashtra for production and
exploitation of gas hydrates. Further, the Company is looking forward to NGHP
Expedition-03 to test the technology and assess the production technology for Gas Hydrates
exploitation in Indian offshore.
(d) Alternate Sources of Energy
Hazira Plant has installed 10 MWp Solar Power Plant in line with its commitment towards
generation of Renewable Energy and is in operation. Dahej Plant has also taken initiatives
for implementing 500 KW roof top solar power project.
Earlier, as a step towards green energy by harnessing natural resources with latest
technologies, Hazira Plant has commissioned a 40 KWp Solar Power Plant in Kendriya
Vidyalaya in ONGC township and Uran Plant had installed a 125 KWp Solar Power Plant at
roof top of reservoir.
Oil & Gas Projects
(a) Project Competed during FY'18
During the year 2017-18, following 04 major projects (2 development and 2
Infrastructure) have been completed:
||Approved cost (Rs in million)
||Envisaged Oil Gain (MMT)
||Envisaged Gas Gain (BCM)
||Construction of 3 ETP at Rajahmundry
||Sonamura GGS and Pipeline Project, Tripura
||Development of Western Periphery of MHS
||Integrated Development of Vasistha & S-1 Fields
(b) Fast track monetization of Marginal Fields
Your Company is developing new and marginal fields on fast track to augment the oil and
gas production. It is pertinent to mention that many marginal fields in western offshore
which were not techno-economically viable for exploitation earlier on standalone basis are
now being developed with cluster concept. Some of the marginal fields were put on
production in the last few years include NBP (D-1) with its additional development, Vasai
West, Vasai East with its additional development, North Tapti, BHE, SB-14, WO-16,
Cluster-7 fields, B-46 Cluster fields, C-24 & C-26 Cluster fields, B-22 Cluster fields
and B-193 Cluster fields etc. Production from Integrated Development of Mukta, Bassein and
Panna Formations in Bassein field and Daman Development projects has commenced and would
contribute further with drilling of more wells under these projects. Also, production has
commenced from B127 cluster from May 2018.
Further, development of NW B-173A field, 4th Phase Development of NBP field,
Development of R-Series fields including revival of R-12 (Ratna), Development of B-147
field & Development of BSE-11 Block are under various stages of implementation.
(c) Development of fields in Eastern Offshore
Major thrust is being given to develop discoveries made in the Krishna Godavari basin
which is a promising basin with various discoveries like G1/GS-15, Vasishtha, S1, GS-29
and KG-DWN-98/2, etc.
Your Company has been vigorously pursuing to develop these fields as early as possible.
The production from shallow water field GS-15 and deep water field G-1 has already
commenced. Project "Integrated Development of Vasistha & S-1 Fields" has
been completed in March 2018 and is aimed to contribute 14.61 BCM of gas by year 2026-27.
Further, to boost up oil and gas production from Eastern Offshore, one mega project for
development of cluster 2 fields of NELP Block KG-DWN-98/2" is under implementation
and envisages production of 25.87 MMT of oil and 45.49 BCM of gas by 2034-35.
Development of other discoveries in KG offshore such as KG-DWN-98/2 (Cluster-I and III
fields), GS-49 and GS-29, G-4-6 fields, shallow water NELP block KG-OSN-2004/1, etc. are
under various stages of appraisal/ approval for development.
1. Financial Highlights:
Your Company has earned Profit After Tax (PAT) of Rs 199,453 million, up by 11.4% over
FY'17 (Rs 179,000 million) and registered Revenue from Operations of Rs 850,041 million,
up by 9.10% over FY'17 (Rs 779,078 million).
Highlights Standalone Financial Statements
|Revenue from Operations
||: Rs 850,041 million
|Profit After Tax (PAT)
||: Rs 199,453 million
|Contribution to Exchequer
||: Rs 376,088 million
|Return on Capital Employed
||: Rs 15.54
|Book Value/ Share
||: Rs 151
||Rs in million
|Revenue from operations
|Profit Before Interest
|Depreciation & Tax (PBIDT)
|Profit Before Tax (PBT)
|Profit After Tax (PAT)
|Transfer to General Reserves
Your Company has paid interim dividend of Rs 5.25 per share of Rs 5 each (105%) in two
times (Rs 3.00 and Rs 2.25).
The Board of Directors has recommended a final dividend of Rs 1.35 per share (27%),
making the aggregate dividend at Rs 6.60 per share (132%) for FY'18. The total dividend
for the year aggregates to Rs 84,699 million, besides Rs 17,277 million applicable
Dividend Distribution Tax (DDT) which is 51.13 % of PAT (inclusive of DDT). The Dividend
Distribution policy as formulated by the Company, may be accessed at the web link https://www.ongcindia.com/wps/wcm/connect/en/investors/
3. Management Discussion and Analysis Report
As per the terms of regulations 34(2)(e) of the SEBI Listing Regulations, the
Management Discussion and Analysis Report (MDAR) as appended, forms part of this Annual
4. Financial Accounting
The Financial Statements have been prepared in compliance with Indian Accounting
Standards (Ind-AS) issued by the Institute of Chartered Accountants of India (ICAI)
effective from April 01, 2016 and applicable provisions of the Companies Act, 2013.
5. 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, investment made or guarantee or security given by
the Company to subsidiaries and associates is not reported.
6. Detail relating to deposits covered under Chapter V of the Act:
||Amount (in Rs )
|Deposits accepted during the years
|Deposits remaining unpaid or unclaimed as at the end of the year
|Default in repayment of deposit or payment of interest thereon during the year
7. Related Party Transaction
Particulars of contracts or arrangements with related parties as referred to in Section
188(1) of the Companies Act, 2013, is provided in specified Form AOC-2, and placed at Annexure-A.
Your Company has acquired 51.11% shares held by the President of India (778,845,375
equity shares of face value
Rs 10 each) in Hindustan Petroleum Corporation Limited (HPCL) on January 31, 2018, for
a total cash consideration of Rs 369,150 million. Upon the acquisition, HPCL has become a
subsidiary of your Company. Upon the acquisition of HPCL, Petronet MHB Limited has been
reclassified from joint venture company to a subsidiary company as total shareholding of
your Company increased to 65.44% i.e. 32.72% shares each by the Company and HPCL.
Further, the subsidiaries of HPCL, viz. Prize Petroleum Company Limited, HPCL Bio Fuel
Limited, HPCL Rajasthan Refinery Limited and HPCL Middle East FZCO have become indirect
subsidiaries of your Company.
The details of Subsidiaries are as under:
(I) ONGC Videsh Limited (OVL)
OVL, the wholly-owned subsidiary of your Company for E&P activities outside India,
has participation in 41 oil and gas projects in 20 Countries, viz. Azerbaijan (2
projects), Bangladesh (2 Projects), Brazil (2 projects), Colombia (7 projects), Iran (1
project), Iraq (1 project), Israel (1 project), Kazakhstan (1 project), Libya (1 project),
Mozambique (1 Project), Myanmar (6 projects), Namibia (1 project), New Zealand (1
Project), Russia (3 projects), South Sudan (2 projects), Sudan (2 projects), Syria (2
projects), UAE (1 project), Venezuela (2 projects) and Vietnam (2 projects). Out of 41
projects, OVL is Operator in 14 projects; Joint Operator in 7 projects and remaining 20
are non-operated projects. During the year, OVL set its foot-prints in Israel, Namibia and
UAE. OVL adopts a balanced portfolio approach and has a combination of 15 producing, 4
discovered/ under development, 18 exploration projects and 4 pipeline projects.
During FY'18, OVL has made the consolidated Profit After Tax of Rs 9,815 million
attributable to owners as compared to the consolidated Profit After Tax of Rs 7,573
million attributable to owners during FY'17. Increase in profit is mainly on account of
higher production, higher crude oil prices and lower impairment provisions. a.
Significant Acquisitions and Alliances of OVL during FY'18:
ONGC Videsh Vankorneft Pte. Ltd (OVVL), a wholly-owned indirect subsidiary of OVL, has
completed acquisition of 30% Participating Interest (PI) in Namibia Petroleum Exploration
License 0037 for Blocks 2112A, 2012B and 2113B on October 3, 2017 from Tullow Namibia
Limited (Tullow), a wholly owned subsidiary of Tullow Oil plc. Tullow with its remaining
35% PI shall continue to be the operator of the License.
OVL led Indian Consortium including Indian Oil Corporation Limited (IOCL) and Bharat
Petro Resources Limited (BPRL) acquired 10% PI in Lower Zakum Concession, Offshore Abu
Dhabi. The production from the field was around 419,000 bopd and the share of production
to Indian Consortium was around 42,000 bopd and OVL share was around 16,800 bopd.
An Exploration Block with License 412/"32" in Israel has been awarded by
Petroleum Commissioner to Indian Consortium on March 27, 2018 with exploration duration of
3 years. OVL is the operator and each Partner of the Indian Consortium, i.e. OVL, BPRL,
IOCL and OIL hold 25% Participating Interest (PI) each in the License.
b. During FY'18, OVL has signed the following Memorandum of Understanding (MoUs):
i. MoU with TPAO, Turkey:
OVL has signed an MoU with TPAO on July 12, 2017 to evaluate Oil and Gas opportunities
in upstream as well as any other mutually identified and agreed area.
ii. MOU with PEMEX, Mexico: Earlier a MoU was signed between PEMEX Exploration and
Production and OVL on September 25, 2014. Term of this MoU has been extended till
September 24, 2019, by an amendment to the original MoU. The MoU aims at cooperation in
the upstream sector in Mexico, India and third countries, and Cooperation in fields of
technology, human resource, research and development.
iii. MoU with GeoPark, Latin America:
OVL_and_GeoPark Ltd., a Latin America focused E&P Company, entered into an MoU on
16th February, 2018 for Cooperation in upstream sector in Latin America. The MoU envisages
a long term strategic partnership between the companies to jointly acquire, invest in, and
create value from upstream oil and gas projects with the objective of building a
large-scale, economically-profitable and risk-balanced portfolio of assets and operations
across Latin America.
c. During FY'18, the following significant events occurred in the area of Exploration
i. CPO-5, Colombia: -
The well Mariposa-1 was drilled to a total depth of 11,556 feet (MD) and log analysis
indicated the presence of approximately 121 feet of oil saturated net pay in the Lower
Sands Unit. The well is currently under testing and activated on self. The discovery has
opened up new play in CPO-5 block and more wells are likely to be drilled for the play.
ii. Sakhalin-1, Russia: - 30 years extension to the Production Sharing Agreement
(PSA) of Sakhalin-1 block has been granted from 2021 to 2051. Sakhalin-1 completed World's
Longest Extended Reach Drilling (ERD) well #O5RD with measured depth of 15,000 metre on
June 30, 2017.
iii. ACG, Azerbaijan: - Consortium partners of the giant ACG Fields in Azerbaijan
have entered into an agreement with Azerbaijan Government and State Oil Company of the
Azerbaijan Republic (SOCAR) for extension of the Production Sharing Agreement (PSA)
extension for Azeri-Chirag-Deep water portion of Guneshli (ACG) oil fields until December
iv. Rovuma Area-1 Project, Mozambique: -
Government of Mozambique has accorded approval for the Development Plan for
Golfinho-Atum natural gas field in the Area 1 block located in the Rovuma Offshore Basin
of Mozambique. The plan outlines the integrated development of the Golfinho-Atum field
through an initial two-train onshore liquefaction plant with a total processing capacity
of 12.88 MMTPA.
Direct Subsidiaries and Joint Ventures of OVL:
1. ONGC Nile Ganga B.V. (ONGBV): ONGBV is engaged in E&P activities
directly or through its subsidiaries/ JVs in Sudan, South Sudan, Syria, Venezuela, Brazil
and Myanmar. ONGBV holds 25% PI in Greater Nile Oil Project (GNOP), Sudan with its share
of oil production of about 0.282 MMT during FY'18. ONGBV also holds 25% PI in Greater
Pioneer Operating Company (GPOC), South
Sudan. Due to adverse geo-political conditions, ONGC Videsh could not produce in GPOC,
South Sudan during FY'18. ONGBV holds 16.66% to 18.75% PI in four Production Sharing
Contracts in Al Furat Project (AFPC), Syria. Due to force majeure conditions in Syria,
there was no production in AFPC project during FY'18. ONGBV holds 40% PI in San Cristobal
Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal)
BV with its share of O+OEG production of about 0.389 MMtoe during FY'18. ONGBV holds 27%
PI in BC-10 Project in Brazil through its wholly owned subsidiary ONGC Campos Ltd. with
its share of oil and oil equivalent gas production of about 0.704 MMtoe during FY'18. _ It
also holds 25% PI in Block BM-SEAL-4 located in deep-water offshore, Brazil through its
wholly owned subsidiary ONGC Campos Ltda. ONGBV also holds 8.347% PI in South East Asia
Gas Pipeline Co. Ltd., (SEAGP) for onshore Pipeline project, Myanmar through its wholly
owned subsidiary ONGC Caspian E&P B.V.
San Cristobal Project: Consequent to the signing of Agreements on Pending Payments
and Financing of San Cristobal project for remediation plan between PdVSA and ONGC Nile
Ganga (San Cristobal) BV on November 04, 2016, PdVSA has paid USD 88.42 million till March
2018 to liquidate partly the outstanding dividend due from the JV Petrolera IndoVenezolana
2. ONGC Narmada Limited (ONL): ONL has been retained for acquisition of
future E&P projects in Nigeria.
3. ONGC Amazon Alaknanda Limited (OAAL):
OAAL, a wholly-owned subsidiary of OVL, holds stake in E&P projects in Colombia,
through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with
Sinopec of China. During FY' 18, ONGC Videsh's share of oil and oil equivalent gas
production in MECL was about 0.487 MMtoe.
4. Imperial Energy Limited (IEL): IEL, a wholly-owned subsidiary of OVL
incorporated in Cyprus, has its main activities in the Tomsk region of Western Siberia,
Russia. _ During FY'18, Imperial Energy's oil and oil equivalent gas production was about
5. Carabobo One AB: Carabobo One AB, is incorporated in Sweden, indirectly
holds 11% PI in Carabobo-1 Project, Venezuela. During FY'18, ONGC Videsh's share of oil
and oil equivalent gas production was about 0.169 MMtoe.
