It gives me immense pleasure to present on behalf of the Board of Directors of yourCompany the 25th Annual Report on the business and operations of Oil And Natural GasCorporation Ltd. (ONGC) and its Audited Financial Statements for the year ended March 312018 together with the Auditors' Report and Comments (on the Accounts) of Comptroller andAuditor General (CAG) of India thereon.
Your Company has steadfastly focussed on organic growth through its exploratoryendeavours and built a healthy hydrocarbon reserve profile to sustain growth in future.During FY'18 the Company registered Reserve Replacement Ratio (RRR) of 1.48 (with 2Preserves) and thereby maintaining RRR of more than one in the twelfth consecutive year.Twelve oil and gas discoveries were made in various basins of the country. With thesediscoveries your Company accreted reserves (2P) of 67.83 million metric tonnes of oil andoil equivalent gas (MMtoe). This has been possible because of extensive exploration inknown basins as well as frontier plays. Two out of 12 discoveries i.e. Mattur West-1/(Cauvery onland) and Matar-1 (Cambay onland) have already been monetized and theseprospects are producing since May 31 2017 and January 30 2018 respectively.
Domestic crude oil and natural gas production of your Company along with the share indomestic joint ventures (PSC-JVs) during FY'18 has been 50.04 MMtoe which is about 2.5%higher than FY'17 production (48.80 MMtoe). On standalone basis crude oil production fromthe Company operated fields has been 22.31 Million Metric Tonnes (MMT) against productionof 22.25 MMT during FY'17. Considering the largely mature producing field portfolio ithighlights the Company's prudent reservoir management and effective technologicalinterventions in improving the production. Natural gas production during FY'18 has been23.48 Billion Cubic Metre (BCM) against 22.09 BCM during FY'17; an increase of 6.3 %. Thisis a significant achievement as it marks the second consecutive year that the Company hasregistered an increase in its domestic natural gas output. Your Company's share indomestic Joint Ventures' production was 3.13 MMT of crude oil (3.29 MMT in FY'17) and 1.13BCM of natural gas (1.18 BCM during FY'17). Combining the two total domestic productionhas been 25.43 MMT of oil and 24.61 BCM of gas Production of value added productsincreased by 4.7%; from 3.24 MMT in FY'17 to 3.39 MMT during the year with contributionfrom C2-C3 and Hazira plants in Gujarat and Uran in Maharashtra. All ventures of yourCompany established for value-chain integration i.e. ONGC Petro additions Ltd (OPaL)ONGC Mangalore Petrochemicals Ltd (OMPL) ONGC Tripura Power Company Ltd (OTPC) Dahej SEZLtd (DSEZ) and Mangalore SEZ Ltd (MSEZ) are now operational and started generatingrevenue.
Salient highlights with respect to performance of your Company during FY'18 are asbelow:
Your Company made 12 Oil and Gas discoveries; 6 in Onshore and 6 in Offshore.One discovery is in New Exploration and Licencing Policy (NELP) block. Two of thesediscoveries have already been put to production.
With these 12 discoveries your Company accreted 67.83 MMtoe of 2P reserves inthe domestic fields.
RRR (2P) for FY'18 was 1.48; more than One for 12 consecutive years.
Standalone Oil and Oil equivalent gas (O+OEG) output is 45.79 MMtoe; 3.3% higherthan FY'17.
Onshore crude oil and natural gas production increased by 1.7% and 8.3%respectively.
Offshore gas production registered an increase of 5.7%.
Production of Value Added Products increased by 4.7%.
Revenue from Operations was at Rs 850041 million against Rs 779078 million inFY'17.
Profit After Tax (PAT) was at Rs 199453 million against Rs 179000 millionduring FY'17.
Acquisition of 51.11% stake in Hindustan Petroleum Corporation Limited (HPCL).With this acquisition Company's refining capacity increased to 42.198 MMTPA; accounting18% of country's total refining capacity.
The highest ever deployment of 37 rigs for offshore operations.
The highest in last 27 years drilling of 503 wells (119 exploratory and 384development).
The overall Cycle Speed and Commercial Speed of exploratory and developmentdrilling achieved during 2017-18 is the highest ever since inception and stood at 997meter/ rig month and 1616 meter/ rig month respectively. An increase of more than 9%achieved in commercial speed compared to previous year.
4 projects worth Rs 68300 million (approx.) were completed.
Significant development of KG-DWN-98/2 block in Krishna-Godavari (KG) Basin withinvestment of about USD 5076 million (approximately Rs 340000 million) leading to Peakoil production from the field to the extent of 78000 bpd and natural gas @16 MillionMetric Standard Cubic Meter per Day (MMSCMD).
Gas sales increased from 17.06 BCM in FY'17 to 18.58 BCM an increase of 8.9%.
Gas flaring during the year reduced from 2.4% to 1.9%.
Farm-in/ Farm-out (FIFO) agreement signed with GSPC on March 10 2017 to acquire 80% PIwith operatorship in block KG-OSN-2001/3. Acquisition completed on August 04 2017 with aninvestment of USD 1195 million.
Commencement of Coal Bed Methane (CBM) field development operations in Bokaro and NorthKaranpura blocks in Jharkhand. Operations resumed in Jharia block. Techno-economicanalysis was carried out in Raniganj block.
Revenue from Operations of the ONGC Group was Rs 3622462 million and Profit After Taxwas Rs 221059 million (attributable to owners) during FY'18.
ONGC Videsh Limited (OVL) a wholly owned subsidiary of your Company registeredhighest-ever production of 14.16 MMtoe of O+OEG during the year. It recorded consolidatedRevenue from Operations of Rs 104176 million and consolidated Profit After Tax of Rs9815 million attributable to owners(Rs 7573 million in FY'17).
Mangalore Refinery and Petrochemicals Limited (MRPL) a subsidiary of your Companyrecorded highest-ever throughput of 16.31 MMT during FY'18.
MRPL recorded 6.1% increase in Revenue from Operations to Rs 630836 million (Rs594305 million in FY'17) and Profit After Tax of Rs 22241 million (Rs 36437 million inFY'17).
HPCL improved its Gross Refining Margin (GRM) to USD 7.40 per barrel during 2017-18 ascompared to GRM of USD 6.20 per barrel in 2016-17._
Your Company has been ranked number one E&P Company in the world by Platts Top 250Global Energy Company Rankings - 2017 and 11th among global energy majors based on assetsrevenues profits and return on invested capital. The leading international businessjournal Forbes has ranked the Company 3rd largest in India and 246th worldwide based onsales profit assets and market value.
Details of new discoveries and new resources:
During the year 2017-18 your Company made 12 discoveries (5 new prospects and 7 newpools) of which 1 was in NELP acreage while other 11 were in Nomination acreages. Themajor success during the year was an Oil discovery from well WO-24-3 (WO-24-C) which hasindicated potential of about 29.74 MMtoe of In-Place Hydrocarbon Volume in the discoveryarea and the discovery is under further assessment through appraisal exploratory efforts.
Details of these discoveries are as below:
|Sl. No. ||Basin ||Well No. ||PEL/PML/ NELP ||HC Type ||Prospect / Pool |
|1 ||AAFB- Tripura ||Kunjaban-8 ||Kunjaban PML ||Gas ||Pool |
|2 ||AAFB- Cachar ||Bhubandar-6 ||Bhubandar PML ||Gas ||Pool |
|3 ||Cambay Onland ||West Matar-1 ||Matar PML ||Oil ||Prospect |
|4 ||Cambay Onland ||ANOR-1* ||CB-ONN-2005/10 ||Oil ||Prospect |
|5 ||Cauvery Onland ||Mattur West-1 ||L-II PML ||Oil ||Prospect |
|6 ||KG Onland ||Vedireswaram-1 ||Godavari Onland PML ||Gas ||Pool |
|7 ||KG Offshore (SW) ||GS-29-11 ||GS-29 EXT PML ||Oil ||Pool |
|8 ||KG Offshore (SW) ||G-1-15 ||Godavari Onland PML ||Gas ||Pool |
|9 ||KG Offshore (SW) ||GS-71-2 ||GS-15/23 PML ||Oil ||Pool |
|10 ||KG Offshore (DW) ||GD-10-1 ||KG-OS-DW-III PEL ||Gas ||Prospect |
|11 ||KG Offshore (DW) ||GS-29-8 SUB ||GS-29 EXT PML ||Oil ||Pool |
|12 ||Mumbai Offshore (SW) ||SW-WO-24/ WO-24-3 ||Mumbai High-S PML ||Gas ||Prospect |
Hydrocarbon Resource Re-assessment:
During the year your Company was associated with Hydrocarbon Resource Re-assessmentstudies for all 26 sedimentary basins including Deep-waters. The assessment has since beencompleted and the reports were submitted to Director General of Hydrocarbons (DGH) onOctober 31 2017. Results are encouraging and study points toward enhancement ofprognosticated hydrocarbon resources.
National Seismic Program:
Your Company is committed to broaden its exploratory efforts by enhancing the basinalfootprint in India. It is the major stakeholder in National Seismic Program (NSP) with40835 Line Kilometer (LKM) target out of the total target of 48243 LKM. The Company hasmade concerted efforts for fast-track of data acquisition and interpretation. The 2Dseismic data acquisition work has already commenced in 10 sectors i.e. SaurashtraRajasthan Mahanadi Deccan Synclise Bhima Kaladgi Vindhyan and Himalayan Forelandareas in October 2016; Ganga Cuddapah-Krishna Godavari in June 2017; and South RewaDamodar-Chhattisgarh in October 2017. 14621.16 LKM of 2D data was acquired (besidesONGC's routine 2D/ 3D survey) during FY'18. In total the Company has acquired 19655 LKMof data. Processing and interpretation of data is under progress and expected to becompleted by 2019-20.
Details of discoveries in NELP blocks
Your Company as on April 01 2018 had a total of 74 discoveries to its credit out ofwhich 59 discoveries (18 in deep water 21 in shallow water and 20 in onland areas) in 26NELP blocks were made by the Company while remaining 15 discoveries were made by otheroperators in blocks that were later acquired by the Company. Out of the total 74discoveries 12 discoveries made by the Company have been relinquished.
Monetization Status as on April 01 2018:
Your Company has monetized 6 onshore NELP discoveries in four onshore blocks viz.CB-ONN-2001/1(Nadiad-1) CB-ONN-2002/1 (West Patan-3) CB-ONN-2004/1 (Karannagar-1)CB-ONN-2004/2 (Vadatal-1 Vadatal-3 Vadatal-5) in Cambay Basin in the State of Gujarat.
Three Offshore discoveries viz. KG-08 KG-15 KG-17 in NELP block KG-OSN-2001/3(recently acquired by ONGC) in KG Offshore have also been monetized.
Other discoveries are under various stages of exploration / assessment / appraisal /development for monetization.
Reserve accretion and Reserve Replacement Ratio (RRR)
Accretion of In-Place hydrocarbons and Ultimate Reserves by the Company in its operatedareas and in Non-operated (JV Share) during 2017-18 along with position (as on April 012018) of In-Place hydrocarbons and Ultimate reserves established is as below:
In-Place Hydrocarbon Volumes and Ultimate Reserves of Company operated and JV(Domestic) Fields
| ||Accretion During the year 2017-18 ||Position as on 01.04.2018 |
| || ||JV-Domestic || || || || |
|Reserve Type || ||Domestic (Operated) ||(ONGC Share) ||Total ||Domestic (Operated) ||JV-Domestic (ONGC Share) ||Total |
| ||3P ||185.84 ||59.65 ||245.49 ||8840.30 ||1005.03 ||9845.33 |
|In-Place Hydrocarbon || || || || || || || |
|MMt (O+OEG) ||2P ||163.78 ||59.65 ||223.43 ||7659.86 ||925.12 ||8584.98 |
| ||3P ||57.61 ||1.02 ||58.63 ||3094.17 ||107.04 ||3201.21 |
|Ultimate Reserves || || || || || || || |
|MMt (O+OEG) ||2P ||67.83 ||1.02 ||68.85 ||2827.98 ||106.49 ||2934.47 |
Reserve Replacement Ratio (RRR) on 2P basis during the year has been 1.48.
The following table gives the details of Ultimate Reserve Accretion (2P - Proved andProbable) for the last five years in domestic basins as well as from the overseas assets:
| || ||Ultimate Reserves(2P) Accretion (O+OEG) || |
|Year ||Domestic Asset ||ONGC Share in domestic JVs ||Total Domestic (1+2) ||ONGC Videsh Share in Foreign Assets ||Total ONGC Group (3+4) |
| ||(1) ||(2) ||(3) ||(4) ||(5) |
|2013-14 ||56.26 ||4.29 ||60.55 ||213.24 ||273.79 |
|2014-15 ||61.06 ||-1.03 ||60.03 ||20.03 ||80.06 |
|2015-16 ||65.58 ||0.80 ||66.38 ||-7.22 ||59.16 |
|2016-17 ||64.32 ||0.22 ||64.54 ||120.28 ||184.82 |
|2017-18 ||67.83 ||1.02 ||68.85 ||21.56 ||90.41 |
Oil and Gas production
On standalone basis in FY'18 the Company's domestic crude oil production levelregistered at 22.31 MMt against 22.25 MMt in FY'17. Oil production from onshore assetsincreased by 1.7% while offshore registered a decline of 0.3%. Increase in onshore oilproduction was mainly due to various initiatives and early monetization of discoveries inAnkleshwar Cauvery (Madnam) and Rajahmundry (Keshnapalli West) etc. Onshore Crude Oilproduction has registered an increase of 4.1% in last 2 years since 2015-16.
This turnaround in production has been achieved through revival of production from oldand matured fields production from new fields including NELP blocks increase in drillingof development wells execution of more number of work-over & well stimulation jobsand induction of new technologies.
Natural gas production (from domestic operated fields) during FY'18 has been 6.3%higher than the previous year (23.48 BCM against 22.09 BCM during FY'17). The Company'sonshore gas production increased by healthy 8.3% whereas offshore production increased by5.7%. Onshore gas production increased with all assets recording incremental gasproduction; substantial gains were in Ankaleshwar Assam Rajahmundry and Karaikal.
