Oil & Natural Gas Corpn Ltd.
|BSE: 500312||Sector: Oil & Gas|
|NSE: ONGC||ISIN Code: INE213A01029|
|BSE LIVE 19:49 | 19 Oct||172.15||
|NSE 19:48 | 19 Oct||172.05||
|Mkt Cap.(Rs cr)||220,924|
|Mkt Cap.(Rs cr)||220924.23|
Oil & Natural Gas Corpn Ltd. (ONGC) - Director Report
Company director report
It gives me great pleasure to present on behalf of the Board of Directors of yourCompany the 22nd Annual Report on the business and operations of Oil AndNatural Gas Corporation Ltd. (ONGC) and its Audited Statements of Accounts for the yearended March 31 2015 together with the Auditors' Report and Comments on the Accounts bythe Comptroller and Auditor General (CAG) of India.
Your Company along with its group companies has registered yet another year ofsustained performance. Exploration and production of crude oil and gas our core businessset various milestones during the year. Besides that performance in the areas where ONGChas engaged substantially also witnessed success with positive contributions.
ONGC has steadfastly focussed on organic growth through its exploratory endeavours andbuild a healthy reserve profile for the future. During FY'15 the Company registeredReserve Replacement Ratio (RRR) of 1.38 (with 2P reserves) with 22 oil and gas discoveriesin various basins of the country. This has been possible because of extensive explorationin known basins as well as frontier plays. Domestic crude oil and natural gas productionof ONGC along with its share in the domestic joint ventures (PSC-JVs) during FY'15 hasbeen 49.46 million metric tonnes of oil and oil equivalent gas (MMtoe) which is about 2.7%lower than FY'14 production (50.84 MMtoe). On standalone basis crude oil production fromONGC operated fields has been 22.26 million metric tonnes (MMT) against production of22.25 MMT during FY'14. This goes to the credit of your Company that production declinecould be arrested due to prudent reservoir management practices adopted in the maturedfields and bringing new fields on stream.
Major Highlights: FY'2014-15
Salient highlights with respect to performance of your Company during FY'2014-15 are asbelow:
22 oil & gas discoveries in domestic acreages with accretion of 61.05 MMToeof 2P reserves.
RRR (2P) for FY'2014-15 was 1.38; in excess of One consecutively for 9 years.
Despite natural decline in matured fields crude oil production from domesticfields maintained at 25.94 MMT Major upside in production was registered from the Westernoffshore fields with incremental oil gain of 4.3%.
New and marginal fields contributed about 12.3% of crude oil (2.74 MMT out of22.26 MMT from domestic operated fields) and 15.2% of natural gas production (3.35 BCM outof 22.02 BCM from domestic operated fields). 34.5% of crude oil production was contributedby the IOR/EOR and redevelopment schemes.
The gross revenue from operations during FY'2014-15 has been Rs830935 million;1.3% lower than FY'14.
^362996 million contribution towards sharing the under-recoveries of OMCsduring FY'2014-15 impacting ONGC's Profit Before Tax (PBT) by Rs309596 million and ProfitAfter Tax (PAT) by Rs204370 million. Despite this Net Profit has been Rs177330 million;19.7% lower than the profit during previous year FY'2013-14.
Hon'ble Prime Minister Mr. Narendra Modi dedicated the 2nd unit of OTPC PowerPlant at Palatana Tripura to the Nation on December 1 2014. The 726.6 MW gas-basedpower plant of ONGC Tripura Power Company is the biggest project in North East part ofIndia in terms of investment in E&P gas and power transmission. It is also creditedas the largest Clean Development Mechanism (CDM) projects of the world.
Your Company decided to invest Rs249000 million in five major projects inestern Offshore for sustaining crude oil and gas production.
HRD process platform of ONGC was installed successfully on January 15 2015using the state-of-the-art Float-Over technology. This is the first such endeavour in thehistory of ONGC where installation of an add-on platform with the existing operationalplatform has been completed successfully.
The operationalization of FPSO at Cluster-7 project on February 26 2015resulted in doubling the crude oil production from around 7500 barrels per day (bpd) toaround 15000 bpd.
ONGC Videsh Ltd. (100% subsidiary of your Company) registered 8.87 Mmtoe ofO+OEG production during FY'2014-15 against 8.36 Mmtoe during FY'2013-14. Production upsideprimarily came from BC-10 field in Brazil blocks in Myanmar and the Sakhalin project inRussia.
Despite higher production ONGC Videsh's Revenue during FY'2014-15 has been downby 14% due to lower oil prices globally. PAT has been down by 57% due to lower oil pricesexchange losses higher financing cost and higher depletion charges.
During the year ONGC Videsh made a maiden venture in New Zealand withexploratory acreages.
MRPL commissioned all the units under Phase-III refinery expansion projectduring the year and registered the highest-ever thru-put of 14.65 MMT
Turnover of MRPL for the year was down by 17% due to lower products' prices andit registered a net loss of Rs11700 million against Net profit of Rs6010 million inFY'2013-14 due to exchange and inventory losses.
Besides excellence in core operational activities your Company positioned itself as avaluable corporate citizen through its mapped defined actions towards inclusive growth ofthe Society/Community and green initiatives as per the commitment and our performance wasglobally recognized. ONGC was ranked at 183rd position among 2000 top globalcompanies in Forbes Global 2000 list published in May'2015. In the global oil andgas operation industry ONGC has moved up three places to occupy the 18thposition. ONGC has been ranked as the Top energy company in India in the coveted Platt'sTop 250 Global Energy Company Rankings 2014. ONGC improved upon its global ranking bya notch to be positioned 21st among the global energy majors. ONGC has alsomaintained its position as the 3rd largest Exploration and Production (E&P)company in the world. In the latest Newsweek Green Rankings the world's mostrecognized assessment of corporate environmental performance ONGC has made a quantum leapto be ranked 217 globally (it was positioned 386th in 2012 Green rankings). Thecompany now stands third amongst only seven Indian companies named in the prestigiouslist.
During the year 2014-15 ONGC has made 22 Oil and gas discoveries in domestic acreages(operated by ONGC). Out of 22 10 discoveries are in Offshore and 12 in Onshore; 10discoveries were made in the new prospects whereas 12 were new pool discoveries. 7discoveries were made in NELP blocks and 15 in nomination blocks.
Two discoveries (Rudrasagar-184 & Gandhar-699) during
2014-15 in nomination blocks have already been put on production and efforts are on forbringing the other discoveries on production as early as possible. 7 discoveries in NELPblocks (5 Onland 2 Offshore) are governed by the PSC guidelines and appraisal/development activities will be taken up keeping in view the timelines of the respectiveblocks. In addition to these discoveries exploratory wells conclusively tested and provedto be hydrocarbon bearing will help in field growth of existing fields. Details of thediscoveries are as under:
* In NELP blocks
Details of the discoveries in NELP blocks (since inception till 01.04.2015)
Out of the 114 NELP blocks awarded to/ acquired by ONGC as operator currently ONGC isoperating in 49 blocks balance 65 blocks have been relinquished. Exploration/ appraisalprogramme is underway in all the active blocks. A total of 47 discoveries as on date (16in deep-water 13 in shallow water and 18 in onland) have been made by ONGC in 22 of theseNELP blocks (6 deep-water 6 shallow water & 10 onland). Commencement of productionfrom these discoveries is governed by stipulations laid down in the respective PSCs and isto be taken up after successful completion of appraisal programme followed by submissionof DOC and approval of Field Development
Plan. ONGC has put three NELP Blocks on Commercial Production:
a. NELP Block CB-ONN-2004/1 (Karannagar)
Onshore NELP Block CB-ONN-2004/1 (Karannagar) located in Ahmedabad was put oncommercial production on 24.03.2015 within 24 hours of getting the Mining Lease. This NELPblock was awarded to consortium of ONGC and GSPC in VI round of NELP bidding in 2007. ONGCis the operator of block with 60% participatory interest.
b. NELP block CB-ONN-2004/2 (Vadatal)
Vadatal-1 in the NELP block CB-ONN-2004/2 (Vadatal) was put on production on March 262015. The NELP block CB-ONN-2004/2 was awarded to a consortium of ONGC and GSPC in VIround of NELP bidding in 2007. ONGC is the operator of the block (PI: 55%) with partnerGSPC (PI: 45 %.).
c. NELP block CB-ONN-2002/1 (West Patan)
West Patan #3 well in the NELP block CB-ONN-2002/1 (est Patan) was put on commercialproduction on 31.03.15 on the same day of getting the Mining Lease from the Govt. ofGujarat. The block CB-ONN-2002/1 covering 135 sq. km and falls in the northern part ofthe Cambay Basin and is located west of Patan town in North Gujarat.
Reserve accretion & Reserve Replacement Ratio (RRR)
Continuing exploration in challenging and frontier areas your company has accreted215.65 million metric tonnes of oil equivalent (MMtoe) of In-place volume of hydrocarbonin the domestic basins (operated by ONGC). As on 01.04.2015 in-place hydrocarbon volumeof ONGC as a group stands at 9283.84 MMtoe; up 4.2% from FY'2013-14 figure of 8912.81MMtoe. The ultimate reserves (3P) accretion in domestic area (ONGC operated) duringFY'2014-15 has been 70.98 MMtoe and 2P reserve accretion has been 61.06 MMtoe. Totalreserve accretion during 2014-15 in domestic basins including ONGC's share in PSC JVsstands at 60.03 MMtoe. Voluntary disclosures in respect of Oil & Gas Reservesconforming to SPE classification 1994 and US Financial Accounting Standards Board(FASB-69) have been made by your Company.
The following table gives the details of reserve accretion (2P) for the last 5 years indomestic basins as well as from the overseas assets:
Note: Reserve accretion reported in terms of2P reserves
Statement of Reserve Recognition Accounting (RRA)
Reserve Recognition Accounting is a voluntary disclosure towards recognizing income atthe point of discovery of reserves and seeks to demonstrate the intrinsic strength of anorganization engaged in exploration and production of hydrocarbons with reference to itsfuture earning capacity in terms of current prices for income as well as expenditure. Thisinformation is based on the estimated net proved reserves (developed and undeveloped) asdetermined by the Reserves Estimates Committee of the Company.
As per FASB-69 on disclosure about Oil and Gas producing activities publicly tradedenterprises that have significant Oil and Gas producing activities are to disclose withcomplete set of annual financial statements the following supplemental information:
a) Proved Oil and Gas reserve quantities
b) Capitalized costs relating to Oil and Gas producing activities
c) Cost incurred for property acquisition exploration and development activities
d) Results of operations for Oil and Gas producing activities
e) A standardized measure of discounted future net cash flows relating to proved Oiland Gas reserve quantities
Your Company has disclosed information in respect of (a) to (d) above in the AnnualFinancial Statements.
Your Company has also made voluntary disclosure on standardized measure of discountedfuture net cash flows relating to proved oil and gas reserve at Annexure-A' to thisreport as statement of Reserve Recognition Accounting (RRA).
Oil & Gas production
During FY '15 your Company retained its position as the largest producer of oil andgas in the country and contributed 69 per cent of oil and 70 per cent of natural gasproduction of the country from its domestic operations. On standalone basis in FY'15ONGC's domestic crude oil production registered 22.26 MMt against 22.25 MMt in FY'14reversing the production decline in domestic fields. The major contribution came fromestern Offshore which produced 4.3 per cent more than the production during last year
Details of crude oil and natural gas production from domestic basins along with that ofValue Added Products (VAP) are as below:
Oil & Gas production of ONGC Group including PSC-JVs and from overseas Assets forFY'15 has been 58.33 MMtoe (against 59.21 MMtoe during FY'14).
Out of the total production of 31.47 MMT of crude oil 70.8 per cent production camefrom ONGC operated domestic fields 17.5 per cent from the overseas assets and balance11.7 per cent from domestic joint ventures. As far as natural gas production is concernedmajority of production (82 per cent) came from ONGC operated domestic fields 12.4 percent from overseas assets and 5.6 per cent from domestic joint ventures.
Production from overseas assets
ONGC Videsh has thirteen (13) producing assets in ten countries - Venezuela (1)Brazil (1) Colombia (1) Sudan (1) South Sudan (2) Syria (1) Vietnam (1) Mayanmar(2) Russia (2) and Azerbaijan (1).
Total production from these overseas assets during FY'15 has been 8.87 MMtoe of O+OEG(Crude oil: 5.53 MMT & Gas: 3.34 BCM).
Ajerbaijan has contributed 12% as compared to around 0.1% last year. Resumption ofoperations in South Sudan & Sudan has also contributed to this year's increased volumecontributing 13.2% this year as compared to 8.2% last year. Russia & Vietnam continuedto be the biggest contributor to overseas production volume with 29.4% and 23%respectively.
Unconventional sources of energy
ONGC plans to continue its endeavor for exploration and development of Unconventional& other resources like Shale Gas CBM etc. ONGC has prioritized suitable actions forexploration and exploitation of Non-Conventional and Alternate Sources of energy which hasthe potential to change the energy business landscape in the country as it is happening inthe other parts of the world. The initiatives by ONGC in these areas are summarized below;
a. Shale Gas
ONGC has the distinction of establishing the first flow of shale gas in the country on25th January 2011 from RNSG#1 well (R&D Pilot Project Durgapur).
ONGC has chalked out plan of drilling of pilot shale gas and oil wells in most of theidentified blocks in CambayKrishna-GodavariCauvery and Assam &Assam-Arakan Basins.During October 2013
Government of India brought out shale gas policy which allows National Oil Companiesviz. ONGC and OIL to initiate shale gas and oil assessment activities in their allocatednomination blocks in phased manner. As per the new Policy 50 nomination PML blocks havebeen identified in four Basins - 28 PMLs in Cambay 3 PMLs in A&AA 10 PMLs inKrishna-Godavari and 9 PMLs in Cauvery basins for Shale Gas assessment within three yearperiod of Phase-I. A total of 57 pilot/assessment wells are to be drilled by April 2017
During 2014-15 ONGC has drilled five exploratory wells for shale gas exploration (4dual and 1 exclusive) in Cambay Cauvery Krishna-Godavari and Assam-Arakan Basins andsamples have been collected for assessment of Shale Gas potential. Most of the studies inwells drilled last year have been completed and the integration/ assessment exercise is inprogress. Based on the review of data collected in wells JMSGA and GNSGA prospectiveintervals have been identified in Cambay Shale which are planned to be hydro-fracturedshortly. Presently 2 Shale gas wells (GNSGB & GNSGC Cambay Basin) and 1conventionalwell with dual objective (WPGAAKG Basin) are under drilling.
b. Coal Bed Methane (CBM)
Of the total thirty-three CBM Blocks awarded by GOI to various operators through fourrounds of bidding and nomination ONGC was awarded nine CBM blocks. Due to poor CBMpotential concluded on the basis of the data generated in the exploratory activitiesfive Blocks viz. Satpura (Madhya Pradesh) Wardha (Maharashtra) Barmer-Sanchor(Rajasthan) North Karanpura (est) and South Karanpura (Jharkhand) have been relinquished.
Currently ONGC is operating four CBM Blocks i.e. Jharia Bokaro North Karanpura(Jharkhand) and Raniganj (West Bengal)FDP of which has been approved. Nearly 400 wellsand 2000 hydro-fracturing jobs have to be carried out in the coming 4-5 years as pertimelines of the CBM Contract. In view of the mammoth and time bound task ONGC is in theprocess of farming out its participative interest (PI) to experienced CBM players throughformation of JV Farm out Agreement (FoA) for North Karanpura Block has been signed onOctober 7 2014 with M/s Prabha Energy Pvt. Ltd (PEPL) with assignment of 25% PI fromONGC's share. Documents have been submitted to DGH for Government's approval of PIassignment. Joint Venture for farming out in Bokaro Block is being negotiated. Furtheroffers for formation of Joint Venture for Jharia and Raniganj blocks are being invited.
Sale of incidentally CBM gas from existing wells at Parbatpur of Jharia block iscontinuing and as on April 1 2015 cumulative gas supply has been
c. Underground Coal Gasification (UCG)
ONGC with GIPCL selected Vastan Mine block site in Gujarat as an R&D project toestablish UCG technology. All the ground work and inputs for construction andimplementation of UCG Pilot Project at Vastan has been completed and further developmentis awaiting award of Mining Lease by Ministry of Coal (MoC) GoI.