6. ONGC BTC Limited: ONGC BTC Limited holds 2.36% interest in the
Baku-TbilisiCeyhan Pipeline ("BTC") which owns and operates 1,768 km oil
pipeline running through Azerbaijan, Georgia and Turkey. The pipeline mainly carry crude
from the ACG fields from Azerbaijan to the Mediterranean Sea.
7. Beas Rovuma Energy Mozambique Limited (BREML): BREML was incorporated in
British Virgin Islands (BVI) and has been migrated by continuation to Mauritius w.e.f.
January 23, 2018. OVL holds 60% shares in BREML and the balance 40% are held by OIL, BREML
holds 10% PI in Rovuma Area 1, Mozambique.
8. ONGC Videsh Atlantic Inc. (OVAI): OVL has setup a Geological and
Geophysical (G&G) Centre at Houston, USA through its wholly owned subsidiary OVAI. The
Centre caters to requirement of G&G studies for potential new acquisitions of ONGC
Videsh including G&G studies of its existing portfolio of projects.
9. ONGC Videsh Rovuma Limited (OVRL): OVRL a wholly owned subsidiary of OVL
was incorporated in Mauritius for re-structuring of 10% PI in Rovuma Area 1, Mozambique.
10. ONGC Videsh Singapore Pte. Ltd. (OVSL): OVSL was incorporated in Singapore for
acquisition of shares in Vankorneft, Russia, through its subsidiary ONGC Videsh Vankorneft
Pte. Limited (OVVL). OVVL holds 26% shares in Vankorneft, Russia and its share of
production during FY'18 was 6.191 MMtoe.
11. Indus East Mediterranean Exploration Ltd. (IEMEL): IEMEL, a wholly owned
subsidiary of OVL was incorporated in Israel on February 27, 2018 and engaged in E&P
activities related to Block-32, Offshore Israel.
12. ONGC Mittal Energy Limited (OMEL): OVL along with Mittal Investments Sarl (MIS)
promoted OMEL, a joint venture company incorporated in Cyprus. OVL and MIS together hold
98% equity shares of OMEL in the ratio of 49.98:48.02 remaining 2% shares are held by SBI
Capital Markets Ltd.
13. SUDD Petroleum Operating Company (SPOC): SPOC, a Joint Operating Company
incorporated in South Sudan to operate in Block 5A, South Sudan in which OVL, Petronas
& Nilepet of South Sudan holds 24.125%, 67.875% & 8% PI respectively. Block 5A is
located in the prolific Muglad basin and spread over an area of about 20,917 Square Km.
14. Mozambique LNG1 Company Pte. Ltd.:
Mozambique LNG1 Company Pte. Ltd. has been incorporated at Singapore by Rovuma Area-1
Mozambique consortium to oversee marketing and shipping activities of LNG from first 2
trains of Golfinho-Atum field. OVL holds 16% interest in the Company which is in
proportion to its interest in Rovuma Area-1 Project, Mozambique.
15. Falcon Oil & Gas B.V. (FOGBV): FOGBV was incorporated in Netherlands on
February 06, 2018. OVL's wholly owned subsidiary ONGBV holds 40% shares in FOGBV and IOC
and BPRL holds 30% shares each though their respective subsidiaries. The transaction
documents were executed with ADNOC, Supreme Petroleum Council (SPC) and the Operating
Company (OPCO) on February 10, 2018 at Abu Dhabi for acquiring 10% PI in Lower Zakum
Concession for a period of 40 years with effect from March 09, 2018.
(II) M angalore Refinery and Petrochemicals
MRPL was incorporated on March 07, 1988. Your Company continues to hold 71.63 % equity
stake in MRPL, a Schedule A' Mini Ratna and listed entity, which is a single
location 15 MMTPA Refinery on the West coast. Further, HPCL, another subsidiary of your
Company, also continues to hold 16.96% in MRPL.
Performance Highlights FY' 18
MRPL achieved the highest-ever thru'put of 16.31 MMT in FY'18 against 16.27 MMT in
FY'17 and recorded the Revenue from Operations of Rs 630,836 million and Profit After Tax
of Rs 22,241 million. The Board of MRPL has recommended a dividend of Rs 3/- per share
(30% of the paid up capital) for the approval of shareholders in the general meeting.
Marketing & Retail Operations
MRPL continues to maintain major share of the direct sales segment of petroleum
products market in Karnataka and adjoining states and maintained leadership position in
the marketing zone for direct sales of products such as Bitumen, Fuel Oil, Diesel,
Sulphur, Petcoke, Xylol (Xylenes) etc. MRPL has commenced diesel supplies directly to new
Railway Consumer Depots during the period and has also expanded its retail network. The
total domestic sales volume of all products during the FY'18 has been 1786 TMT. MRPL
continues to enhance its market share for Polypropylene with introduction of new and niche
grades and also has made inroads in new geographical areas.
MRPL has taken up the enhancement of the Refinery capacity to 18/25 MMTPA with low cost
revamping. The Government of Karnataka has allotted 1050 acres of land for this purpose.
Necessary steps are being taken to ensure compliance with BS- VI fuel quality standards by
the year 2020.
ONGC Mangalore Petrochemicals Limited (OMPL)
OMPL has been promoted by the Company for setting up Aromatic Complex with an annual
capacity 914 KTPA of Para-xylene and 283 KTPA of Benzene in Mangalore Special Economic
Zone as value chain integration project. The project, established at the total outlay of
Rs 69,110 million, commenced commercial operations on October 01, 2014. OMPL is
consistently increasing its capacity utilization with average capacity utilization of
around 88% in FY'18.
OMPL is a subsidiary of your Company as it holds 48.998% shares directly and remaining
51.002% shares are held by MRPL.
(III) Hindustan Petroleum Corporation Limited (HPCL)
Your Company acquired 51.11% equity shares of HPCL from GoI on January 31, 2018 and
thereby HPCL became a subsidiary.
HPCL owns and operates 2 major refineries producing a wide variety of petroleum fuels
and specialties, one in_ Mumbai_ (West Coast) of_ 7.5_ Million Metric Tonnes Per Annum
(MMTPA) capacity and the other in_ Visakhapatnam, (East Coast) with a capacity
of_8.3_MMTPA. HPCL also owns and operates the largest Lube Refinery in the country
producing Lube Base Oils of international standards, with a capacity of 428 TMT.
This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production.
HPCL in collaboration with Mittal Energy Investments Pte. Ltd. is operating a 9 MMTPA
capacity Refinery at Bathinda with 49% equity and also holds an equity of 16.96% in the
MRPL having refining capacity of 15 MMTPA.
HPCL has the second largest share of product pipelines in India with a pipeline network
of more than 3370 kms for transportation of petroleum products and a vast marketing
network consisting of 21 Zonal offices in major cities and 128 Regional Offices
facilitated by a Supply and Distribution infrastructure comprising Terminals, Pipeline
networks, Aviation Service Stations, LPG Bottling Plants, Inland Relay Depots & Retail
Outlets, Lube and LPG Distributorships.
HPCL has recorded Sales Revenue of Rs 2,432,267 million and the Profit After Tax is Rs
63,571 million for the year 2017-18.
Subsidiaries of HPCL i) Prize Petroleum Company Limited (PPCL)
PPCL is a wholly owned subsidiary of HPCL. PPCL is the upstream arm of HPCL and is in
the business of Exploration and Production (E&P) of Hydrocarbons as well as providing
services for management of E&P blocks. During 2017-18, PPCL achieved total production
of 33,752 barrels of crude oil from domestic oil field at Hirapur (Gujarat). PPCL has a
wholly owned subsidiary namely Prize Petroleum International Pte Ltd. (PPIPL),
incorporated in Singapore. PPIPL holds 11.25% PI and 9.75% PI in two E&P blocks - T/L1
and T/18P respectively in Australia. PPIPL has achieved its share of production of 459,269
BOE (Barrels of Oil Equivalent) from Yolla producing field (T/L1). During 2017-18, PPCL
has achieved total revenue of Rs 1,063 million on consolidated basis as compared to Rs 865
million achieved during previous year.
ii) HPCL Bio Fuel Limited
HPCL Biofuels Ltd (HBL) is a wholly owned subsidiary of HPCL as a backward integration
initiative to foray into manufacturing of ethanol for blending in petrol. HBL presently
has two integrated Sugar-Ethanol-Cogeneration plants at Sugauli and Lauriya in the state
of Bihar. During 2017-18, HBL has recorded total revenue of Rs 1,365 million and cane
crushing of 699 TMT with average sugar recovery of 9.04%. HBL also achieved sugar
production of 63,870 MT, Ethanol production of 7,025 KL and power production of 79,085 MWh
iii) HPCL Rajasthan Refinery Limited (HRRL)
HRRL is a joint venture of the HPCL and the Government of Rajasthan with equity
participation of 74% and 26% respectively. HRRL is setting up a 9 MMTPA capacity
Greenfield refinery cum petrochemical complex in the state of Rajasthan. HPCL and the
Government of Rajasthan entered into a revised Memorandum of Understanding on April 18,
2017 for the construction of the said Refinery with revised parameters. The revised Joint
Venture Agreement was signed on August 17, 2017. The work commencement ceremony of the 9
MMTPA Rajasthan Refinery was carried out by the Honourable Prime Minister of India on
January 16, 2018. The pre-project activities for the project are in advanced stage. The
cost of project is estimated to be Rs 431,290 million.
(iv) HPCL Middle East FZCO
HPCL Middle East FZCO, a 100% Subsidiary of HPCL was incorporated on February 11, 2018
as a free zone company under Dubai Airport Free Zone and Establishment Card was issued on
March 22, 2018 for the company. HPCL Middle East FZCO was established for trading of
lubricants and greases, petrochemicals and refined petroleum products. The subsidiary will
serve the select markets of Middle East and Africa.
(IV) Petronet MHB Limited (PMHBL)
Upon acquisition of controlling interest in the capital of HPCL on January 31, 2018,
PMHBL has become a subsidiary of your Company. Both the Company and HPCL hold 65.44% (each
32.72%) in the capital of PMHBL. Balance 34.56 % of equity being held by banks/ Financial
PMHBL owns and operates a multiproduct pipeline to transport MRPL's products to
the hinterland of Karnataka. In FY'18 PMHBL pipeline has achieved a throughput of 3.5 MMT
against total throughput of 3.43 MMT last year and declaring a maiden interim dividend of
9% in 2017-18. PMHBL has recorded total Revenue of Rs 1,711 million as compared to Rs
1,702 million in the previous year. Further, the Profit After Tax of PMHBL was Rs 835
million in financial year 2017-18 as compared to Rs 810 million in the previous financial
9. Annual Report of Subsidiaries and Consolidated Financial Statement
The Consolidated Financial Statements for the year ended 31st March, 2018 of your
Company has been prepared in accordance with Section 134 of the Companies Act, 2013, Ind
AS 103 "Business Combinations" as per Pooling of Interest Method, Ind AS 110
"Consolidated Financial Statements" and Ind AS 28 "Investments in
Associates and Joint Ventures". The audited Consolidated Financial Statements for the
year ended 31st March, 2018 form part of this Annual Report.
Full Annual Reports of subsidiaries of your Company will be made available to any
shareholder upon request, which is also available on Company's website. Further, Annual
Reports of OVL, MRPL, HPCL and PMHBL are also available on websites www.ongcvidesh.com;
www.mrpl.co.in; www.hindustanpetroleum.com and www.petronetmhbl.com respectively.
10. Associates including Joint Ventures a) Pawan Hans Limited (PHL)
PHL, an Associates of the Company (49%) was formed with the Government. of India (51%),
acting through Ministry of Civil Aviation inter alia for catering to the logistic
requirements of oil fields located at remote/ far-flung areas. PHL is a Mini Ratna - I
Category PSU and having 43 helicopters including medi- chopper.
The Government of India is taking action for identifying a strategic acquirer for its
entire holding and hence, your Company has also decided to exit PHL along with the
b) Petronet LNG Limited (PLL)
PLL, a JV of the Company was incorporated on April 02, 1998 with 12.5% equity holding
along with identical stakes held by other Oil PSU co-promoters viz., IOCL, GAIL and BPCL,
is a listed Company. PLL, one of the fastest growing world-class companies in the Indian
energy sector, has set up the country's first LNG receiving and regasification terminal at
Dahej, Gujarat, and another terminal at Kochi, Kerala. While the Dahej terminal has a
nominal capacity of 15 MMTPA, the Kochi terminal has a capacity of 5 MMTPA.
Revenue from Operations of PLL during FY'18 was Rs 305,986 million and Profit After Tax
was Rs 20,778 million.
c) Dahej SEZ Limited (DSL)
DSL a 50:50 JV of the Company along with Gujarat Industrial Development Corporation was
formed for establishing a multi-product SEZ at Dahej. Your Company has set up C2-C3
Extraction Plant as a value-chain integration project, which serve as feeder unit to ONGC
Petro- additions Limited.
Revenue from Operations of DSL during FY'18 was Rs 541 million, Profit After Tax was Rs
d) ONGC Tripura Power Company Limited (OTPC)
OTPC was incorporated on September 27, 2004 as a joint venture of your Company (50%)
along with the Government. of Tripura (0.5%) and IL&FS Energy Development Co. Ltd.
(IEDCL - an IL&FS subsidiary) (26%); the balance 23.5% has been tied up with India
Infrastructure Fund II acting through IDFC alternatives Limited. OTPC has set up a
726.6 MW gas based Combined Cycle Power Plant at Palatana, Tripura at a project cost of Rs
40,470 million. The basic objective of the project is to monetize idle gas assets of the
Company in landlocked Tripura State and to boost exploratory efforts in the region.
Power evacuation for both the units is done through 663 KM long 400 KV double circuit
transmission network by North-East Transmission Company Limited (NETC), a joint venture of
Power Grid Corporation, OTPC and Governments of the North-Eastern states.
OTPC's both power units of 363.3 MW each are fully operational in two phases.
Revenue from Operations of OTPC during FY'18 was Rs 12,516 million and Profit After Tax
was Rs 1,251 million.
e) Mangalore SEZ Limited (MSEZL)
MSEZ, a Special Economic Zone promoted by the Company with an equity stake of 26% along
with KIADB (23%), IL&FS (50%), OMPL (0.96%) and KCCI (0.04%). MSEZ, was set up as zone
for development of necessary infrastructure to facilitate and locate industrial
establishment including OMPL. MSEZ is operational since April 01, 2015. With investments
exceeding USD 2 billion and exports of over USD 400 million worth of goods from its units,
MSEZ has emerged as one of the most vibrant operational multi-product SEZs in India.
f) ONGC Petro additions Limited (OPaL)
OPaL, a JV formed by the Company (26%) along with GAIL (8.85%) and with a nominal
investment by GSPC was incorporated on November 15, 2006. The balance equity is to be tied
up with Strategic Partners/ FIs or allotted through IPO. Presently the equity gap is
bridged through quasi equity instruments Compulsorily Convertible Debentures and
Short Term Loan. OPaL is a mega petrochemical project established in Dahej SEZ for
utilizing in-house production of C2-C3 and Naphtha from the nearby unit of the Company.