Incremental gas production in offshore during 2017-18 was from Daman/C-26 Vasishta& S1 Development. Your Company's share in oil and gas production from PSC JVs were3.13 MMT and 1.13 BCM respectively.
|Direct ||Unit ||Production Qty ||Sales Qty ||Value (Rs in million) |
| || ||FY'18 ||FY'17 ||FY'18 ||FY'17 ||FY'18 ||FY'17 |
|Crude Oil ||(MMT) ||25.43 ||25.53 ||23.67 ||23.86 ||603899 ||548036 |
|Natural Gas ||(BCM) ||24.61 ||23.27 ||19.49 ||17.94 ||137372 ||139398 |
|Liquified Petroleum ||000 MT ||1187 ||1355 ||1186 ||1352 ||40352 ||37276 |
|Gas || || || || || || || |
|Naphtha ||000 MT ||1176 ||1101 ||1180 ||1087 ||38084 ||30455 |
|Ethane-Propane ||000 MT ||356 ||421 ||356 ||420 ||7502 ||8557 |
|Ethane ||000 MT ||264 ||137 ||264 ||135 ||7050 ||5354 |
|Propane ||000 MT ||194 ||91 ||191 ||87 ||6250 ||2223 |
|Butane ||000 MT ||103 ||31 ||103 ||30 ||3423 ||1131 |
|Superior Kerosene Oil ||000 MT ||46 ||36 ||34 ||43 ||1178 ||1321 |
|Others || || || || || ||692 ||1112 |
|Sub Total || || || || || ||845802 ||774863 |
|Trading || || || || || || || |
|HSD ||000 KL || || ||- ||0.43 ||- ||20 |
|Motor Spirit ||000 KL || || ||- ||0.21 ||- ||11 |
|Sub Total || || || || || ||- ||31 |
|Total || || || || || ||845802 ||774894 |
Production from Overseas Assets by OVL:
During the year total Oil and Gas production from overseas assets was 14.16 MMtoe ofO+OEG (oil: 9.35 MMT; Gas 4.81 BCM) in comparision to 12.80 MMtoe during FY'17 an increaseof 10.6% which was mainly due to incremental production from Vankorneft and Sakhalin-1projects Russia; BC-10 project Brazil; additional production from acquisition of 4%stake in the Lower Zakum Concession project in UAE and from exploratory success in BlockCPO-5 Colombia. Oil and Gas production of ONGC Group including PSC-JVs and from overseasassets for FY'18 was 64.21 MMtoe (against 61.62 MMtoe during FY'17) an increase of 4.2%.
Your Company gives utmost importance for induction up-gradation and application oftechnology in various areas of its operations to remain competitive. During the year thefollowing technology were applied/ upgraded/ inducted:
Gas Chromatograph and Resistivity meter with the upgraded version have been installedat KDMIPE Dehradun. Gas chromatograph will facilitate in exploration by carrying outstudies pertaining to metabolites of microbial origin whereas Resistivity Meter will behelpful in determining the realistic formation evaluation of the reservoir.
Switching over to Techlog Petrophysical Analysis Tools.
Hardware Virtualization Technology has been inducted using Red Hat EnterpriseLinux as well as VMware systems.
Lustre File System Technology has been adopted in the Seismic Processing domainfor the first time.
Infiniband based Networking Technology has been inducted on the recentlyinstalled HPCC in the Seismic Processing domain for the first time.
Production enhancement through stimulation of tight carbonate reservoirs inwells of western offshore field (implemented by IOGPT) in total 14 wells.
Innovative techniques for Gas Production enhancement in low gas production wellsof Assam/ Tripura/ Mehsana (implemented by IOGPT) in one well of Tripura (RO#8).
Development of chemical formulation for water shut off in gas wells of ONGCfields and its field execution (executed by IRS Ahmedabad) in 3 wells during 2017-18.
Exploration in different plays (a) Basement Exploration:
Concerted efforts for Basement Exploration a frontier exploration play have beentaken up by the Company as a major initiative. During the year your Company was pursuingBasement exploration across most of the operational areas as a frontier exploration playand drilled 24 wells including 11 wells with primary objective as Basement. Encouragingresults have been obtained in wells GK-28-11 N-24-4 N-24-5 HY-11X in Western Offshorewells Padra-114 116 117 119 120 in Cambay basin Khoraghat-42 and BJAB in A&AAbasin. Wells BH-76 and SMH-1 drilled in Western Offshore Basin flowed oil from Basement.Cauvery basin is coming up as an important area for Basement Play with encouraging resultsin Mattur West-I and Pundi-8. For the development of discoveries in Basement play FieldDevelopment Plan (FDP) of Pandanallur field has been approved and FDP implementation willbegin in FY'19.
(b) Exploration in HP-HT and Tight Reservoir:
The Company has prioritized HP-HT/ Tight/ Deeper plays in KG Cauvery Western OffshoreBasin and Assam and Arakan Fold belt. These plays are deep difficult to drill test andproduce from. During the year 2017-18 onland well PD-3 in Periyakudi field Cauvery Basinbecame the first HP-HT well to be put on production. Another well BTS-3 in KG onland Basinhas been successfully drilled and tested for gas in commercial quantities. The developmentdrilling will be taken up in 2018-19. In addition the Company after acquiring theoperatorship of NELP block KG-ONN-2003/1 has submitted the FDP of two discoveries made inthe block. Further the Company acquired 80% stake and operatorship from Gujarat StatePetroleum Corporation Limited (GSPCL) in the block KG-OSN-2001/3. The field is already onproduction and FDP is under preparation for six more monetized discoveries in the Block.
Unconventional and Alternate sources of energy
Your Company is well focused on exploration and development of unconventional like -Shale (CBM) High Pressure/ High Temperature (HP/HT) Fractured
Basement plays etc. and alternate sources of energy. Structured actions have beeninitiated to increase the share of unconventional/ alternate energy in the productionportfolio.
(a) Shale Gas/ Oil Exploration:
The Company has firmed up a programme to explore for shale gas/ oil in 50 Nominated MLblocks (28 in Cambay 10 in KG 9 in Cauvery and 3 in A&AA basins). 23 Assessmentwells have been drilled so far and prospects have been established in Cambay and KG basin.Drilling of more wells (both exclusive and dual objective) are planned in North Cambay andKG Basins in future for better understanding and assessment. The areas planned to becovered include Nawagam Kalol Linch in north Cambay Basin; Mandapeta and Mahadevapatnametc. in Krishna Godavari Basin.
(b) Coal Bed Methane (CBM):
Your Company is operating in four CBM Blocks i.e. Jharia Bokaro and North Karanpura inJharkhand and Raniganj in West Bengal. FDP for Bokaro and North Karanpura Blocks have beenapproved. Details regarding various activities undertaken in these blocks are as under:
1. Bokaro Block: Drilling of 141 development wells has been considered inthe FDP of Bokaro Block. Five wells have been drilled successfully and drilling of sixthwell is in progress. 10 more well sites are earmarked and total 30 wells are planned to bedrilled during 2018-19.
2. North Karanpura Block: Total 68 development wells have been considered inthe FDP of North Karanpura Block. 30 wells are planned to be drilled during 2018-19.
3. Jharia Block: After receiving permission from DGMS operations have beenresumed Since March'18 by hydro-fracturing and testing of already drilled well JH#14.Around 10000 - 15000 SCMD of incidental Gas is being sold and the sales is planned to beramped up with production in this Block. Revised Feasibility Report has been preparedafter discounting 12 wells in line with co-development plan which is under vetting byindependent Financial Institution and consent of JV partner Coal India Limited is beingobtained on the Feasibility report. Agreement has been entered into with gas off-taker ata price of 6.12 USD/MMBTU on GCV basis for 10000 SCMD.
4. Raniganj Block: Techno-economic analysis for monetization of the blockhas been carried out and efforts are underway for economizing production cost.
(c) Gas Hydrates
Your Company has been an active participant in gas hydrates exploratory research in thecountry under National Gas Hydrate Program (NGHP) of the Government of India (GoI) since1997. The results of NGHP-02 are very encouraging and two gas hydrate reservoirs have beendiscovered in KG deep offshore. For a deep focus your Company has established a GasHydrate Research & Technology Centre (GHRTC) at Panvel Maharashtra for production andexploitation of gas hydrates. Further the Company is looking forward to NGHPExpedition-03 to test the technology and assess the production technology for Gas Hydratesexploitation in Indian offshore.
(d) Alternate Sources of Energy
Hazira Plant has installed 10 MWp Solar Power Plant in line with its commitment towardsgeneration of Renewable Energy and is in operation. Dahej Plant has also taken initiativesfor implementing 500 KW roof top solar power project.
Earlier as a step towards green energy by harnessing natural resources with latesttechnologies Hazira Plant has commissioned a 40 KWp Solar Power Plant in KendriyaVidyalaya in ONGC township and Uran Plant had installed a 125 KWp Solar Power Plant atroof top of reservoir.
Oil & Gas Projects
(a) Project Competed during FY'18
During the year 2017-18 following 04 major projects (2 development and 2Infrastructure) have been completed:
|Sl. No ||Project Name ||Completion date ||Approved cost (Rs in million) ||Envisaged Oil Gain (MMT) ||Envisaged Gas Gain (BCM) |
|1 ||Construction of 3 ETP at Rajahmundry ||28.06.2017 ||1480.00 ||- ||- |
|2 ||Sonamura GGS and Pipeline Project Tripura ||31.01.2018 ||2153.80 ||- ||- |
|3 ||Development of Western Periphery of MHS ||23.02.2018 ||7409.90 ||0.933 ||0.149 |
|4 ||Integrated Development of Vasistha & S-1 Fields ||31.03.2018 ||57255.00 ||- ||14.611 |
| ||Total || ||68298.70 ||0.933 ||14.76 |
(b) Fast track monetization of Marginal Fields
Your Company is developing new and marginal fields on fast track to augment the oil andgas production. It is pertinent to mention that many marginal fields in western offshorewhich were not techno-economically viable for exploitation earlier on standalone basis arenow being developed with cluster concept. Some of the marginal fields were put onproduction in the last few years include NBP (D-1) with its additional development VasaiWest Vasai East with its additional development North Tapti BHE SB-14 WO-16Cluster-7 fields B-46 Cluster fields C-24 & C-26 Cluster fields B-22 Cluster fieldsand B-193 Cluster fields etc. Production from Integrated Development of Mukta Bassein andPanna Formations in Bassein field and Daman Development projects has commenced and wouldcontribute further with drilling of more wells under these projects. Also production hascommenced from B127 cluster from May 2018.
Further development of NW B-173A field 4th Phase Development of NBP fieldDevelopment of R-Series fields including revival of R-12 (Ratna) Development of B-147field & Development of BSE-11 Block are under various stages of implementation.
(c) Development of fields in Eastern Offshore
Major thrust is being given to develop discoveries made in the Krishna Godavari basinwhich is a promising basin with various discoveries like G1/GS-15 Vasishtha S1 GS-29and KG-DWN-98/2 etc.
Your Company has been vigorously pursuing to develop these fields as early as possible.The production from shallow water field GS-15 and deep water field G-1 has alreadycommenced. Project "Integrated Development of Vasistha & S-1 Fields" hasbeen completed in March 2018 and is aimed to contribute 14.61 BCM of gas by year 2026-27.Further to boost up oil and gas production from Eastern Offshore one mega project fordevelopment of cluster 2 fields of NELP Block KG-DWN-98/2" is under implementationand envisages production of 25.87 MMT of oil and 45.49 BCM of gas by 2034-35.
Development of other discoveries in KG offshore such as KG-DWN-98/2 (Cluster-I and IIIfields) GS-49 and GS-29 G-4-6 fields shallow water NELP block KG-OSN-2004/1 etc. areunder various stages of appraisal/ approval for development.
1. Financial Highlights:
Your Company has earned Profit After Tax (PAT) of Rs 199453 million up by 11.4% overFY'17 (Rs 179000 million) and registered Revenue from Operations of Rs 850041 millionup by 9.10% over FY'17 (Rs 779078 million).
Highlights Standalone Financial Statements
|Revenue from Operations ||: Rs 850041 million |
|Profit After Tax (PAT) ||: Rs 199453 million |
|Contribution to Exchequer ||: Rs 376088 million |
|Return on Capital Employed ||: 27.04% |
|Debt-Equity Ratio ||: 0.13:1 |
|Earnings/ Share ||: Rs 15.54 |
|Book Value/ Share ||: Rs 151 |
| ||Rs in million || |
|Particulars ||2017-18 ||2016-17 |
|Revenue from operations ||850041 ||779078 |
|Other Income ||78836 ||76763 |
|Total Revenue ||928877 ||855841 |
|Profit Before Interest || || |
| ||448712 ||386267 |
|Depreciation & Tax (PBIDT) || || |
|Profit Before Tax (PBT) ||288925 ||252155 |
|Profit After Tax (PAT) ||199453 ||179000 |
|Transfer to General Reserves ||110290 ||64466 |
Your Company has paid interim dividend of Rs 5.25 per share of Rs 5 each (105%) in twotimes (Rs 3.00 and Rs 2.25).
The Board of Directors has recommended a final dividend of Rs 1.35 per share (27%)making the aggregate dividend at Rs 6.60 per share (132%) for FY'18. The total dividendfor the year aggregates to Rs 84699 million besides Rs 17277 million applicableDividend Distribution Tax (DDT) which is 51.13 % of PAT (inclusive of DDT). The DividendDistribution policy as formulated by the Company may be accessed at the web link https://www.ongcindia.com/wps/wcm/connect/en/investors/policies
3. Management Discussion and Analysis Report
As per the terms of regulations 34(2)(e) of the SEBI Listing Regulations theManagement Discussion and Analysis Report (MDAR) as appended forms part of this AnnualReport.
4. Financial Accounting
The Financial Statements have been prepared in compliance with Indian AccountingStandards (Ind-AS) issued by the Institute of Chartered Accountants of India (ICAI)effective from April 01 2016 and applicable provisions of the Companies Act 2013.
5. Loans Guarantees or Investments
Your Company is engaged in Exploration & Production (E&P) business which iscovered under the exemption provided under Section 186(11) of the Companies Act 2013.Accordingly the details of loans given investment made or guarantee or security given bythe Company to subsidiaries and associates is not reported.
6. Detail relating to deposits covered under Chapter V of the Act:
|Particulars ||Amount (in Rs ) |
|Deposits accepted during the years ||Nil |
|Deposits remaining unpaid or unclaimed as at the end of the year ||Nil |
|Default in repayment of deposit or payment of interest thereon during the year ||Nil |
7. Related Party Transaction
Particulars of contracts or arrangements with related parties as referred to in Section188(1) of the Companies Act 2013 is provided in specified Form AOC-2 and placed at Annexure-A.