Further a number of sites have been jointly identified by ONGC & Neyveli LigniteCorporation Limited (NLC) for studying their suitability to UCG. These are Tadkeshwar inGujarat and Hodu-Sindhari & East Kurla in Rajasthan. One more site was jointlyidentified by ONGC & GMDC viz. Surkha in Bhavnagar district Gujarat. The data of allthe fields have already been analyzed for evaluating the suitability of these sites forUCG. All the sites have been found suitable for UCG exploration.
Oil & Gas Projects
In recent years your Company took up 15 projects for development of 39 new/marginal oiland gas fields with an investment of ^386024 million. Out of these 15 projects 11projects have already been completed. Production from development of G-1 & GS-15fields has already commenced. Rest three projects Development of WO-16 Cluster C-26Cluster and B-127 Cluster are under implementation and are expected to be completed inFY'17. Further Improved Oil Recovery (IOR) Enhanced Oil Recovery (EOR) and redevelopmentprojects were also taken up by your Company for prudent reservoir management and arrestingdecline from matured fields. 21 of 26 such projects have so far been completed. Twoprojects i.e. "Heera & South Heera Redevelopment Project" and"Development of Western Periphery of Mumbai High South" project is likely to becompleted by Mid FY'16 and the remaining three projects i.e. "Redevelopment ofMumbai High North Phase-III" "Redevelopment of Mumbai High SouthPhase-III" and "Additional development of Vasai East" will be completed bythe year 2017-18.
Details about the projects completed during the year 2014-15 new projects taken up aregiven as below:
Oil and Gas projects completed during FY'2014-15
The following eight major field development and other projects were completed duringthe year 2014-15:
Projects brought to production in FY'2014-15
Production commenced from following six projects during the year
Oil and Gas projects approved by ONGC Board during FY'2014-15
1. Financial Results
Despite volatile markets and sharing under-recoveries of Rs 362996 million during theyear 2014-15 your Company has earned a Profit After Tax (PAT) of Rs177330 million down19.74% over FY 2013-14 (Rs220948 million). During 2014-15 your Company registered Grossrevenue of Rs830935 million down 1.32 % over 2013-14 (Rs842028 million).
(Rs in million)
The decrease in Profit during FY 14 -15 as compared to FY 13-14 is mainly due to higherexploratory wells written off and reduction in quantity sold as well as lower pricerealization of value added products. Pursuant to first proviso to sub-section (3) ofSection 129 read with Rule 5 of Companies (Accounts) Rules 2014 a separate statementcontaining the salient features of the financial statement of its subsidiaries associatecompany and joint venture in Form AOC-1 forms part of the Financial Statements.
Your Company paid interim dividend of Rs 9.00 per share (180 per cent) in twophases(Rs5.00 and Rs4.00). The Board of Directors has recommended a final dividend of Rs0.50 per share(10 per cent) making the aggregate dividend at Rs9.50 per share (190 percent) for FY 14-15 i.e. same as compared to dividend for the year 2013-14. The totaldividend will be Rs81278 million besides Rs16256 million as tax on dividend amountingto 55% of PAT.
3. Management Discussion and Analysis Report
As per the terms of Clause 49VIIID of the Listing Agreement with the Stock Exchangesthe Management Discussion and Analysis Report (MDAR) has been included and forms part ofthe Annual Report of the Company.
4. Financial Accounting
The Financial Statements have been prepared in accordance with the Generally AcceptedAccounting Principles (GAAP) and in compliance with all applicable Accounting Standardsand Successful Efforts Method of accounting as per the Revised Guidance Note on Accountingfor Oil & Gas Producing Activities issued by The Institute of Chartered
Accountants of India (ICAI) effective from 01.04.2013 and provisions of the CompaniesAct 2013. Further as per Ministry of Corporate Affairs (MCA) notification the financialstatements have been prepared under the Schedule III format of the Companies Act 2013.
Loans Guarantees or Investments
ONGC is engaged in Exploration & Production business which is covered under theexemption provided under Section 186(11) of the Companies Act 2013. Accordingly thedetails of loans given investment made or guarantee or security given by the company tosubsidiaries and associates is not required to be reported.
Related Party Transaction
Particulars of contracts or arrangements with related parties referred to in Section188 of the Companies Act 2013 in the form AOC-2 form part of Board's Report and placed atAnnexure-B.
I ONGC Videsh Limited (ONGC Videsh)
ONGC Videsh the wholly-owned subsidiary of your Company for E&P activities outsideIndia has participation in 36 projects in 17 countries viz. Azerbaijan BangladeshBrazil Colombia Iran Iraq Kazakhstan Libya Mozambique Myanmar New Zealand RussiaSouth Sudan Sudan Syria Venezuela and Vietnam. Out of 36 projects 13 are producing 4are discovered/ under development 17 are exploratory and remaining 2 are pipelineprojects.
ONGC Videsh is currently producing about 167 thousand barrels of oil and oil equivalentgas per day and has total oil and gas (2P) reserves of about 612 MMtoe as on 31stMarch 2015. During FY'15 there is an increase in oil and gas production by 6.19% (Oil0.86% and Gas 16.37%) as compared to previous fiscal year. The incrementalproduction is primarily due to better management of fields and addition in the portfolio.
ONGC Videsh's share in production of oil and oil equivalent gas (O+OEG) together withits wholly-owned subsidiaries ONGC Nile Ganga B.V ONGC Amazon Alaknanda LimitedImperial Energy Limited and Carabobo One AB was 8.874 MMtoe during FY'15 ascompared to 8.357 MMtoe during FY' 14. The oil production increased from 5.486 MMT duringFY'14 to 5.533 MMT during FY'15 (0.86% higher) primarily due to increased share ofadditional 12% PI in Block BC-10 Brazil.
During FY'15 the company has earned profit after tax of Rs 19042 million a decreaseof 57% as compared to FY'14. Despite higher production during FY'15 the decrease inprofit is mainly due tolower oil prices higher financing cost including exchange losshigher depletion charge and impairment provision in one of the assets.
(A) Significant Acquisitions Alliances and Operations highlights of ONGC VideshduringFY'15 are as follows:
a) Block PEP 57090 New Zealand: ONGC Videsh was awarded an exploration permit PEP57090 in the Taranaki offshore basin by Government of New Zealand on 9thDecember 2014. ONGC Videsh has now started operations in Pacific Region.
b) During FY'15 ONGC Videsh has signed the following MoUs:
(i) MoU with ROSNEFT was executed on 24th May 2014 for cooperationin subsurface surveys exploration and appraisal activities and hydrocarbon production inRussia's offshore Arctic.
(ii) MoU with TPAO (the Turkish Petroleum Company) was executed on 18thJune 2014 for working together for E&P activities in Turkey joint participation inbidding for opportunities including exploration bid rounds in third countries and pursuitof hydrocarbon opportunities related research and development activities.
(iii) MoU with YPF S.A. Argentina was executed on 1st September 2014for working to explore possibility of cooperation in the areas of Unconventional andConventional Hydrocarbon Assets in Argentina E&P activities in India and in thirdcountries research & development activities and human resources development.
(iv) LoI with Petro Vietnam was executed on 15th September 2014 forexpansion of exploration activities by ONGC Videsh in Vietnam by considering participationin 2-3 additional blocks subject to technical and commercial viability and requisiteapprovals.
(v) MoU with Pemex-Exploracion Y Produccion
(PEP) was executed on 25th September 2014 for cooperation in thehydrocarbon sector in the fields of technology human resources research &development.
(vi) MoU with Mubadala Petroleum UAE was
executed on 29th September 201 4 for collaboration in potential upstreamoil & gas exploration development and producing projects and LNG opportunities.
(vii) HoA with PVEP was executed on 28th October 2014 for mutualcooperation and participation in Blocks 102/10 & 106/10 of PVEP and Block 128 of ONGCVidesh in offshore Vietnam subject to due diligence and negotiations on the terms ofparticipation.
i. In Sakhalin-1 Project the topside of "Berkut"-world's biggest offshoreplatform in Arkutun-Dagi field was successfully floated over from South Korea to Russiaand installed on 20th June 2014 with production commencing from 5thJanuary 2015.
ii. Gas Export Pipeline Remediation project in Block BC-10 Brazil was successfullycommissioned on 1st November 2014 leading to gas export about 0.27 MMSCMD.
iii. In A-1/A3 Project Myanmar plateau gas production rate of 14.2 MMSCMD wasachieved on 2nd December 2014.
iv. Oil production from Petro Carabobo Venezuela crossed 16000 BOPD on 16thMarch 2015 with average oil production of 9775 BOPD during FY'15 as compared to 3293BOPD during FY'14.
v. First crude oil cargo of 1.2 million barrel of Petro Carabobowas lifted by RIL on 25thMay 2014 from Venezuela.
vi. The ongoing geo-political situation in Syria including EU sanctions and theresulting restrictions on contractors continue adversely affecting Syrian operations sinceDecember 2011.
vii. The operations in South Sudan projects are temporarily under shutdown afterinternal conflicts and adverse security situation in the country since 22ndDecember 2013. The operations in South Sudan shall resume once security situationimproves.
Direct Subsidiaries of ONGC Videsh
i. ONGC Nile Ganga B.V. (ONGBV)
ONGBV a subsidiary of ONGC Videsh is engaged in E&P activities in Sudan SouthSudan Syria Venezuela Brazil and Myanmar. ONGBV holds 25 per cent
Participating Interest (PI) in Greater Nile Oil Project (GNOP) Sudan with its share ofoil production of about 0.705 MMT during 2014-15. ONGBV also holds 25 per cent PI inGreater Pioneer Operating Company (GPOC) South Sudan. Due to adverse geo-politicalconditions ONGC Videsh could not produce in GPOC South Sudan during FY'15.
ONGBV holds 16.66 per cent to 18.75 per cent PI in four Production Sharing Contracts inAl Furat Project (AFPC) Syria. Due to force majeure condition in Syria there was noproduction in AFPC project during FY'15. ONGBV holds 40 per cent PI in San CristobalProject in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal)BV with its share of oil production of about 0.645 MMT during FY' 15. ONGBV holds 27 percent PI in BC-10 Project in Brazil through its wholly owned subsidiary ONGC Campos Ltd.with its share of oil and gas production of about 0.854 MMtoe during FY' 15. It also holds25 percent PI in Block BM-SEAL-4 located in deep-water offshore Brazil through its whollyowned subsidiary ONGC Campos Ltd. ONGBV also holds 8.347 per cent PI in South East AsiaGas Pipeline Co. Ltd. (SEAGP) for Pipeline project Myanmar through its wholly ownedsubsidiary ONGC Caspian E&P B.V.
ii. ONGC Narmada Limited (ONL)
ONL has been retained for acquisition of future E&P projects in Nigeria.
iii ONGC Amazon Alaknanda Limited (OAAL)
OAAL a wholly-owned subsidiary of ONGC Videsh holds stake in E&P projects inColombia through Mansarovar Energy Colombia Limited (MECL) a 50:50 joint venture companywith Sinopec of China. During FY' 15 ONGC Videsh's share of oil production in MECL wasabout 0.626 MMT.
iv. Imperial Energy Limited
Imperial Energy Limited a wholly-owned subsidiary of ONGC Videsh incorporated inCyprus has its main activities in the Tomsk region of estern Siberia Russia. During FY'15 Imperial Energy's oil and gas production was about 0.289 MMToe.
v. Carabobo One AB
Carabobo One AB a subsidiary of ONGC Videsh incorporated in Sweden indirectly holds11 per cent PI in Carabobo-1 Project Venezuela. During FY' 15 Carabobo's oil productionwas about 0.066 MMT.
vi. ONGC (BTC) Limited :
ONGC (BTC) Limited holding 2.36 per cent interest in the Baku-Tbilisi-Ceyhan Pipeline("BTC") owns and operates 1768 km oil pipeline running through
Azerbaijan Georgia and Turkey. The pipeline mainly carries crude from the ACG fieldsfrom Azerbaijan to the Mediterranean Sea.
vii. Beas Rovuma Energy Mozambique Limited:
Beas Rovuma Energy Mozambique Limited was incorporated in British Vergin Islands (BVI)and holding 6% PI in Rovuma Area 1 Mozambique.
viii. ONGC Videsh Atlantic Inc.:
ONGC Videsh Atlantic Inc. is incorporated in Texas United States of America to workin co-ordination with Anadarko (Operator of Rovuma Area 1 Mozambique) and to establishG&G centre etc.
ix. ONGC Videsh Rovuma Limited:
ONGC Videsh Rovuma Limited was incorporated in Mauritius for structuring of 10% PI inONGC Videsh's Rovuma Area 1 Mozambique.
II Mangalore Refiner y and Petrochemicals Limited
Your Company continues to hold 71.62 per cent equity stake in MRPL a Schedule A MiniRatna which is a single location 15 MMTPA Refinery on the West coast.
Performance Highlights FY 2014-15
MRPL achieved the highest-ever thru'put of 14.65 MMT in FY 14-15 against 14.55 MMT inFY 13-14 .
MRPL exported 4.98 MMT of products against 6.72 MMT in the previous year. The exportswere low compared to the previous year due to the commissioning of Delayed Coker Unit andincreased domestic sale of Kerosene and HSD .
Crude sourcing (Receipts): 14.35 MMT; Iran (34.83 per cent) Saudi Arabia (19.67 percent) ADNOC (12.12 per cent) Kuwait (15.12 per cent) Basrah Light (0.8 percent) MumbaiHigh (5.03 per cent) Ravva and KG basin (3.50 per cent) Sonangol (3.81 percent) Spot(5.12 per cent).
Marketing and Retail Operations
MRPL continues to expand its market spread in the direct sales segment of petroleumproducts in the state of Karnataka and its adjoining states. MRPL has significant marketshare and direct customer relations for products such as Bitumen Fuel Oil SulphurDiesel Petcoke and Mixed Xylene in its refinery zone. The total sales volume of directmarketing products during the FY 2014-15 was 820 TMT with a sales value of Rs 22970million compared to volume of 507 TMT and sales value of Rs 25890 million in the previousFY 2013-14.
Phase III - Brownfield expansion Project
All the units of MRPLs Phase III up-gradation and expansion project have beencommissioned . The Polypropylene unit was inaugurated by Hon'ble Minister (I/C) P&NGon
Acquisition of controlling stake in OMPL
MRPL has increased its stake in OMPL to 51 % by subscribing to the right issue made byOMPL Subsequently OMPL has become subsidiary of MRPL and a Government company underCompanies Act 2013.
6. Annual Report of Subsidiaries and Consolidated Financial Statement
In accordance with Section 134 of the Companies Act 2013 and the Accounting Standard(AS)-21 on "Consolidated Financial Statements" read with AS-23 on"Accounting for Investments in Associates" and AS-27 on "FinancialReporting of Interests in Joint Ventures" audited Consolidated Financial Statementsfor the year ended 31st March 2015 of the Company and its subsidiaries formpart of the Annual Report.
Full Annual Report of subsidiaries of ONGC will be made available to any shareholderif he/she desires which is also available on Company's website. Further Annual Reportsof MRPL and ONGC Videsh are also available on website www.mrpl.co.inand www.ongcvidesh.com respectively.
7. Joint Ventures/ Associates
i. ONGC Petro-additions Limited (OPaL)
ONGC Petro-additions Limited (OPaL) has been promoted by your company asa JointVenture (JV) Company with envisaged equity stake of 26% along with GAIL (15.5%). GSPCalso has a token presence in OPaL. The balance equity of 58.5% is to be tied up withStrategic Partners/ FIs / IPO.
OPaL is a mega petrochemical project at Dahej SEZ for utilizing in-house production ofC2-C3 and Naphtha from various units of ONGC.
Overall Cumulative progress is 95 %.
Total cumulative expenditure as on 31st March 2015 is Rs 213110million. Approved project cost is Rs270110 million.
Debt closure has been attained for approved project cost of Rs 270110 millionwith the execution of Rupee Term Loan agreement.
Phase-wise commissioning of the complex has commenced with stabilized operationsenvisaged in Q3
ii. ONGC Tripura Power Company Ltd (OTPC)
Your Company has promoted OTPC with an envisaged stake of 50% along with Govt. ofTripura (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 throughIDFC alternatives Limited.
OTPC has set up a 726.6 MW (2 X 363.3 MW) gas based
Combined Cycle Power Plant (CCCP) at Palatana Tripura. The basic objective of theproject is to monetize idle gas assets of ONGC in land-locked Tripura state and to boostexploratory efforts in the region.