The project cost of OPaL at completion was Rs 308,260 million. OPaL has started its
production in 2016-17 and has been ramping up its production in phases. OPaL has
established itself in domestic/ export market with sale of prime grade products.
g) ONGC TERI Biotech Limited (OTBL)
OTBL, a JV formed by the Company (49.98%) along with The Energy Research Institute
(48.02%) and the balance 2% shares are held by individuals.
OTBL has developed various Biotechnical Solutions to oil and gas Industries through
collaborative researches involving the Company and TERI. These technology include
Bioremediation, Paraffin Degrading Bacteria_(PDB), Wax Deposition Prevention_(WDP) and
Microbial Enhanced Oil Recovery (MeOR) which are being provided to oil and Gas industries
both in India and abroad. Revenue from Operations of OTBL during FY'18 was Rs 178 million
and Profit After Tax was Rs 81 million.
11. Other Business Initiatives, Important MoUs/ Agreements
a. Re-assessment of Hydrocarbon Resources, KDMIPE, Dehradun
Your Company has completed the prestigious project on "Re-assessment of
hydrocarbon resources of sedimentary basins and deep water areas of India" in
association with Oil India Ltd. (OIL) and DGH before scheduled time. The feasibility
reports were reviewed by International Experts, representatives of DGH and OIL and were
submitted to DGH on January 31, 2017. The prognosticated hydrocarbon resources estimation
of the country for 26 sedimentary basins and offshore areas has shown a significant
increase on this reassessment.
b. Gas Supply at Ceiling price from Deep water fields: Under the second tender for
S1-Vashishta gas, for the first time, 45,000 SCMD of deep water gas to one consumer was
tied up at ceiling Price.
c. Modified Evacuation Plan for KG DWN 98/2 Gas: A changed methodology has been
finalized to bring part of the upcoming KG DWN 98/2 gas to another landfall point i.e.
Mallawaram in view of connectivity to EWPL (East west pipeline) to enable this gas to
reach PAN India customers and also utilization of Onshore Gas Terminal at Mallawaram,
acquired from GSPC.
d. FIFO Agreement with GSPC: Gas Sale &
Purchase Agreement (GSPA) was executed on June 01, 2017 between GSPC (as the gas
producer) and GSPC (as the buyer) in line with the Farm in Farm out agreement (FIFO) with
respect to contract area identified as block KG-OSN-2001/3. Subsequently, the GSA was
novated to the Company by signing of the Novation Agreement on August 04, 2017.
e. HFHSD & LSHS
At Hazira, a NGL fractionation unit has been commissioned which will produce new
products such as HFHSD (High Flash High Speed Diesel) and LSHS (Low Sulphur Heavy Stock).
At Tatipaka mini refinery also HFHSD production has started and sample has been tested at
HPCL, Vizag. Sale arrangement for HFHSD ex-Hazira and Tatipaka and LSHS ex-Hazira has been
finalized with HPCL. HPCL was awarded LSHS ex Tatipaka supply extension on
September 05, 2017. f. C2-C3
NegotiationsonC2-C3pricingmechanismforproduct supply from Uran with RIL resulted in
product price improvement. New pricing methodology for C2-C3 ex Uran supply to RIL
was signed on November 28, 2017, effective from April 01, 2017 till the validity of
contract i.e. March 31, 2020.
g. Joint Industry Project (JIP): A contract had been entered between the Company
and NGI (Norwegian_ Geotechnical Institute) Norway on August 07, 2015 for participation in
the Joint Industry Project (JIP) for "Reliability of API & CPT-based axial pile
capacity design methods". Five Internationally reputed companies (Petrobras, Statoil,
Dong Energy, DNV GL and Lundin) participated along with the Company. The project has been
successfully completed on December 31, 2017. This Project will benefit in optimization of
offshore pile foundation and life extension of old platforms.
h. ONGC-PAN IIT Collaborative Research Program:
Your Company has entered into a Memorandum of Collaboration (MoC) with Pan IIT in
January 19, 2015 to work towards a collective R&D Programme for developing indigenous
technologies to enhance exploration and exploitation of hydrocarbons and alternate sources
of energy. Pan IIT is a consortium of seven premier Indian Institutes of Technology
namely, Kharagpur, Kanpur, Madras, Mumbai, Delhi, Guwahati and Roorkee. This is a
long-term initiative for sustained research, development and capacity building. Under this
program, R&D projects (32 Nos.) have been taken up in different phases (Phase-I: 15
projects, Phase-II: 12 projects, Phase-III: 5 projects) distributed with different
timelines up to 2020.
i. An agreement was signed with M/s Belgrave Oil and Gas Corporation, Calgary,
Canada for Cyclic Steam Stimulation Pilot in Lanwa field' on June 25, 2015 and was
valid up to December 31, 2017. The Contract has been further extended up to December,
j. Your Company signed MoU with IFP Energies nouvelles, France on December 20,
2017 for Long term collaborative working relationship in areas of Geoscience &
Reservoir Management and is valid for 5 years.
k. Your Company has signed an agreement with IIT (ISM), Dhanbad on December 03,
2017 for execution of project entitled "Development of polymer nano-composite
hydrogel systems for water control in oil/ gas wells completed in harsh environment".
l. Your Company has signed a MoU on December 23, 2015 with Oil India Ltd (OIL) for
providing consultancy and sharing technology for five years in the field of EOR and Water
shut-off (WSO) jobs. The MoU is valid for five years for setting up of EOR lab, EOR
projects, Heavy oil, Chemical Water shut off (WSO) jobs and Oil field water management
etc. During the year 2016-17 and 2017-18, about 6
WSO Jobs were carried out and currently two jobs are lined up. As a follow-up, a new
request to provide consultancy service for WSO Jobs in 15 wells of OIL has been received
which is under finalization.
m. M OU with Mumbai Port Trust,
Nehru Port Trust and Participating Oil Companies
Y our Company has an MoU with Mumbai Port
(MbPT), Jawaharlal Nehru Port Trust (JNPT) and Participating Oil Companies viz. Bharat
Petroleum Corporation Limited, Indian Oil Corporation Limited, Hindustan Petroleum
Corporation Limited, Reliance Industries Ltd., Chemical Terminal Trombay Ltd., Aegis
Logistics Ltd. and Tata Power Company Ltd., whose oil is being handled at these ports for
providing Tier-1 oil spill response services and facilities at MbPT and JNPT covering the
Company's Uran Plant and Nhava Supply Base. The Participating Oil Companies are funding
the Tier-1 oil spill response services and facilities, the contract for which has been
awarded to Sadhav Shipping Ltd., Mumbai by MbPT for a period of five years, valid up to
October 21, 2019 with Company's share of 41.5%. Under the MoU, MbPT is conducting
quarterly oil spill response mock drill in the port area with the Participating Oil
n. M oU with CSIR-National Institute Oceanography (NIO) covering areas like
Analysis and R&D studies of heavy metals concentration in environmental
Bioremediation studies of waste generated during oil exploration and production
Toxicological studies of the wastes;
Environmental tests of drilling fluids, drilling mud and drill cuttings;
Study of sediment characteristics;
EIA studies for offshore activities;
Impact prediction and modelling for oil spill, air pollution and water pollution
for risk assessment studies in petroleum sector etc.
o. Agreement with Oil Spill Response Ltd. (OSRL), UK
Y our Company has an agreement with Oil
Response Limited (OSRL), UK for combating major oil spill of Tier-3 level. OSRL has one
of the world's largest technical resources for responding to oil spill. It operates as a
non-profit cooperative of the major international oil and energy companies like Chevron,
British Petroleum, STATOIL, British Gas International etc. Company is a participant member
on OSRL since 1999. A s a part of service contract OSRL has to undertake
Trust preparedness review of Company's offshore and coastal facilities every year. In
view of development activities, the Annual Preparedness Review was conducted at Eastern
Offshore Asset (EOA) Kakinada on July 24, 2017.
p. A greement with Reliance Industries Ltd.,
Cairn India Ltd., Gujarat State Petroleum Corporation and Oil India Ltd. at East Coast
Y our Company has signed agreement with Reliance
Industries Ltd., Cairn India Ltd., Gujarat State Petroleum Corporation and Oil India
Ltd. on June 01, 2017 for pooling of resources and cooperation during oil spill incidents
on East Coast. The agreement is valid for 5 years.
12. I nformation Technology
i) Paperless Project under DISHA Digitisation, of Integration and
Standardisation by Harnessing Automation
Y our Company has taken giant step in digitisation by rolling out Paperless Office
system at Mumbai region on July 12, 2017 followed by Delhi on July 31, 2017. Subsequently,
it has been rolled out in Western Region on September 25, 2017 by the Hon'ble Prime
Minister Shri Narendra Modi. Presently, all the work-centres of the Company are on
Paperless office system.
ii) Project Management Office
I n today's competitive world, the focus is on timely completion of Projects. Towards
this objective, a Project Management software has been implemented. The tool has been
configured and presently strategic Projects are being monitored. In due course, all
Projects would also be monitored using this tool.
iii) B WA for Onshore Rigs in Western Onshore
Spill F or Onshore Drillings, high bandwidth connectivity based on Wi-Max technology
has been extended.
This would enable them to have Office like network experience at the rigs.
T he Company has implemented Wi-Fi with enterprise security features in SCOPE Minar as
a pilot to enable mobiles and Bring your Own Devices (BYOD) of employees to be connected
to Company network. Critical Conference Halls of work-centres of the Company have been
connected to this WiFi allowing seamless roaming for users at all work-centres.
v) L AN and WAN
S tate-of-the-art technology-based Network have been inducted in the Company which has
been used to upgrade the LAN and WAN Infrastructure. This provides for secure and
efficient network connectivity across the organisation resulting in smooth IT experience
and increased employee productivity.
vi) I nformation Security Management System
IS MS Group is making all efforts in information security measures across the Company
and for enhancing employee awareness on issues in the domain of Information Security and
Cyber Security. In order to streamline and smoothen up the process of ISMS sustenance, two
different phases of ISMS Audit cycles for 30 Data Centers and implementation of ISMS at 18
new Data Centers have been consolidated into a single audit cycle. This process ensures
implementation of ISMS in a total 48 Data Centers of the Company. As part of efforts for
enhancing employee awareness on issues and current trends in the domain of Information
Security and Cyber Security, a Quarterly IS-e-Newsletter is being published regularly on
ONGC Reports portal. So far, Five (5) issues have been published. Certification Audit for
48 Data Centers as per ISO 27001:2013 standard has also been completed by March, 2018.
Advisories and Alerts received from CERT-In and NCIIPC were shared with Corporate IT Team
for implementation and for keeping constant vigil. An Advisory by CISO on various Ransom
wares was uploaded on "reports. ongc.co.in". Advisory received from CERT-In was
mailed to IS-FORUM members and In-charges of Infocom Data Centers.
vii) En terprise wide Access Control and Surveillance (EACS) Project:
A s tate of the art Enterprise wide Access Control and Surveillance (EACS) system
project has been proper conceptualized to mitigate any threat perception to the security
of the oil installations as well as offices of your Company. M/s BEL is the LSTK
contractor to implement the project at 330 sites covering all the work centres of the
Company. Project is likely to be fully operational by December 2018.
13. INDE G-Make in India Campaign
Y our Company is leading the upstream sector for successful implementation of the Make
in India devices campaign in the oil and gas sector. This major national program is
designed to facilitate investment, foster innovation, enhance skill development, protect
intellectual property and build best in class manufacturing/services infrastructure to
make India a manufacturing hub and bringing economic transformation in India. Y our
Company carries its legacy of the pioneer corporate in initiative on Import Substitution
and indigenization. In the last few decades, the ensuring Company has developed many
Indian vendors and some of them are now international players in their areas. Company's
initiatives has helped Public Sector Units to expand their capabilities, and the Company
has helped creation of some of the large Indian Companies in services and projects areas
of oil and gas. With the new thrust through the "Make in India" campaign, the
Company has revived its multi-pronged approach to enhance the capabilities of Indian
equipment, goods, services and projects market, through promotion of Indian vendors for
development in India and through tie-ups with global players.
A. M ake in India and Localisation Drive
Your Company's drive for localisation of procurement and promoting Make in India is
gaining momentum. The indigenous share of annual expenditure of the Company stood at
33.36% as compared to 32.7% in the previous financial year.
B. I n-house Refurbishment Capabilities
Catering to the humungous demand of BOP Repair/
Refurbishment in all work centres of the Company, Central Workshop (CWS) Vadodara has
BOP Repair Shop, the single in-house facility across the Company for repair/
refurbishment of Cameron, NL Shaffer and Hydril make BOPs of different sizes and pressure
ratings as per OEM Standards. Being a critical safety equipment procured from overseas,
BOP has always been important in the core activities of the Company.
The average repair cost of each BOP has been reduced from Rs 5.85 million in 2014-15 to
Rs 3.2 million in 2016-17.
C. Indigenization Initiatives
Your Company has conducted interactions with vendors and manufacturers including MSMEs
/ MSME (SC-ST) for promoting make in India at national and international forums. Spares
for White Star Mud Pump, Spares for UPET workover rigs, Piston rod, extension rod, studs,
wear plate for Pumps, Seal kits for NOV make TDS, were indigenized through domestic
D. Initiatives to Develop Alternate Indigenous Source against Import:
||Name of Firm
||M/s Dhariyal Polymer, Ahmedabad
||XC Polymer (a special mud chemical required for E&P operations)
||M/s Madhu Hydrocolloids, Ahmedabad
||XC Polymer (a special mud chemical required for E&P operations)
E. R & D Initiatives under Make in India Campaign:
An R&D collaborative project titled "Development of Shock Wave assisted
fracking" is being taken up with a company promoted by professors of IISc Bangalore.
The MoU was signed in the presence of Hon'ble Prime Minister. The cost of the project is
Rs 680 million.