Your Company has acquired 51.11% shares held by the President of India (778845375equity shares of face value
Rs 10 each) in Hindustan Petroleum Corporation Limited (HPCL) on January 31 2018 fora total cash consideration of Rs 369150 million. Upon the acquisition HPCL has become asubsidiary of your Company. Upon the acquisition of HPCL Petronet MHB Limited has beenreclassified from joint venture company to a subsidiary company as total shareholding ofyour Company increased to 65.44% i.e. 32.72% shares each by the Company and HPCL.
Further the subsidiaries of HPCL viz. Prize Petroleum Company Limited HPCL Bio FuelLimited HPCL Rajasthan Refinery Limited and HPCL Middle East FZCO have become indirectsubsidiaries of your Company.
The details of Subsidiaries are as under:
(I) ONGC Videsh Limited (OVL)
OVL the wholly-owned subsidiary of your Company for E&P activities outside Indiahas participation in 41 oil and gas projects in 20 Countries viz. Azerbaijan (2projects) Bangladesh (2 Projects) Brazil (2 projects) Colombia (7 projects) Iran (1project) Iraq (1 project) Israel (1 project) Kazakhstan (1 project) Libya (1 project)Mozambique (1 Project) Myanmar (6 projects) Namibia (1 project) New Zealand (1Project) Russia (3 projects) South Sudan (2 projects) Sudan (2 projects) Syria (2projects) UAE (1 project) Venezuela (2 projects) and Vietnam (2 projects). Out of 41projects OVL is Operator in 14 projects; Joint Operator in 7 projects and remaining 20are non-operated projects. During the year OVL set its foot-prints in Israel Namibia andUAE. OVL adopts a balanced portfolio approach and has a combination of 15 producing 4discovered/ under development 18 exploration projects and 4 pipeline projects.
During FY'18 OVL has made the consolidated Profit After Tax of Rs 9815 millionattributable to owners as compared to the consolidated Profit After Tax of Rs 7573million attributable to owners during FY'17. Increase in profit is mainly on account ofhigher production higher crude oil prices and lower impairment provisions. a.Significant Acquisitions and Alliances of OVL during FY'18:
ONGC Videsh Vankorneft Pte. Ltd (OVVL) a wholly-owned indirect subsidiary of OVL hascompleted acquisition of 30% Participating Interest (PI) in Namibia Petroleum ExplorationLicense 0037 for Blocks 2112A 2012B and 2113B on October 3 2017 from Tullow NamibiaLimited (Tullow) a wholly owned subsidiary of Tullow Oil plc. Tullow with its remaining35% PI shall continue to be the operator of the License.
OVL led Indian Consortium including Indian Oil Corporation Limited (IOCL) and BharatPetro Resources Limited (BPRL) acquired 10% PI in Lower Zakum Concession Offshore AbuDhabi. The production from the field was around 419000 bopd and the share of productionto Indian Consortium was around 42000 bopd and OVL share was around 16800 bopd.
An Exploration Block with License 412/"32" in Israel has been awarded byPetroleum Commissioner to Indian Consortium on March 27 2018 with exploration duration of3 years. OVL is the operator and each Partner of the Indian Consortium i.e. OVL BPRLIOCL and OIL hold 25% Participating Interest (PI) each in the License.
b. During FY'18 OVL has signed the following Memorandum of Understanding (MoUs):
i. MoU with TPAO Turkey:
OVL has signed an MoU with TPAO on July 12 2017 to evaluate Oil and Gas opportunitiesin upstream as well as any other mutually identified and agreed area.
ii. MOU with PEMEX Mexico: Earlier a MoU was signed between PEMEX Exploration andProduction and OVL on September 25 2014. Term of this MoU has been extended tillSeptember 24 2019 by an amendment to the original MoU. The MoU aims at cooperation inthe upstream sector in Mexico India and third countries and Cooperation in fields oftechnology human resource research and development.
iii. MoU with GeoPark Latin America:
OVL_and_GeoPark Ltd. a Latin America focused E&P Company entered into an MoU on16th February 2018 for Cooperation in upstream sector in Latin America. The MoU envisagesa long term strategic partnership between the companies to jointly acquire invest in andcreate value from upstream oil and gas projects with the objective of building alarge-scale economically-profitable and risk-balanced portfolio of assets and operationsacross Latin America.
c. During FY'18 the following significant events occurred in the area of Exploration& Operations:
i. CPO-5 Colombia: -
The well Mariposa-1 was drilled to a total depth of 11556 feet (MD) and log analysisindicated the presence of approximately 121 feet of oil saturated net pay in the LowerSands Unit. The well is currently under testing and activated on self. The discovery hasopened up new play in CPO-5 block and more wells are likely to be drilled for the play.
ii. Sakhalin-1 Russia: - 30 years extension to the Production Sharing Agreement(PSA) of Sakhalin-1 block has been granted from 2021 to 2051. Sakhalin-1 completed World'sLongest Extended Reach Drilling (ERD) well #O5RD with measured depth of 15000 metre onJune 30 2017.
iii. ACG Azerbaijan: - Consortium partners of the giant ACG Fields in Azerbaijanhave entered into an agreement with Azerbaijan Government and State Oil Company of theAzerbaijan Republic (SOCAR) for extension of the Production Sharing Agreement (PSA)extension for Azeri-Chirag-Deep water portion of Guneshli (ACG) oil fields until December31 2049.
iv. Rovuma Area-1 Project Mozambique: -
Government of Mozambique has accorded approval for the Development Plan forGolfinho-Atum natural gas field in the Area 1 block located in the Rovuma Offshore Basinof Mozambique. The plan outlines the integrated development of the Golfinho-Atum fieldthrough an initial two-train onshore liquefaction plant with a total processing capacityof 12.88 MMTPA.
Direct Subsidiaries and Joint Ventures of OVL:
1. ONGC Nile Ganga B.V. (ONGBV): ONGBV is engaged in E&P activitiesdirectly or through its subsidiaries/ JVs in Sudan South Sudan Syria Venezuela Braziland Myanmar. ONGBV holds 25% PI in Greater Nile Oil Project (GNOP) Sudan with its shareof oil production of about 0.282 MMT during FY'18. ONGBV also holds 25% PI in GreaterPioneer Operating Company (GPOC) South
Sudan. Due to adverse geo-political conditions ONGC Videsh could not produce in GPOCSouth Sudan during FY'18. ONGBV holds 16.66% to 18.75% PI in four Production SharingContracts in Al Furat Project (AFPC) Syria. Due to force majeure conditions in Syriathere was no production in AFPC project during FY'18. ONGBV holds 40% PI in San CristobalProject in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal)BV with its share of O+OEG production of about 0.389 MMtoe during FY'18. ONGBV holds 27%PI in BC-10 Project in Brazil through its wholly owned subsidiary ONGC Campos Ltd. withits share of oil and oil equivalent gas production of about 0.704 MMtoe during FY'18. _ Italso holds 25% PI in Block BM-SEAL-4 located in deep-water offshore Brazil through itswholly owned subsidiary ONGC Campos Ltda. ONGBV also holds 8.347% PI in South East AsiaGas Pipeline Co. Ltd. (SEAGP) for onshore Pipeline project Myanmar through its whollyowned subsidiary ONGC Caspian E&P B.V.
San Cristobal Project: Consequent to the signing of Agreements on Pending Paymentsand Financing of San Cristobal project for remediation plan between PdVSA and ONGC NileGanga (San Cristobal) BV on November 04 2016 PdVSA has paid USD 88.42 million till March2018 to liquidate partly the outstanding dividend due from the JV Petrolera IndoVenezolanaS.A.(PIVSA).
2. ONGC Narmada Limited (ONL): ONL has been retained for acquisition offuture E&P projects in Nigeria.
3. ONGC Amazon Alaknanda Limited (OAAL):
OAAL a wholly-owned subsidiary of OVL holds stake in E&P projects in Colombiathrough Mansarovar Energy Colombia Limited (MECL) a 50:50 joint venture company withSinopec of China. During FY' 18 ONGC Videsh's share of oil and oil equivalent gasproduction in MECL was about 0.487 MMtoe.
4. Imperial Energy Limited (IEL): IEL a wholly-owned subsidiary of OVLincorporated in Cyprus has its main activities in the Tomsk region of Western SiberiaRussia. _ During FY'18 Imperial Energy's oil and oil equivalent gas production was about0.294 MMtoe.
5. Carabobo One AB: Carabobo One AB is incorporated in Sweden indirectlyholds 11% PI in Carabobo-1 Project Venezuela. During FY'18 ONGC Videsh's share of oiland oil equivalent gas production was about 0.169 MMtoe.
6. ONGC BTC Limited: ONGC BTC Limited holds 2.36% interest in theBaku-TbilisiCeyhan Pipeline ("BTC") which owns and operates 1768 km oilpipeline running through Azerbaijan Georgia and Turkey. The pipeline mainly carry crudefrom the ACG fields from Azerbaijan to the Mediterranean Sea.
7. Beas Rovuma Energy Mozambique Limited (BREML): BREML was incorporated inBritish Virgin Islands (BVI) and has been migrated by continuation to Mauritius w.e.f.January 23 2018. OVL holds 60% shares in BREML and the balance 40% are held by OIL BREMLholds 10% PI in Rovuma Area 1 Mozambique.
8. ONGC Videsh Atlantic Inc. (OVAI): OVL has setup a Geological andGeophysical (G&G) Centre at Houston USA through its wholly owned subsidiary OVAI. TheCentre caters to requirement of G&G studies for potential new acquisitions of ONGCVidesh including G&G studies of its existing portfolio of projects.
9. ONGC Videsh Rovuma Limited (OVRL): OVRL a wholly owned subsidiary of OVLwas incorporated in Mauritius for re-structuring of 10% PI in Rovuma Area 1 Mozambique.
10. ONGC Videsh Singapore Pte. Ltd. (OVSL): OVSL was incorporated in Singapore foracquisition of shares in Vankorneft Russia through its subsidiary ONGC Videsh VankorneftPte. Limited (OVVL). OVVL holds 26% shares in Vankorneft Russia and its share ofproduction during FY'18 was 6.191 MMtoe.
11. Indus East Mediterranean Exploration Ltd. (IEMEL): IEMEL a wholly ownedsubsidiary of OVL was incorporated in Israel on February 27 2018 and engaged in E&Pactivities related to Block-32 Offshore Israel.
12. ONGC Mittal Energy Limited (OMEL): OVL along with Mittal Investments Sarl (MIS)promoted OMEL a joint venture company incorporated in Cyprus. OVL and MIS together hold98% equity shares of OMEL in the ratio of 49.98:48.02 remaining 2% shares are held by SBICapital Markets Ltd.
13. SUDD Petroleum Operating Company (SPOC): SPOC a Joint Operating Companyincorporated in South Sudan to operate in Block 5A South Sudan in which OVL Petronas& Nilepet of South Sudan holds 24.125% 67.875% & 8% PI respectively. Block 5A islocated in the prolific Muglad basin and spread over an area of about 20917 Square Km.
14. Mozambique LNG1 Company Pte. Ltd.:
Mozambique LNG1 Company Pte. Ltd. has been incorporated at Singapore by Rovuma Area-1Mozambique consortium to oversee marketing and shipping activities of LNG from first 2trains of Golfinho-Atum field. OVL holds 16% interest in the Company which is inproportion to its interest in Rovuma Area-1 Project Mozambique.
15. Falcon Oil & Gas B.V. (FOGBV): FOGBV was incorporated in Netherlands onFebruary 06 2018. OVL's wholly owned subsidiary ONGBV holds 40% shares in FOGBV and IOCand BPRL holds 30% shares each though their respective subsidiaries. The transactiondocuments were executed with ADNOC Supreme Petroleum Council (SPC) and the OperatingCompany (OPCO) on February 10 2018 at Abu Dhabi for acquiring 10% PI in Lower ZakumConcession for a period of 40 years with effect from March 09 2018.
(II) M angalore Refinery and Petrochemicals
MRPL was incorporated on March 07 1988. Your Company continues to hold 71.63 % equitystake in MRPL a Schedule A' Mini Ratna and listed entity which is a singlelocation 15 MMTPA Refinery on the West coast. Further HPCL another subsidiary of yourCompany also continues to hold 16.96% in MRPL.
Performance Highlights FY' 18
MRPL achieved the highest-ever thru'put of 16.31 MMT in FY'18 against 16.27 MMT inFY'17 and recorded the Revenue from Operations of Rs 630836 million and Profit After Taxof Rs 22241 million. The Board of MRPL has recommended a dividend of Rs 3/- per share(30% of the paid up capital) for the approval of shareholders in the general meeting.
Marketing & Retail Operations
MRPL continues to maintain major share of the direct sales segment of petroleumproducts market in Karnataka and adjoining states and maintained leadership position inthe marketing zone for direct sales of products such as Bitumen Fuel Oil DieselSulphur Petcoke Xylol (Xylenes) etc. MRPL has commenced diesel supplies directly to newRailway Consumer Depots during the period and has also expanded its retail network. Thetotal domestic sales volume of all products during the FY'18 has been 1786 TMT. MRPLcontinues to enhance its market share for Polypropylene with introduction of new and nichegrades and also has made inroads in new geographical areas.
MRPL has taken up the enhancement of the Refinery capacity to 18/25 MMTPA with low costrevamping. The Government of Karnataka has allotted 1050 acres of land for this purpose.Necessary steps are being taken to ensure compliance with BS- VI fuel quality standards bythe year 2020.
ONGC Mangalore Petrochemicals Limited (OMPL)
OMPL has been promoted by the Company for setting up Aromatic Complex with an annualcapacity 914 KTPA of Para-xylene and 283 KTPA of Benzene in Mangalore Special EconomicZone as value chain integration project. The project established at the total outlay ofRs 69110 million commenced commercial operations on October 01 2014. OMPL isconsistently increasing its capacity utilization with average capacity utilization ofaround 88% in FY'18.
OMPL is a subsidiary of your Company as it holds 48.998% shares directly and remaining51.002% shares are held by MRPL.
(III) Hindustan Petroleum Corporation Limited (HPCL)
Your Company acquired 51.11% equity shares of HPCL from GoI on January 31 2018 andthereby HPCL became a subsidiary.
HPCL owns and operates 2 major refineries producing a wide variety of petroleum fuelsand specialties one in_ Mumbai_ (West Coast) of_ 7.5_ Million Metric Tonnes Per Annum(MMTPA) capacity and the other in_ Visakhapatnam (East Coast) with a capacityof_8.3_MMTPA. HPCL also owns and operates the largest Lube Refinery in the countryproducing Lube Base Oils of international standards with a capacity of 428 TMT.