OTPC's first unit (Unit-1) was dedicated to the Nation by the Hon'ble Presidentof India on 21stJune 2013 and its commercial operation was achieved on 4thJanuary2014 in presence of representatives of beneficiary states. The second unit was dedicatedto nation by Hon'ble Prime Minister of India on 1st December 2014 and itscommercial operation was achieved on 24th March 2015.
The Plant has been granted provisional tariff by Central Electricity RegulatoryCommission (CERC). The Ministry of Power has allocated more than 86% of power from theproject (two units) to the NER beneficiary states while 98 MW is allocated to OTPC formerchant sales. The OTPC has signed a gas sale and purchase agreement (GSPA) with ONGC forsupplying Daily contracted Quantity of 2.65 MMSCMD of gas.
The 663 KM long 400 KV double circuit transmission network Palatana-Bongaigaontransmission has been commissioned up to Bongaigaon by North-East Transmission CompanyLimited (NETCL) a joint venture of Power Grid Corporation OTPC and Governments of theNorth-Eastern states. This development is helping in evacuating power from both Unit-1andUnit-2.
The total expenditure incurred on the project till 31st March 2015is Rs37511 million against the total estimated cost of Rs40470million.
iii. ONGC Mangalore Petrochemicals Limited (OMPL)
Your company has promoted OMPL which has set up Aromatic Complex with an annualcapacity 914 KTPA of Para-xylene and 283 KPTA of Benzene in Mangalore Special EconomicZone as value chain integration project of ONGC. The total project cost is about Rs68750million and commenced commercial operation from 1st October 2014. 259618 MTof Para-xylene and 61788 MT of Benzene have since been exported in the financial yearas the production is being ramped up. After successful commissioning of OMPL in October2014 MRPL has increased its equity from 3% to 51.002% in February 2015 with balance48.998% held by ONGC and thus OMPL has become a subsidiary of MRPL.
iv. Dahej SEZ Ltd (DSL)
Your company as Lead Promoter has developed a multi-product SEZ at Dahej in coastalGujarat .Your Company is setting up C2-C3 Extraction Plant on its own and value-chainintegration project - OPaL through JV route in this SEZ Area. Your company has 23% equityin the project with GIDC having 26% and balance 51% is proposed to be tied up through IPO/ Strategic / Financial Investor.
SEZ is already operational and units in SEZ have clocked export of Rs19740million in FY 2013-14 and Rs21050 million in FY 2014-15.
v. Mangalore Special Economic Zone Limited (MSEZ)
ith an envisaged equity stake of 26% along with KIADB (23%) IL&FS (50%)
OMPL (0.96%) and KCCI (0.04%)
ONGC has set up MSEZ to serve as site for development of necessary infrastructure tofacilitate and locate ONGC/MRPLs Aromatic complex being promoted by ONGC.
Commercial Operation Date (COD) has been declared on 1st April 2015.
vi. Petronet MHB Limited (PMHBL)
PMHBL is a JV company wherein your company has an equity stake of 28.7% alongwith HPCL (28.7%) and PIL Petronet MHB limited (7.9%) with balance 34.57per cent of equitybeing held by leading banks.
PMHBL owns and operates a multi-product pipeline to transport MRPLs products tothe hinterland of Karnataka.
In FY'15 PMHBL pipeline has achieved a throughput of 3.141MMT against totalthroughput of 3.073 MMT last year. As per audited results for the year 2014-15 theturnover and PAT of PMHBL are Rs1071 million and Rs 341million respectively.
vii. ONGC TERI Biotech Limited (OTBL)
ONGC TERI Biotech Limited ( O T B L ) w h i c h w a s incorporated on 26thMarch 2007 is a Joint-venture Company of ONGC in association with The Energy ResearchInstitute (TERI) with shareholding of 49.98% & 48.02% respectively. Through theefforts of joint research of ONGC & TERI over the years OTBL is offering belowmentioned technologies and providing various Biotechnical Solutions to Oil and GasIndustry both in India and abroad:
OilzapperTechnology(Bioremediation)- used to eliminate & tackle Oil SpillsOily Sludge and hazardous hydro carbon waste;
Paraffin Degrading Bacteria (PDB)- used to prevent Paraffin Deposition in Oil wellTubing; Wax Deposition Prevention (WDP)- used to prevent Paraffin Deposition insurface and sub-surface flow lines; Microbial Enhanced Oil Recovery (MeOR)- usedfor Enhanced Oil Recovery by mobilizing crude oil trapped in pores of Oil Reservoirs.During 2014-15 the turnover of OTBL was Rs180.0 Million with Profit after Tax of Rs 45.1Million as against turnover of Rs 141.0 Million and Profit after Tax of Rs 44.8 Million inthe previous year.
viii. Petronet LNG Limited (PLL)
ONGC has 12.5 per cent equity stake in PLL identical to stakes held by other Oil PSUco-promoters viz. IOCL GAIL and BPCL. Dahej LNG terminal of PLL having a capacity of 10MMTPA is currently meeting nearly 20 per cent of the total gas demand of the country.Dahej LNG Terminal is being further expanded from 10 MMTPA to 15 MMTPA. The constructionactivities continue as planned and the project is expected to be completed by end 2016.
A new LNG terminal of capacity 5 MMTPA has been set up at Kochi and has already beendedicated to the Nation.
The Company is also planning to set up an LNG terminal of capacity 5 MMTPA atGangavaram Andhra Pradesh. The turnover of PLL during 2014-15 is Rs 395010 million andnet profit is Rs 8825 million.
ix. Pawan Hans Limited (PHL)
ONGC has 49 per cent equity stake in PHL (previously known as Pawan Hans HelicoptersLimited). Balance 51 per cent equity is held by the Government of India. PHL is one ofAsia's largest helicopter operators having a well-balanced operational fleet of 46helicopters. It provides helicopter support for ONGC's offshore operations. PHL wassuccessful in providing all the 12 Dauphin N and N3 helicopters fully compliant with AS-4as per the new contract with ONGC.
8. Other New Projects/ Business initiatives C2-C3-C4 Extraction Plant
Your company has set up a C2 C3 and C4 Extraction Plant at Dahej having acapacity to process 5.0 MMTPA Rich Liquefied Natural Gas (LNG) from M/s Petronet LNGLimited (PLL) as feed stock for extraction of C2 C3 & C4 products.
The plant will be commissioned shortly.
These extracted C2 C3 and C4 products would be feed stock for ONGCs promotedJoint Venture OPaL in the same SEZ at Dahej. They would form 40 % feed stock for upcomingOPaL Project.
However till the starting operations and stabilization of OPaL ONGC shall beproducing LPG by blending C3 & C4 in the requisite ratio and would be sold to OilMarketing Companies.
9. Alliances & Partnerships for Business Growth
a. MoU between ONGC BPCL Mitsui and NMPT
ONGC along its consortium partners BPCL and Japanese conglomerate Mitsui signed a MoUwith the New Mangalore Port trust (NMPT) on 18t h March 2013. TheMoU documents Port's No-Objection to carry out feasibility studies and intention to extendall cooperation to the consortium in this regard. The consortium has carried out thepre-feasibility study of the project and found that terminal is technically feasible andthe same had been presented to NMPT. Based on the report NMPT has conveyed its noobjection to the consortium for carrying out detailed feasibility studies for theidentified locations subject to adherence to navigational safety requirements. Commercialprefeasibility study is being carried out.
b. MoU for setting up a Special Purpose Vehicle (SPV) for implementing Renewable Energyprojects
Your company is likely to be a lead partner in a Joint Venture Company being set upthrough Special Purpose Vehicle (SPV) for implementing large scale grid-connected solarwind and other renewable energy (including hybrid) power projects.
An MOU for creating such a JVC was signed on 25th February 2014 between theMinistry of New & Renewable Energy and Ministry of Petroleum & Natural Gas Govtof India.
This JVC shall be for grid connected renewable energy and would be led by ONGC as thelead partner with likely 26% equity and other Oil upstream companies like OIL and GAILalong with EIL IREDA and SECI as partners equity percentage of each one of them to bedecided later. Feasibility study for formation of SPV has been done by EIL and report hasbeen submitted to MoPNG.
10. Information Technology
Considering the need to ensure implementation of cutting edge technology in all areasof operations and to ensure data integrity and security ONGC has deployedstate-of-the-art IT tools and technologies. In a knowledge-driven and technology-intensiveindustry such as oil & gas E&P information technology establishes the vitalsynergy across the company's many locations and varied workforce essentially serving asits operations' lifeline. Many of the IT achievements of the Company are regarded asbenchmarks in the industry in terms of implementation of widespread systems integrationand process automation.
Highlights for the year 2014-15
Consequent to allotment of transponder on GSAT 10 satellite in lieu of INSAT 3Eby Department of Space Govt. of India Satcom stations were successfully migrated to GSAT10 satellite using in-house capabilities. On the directive from MoP&NG a meeting washeld with representatives of Indian Space Research Organisation (ISRO) on 05.09.2014 towork-out the use of space applications in E&P sector. ISRO has constituted a fivemember team which will interact with ONGC team to work-out the use of space applicationsin E&P sector.
ISO/IEC 20000: 2011 accreditation for IT Services has been extended to alllocations covering entire ONGC after successful external audit during 8th-12thSeptember 2014.
Crisis Management Plan (CMP) for Countering Cyber Attacks and Cyber Terrorismprepared based on CERT-In template and got validated from security expert of CMC andsubmitted to EC for approval. CMP Incident Management team was constituted at corporatelevel which will meet weekly or in case of requirement to oversee resolution ofincidents and discuss mitigation plans for upcoming / known threats & which arecommunicated by NCIIPC CERT-in etc.
Infocom has developed "O Drive" facility for ONGCians. With "ODrive" facility documents can be stored in a centralized server which can beaccessed from anywhere. This effort is alternative option to the usage of USB drives andthus contributes for Information security
Developed a complete pipeline information system In-house and rolled out atMehsana& Rajahmundry Assets. The system feature includes facility to view othergeographical information such as nearby locations of hospitals schools fire stationsetc. facility to measure distance between any two points liquid flow direction animationetc. Distinctive colours adopted for different type of lines. The facility can be accessedfrom anywhere on ONGC Intranet with user login authentication.
Participated in the CERT-in simulated cyber-attacks based Cyber Security Drillon 23.12.2014 along with 47 other organizations to assess ONGC preparedness to withstandthe possible cyber-attacks. The Cyber Security Drill was completed successfully and CyberSecurity Crisis Management Team was able to detect and analyze the incidents and informCERT-in within given time.
A portal for Public Grievances was developed in-house to facilitate public tolaunch their complaints online. This web-based Grievance redressal initiative of ONGCreinforces focus on Digital India project which aims to leverage technology to maintainthe Citizen-Government Interface with the highest integrity. Through this portalcitizen/vendor/employee/former-employee can register their grievances relating to anyoperational wing of ONGC through an online/single window system. Facility available formonitoring the complaint status by the complainer.
A portal for JRM (Joint Review Meeting) of Technology and Field services wasdeveloped in-house to cater to the complete JRM requirements for conducting the meetingsmoothly. JRM members can upload the presentations tour program details ATR for previousmeetings etc. Notifications/ messages can be generated through this portal and be sent asSMS as well as mail to the members.
11. Health Safety and Environment(HSE)
Safety Occupational health and protection of environment in and around itsworkingareas are prime concerns of ONGC. ONGC has implemented globally recognized QHSEManagement System conforming to requirements of QHSE Certifications ISO 9001 ISO 14001 andISO 18001(OHSAS) at ONGC facilities and certified by reputed certification agencies at allits operational units. During the year 2014-15 412 Nos. of installations of ONGC wereaudited for certification/surveillance audit. Corporate guidelines on incident reportinginvestigation and monitoring of recommendations was developed and implemented formaintaining uniformity throughout the organization in line with international practice.
A few highlights of HSE during 2014-15 are:
Regular QHSE internal audits
Fire safety measures including regular fire and earthquake mock drills
Training on HSE related topics
PME of employees and Health Awareness programs
Water and electricity conservation Noise and pollution reduction measures
Material Safety Data Sheets(MSDS)
Personal protective Equipment's(PPE)
Solid waste management and Developing E-waste disposal procedure
Identification and implementation of Environment Management Programmes (EMP).
Occupation Health & Safety(OHS) programs as per need of the unit
Energy conservation awareness through display and communication
Accident near miss and Governance Risk Compliance (GRC) reporting.
Mines Vocational Training for Petty Contractual Workers
ONGC is now an Accredited Environment Impact Assessment (EIA) Consultant organizationby Ministry of Environment & Forest (MoEF) in Oil and Gas Exploration Development andProduction in Offshore/Onshore areas and Petroleum refining industry.
Approval by DSIR
ONGC Institutes have received the renewal of recognition of In-house R&D unit byDepartment of Scientific and Industrial Research (DSIR) for a period of five years (validtill 31st March 2018) on 26.03.2013. This will enable ONGC Institutes tocontinue claiming weighted deduction in Income Tax (200%) against the expenditure towardsR&D activities.
Patenting R&D Work
1. One Patent proposal of IRS Ahmedabad on "Process and composition forcleaning scale deposits of effluent dispatch lines" has been submitted to CentralizedPatent Cell KDMIPE in March 2015.
2. Patent application has been made by CEWELL for
patenting the innovative technique for TOC estimation. The TOC estimated by thistechnique in first shale gas well matches very well with TOC data obtained throughlaboratory study on cutting samples. This validates the new technique developed by CEWELLand its applicability in Indian basins.
12. Carbon Management & Sustainability Development
ONGC being one of the premier energy majors of the world and the highest profit earningPSU of India realises its responsibilities in ensuring sustained development throughprotection of the ecological system. It therefore strives to position itself as a leadingorganisation in sustainable management and is aiming to achieve sustainable developmentthrough a holistic approach to carbon management. ONGC believes that focused CarbonManagement efforts are an ideal route to cover the elements of our business specificsustainable development issues across the environmental dimensions. A critical area ofenvironmental sustainability is mitigation of global greenhouse gas from operations. Itisan organizational objective for us to progressively reduce our carbon footprint byworking towards reduction in both direct and indirect energy consumption.
Sustainable development requires contribution of all the societal players and withincreasingly dominant role of modern day corporates; they can contribute significantlytowards sustainable development. ONGC has created a small group called "Carbon
Management & Sustainability Group" with a mandate for developing CDMprojects Sustainability reporting Carbon & Water Management and focussed R&D inthe area of low carbon. The following efforts undertaken by ONGC illustrate its commitmentto Sustainable Development:
1. Clean Development Mechanism (CDM):
ONGC commenced its CDM journey in 2006. Till date ONGC has registered 12 CDM projectswith UNFCCC. 2 new CDM projects validated and 2 already registered projects successfullyverified for issuance of CERs.
Validation of New CDM projects
1. Gas Flare Recovery at GGS Chariali Assam
2. Energy Savings by replacement of MOL pump at Neelam&Heera Asset
Verification & Issuance of Registered CDM projects
1. Gas Flaring Reduction at Uran Plant
2. 51 MW wind power project of ONGC at Surajbari
2. Carbon and Water Foot printing: Carbon Foot printing:
GHG Accounting & GHG mitigation projects
Comprehensive company-wide GHG accounting had been completed for the base year 2010-11and it is found that ONGC has 8234853 and 281178 tons of CO2 emissions under Scope 1 -Direct Emissions and Scope 2 - Energy Indirect Emissions respectively. Based on the study11 focus areas and projects have been identified. It is proposed to undertake thefeasibility study of eleven identified GHG mitigation projects.
Global Methane Initiative (GMI):
The Global Methane Initiative (GMI) is an action-oriented initiative from United StateEnvironmental Protection Agency (USEPA) to reduce global fugitive methane emissions toenhance economic growth promote energy security improve the environment and reducegreenhouse gases emission. The Global Methane Initiative facilitates cooperativemitigation activities that result in bringing more gas to markets through IdentificationQuantification and Reduction (IQR) path.
ONGC entered into a MoU with the USEPA in August 2007 to undertake Methane toMarket (now GMI) projects in ONGC and over the years since its joining into theprogram ONGC has formed a dedicated team and has procured methane emission detection andmeasurement equipment in order to undertake Fugitive Emission detection and quantificationat its operating facilities and has reduced approx. 14 MMSCM over the years. Thisis equivalent to reductions of over 2 lakhs tCO2e emitting into atmosphere.