14. Start-up' Initiative
The Company has launched Rs 1,000 million Startup fund on its 60th foundation day, i.e.
on August 14, 2016 to foster, nurture and incubate new ideas related to energy sector. The
initiative, christened as the Start-up', is in line with the Govt. of India's
initiative Start-up India'. The initiative is intended to promote entrepreneurship
among the younger Indians by creating an ecosystem that is conducive for growth of
Start-ups in the energy sector, which has a huge potential for technology-enabled ideas.
The energy sector is contributing enormously to the growth of economy. Currently, the
sector faces various critical challenges and new ideas are required to mitigate those
A dedicated website startup.ongc.co.in for ONGC Start-up' initiative was created
for registration of proposals, and the Company entered into a MoU with IIT Bombay (IITB)
and Society of Innovation and Entrepreneurship (SINE). Another MoU has been entered with
L-Incubator of IIM Lucknow for evaluation and incubation of Start-Ups selected by the
As of now, two rounds of Start-Up selection have been completed. In the first round
around 30 applicants were shortlisted in first lot of applications and invited for the
pitching session at Mumbai. Steering Committee selected six startups for providing
incubation support subject to further due diligence and acceptance of terms and
conditions. MoU were exchanged with five selected Startups on 25.10.2017 in the presence
of Honorable Union Minister Petroleum and Natural Gas.
In the second round, 20 applications were taken up for detailed evaluation by
L-Incubator out of which 12 were identified for invitation to the Pitching Session before
the Steering Committee. Pitching session for final selection was held on 06.06.2018. Five
startups have been selected for funding and incubation support.
i. Innovation Challenge
Your Company launched Innovation Challenge on 18.05.2017 on innovate.mygov.in website
hosting following five problem areas related to their area of operations viz. Artificial
lifting Equipment for Horizontal Wells (including ESP Pump for horizontal wells), Flow
Improvement in Crude oil pipelines, Data Computation and Analytics, Sand Influx Control
during production of Oil & Gas, Mud loss in wells in Western Offshore.
The prize money for two best proposals in each challenge area was kept at Rs 1 million
and Rs 0.5 million respectively.
Mr. Nirmal Ghotekar of Pune won prize of Rs 0.5 million in Data Computation and
analytics area for which award given on 26.01.2018, at Republic Day function in Dehradun.
ii. Solar Chulha Initiative
Hon'ble Prime Minister while dedicating the Corporate Office of the Company on
September 25, 2017 exhorted the Company to take up a challenge of developing an energy
efficient electric cooking stove, which would enable cooking through the use of solar
energy. Accordingly, your Company launched a nationwide Solar Chulha Challenge inviting
Entrepreneurs/ Scientists/ Researchers with interest in innovation, to participate in the
Indigenous Development effort on Design, Development and Demonstration of Solar Chulha
(Electric and Thermal), suitable for indoor cooking of Indian food (including frying,
baking and chapatti making).
A panel of eminent scientists drawn from various national institutions/ bodies was
constituted under the leadership of former Chairman, Atomic Energy Commission, Dr. Anil
Kakodkar for evaluation of applications.
Two round of evaluation by the expert panel was conducted on the 1550 applications that
were received by closing date. For the demonstration of the proposed concepts, five
participants were called during April 23-24, 2018. Top three entries were awarded Rs 1
million, Rs 0.5 million and Rs 0.3 million respectively.
Your Company will be procuring 1,000 units for demonstration in different regions.
15. Health, Safety and Environment (HSE) Accreditations and Other achievements-
Being a high risk industry, safety of its employees is the top-most priority of your
Company. Hydrocarbon exploration & production (E&P) operations are being carried
out in varied climate and environment areas ranging from deserts to coastal areas, hilly
terrains to forest areas, shallow water to deep waters and also in ultra-deep water areas.
E&P activities often interact with the ecosystems and may have physico-chemical &
bio-geochemical impact on the surrounding environment. Your Company, being a responsible
Corporate makes all efforts for protection and preservation of environment. The Company
has recently revised its Environment Policy and e-Waste Policy in line with the existing
rules, regulations and guidelines. Your Company has a dedicated Institute, viz. Institute
of Petroleum Safety and Health Management (IPSHEM) at Goa for Research and development in
the field of Health, Safety and Environment Management apart from conducting training
Your Company takes all the requisite measures to minimize the impact of E&P
activities on the environment by adoption of clean technologies for gaseous emissions,
liquid effluent and solid waste generated out of its operations.
Your Company has implemented globally recognized QHSE Management System conforming to
requirements of QHSE Certifications ISO 9001, ISO 14001 and ISO 18001 (OHSAS) and
certified by reputed certification agencies at all its operational units. Corporate
guidelines on online incident reporting, investigation and compliance of audit
observations have been developed and implemented for maintaining uniformity throughout the
organization in line with international practice.
Highlights of HSE during 2017-18:
a. Internal and External Safety Audits: To check the conformity of activities and
processes to HSE management systems as well as to prevalent rules, regulations, guidelines
and standards, regular audits are being conducted by external agencies, namely Oil
Industry Safety Directorate (OISD) & Directorate General of Mines Safety (DGMS) and
Internal Safety Audits (ISA) by multi-disciplinary teams of the Company.
OISD is a technical directorate under Ministry of Petroleum & Natural Gas.
It carried out audits of 34 Onshore installations, 13 Offshore Installations and 2 Gas
Processing. Also pre-Commissioning Safety Audit of Navagam-Koyali pipeline and two units
of Hazira Gas processing Plant was carried out during 2017-18. The Operational area-wise
compliance during 2017-18 is 95.86 for Onshore operations, 76.65% for Offshore operations,
71.40% for Process plants, 82.53% for Pipelines.
DGMS is a Regulatory Agency under the Ministry of Labour and Employment,
Government of India, in matters pertaining to occupational safety, health and welfare of
persons employed in mines (Coal, Metalliferous and oil-mines). It carried out inspection
of 176 Onshore Installations in 2017-18. Your Company gives highest priority to the
implementation of the observations raised during External Safety Audits (ESA) and Internal
Safety Audits (ISA). Compliance status to the observations is summarised as under:
|Internal Safety Audits(ISA)
||External Safety Audits(ESA)
b. Waste Water Management: To monitor the discharge of pollutants into environment
and to meet statutory requirements, Your Company has setup 26 number of Effluent Treatment
Plants (ETPs), across onshore work centres to treat approx. 78110 m3/day of waste water
produced during E&P operations. Produced Water Conditioners (PWCs) have been installed
at process platforms for Offshore effluent treatment. For treatment of sewage water being
generated in offshore facilities, Sewage Treatment Plants (STPs) are provided on board to
treat the sewage before discharge.
c. Solid Waste Management: For environmentally safe disposal of oily waste,
your Company has a Joint Venture company ONGC-TERI Biotech Limited (OTBL) which has
developed specialized patented technology for bioremediation of oily sludge/oil
contaminated soil. The technology uses a consortium of Hydrocarbon degrading bacteria
which reduces the TPH (Total Petroleum Hydrocarbons) levels in waste/ soil to less than 1%
during 2017-18, 54012 MT of oily sludge / oil contaminated waste has been bio-remediated.
d. Environmental Clearances: Ministry of Environment Forest and Climate Change
(MoEFCC) has granted 21 Environment Clearances for Exploration, Development and Production
activities. These include clearance for 441 wells in onshore and offshore; Combined Cycle
Power Plant at Hazira; Desalination Plant and LPG Storage Bullets at Uran; and Shale Gas
exploration in Cambay and KG-PG Basin.
e. Other initiatives during the year 2017-18:
(i) Ten Safety Rules Awareness Program: Under Ten Safety Rules Awareness
Programs, a total of 28,497 personnel (including contract personnel) have been covered
since inception (February, 2017). Almost all the field employees have been covered. Now,
it is a permanent feature of safety aspects.
(ii) Mines Vocational Training (MVT, 1966): A total of 2,034 personnel (523
employees and 1511 contract personnel) were imparted MVT during FY'18.
(iii) Viniyaman Sangam: A national level awareness program "Viniyaman
Sangam" on Oil Mines Regulations-2017 (OISD standard based) was organised on
September 15-16, 2017. The program was attended by more than 110 participants including
officials from DGMS, OISD, Key Executives and officers from different work centres.
(iv) Review of Oil Mines Regulations: To facilitate working in the fields and
improve safety standards, DGMS had formed a committee to review OMR-1984. The Company was
represented by Corporate HSE and contributed significantly. Suggestions given by Corporate
HSE were incorporated in updated Oil Mines Regulations-2017 which was notified by the
Ministry of Labour & Employment on August 19, 2017.
(v) Compendium of Generic observation: A compendium was prepared and uploaded in
your Company's internal portal for uploading the status by self-auditing by OIMs (Offshore
Installation Mangers)/ IMs (Installation Managers) /DICs (Drillsite Incharges) / REs
(Resident Engineers)/ RPS (Resident Production Superintendent. The status is continuously
monitored by CHSE.
(vi) Training to students and initiative for Skill development: To provide
training and firsthand knowledge about the actual Oil field conditions to students, an
E&P Park has been constructed at Ankleshwar-ONGC Colony in which various geological
Models, oil Samples, core samples and model of artificial lift have been displayed along
with actual field equipment/ machineries like work-over rig (CW-100-Vl), sucker rod pump,
mud pump, CMT (Crisis Management Team) module, group separator, test separator, gas
flaring facility, heater-treater, x-mas tree, knock out facility and flexible water tank.
For training and demonstration logging units, cementing units and fire tenders are made
available whenever required. The facility can also be used to give training to local ITI
students and on job and MVT trainings. Two batches of apprentice trainee have also been
(vii) Hazard Alert Card (HAC) was launched to capture unsafe acts and unsafe
conditions. Any employee can report unsafe act and unsafe conditions and place the card in
the drop box. Safety Officer and Installation Managers shall take action on the same.
Monitoring mechanism has also been formulated and put in place.
(viii) HSE Index for benchmarking installations on various parameters like
detection and suppression system, environment parameters, evacuation systems, equipment
integrity etc., is being followed regularly on monthly basis by Offshore Process
Complexes. In the second phase, Offshore Drilling Services and thereafter Process Plants
and Onshore installations/ rigs are scheduled in third phase. Reporting on HSE Index is
scheduled to be completed across the Company by August 2018.
(ix) Mock Drills and Exercises on Oil Spill Response: Exercise
"Prasthan" was conducted by Regional Contingency Committee (West) comprising of
12 agencies viz. Navy, ICG, Air Force, ONGC, JV, Cairn, DG Shipping, MbPT, JNPT, Govt. of
Maharashtra, Gujarat and SIB on November 21 - 22, 2017 by activating Regional Contingency
Plan to practice the emergency handling by co-ordinated joint action.
(x) Oil Spill Exercise by Indian Coast Guard: An Oil spill Response exercise was
conducted by Indian Coast Guard on March 13 - 14, 2018 off Kakinada Coast in Eastern
Offshore. Further, mock drills are being regularly conducted at Offshore Process
Complexes, Offshore Drilling Rigs, FPSO (Floating production storage and Offloading) and
MSVs (Multi Support Vessels) to check the level of preparedness, identify grey areas and
take corrective actions.
(xi) Guidelines regarding disposal of chemical and other laboratory waste: Your
Company for the first time issued a uniform guidelines for disposal of laboratory chemical
waste/ samples/ gases and other waste for oil field chemical testing laboratories and
R&D institutes of the Company.
f. Initiatives for Environment Protection and Conservation: Apart from the
various steps taken for Environment Protection and Conservation provided above,
Afforestation is emphasized through Mangrove and Ringal Plantation to contribute towards
reduction of pollution.
Mangrove Plantation: Project Mangrove was initiated with the aim to stabilize
shoreline close to Company's Assets and to protect the wells from soil erosion in Gandhar
field on the river Dhadar shoreline. During Phase-I of project, plantation of a total of
17,85,250 mangrove saplings, seedlings and propagules in 100 hectare area of Gandhar
field, Ankleshwar in Gujarat; and in Phase-II, plantation of a total of 2.16 million
mangrove saplings, seedlings and propagules in Gandhar field, Ankleshwar and near Hazira
Plant, Hazira in Gujarat was undertaken by your Company.
Ringal Plantation: To sustain fragile ecosystem of Himalayas, ringal plantation
in Upper Himalayan Region is being carried out as an initiative under National Action Plan
on Climate Change launched by the Prime Minister. Your Company, being a responsible
organization towards protection of environment, has always given high importance to
plantation and their survival, not only at its operational work areas but also in areas
outside its work-centre. A total of 1.075 million Ringal plantation in 430 ha of Upper
Himalayan region has been done, fixation resulting in 1.97 million tonnes of CO2 per
QCI-NABET Accreditation: Your Company is the 1st PSU to be accredited by
National Accreditation Board for Education & Training (NABET)-Quality Council of India
(QCI) as the Consultant Organization for the purpose of carrying out Environment Impact
Assessment (EIA) studies and preparing EIA reports for offshore and onshore Oil and Gas
Exploration, Production and Development. The accreditation has contributed to improve
Company's image apart from significant financial and time savings.
16. Carbon Management & Sustainable Development
Sustainable Development is the overarching working template in the Company and this
finds expression in our commitment to continually enhance the triple bottom line
benchmarks of economic, environmental and social performance. The Company has a dedicated
set up called Carbon Management and Sustainability Group (CM&SG) at the corporate
level, with adequate resources and empowerment. CM&SG is a group of professionals from
various disciplines to plan, implement and monitor sustainable development activities in
association with Sustainable Development Officers (SDOs) located at work centres.
Sustainable Water Management (SWM)
As an E&P Company, the Company's business depends on sustainability of water
resources which are presently under pressure. Globally, per capita availability of
freshwater is steadily decreasing and trend will inevitably continue with the increasing
consumption levels and, as climate change unfolds. In this situation, it is imperative for
the Company to develop new strategies for water management in order to achieve sustainable
growth and development.
Rainwater Harvesting (RWH) projects: Rain water harvesting_ is the collection and
storage of rainwater for beneficial uses like washing, irrigation, gardening, etc. as well
as for recharging of ground water aquifers, rather than allowing it to run off into
drains. The Rainwater harvesting policy of the Company provides the necessary framework
and guideline for pan India implementation of the rainwater harvesting projects.