This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production.HPCL in collaboration with Mittal Energy Investments Pte. Ltd. is operating a 9 MMTPAcapacity Refinery at Bathinda with 49% equity and also holds an equity of 16.96% in theMRPL having refining capacity of 15 MMTPA.
HPCL has the second largest share of product pipelines in India with a pipeline networkof more than 3370 kms for transportation of petroleum products and a vast marketingnetwork consisting of 21 Zonal offices in major cities and 128 Regional Officesfacilitated by a Supply and Distribution infrastructure comprising Terminals Pipelinenetworks Aviation Service Stations LPG Bottling Plants Inland Relay Depots & RetailOutlets Lube and LPG Distributorships.
HPCL has recorded Sales Revenue of Rs 2432267 million and the Profit After Tax is Rs63571 million for the year 2017-18.
Subsidiaries of HPCL i) Prize Petroleum Company Limited (PPCL)
PPCL is a wholly owned subsidiary of HPCL. PPCL is the upstream arm of HPCL and is inthe business of Exploration and Production (E&P) of Hydrocarbons as well as providingservices for management of E&P blocks. During 2017-18 PPCL achieved total productionof 33752 barrels of crude oil from domestic oil field at Hirapur (Gujarat). PPCL has awholly owned subsidiary namely Prize Petroleum International Pte Ltd. (PPIPL)incorporated in Singapore. PPIPL holds 11.25% PI and 9.75% PI in two E&P blocks - T/L1and T/18P respectively in Australia. PPIPL has achieved its share of production of 459269BOE (Barrels of Oil Equivalent) from Yolla producing field (T/L1). During 2017-18 PPCLhas achieved total revenue of Rs 1063 million on consolidated basis as compared to Rs 865million achieved during previous year.
ii) HPCL Bio Fuel Limited
HPCL Biofuels Ltd (HBL) is a wholly owned subsidiary of HPCL as a backward integrationinitiative to foray into manufacturing of ethanol for blending in petrol. HBL presentlyhas two integrated Sugar-Ethanol-Cogeneration plants at Sugauli and Lauriya in the stateof Bihar. During 2017-18 HBL has recorded total revenue of Rs 1365 million and canecrushing of 699 TMT with average sugar recovery of 9.04%. HBL also achieved sugarproduction of 63870 MT Ethanol production of 7025 KL and power production of 79085 MWhduring 2017-18.
iii) HPCL Rajasthan Refinery Limited (HRRL)
HRRL is a joint venture of the HPCL and the Government of Rajasthan with equityparticipation of 74% and 26% respectively. HRRL is setting up a 9 MMTPA capacityGreenfield refinery cum petrochemical complex in the state of Rajasthan. HPCL and theGovernment of Rajasthan entered into a revised Memorandum of Understanding on April 182017 for the construction of the said Refinery with revised parameters. The revised JointVenture Agreement was signed on August 17 2017. The work commencement ceremony of the 9MMTPA Rajasthan Refinery was carried out by the Honourable Prime Minister of India onJanuary 16 2018. The pre-project activities for the project are in advanced stage. Thecost of project is estimated to be Rs 431290 million.
(iv) HPCL Middle East FZCO
HPCL Middle East FZCO a 100% Subsidiary of HPCL was incorporated on February 11 2018as a free zone company under Dubai Airport Free Zone and Establishment Card was issued onMarch 22 2018 for the company. HPCL Middle East FZCO was established for trading oflubricants and greases petrochemicals and refined petroleum products. The subsidiary willserve the select markets of Middle East and Africa.
(IV) Petronet MHB Limited (PMHBL)
Upon acquisition of controlling interest in the capital of HPCL on January 31 2018PMHBL has become a subsidiary of your Company. Both the Company and HPCL hold 65.44% (each32.72%) in the capital of PMHBL. Balance 34.56 % of equity being held by banks/ FinancialInstitutions.
PMHBL owns and operates a multiproduct pipeline to transport MRPL's products tothe hinterland of Karnataka. In FY'18 PMHBL pipeline has achieved a throughput of 3.5 MMTagainst total throughput of 3.43 MMT last year and declaring a maiden interim dividend of9% in 2017-18. PMHBL has recorded total Revenue of Rs 1711 million as compared to Rs1702 million in the previous year. Further the Profit After Tax of PMHBL was Rs 835million in financial year 2017-18 as compared to Rs 810 million in the previous financialyear.
9. Annual Report of Subsidiaries and Consolidated Financial Statement
The Consolidated Financial Statements for the year ended 31st March 2018 of yourCompany has been prepared in accordance with Section 134 of the Companies Act 2013 IndAS 103 "Business Combinations" as per Pooling of Interest Method Ind AS 110"Consolidated Financial Statements" and Ind AS 28 "Investments inAssociates and Joint Ventures". The audited Consolidated Financial Statements for theyear ended 31st March 2018 form part of this Annual Report.
Full Annual Reports of subsidiaries of your Company will be made available to anyshareholder upon request which is also available on Company's website. Further AnnualReports of OVL MRPL HPCL and PMHBL are also available on websites www.ongcvidesh.com;www.mrpl.co.in; www.hindustanpetroleum.com and www.petronetmhbl.com respectively.
10. Associates including Joint Ventures a) Pawan Hans Limited (PHL)
PHL an Associates of the Company (49%) was formed with the Government. of India (51%)acting through Ministry of Civil Aviation inter alia for catering to the logisticrequirements of oil fields located at remote/ far-flung areas. PHL is a Mini Ratna - ICategory PSU and having 43 helicopters including medi- chopper.
The Government of India is taking action for identifying a strategic acquirer for itsentire holding and hence your Company has also decided to exit PHL along with theGovernment.
b) Petronet LNG Limited (PLL)
PLL a JV of the Company was incorporated on April 02 1998 with 12.5% equity holdingalong with identical stakes held by other Oil PSU co-promoters viz. IOCL GAIL and BPCLis a listed Company. PLL one of the fastest growing world-class companies in the Indianenergy sector has set up the country's first LNG receiving and regasification terminal atDahej Gujarat and another terminal at Kochi Kerala. While the Dahej terminal has anominal capacity of 15 MMTPA the Kochi terminal has a capacity of 5 MMTPA.
Revenue from Operations of PLL during FY'18 was Rs 305986 million and Profit After Taxwas Rs 20778 million.
c) Dahej SEZ Limited (DSL)
DSL a 50:50 JV of the Company along with Gujarat Industrial Development Corporation wasformed for establishing a multi-product SEZ at Dahej. Your Company has set up C2-C3Extraction Plant as a value-chain integration project which serve as feeder unit to ONGCPetro- additions Limited.
Revenue from Operations of DSL during FY'18 was Rs 541 million Profit After Tax was Rs369 million.
d) ONGC Tripura Power Company Limited (OTPC)
OTPC was incorporated on September 27 2004 as a joint venture of your Company (50%)along with the Government. of Tripura (0.5%) and IL&FS Energy Development Co. Ltd.(IEDCL - an IL&FS subsidiary) (26%); the balance 23.5% has been tied up with IndiaInfrastructure Fund II acting through IDFC alternatives Limited. OTPC has set up a726.6 MW gas based Combined Cycle Power Plant at Palatana Tripura at a project cost of Rs40470 million. The basic objective of the project is to monetize idle gas assets of theCompany in landlocked Tripura State and to boost exploratory efforts in the region.
Power evacuation for both the units is done through 663 KM long 400 KV double circuittransmission network by North-East Transmission Company Limited (NETC) a joint venture ofPower Grid Corporation OTPC and Governments of the North-Eastern states.
OTPC's both power units of 363.3 MW each are fully operational in two phases.
Revenue from Operations of OTPC during FY'18 was Rs 12516 million and Profit After Taxwas Rs 1251 million.
e) Mangalore SEZ Limited (MSEZL)
MSEZ a Special Economic Zone promoted by the Company with an equity stake of 26% alongwith KIADB (23%) IL&FS (50%) OMPL (0.96%) and KCCI (0.04%). MSEZ was set up as zonefor development of necessary infrastructure to facilitate and locate industrialestablishment including OMPL. MSEZ is operational since April 01 2015. With investmentsexceeding USD 2 billion and exports of over USD 400 million worth of goods from its unitsMSEZ has emerged as one of the most vibrant operational multi-product SEZs in India.
f) ONGC Petro additions Limited (OPaL)
OPaL a JV formed by the Company (26%) along with GAIL (8.85%) and with a nominalinvestment by GSPC was incorporated on November 15 2006. The balance equity is to be tiedup with Strategic Partners/ FIs or allotted through IPO. Presently the equity gap isbridged through quasi equity instruments Compulsorily Convertible Debentures andShort Term Loan. OPaL is a mega petrochemical project established in Dahej SEZ forutilizing in-house production of C2-C3 and Naphtha from the nearby unit of the Company.The project cost of OPaL at completion was Rs 308260 million. OPaL has started itsproduction in 2016-17 and has been ramping up its production in phases. OPaL hasestablished itself in domestic/ export market with sale of prime grade products.
g) ONGC TERI Biotech Limited (OTBL)
OTBL a JV formed by the Company (49.98%) along with The Energy Research Institute(48.02%) and the balance 2% shares are held by individuals.
OTBL has developed various Biotechnical Solutions to oil and gas Industries throughcollaborative researches involving the Company and TERI. These technology includeBioremediation Paraffin Degrading Bacteria_(PDB) Wax Deposition Prevention_(WDP) andMicrobial Enhanced Oil Recovery (MeOR) which are being provided to oil and Gas industriesboth in India and abroad. Revenue from Operations of OTBL during FY'18 was Rs 178 millionand Profit After Tax was Rs 81 million.
11. Other Business Initiatives Important MoUs/ Agreements
a. Re-assessment of Hydrocarbon Resources KDMIPE Dehradun
Your Company has completed the prestigious project on "Re-assessment ofhydrocarbon resources of sedimentary basins and deep water areas of India" inassociation with Oil India Ltd. (OIL) and DGH before scheduled time. The feasibilityreports were reviewed by International Experts representatives of DGH and OIL and weresubmitted to DGH on January 31 2017. The prognosticated hydrocarbon resources estimationof the country for 26 sedimentary basins and offshore areas has shown a significantincrease on this reassessment.
b. Gas Supply at Ceiling price from Deep water fields: Under the second tender forS1-Vashishta gas for the first time 45000 SCMD of deep water gas to one consumer wastied up at ceiling Price.
c. Modified Evacuation Plan for KG DWN 98/2 Gas: A changed methodology has beenfinalized to bring part of the upcoming KG DWN 98/2 gas to another landfall point i.e.Mallawaram in view of connectivity to EWPL (East west pipeline) to enable this gas toreach PAN India customers and also utilization of Onshore Gas Terminal at Mallawaramacquired from GSPC.
d. FIFO Agreement with GSPC: Gas Sale &
Purchase Agreement (GSPA) was executed on June 01 2017 between GSPC (as the gasproducer) and GSPC (as the buyer) in line with the Farm in Farm out agreement (FIFO) withrespect to contract area identified as block KG-OSN-2001/3. Subsequently the GSA wasnovated to the Company by signing of the Novation Agreement on August 04 2017.
e. HFHSD & LSHS
At Hazira a NGL fractionation unit has been commissioned which will produce newproducts such as HFHSD (High Flash High Speed Diesel) and LSHS (Low Sulphur Heavy Stock).At Tatipaka mini refinery also HFHSD production has started and sample has been tested atHPCL Vizag. Sale arrangement for HFHSD ex-Hazira and Tatipaka and LSHS ex-Hazira has beenfinalized with HPCL. HPCL was awarded LSHS ex Tatipaka supply extension onSeptember 05 2017. f. C2-C3
NegotiationsonC2-C3pricingmechanismforproduct supply from Uran with RIL resulted inproduct price improvement. New pricing methodology for C2-C3 ex Uran supply to RILwas signed on November 28 2017 effective from April 01 2017 till the validity ofcontract i.e. March 31 2020.
g. Joint Industry Project (JIP): A contract had been entered between the Companyand NGI (Norwegian_ Geotechnical Institute) Norway on August 07 2015 for participation inthe Joint Industry Project (JIP) for "Reliability of API & CPT-based axial pilecapacity design methods". Five Internationally reputed companies (Petrobras StatoilDong Energy DNV GL and Lundin) participated along with the Company. The project has beensuccessfully completed on December 31 2017. This Project will benefit in optimization ofoffshore pile foundation and life extension of old platforms.
h. ONGC-PAN IIT Collaborative Research Program:
Your Company has entered into a Memorandum of Collaboration (MoC) with Pan IIT inJanuary 19 2015 to work towards a collective R&D Programme for developing indigenoustechnologies to enhance exploration and exploitation of hydrocarbons and alternate sourcesof energy. Pan IIT is a consortium of seven premier Indian Institutes of Technologynamely Kharagpur Kanpur Madras Mumbai Delhi Guwahati and Roorkee. This is along-term initiative for sustained research development and capacity building. Under thisprogram R&D projects (32 Nos.) have been taken up in different phases (Phase-I: 15projects Phase-II: 12 projects Phase-III: 5 projects) distributed with differenttimelines up to 2020.
i. An agreement was signed with M/s Belgrave Oil and Gas Corporation CalgaryCanada for Cyclic Steam Stimulation Pilot in Lanwa field' on June 25 2015 and wasvalid up to December 31 2017. The Contract has been further extended up to December2019.
j. Your Company signed MoU with IFP Energies nouvelles France on December 202017 for Long term collaborative working relationship in areas of Geoscience &Reservoir Management and is valid for 5 years.
k. Your Company has signed an agreement with IIT (ISM) Dhanbad on December 032017 for execution of project entitled "Development of polymer nano-compositehydrogel systems for water control in oil/ gas wells completed in harsh environment".
l. Your Company has signed a MoU on December 23 2015 with Oil India Ltd (OIL) forproviding consultancy and sharing technology for five years in the field of EOR and Watershut-off (WSO) jobs. The MoU is valid for five years for setting up of EOR lab EORprojects Heavy oil Chemical Water shut off (WSO) jobs and Oil field water managementetc. During the year 2016-17 and 2017-18 about 6
WSO Jobs were carried out and currently two jobs are lined up. As a follow-up a newrequest to provide consultancy service for WSO Jobs in 15 wells of OIL has been receivedwhich is under finalization.
m. M OU with Mumbai Port Trust
Nehru Port Trust and Participating Oil Companies
Y our Company has an MoU with Mumbai Port
(MbPT) Jawaharlal Nehru Port Trust (JNPT) and Participating Oil Companies viz. BharatPetroleum Corporation Limited Indian Oil Corporation Limited Hindustan PetroleumCorporation Limited Reliance Industries Ltd. Chemical Terminal Trombay Ltd. AegisLogistics Ltd. and Tata Power Company Ltd. whose oil is being handled at these ports forproviding Tier-1 oil spill response services and facilities at MbPT and JNPT covering theCompany's Uran Plant and Nhava Supply Base. The Participating Oil Companies are fundingthe Tier-1 oil spill response services and facilities the contract for which has beenawarded to Sadhav Shipping Ltd. Mumbai by MbPT for a period of five years valid up toOctober 21 2019 with Company's share of 41.5%. Under the MoU MbPT is conductingquarterly oil spill response mock drill in the port area with the Participating OilCompanies.
n. M oU with CSIR-National Institute Oceanography (NIO) covering areas like
Analysis and R&D studies of heavy metals concentration in environmentalsamples;
Bioremediation studies of waste generated during oil exploration and productionactivities;
Toxicological studies of the wastes;
Environmental tests of drilling fluids drilling mud and drill cuttings;
Study of sediment characteristics;
EIA studies for offshore activities;
Impact prediction and modelling for oil spill air pollution and water pollutionfor risk assessment studies in petroleum sector etc.
o. Agreement with Oil Spill Response Ltd. (OSRL) UK
Y our Company has an agreement with Oil
Response Limited (OSRL) UK for combating major oil spill of Tier-3 level. OSRL has oneof the world's largest technical resources for responding to oil spill. It operates as anon-profit cooperative of the major international oil and energy companies like ChevronBritish Petroleum STATOIL British Gas International etc. Company is a participant memberon OSRL since 1999. A s a part of service contract OSRL has to undertake
Trust preparedness review of Company's offshore and coastal facilities every year. Inview of development activities the Annual Preparedness Review was conducted at EasternOffshore Asset (EOA) Kakinada on July 24 2017.
p. A greement with Reliance Industries Ltd.