Fugitive emission Identification & Quantification (IQ) jobs have been completed asper Performance Contract (PC) targets. Assam Asset Ankleshwar Asset &Hazira plantwere mapped for fugitive emissions. The reports have been submitted to respective workcentres to take corrective actions.
Water Foot printing: Sustainable water management:
Every business depends and impacts on water resources. The future of business dependson the sustainability of water resources which are increasingly under pressure. Withfreshwater supplies tightening due to overuse and more extreme weather patterns businessis coming under more pressure to measure and cut water use. ONGC is concerned towards therisks and benefits of water management and exploring new techniques to cut consumption.ONGC's Sustainable Water Management policy is based on philosophy of 4 "R" i.e.Reduce Reuse Recycle & Replenish. CM&SG is entrusted with the responsibility ofsteering SM projects across ONGC. CM&SG is working on following projects in this area:Water footprint study in Ahmedabad Asset and IPSHEM Goa:
For the first time an in-house footprint study has been done without engaging anyexternal agency. The project was completed ahead of schedule.
Setting up sea water desalination plant at Uran:
LOA for techno-commercial and environmental feasibility study for proposed 20 MLD seawater desalination plant has been placed on M/s MECON India. Setting up desalinationplants at ONGC work centres located near coastal areas and at MRPL: It is proposed toset up desalination plants at ONGC work centres located near coastal areas (Hazira PlantAnkleshwar Asset Cauvery Asset-Karaikal Rajahmundry Asset & Eastern OffshoreAsset-Kakinada) and at MRPL as a SM measure in order to mitigate future sustainabilityrisk due to declining fresh water availability. It is proposed to initially conducttechno-commercial and environmental feasibility study and based on the affirmative outcomeof the feasibility report implementation of setting up desalination plant at therespective work centre may be undertaken.
Rain water Harvesting:
Rain ater Harvesting (RWH) projects are implemented/ being implemented at differentwork centres of ONGC under the umbrella of Sustainable Water Management. The harvestedwater is being used for beneficial use like gardening toilet flushing etc and also forrecharging of ground water aquifers. The RH projects have been taken up at AhmedabadAsset Tripura Asset WOB Vadodara and IPSHEM Goa.
Sewage Treatment Plant (STP) at Mehsana Asset:
Administrative approval accorded for setting up three STP's (each of capacity 100 KLD)at ONGC Nagar Mehsana. Finalization of scope of work and tendering process is being takenup by Mehsana Asset.
Produced Water Management at Mehsana Asset:
CM&SG and Mehsana Asset have jointly undertaken produced water management in aholistic manner through a Multi-disciplinary Team (MDT) under sustainable water managementumbrella in line with EC decision.
Integrated Watershed/Check dam Management at Mehsana:
ONGC as a responsible corporate wants to expand its activities in sustainable watermanagement beyond its operational boundaries. As a first step Mehsana Asset has beenchosen as it is one of the worst affected regions as far as water scarcity is concerned.The project will be a CSR project in association with CM&SG Mehsana Asset and localconcerned authorities. The project is at present exists as a concept and implementationroadmap is being worked out.
SD through focussed R&D and collaborations
ONGC is committed towards reduction of greenhouse gases (GHG) emissions and is activelypursuing various R&D projects towards CO2 capture and sequestration in following ways:
Sequestration by Algal biomass
Conversion into useful products
ONGC has signed NDA (Non-Disclosure Agreement) with following Finnish agencies
Ripasso Energy Sweden in the field of Solar CSP-ST technology
Chempolis Finland in the area of 3G bio refinery.
Cleen Finland in the area of CCSP EFEU and BEST program
VTT Finland in the area of water management
At present however CM&SG has been pursuing the CCSP programme with CLEEN for theCO2 capture and reformation programme at Hazira plant.
Setting up of 3G Bio-refinery
ONGC is planning to setup a 3G bio-refinery (first of its kind in India) to meet thegovernment mandate of E95 (blending of 5% ethanol to gasoline). To this effect ONGC hadsigned NDA &MoU with Chempolis Finland. This endeavor would create a new businessdimension for ONGC. Chempolis had conducted feasibility study for the state of Punjab andthe same is under consideration.
Carbon Capture & Sequestration
ONGC has also collaborated with CLEEN Finland in the area of carbon capture and joinedits program named Carbon Capture & Storage Program (CCSP). This program works onsharing knowledge among consortium members and working on the specific goals. Consortiumagreement has been signed for ONGC specific work package at Hazira.
Solar power CSP-ST technology
Ripasso Energy has specific and unique expertise in the Concentrated Solar Power (CSP)technology. CSP technology is based on "Stirling Engine technology" a unit hasa typical power output of 30 KW. An inherited modular design ideally suited for volumeelectricity production with an outstanding conversion efficiency of 32% provides a numberof benefits compared to other solar thermal technologies. CM&SG is in talk withRippaso Energy for establishing a 3MW pilot solar power project at Gamnewala Jaisalmer.The project proposal is under consideration.
Pilot project on CO2 sequestration through microalgae at Hazira plant
Algae have recently received a lot of attention as a new biomass source for theproduction of renewable energy. Some of the main characteristics which set algae apartfrom other biomass sources are that algae have a high biomass yield per unit of light andarea can have a high oil or starch content do not require agricultural land fresh wateris not essential and nutrients can be supplied by wastewater and CO2 bycombustion gas.
The pilot project was set up at Hazira plant with an aim to sequester CO2from vent gas (released during sweeting process of sour gas) with the microalgae andconvert into value added products. The results are encouraging which shows that 50% of theCO2 from the SRU vent could be absorbed by the absorption medium in theabsorption column at a pressure of 0.5 Bar. The carbonated medium when transferred to theraceway pond inoculated with microalgal strain showed appreciable algal growth (18g/m2/day) which was harvested. The harvested biomass was tested at BITS Pilani GoaCampus for the potential of bio-methane generation. It was found that the biomass havegood potential of bio-methane generation. (336 Litre/ when fed with 0.5 KgVS /m3/day).
Waste to Fuel project (under Swach Bharat Abhiyan)
MoP&NG has desired to take a project on waste to fuel at Puri Odisha under SwachhBharat Abhiyan (SBA) as a part of Corporate Social Responsibility. The project being ofspecialized nature and involving technical expertise is being steered by CM&SG.Following steps were taken:
MDT has been formulated to take project forward
Meeting with Puri administration had been concluded.
Draft EoI has been put up for approval before floating for identifyingtechnology and prospective bidders.
Disclosing sustainability performance- Sustainability Reporting
Sustainability reporting the practice of measuring disclosing and being accountableto internal and external stakeholders for organizational performance towards the goal ofsustainable development is being increasingly adopted by organizations. SustainabilityReporting is also believed to lead to improved sustainable development outcomes as itallows organizations to measure track and improve their performance on specific issuesalong the three bottom lines.
Published third party assured A+ sustainability report
for ONGC group of companies including ONGC Videsh and
MRPL (GRI-G3.0 complaint with Oil and gas sector supplement and BRR).
Capacity building & knowledge Dissemination
CM&SG has three tier knowledge dissemination approaches on carbon water managementand sustainable development.
Annual Training Program at ONGC Academy
Programs at Petrotech
Awareness programs at different work-centers
Total seven awareness programs were conducted by CM&SG at CFB Silchar RFB Jodhpurestern Offshore Basin Mumbai MBA Basin Kolkata Cauvery Asset Karaikal OB Vadodara andCauvery & KG-PG Basin. Total 240 executives participated in the program.
A two day 3rd CM&SG meet was conducted at Goa in January 2015for an in depth interaction of CM&SG and SD officers from all ONGC work centers tostrategize the pursuit of SD activities in ONGC.
A two day seminar on "Innovation for Sustainability Dividend" was conductedby CM&SG in association with Petrotech Society at Delhi during November 2014. Theseminar was attended by representatives across Indian oil & gas industries institutesworking in the sustainability and representatives from ONGC.
SD brochure was published during 3rd CM&SG meet. The brochure would be acommunication tool to communicate ONGC's triple bottom line performance (economic socialand environmental) and sustainability practices. This brochure highlights the considerablework done in the sustainability space SD initiatives and performance. Film onSustainability was unveiled during 3rd CM&SG meet by Governor of Goa in thepresence of Director-I/c-CM&SG.This small film highlights the journey of ONGC in thepursuit of sustainable development. Stake holder engagement meet
Two stakeholders engagement meets were organized to map and prioritise the keysustainability issues of ONGC. The first meet was meant for internal stakeholders who hadprioritized the set of issues which would impact the business sustainability of ONGC. Thesecond meet was for the external stakeholders who had prioritized the issues whose impactson ONGC would impact their business sustainability. The outcome of the two reports uponjuxtaposition has generated the key materiality issues of ONGC to work upon. This is thefirst time such an exercise was undertaken.
Corporate Waste Management Policy: Your company approved Corporate aste ManagementPolicy and the same will be reviewed after every three years.
Trading policy on monetizing of CER shas been approved and will beoperational shortly.
Carbon Neutrality: ONGC has taken a conscious decision to reduce itscarbon footprint as a part of its sustainable development programme. As a first steptowards this mission CM&SG has undertaken a maiden initiative to render the carbonfootprints of three major areas neutralised for 2013-14. The areas are :
Air travel of all ONGC employees including to and fro local surfacetransportation to airport.
Consumption of electricity paper LPG and fuel for local transportation fromIPE Campus IDT IEOT IRS and IPSHEM
Flaring and electricity consumption of Uran Plant. Carbon neutrality isessentially a concept of having a net zero GHG footprint of an activity. The entireprocess involved a detailed GHG accounting of the activity and offsetting the footprint.The total footprint of the activities is 137 345 tons of CO2 equivalent andhas been offset by retiring an equivalent quantity of carbon credits issued against theregistered CDM projects of ONGC.
13. Business Responsibility Report - 2014-15 Securities & Exchange Board ofIndia has introduced Clause 55 to the Listing Agreement with the Stock Exchanges whichstates that Listed entities shall submit as part of their Annual Report BusinessResponsibility Report describing the initiatives taken by them from an environmentalsocial and governance perspective. Accordingly the third Business Responsibility Report -2014-15 has been drawn up and forms part of the Annual Report for 2014-15.
14. Internal Control System
Your Company has a well-established and efficient internal control system andprocedure. The Company has a well-defined delegation of financial powers to its variousexecutives through the Book of Delegated Powers (BDP). The Integrated BDP is updated fromtime-to-time in line with the needs of the organisation as well as to bring furtherdelegation. BDP has been revised during FY 14-15 and the same has been made effective from01.01.2015. The Company has in-house Internal Audit Department commensurate with its sizeof operations. Audit observations are periodically reviewed by the Audit &EthicsCommittee of the Board and necessary directions are issued whenever required.
15. R&D EFFORTS THROUGH ONGC ENERGY CENTRE TRUST(OECT)
Your company has taken steps to evaluate various forms of energy to fulfil thecountry's growing energy needs. Towards this end your company has established an ONGCEnergy Centre Trust (OECT) which is mandated to undertake or assist in programs /projects of fundamental and applied research for improving and developing commerciallyviable energy mediums and sources beyond hydrocarbons especially in clean and/orrenewable energy options. ONGC Energy Centre (OEC) has been set-up under the aegis of theOEC Trust to work on various clean energy options.
Your company through ONGC Energy Centre has been implementing several Research Projectson new and alternative sources of energy. These Projects are in advanced stages ofimplementation in collaboration with various national and international academicresearch and industrial organizations. The projects where your company is currentlyengaged in are:
a) Hydrogen Generation through Thermo-chemical Processes
b) Exploration for Uranium
c) Bioconversion of lignite to Methane
d) Bioconversion of Oil to Methane
e) Kinetic Hydro Power
f) Geothermal Energy
g) Solar Thermal Project
These apart during 2014-15 ONGC Energy Centrehas also evaluated many new options toexpand the research and technology development activities and also to focus on optimumutilization of resources available with ONGC. These efforts have been described in detailin the Annexure Con Energy Conservation.
Further a Board Level Committee on Research & Development has been constituted.The first meeting of the Committee was held on 27.05.2015 and the terms of reference ofthe Committee have been approved.
16. Human Resources
Your Company values its Human Resources the most. To keep their morale high yourcompany extends several welfare benefits to the employees and their families by way ofcomprehensive medical care education housing and social security.
17. Employee Welfare
Your Company continues to extend welfare benefits to the employees and their dependantsby way of comprehensive medical care education housing and social security. YourCompany continues to align company policies with changing economy and businessenvironment.
Employee Welfare Trusts -
Your Company has established the following major Trusts for welfare of employees:-EmployeesContributory Provident Fund(ECPF) Trust manages Provident Fund accounts of employeesof your Company.
The Post Retirement Benefit Scheme (PRBS) Trust of your Company manages the pensionfund of employees of your company which has been converted into a Defined ContributionScheme as per DPE guidelines.In the converted Defined Contribution Scheme the corpus inthe individual employee account shall include employer/ employee contributions andinterest thereon. The benefits under the Scheme are dependent on corpus in the individualemployee account and accordingly would be market determined which depends on interestrate annuity price etc.
The Composite Social Security Scheme(CSSS) formulated by your company provides anassured ex-gratia payment in the event of unfortunate death or permanent disability of anemployee in service. In case of Separation other than Death/Permanent total disabilityemployees own contribution alongwith interest is refunded.
Gratuity Fund Trust exists for payment of gratuity as per the provisions of theGratuity Act. Your Company has a Sahayog Trust for its Sahayog Yojana to provide ex-gratiafinancial grant for sustenance medical assistance treatment rehabilitation educationmarriage of female dependent and alleviation of any hardship or distress to secure theWelfare of the workforce and their kin who do not have adequate means of support. Thebeneficiaries under this scheme includes casual contingent daily rated part timeadhoc contract appointees tenure based employees apprentices and trainees employed byyour Company besides regular and past employees. Under the scheme an amount of Rs 5770million were disbursed by the Trust during the year.
Extension of Benefits under the Asha Kiran Scheme to retired employees:-
The Asha Kiran Scheme was introduced to meet the emergency needs of the ex-employeesretired prior to 01.01.2007 who are passing through distressful situation. The scheme waslaunched as per DPE guidelines by creating a corpus of 1.5% of PBT. During the year underthis scheme financial assistance of Rs1780 million was provided to 14698 ex-employee.
Persons with Disabilities
ONGC believes in affording equal opportunities to physically challenged people. As on31.03.2015 there were 156 permanent employees with disabilities (0.5%) on the rolls ofONGC.
Implementation of Govt. Directives for Priority Section
Your Company complies with the Government directives for Priority Section of thesociety. The percentage of Scheduled Castes(SC) and Scheduled
Tribes (ST) employees were 15 percent and 9 percent respectively as on 31stMarch 2015.
Your Company is fully committed for the welfare of SC and ST communities. The followingwelfare activities are carried out by your Company for their uplif tment in and around itsoperational areas:-
Annual Component Plan:
Under Annual Component Plan for SC/ST every year an allocation of Rs 200 million ismade. Out of this Rs 60 million is distributed amongst all the Work centres of ONGC fortaking up activities for welfare of SC/ST Communities in and around the areas of ouroperations. In addition Rs 140 million is managed centrally and is earmarked for Specialprojects/ proposals/schemes for the welfare of areas/persons belonging to SC/STcommunities. The amount under component plan is utilised for taking up various welfaremeasures for the welfare and upliftment of the needy people of SC/ST Communities. Thisfund is especially meant for providing help and support in Education and TrainingCommunity Development and Medical and Health Care.
Scholarship to SC/ST meritorious students
Your Company provides scholarships for meritorious SC & ST students from 100 to 500for pursuing higher professional courses at different Institutes and Universities acrossthe country in Graduate Engineering MBBS PG courses of MBA and Geo-Sciences. The majorfeature of the scheme is that the scholarships have been equally divided for both Boys andGirl students and the amount of scholarship has been made out to Rs4000/- per month perstudent subject to the conditions of the scheme. The annual budget for the scheme on itstotal implementation is Rs76 million per annum.
18. Industrial Relations
During the year your Company maintained harmonious Industrial Relations throughout theCorporation. Mandays loss due to internal industrial action was reported as 'NIL for theyear 2014-15.