Also the existing Rainwater harvesting policy is being modified with the perspective of
extending the scope of carrying out rainwater harvesting outside the operational
boundaries of the Company and provide climate resilience to the nearby areas from draught
Sea Water Desalination: With fresh water scarcity looming large across the world
and especially in India, desalination of seawater has become one of the most important
tools to address the increasing demand of fresh water. Your Company is setting up a 10 MLD
Sea Water Desalination Plant within Uran Processing Plant. The Plant can be upgraded to an
increased capacity of 20 MLD if there is an increase in fresh water requirement. Uran
process plant, situated in Maharashtra near Mumbai is one of the most important plants of
the Company, responsible to process the crude coming from Mumbai High Assets and producing
value added products from it. The desalination plant will mitigate the fresh water risks
of the processing plant and contribute towards environmental sustainability of the area.
Your Company is also in the process of setting up seawater desalination plants in other
coastal work centres to ensure freshwater availability and sustainable growth. Feasibility
study is being conducted at MRPL and Rajahmundry Asset to set up desalination projects of
Sewage Treatment Plants: Three numbers of Sewage Treatment Plants each with 199
Kilo Litres/ day (KLD) capacity are under construction at ONGC colony, Mehsana Asset.
Water Footprint Study: To understand the pattern of freshwater consumption, its
sources and possibilities of reduction in consumption, water foot print studies are
carried out across the work centres by utilising our in-house expertise. This year a table
top analysis of Assam Asset data had been carried out.
Clean Development Mechanism Projects
Emission reduction through CDM projects: The Company commenced its Clean
Development Mechanism (CDM) journey in 2006. Currently, there are has 15 registered CDM
projects with United Nations Framework Convention on Climate Change
(UNFCCC)thatyield(potential)CertifiedEmissisons Reductions (CER) approx. 2.1 million
yearly. The list of registered CDM projects along with CER is given at Point No. 6.10 of
Business Responsibility Report. Your Company has taken an initiative to extend the credit
period permissible under CDM regulation, subject to the merit of the project, for another
7 years for 51 MW Wind Power Project Surajbari, Gujarat. The project was registered
with UNFCCC as a CDM project in the year 2010 with a credit period of 7 years. Besides,
Your Company is also in the process of validation and registration of new CDM projects
with UNFCCC. These are Coal Bed Methane (CBM) Asset, Bokaro, C2-C3 Plant Dahej, Gujarat,
Waste Heat Recovery Unit, MH Asset, 10 MW Solar Power project Hazira, Gujarat.
T he Company has first launched its assured sustainability Report in the year 2009-10
and from there onwards the Company has incrementally enhanced the boundary of reporting to
include our subsidiaries OVL and MRPL and from FY'17 onwards the Group Corporate
Sustainability Report is launched by including the Venture companies OTPC, OPaL and OMPL.
The GRI based externally assured reports are now a major enabler to the Company towards
creating triple bottom line value creation and parity to all forms of capital.
Setting up of Pilot "Waste to Fuel" project in Puri city under Swachh Bharat
Abhiyan of the GoI.
Your Company has set up a pilot "Waste to Fuel" project in the holy city of
Puri, Odisha as a CSR project under the Swachh Bharat Abhiyan of the GoI. Waste to fuel
projects are an emerging area in the field of municipal solid waste management where in
the collected wastes are segregated and processed for generating solid/ liquid/ gaseous
fuel from it. For setting up the proposed pilot plant, Puri municipality has agreed to
provide necessary land and also supply of MSW to the plant regularly during the entire
life cycle of the plant. The Company will infuse necessary capital expenditure in the form
of CSR grant. The plant will segregate the mixed wastes generated daily and process them
through latest and cost efficient technologies for generating fuel from them.
A Study on Climate Change Risks: Preparedness for Oil and Gas sector
Your Company in association with other oil and gas sector PSUs conducted a Scientific
"Study on Climate Change Risks: Preparedness for Oil and Gas sector" by The
Energy Resource Institute (TERI) and Federation of Indian Petroleum Industry (formerly
Petroleum Federation of India). The aim of the study was to understand and assess climate
change risks to the upstream, midstream and downstream infrastructure of Oil & Gas
sector in India along with challenges due to emerging climate policies and to develop a
framework to facilitate integrate climate change risks in to strategic decision making.
17. B usiness Responsibility Report 2017-
C lause (f) of sub-regulation (2) of 34 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, stipulates that the annual report shall contain a
Business Responsibility Report describing the initiatives taken by the listed entity from
an environmental, social and governance perspective in the format specified. Accordingly,
Business Responsibility Report for 2017-18 has been appended to this Annual Report.
18. Internal 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; the safeguarding of its assets; the prevention and detection of
frauds and errors; the accuracy and completeness of the accounting records; and the timely
preparation of reliable financial information, commensurate with the operations of the
Ef fectiveness of Internal Financial Controls is ensured through management reviews,
control 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 were operating effectively. The Audit & Ethics Committee reviews the Internal
Financial Controls to ensure their 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 attached along with the
19. R&D efforts through ONGC Energy Centre Trust (OECT)
I. Patents-granted International Patents:
During FY'18, against three International PCT patents on Cu-Cl cycle, filed earlier,
jointly by OECT and ICT-Mumbai in six countries (USA, Canada, Japan, UK, Korea and China)
the following two applications were granted:
1. Effect of Operating Parameters on the Performance of Electrochemical Cell in
Copper-Chlorine Cycle' - granted in UK. (Patent already been granted in Japan, Canada and
2. Electrochemical Cell Used in Production of Hydrogen Using Cu-Cl Thermochemical
Cycle' - granted in China (Patent already been granted in Canada, Japan, UK and USA).
During FY'18, the following two National Patents were granted:
1. "Hydrogen Production Method by Multi-Step Copper-Chlorine Thermochemical
Cycle", jointly filed by OECT with ICT, Mumbai vide Patent No. 294447.
2. "Effect of Operating Parameters on The Performance of Electrochemical Cell in
Copper-Chlorine Cycle" jointly filed by OECT with ICT, Mumbai vide Patent No. 294960.
Patents filed National Patents:
During FY'18, two National Patent were filed in India:
1. National Patent for title of invention "A molten salt composition for high
temperature thermal energy storage" (India: 201721016058) has been filed jointly by
OECT with ICT, Mumbai.
2. National Patent for title of invention "Acid and oxidative resistant cation
exchange membrane for electro dialysis, electrolysis and other electrochemical
processes" (INDIA: 0016NF2018) has been jointly filed by OECT with CSIR-CSMCRI.
Against National patent filed earlier, three PCT applications were filed during
1. PCT application No. PCT/IN2017/050151 titled Catalyst composition for
conversion of Sulphur Trioxide and Hydrogen Production Process' was filed jointly by OECT
with IIT Delhi on April 28, 2017.
2. PCT application No. PCT/IN2017/050150 titled Process for conversion of Sulphur
Tri-oxide and Hydrogen Production' was filed jointly by OECT with IIT Delhi on April 28,
3. PCT application PCT/IN2017/050461 titled "Methane Production From Underground
Coalbed Methane Wells" was filed jointly by OECT with TERI Delhi on October 10, 2017.
II. New Projects
During FY'18, OECT has taken up twelve (12) new in-house/ collaborative projects,
besides new initiatives. The details are given below:
A. Uranium Exploration:
1. Drilling, coring and logging of 8800 meters (16 parametric boreholes) in Kaikalur
Lingala area, KG Basin Andhra Pradesh - In house project.
2. Drilling, coring and logging of 20,150 meters (43 parametric boreholes) in SON
Valley and Sagar area, M.P and Karjan - Padra area, Gujarat - In house project.
3. Development of ISL Process for extraction of Uranium from Subsurface deposits"-
In house project with KDMIPE: to develop leachant formulations of prospective exploration
B. Hydrogen Program:
4. Further Investigations on ICT-OEC Cu-Cl Cycle: Studies on Separations, Material
Screening and Integration of Molten Salt Media with Cu-Cl cycle - In collaboration with
5. Hydrogen storage using Colloidal Gas Aphrons (CGAs) and CGAs-loaded with metal
hydrides In collaboration with IIT Delhi.
C. Biotechnology Program
6. Demonstration of in-situ stimulation and bio-augmentation for methane generation/
enhancement from producing CBM wells of Jharia - In collaboration with TERI, Delhi.
7. Development and Demonstration of Bioconversion process for generation of methane
from subsurface lignite deposits - In collaboration with TERI and ARI.
8. Design, Development and demonstration of microbial methane generation process
suitable for Poor to marginally producing CBM wells - In collaboration with TERI- DST.
9. Proof of concept Design of Photo-catalytic Reactor and Demonstration of Recycling of
Carbon Dioxide into Hydrocarbons using Solar Energy - In collaboration with IIT Madras.
10. Laboratory scale investigation on chemical treatment of subsurface lignite deposits
to enhance the conversion of lignite to methane - In collaboration with CSIR - IICT,
Hyderabad. 11. Development of sludge free clean technology for treatment of Industrial
effluent-with TERI. 12. Utilization of waste heat from produced water for heating well
fluid at North Kadi, GGS IV, Mehsana North Gujarat with EIL.
13. Refurbishment / Revival of Helium extraction pilot plant at GCS, Kuthalam. 14.
Selection of Materials for Construction in Cu-Cl cycle and related activities. 15.
Development of Sensors for H2S and SO2 detection with BARC: In view of indigenous
development H2S & SO2 sensors by BARC.
16. Solar Thermal Energy for well fluid processing at Company installations to reduce
fuel gas consumption: A Feasibility report has been prepared through UNIDO.
20. H uman Resources
Your Company values its Human Resources to the most. To keep their morale high, your
Company extends several welfare benefits to its employees and their families by way of
comprehensive medical care, education, housing and social security.
21. Human Resource Development
32,265 ONGCians dedicated themselves for securing excellent performance of your Company
during the year. The workforce intake strategy pursued by your Company caters to meeting
the demands of maintaining a steady flow of talent, in a business which is characterized
by high risks and uncertainties, enormous costs, fast changing level of technology,
physically challenging work environment, fluctuating product prices and growing
competition. Your Company has drawn-up a scientific manpower induction plan aligned to the
business plans as well factoring the manpower profile of the Company. The following
specific initiatives were taken to strengthen HR processes:
Online submission of ACR/APAR in respect of all executives (E0 and above) was taken up
successfully along with compliance of prescribed timelines with regard to writing of ACR/
APAR (% of number of executives) which have been 99.75%.
100% achievement has been in respect to Online Quarterly vigilance clearance updation
for Senior Executives (E5 and above level officers).
Preparation of succession plan was approved by the Board of Directors on September 28,
Your Company believes that continuous development of its human resources fosters
engagement and drives competitive advantage. Towards that end, during the year, your
Company conducted Business Games to hone the business acumen of its executives in a
competitive scenario under simulated business constraints. Business Games has proved to be
very popular initiative and tests the ability of the executives through business quizzes,
business simulations and case-study presentations. During the year 2017-18, a total of 159
teams and 636 executives participated in the event. Fun Team Games (FTG) were organized
for E0 and below level employees to inculcate MDT (Multi-disciplinary Team) concept and
spirit of camaraderie and belongingness to the organization, which was very well received
by the participants. A total of 119 Teams and 476 employees participated in FTG during the
year 2017-18. The winners of Business Games and Fun Team Games were felicitated by the CMD
on Republic Day Celebrations. Your Company has branded the spectrum of its training
activities as EXPONENT', a comprehensive programme which is nurturing the energy
leaders of tomorrow. The growth of an ONGCian to an Exponent of energy business is
facilitated by ONGC Academy, Skill Development Centers (SDCs), other in-house Institutes;
in association with globally recognized trainers. Training Institutes of ONGC organize
training in all dimensions - Technical as well as non-technical and Managerial.
During the year, a total of 17,947 Executives and 5,319 non-executives were imparted
appropriate training, spanning 167,369 executive and 17,817 non-executive mandays across
With an aim to give an impetus to talent management and carrier progression practices,
your Company exposed 11.9% of its Executives of E-5 level and above to at least one week
training through Centres of Excellence viz. IITs, IIMs, NITs, ICAI etc. Further, in order
to assimilate new and emerging technological advancements pertaining to oil and gas
exploration and production, 14 training programmes were conducted through foreign faculty
during the year through which 302 participants got the requisite exposure.
22. Employee Welfare
Your Company continues to extend welfare benefits to the employees and their dependents
by way of comprehensive medical care, education, housing, and social security. Your
Company continues to align its policies with changing economy and business environment.
Employee Welfare Trusts
Your Company has established the following major Trusts for welfare of employees:-
Employees Contributory Provident Fund (ECPF) Trust, manages Provident Fund
accounts of employees of your Company.
The Post Retirement Benefit Scheme (PRBS) Trust of your Company manages the
pension fund of employees of your Company. The Scheme was converted into a Defined
Contribution Scheme as per DPE Guidelines in November, 2013.
The 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 in service. In case of Separation other than Death/ Permanent total
disability, employees own contribution alongwith interest is refunded.
Gratuity Fund Trust exists for payment of gratuity as per the provisions of the
Payment of Gratuity Act.
Sahayog Trust Your Company has a Sahayog Trust for its Sahayog Yojana to provide
ex-gratia financial grant for sustenance, medical assistance, treatment, rehabilitation,
education, marriage of female dependent and alleviation of any hardship or distress to
secure the welfare of the workforce and their kin, who do not have adequate means of
support. The beneficiaries under this scheme include casual, contingent, daily rated, part
time, adhoc, contract appointees, tenure based employees, apprentices and trainees
employed by your Company besides regular and past employees. Under the scheme an amount of
Rs 48 million was disbursed by the Trust during 2017-18 to 1200 beneficiaries.
Asha Kiran Scheme Your Company has Asha Kiran Scheme to meet the
emergency needs of the ex-employees retired prior to January 01, 2007. The scheme was
launched as per DPE Guidelines by creating a corpus of 1.5% PBT.
Implementation of Government Directives for Priority Section
Your Company complies with the Government directives for Priority Section of the
society. The percentage of Scheduled Casts (SC) and Scheduled Tribe (ST) employees were
15.3% and 10.10% respectively as on March 31, 2018.
Your Company is fully committed for the welfare of SC and ST communities. The following
welfare activities are carried out by your Company for their upliftment in and around its
Annual Component Plan:
Under Annual Component Plan for SC/ST, every year an allocation of Rs 200 million is
made since FY'12. Out of this, Rs 60 million is distributed amongst all the Work centres
of the Company for taking up activities for welfare of SC/ST Communities in and around the
areas of our operations. In addition, Rs 140 million is managed centrally, and is
earmarked for Special projects/ proposals/ schemes for the welfare of areas/ persons
belonging to SC/ST communities. This fund is especially meant for providing help and
support in Education and Training, Community Development and Medical and Health Care.