Cairn India Ltd. Gujarat State Petroleum Corporation and Oil India Ltd. at East Coast
Y our Company has signed agreement with Reliance
Industries Ltd. Cairn India Ltd. Gujarat State Petroleum Corporation and Oil IndiaLtd. on June 01 2017 for pooling of resources and cooperation during oil spill incidentson East Coast. The agreement is valid for 5 years.
12. I nformation Technology
i) Paperless Project under DISHA Digitisation of Integration andStandardisation by Harnessing Automation
Y our Company has taken giant step in digitisation by rolling out Paperless Officesystem at Mumbai region on July 12 2017 followed by Delhi on July 31 2017. Subsequentlyit has been rolled out in Western Region on September 25 2017 by the Hon'ble PrimeMinister Shri Narendra Modi. Presently all the work-centres of the Company are onPaperless office system.
ii) Project Management Office
I n today's competitive world the focus is on timely completion of Projects. Towardsthis objective a Project Management software has been implemented. The tool has beenconfigured and presently strategic Projects are being monitored. In due course allProjects would also be monitored using this tool.
iii) B WA for Onshore Rigs in Western Onshore
Spill F or Onshore Drillings high bandwidth connectivity based on Wi-Max technologyhas been extended.
This would enable them to have Office like network experience at the rigs.
T he Company has implemented Wi-Fi with enterprise security features in SCOPE Minar asa pilot to enable mobiles and Bring your Own Devices (BYOD) of employees to be connectedto Company network. Critical Conference Halls of work-centres of the Company have beenconnected to this WiFi allowing seamless roaming for users at all work-centres.
v) L AN and WAN
S tate-of-the-art technology-based Network have been inducted in the Company which hasbeen used to upgrade the LAN and WAN Infrastructure. This provides for secure andefficient network connectivity across the organisation resulting in smooth IT experienceand increased employee productivity.
vi) I nformation Security Management System
IS MS Group is making all efforts in information security measures across the Companyand for enhancing employee awareness on issues in the domain of Information Security andCyber Security. In order to streamline and smoothen up the process of ISMS sustenance twodifferent phases of ISMS Audit cycles for 30 Data Centers and implementation of ISMS at 18new Data Centers have been consolidated into a single audit cycle. This process ensuresimplementation of ISMS in a total 48 Data Centers of the Company. As part of efforts forenhancing employee awareness on issues and current trends in the domain of InformationSecurity and Cyber Security a Quarterly IS-e-Newsletter is being published regularly onONGC Reports portal. So far Five (5) issues have been published. Certification Audit for48 Data Centers as per ISO 27001:2013 standard has also been completed by March 2018.Advisories and Alerts received from CERT-In and NCIIPC were shared with Corporate IT Teamfor implementation and for keeping constant vigil. An Advisory by CISO on various Ransomwares was uploaded on "reports. ongc.co.in". Advisory received from CERT-In wasmailed to IS-FORUM members and In-charges of Infocom Data Centers.
vii) En terprise wide Access Control and Surveillance (EACS) Project:
A s tate of the art Enterprise wide Access Control and Surveillance (EACS) systemproject has been proper conceptualized to mitigate any threat perception to the securityof the oil installations as well as offices of your Company. M/s BEL is the LSTKcontractor to implement the project at 330 sites covering all the work centres of theCompany. Project is likely to be fully operational by December 2018.
13. INDE G-Make in India Campaign
Y our Company is leading the upstream sector for successful implementation of the Makein India devices campaign in the oil and gas sector. This major national program isdesigned to facilitate investment foster innovation enhance skill development protectintellectual property and build best in class manufacturing/services infrastructure tomake India a manufacturing hub and bringing economic transformation in India. Y ourCompany carries its legacy of the pioneer corporate in initiative on Import Substitutionand indigenization. In the last few decades the ensuring Company has developed manyIndian vendors and some of them are now international players in their areas. Company'sinitiatives has helped Public Sector Units to expand their capabilities and the Companyhas helped creation of some of the large Indian Companies in services and projects areasof oil and gas. With the new thrust through the "Make in India" campaign theCompany has revived its multi-pronged approach to enhance the capabilities of Indianequipment goods services and projects market through promotion of Indian vendors fordevelopment in India and through tie-ups with global players.
A. M ake in India and Localisation Drive
Your Company's drive for localisation of procurement and promoting Make in India isgaining momentum. The indigenous share of annual expenditure of the Company stood at33.36% as compared to 32.7% in the previous financial year.
B. I n-house Refurbishment Capabilities
Catering to the humungous demand of BOP Repair/
Refurbishment in all work centres of the Company Central Workshop (CWS) Vadodara hasdeveloped
BOP Repair Shop the single in-house facility across the Company for repair/refurbishment of Cameron NL Shaffer and Hydril make BOPs of different sizes and pressureratings as per OEM Standards. Being a critical safety equipment procured from overseasBOP has always been important in the core activities of the Company.
The average repair cost of each BOP has been reduced from Rs 5.85 million in 2014-15 toRs 3.2 million in 2016-17.
C. Indigenization Initiatives
Your Company has conducted interactions with vendors and manufacturers including MSMEs/ MSME (SC-ST) for promoting make in India at national and international forums. Sparesfor White Star Mud Pump Spares for UPET workover rigs Piston rod extension rod studswear plate for Pumps Seal kits for NOV make TDS were indigenized through domesticindustry.:
D. Initiatives to Develop Alternate Indigenous Source against Import:
|Sl. No. ||Name of Firm ||Item Description |
|1 ||M/s Dhariyal Polymer Ahmedabad ||XC Polymer (a special mud chemical required for E&P operations) |
|2 ||M/s Madhu Hydrocolloids Ahmedabad ||XC Polymer (a special mud chemical required for E&P operations) |
E. R & D Initiatives under Make in India Campaign:
An R&D collaborative project titled "Development of Shock Wave assistedfracking" is being taken up with a company promoted by professors of IISc Bangalore.The MoU was signed in the presence of Hon'ble Prime Minister. The cost of the project isRs 680 million.
14. Start-up' Initiative
The Company has launched Rs 1000 million Startup fund on its 60th foundation day i.e.on August 14 2016 to foster nurture and incubate new ideas related to energy sector. Theinitiative christened as the Start-up' is in line with the Govt. of India'sinitiative Start-up India'. The initiative is intended to promote entrepreneurshipamong the younger Indians by creating an ecosystem that is conducive for growth ofStart-ups in the energy sector which has a huge potential for technology-enabled ideas.The energy sector is contributing enormously to the growth of economy. Currently thesector faces various critical challenges and new ideas are required to mitigate thosechallenges.
A dedicated website startup.ongc.co.in for ONGC Start-up' initiative was createdfor registration of proposals and the Company entered into a MoU with IIT Bombay (IITB)and Society of Innovation and Entrepreneurship (SINE). Another MoU has been entered withL-Incubator of IIM Lucknow for evaluation and incubation of Start-Ups selected by theCompany.
As of now two rounds of Start-Up selection have been completed. In the first roundaround 30 applicants were shortlisted in first lot of applications and invited for thepitching session at Mumbai. Steering Committee selected six startups for providingincubation support subject to further due diligence and acceptance of terms andconditions. MoU were exchanged with five selected Startups on 25.10.2017 in the presenceof Honorable Union Minister Petroleum and Natural Gas.
In the second round 20 applications were taken up for detailed evaluation byL-Incubator out of which 12 were identified for invitation to the Pitching Session beforethe Steering Committee. Pitching session for final selection was held on 06.06.2018. Fivestartups have been selected for funding and incubation support.
i. Innovation Challenge
Your Company launched Innovation Challenge on 18.05.2017 on innovate.mygov.in websitehosting following five problem areas related to their area of operations viz. Artificiallifting Equipment for Horizontal Wells (including ESP Pump for horizontal wells) FlowImprovement in Crude oil pipelines Data Computation and Analytics Sand Influx Controlduring production of Oil & Gas Mud loss in wells in Western Offshore.
The prize money for two best proposals in each challenge area was kept at Rs 1 millionand Rs 0.5 million respectively.
Mr. Nirmal Ghotekar of Pune won prize of Rs 0.5 million in Data Computation andanalytics area for which award given on 26.01.2018 at Republic Day function in Dehradun.
ii. Solar Chulha Initiative
Hon'ble Prime Minister while dedicating the Corporate Office of the Company onSeptember 25 2017 exhorted the Company to take up a challenge of developing an energyefficient electric cooking stove which would enable cooking through the use of solarenergy. Accordingly your Company launched a nationwide Solar Chulha Challenge invitingEntrepreneurs/ Scientists/ Researchers with interest in innovation to participate in theIndigenous Development effort on Design Development and Demonstration of Solar Chulha(Electric and Thermal) suitable for indoor cooking of Indian food (including fryingbaking and chapatti making).
A panel of eminent scientists drawn from various national institutions/ bodies wasconstituted under the leadership of former Chairman Atomic Energy Commission Dr. AnilKakodkar for evaluation of applications.
Two round of evaluation by the expert panel was conducted on the 1550 applications thatwere received by closing date. For the demonstration of the proposed concepts fiveparticipants were called during April 23-24 2018. Top three entries were awarded Rs 1million Rs 0.5 million and Rs 0.3 million respectively.
Your Company will be procuring 1000 units for demonstration in different regions.
15. Health Safety and Environment (HSE) Accreditations and Other achievements-
Being a high risk industry safety of its employees is the top-most priority of yourCompany. Hydrocarbon exploration & production (E&P) operations are being carriedout in varied climate and environment areas ranging from deserts to coastal areas hillyterrains to forest areas shallow water to deep waters and also in ultra-deep water areas.E&P activities often interact with the ecosystems and may have physico-chemical &bio-geochemical impact on the surrounding environment. Your Company being a responsibleCorporate makes all efforts for protection and preservation of environment. The Companyhas recently revised its Environment Policy and e-Waste Policy in line with the existingrules regulations and guidelines. Your Company has a dedicated Institute viz. Instituteof Petroleum Safety and Health Management (IPSHEM) at Goa for Research and development inthe field of Health Safety and Environment Management apart from conducting trainingProgrammes.
Your Company takes all the requisite measures to minimize the impact of E&Pactivities on the environment by adoption of clean technologies for gaseous emissionsliquid effluent and solid waste generated out of its operations.
Your Company has implemented globally recognized QHSE Management System conforming torequirements of QHSE Certifications ISO 9001 ISO 14001 and ISO 18001 (OHSAS) andcertified by reputed certification agencies at all its operational units. Corporateguidelines on online incident reporting investigation and compliance of auditobservations have been developed and implemented for maintaining uniformity throughout theorganization in line with international practice.
Highlights of HSE during 2017-18:
a. Internal and External Safety Audits: To check the conformity of activities andprocesses to HSE management systems as well as to prevalent rules regulations guidelinesand standards regular audits are being conducted by external agencies namely OilIndustry Safety Directorate (OISD) & Directorate General of Mines Safety (DGMS) andInternal Safety Audits (ISA) by multi-disciplinary teams of the Company.
OISD is a technical directorate under Ministry of Petroleum & Natural Gas.It carried out audits of 34 Onshore installations 13 Offshore Installations and 2 GasProcessing. Also pre-Commissioning Safety Audit of Navagam-Koyali pipeline and two unitsof Hazira Gas processing Plant was carried out during 2017-18. The Operational area-wisecompliance during 2017-18 is 95.86 for Onshore operations 76.65% for Offshore operations71.40% for Process plants 82.53% for Pipelines.
DGMS is a Regulatory Agency under the Ministry of Labour and EmploymentGovernment of India in matters pertaining to occupational safety health and welfare ofpersons employed in mines (Coal Metalliferous and oil-mines). It carried out inspectionof 176 Onshore Installations in 2017-18. Your Company gives highest priority to theimplementation of the observations raised during External Safety Audits (ESA) and InternalSafety Audits (ISA). Compliance status to the observations is summarised as under:
|Internal Safety Audits(ISA) ||External Safety Audits(ESA) |
| ||OISD ||DGMS |
|91.3% ||92.42% ||93.26% |
b. Waste Water Management: To monitor the discharge of pollutants into environmentand to meet statutory requirements Your Company has setup 26 number of Effluent TreatmentPlants (ETPs) across onshore work centres to treat approx. 78110 m3/day of waste waterproduced during E&P operations. Produced Water Conditioners (PWCs) have been installedat process platforms for Offshore effluent treatment. For treatment of sewage water beinggenerated in offshore facilities Sewage Treatment Plants (STPs) are provided on board totreat the sewage before discharge.
c. Solid Waste Management: For environmentally safe disposal of oily wasteyour Company has a Joint Venture company ONGC-TERI Biotech Limited (OTBL) which hasdeveloped specialized patented technology for bioremediation of oily sludge/oilcontaminated soil. The technology uses a consortium of Hydrocarbon degrading bacteriawhich reduces the TPH (Total Petroleum Hydrocarbons) levels in waste/ soil to less than 1%during 2017-18 54012 MT of oily sludge / oil contaminated waste has been bio-remediated.
d. Environmental Clearances: Ministry of Environment Forest and Climate Change(MoEFCC) has granted 21 Environment Clearances for Exploration Development and Productionactivities. These include clearance for 441 wells in onshore and offshore; Combined CyclePower Plant at Hazira; Desalination Plant and LPG Storage Bullets at Uran; and Shale Gasexploration in Cambay and KG-PG Basin.
e. Other initiatives during the year 2017-18:
(i) Ten Safety Rules Awareness Program: Under Ten Safety Rules AwarenessPrograms a total of 28497 personnel (including contract personnel) have been coveredsince inception (February 2017). Almost all the field employees have been covered. Nowit is a permanent feature of safety aspects.