19. Grievance Management System (GMS) :
Your Company provides an easily accessible machinery to the employees for redressal oftheir grievances either through informal channel (open hearing day) or through formalchannel. On 26th January 2015 a web-portal "Public GrievancePortal" was launched which will provide redressal of grievances of allstakeholders. This portal is a step further to empower each stakeholder viz.citizen/vendor/employee/former-employee to register their grievances related to anyoperational wing of ONGC through a single window on corporate web por tal. A structuredapparatus has been operationalized to process the grievances within a limited time frame
Public Grievance Management System
All Key Executives of your company have designated a publicized time slot thrice in aweek to meet Public Representatives in order to speedily redress their grievances.
20. Implementation under the Right to Information Act
An elaborate mechanism has been set up throughout the organization to deal withrequests received under RTI Act 2005.There are two Central Public Information officers(CPIOs) based at the Registered Office at Delhi and 22 Central Assistant PublicInformation officers (CAPIOs) have been designated at different work centers across thecountry to redress the issues under RTI Act 2005.
69 applications were carried forward from the year 2013-14 to 2014-15. 1790applications were received during the year 2014-15; making a total of 1859. In addition66 First appeals were carried forward from the previous year to financial year 2014-15 and261 were received during the period. All the aforesaid 327 first appeals were disposed offby the appellate authority of ONGC and orders passed by the authority were complied within stipulated time frame.
21. Implementation of Official Language Policy
Your Company makes concerted effort to spread and promote Official Language. In thiseffort some of the steps taken during the year were: -
(i) Company has introduced Unicode Hindi software in all our offices. (ii) Hindiworkshops are conducted at regular intervals(iii) Hindi seminars and 'Kavi Gosthies'organized in Dehradun and Delhi. (iv) ONGC actively contributed in publishing bilingualPetroleum Terminology initiated by MoP&NG. (v) Hindi Teaching Scheme of Govt. ofIndia is effectively implemented at all regional work centres.
22. Human Resource Development
33185 ONGCians (as on 31st March 2015) which includes 26656 executivesand 9529 non-executives dedicated themselves for the excellent performance of yourcompany during the year. The workforce intake strategy pursued by your Company caters tomeeting the demands of maintaining a steady flow of talent in a business which ischaracterized by high risks and uncertainties enormous costs fast changing level oftechnology physically challenging work environment fluctuating product prices andgrowing competition. Your Company has drawn up a scientific manpower induction planaligned to the business plans as well factoring the manpower profile of the Company. Yourcompany believes that continuous development of its human resources fosters engagement anddrives competitive advantage.
Towards that end during the year your Company conducted Business Games to hone thebusiness acumen of its executives. Business Game has proved to be very popular initiativeand tests the ability of the executives through business quizzes business simulations andcase-study presentations. During the year 2014-15 a total of 144 teams and 576 executivesparticipated in the event. Fun Team Games (FTG) were organized for E0 and staff levelemployees to inculcate MDT(Multi-disciplinary Team) concept and spirit of camaraderie andbelongingness to the organization which was very well received by the participants. Atotal of 75 Teams and 300 employees participated in FTG during the year 2014-15.
The winners of Business Games and Fun Team Games were felicitated by the CMD onRepublic Day Celebrations. Your Company also conducted the Assessment Development Centre(ADC) for 192 DGM level executives (0.81% of executives) and provided them developmentalinputs. Your Company has partnered with global HR consulting firms to create a pool ofaccredited mentors in the organization. These mentors will support organization's effortto hone young minds to successfully respond to the emerging business needs of yourCompany. As part of this Initiative in the year 2014-15 36 mentorship workshops wereconducted. Also 123 mentors have been awarded Basic and Advanced level Accreditations formentoring.
Your Company attaches utmost importance to the development of its human resource.YourCompany has branded the spectrum of its training activities as 'EXPONENT - a comprehensiveProgramme which is nurturing the energy leaders of tomorrow. The growth of an ONGCian toan Exponent of energy business is facilitated by ONGC Academy Regional TrainingInstitutes and other specialised in-house training Institutes and world class trainingproviders in India and abroad.
During the year a total of 20084 Executives and 4729 non-executives were impartedappropriate training spanning 176644 executive mandays (Number of executive mandays perexecutive per year: 7.49) and 16119 non-executive mandays (Number of nonexecutive mandaysper executive per year: 1.69) during 2014-15 at all Work centres. In order to absorb newand emerging technological advancements pertaining to oil and gas exploration andproduction 85 programmes including 26 foreign faculty programmes pertaining tofunctional disciplines were organized with the best of faculties from India and abroadduring the year.
To nurture the talent with the objectives to prepare future leaders of the organisationfor taking up higher roles and address key organisational challenges 338 executives ofE7 E6 and E5 level were exposed to Leadership Development Program (LDP) AdvancedManagement Program (AMP) and Senior Management Program (SMP) respectively the tailor madeManagement Programmes with overseas learning component through tie-ups with leadingB-schools of the country.
23. Women Empowerment
Women employees constituted over 6 percent of your Company's workforce. During theyear programmes on women empowerment and development including programmes on gendersensitization were organized. Your Company actively supported and nominated its ladyemployees for programmes organized by reputed agencies.
Your company scrupulously complies with The Sexual Harassment of Women at Workplace(Prevention Prohibition and Redressal) Act 2013. Reported cases of Sexual harassment areinquired into by Complaint Committee constituted separately for all the work-centres fortaking disciplinary action against the delinquent employees.
24. Work-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 roomsetc. Outbound programmes with families were also organized at various work-centers. Playson the importance of Work-Life Balance' were staged to create awareness amongst theemployees. In addition cultural programmes involving employees and their families werealso conducted. MahilaSamitis and Resident Welfare Associations (RWAs) were involved inthe organization of these cultural programs. Your Company has a adventure wing named ONGCHimalayan Association which organizes adventure programmes like mountaineering trekkingwhite water rafting snow skiing desert Safari Aero sports etc. which adds towardsmorale engagement team spirit camaraderie stress management and spirit to exploreunknown among the employees.
Your Company continued its large scale support for development of sports in the countryin the form of job offers & scholarships to deserving sportspersons. Sponsorships tovarious sports associations / federations / sports bodies to organise sports events aswell as develop infra-structure were also extended. Your Company extended support in 23game disciplines to 170 players on regular rolls and 167 players on scholarship. Thesupport has enabled many sportspersons to bring home laurels for the nation and theorganisation. Some of the key achievements during the year are given below:
Your Company was conferred the prestigious Rashtriya Khel Protsahan Puruskar by Hon'blePresident of India Mr. Pranab Mukherjee at a glittering ceremony in Rashtrapati Bhavan onthe occasion of National Sports Day on Friday 29th August 2014. CMD Mr.D.K.Sarraf received the honour from the President.
Two ONGCians were conferred with the prestigious "Arjuna Award" for the year2014; Ms. Heena Sidhu in Shooting and Mr. V. Diju in Badminton. The total number ofNational Awardees in the organization stands at 24 (KhelRatna - 1 Padma Shri - 2 &Arjuna - 21) In Commonwealth Games 2014 held at Glasgow (UK) a total of 20 ONGC athleteshad participated in this 12 day long mega event and bagged 6 medals (1 Gold 3 Silver& 2 Bronze) which is a pretty healthy success rate
In Asian Games 2014 held at Incheon (Korea) a total of 40 ONGC athletes hadparticipated and bagged 13 medals (4 Gold 1 Silver & 8 Bronze).
Mr.Sourav Kothari won the Gold Medal at the Asian Billiards Championship.
Your Company was awarded the prestigious FICCI Certificate of Excellence for the"Award for long time contribution to Indian Football" for the year 2014 [this isthe first time in the history that an organisation has been awarded successive FICCIAwards]. Mr. Pankaj Advani of ONGCwon 12th world title in cue sports. In the year2014-15 he won World Billiards title in time & point format 6 red world snookerchampionship and orld team Billiards Championship.
Ms. Rashmi Kumari of ONGC won the singles title of orld Cup (women) in carom.
26. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Your company is fully engaged in ensuring equitable and sustainable growth of societyin and around the area of its operations besides complying with government directives todischarge its social responsibility as a leading Indian corporate. CSR activities areessentially guided by project based approach in line with the provisions of Companies Act2013 promulgated by Ministry of Corporate Affairs and Companies (CSR Policy) Rules and theguidelines on CSR& Sustainability issued by Department of Public EnterpriseGovernment of India. Seeking to herald an inclusive business paradigm ONGC has CSRinterventions that are based on social environmental and economic considerations and arewell-integrated into the decision-making structures and processes of the organization.
Pursuant to enactment of Companies Act 2013 and Companies (CSR Policy) Rules 2014 byMinistry of
Corporate Affairs and Guidelines on CSR and Sustainability by Department of PublicEnterprise the CSR Policy has been approved by the Board of Directors. The same isuploaded on the Company's website. Further in line with the approval of the Board ONGChas set up and registered ONGC Foundation under the Societies Registration Act forcarrying out CSR activities. Necessary steps are on hand to recruit manpower for makingONGC Foundation an effective tool for implementation of CSR policy of ONGC. Pursuant toRule 9 of Companies (Corporate Social Responsibility Policy) Rules 2014 the Annual Reporton CSR activities is annexed herewith as Annexure 'C'. CSR ACTIVITIES UNDERTAKEN BYONGC BASED ON ITEMS LISTED IN SCHEDULE VII OF THE COMPANIES ACT 2013
Eradicating hunger poverty and malnutrition promoting preventive health careand sanitation and including contribution to Swachch Bharat Kosh set up by CentralGovernment for promotion of sanitation making available safe drinking water:
Promoting education including special education and employment enhancingvocation skills. Especially among children women elderly and the differently abled andlivelihood enhancement projects.
Promoting gender equality empowering women setting up homes and hostels forwomen and orphans; setting up old age homes day care centres and such other facilitiesfor senior citizens and measures for reducing inequalities faced by socially andeconomically backward groups.
Ensuring environmental sustainability ecological balance protection of floraand fauna animal welfare agro forestry conservation of natural resources andmaintaining quality of soil air and water including contribution to clean Ganga fund setup by the central government for rejuvenation of river Ganges.
Protection of national heritage alt and culture including restoration ofbuildings and sites of historical importance and works of art; setting up publiclibraries; promotion and development of traditional and handicrafts
Measures for the benefit of armed forces veterans war widows and theirdependents.
Training to promote rural sports nationally recognised sports Paralympicssports and Olympic sports.
Contribution to the Prime Minister's National Relief Fund or any other fund setup by the Central Government for socio-economic development and relief and welfare of theScheduled Caste& the Scheduled Tribes other backward classes minorities and women.
Contributions or funds provided to technology incubators located within academicinstitutions which are approved by the Central Government.
Rural development projects.
Slum area development.
In the last 7 years your company has contributed Rs18807 Million towards itswell-structured and well-focussedCSR activities.
Out of the CSR Budget of Rs6606.12 million ONGC spent an amount of Rs4952.29 millionin FY 2014-15. This translates to overall utilization of 74.97% of the CSR Budget.
Reason for non-utilization of full CSR budget:
Major Initiatives undertaken were mostly in transition phase so the allocatedearmarked budget could not be spent.
Some of the flagship projects undertaken were of long gestation period withbudget spread over 3-5 years thus resulting in lesser utilisation of earmarked budget forthe financial year 2014-15.
Some of the landmark CSR initiatives under implementation during the year 2014-15 byyour Company include:
(i) Varisthajana Swasthya Sewa Abhiyan: ONGC and Help-Age India Initiative
To provide basic medical facilities to elderly in terms of medical consultancymedicine distribution basic diagnostic test special health camp and palliative care attheir doorstep. A total of 20 Mobile Medicare Units (MMUs) are engaged for taking basichealthcare to the doorsteps of the elderly in nine states 17 Districts 35 blocks and 131Gram Panchayat and 240 villages of India .A total of 1186020 beneficiaries were treatedfor chronic illness such as Hypertension Diabetes Osteoarthritis Dyspepsia& Skinproblems etc.
(ii) Community Hospital in Lakhimpur- Kheri Uttar Pradesh:
The project is unique in terms of using the PPP model in CSR with full Capex of Rs45million contribution by ONGC and Opex borne by the Operating Partner. This 26 beddedCommunity Hospital would cater to Primary and Secondary Health Service Requirements fromBPL Economically Backward Class families. Healthcare services are being provided at 50%less cost than the existing CGHS rates.
(iii) Aids and Appliances to person with disability:
This is a Pan India CSR project undertaken in association with Artificial LimbsManufacturing Corporation of India (ALIMCO) and Bhagwan Mahaveer Viklang Sahayata Samiti(BMVSS) Jaipur commonly known as Jaipur Foot benefitting 45495 Person with Disabilities.Beneficiaries were provided
Orthopedic Hearing and Visually Aids and Appliances. The total financial implicationof the project was Rs262 million covering 39 ONGC operational areas and 61 BackwardDistricts in Phase-I of the project which concluded in the financial year 2014-15.
(iv) Government General Hospital (GGH) Kakinada:
ONGC has given financial assistance of Rs19 million to construct a separate buildingfor blood bank and to equip the hospital with additional equipment for blood bank generalsurgery and general medicine departments. This will immensely benefit people of EastGodavari District where ONGC has a substantial operational presence
(v) ONGC Mission Ujala:
The project envisages eye screening of 50000 children in Government Schools in NCRunder National Blindness Control Programme of Govt. of India in collaboration with reputedNGO PRAANI. Spectacles to 3000 children detected with refractive errors along withmedicines were provided under this project.
(b) Education & Vocational courses:
i. ONGC-GICEIT Computer Education Program:
Through this project employment- related free computer education is being imparted toeconomically underprivileged Youth. The project is implemented in association withBhartiya Vidhya Bhawan's Gandhi Institute of Computer Education and InformationTechnology (GICEIT) at five work centres of ONGC located at Mehsana Dehradun NaziraKaraikal and Rajahmundry. More than 8295 students have received computer training throughthese centers in the financial year 2014-15.
ii. ONGC-The Akshaya Patra Foundation:
A centralized fully automated mechanized kitchen is being set up to provide mid-daymeals to school going children (enrolled in Govt. schools) in the District of Surat. Thiskitchen was inaugurated by the Hon'ble Chief Minister of Gujarat Smt Anandiben Patel on 15thFeburary 2015. This kitchen has capacity to feed 200000 children per day. Theenrolment as on 31st March 2015 is 190840.
iii. Community School at Sitapur Uttar Pradesh:
The project is unique in terms of using the PPP model in CSR with full Capex of Rs27million contribution by ONGC and Opex borne by the Operating Partner-Shanti Devi MemorialCharitable Trust.
iv. ONGC Super 30
"ONGC Super 30" is a residential Coaching Programme for IIT aspirants basedat Sivasagar Assam. The total cost of the project is Rs6.70 million. The
initiative was conceived to cater to underprivileged and below poverty line studentswho are unable to get proper coaching to qualify engineering exams due to lack ofresources and funds.
(c) Projects for Physically and Mentally challenged
i. ONGC Centre for vocational rehabilitation for the differently abled:
A financial support of Rs13 million has been provided to Tamana School of Hope VasantVihar New Delhi for setting up of Autism Centre and provide vocational training for thementally challenged young adults and children working for their economic rehabilitation byteaching relevant vocational skills to them.
ii. ONGC -Cheshire Home Project for Physically and Mentally Challenged:
A project on health rehabilitation and allied services for economically disadvantagechildren with disabilities living in slums area of Mumbai undertaken with Cheshire Homes(India) Mumbai with financial assistance from ONGC. Children with Disabilities wereidentified from areas of Hanuman Nagar Damu Nagar and Shivaji Nagar covering 3 slumcommunities and provided with rehabilitation treatment and aids with an objective to helpthem lead a normal life.
(d) Environment Sustainability:
i. Eastern Swamp Deer Conservation Project
(Phase II) :
The phase II of the project includes capture of Eastern Swamp Deer from the source i.eKaziranga National Park and translocate them to Manas National park. This is a researchbased project to conserve and increase the viable population of Eastern Swamp Deer intheir natural habitat at Manas National Park. The total cost of the project is Rs 8.9million.
ii. Harit Moksha: Green Cremation System
This is a unique CSR initiative of ONGC undertaken with MokshdaParyavaranEvam VanSurakshaSamiti (MPEVSS) to reduce wood consumption during traditional cremations throughMokshda Green Cremation Systems (MGCS). The project includes installing 30 units of greencremation system in 8 cities of 7 different states with a budget of Rs92 million . Theproject helped in saving approximately 13700 tonnes of wood & reduced 26500 tonnesof GHG emissions till date.