Scholarship to SC/ST meritorious students
Your Company provides 500 scholarships for meritorious SC and ST students for pursuing
higher professional courses at different Institutes and Universities across the country in
Graduate Engineering, MBBS, PG courses of MBA and Geo-Sciences. The major feature of the
scheme is that the scholarships have been equally divided for both Boys and Girl students
and the amount of scholarship has been made at Rs 4,000/- per month amounting to Rs
48,000/- per annum per student as per terms and conditions of the scheme.
23. Industrial Relations
During the year your Company maintained harmonious Industrial Relations throughout the
year. Mandays loss due to internal industrial action was reported as NIL' for the
24. Grievance Management System
Your Company has put in place an effective online response mechanism
2015 to enable all stakeholders viz. citizens / vendors / employees / former -
employees, to register and get online redressal to their grievances related to any
Your Company has also put in place a Grievance Management System for redressing
employee grievance, which provides for three-tier channel for grievance redressal with an
Independent Appeals Committee, at Corporate Level, which is chaired by an external
professional to ensure transparency and justice. The Appeals Committee situated at
Corporate Office can also be accessed for settlement of grievances in case the location
Channels are not effective in resolving the grievance. Further, provision for
representation through Chief Liaison Officers of SC/ST/OBC in the Appeals Committee has
also been in-built to protect the interest of reserved category employees. For external
stakeholders, the Company has a well laid down grievance redressal system in place with
adequate provisions to escalate the matters up the hierarchy up to the Board (stakeholders
Relationship Committee a Board level Committee headed by an independent Director).
The Company voluntarily facilitates resolving grievances through Independent External
Monitors (IEMs) and through Outside Expert Committee (OEC).
25. Implementation under the Right to Information Act (RTI Act), - 2005
An elaborate mechanism has been set up throughout your Company to deal with requests
received under the RTI Act, 2005. An Officer of General Manager level, based at the
Registered Office at Delhi, has been designated as Nodal Officer' for the purpose.
Besides this, 22 officers have been designated as Central Public Information
Officers' (CPIOs) at different work centers across the country, in compliance of
provisions of the Act. The particulars of all the quasi-judicial authorities under the
ambit of RTI Act, 2005 have been uploaded on the Company website (www.ongcindia.com) for
wider information of the general public. In compliance of Government directives, your
Company has successfully introduced online processing of applications under the Act from
August, 2016 onwards. 111 applications were carried forward from the year 2016-17.
Further, 1719 applications were received during the period from April 2017 to March 2018.
A total of 1647 of the 1830 applications received were responded to during the period in
accordance with the provisions of the RTI Act 2005. There were 273 first appeals which
were disposed off during the period. Additionally, the Department of Public Information/
RTI Cell also processed 109 Second Appeals which were listed for hearing at the Central
Information Commission (CIC) during FY' 18.
26. Implementation of Official Language Policy
Your Company makes concerted efforts for promotion and implementation of Official
Language. In this regard, some of the steps taken during the year were: -
Unicode Hindi software installed in our all offices.
Hindi workshops conducted at regular intervals in all work centres.
Hindi Technical seminars, Kavi Gosthies' and Hindi plays organized at various
Various programmes for promotion of Rajbhasha' were organised at all work centres
of the Company during Rajbhasha Fortnight' (September 14 - 28, 2017) and
Vishwa Hindi Diwas' (January 10, 2018).
Hindi Teaching Scheme of Government of India was effectively implemented at all
regional work centres of the Company.
E-Roster of Employees regarding working knowledge of Hindi was put in place.
Hindie-magazines were published at various work centres.
Rajbhasha implementation Help Book was uploaded in the local intranet and internal
portal of ONGC.
Paperless office (DISHA) has been made bi-lingual for effective implementation of
Official Language policy in the office works.
In recognition of the initiatives taken for promotion of Rajbhasha, your Company was
awarded with the Petroleum Rajbhasha Shield' of Ministry of Petroleum & Natural
Gas as well as "Rajbhasha Gaurav Award" by the Ministry of Home Affairs during
27. Women Empowerment
Women employees constituted over 6.7% (March 31, 2018) of your Company's workforce.
During the year, programmes on women empowerment and development, including programmes on
gender sensitization were organized. Your Company actively supported and nominated its
lady employees for programmes organized by reputed agencies. Over 2000 employees
successfully underwent online gender sensitisation module.
Disclosure under the sexual Harassment of women at workplace policy (prevention,
prohibition & redressal) Act, 2013:
Your Company has complied with the provisions under the Sexual Harassment of women at
workplace (Prevention, Prohibition & Redressal) Act, 2013 including constituted on
Internal Complaint Committee (ICC) for dealing with the complaints on sexual harassment of
women at workplace. Four complaints of sexual harassments were received in the year
2017-18. Reports of ICC have been submitted in all the cases.
28. W ork-Life Balance:-
Your Company continued in its endeavors to ensure work-life balance of its employees.
The townships at many work-centers were provided facilities like gymnasiums, music rooms,
etc. Facilities for gym, yoga, etc. were also provided in Offshore Living Quarters.
Outbound programmes with families were also organized at various work-centers. Plays on
the importance of Work-Life Balance' were staged to create awareness amongst the
employees. In addition, cultural programmes involving employees and their families were
also conducted. Mahila Samitis and Resident Welfare Associations (RWAs) were involved in
the organization of these cultural programs. Your Company has a adventure wing named ONGC
Himalayan Association which organizes adventure programmes like mountaineering, trekking,
white water rafting, snow skiing, desert Safari, Aero sports etc. which adds towards
morale, engagement, team spirit, camaraderie, stress management and spirit to explore
unknown traits among the employees.
Your Company continues to extend sustained support for development of sports in the
country through employment to 173 players and scholarships to 289 upcoming sportspersons
in 23 game disciplines. Financial assistance to various Sports Associations / Federations/
Sports Bodies to organise sports events as well as to develop infrastructure was also
Some of the key achievements of our sportspersons during the year were:
Mr. Pankaj Advani was conferred with prestigious
Padma Bhushan Award in April 2018.
3 ONGCians were conferred with the prestigious "Arjuna Award" for the
year 2017, namely Ms. Vennom Jyothi Surekha (Archery), Mr. Jasbir Sngh (Kabaddi) and Mr.
Amal Raj (Table Tennis).
Mr. Bhupender Singh (Athletics) was conferred with the "Dhyanchand Award".
The total number of National Sports Awardees in your Company now stands at 40 (Padma
Bhushan - 1, Khel Ratna 1, Padma Shri 3, Arjuna Award 34 and
Dhyanchand Award 1).
In the Common Wealth Games 2018 at Gold Coast, Australia, Company's sportspersons
bagged 13 medals including 5 Gold, 3 Silver and 5 Bronze, contributing to the overall
Medal tally of 66 Medals of Team India. The strength of your Company players in the Indian
contingent was 21. ONGCian Mr. Yadwinder Singh led the Sr. India Basketball Men's team.
ONGCians contributed five Medals including 2 Gold, 1 silver and 2 Bronze Medals in
Indian Tally in Asian Athletics Championship 2017. ONGC athletes Ms. M. R. Poovamma won
Gold Medal in 4X400 mtrs relay race, Ms. Swapna Barman won Gold in Heptathlon, Ms. Anu
Raghwan won Silver Medal in 400 mtr hurdle race, Ms. Sanjeevani Jadhav won Bronze Medal in
5000 mtrs and Ms. Seena N. V. won Bronze Medal in Triple Jump.
ONGC trio of Mr. Pankaj Advani, Mr. Sourave Kothari and Mr. Rupesh Shah secured Gold,
Silver and Bronze Medal respectively in 2017 ONGC-Asian Billiards Championship held in
April 2017. This was Mr. Pankaj Advani's 7th Asian Billiards Title. Mr, Pankaj Advani also
won his 19th World titles in cue sports Doha, Qatar in March 2018.
Ms. Yuki Bhambri won the ATP Challenger World Ranking Tennis tournament held at Pune in
Mr. Siddhanth Thingalaya participated in World Indoor Athletics Championship March 2018
at Birmingham. He was the only Athlete representing India for this event.
ONGCian Mr. Virat Kohli is currently leading the Indian Cricket team as Captain in all
Match formats i.e. Tests, One Days & T-20s.
ONGCian Mr. Sai Praneeth won his maiden Singapore Super Series Title in April 2017.
ONGCian Mr. H S Prannoy won US Open badminton 2017 title in July 2017.
Ms. Heena Sidhu won Gold Medal in Commonwealth Shooting Championship 2017 in Gold
coast, Australia in November 2017.
Three Kabaddi players Mr. Pradeep Narwal, Mr. Sandeep Narwal and Mr. Sachin were the
part of Indian Kabaddi team that won Asian Championship held at Iran from November 22
Mr. G Sathiyan, Table Tennis player won God Medal in ITTF Challenges Series Spanish
Open in Nov. 2017.
10 ONGCians duly trained through rigorous winter training programme successfully
summited Mt. Kanchenjunga (8,586 m) in May 2018. Earlier in May 2017, 6 ONGCians scaled
Mt. Everest (8,848 m)
30. Corporate Social Responsibility (CSR) NGC CSR - Partnering for Inclusive Growth
In the financial year 2017-18, your Company ensured more than 100% utilization of CSR
budget amounting to Rs 5,034 million against the budget of Rs 4,870 million. As stipulated
in the Section 135 of the Companies Act 2013, your Company has a Board Level Committee on
CSR namely CSR and SD Committee, who has approved 19 major CSR projects amounting to Rs
2,600 million in FY'18. Besides, a detailed standard operating procedure on CSR has
been rolled out to bring in standardization and transparency in the process of
implementing CSR projects. Expenditure of Rs 5,034 million has been made possible by
implementing and executing more than 2400 CSR projects / programs in the areas of
Swachhta, Health, Education, Environment, Skill Development and Vocational training by
Corporate CSR and 24 work centres of the Company. Your Company has undertaken number of
flagship initiatives under Swachh Bharat Abhiyan, with an expenditure of Rs 1,844.6
million. An amount of Rs 1,320.3 million was spent towards implementing projects on
promoting education, livelihood and skill development. Another, Rs 1,307.9 million was
spent towards creating health Infrastructure and on preventive health care
programs/projects. Rest of the expenditure was towards implementing projects related to
environment sustainability, women empowerment, sports, rural development, capacity
building, etc. CSR footprints of the Company can be traced from J&K through the
project implemented by joining hands with Indian Army to seashore of Rameswaram by
executing an impactful solid waste management program. This year had also seen the Company
implementing projects worth Rs 776.3 million among the states of North-East India. A
Separate report on Corporate Social Responsibility (CSR) activities undertaken by your
Company during the year FY'18 is enclosed as Annexure B'.
Major Swachh Bharat Initiatives: At a glance :
Rs 1,844.6 million worth of CSR projects/ Program implemented across the
21085 nos. of Individual Household latrines(IHHL) constructed across India.
53 community toilets projects.
234 school toilets.
181 Water Ro Plant/ Water ATM projects.
358 Tube Wells installed.
11 Solid Waste Management projects.
14 projects on Smoke Free Village.
3 project on development and beautification of parks.
Restoration of Kunds in Varanasi:
Your Company took the responsibility of cleaning and beatification of four famous Kunds
of Varanasi namely Durga Kund, Lakshmi Kund, Lat Bhairav Kund, Karim Kund at a cost of Rs
114.6 million under Swachh Bharat Mission programme driven by Government of India. Hon'ble
Prime Minister inaugurated the Durga Kund and Lakshmi Kund at Varanasi. The project is
being implemented in partnership with National Buildings Construction Corporation Ltd and
Nagar Nigam Varanasi.
Swachh Iconic place: Clean and green initiative at Tirumala Tirupati Devastanam
As part of Government of India Initiative for Swachh iconic places, Your Company has
taken up clean and green initiative at Tirumala Tirupati Devastanam, where 7 km long
separate water pipelines is being laid for pumping treated waste water from tertiary
treatment plants to gardens along the ghat road. Also 130 cleaning machines and solid
waste management plant of capacity 30 MT per day has been installed. Apart from this,
energy saving measures like installation of SCADA system and battery operated vehicles for
pilgrims is also being introduced. Lakhs of devotees visiting this shrine will be
benefited through this project. An amount of Rs 130 million is sanctioned towards
implementing this project.
Deep Water Drilling Project along the Paleo Channels of river Saraswati
The ancient and mythological river Saraswati has been known since the Indus valley
civilization. There are several places in Haryana, Punjab and Rajasthan where evidence is
found of its existence, as the water from this river is known to surface at several
places. To tap the water of river Saraswati which is flowing several hundred meters below
the surface, Haryana Saraswati Heritage Development Board (HSHDB) approached the Company.
A survey was conducted by a team of experts from the Company to locate the paleo-channels
existing underground in the northern part of indo-gangetic plains. Accordingly, it was
agreed by the Company for drilling of 10 wells, where there is a high possibility of
tapping water. An agreement was signed with Water and Power Consultancy Services Limited
(WAPCOS) for drilling these wells. Nine out of ten wells have been successfully drilled
and producing water in good quantity.
Bio-CNG Plant at Haridwar:
Your Company has undertaken an unique initiative in Haridwar to convert cow dung to
useful fuel and value added products by setting up Bio-CNG cum Fertilizer and Bottling
Plant at Haridwar at a cost of Rs 16 million. The plant will be run by the largest
Gaushala in Uttarakhand and will help maintaining clean hygienic waste management in the
Gaushala premises. It will facilitate availability of clean environment to the local
population of Haridwar and also help in protecting the fauna i.e. 2200 non-milching cows
at Gaushala by way of making the Gaushala self-sustaining from the revenue generated from
the project. The plant will also produce organic solid and liquid fertilizers which will
be distributed among the local farmers thereby promoting organic farming.