(ii) Mines Vocational Training (MVT 1966): A total of 2034 personnel (523employees and 1511 contract personnel) were imparted MVT during FY'18.
(iii) Viniyaman Sangam: A national level awareness program "ViniyamanSangam" on Oil Mines Regulations-2017 (OISD standard based) was organised onSeptember 15-16 2017. The program was attended by more than 110 participants includingofficials from DGMS OISD Key Executives and officers from different work centres.
(iv) Review of Oil Mines Regulations: To facilitate working in the fields andimprove safety standards DGMS had formed a committee to review OMR-1984. The Company wasrepresented by Corporate HSE and contributed significantly. Suggestions given by CorporateHSE were incorporated in updated Oil Mines Regulations-2017 which was notified by theMinistry of Labour & Employment on August 19 2017.
(v) Compendium of Generic observation: A compendium was prepared and uploaded inyour Company's internal portal for uploading the status by self-auditing by OIMs (OffshoreInstallation Mangers)/ IMs (Installation Managers) /DICs (Drillsite Incharges) / REs(Resident Engineers)/ RPS (Resident Production Superintendent. The status is continuouslymonitored by CHSE.
(vi) Training to students and initiative for Skill development: To providetraining and firsthand knowledge about the actual Oil field conditions to students anE&P Park has been constructed at Ankleshwar-ONGC Colony in which various geologicalModels oil Samples core samples and model of artificial lift have been displayed alongwith actual field equipment/ machineries like work-over rig (CW-100-Vl) sucker rod pumpmud pump CMT (Crisis Management Team) module group separator test separator gasflaring facility heater-treater x-mas tree knock out facility and flexible water tank.For training and demonstration logging units cementing units and fire tenders are madeavailable whenever required. The facility can also be used to give training to local ITIstudents and on job and MVT trainings. Two batches of apprentice trainee have also beentrained.
(vii) Hazard Alert Card (HAC) was launched to capture unsafe acts and unsafeconditions. Any employee can report unsafe act and unsafe conditions and place the card inthe drop box. Safety Officer and Installation Managers shall take action on the same.Monitoring mechanism has also been formulated and put in place.
(viii) HSE Index for benchmarking installations on various parameters likedetection and suppression system environment parameters evacuation systems equipmentintegrity etc. is being followed regularly on monthly basis by Offshore ProcessComplexes. In the second phase Offshore Drilling Services and thereafter Process Plantsand Onshore installations/ rigs are scheduled in third phase. Reporting on HSE Index isscheduled to be completed across the Company by August 2018.
(ix) Mock Drills and Exercises on Oil Spill Response: Exercise"Prasthan" was conducted by Regional Contingency Committee (West) comprising of12 agencies viz. Navy ICG Air Force ONGC JV Cairn DG Shipping MbPT JNPT Govt. ofMaharashtra Gujarat and SIB on November 21 - 22 2017 by activating Regional ContingencyPlan to practice the emergency handling by co-ordinated joint action.
(x) Oil Spill Exercise by Indian Coast Guard: An Oil spill Response exercise wasconducted by Indian Coast Guard on March 13 - 14 2018 off Kakinada Coast in EasternOffshore. Further mock drills are being regularly conducted at Offshore ProcessComplexes Offshore Drilling Rigs FPSO (Floating production storage and Offloading) andMSVs (Multi Support Vessels) to check the level of preparedness identify grey areas andtake corrective actions.
(xi) Guidelines regarding disposal of chemical and other laboratory waste: YourCompany for the first time issued a uniform guidelines for disposal of laboratory chemicalwaste/ samples/ gases and other waste for oil field chemical testing laboratories andR&D institutes of the Company.
f. Initiatives for Environment Protection and Conservation: Apart from thevarious steps taken for Environment Protection and Conservation provided aboveAfforestation is emphasized through Mangrove and Ringal Plantation to contribute towardsreduction of pollution.
Mangrove Plantation: Project Mangrove was initiated with the aim to stabilizeshoreline close to Company's Assets and to protect the wells from soil erosion in Gandharfield on the river Dhadar shoreline. During Phase-I of project plantation of a total of1785250 mangrove saplings seedlings and propagules in 100 hectare area of Gandharfield Ankleshwar in Gujarat; and in Phase-II plantation of a total of 2.16 millionmangrove saplings seedlings and propagules in Gandhar field Ankleshwar and near HaziraPlant Hazira in Gujarat was undertaken by your Company.
Ringal Plantation: To sustain fragile ecosystem of Himalayas ringal plantationin Upper Himalayan Region is being carried out as an initiative under National Action Planon Climate Change launched by the Prime Minister. Your Company being a responsibleorganization towards protection of environment has always given high importance toplantation and their survival not only at its operational work areas but also in areasoutside its work-centre. A total of 1.075 million Ringal plantation in 430 ha of UpperHimalayan region has been done fixation resulting in 1.97 million tonnes of CO2 perannum.
QCI-NABET Accreditation: Your Company is the 1st PSU to be accredited byNational Accreditation Board for Education & Training (NABET)-Quality Council of India(QCI) as the Consultant Organization for the purpose of carrying out Environment ImpactAssessment (EIA) studies and preparing EIA reports for offshore and onshore Oil and GasExploration Production and Development. The accreditation has contributed to improveCompany's image apart from significant financial and time savings.
16. Carbon Management & Sustainable Development
Sustainable Development is the overarching working template in the Company and thisfinds expression in our commitment to continually enhance the triple bottom linebenchmarks of economic environmental and social performance. The Company has a dedicatedset up called Carbon Management and Sustainability Group (CM&SG) at the corporatelevel with adequate resources and empowerment. CM&SG is a group of professionals fromvarious disciplines to plan implement and monitor sustainable development activities inassociation with Sustainable Development Officers (SDOs) located at work centres.
Sustainable Water Management (SWM)
As an E&P Company the Company's business depends on sustainability of waterresources which are presently under pressure. Globally per capita availability offreshwater is steadily decreasing and trend will inevitably continue with the increasingconsumption levels and as climate change unfolds. In this situation it is imperative forthe Company to develop new strategies for water management in order to achieve sustainablegrowth and development.
Rainwater Harvesting (RWH) projects: Rain water harvesting_ is the collection andstorage of rainwater for beneficial uses like washing irrigation gardening etc. as wellas for recharging of ground water aquifers rather than allowing it to run off intodrains. The Rainwater harvesting policy of the Company provides the necessary frameworkand guideline for pan India implementation of the rainwater harvesting projects.
Also the existing Rainwater harvesting policy is being modified with the perspective ofextending the scope of carrying out rainwater harvesting outside the operationalboundaries of the Company and provide climate resilience to the nearby areas from draughtand flood.
Sea Water Desalination: With fresh water scarcity looming large across the worldand especially in India desalination of seawater has become one of the most importanttools to address the increasing demand of fresh water. Your Company is setting up a 10 MLDSea Water Desalination Plant within Uran Processing Plant. The Plant can be upgraded to anincreased capacity of 20 MLD if there is an increase in fresh water requirement. Uranprocess plant situated in Maharashtra near Mumbai is one of the most important plants ofthe Company responsible to process the crude coming from Mumbai High Assets and producingvalue added products from it. The desalination plant will mitigate the fresh water risksof the processing plant and contribute towards environmental sustainability of the area.
Your Company is also in the process of setting up seawater desalination plants in othercoastal work centres to ensure freshwater availability and sustainable growth. Feasibilitystudy is being conducted at MRPL and Rajahmundry Asset to set up desalination projects ofappropriate capacity.
Sewage Treatment Plants: Three numbers of Sewage Treatment Plants each with 199Kilo Litres/ day (KLD) capacity are under construction at ONGC colony Mehsana Asset.
Water Footprint Study: To understand the pattern of freshwater consumption itssources and possibilities of reduction in consumption water foot print studies arecarried out across the work centres by utilising our in-house expertise. This year a tabletop analysis of Assam Asset data had been carried out.
Clean Development Mechanism Projects
Emission reduction through CDM projects: The Company commenced its CleanDevelopment Mechanism (CDM) journey in 2006. Currently there are has 15 registered CDMprojects with United Nations Framework Convention on Climate Change(UNFCCC)thatyield(potential)CertifiedEmissisons Reductions (CER) approx. 2.1 millionyearly. The list of registered CDM projects along with CER is given at Point No. 6.10 ofBusiness Responsibility Report. Your Company has taken an initiative to extend the creditperiod permissible under CDM regulation subject to the merit of the project for another7 years for 51 MW Wind Power Project Surajbari Gujarat. The project was registeredwith UNFCCC as a CDM project in the year 2010 with a credit period of 7 years. BesidesYour Company is also in the process of validation and registration of new CDM projectswith UNFCCC. These are Coal Bed Methane (CBM) Asset Bokaro C2-C3 Plant Dahej GujaratWaste Heat Recovery Unit MH Asset 10 MW Solar Power project Hazira Gujarat.
T he Company has first launched its assured sustainability Report in the year 2009-10and from there onwards the Company has incrementally enhanced the boundary of reporting toinclude our subsidiaries OVL and MRPL and from FY'17 onwards the Group CorporateSustainability Report is launched by including the Venture companies OTPC OPaL and OMPL.The GRI based externally assured reports are now a major enabler to the Company towardscreating triple bottom line value creation and parity to all forms of capital.
Setting up of Pilot "Waste to Fuel" project in Puri city under Swachh BharatAbhiyan of the GoI.
Your Company has set up a pilot "Waste to Fuel" project in the holy city ofPuri Odisha as a CSR project under the Swachh Bharat Abhiyan of the GoI. Waste to fuelprojects are an emerging area in the field of municipal solid waste management where inthe collected wastes are segregated and processed for generating solid/ liquid/ gaseousfuel from it. For setting up the proposed pilot plant Puri municipality has agreed toprovide necessary land and also supply of MSW to the plant regularly during the entirelife cycle of the plant. The Company will infuse necessary capital expenditure in the formof CSR grant. The plant will segregate the mixed wastes generated daily and process themthrough latest and cost efficient technologies for generating fuel from them.
A Study on Climate Change Risks: Preparedness for Oil and Gas sector
Your Company in association with other oil and gas sector PSUs conducted a Scientific"Study on Climate Change Risks: Preparedness for Oil and Gas sector" by TheEnergy Resource Institute (TERI) and Federation of Indian Petroleum Industry (formerlyPetroleum Federation of India). The aim of the study was to understand and assess climatechange risks to the upstream midstream and downstream infrastructure of Oil & Gassector in India along with challenges due to emerging climate policies and to develop aframework to facilitate integrate climate change risks in to strategic decision making.
17. B usiness Responsibility Report 2017-
C lause (f) of sub-regulation (2) of 34 of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 stipulates that the annual report shall contain aBusiness Responsibility Report describing the initiatives taken by the listed entity froman environmental social and governance perspective in the format specified. Accordinglythe
Business Responsibility Report for 2017-18 has been appended to this Annual Report.
18. Internal Control System
Your Company has put in place adequate Internal
Financial Controls by laying down policies and procedures to ensure the efficientconduct of its business; the safeguarding of its assets; the prevention and detection offrauds and errors; the accuracy and completeness of the accounting records; and the timelypreparation of reliable financial information commensurate with the operations of theCompany.
Ef fectiveness of Internal Financial Controls is ensured through management reviewscontrol self-assessment and independent testing by the Internal Audit Team indicating thatyour Company has adequate Internal Financial Controls over Financial Reporting incompliance with the provisions of the Companies Act 2013 and such Internal FinancialControls were operating effectively. The Audit & Ethics Committee reviews the InternalFinancial Controls to ensure their effectiveness for achieving the intended purpose.
Independent Auditors Report on the Internal
Financial Controls of the Company in terms of Clause (i) of Sub-Section 3 of Section143 of the Companies Act 2013 by the Statutory Auditors is attached along with theFinancial Statements.
19. R&D efforts through ONGC Energy Centre Trust (OECT)
I. Patents-granted International Patents:
During FY'18 against three International PCT patents on Cu-Cl cycle filed earlierjointly by OECT and ICT-Mumbai in six countries (USA Canada Japan UK Korea and China)the following two applications were granted:
1. Effect of Operating Parameters on the Performance of Electrochemical Cell inCopper-Chlorine Cycle' - granted in UK. (Patent already been granted in Japan Canada andUSA).
2. Electrochemical Cell Used in Production of Hydrogen Using Cu-Cl ThermochemicalCycle' - granted in China (Patent already been granted in Canada Japan UK and USA).
During FY'18 the following two National Patents were granted:
1. "Hydrogen Production Method by Multi-Step Copper-Chlorine ThermochemicalCycle" jointly filed by OECT with ICT Mumbai vide Patent No. 294447.
2. "Effect of Operating Parameters on The Performance of Electrochemical Cell inCopper-Chlorine Cycle" jointly filed by OECT with ICT Mumbai vide Patent No. 294960.
Patents filed National Patents:
During FY'18 two National Patent were filed in India:
1. National Patent for title of invention "A molten salt composition for hightemperature thermal energy storage" (India: 201721016058) has been filed jointly byOECT with ICT Mumbai.
2. National Patent for title of invention "Acid and oxidative resistant cationexchange membrane for electro dialysis electrolysis and other electrochemicalprocesses" (INDIA: 0016NF2018) has been jointly filed by OECT with CSIR-CSMCRI.
Against National patent filed earlier three PCT applications were filed during2017-18:
1. PCT application No. PCT/IN2017/050151 titled Catalyst composition forconversion of Sulphur Trioxide and Hydrogen Production Process' was filed jointly by OECTwith IIT Delhi on April 28 2017.