(e) Development of Backward Districts:
The sustainable development project is being implemented in Jaisalmer a backwarddistrict in Rajasthan. Project involves setting up of 49 Wind Turbine Generators (WTG)each of capacity of 2.1 MW with total capacity of 102.9 M in association with M/S SuzlonEnergy Ltd. ONGC contribution towards the project is Rs 5620 million. 22 nos. of WTG havebeen installed.
(f) Women Empowerment:
ONGC as a leading organization and among the founder member of Women in Public Sector(IPS) established way back in 1990 under the aegis of SCOPE has always spearheaded womenempowerment Initiatives. Women Development Forum (WDF) an internal wing of ONGC womenEmployees was also formed in line with WIPS to encourage women employee to explore theirpotential to the fullest.
The basic aims and objectives of WIPS are:
To promote the growth and development of omen in Public Sector.
To assist the Public Undertakings in optimising the full potential in omenemployees.
To play a catalytic role in improving the status of omen in and around PSEs
Women in Public Sector (WIPS) presented ONGC with the Best Enterprise Award for WomenEmpowerment consecutively for 3 years till 2014. In the year 2015 ONGC was awarded thesecond prize for the same category.
(g) Other CSR Initiatives:
i) Hortoki Water Supply Scheme: The project aims to create a sustainable source ofsafe drinking water to the people of Hortoki Village Kolasib District Mizoram. A massive1.7 Lakhs litre water tank was constructed as part of the project to supply more than 40lpcd of water till 2043. ONGC has extended support of Rs 9 million for the project. Morethan 450 households of Hartoki village are benefited through this project
ii) Rajeev Gandhi International Sports Complex Dehradun: ONGC in association withGovt. of Uttarakhand is working towards building a Cricket stadium-cum-sports complex witha capacity of 30000 people extendable to additional seats in future car parking asports academy a club house or Gymnasium restaurant and other auxiliary facilities. ONGChas extended financial support of Rs500 million towards the project. The project isexpected to be completed in two years.
iii) Dashrath Stadium at Agartala: The project aims to create an Indoor sportscomplex in association with DDO Directorate of Youth Affairs. ONGC has extended support ofRs 243 million for the project.
iv) IIIT Agartala: ONGC has extended support of Rs30 million for setting up a newIIIT Campus in Agartala.
In addition to above major CSR initiatives undertaken in 2014-15 ONGC has partneredwith many NGO and other non- profit organization in implementing several other CSRinitiative across our country. All work centres of ONGC have designated CSR office to takecare of the local needs.
As a testimony to our CSR efforts your company has won many laurels such as:
1. Golden Peacock Award 2014 for CSR during 9th International Conference on CorporateSocial Responsibility-2014
2. ABP News Global CSR Excellence & Leadership Award for Best Overall CSR practices
3. 4th Annual Greentech CSR Platinum Award 2014 in petroleum explorationsector
4. Madan Mohan Malviya Golden Award for outstanding contribution in the field ofEducation
5. P L Roy CSR Award on 'International Day of Olde Persons' for support to the elderlythrough its CSR initiative 'Varishthajana Swasthya Sewa Abhiyan'
Consistent with the trend in preceding years your Company its various operating unitsand its senior management have been recipients of various awards and recognitions. Detailsof such accolades are placed at
Annexure - 'D'.
28. DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 134(3)(c) of the Companies Act 2013 withrespect to Directors' Responsibility Statement it is hereby confirmed that:
(i) In the preparation of the annual accounts the applicable accounting standards havebeen followed and there are no material departures from the same;
(ii) The Directors have selected such accounting policies and applied them consistentlyand made judgements and estimates that are reasonable and prudent so as to give a trueand fair view of the state of affairs of the Company as at 31st March 2015 andof the profit of the Company for the year ended on that date;
(iii) The Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act 2013for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities;
(iv) The Directors have prepared the annual accounts of the Company on a 'goingconcern' basis;
(v) The Directors have laid down internal financial controls which are being followedby the company and that such internal financial controls are adequate and are operatingeffectively; and
(vi) The Directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems are adequate and operating.
29. CORPORATE GOVERNANCE
Your Company has taken structured initiatives towards Corporate Governance and itspractices are valued by various stakeholders. The practices emanate from the need toposition multi-layered checks and balances at various levels to ensure transparency of itsoperations in the decision making process. In terms of Clause 49 of the Listing Agreementa report on Corporate Governance for the year ended March 31st March 2015supported by a certificate from the Company's Statutory Auditors confirming compliance ofconditions forms part of this Report.
ONGC has implemented the mandatory Guidelines of Department of Public Enterprises(DPE) Government of India on Corporate Governance to the maximum extent possible.
In terms of section 204(1) of the Companies Act 2013 the Company has engaged M/s P PAgrawal & Co. Company Secretaries in whole-time practice as Secretarial Auditors forconducting Secretarial Compliance Audit for the financial year ended 31stMarch 2015. Their report forms part of this Annual Report.
With regard to the observations of Secretarial Auditors as contained in their reportit is submitted that ONGC being a Government company all directors on the Board of thecompany are appointed by Government of India. The matter relating to appointment ofrequisite numbers of Independent Directors has already been taken up with the Government.
The Company has formulated and uploaded the following policies/codes on its website inline with the Companies Act 2013 and Listing Agreement:
(a) Code of Conduct for Board Members and Senior Management Personnel
(b) Related Party Transactions Policy & Procedures 2014
(c) Material Subsidiary Policy
(d) The Code of Internal Procedures and Conduct for prohibition of insider trading indealing with the securities of ONGC
In line with global practices your Company has made available all informationrequired by investors on the Company's corporate website
In addition the Company has a full-fledged Vigilance Department which is headed byChief Vigilance Officer who holds the rank of a Functional Director of the Company. With aview to maintain his independence the CVO reports to the Chief Vigilance Commissioner ofthe Government of India.
ii. Enterprise-wide Risk Management (ERM) framework:
In line with the requirements of Clause 49 VI of the Listing Agreement your Companyhas developed and rolled out a comprehensive Enterprise-wide Risk Management (ERM) Policythroughout the organization. The Audit & Ethics Committee periodically reviews therisk assessment and minimization process in ONGC.
The Risk Management policy of your Company is as follows:
"ONGC shall identify the possible risks associated with its business and commitsitself to put in place a Risk Management Framework to address the risk involved on anongoing basis to ensure achievement of the business objective without any interruptions.
ONGC shall optimize the risks involved by managing their exposure and bringing them inline with the acceptable risk appetite of the Company"
The Board of Directors have constituted a Board Level Risk Management Committee interms of Clause 49 of the Listing Agreement. The first meeting of the Committee was heldon 19.03.2015 wherein the risk appetite and present risk profile development of riskregister to comply with clause 49 of the listing agreement and Companies Act 2013 RiskManagement Policy in ONGC Risk Reporting structure Risk Management / mitigation processGovernance Risk Management & Compliance (GRC) module roll-out through SAP Review ofrisk register and identification of new & emerging risks categorization andquantification of risks and role of internal audit in ERM etc were reviewed.
iii. Meeting of Independent Directors: No Meeting of Independent Directors was heldduring 2014-15.
iv. Certificate of Independence by Independent Directors: The Independent Directorshave submitted declaration that they meet the criteria of Independence as per section149(6) of the Companies Act 2013.
30. STATUTORY DISCLOSURES
Your Directors have made necessary disclosures as required under various provisions ofthe Act and Clause 49 of the Listing Agreement. Extract of Annual Return
As per requirement of section 92(3) of the Companies Act 2013 the extract of theannual return in form MGT-9 is placed at Annexure-E.
Particulars of Employees
ONGC being a Government Company the provisions of section 197(12) of the CompaniesAct 2013 and relevant Rules shall not apply in view of the Gazette notification dated05.06.15 issued by Government of India Ministry of Corporate Affairs. The terms andconditions of the appointment of Functional Directors is decided by the Government ofIndia. The salary and terms and conditions of the appointment of Chief Financial Officer(CFO) and Company Secretary KMPs of ONGC is in line with the parameters prescribed bythe Government of India. Performance Related Pay of Functional Directors and otheremployees including CFO & Company Secretary (KMPs) is in line with the guidelines ofDepartment of Public Enterprises Government of India.
31. ENERGY CONSERVATION
The information required under Section 134(m)of the Companies Act 2013 read with theCompanies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988 isannexed as Annexure - 'F'.
32. AUDIT AND ETHICS COMMITTEE
In compliance with section 177(8) of the Companies Act 2013 the details regardingAudit & Ethics Committee is provided under Corporate Governance report which formspart of this Annual Report. There has been no instance where the recommendations of theAudit & Ethics Committee have not been accepted by the Board of Directors.
The Statutory Auditors of your Company are appointed by the Comptroller & AuditorGeneral of India (C&AG). M/s Mehra Goel & Co New Delhi M/s G D Apte & CoMumbai M/s Lodha and Co Kolkata M/s Varma & Varma Chennai and M/s Khandelwal Jainand Co Mumbai Chartered Accountants were appointed as joint Statutory Auditors for thefinancial year 2014-15. The Statutory Auditors have been paid a remuneration of Rs25.01million (previous year Rs22.92 million) towards audit fee and certification of CorporateGovernance Report.The above fees are exclusive of applicable service tax and reimbursementof reasonable travelling and out of pocket expenses actually incurred.
34. Auditors' Report on the Accounts
The Comments of Comptroller & Auditor General of India (C&AG) form part of thisReport and are attached as per Annexure-'G'. There is no qualification in theAuditors Report and there are no supplementary comments by C&AG under section143(6)(b) of the Companies Act 2013 on the Financial Statements of the Company. Notes tothe Accounts referred to in the Auditors Report are self-explanatory and therefore do notcall for any further comments. You would be pleased to know that your Company has receivedNil comments from C&AG and Statutory Auditors for the year 2014-15. This is the ninthyear in a row that the organization has received Nil comments.
35. COST AUDIT
Six firms of Cost Accountants were appointed as Cost Auditors for auditing the costaccounts of your Company for the year ended 31st March 2015 by the Board ofDirectors. The Cost Audit Report for the year 2013-2014 has been filed under XBRL mode on25.09.2014 which was well within the due date of filing (i.e.30.09.2014).
36. DIRECTORS POLICY ON DIRECTORS' APPOINTMENT ETC.
ONGC being a Government Company the provisions of section 134(3)(e) of the CompaniesAct 2013 shall not apply in view of the Gazette notification dated 05.06.15 issued byGovernment of India Ministry of Corporate Affairs. PERFORMANCE EVALUATION ONGCbeing a Government Company the provisions of section 134(3)(p) of the Companies Act 2013shall not apply in view of the Gazette notification dated 05.06.15 issued by Government ofIndia Ministry of Corporate Affairs.
APPOINTMENTS / CESSATION ETC
Since the 21st Annual General Meeting held on
19.09.2014 Shri P Uma Shankar Shri S. Ravi and Shri R.K. Singh (IndependentDirectors) vacated their office on 19.09.2014 (FN) in terms of Section 161 of theCompanies Act 2013. The tenure of Prof. Samir Kumar Barua and Shri Om Prakash Bhatt(Independent Directors) concluded on 13.12.2014.
On being appointed as Managing Director of ONGC Videsh Ltd Shri N K Verma relinquishedthe charge of Director (Exploration) ONGC on 27.08.2014. Shri U.P Singh AdditionalSecretary (Exploration) Ministry of Petroleum & Natural Gas joined the Board asGovernment nominee Director on 16.10.2014 in place of Shri Aramane Giridhar. Shri A.K.Diwivedi took over as Director (Exploration) on 16.03.2015.Shri A. K. Banerjeerelinquished the charge of the post of Director (Finance) on attaining the age ofretirement on 30.04.2015. Ms. Atreyee Das was appointed as Government Nominee Director on14.05.2015. On being appointed as Secretary Department of School Education and LiteracyDr. S.C. Khuntia Special Secratary MoP&NG and Government nominee resigned from theDirectorship of ONGC on
26.06.2015. Shri Ashok Varma Director (Onshore) relinquished the charge of Director(Onshore) on 31.07.2015 on attaining the age of superannuation and Shri V P Mahawar whohas been appointed as Director (Onshore) by Ministry of Petroleum & Natural GasGovernment of India took over charge on 01.08.2015. The Board places on record its deepappreciation for the excellent contributions made by Shri IRs Uma Shankar Shri S. RaviShri R.K. Singh Prof. Samir Kumar Barua Shri Om Prakash Bhatt Shri N. K. Verma ShriAramane Giridhar Shri A. K. Banerjee Dr. S.C. Khuntia and Shri Ashok Varma during theirtenure.
The strength of the Board of Directors of ONGC as on 1st August 2015 is 9comprising 6 Executive Directors (Functional Directors including CMD) and 3 NonExecutiveDirectors i.e. two Government nominees and one Independent Director. Ministry of Petroleum& Natural Gas has been requested to appoint requisite number of independent Directorsto comply with the provisions of Companies Act 2013 and Listing Agreement. A total of 13meetings of the Board of Directors of ONGC were held during the financial year 2014-15.
Details of other Key Managerial Personnel as per Rule 8 (5) (iii) of The Companies(Accounts) Rules 2014:-
Shri A. K. Srinivasan was appointed as Chief Financial Officer w.e.f.06.05.2015 and asKey Managerial Personnel w.e.f. 28.05.2015.
Shri N. K. Sinha Company Secretary superannuated on 30.06.2015 on attaining the age ofretirement. Shri V. N. Murthy took over as Company Secretary on 01.07.2015.
Your Directors are highly grateful for all the help guidance and support received fromthe Ministry of Petroleum and Natural Gas Ministry of Finance DPE MCA MEA and otheragencies in Central and State Governments. Your Directors acknowledge the constructivesuggestions received from Statutory Auditors and Comptroller & Auditor General ofIndia and are grateful for their continued support and cooperation.
Your Directors thank all share-owners business partners and members of the ONGC Familyfor their faith trust and confidence reposed in ONGC.
Your Directors wish to place on record their sincere appreciation for the unstintingefforts and dedicated contributions put in by the ONGCians at all levels to ensure thatthe Company continues to grow and excel.
For and on behalf of the Board of Directors
Annexure A Statement of Reserve Recognition Accounting
Standardised measure of Discounted Future Net Cash Flows relating to Proved Oil and GasReserve quantities as on 31st March 2015.
(Rs in million)
* Includes Abandonment Cost
1) The Revenues on account of crude oil & gas have been worked out on the basis ofaverage price (net of profit Petroleum) for the year 2014-15. The average price for crudeoil is net of Subsidy Discount.
2) Expenditure on Development Acquisition of capital assets Abandonment costs andOperating Expenditure have been considered at current costs i.e as on on 31.03.2015. Taxesand Levies have been considered at prevailing rates as on 31.03.2015.
3) The reserves have been estimated by ONGC's Reserve Estimates Committee following thestandard international reservoir engineering practices.
4) Only Proved Reserves of ONGC share have been considered. Probable or Possiblereserves have not been considered.
5) Both revenues and costs have been discounted to present value using 10% discountingfactor. The Net future earnings therefore represent the net expected future cash inflowsfrom production of recoverable reserves of crude oil and gas.
6) However neither the estimated net reserves nor the related present value should betaken as a forecast of future cash flows or value of these reserves because (a) futureestimated production schedules used in the valuation process are subject to change (b)up-gradation of Probable and Possible reserves would significantly affect the gross andnet present value of the expected future cash inflows (c) future crude oil and naturalgas prices are subject to change and (d) future expenditure on production (operating)development acquisition cost of capital assets abandonment costs and rates of taxes andlevies which may be at variance from those assumed herein.
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3)of section 134 of the Act and Rule 8(2) ofthe Companies (Accounts) Rules 2014)
Form for disclosure of particulars of contracts/arrangements entered into by thecompany with related parties referred to in sub-section (1) of section 188 of theCompanies Act 2013 including certain arms length transactions underthird proviso thereto
2. Details of material contracts or arrangement or transactions at arm's length basis
Report on CSR Activities
ONGC conducts its business as a responsible corporate citizen and believes in holisticapproach towards all issues pertaining to People Planet and Profit for a sustainabledevelopment and better future. ONGC is committed to achieve inclusive growth of themarginalized and deprived sections of the society through its various CSR initiativesacross the country.