Open Defecation Free Initiative:
As part of Hon'ble Prime Minister's dream to make our country Open Defecation Free,
your Company has taken the initiative for construction of Individual Household Latrine
across the country in partnership with district administration and other NGOs. More than
21085 IHHL has been constructed in the ONGC operational areas of Gujarat, Tamil Nadu,
Jharkhand, Assam and other states of the country at a cost of Rs 846.6 million in the last
Solid Waste Management Project at Rameswaram
With a vision to make the city of Rameswaram clean and Green, "Green
Rameswaram" initiative was launched by the Former President of India, Late Dr. A P J
Abdul Kalam. Vivekananda Kendra Vidyalaya, Nardep committed itself to turn the vision of
the former President into a reality, and started cleaning initiative along with not-for
profit organization like Hand In Hand. A Solid Waste Management project was planned by
Hand In Hand in four municipal wards of Rameswaram, located around 25 km from Ramnad GCS.
The project deliverables include setting up of robust infrastructure for solid waste
management, providing vehicles for door to door waste collection, developing and putting
in place systems and human resources for ensuring cleaning of roads, drains, collection of
garbage and waste, segregation of waste into recyclable and biodegradable categories and
processing of the waste in both the categories in a sustainable manner. Based on the
success and the impact of the first phase of the project, the second phase of the project
was extended to four wards of Thangachimadam village, which is located around 23 km from
Ramnad GCS. An amount of Rs 9.5 million has been sanctioned towards implementing the
second phase of the project at Thangachimadam Village Panchayat, along with IEC
intervention, in Rameswaram Municipality.
Clean Himalaya Initiative
Your Company is the first Company to have taken the Swachh Bharat Initiative to the
Himalayas. The Company partnered with Indian Mountaineering Foundation (IMF) to reach the
upper Himalayas where every year tons of harmful garbage was left behind by the visiting
tourists. From the mountain peaks of Himachal Pradesh to Uttarakhand, more than 13
cleaning expeditions have been undertaken as part of "Clean Himalaya Initiative"
in the last three years. Tons of garbage has been brought down and disposed in an
eco-friendly manner. An amount of Rs 8.76 million has been spent towards this initiative.
Initiatives to promote Education, Livelihood and Skill Development At a glance:
Project worth Rs 1,320.3 million implemented towards education, livelihood and
Imparted skill development training to 6058 youth and women.
Created employment opportunity for 4821 youth & women.
Spent more than Rs 192 million towards creating the infrastructure like class
rooms, hostels and smart class rooms.
Funded for 420 Ekal Vidyalayas in the remote areas of the country.
Assistance in the form of Scholarships amounting to Rs 4000/- p.m. to more than
1500 students belonging to SC/ST and BPL families across the country .
Skill Development Institute at Ahmedabad
Skill India is the vision of Hon'ble Prime Minister of India. In line with the Skill
India Mission, Ministry of Petroleum and Natural Gas has taken the initiative to set up 6
Skill Development Institutes (SDI) across the country with funding from Oil sector PSEs.
Your Company was directed to set up a SDI at Gujarat. The first batch of 90 students has
successfully completed their training in 3 different courses in March 2018. All the 90
students were successfully placed in different companies located near Ahmedabad.
Considering the success of the first batch, the number of trades will be increased from
three to nine from next year onwards benefiting 780 youth. Your Company contributed an
amount of Rs 136 million towards setting up these 6 SDIs across India.
Revival of Sanskrit Language
Sanskrit is an ancient Indian language with its origin from Old Indo-Aryan age, having
rich literature and text related to science and mathematics unknown to mankind. In order
to promote Sanskrit through Training, and to conduct Research on the ancient storehouse of
knowledge related to science, mathematics and astrology, Sanskrit Promotion Foundation
approached your Company for financial assistance to carry out work for the development of
this ancient and rich language, which has been undertaken by the Company as its CSR
initiative. The total cost of the project was Rs 57 million in the Phase I, After
successful completion of the PhaseI of the project, in September 2017, the Phase- II
of the project has been launched from November 2017, for which an amount of Rs 59 million
has been sanctioned.
Smart Gram at Daula village of Haryana
Under Smart Gram Initiative of Hon'ble President of India, various villages have been
adopted across the country. The model village development at Daula village is one such
initiative of Hon'ble President of India. As part of this initiative the Company was given
the responsibility of constructing a senior secondary school at Daula village. The 18223
sq ft school building which is currently under construction with funding from the Company
will have 12 class rooms, 2 staff rooms, Principal's chamber, three
laboratories/Multi-Purpose activity room, library, craft room and a computer room. The
total financial implication towards implementing this project is Rs 30 million.
Your Company has partnered with Bharat Lok Shiksha Parishad for reaching remote
villages across the country in its operational area for providing free education to
children through Ekal Vidyalaya'. This project covers 420 Ekal Vidyalayas, in as
many villages of rural, tribal and backward areas in 10 states. With average enrolment of
30 students per school, it is targeted to impart free basic informal education to 24,000
students, with a financial implication of Rs 19 million, for a period of two years.
Skill Development through CIPET:
Two separate projects were undertaken with CIPET for training economically
underprivileged youth in plastic technology at Bhubaneswar and Jaipur respectively. A
total of 217 youth have been trained in two different courses in tool room mechanic
operator and injection moulding machine operator. The total cost for both projects is Rs
15 million. After completing 6 months residential training, all 217 youth have been placed
at different companies related to plastic engineering thus ensuring 100% placement.
Ekalavya Centre for Organic Agricultural Research and Training:
To realise the Hon'ble Prime Minister's goal of doubling farmers' income by 2022 and
reduce the carbon footprint, Ekalavya Foundation (Ekalavya Centre for Organic Agricultural
Research and Training) formulated a project to promote organic farming through training
and capacity building at Tandur and Vikarabad Mandal of Telengana. In order to implement
this project for setting up the training institute, Ekalavya Foundation approached the
Company for financial support. The project will be immensely beneficial for increasing the
scope of organic farming in the entire Telangana and other neighboring region. This
project will help the farmers and local youth to enhance their livelihood by imparting
them employment with enhancing vocation skills. The project is being implemented in one of
the most backward mandal in the region inhabited by SCs and STs. It will benefit about
3500 farmers, 200 students and Consumers in general by way of promoting organic farming.
Your Company has sanctioned an amount of Rs 47 million for undertaking this project.
Vivekananda Centre for Yoga, Naturopathy and Research: Your Company has extended
financial support for setting up a state of the art Yoga, Naturopathy and Research Centre
at Jor Bagh, Delhi. The project has been implemented by Vivekananda Yoga Anusandhana
Samsthana (VYASA) for which the Company has sanctioned an amount of Rs 60 million. The
centre shall render services in preventive health care, disease management,
rehabilitation, evaluation, monitoring and research. People can also avail of clinical
specialty services in stress and lifestyle, pain, women health, children health, mental
health, hair and skin care, etc.
Yoga Theme Garden, Mumbai:
Your Company has provided financial support for development of India's first Yoga theme
Park, at Bandra Reclamation, Mumbai. This project is being implemented in partnership with
Ravindra Joshi Medical Foundation (RJMF) at a cost of Rs 8 million. The park has been
featured as India's first Yoga theme park. It has attractive lawn and vertical gardens.
Seven yoga postures have been depicted in the park with visual lighting on vertical green
wall. 15 feet tall statue of Yoga Guru Patanjali in Padmasana posture has been installed
in the park to motivate people. Besides all these, park has several advance features like
rain water harvesting system, irrigation system, LED lighting 20 indigenous native plants
have been used to withstand coastal weather. Around 5,00,000 residents residing in the
vicinity of the park will directly be benefited from this theme park.
S-VYASA Boys Hostel
Your Company has supported Vivekananda Yoga Anusandhana Samsthana' (VYASA) with
financial support of Rs 120 million towards construction of a 350 bed boy's hostel at
S-VYASA University campus located at Gidden Halli, Jigani Hobli, Bangalore. The hostel
will have all the latest facilities including solar lights, solar heating systems, CCTV,
lifts, interior furniture, electrical, etc. Free accommodation will be provided to ST/SC
and Tribal students of S-VYASA University whereas deserving poor students will be given
Major Health Care Initiative: At a Glance:
Rs 1,308 million worth of projects implemented towards Health Care Initiative.
Rs 3,130 million Multi- Speciality Hospital project launched at Sivasagar,
541208 Nos. door step medical treatment provided through Mobile Medical Unit in
Rs 1,000 million sanctioned towards setting up of National Cancer Institute at
Varisthajana Swasthya Sewa Abhiyan: Doorstep medical treatment for elderly, women and
This flagship CSR project implemented in partnership with HelpAge India has succeeded
in providing door step medical treatments to more than one lakh elderly citizen, women and
children through Medical Mobile Unit in remote villages in the operational areas of the
Company. The project was initially launched from 2010 to 2016 with 20 MMU's through which
more than 1.58 million treatments were provided to the needy population. Based on the
impact assessment report of the first phase, Your Company accorded approval for extension
of the project till 2019 along with engaging 11 new MMUs. As a result, today 31 MMUs are
providing door step medical consultation, treatments and medicines to lakhs of senior
citizen, women and children residing in remote corners of our country. The total amount
sanctioned towards implementing this project from 2010 to 2019 is Rs 364 million. This
project has been successful in providing more than 2.5 million treatments.
National Cancer Institute, Nagpur
The National Cancer Institute at Nagpur, will be 455 bed quaternary care oncology
centre. The centre will provide comprehensive cancer treatment, patient care and research
through sustainable charity. In addition to providing general cancer care, the institute
will also create specialty groups of highly skilled professionals. The institute also
plans to start a University recognized training courses for nurses, paramedical staff and
medical fraternity including super specialty training in Oncology and PhD programs.
Your Company has extended support of Rs 1,000 million for construction of first, second
floor and procurement of medical equipment for radio diagnostic facilities (like MRI, Citi
scan, ultrasound, mammography, x-ray and bone marrow density meter, etc.) for the
hospital. The equipments have already been commissioned on the ground floor of the
hospital and are already being used for investigations of patients. Primary beneficiaries
of the project will be patients referred by NGOs, local physicians in and around 500 km
radius of Nagpur. It is expected to benefit people from Vidharbha region of Maharashtra,
parts of Chhattisgarh, Madhya Pradesh and Andhra Pradesh.
ONGC MRPL Lady Goschen Hospital, Mangalore
The Lady Goschen Hospital established in 1849, at the heart of Mangalore City is the
only hospital in entire Konkon region which provides exclusive pre-natal and post natal
care. On an average 500 women are admitted and treated for pre/ post natal care every
month. The 167 year old hospital building was in a dilapidated condition and due to
increase inflow of patient there was an urgent need for additional facilities. District
administration of Mangalore approached the Company for financial support to start a new
wing in the hospital campus. Your Company extended financial support of Rs 128 million
towards construction of new ONGC-MRPL Wing' for Government Lady Goschen Hospital,
Mangalore. The new hospital building is scheduled to be commissioned in 2018.
Rural Development Projects At a glance:
Rs 223 million worth of rural development projects undertaken.
Undertaken infrastructure development work for two Model Village project Under
Sansad Adarsh Gram Yojna at Yigi Kaum village in Arunachal Pradesh and Natun Jelom
village, in Assam.
Undertaken 67 different projects for strengthening rural roads near ONGC
8853 Solar street lights sanctioned in 2017-18 for lighting the roads of remote
villages across the country.
Model Village Development for Revival of Kor-bong Community at Tripura:
With only 120 surviving population, the Korbong community of Tripura was on the verge
of extinction. To save this fast disappearing community, Your Company partnered with
Tribal Engineer's Society to develop this village into self-sustained model. As part of
this project, permanent infrastructure was developed for community centre, market shed,
toilet blocks and irrigation facilities. Also, livelihood opportunities was created for
piggery, goatery, fishery, duck rearing, etc. It was a holistic intervention for revival
of the Korbong community at a financial implication of Rs 6.5 million.
ONGC Solar Street Lights project:
Your Company has sanctioned 8853 solar street lights worth Rs 177 million for lighting
remote villages of the country in the last one year. MNRE recognized partner are empaneled
by the Company for installing the solar street lights as per the predefined
specifications. These agencies also ensure maintenance of these street lights through AMC
Development of Mangalajodi, Odisa.
Chilika lake, the largest brackish water lake and a unique bio-diversity of our country
attracts millions of migratory birds from across the globe. Mangalajodi, a tiny village
located at the backwater of Chilika lake has been the host to these birds. Your Company is
in the process of taking up a project with UNESCO to help declare Chilika lake as a World
Heritage site. But, prior to taking up the project with UNESCO, the Company has taken up a
360 degree approach to develop Mangalajodi village. Based on need assessment, multiple CSR
interventions have been taken up which include open defecation free Initiative by
constructing 1300 Individual Household Latrine, lightning the dark alleys of the village
by installing 200 Solar lights, creating drinking and portable water facilities, providing
12 nos. of boats to the villagers for creating sustainable livelihood, construction of 40
nos. of school toilets and several livelihood generation and infrastructure development
project in the last one year. An amount of Rs 63 million has been sanctioned towards
undertaking these projects.
Northeast Vision 2030
In line with Hon'ble Prime Minister's vision for Northeast, Ministry of Petroleum and
Natural Gas has released the
Hydrocarbon Vision 2030 document for Northeast India in Feb' 2016. The vision document
inter alia focuses on the development of the region through CSR initiatives. Your Company
having operational presence in the northeast has rolled out major CSR projects in the
region. Since, the release of the Vision 2030 document, your Company has incurred an
expenditure of Rs 1,522 million towards implementing CSR projects across northeast in
different focus areas like Skill Development, Health Care, Education, Swachh Bharat,
Environment, Bio-Diversity, etc. Due importance is given by your Company towards creating
Open Defecation Free Village under which more than 11,165 IHHLs have been constructed
across 4 district of Assam at a cost of 134 million. In Arunachal Pradesh, your Company
has undertaken many rural Infrastructure development and Health Care projects in the last
two years amounting to Rs 78 million. As part of the holistic approach towards skill
development, Multi-Purpose Skill Development and Community centres are being set up at
Natun Jelom and Halflong at a cost of Rs 13.7 million, besides undertaking skill
development training in computer education, welding, gas cutting, video documentation,
fruit processing, etc. A documentation centre to preserve the local art, culture and
heritage is being set up at Roing in Arunachal Pradesh in partnership with RIWATCH at a
cost of Rs 8 million. Hostels and school buildings worth more than Rs 50 million are being
constructed for both boys and girls across different remote location of Assam, Arunachal
Pradesh and Tripura. The "Yoganilayam" project being undertaken with Seva Bharti
Purbanchal will be a hub for promotion of Yoga in northeast. This centre is being set up
at Abhoypur in North Guwahati at a cost of Rs 26 million.