2. PCT application No. PCT/IN2017/050150 titled Process for conversion of SulphurTri-oxide and Hydrogen Production' was filed jointly by OECT with IIT Delhi on April 282017.
3. PCT application PCT/IN2017/050461 titled "Methane Production From UndergroundCoalbed Methane Wells" was filed jointly by OECT with TERI Delhi on October 10 2017.
II. New Projects
During FY'18 OECT has taken up twelve (12) new in-house/ collaborative projectsbesides new initiatives. The details are given below:
A. Uranium Exploration:
1. Drilling coring and logging of 8800 meters (16 parametric boreholes) in KaikalurLingala area KG Basin Andhra Pradesh - In house project.
2. Drilling coring and logging of 20150 meters (43 parametric boreholes) in SONValley and Sagar area M.P and Karjan - Padra area Gujarat - In house project.
3. Development of ISL Process for extraction of Uranium from Subsurface deposits"-In house project with KDMIPE: to develop leachant formulations of prospective explorationareas.
B. Hydrogen Program:
4. Further Investigations on ICT-OEC Cu-Cl Cycle: Studies on Separations MaterialScreening and Integration of Molten Salt Media with Cu-Cl cycle - In collaboration withICT Mumbai.
5. Hydrogen storage using Colloidal Gas Aphrons (CGAs) and CGAs-loaded with metalhydrides In collaboration with IIT Delhi.
C. Biotechnology Program
6. Demonstration of in-situ stimulation and bio-augmentation for methane generation/enhancement from producing CBM wells of Jharia - In collaboration with TERI Delhi.
7. Development and Demonstration of Bioconversion process for generation of methanefrom subsurface lignite deposits - In collaboration with TERI and ARI.
8. Design Development and demonstration of microbial methane generation processsuitable for Poor to marginally producing CBM wells - In collaboration with TERI- DST.
9. Proof of concept Design of Photo-catalytic Reactor and Demonstration of Recycling ofCarbon Dioxide into Hydrocarbons using Solar Energy - In collaboration with IIT Madras.
10. Laboratory scale investigation on chemical treatment of subsurface lignite depositsto enhance the conversion of lignite to methane - In collaboration with CSIR - IICTHyderabad. 11. Development of sludge free clean technology for treatment of Industrialeffluent-with TERI. 12. Utilization of waste heat from produced water for heating wellfluid at North Kadi GGS IV Mehsana North Gujarat with EIL.
13. Refurbishment / Revival of Helium extraction pilot plant at GCS Kuthalam. 14.Selection of Materials for Construction in Cu-Cl cycle and related activities. 15.Development of Sensors for H2S and SO2 detection with BARC: In view of indigenousdevelopment H2S & SO2 sensors by BARC.
16. Solar Thermal Energy for well fluid processing at Company installations to reducefuel gas consumption: A Feasibility report has been prepared through UNIDO.
20. H uman Resources
Your Company values its Human Resources to the most. To keep their morale high yourCompany extends several welfare benefits to its employees and their families by way ofcomprehensive medical care education housing and social security.
21. Human Resource Development
32265 ONGCians dedicated themselves for securing excellent performance of your Companyduring the year. The workforce intake strategy pursued by your Company caters to meetingthe demands of maintaining a steady flow of talent in a business which is characterizedby high risks and uncertainties enormous costs fast changing level of technologyphysically challenging work environment fluctuating product prices and growingcompetition. Your Company has drawn-up a scientific manpower induction plan aligned to thebusiness plans as well factoring the manpower profile of the Company. The followingspecific initiatives were taken to strengthen HR processes:
Online submission of ACR/APAR in respect of all executives (E0 and above) was taken upsuccessfully along with compliance of prescribed timelines with regard to writing of ACR/APAR (% of number of executives) which have been 99.75%.
100% achievement has been in respect to Online Quarterly vigilance clearance updationfor Senior Executives (E5 and above level officers).
Preparation of succession plan was approved by the Board of Directors on September 282017.
Your Company believes that continuous development of its human resources fostersengagement and drives competitive advantage. Towards that end during the year yourCompany conducted Business Games to hone the business acumen of its executives in acompetitive scenario under simulated business constraints. Business Games has proved to bevery popular initiative and tests the ability of the executives through business quizzesbusiness simulations and case-study presentations. During the year 2017-18 a total of 159teams and 636 executives participated in the event. Fun Team Games (FTG) were organizedfor E0 and below level employees to inculcate MDT (Multi-disciplinary Team) concept andspirit of camaraderie and belongingness to the organization which was very well receivedby the participants. A total of 119 Teams and 476 employees participated in FTG during theyear 2017-18. The winners of Business Games and Fun Team Games were felicitated by the CMDon Republic Day Celebrations. Your Company has branded the spectrum of its trainingactivities as EXPONENT' a comprehensive programme which is nurturing the energyleaders of tomorrow. The growth of an ONGCian to an Exponent of energy business isfacilitated by ONGC Academy Skill Development Centers (SDCs) other in-house Institutes;in association with globally recognized trainers. Training Institutes of ONGC organizetraining in all dimensions - Technical as well as non-technical and Managerial.
During the year a total of 17947 Executives and 5319 non-executives were impartedappropriate training spanning 167369 executive and 17817 non-executive mandays acrosswork centres.
With an aim to give an impetus to talent management and carrier progression practicesyour Company exposed 11.9% of its Executives of E-5 level and above to at least one weektraining through Centres of Excellence viz. IITs IIMs NITs ICAI etc. Further in orderto assimilate new and emerging technological advancements pertaining to oil and gasexploration and production 14 training programmes were conducted through foreign facultyduring the year through which 302 participants got the requisite exposure.
22. Employee Welfare
Your Company continues to extend welfare benefits to the employees and their dependentsby way of comprehensive medical care education housing and social security. YourCompany continues to align its policies with changing economy and business environment.
Employee Welfare Trusts
Your Company has established the following major Trusts for welfare of employees:-
Employees Contributory Provident Fund (ECPF) Trust manages Provident Fundaccounts of employees of your Company.
The Post Retirement Benefit Scheme (PRBS) Trust of your Company manages thepension fund of employees of your Company. The Scheme was converted into a DefinedContribution Scheme as per DPE Guidelines in November 2013.
The Composite Social Security Scheme (CSSS) formulated by your Company providesan assured ex-gratia payment in the event of unfortunate death or permanent disability ofan employee in service. In case of Separation other than Death/ Permanent totaldisability employees own contribution alongwith interest is refunded.
Gratuity Fund Trust exists for payment of gratuity as per the provisions of thePayment of Gratuity Act.
Sahayog Trust Your Company has a Sahayog Trust for its Sahayog Yojana to provideex-gratia financial grant for sustenance medical assistance treatment rehabilitationeducation marriage of female dependent and alleviation of any hardship or distress tosecure the welfare of the workforce and their kin who do not have adequate means ofsupport. The beneficiaries under this scheme include casual contingent daily rated parttime adhoc contract appointees tenure based employees apprentices and traineesemployed by your Company besides regular and past employees. Under the scheme an amount ofRs 48 million was disbursed by the Trust during 2017-18 to 1200 beneficiaries.
Asha Kiran Scheme Your Company has Asha Kiran Scheme to meet theemergency needs of the ex-employees retired prior to January 01 2007. The scheme waslaunched as per DPE Guidelines by creating a corpus of 1.5% PBT.
Implementation of Government Directives for Priority Section
Your Company complies with the Government directives for Priority Section of thesociety. The percentage of Scheduled Casts (SC) and Scheduled Tribe (ST) employees were15.3% and 10.10% respectively as on March 31 2018.
Your Company is fully committed for the welfare of SC and ST communities. The followingwelfare activities are carried out by your Company for their upliftment in and around itsoperational areas.
Annual Component Plan:
Under Annual Component Plan for SC/ST every year an allocation of Rs 200 million ismade since FY'12. Out of this Rs 60 million is distributed amongst all the Work centresof the Company for taking up activities for welfare of SC/ST Communities in and around theareas of our operations. In addition Rs 140 million is managed centrally and isearmarked for Special projects/ proposals/ schemes for the welfare of areas/ personsbelonging to SC/ST communities. This fund is especially meant for providing help andsupport in Education and Training Community Development and Medical and Health Care.
Scholarship to SC/ST meritorious students
Your Company provides 500 scholarships for meritorious SC and ST students for pursuinghigher professional courses at different Institutes and Universities across the country inGraduate Engineering MBBS PG courses of MBA and Geo-Sciences. The major feature of thescheme is that the scholarships have been equally divided for both Boys and Girl studentsand the amount of scholarship has been made at Rs 4000/- per month amounting to Rs48000/- per annum per student as per terms and conditions of the scheme.
23. Industrial Relations
During the year your Company maintained harmonious Industrial Relations throughout theyear. Mandays loss due to internal industrial action was reported as NIL' for theyear 2017-18.
24. Grievance Management System
Your Company has put in place an effective online response mechanism(https://grievance.ongc.co.in) since
2015 to enable all stakeholders viz. citizens / vendors / employees / former -employees to register and get online redressal to their grievances related to anyoperational wing.
Your Company has also put in place a Grievance Management System for redressingemployee grievance which provides for three-tier channel for grievance redressal with anIndependent Appeals Committee at Corporate Level which is chaired by an externalprofessional to ensure transparency and justice. The Appeals Committee situated atCorporate Office can also be accessed for settlement of grievances in case the locationChannels are not effective in resolving the grievance. Further provision forrepresentation through Chief Liaison Officers of SC/ST/OBC in the Appeals Committee hasalso been in-built to protect the interest of reserved category employees. For externalstakeholders the Company has a well laid down grievance redressal system in place withadequate provisions to escalate the matters up the hierarchy up to the Board (stakeholdersRelationship Committee a Board level Committee headed by an independent Director).
The Company voluntarily facilitates resolving grievances through Independent ExternalMonitors (IEMs) and through Outside Expert Committee (OEC).
25. Implementation under the Right to Information Act (RTI Act) - 2005
An elaborate mechanism has been set up throughout your Company to deal with requestsreceived under the RTI Act 2005. An Officer of General Manager level based at theRegistered Office at Delhi has been designated as Nodal Officer' for the purpose.Besides this 22 officers have been designated as Central Public InformationOfficers' (CPIOs) at different work centers across the country in compliance ofprovisions of the Act. The particulars of all the quasi-judicial authorities under theambit of RTI Act 2005 have been uploaded on the Company website (www.ongcindia.com) forwider information of the general public. In compliance of Government directives yourCompany has successfully introduced online processing of applications under the Act fromAugust 2016 onwards. 111 applications were carried forward from the year 2016-17.Further 1719 applications were received during the period from April 2017 to March 2018.A total of 1647 of the 1830 applications received were responded to during the period inaccordance with the provisions of the RTI Act 2005. There were 273 first appeals whichwere disposed off during the period. Additionally the Department of Public Information/RTI Cell also processed 109 Second Appeals which were listed for hearing at the CentralInformation Commission (CIC) during FY' 18.
26. Implementation of Official Language Policy
Your Company makes concerted efforts for promotion and implementation of OfficialLanguage. In this regard some of the steps taken during the year were: -
Unicode Hindi software installed in our all offices.
Hindi workshops conducted at regular intervals in all work centres.
Hindi Technical seminars Kavi Gosthies' and Hindi plays organized at variouswork centres.
Various programmes for promotion of Rajbhasha' were organised at all work centresof the Company during Rajbhasha Fortnight' (September 14 - 28 2017) andVishwa Hindi Diwas' (January 10 2018).
Hindi Teaching Scheme of Government of India was effectively implemented at allregional work centres of the Company.
E-Roster of Employees regarding working knowledge of Hindi was put in place.
Hindie-magazines were published at various work centres.
Rajbhasha implementation Help Book was uploaded in the local intranet and internalportal of ONGC.
Paperless office (DISHA) has been made bi-lingual for effective implementation ofOfficial Language policy in the office works.
In recognition of the initiatives taken for promotion of Rajbhasha your Company wasawarded with the Petroleum Rajbhasha Shield' of Ministry of Petroleum & NaturalGas as well as "Rajbhasha Gaurav Award" by the Ministry of Home Affairs duringthe year.
27. Women Empowerment
Women employees constituted over 6.7% (March 31 2018) of your Company's workforce.During the year programmes on women empowerment and development including programmes ongender sensitization were organized. Your Company actively supported and nominated itslady employees for programmes organized by reputed agencies. Over 2000 employeessuccessfully underwent online gender sensitisation module.
Disclosure under the sexual Harassment of women at workplace policy (preventionprohibition & redressal) Act 2013:
Your Company has complied with the provisions under the Sexual Harassment of women atworkplace (Prevention Prohibition & Redressal) Act 2013 including constituted onInternal Complaint Committee (ICC) for dealing with the complaints on sexual harassment ofwomen at workplace. Four complaints of sexual harassments were received in the year2017-18. Reports of ICC have been submitted in all the cases.
28. W ork-Life Balance:-
Your Company continued in its endeavors to ensure work-life balance of its employees.The townships at many work-centers were provided facilities like gymnasiums music roomsetc. Facilities for gym yoga etc. were also provided in Offshore Living Quarters.Outbound programmes with families were also organized at various work-centers. Plays onthe importance of Work-Life Balance' were staged to create awareness amongst theemployees. In addition cultural programmes involving employees and their families werealso conducted. Mahila Samitis 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 traits among the employees.
Your Company continues to extend sustained support for development of sports in thecountry through employment to 173 players and scholarships to 289 upcoming sportspersonsin 23 game disciplines. Financial assistance to various Sports Associations / Federations/Sports Bodies to organise sports events as well as to develop infrastructure was alsoextended.
Some of the key achievements of our sportspersons during the year were:
Mr. Pankaj Advani was conferred with prestigious
Padma Bhushan Award in April 2018.
3 ONGCians were conferred with the prestigious "Arjuna Award" for theyear 2017 namely Ms. Vennom Jyothi Surekha (Archery) Mr. Jasbir Sngh (Kabaddi) and Mr.Amal Raj (Table Tennis).
Mr. Bhupender Singh (Athletics) was conferred with the "Dhyanchand Award".
The total number of National Sports Awardees in your Company now stands at 40 (PadmaBhushan - 1 Khel Ratna 1 Padma Shri 3 Arjuna Award 34 andDhyanchand Award 1).