ONGC has devised its Corporate Social Responsibility (CSR) and Sustainability Policy inconsonance with the CSR Policy framework enshrined in Section 135 of the Companies Act2013 (Act) Companies (CSR Policy) Rules 2014 (Rules) notified by Ministry of CorporateAffairs Government of India and Guidelines on Corporate Social Responsibility andSustainability for Central Public Sector Enterprises issued by Department of PublicEnterprises Government of India (DPE Guidelines 2014) which are effective from 1stApril 2014.
This policy applies to all CSR projects and programmes undertaken by ONGC as perinterpretation of activities listed in Schedule-VII of the Act within the geographicallimits of India particularly towards the benefits of marginalized disadvantaged poorand deprived sections of the society and the environment.
As per the policy projects and programmes are identified and budgets allocated forthem through a process that includes identification of suitable implementation agenciesneed assessment (where ever required) and clear roadmap of desired outcomes. The CSRprojects programmes and initiatives to be undertaken must fall within the purview of theSchedule - VII of the Act (as modified from time to time).
The CSR projects entail Need Based Assessment or Baseline survey to determine thefeasibility of the project. The objectives in identifiying sectors and geographies arequite specific and tangible. A detailed project report of the identified project isdevised with determining of time lines with clear identification of the goals. The annualbudget is to be allocated for activities in all focused areas ensuring adherence toSchedule VII of the Act.
The project approach mandates clearly identifying the beneficiaries. Post approvalagreements are being signed with the implementing agency prior to implementation of theproject. During the implementation phase the project is periodically reviewed andmonitored. Evaluation & Assessment preferably both concurrent and final (whereverpossible by a competent third party) are carried out to ensure the project achieves thedesired goals.
The focus areas and budget allocation for CSR projects programmes and activities aremade by the Committee on CSR and Sustainable Development in the beginning of everyfinancial year.
20% of the total budget are allocated in each of the five sectors as detailed below:
Promoting health care including preventative health care and sanitation andmaking available safe drinking water.
Promoting education including special education and employment enhancingvocation skills especially among children women elderly and the differently abled andlivelihood enhancement projects
Ensuring environmental sustainability ecological balance protections of floraand fauna animal welfare agro forestry conservation of natural resources andmaintaining quality of soil air and water
Rural development projects
Miscellaneous - Setting up homes and hostels for women and orphans; setting upold age homes day care centres and other such facilities for senior citizens; Protectionof national heritage art and culture including restoration of buildings and sites ofhistorical importance and works of art; setting up public libraries; promotion anddevelopment of traditional arts and handicrafts; Training to promote rural sportsregionally recognised sports Paralympics sports and Olympic sports; Other areas mentionedin Schedule - VII
The links to ONGC CSR and SD activities and a host of policies directed towards thebetterment of disadvantaged vulnerable and marginalised sections of stakeholders havebeen hosted on ONGC website www.ongcindia.com.
The ONGC CSR committee presently comprises Shri D. K. Sarraf CMD ONGC and Shri D. D.Misra Director (HR) ONGC under the chairmanship of Shri K. N. Murthy IndependentDirector.
However as per the approved CSR policy two more members i.e. Director (Finance) ONGCand an additional Independent Director will be members of the Committee. Presently thesetwo posts are vacant.
ONGC's average net profit under Section 135 of the Act in the last three financialyears was Rs33030 crore wherein the profit of the company as per Section 198 wasRs34716.61 crore ^31935.27 crore and Rs32440.25 crore in financial years 2011-12201213 and 2013-14 respectively.
The CSR expenditure for FY 2014-15 was pegged at Rs660.61crore 2% of the averageprofits (u/s 135) for the last three years. However ONGC registered an expenditure ofRs495.23 crore during FY 2014-15. The reasons for under-spending have been detailed in theBoard's report. The major CSR initiatives taken up during the financial year 2014-15 havealso been detailed in the Board's report. The manner in which the amount was spent during2014-15 is detailed in the Enclosure.
This is to certify that the implementation and monitoring of the CSR Policy in respectof all projects/programs covered under CSR initiatives for the year 2014-15 is incompliance with CSR objectives and Policy of the company
Enclosure to Annexure - C
Annexure -D ONGC: Awards & Recognitions 2014-15
1) ONGC moves three places up on Forbes Global 2000 list (2015) among oil & gasindustry
Forbes a leading international business journal has ranked ONGC at 183rdamong 2000 top global companies in its latest list published in May 2015. In the globaloil and gas operation industry ONGC has moved up three places to 18th.
2) ONGC is the top energy company in India as per Platts 250 rankings
ONGC has been ranked as the Top Energy Company in India in the coveted Platt's Top 250Global Energy Company Rankings 2014 (November 2014). ONGC has been ranked at 21st placeamong the global energy majors and 3rd among Exploration & Production Company(E&P).
3) ONGC among world's greenest companies
ONGC has been ranked 217th in the Newsweek Green Rankings 2014; the world'smost recognized assessments of corporate environmental performance. ONGC made a quantumjump from previous ranking of 386 (Green ranking 2012). The company now stands thirdamongst only seven Indian companies named in the prestigious list
4) ONGC climbs up to second position on the BT-500 India's Most Valuable Companies List
ONGC has been placed at the number 2 position in the BT -500 India's Most ValuableCompanies list 2014. ONGC has gained two places over the last year's rankings to take upits highest ever position on the BT 500 list since these rankings were institutionalizedin 1992.
5) ONGC bags Dun & Bradstreet Corporate Excellence Award - 2014
ONGC received the prestigious Dun & Bradstreet Corporate Excellence Award forexcellence in the Oil and Gas Production sector. In all there were 46 sectors which wererecognized for their excellence and these were chosen among the top 500 companies ofIndia by the primary yardstick of their contribution to India's GDP
6) ONGC Academy conferred with Golden Peacock National Training Award - 2014
ONGC Academy was adjudged the Winner of Golden Peacock National Training Award 2014 bythe Institute of Directors. The award was presented on 23rd May 2014. Theaward was conferred in recognition of the excellent training practices at each and everylevel right from entry level for equipping fresh graduates with the requisite skillsetsto leadership development programmes for creating leaders of tomorrow.
7) ONGC ranked among top Indian brands
ONGC has been placed 14th among the best Indian brands in the recentEconomic Times- Interbrand 'Best Indian Brands' study 2014. To its credit ONGC hasmaintained its position as a top Indian brand despite the company not being in retailbusiness. Most of the other brands listed above ONGC have a direct consumer connection.
8) ONGC awarded the "Most Valuable PSU" by India Today
ONGC was recognized as the "Most Valuable PSU" in the Maharatna category inthe India Today Group-MDRA Survey of India's best PSUs 2014. It was the first ever surveyconducted by the India Today Group in association with Marketing and Development ResearchAssociates (MDRA).
9) ONGC receives highest sports award 'Rashtriya Khel Protsahan Puraskar'
President of India presented Rashtriya Khel Protsahan Puraskar to ONGC in theRashtrapati Bhavan on the occasion of National Sports day on 29th August 2014.ONGC received the award in the category of 'Employment of Sports persons and sportswelfare measures'.
10) ONGC adjudged Exploration & Production Company of the year - PetroFed Awards
ONGC was adjudged as Exploration & Production -Company of the year at the PetroFedOil & Gas Industry Awards 2013 organized on 8th September 2014.
11) ONGC received Governance Now PSE Awards 2014
ONGC was conferred awards in two categories- 'Best Strategic Performance' and'Innovation in Business' at the Governance Now PSU Awards 2014 in the Maharatna category.ONGC's fully owned subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL) was alsorecognized for best 'Growth and Competencies' in the Mini Ratna Class I category.
12) KDMIPE receives two Global Sustainability Awards
KDMIPE secured two major Energy and Environment Foundation Awards during the 5th WorldRenewable Energy Technology Congress and Expo 2014 organized by Energy and EnvironmentFoundation. The Institute got 'Global Sustainability Award 2014- GOLD' for outstandingachievements in Rainwater Harvesting and Sustainability Management; it also secured'Global Sustainability Award 2014 - SILVER' for outstanding achievements in Management ofEnergy Efficiency and Sustainability.
13) ONGC safety practices recognized at OISD Awards
ONGC secured five awards at the Oil Industry Safety Directory (OISD) Awards ceremonyfor 2012-13 held at Delhi on 3rd December 2014.
ONGC's Tripura Asset bagged the award for 'Best Onshore Asset';
ONGC's Uran Plant bagged the award for 'Best Processing plant'.
ONGC was also awarded as Best Organisation for its near-miss reporting in thecategory 'Exploration & Production Operations'.
ONGCian Mr. Mangaldas Nikkaram Bhatti was recognized for significantcontribution towards safety in individual capacity.
14) ONGC conferred upon ' Outstanding Accomplishment' awards at CII-ITC SustainabilityAwards
ONGC was bestowed with 'Outstanding Achievement' awards under Corporate Excellence atCII-ITC Sustainability Awards 2014 on 19th December 2014.
15) World Marketing Congress honors ONGC with 'Master Brand Award'
The World Marketing Congress has conferred the prestigious Master Brand award to ONGCon 14th November 2014. The title of Master Brand is conferred upon thosebrands that appeal to a large set of consumers while constantly keeping in mind a consumercentric approach.
16) ONGC receives Golden Peacock Award for excellence in CSR
ONGC received the prestigious 'Golden Peacock Award for Corporate SocialResponsibility' for 2014. ONGC has been declared as the Winner in the Oil & GasCategory.
1) Shri K S Jamestin ex- Director HR felicitated with 'Lifetime Achievement Awardfor Excellence in HR
Mr. K S Jamestin ex- Director (HR) received the 'Lifetime Achievement Award forExcellence in HR' at the Lokmat - HR Leadership Awards 2014 held in Mumbai on 28thJune 2014.
2) Shri K S Jamestin ex- Director HR conferred with 'Unitop Award' by IIMM Mumbai
The Mumbai Chapter of the Indian Institute of Materials Management (IIMM) conferredupon Mr K S Jamestin ex-Director (HR) the prestigious Unitop Award for EnduringContribution to Excellence in Supply Management at a function in Mumbai on 28thJuly 2014. The Award was conferred in absentia at a function which was graced by topprocurement professionals of diverse industries.
3) ONGCian decorated by Prime Minister as National Brand Ambassador
K Kanagaraj of ONGC Cauvery Asset has been honoured as National Brand Ambassador ofVocational Training by Hon'ble Prime Minister NarendraModi.The ONGCian received thishonour at a national function organised by Directorate General of Employment &Training (DGE&T) under Ministry of Labour and Employment Government of India on 16thOctober 2014 at New Delhi.
4) ONGCian honored at Prime Minister's TA Day Parade
Mr. R.S. Meena SE (Civil) posted in Mehsana has been awarded Territorial Army (TA)Medal at Prime Minister's TA Day Parade 2014.
5) National Honours for ONGC Fire Services personnel
The President of India has awarded Fire Service Medal for Meritorious Service to threepersonnel of ONGC Fire Service - Mr Amitabh Singh DGM (FS) B&S Asset Mr S C GaurFire Officer Mehsana Asset and Mr Kailash Mishra Chief Fireman Mehsana Asset on 26thJanuary 2015.
Annexure - E
Form No. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31st March 2015
(Pursuant to Section 92 (3) of the Companies Act 2013 and Rule 12 (1) of the Companies(Management and Administration) Rules 2014
I. REGISTRATION AND OTHER DETAILS:
i) CIN:- L74899DL1993GOI054155
ii) Registration Date: 23rd Day of June 1993
iii) Name of the Company: Oil and Natural Gas Corporation Limited
iv) Category/Sub-Category of the Company: Government Company
v) Address of the Registered office and contact details: Jeevan Bharati BuildingTower-II New Delhi-110001. Ph: 23310156 Fax: 23316413
vi) Whether listed company Yes/No: Yes
vii) Name Address and Contact details of Registrar and Transfer Agentifany: M/sKarvy Computershare Pvt. Ltd. Karvy Selenium Tower B Plot 31-32 Gachibowli FinancialDistrict Nanakramguda Hyderabad-500 032 Ph: 04067161562 M: +91 040-9177401094 Fax: 040 -23001153 firstname.lastname@example.org karvy
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
III. PARTICULARS OF HOLDING SUBSIDIARY AND ASSOCIATES COMPANIES
IV. SHARE HOLDING PATTERN (Equity Share Capital Break up as percentage of Total Equity)i) Category-wise Share Holding
ii) Shareholding of Promoters
iii) Change in Promoters' Shareholding (please specify if there is no change)
*There is no Change is Promoter's Shareholding.
iv) Shareholding Pattern of top ten Shareholders (other than Directors Promoters andHolders of GDRs and ADRs):(*)
* Details are placed at Appendix
v) Shareholding of Directors and key Managerial Personnel :
Indebtedness of the Company including interest outstanding/accrued but not due forpayment
vi) REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director Whole-time Director and / or Manager :
B. Remuneration to other directors:
(Figures in f)
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD
(Figures in f)
vii) PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES:
(iv) Shareholding Pattern of top ten Shareholders (other than Directors Promoters andHolders of GDRs and ADRs):
A. ENERGY CONSERVATION
The following measures were taken towards energy conservation during 2014-15
During the year LED Retrofit tube lights (20W)-1800 nos. were replaced in placeof conventional 36W/40W Tubes having power consumption of approx. 50W including choke.
25 KW Roof top Solar Plant was installed at KDMIPE which is feeding power toStreetlights of KDMIPE.
For renovation works at various labs/ offices of KDMIPE 120 nos. LED (36/ 40W)were replaced in place of 2x40W Tube fitting having power consumption of approx. 100Wincluding choke.
308 Nos. of 2X40W Tube fittings having power consumption of 100 Watt werereplaced by LED Fittings
(36 ) in GEOPIC.
As a Green initiative 15K solar photo-voltaic power plant was installed atGEOPIC roof top.
During renovation of IRS canteen all the light fittings 12x40 tube lightfittings (12 no.) have been replaced with 43W LED light fittings (9 no.)
UranPlant : The measures taken during 2014-15 include 125 K p Solar Power Plantat Roof Top of Raw ater Reservoir and 50 KWp Solar Power Plant at Roof Top of New APUSubstation.
Hazia Plant - Movement detector lighting circuits have been installed inunmanned sub-stations.
6 AC-VFD rigs have been introduced in Onshore Assets.
Ankleshwar Asset installed and commissioned 2 nos. of hired gas compressors oneeach in Gandhar & Ankleshwar fields to reduce gas flaring and monetize the same.
HPSV lamps in street lighting were replaced by Energy saver LED lamps in IDT.
Impact of measures for reduction of energy consumption and consequent impact on thecost of production of goods
The energy conservation measures taken as above have resulted in significant saving.Further the above measures have resulted in reduction of significant quantity of fuelconsumption (HSD Natural Gas and electricity).
B. RESEARCH AND DEVELOPMENT Specific areas in which R&D was carried out
Updation of tectonic map of India.
Basin architecture and Mesozoic sedimentation in western offshore basins.
Analysis of the various elements of Petroleum system(s) of the study in KG andMahanadi areas with respect to hydrocarbon charging.
Delineation of shallow pay sands in a pilot area of Ankaleshwar field CambayBasin.
Evaluation of its hydrocarbon prospectivity in Chenab-Beas Sector of HimalayanFoothills in analogy with Upper Indus Petroliferous basin.
Plate Tectonic reconstruction of Gondwana deposits of India.
Strontium-Neodymium (Sr-Nd) isotopic and geochemical characterization ofbasaltic basement in
estern Offshore Basin.
Evaluation of low resistivity pay sand GS-12 of Gandhar field.
Assessment of Gas Hydrate potential in Andaman offshore area.
Basin Centered Gas prospectivity in arsan Low in Mehsana Area North CambayBasin.
Software development using CUDA-GPU Technology
Software development for data access from OpenWorks database to otherplatforms over the network
Software development for interactive Spectral Decomposition in Petrel toimprove the understanding of anomalous zones quickly by generating the spectral attributeson the fly from the seismic data.
Development of software for improving the frequency bandwidth to induct theMPI parallel processing techniques using high performance cluster systems for computeintensive seismic processing methods.