One of the major flagship Health Care initiative launched for the benefit of entire
population of Upper Assam is the Multi Speciality Hospital project at Sivasagar. This is
biggest ever CSR project being undertaken by the Company. After thoroughly analysing the
alarming health care scenario of Assam, the Company accorded approval for setting up a 362
bed Multi-Specialty Hospital at Sivasagar to be implemented in three phases, at an
estimated cost of Rs 3161 million. The prime objective of the hospital is to provide
quality health care services to the people of Northeast at an affordable cost. The charges
for treatment will be, as low, as 70% of the market price and further discount of 50% will
be provided to economically disadvantaged people. The project will be implemented in three
phases, of which an amount of Rs 991 million has already been sanctioned for the first
phase, which is scheduled to be completed by July 2019. Some of the other projects being
implemented by your Company in Northeast are:
B. Ed. College, Nirjuli:
Your Company is supporting Vivekananda Kendra Vidyalayas Arunachal Pradesh Trust for
setting up a B Ed College at Nirjuli for training of teachers. The construction work is in
progress and classes have already started in a temporary building. An amount of Rs 59
million has been sanctioned towards implementing this project. The construction of the B
Ed College is scheduled to be completed by end of 2018.
Green Hub Project: This is an unique initiative to train 20 youth of North East
every year, in wild life videography and documentation. The main objective of the project
is to create a team of environment enthusiasts having expertise in conservation. In the
last three years 60 youth and women have been trained. The Centre was recently been
conferred with Manthan Awards in the category of Environment & Green Energy for
leveraging the power of youth to conserve biodiversity through a digital platform. An
amount of Rs 6 million has been sanctioned towards implementing this project in the last
Water Hyacinth project for rural women of Sivasagar:
Through this CSR initiative of ONGC, 50 women of Sivasagar district have been trained
by NEDFi to develop product from water Hycainth. 20 of these women were further trained by
experts from National Institite of Design to make superior products, as per the demand of
the market. A facilitation centre has been set up at Nimajan in Sivasagar and a retail
outlet has been opened for selling the finished products. The women trained under this
program are currently imparting training to others. An amount of Rs 3.3 million has been
sanactioned towards implementing this project.
ONGC Super 30:
Your Company has set up a ONGC Super 30 centre at Sivasagar to train 30 aspiring
students every year to get admission in IITs and other premier engineering institutes of
our country. Total 85 students in three batches have already completed the training since
2014 out of which 18 secured admission in institutes like IIT's and NIT's, 54 got
admission in other premier institutes and the remaining 13 students opted for other
courses. The fourth batch of 30 students are currently undergoing training at Sivasagar,
"ONGC Super 30 centre". The project is being undertaken in partnership with an
NGO Centre for Social Leadership. An amount of Rs 28 million has been sanctioned towards
this project since the last four years.
An unique initiative of addressing a grassroot level issue at Baramulla
Indian Army, besides securing the international boarders and ensuring security for the
common people of Jammu & Kashmir has been consistently working towards channelizing
the energy of the youth towards nation building. In order to support their initiative for
empowering the local women and youth of Baramulla, the Company funded skill development
programs of Chinar 9 Jawan Club, of Indian Army.
As part of this initiative 120 Kashmiri women from Baramulla and neighbouring areas
have been trained in Fashion Designing, Cutting & Sewing at a cost of Rs 3.4 million.
Further, through another Skill development program, 150 youth in 'Hospitality' and 150
women in Retail Sales' have been imparted training at a cost of Rs 1.7 million. Out
of the total 300 students, trained in Hospitality and Retail Sales, 201 (boys & girls)
have already got placement in different industries. Some of them are placed in premier
hotels like Taj and Maurya sheraton. These skill development trainings have been imparted
through a NGO named REACHA. Prior to these initiatives in Jammu & Kashmir, the Company
took the initiative to construct 100 IHHLs in the international border villages of Bobiya,
Ladwal and Karol Bidho falling under Mahreen block of Kathua District in Jammu &
At Kalgai Village, near Uri three houses of local residents were devastated while
neutralizing four terrorists by the Indian Army. As a result, these families belonging to
economically weaker section of the society became homeless overnight. Considering the
tough situation under which these villagers were exposed to after devastation of their
house, your Company extended financial support for rebuilding of these three houses
through the Indian Army. The reconstruction of the three houses was completed in record
time of five months. An amount of Rs 1.6 million was sanctioned towards implementing this
Consistent with the trend in preceding years, your Company, its various operating units
and its senior management have been recipients of various awards and recognitions. Details
of such accolades is placed at Annexure- C'.
32. Regulators or Courts order
During the Financial year 2017-18, there is no order or direction of any court or
tribunal or regulator which either affects Company's status as a going concern or which
significantly affects Company's business operations.
33. Directors' Responsibility Statement
Pursuant to the requirement under Section 134(3) (c) of the Companies Act, 2013, with
respect to Directors' Responsibility Statement, it is hereby confirmed that: (i) In the
preparation of the annual accounts, the applicable accounting standards have been followed
and there is no material departures from the same; (ii) The Directors have selected such
accounting policies and applied them consistently and made judgments and estimates that
are reasonable and prudent, so as to give a true and fair view of the state of affairs of
the Company as at March 31, 2018 and of the profit of the Company for the year ended on
that date; (iii) The Directors have 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; (iv) The Directors have prepared the annual accounts of the
Company on a going concern' basis; (v) The Directors have laid down internal
financial controls which are being followed by the Company and that such internal
financial controls are adequate and are operating effectively; and (vi) The Directors have
devised proper systems to ensure compliance with the provisions of all applicable laws and
that such systems are adequate and operating.
34. Corporate Governance
Your Company has taken structured initiatives towards Corporate Governance and its
practices are valued by various stakeholders. The practices emanate from the need to
position multi-layered checks and balances at various levels to ensure transparency of its
operations in the decision making process.
In terms of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015,
a report on Corporate Governance for the year ended March 31, 2018 along with a
certificate from the Company's Statutory Auditors confirming compliance of conditions,
forms part of this report. Your Company has implemented the mandatory Guidelines of
Department of Public Enterprises (DPE), Government of India, on Corporate Governance to
the maximum extent possible.
Your Company has formulated and uploaded the following policies/codes on its website in
line with the Companies Act, 2013 and the Listing Regulations: i. Code of Conduct for
Board Members and Senior Management Personnel; ii. Related Party Transactions (revised
w.e.f. 09.02.2018); iii. Material Subsidiary Policy; iv. The Code of Internal Procedures
and Conduct for prohibition of insider trading in dealing with the securities of ONGC; v.
Policy on Materiality for Disclosure of events; vi. Corporate Policy on Preservation of
Documents and their archiving; vii. Policy for Training of Directors; viii. Dividend
Distribution Policy; ix. Fraud Prevention Policy; x. CSR and Sustainability Policy; and
xi. Risk Management Policy. In line with global practices, your Company has made available
all information, required by investors, on the Company's corporate website
www.ongcindia.com In line with the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015, your Company has also implemented other measures of
Corporate Governance (mandatory/ voluntary) which have been brought out in the Corporate
Governance Report and are as follows:
i. Whistle Blower Policy/ Vigil Mechanism: A total of 41 Protected Disclosures
till March 31, 2018 have been processed through the Whistle Blower mechanism of your
Company which was implemented from December 01, 2009. The Policy ensures that a genuine
Whistle Blower is granted due protection from any victimization. The Policy is applicable
to all employees of the Company and has been uploaded on the intranet of the Company. In
addition, the Company has a full-fledged Vigilance Department, which is headed by Chief
Vigilance Officer (CVO) who holds the rank of a Functional Director of the Company. With a
view to maintain independence, the CVO reports to the Chief Vigilance Commissioner of the
Government of India.
ii. Enterprise-wide Risk Management (ERM) framework: In line with the requirements
of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, your
Company has developed and rolled out a comprehensive Enterprise-wide Risk Management (ERM)
Policy throughout the organization. The Audit & Ethics Committee periodically reviews
the risk assessment and minimization process .
The Risk Management policy of your Company is as follows:
"ONGC shall identify the possible risks associated with its business and commits
itself to put in place a Risk Management Framework to address the risk involved on an
ongoing basis to ensure achievement of the business objective without any interruptions.
ONGC shall optimize the risks involved by managing their exposure and bringing them in
line with the acceptable risk appetite of the Company"
The Board of Directors have constituted a Board Level Risk Management Committee in
terms of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Till
date four meetings of the Committee have been held.
iii. Board and Committee Meetings: - Details of Board and Board Level Committee
Meetings are placed under Corporate Governance Report, which form part of this report.
iv. Meeting of Independent Directors: Three Meetings of Independent Directors
were held during FY'18.
v. Certificate of Independence by Independent Directors: The Independent Directors
have submitted declaration that they meet the criteria of Independence as per Section
149(6) of the Companies Act, 2013.
35. St atutory Disclosures
Your Directors have made necessary disclosures, as required under various provisions of
the Act and the SEBI (Listing Obligations & Disclosure Requirements) Regulations,
Extract of Annual Return
As per requirement of section 92(3) of the Companies Act, 2013, the extract of the
annual return in form MGT-9 is placed at Annexure-D.
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 do not apply in view of the
Gazette notification dated 05.06.2015 issued by Government of India, Ministry of Corporate
Affairs. The terms and conditions of the appointment of Functional Directors are subject
to the applicable guidelines issued by the Department of Public Enterprises, Government of
India. The salary and terms and conditions of the appointment of Company Secretary, a KMP
of the Company, is in line with the parameters prescribed by the Government of India.
36. En ergy Conservation
The information required under section 134(3)(m) of the Companies Act, 2013, read with
the Companies (Accounts) Rules, 2014, is annexed as Annexure E'.
37. A udit and Ethics Committee
In compliance with Section 177(8) of the Companies Act, 2013, the details regarding
Audit & Ethics Committee is provided under Corporate Governance report which forms
part of this Annual Report. There has been no instance where the recommendations of the
Audit & Ethics Committee have not been accepted by the Board of Directors.
The Statutory Auditors of your Company are appointed by the Comptroller & Auditor
General of India (C&AG). M/s. Dass Gupta & Associates, New Delhi, M/s. MKPS &
Associates, Mumbai, M/s. Lodha & Co., Kolkata, M/s. PKF Sridhar & Santhanam LLP,
Chennai, M/s. Khandelwal Jain & Co., Mumbai and M/s. K.C. Mehta & Co., Vadodara,
Chartered Accountants were appointed as Joint Statutory Auditors for the financial year
2017-18. The Statutory Auditors have been paid a total remuneration of Rs 36.55 million
(previous year Rs 43.41 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 actually incurred.
39. Auditors' Report on the Accounts
The comments of Comptroller & Auditor General of India (C&AG) form part of this
Report and is attached Annexure F'. There is no qualification in the Auditors
Report on the Financial Statements of the Company.
40. Secretarial Audit
In terms of Section 204(1) of the Companies Act, 2013, the Company has engaged M/s P P
Agarwal & Co., Company Secretaries in whole-time practice, as Secretarial Auditors for
conducting Secretarial Compliance Audit for the financial year ended March 31, 2018. Their
report has been annexed to the Corporate Governance Report.
41. Cost Audit
Six firms of Cost Accountants were appointed as Cost Auditors for auditing the cost
records of your Company for the year ended March 31, 2018 by the Board of Directors. The
Cost Audit Report for the year 2016-17 has been filed under XBRL mode on September 11,
2017 which was well within the due date of filing.
Further, the required cost records as specified under the Companies Act, 2013 are
prepared and maintained by the Company.
Policy for Selection and appointment of Directors' and their remuneration.
Your Company being a Government Company, the provisions of Section 134(3) (e) of the
Companies Act, 2013 do not apply in view of the Gazette notification dated June 05, 2015
issued by Government of India, Ministry of Corporate Affairs.
The provisions of Section 134(3) (p) of the Companies Act, 2013 relating to evaluation
of Board/ Directors do not apply to your Company since necessary exemptions are provided
to all government companies. The Company being a Government Company, the provisions
relating to Performance Evaluation of Directors stand exempted. The proposal for similar
exemption under the Listing Regulations is under the consideration of the SEBI.
Appointments / Cessation etc.
Since the 24th Annual General Meeting held on September 27, 2017, Smt. Ganga Murthy and
Shri Sambit Patra were inducted as Independent Director(s) of the Company with effect from
September 23, 2017 and October 28, 2017 respectively.
Shri Dinesh Kumar Sarraf, Chairman & Managing Director, superannuated from the
services of the Company on September 30, 2017. The Board places on record its appreciation
for his contribution during his tenure. Shri Shashi Shanker, has been appointed as the
Chairman & Managing Director of the Company w.e.f. October 01, 2017, who was earlier
appointed as Director (Technical & Field Services). Shri Adapa Krishnarao Srinivasan,
has ceased to be the Director (Finance) and CFO of the Company due to superannuation on
October 31, 2017. The Board places on record its appreciation for his contribution during
his tenure. Shri Subhash Kumar, has been appointed as Director (Finance) and CFO of the
Company w.e.f January 31, 2018.
Shri Tapas Kumar Sengupta, Director (Offshore) has ceased to be the Director (Offshore)
of the Company due to superannuation on December 31, 2017. The Board places on record its
appreciation for his contribution during his tenure. Shri Rajesh Kakkar, has been
appointed as the Director (Offshore) of the Company w.e.f. February 19, 2018. Shri Ved
Prakash Mahawar, has ceased to be the Director (Onshore) of the Company due to
superannuation on February 28, 2018. The Board places on record its appreciation for his
contribution during his tenure. Sanjay Kumar Moitra, has been appointed as the Director
(Onshore) of the Company w.e.f. April 18, 2018. Shri Desh Deepak Misra has ceased to be
Director (HR) of the Company due to superannuation on June 30. 2018. The Board places on
record its appreciation for his contribution during his tenure.
The strength of the Board of Directors of the Company as on March 31, 2018 was 16
comprising 5 Executive Directors (Functional Directors including CMD) and 11 Non-Executive
Directors including two Government nominees and Nine Independent Directors. Though there
were two vacancies for two Executive Directors, the composition of the Board complied with
the requirements under the provisions of Companies Act, 2013 as well as of Listing
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 Statutory Auditors, Cost Auditors and Comptroller & 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 grow and
||On behalf of the Board of Directors
||Chairman and Managing Director