Development of software for transforming angle gathers to offset gathers asan OMEGA plugin
Interpretation of Passive Seismic data to absorb this fast emergingTechnology to generate 3-D velocity structure of the sub-surface for hydrocarbonexploration using data from micro-earthquakes.
Anisotropic Pre-stack Depth Migration (PSDM) using seismic 3D datapertaining to prospect B173-A of Neelam-Heera Asset Mumbai Offshore Using OMEGA andGeodepth Softwares
Application of Geostatical inversion-technique for removal of coal effect.Structural Engineering
Life extension and recertification of the offshore jacket platforms inwestern offshore which have outlived their design lives through a collaborative projectwith DNV GL.
Risk based inspection planning for offshore structures in western offshore
Material Selection Corrosion Control
Suitable material of construction for tubular and flow line of deep waterdevelopment
Application of Field vane shear Test in offshore geotechnics
Gas Hydrate Studies
> Studies on the feasibility of gas production from gas hydrate bearingreservoirs using molecular substitution technique
IRS has completed a number of R&D Projects in FY (14-15) on Field developmentbased on Reservoir simulation studies Performance monitoring EOR processes - Lab designand simulation Reservoir characterization productivity enhancement projects and basiclaboratory data generation for various fields of ONGC.
0 Feasibility Study on introduction of Nano based Non-damaging Drilling Fluidtechnology in ONGC for increasing Well Productivity and reduction in drilling cost.
0 Proper mud design for drilling in shale sections (long exposure period) inCambay KG and Cauvery basins ensuring well stability- (Head COD-Shale gas Vadodara).
0 Design of Mud system for the wells of Daman development Project (C-24 Addl. Dev.& B 12 fields) -B&S Asset Mumbai.
0 Design of Mud system for the wells of C -26 cluster (C-23 C -26 and B -12-1fields)- B&S Asset Mumbai.
0 Design of Mud system for Sub-hydrostatic reservoirs (Bassein Vasai East and NBPfields)- (B&S Asset Mumbai).
0 Designing of Mud policy for drilling Mukta and Bassein (Limestone and shaleformations) and Panna pays (Sandstone-Shale formations) of Heera field- (N & H AssetMumbai).
0 Low solids/ solid free mud design for successful completion of wells with highangle long section in basement in Borholla and adjoining areas SAS A&AA Basin- (CODBasement Exploration Mumbai)
0 Inhibited mud system for Kaoliniticshales- (MS Mumbai).
0 Development of Baryte free synthetic oil based reservoir drilling fluid-( MSMumbai ).
0 Drilling fluid for shale gas (Horizontal wells)- (Mud Corporate).
0 HTHP high density clear fluid brines alternative to Cesium Formate- ( MudCorporate).
0 Feasibility studies of using oil field effluent for preparation of mud &brine- Previous year follow up project- (MS Ahmedabad Asset).
0 Identification of suitable deflocculant for polymer mud (KCl-PHPA)- (MSAhmedabad Asset).
0 Baryte sagging in HTHP wells- (MS Rajahmundry).
0 Geo-mechanical modelling of B-12 field (Tapti Daman Area Mumbai Offshore) basedon inputs derived from recently drilled wells in the area- (B&S Asset Mumbai).
0 Geo-mechanical study of Kunjaban field (Tripura) and to suggest safe Mud WeightWindow along with suitable Casing Policy to counter the wellbore instability problems-(MS- Tripura).
0 Geo-mechanical study (post drill analyses) of some wells drilled in CauveryAsset/ Basin namely KIDA (Kali) KADL (Kuthalam) VNAC (Vanjiyur) BVDA (Bhuvanagiri)BVDB (Bhuvanagiri) and ABAA (Adambavur) and to suggest mud weight window for drillingfuture wells in the respective fields- (Cauvery Asset).
0 Geo-mechanical study of Khubal field (Cachar) and to suggest suitable Mud WeightWindow along with Casing Policy for drilling directional wells in the field- (MS-Cachar).
0 Framing specification of HTHP viscosifier and
dispersant- (MS-Mumbai).0 Design of optimum casing policy and Mud systemfor
wells of Daman Development Project (C-24 Addl. Dev. &
B12 fields)- (B&S Asset Mumbai). 0 Design of optimum casing policy and Mudsystem for
wells of C-26 Cluster (C-23 C-26 and B-12-1 Fields)-
(B&S Asset Mumbai). 0 Designing of Casing and Mud policy of drilling Mukta
and Bassein (Limestone and Shale Formations) and
Panna pays (Sandstone-Shale formations) of Heera
field- ( N&H Asset).
0 Formulation of suitable casing and mud policy for Isolation of gas bearing BandraPay (Isolating shallow gas reservoir Bandra)- (N&H Asset).
0 Well design for successful completion of wells with high angle long section inbasement (including feasibility of using Under-reamer) in Borholla and adjoining areasSouth Assam Shelf A&AA Basin-(CoD Basement)
0 Well plan for the Horizontal Well BVDA (TD-3475m TVD)- (Cauvery Asset Karaikal).
0 Well plan for the Horizontal Well BVDB (TD-3800m
TVD)- (Cauvery Asset Karaikal). 0 Well plan for Well # TIAA (TD-3000m)- (Cachar
Forward Base Silchar). 0 Comparative Study of Digvijay vs. Dalmia Cement for
Slurry Design of HP-HT Wells in East Coast & West
Coast Fields and Recommendation for Improvement in
the Physical / Chemical Parameters of Digvijay
Cement- (CS-Mumbai).0 Comparative Study of Dalmia vs. Dyckerhoff Cement
for use in Slurry Design for Ultra hP/HT Wells in East
Coast & West Coast Fields- (CS-Mumbai). 0 Cementation Job in Loss and GainSituation in 9 5/8"
Casing and 7" Liner Job in Eastern / Western Offshore
of MR- (Mumbai Region).
0 Formulation of Tentative Specification for Cement Additives Packages for LowTemperature and Light Weight Application- (Mumbai Region).
1 Modified formulation and preparation technique of RSF pill for Mumbai Region- (MumbaiRegion).
I Isolation of High Permeability/Water Charged Streaks within Bassein Pay NeelamField- (N&H Asset Mumbai).
0 Analysis of shale gas well cementation of the well JMSGA- (Ankleshwar Asset) for
? Probable reasons for poor CBL-VDL of 7" casing
? Howto improve CBL-VDL for Hydro fracturing
? Howto avoid such failure in future
0 Cementing solution for wells of Khubal field and optimization of cement slurrydesign for a good primary cementation- (Tripura Asset).
0 Analysis of reasons for Poor CBL-VDL in HT-HP well of Rajahmundry Asset-(Rajahmundry Asset).
Benefits derived as result of above R&D:
The R&D projects undertaken by your Company facilitated speedier and effectiveE&P activities of the Company.
Expenditure on Research & Development
(Rs in million)
C. Technology absorption and adaptation
Viscoelastic foam acid system (VFA) VSDA & DPRS has been implemented inMumbai offshore wells resulting in appreciable oil gain.
For the first time Rigless WSO Job followed by cement squeeze by CTU was carriedout in Ahmedabad Asset.
Two Bottom hole samples of Nagayalanka field a HPHT reservoir for Joint Venture(Cairn Energy-ONGC consortium) from well NL-1zST at a depth of 4045.2m WL (Raghavpuramsand) and 3995.2m WL (Golapalli sand) were collected by Schlumberger for PVT studies. Boththe samples were tested successfully under HPHT conditions.
Acquired PIPENET vision software (1.7) Spray sprinkler module from M/s. SunriseSystem U.K to check the fire water adequacy.
I EOT acquired State of the Art Software SAFETI/Phast-6.7 from DNV forQuantitative Risk Assessment.
Mehsana Asset has developed an in-house pipeline information system on googlemaps. The system provides all information related to various pipelines of the Asset theirroutes types sizes distances etc. The facility is available from anywhere throughintranet with user login authentication.
6 Nos of AC-VFD state of art drilling rigs have been introduced in Assam Asset(3 Nos) Ankleshwar Asset (1 Nos) Rajahmundry Asset (1 Nos) and Cauvery Asset (1). Theserigs have a capacity of drilling upto 6100 m and have state of the art electronicssystems. These rigs have been procured from M/s BHEL.
Ankleshwar Asset has inducted 2 nos. of new logging units for cased hole andproduction logging services on 20th October 2014. The units have been sourcedfrom M/s Weatherford Llc and are equipped with state of art tools for all types of welland reservoir related jobs.
Rajahmundry Asset has acquired a sophisticated new open hole logging unit armedwith most updated features and specifications. The new unit is also supplemented withhigh-tech imaging tools like STAR (Simultaneous Acoustic and Resistivity Tool) ECBIL(Extended Circumferential Bore Hole Imaging Log) and Segmented Bond Tool (SBT) thusenhancing the in-house capability by huge proportions. The hi-tech STAR tool providesbetter reservoir description fracture detections borehole break-outs and othergeological applications.
In a breakthrough technology application hydro-fracturing was successfullycarried out in two HP-HT wells of the Rajahmundry Asset. The wells MSAC ( BHT-165.5 Deg C)& MSDB ( BHT-157 Deg C) of Malleshwaram fields were fractured by WSS Ahmedabadthrough in-house developed technology in December 2014. The technology for HPHT ispatented and is available at a significant premium in the market. Therefore this pathbreaking success has opened a new vista for unlocking the potential from tight & HPHTreservoirs through in-house fracturing in a cost effective way.
Tripura Asset has used new technology application of under balancedperforation using Tubing Conveyed Perforation (TCP) guns in wells BRM#25 (Baramura field)and AD#38 (Agartala Dome field) with very encouraging results.
Tripura Asset has acquired state of art well activation and testingequipment to augment well activation/ testing capabilities. Asset has acquired one 200 kschigh pressure compressor for well activations and two nos. of high pressure horizontal 3phase test separators with state of art instrumentation for well testing operations.
In Cauvery Asset Gas Corrosion Inhibitor (GCI) dosing system has beeninstalled at the Gas Collecting System (GCS) Kovilkallapal. The system is a first of itskind at Cauvery Asset and was commissioned on 3rd October 2014. The systemwill help to improve the gas evacuation system to transport gas in a safe manner.
BWA (Broadband Wireless Access): BWA project based on IEEE 802.16d standardcomprises of 7 base stations and its associated 227 remote locations at AhmedabadAnklehwar Gandhar Cambay Mehsana Vadodara and Neelam Process complex. A 'Pilot Test'was carried out at Gandhar before rollout of the Project. 127 nos of towers (height- 10M20M 30M 40M and 60M) were erected in Western onshore under the Project. The system isoperational at estern Onshore locations successfully with 99% availability.
Enterprise Wide SCADA (Supervisory Control and Data Acquisition) System: Theproject created a single platform for monitoring the operations of ONGC's Drilling andProduction facilities and covered 247 onshore production facilities 11 offshore processcomplexes 157 un-manned well platforms 9 offshore and 64 onshore drilling rigs 2Process plants and 1 mini-refinery. Detailed engineering & project execution on aturnkey basis has been carried out by engaging M/s ABB Limited Bengaluru as an EPCContractor. The system helps in taking tactical decisions at field level operationaldecisions at Base office and Strategic decisions at the Corporate Office level. Data fromSCADA system can be directly interfaced to other corporate databases and ERP systems.
IBM Messaging platform: The IBM Lotus messaging platform has been deployedin ONGC with mail servers based at Delhi and Mumbai. Introduction of O drive anauthenticated cloud based storage facility was also rolled out on IBM Lotus MySpace whichprovides users a facility to store files & documents that can be accessed fromanywhere. Myspace is also being used to share files with other users form communities andcollaborate.
Field implemented IDT developed Micro bubble system successfully at well no.HSD #8H (South Heera Field) of Mumbai Region.
D Information regarding Imported Technology for last five years
E. Information on Foreign Exchange Earnings and Outgo
(Rs in millions)
Environment Protection and Conservation Technological Conservation Renewable EnergyDevelopments Foreign Exchange Conservations
The measures taken by ONGC with regard to development and utilisation of alternatesources of energy have been brought out in the Board Report under the heading"Unconventional sources of energy" and "Carbon Management &Sustainability Development". Apart from the above measures taken for environmentalprotection are outlined below:
Conservation of water: To prevent further depletion and to sustain ground watertable KDMIPE dug six wells to collect the discharge water at different locations ofcampus.
Recycling of waste: KDMIPE also operates a six-pit Vermi-compost plant where dryleaves and kitchen waste are recycled. As a resultKDMIPE Campus is free from burning ofwaste papers by recycling the same.
Ringal plantation: To sustain fragile ecosystem of Himalayas ringal plantation inUpper Himalayan Region is being carried out as an initiative under National Action Plan onClimate Change launched by the Prime Minister. So far 10.75 lakhs Ringal plantation in430 ha of Upper Himalayan region has been done resulting in 1.97 million tonnes of CO2fixation per annum.
Mangrove plantation: For protection and stabilization of shoreline close to ONGCAssets mangrove plantation is being carried out. So far 19.95 lakhs mangrove plants havebeen planted in Gandhar Area and 1.5 lakhs near Hazira Plant. To spread awareness onsignificance of Mangroves plantation protection and its continued cultivation programmeswere arranged among children and local communities in these areas.
Bio-Remediation: To prevent the contamination of soil ONGC entered into a ratecontract with ONGC's joint venture company OTBL for Bio- remediation of oily sludge/ oilcontaminated waste. In the financial year 2014-15 about 69152 MT of oily sludge/ oilcontaminated waste has been bio-remediated across various assets of ONGC
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THECOMPANIES ACT 2013 ON THE
FINANCIAL STATEMENTS OF OIL AND NATURAL GAS CORPORATION LIMITED FOR THE YEAR ENDED 31MARCH 2015
The preparation of financial statements of Oil and Natural Gas Corporation Limited forthe year ended 31 March 2015 in accordance with the financial reporting frameworkprescribed under the Companies Act 2013 is the responsibility of the management of thecompany. The statutory auditor appointed by the Comptroller and Auditor General of Indiaunder Section 139 (5) of the Act is responsible for expressing opinion on the financialstatements under section 143 of the Act based on independent audit in accordance with thestandards on auditing prescribed under section 143(10) of the Act. This is stated to havebeen done by them vide their Audit Report dated 28 May 2015.
I on the behalf of the Comptroller and Auditor General of India have conducted asupplementary audit under section 143(6)(a) of the Act of the financial statements of Oiland Natural Gas Corporation Limited for the year ended 31 March 2015. Thissupplementary audit has been carried out independently without access to the workingpapers of the statutory auditors and is limited primarily to enquiries of the statutoryauditors and company personnel and a selective examination of some of the accountingrecords. On the basis of my audit nothing significant has come to my knowledge which wouldgive rise to any comment upon or supplement to statutory auditors' report.
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READWITH SECTION 129(4) OF THE COMPANIES ACT 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OFOIL AND NATURAL GAS CORPORATION LIMITED FOR THE YEAR ENDED 31 MARCH 2015
The preparation of consolidated financial statements of Oil and Natural GasCorporation Limited for the year ended 31 March 2015 in accordance with the financialreporting framework prescribed under the Companies Act 2013 is the responsibility of themanagement of the company. The statutory auditor appointed by the Comptroller and AuditorGeneral of India under Section 139 (5) read with section 129(4) of the Act is responsiblefor expressing opinion on the financial statements under section 143 read with section129(4) of the Act based on independent audit in accordance with the standards on auditingprescribed under section 143(10) of the Act. This is stated to have been done by them videtheir Audit Report dated 28 May 2015.
I on the behalf of the Comptroller and Auditor General of India have conducted asupplementary audit under section 143(6)(a) read with section 129(4) of the Act of theconsolidated financial statements of Oil and Natural Gas Corporation Limited forthe year ended 31 March 2015. We conducted a supplementary audit of the financialstatements of subsidiaries and Joint Venture Entities (As per Annexure - I) but did notconduct supplementary audit of the Financial Statement of subsidiaries Joint Ventures andAssociates (As per Annexure - II) for the year ended on that date. This supplementaryaudit has been carried out independently without access to the working papers of thestatutory auditors and is limited primarily to enquiries of the statutory auditors andcompany personnel and a selective examination of some of the accounting records.
On the basis of my audit nothing significant has come to my knowledge which would giverise to any comment upon or supplement to statutory auditors' report.