In the Common Wealth Games 2018 at Gold Coast Australia Company's sportspersonsbagged 13 medals including 5 Gold 3 Silver and 5 Bronze contributing to the overallMedal tally of 66 Medals of Team India. The strength of your Company players in the Indiancontingent was 21. ONGCian Mr. Yadwinder Singh led the Sr. India Basketball Men's team.
ONGCians contributed five Medals including 2 Gold 1 silver and 2 Bronze Medals inIndian Tally in Asian Athletics Championship 2017. ONGC athletes Ms. M. R. Poovamma wonGold Medal in 4X400 mtrs relay race Ms. Swapna Barman won Gold in Heptathlon Ms. AnuRaghwan won Silver Medal in 400 mtr hurdle race Ms. Sanjeevani Jadhav won Bronze Medal in5000 mtrs and Ms. Seena N. V. won Bronze Medal in Triple Jump.
ONGC trio of Mr. Pankaj Advani Mr. Sourave Kothari and Mr. Rupesh Shah secured GoldSilver and Bronze Medal respectively in 2017 ONGC-Asian Billiards Championship held inApril 2017. This was Mr. Pankaj Advani's 7th Asian Billiards Title. Mr Pankaj Advani alsowon his 19th World titles in cue sports Doha Qatar in March 2018.
Ms. Yuki Bhambri won the ATP Challenger World Ranking Tennis tournament held at Pune inNovember 2017.
Mr. Siddhanth Thingalaya participated in World Indoor Athletics Championship March 2018at Birmingham. He was the only Athlete representing India for this event.
ONGCian Mr. Virat Kohli is currently leading the Indian Cricket team as Captain in allMatch formats i.e. Tests One Days & T-20s.
ONGCian Mr. Sai Praneeth won his maiden Singapore Super Series Title in April 2017.
ONGCian Mr. H S Prannoy won US Open badminton 2017 title in July 2017.
Ms. Heena Sidhu won Gold Medal in Commonwealth Shooting Championship 2017 in Goldcoast Australia in November 2017.
Three Kabaddi players Mr. Pradeep Narwal Mr. Sandeep Narwal and Mr. Sachin were thepart of Indian Kabaddi team that won Asian Championship held at Iran from November 22 26 2017.
Mr. G Sathiyan Table Tennis player won God Medal in ITTF Challenges Series SpanishOpen in Nov. 2017.
10 ONGCians duly trained through rigorous winter training programme successfullysummited Mt. Kanchenjunga (8586 m) in May 2018. Earlier in May 2017 6 ONGCians scaledMt. Everest (8848 m)
30. Corporate Social Responsibility (CSR) NGC CSR - Partnering for Inclusive Growth
In the financial year 2017-18 your Company ensured more than 100% utilization of CSRbudget amounting to Rs 5034 million against the budget of Rs 4870 million. As stipulatedin the Section 135 of the Companies Act 2013 your Company has a Board Level Committee onCSR namely CSR and SD Committee who has approved 19 major CSR projects amounting to Rs2600 million in FY'18. Besides a detailed standard operating procedure on CSR hasbeen rolled out to bring in standardization and transparency in the process ofimplementing CSR projects. Expenditure of Rs 5034 million has been made possible byimplementing and executing more than 2400 CSR projects / programs in the areas ofSwachhta Health Education Environment Skill Development and Vocational training byCorporate CSR and 24 work centres of the Company. Your Company has undertaken number offlagship initiatives under Swachh Bharat Abhiyan with an expenditure of Rs 1844.6million. An amount of Rs 1320.3 million was spent towards implementing projects onpromoting education livelihood and skill development. Another Rs 1307.9 million wasspent towards creating health Infrastructure and on preventive health careprograms/projects. Rest of the expenditure was towards implementing projects related toenvironment sustainability women empowerment sports rural development capacitybuilding etc. CSR footprints of the Company can be traced from J&K through theproject implemented by joining hands with Indian Army to seashore of Rameswaram byexecuting an impactful solid waste management program. This year had also seen the Companyimplementing projects worth Rs 776.3 million among the states of North-East India. ASeparate report on Corporate Social Responsibility (CSR) activities undertaken by yourCompany during the year FY'18 is enclosed as Annexure B'.
Major Swachh Bharat Initiatives: At a glance :
Rs 1844.6 million worth of CSR projects/ Program implemented across thecountry.
21085 nos. of Individual Household latrines(IHHL) constructed across India.
53 community toilets projects.
234 school toilets.
181 Water Ro Plant/ Water ATM projects.
358 Tube Wells installed.
11 Solid Waste Management projects.
14 projects on Smoke Free Village.
3 project on development and beautification of parks.
Restoration of Kunds in Varanasi:
Your Company took the responsibility of cleaning and beatification of four famous Kundsof Varanasi namely Durga Kund Lakshmi Kund Lat Bhairav Kund Karim Kund at a cost of Rs114.6 million under Swachh Bharat Mission programme driven by Government of India. Hon'blePrime Minister inaugurated the Durga Kund and Lakshmi Kund at Varanasi. The project isbeing implemented in partnership with National Buildings Construction Corporation Ltd andNagar Nigam Varanasi.
Swachh Iconic place: Clean and green initiative at Tirumala Tirupati Devastanam
As part of Government of India Initiative for Swachh iconic places Your Company hastaken up clean and green initiative at Tirumala Tirupati Devastanam where 7 km longseparate water pipelines is being laid for pumping treated waste water from tertiarytreatment plants to gardens along the ghat road. Also 130 cleaning machines and solidwaste management plant of capacity 30 MT per day has been installed. Apart from thisenergy saving measures like installation of SCADA system and battery operated vehicles forpilgrims is also being introduced. Lakhs of devotees visiting this shrine will bebenefited through this project. An amount of Rs 130 million is sanctioned towardsimplementing this project.
Deep Water Drilling Project along the Paleo Channels of river Saraswati
The ancient and mythological river Saraswati has been known since the Indus valleycivilization. There are several places in Haryana Punjab and Rajasthan where evidence isfound of its existence as the water from this river is known to surface at severalplaces. To tap the water of river Saraswati which is flowing several hundred meters belowthe surface Haryana Saraswati Heritage Development Board (HSHDB) approached the Company.A survey was conducted by a team of experts from the Company to locate the paleo-channelsexisting underground in the northern part of indo-gangetic plains. Accordingly it wasagreed by the Company for drilling of 10 wells where there is a high possibility oftapping water. An agreement was signed with Water and Power Consultancy Services Limited(WAPCOS) for drilling these wells. Nine out of ten wells have been successfully drilledand producing water in good quantity.
Bio-CNG Plant at Haridwar:
Your Company has undertaken an unique initiative in Haridwar to convert cow dung touseful fuel and value added products by setting up Bio-CNG cum Fertilizer and BottlingPlant at Haridwar at a cost of Rs 16 million. The plant will be run by the largestGaushala in Uttarakhand and will help maintaining clean hygienic waste management in theGaushala premises. It will facilitate availability of clean environment to the localpopulation of Haridwar and also help in protecting the fauna i.e. 2200 non-milching cowsat Gaushala by way of making the Gaushala self-sustaining from the revenue generated fromthe project. The plant will also produce organic solid and liquid fertilizers which willbe distributed among the local farmers thereby promoting organic farming.
Open Defecation Free Initiative:
As part of Hon'ble Prime Minister's dream to make our country Open Defecation Freeyour Company has taken the initiative for construction of Individual Household Latrineacross the country in partnership with district administration and other NGOs. More than21085 IHHL has been constructed in the ONGC operational areas of Gujarat Tamil NaduJharkhand Assam and other states of the country at a cost of Rs 846.6 million in the lastone year.
Solid Waste Management Project at Rameswaram
With a vision to make the city of Rameswaram clean and Green "GreenRameswaram" initiative was launched by the Former President of India Late Dr. A P JAbdul Kalam. Vivekananda Kendra Vidyalaya Nardep committed itself to turn the vision ofthe former President into a reality and started cleaning initiative along with not-forprofit organization like Hand In Hand. A Solid Waste Management project was planned byHand In Hand in four municipal wards of Rameswaram located around 25 km from Ramnad GCS.The project deliverables include setting up of robust infrastructure for solid wastemanagement providing vehicles for door to door waste collection developing and puttingin place systems and human resources for ensuring cleaning of roads drains collection ofgarbage and waste segregation of waste into recyclable and biodegradable categories andprocessing of the waste in both the categories in a sustainable manner. Based on thesuccess and the impact of the first phase of the project the second phase of the projectwas extended to four wards of Thangachimadam village which is located around 23 km fromRamnad GCS. An amount of Rs 9.5 million has been sanctioned towards implementing thesecond phase of the project at Thangachimadam Village Panchayat along with IECintervention in Rameswaram Municipality.
Clean Himalaya Initiative
Your Company is the first Company to have taken the Swachh Bharat Initiative to theHimalayas. The Company partnered with Indian Mountaineering Foundation (IMF) to reach theupper Himalayas where every year tons of harmful garbage was left behind by the visitingtourists. From the mountain peaks of Himachal Pradesh to Uttarakhand more than 13cleaning expeditions have been undertaken as part of "Clean Himalaya Initiative"in the last three years. Tons of garbage has been brought down and disposed in aneco-friendly manner. An amount of Rs 8.76 million has been spent towards this initiative.
Initiatives to promote Education Livelihood and Skill Development At a glance:
Project worth Rs 1320.3 million implemented towards education livelihood andskill development.
Imparted skill development training to 6058 youth and women.
Created employment opportunity for 4821 youth & women.
Spent more than Rs 192 million towards creating the infrastructure like classrooms hostels and smart class rooms.
Funded for 420 Ekal Vidyalayas in the remote areas of the country.
Assistance in the form of Scholarships amounting to Rs 4000/- p.m. to more than1500 students belonging to SC/ST and BPL families across the country .
Skill Development Institute at Ahmedabad
Skill India is the vision of Hon'ble Prime Minister of India. In line with the SkillIndia Mission Ministry of Petroleum and Natural Gas has taken the initiative to set up 6Skill Development Institutes (SDI) across the country with funding from Oil sector PSEs.Your Company was directed to set up a SDI at Gujarat. The first batch of 90 students hassuccessfully completed their training in 3 different courses in March 2018. All the 90students were successfully placed in different companies located near Ahmedabad.Considering the success of the first batch the number of trades will be increased fromthree to nine from next year onwards benefiting 780 youth. Your Company contributed anamount of Rs 136 million towards setting up these 6 SDIs across India.
Revival of Sanskrit Language
Sanskrit is an ancient Indian language with its origin from Old Indo-Aryan age havingrich literature and text related to science and mathematics unknown to mankind. In orderto promote Sanskrit through Training and to conduct Research on the ancient storehouse ofknowledge related to science mathematics and astrology Sanskrit Promotion Foundationapproached your Company for financial assistance to carry out work for the development ofthis ancient and rich language which has been undertaken by the Company as its CSRinitiative. The total cost of the project was Rs 57 million in the Phase I Aftersuccessful completion of the PhaseI of the project in September 2017 the Phase- IIof the project has been launched from November 2017 for which an amount of Rs 59 millionhas been sanctioned.
Smart Gram at Daula village of Haryana
Under Smart Gram Initiative of Hon'ble President of India various villages have beenadopted across the country. The model village development at Daula village is one suchinitiative of Hon'ble President of India. As part of this initiative the Company was giventhe responsibility of constructing a senior secondary school at Daula village. The 18223sq ft school building which is currently under construction with funding from the Companywill have 12 class rooms 2 staff rooms Principal's chamber threelaboratories/Multi-Purpose activity room library craft room and a computer room. Thetotal financial implication towards implementing this project is Rs 30 million.
Your Company has partnered with Bharat Lok Shiksha Parishad for reaching remotevillages across the country in its operational area for providing free education tochildren through Ekal Vidyalaya'. This project covers 420 Ekal Vidyalayas in asmany villages of rural tribal and backward areas in 10 states. With average enrolment of30 students per school it is targeted to impart free basic informal education to 24000students with a financial implication of Rs 19 million for a period of two years.
Skill Development through CIPET:
Two separate projects were undertaken with CIPET for training economicallyunderprivileged youth in plastic technology at Bhubaneswar and Jaipur respectively. Atotal of 217 youth have been trained in two different courses in tool room mechanicoperator and injection moulding machine operator. The total cost for both projects is Rs15 million. After completing 6 months residential training all 217 youth have been placedat different companies related to plastic engineering thus ensuring 100% placement.
Ekalavya Centre for Organic Agricultural Research and Training:
To realise the Hon'ble Prime Minister's goal of doubling farmers' income by 2022 andreduce the carbon footprint Ekalavya Foundation (Ekalavya Centre for Organic AgriculturalResearch and Training) formulated a project to promote organic farming through trainingand capacity building at Tandur and Vikarabad Mandal of Telengana. In order to implementthis project for setting up the training institute Ekalavya Foundation approached theCompany for financial support. The project will be immensely beneficial for increasing thescope of organic farming in the entire Telangana and other neighboring region. Thisproject will help the farmers and local youth to enhance their livelihood by impartingthem employment with enhancing vocation skills. The project is being implemented in one ofthe most backward mandal in the region inhabited by SCs and STs. It will benefit about3500 farmers 200 students and Consumers in general by way of promoting organic farming.Your Company has sanctioned an amount of Rs 47 million for undertaking this project.
Vivekananda Centre for Yoga Naturopathy and Research: Your Company has extendedfinancial support for setting up a state of the art Yoga Naturopathy and Research Centreat Jor Bagh Delhi. The project has been implemented by Vivekananda Yoga AnusandhanaSamsthana (VYASA) for which the Company has sanctioned an amount of Rs 60 million. Thecentre shall render services in preventive health care disease managementrehabilitation evaluation monitoring and research. People can also avail of clinicalspecialty services in stress and lifestyle pain women health children health mentalhealth hair and skin care etc.
Yoga Theme Garden Mumbai:
Your Company has provided financial support for development of India's first Yoga themePark at Bandra Reclamation Mumbai. This project is being implemented in partnership withRavindra Joshi Medical Foundation (RJMF) at a cost of Rs 8 million. The park has beenfeatured as India's first Yoga theme park. It has attractive lawn and vertical gardens.Seven yoga postures have been depicted in the park with visual lighting on vertical greenwall. 15 feet tall statue of Yoga Guru Patanjali in Padmasana posture has been installedin the park to motivate people. Besides all these park has several advance features likerain water harvesting system irrigation system LED lighting 20 indigenous native plantshave been used to withstand coastal weather. Around 500000 residents residing in thevicinity of the park will directly be benefited from this theme park.
S-VYASA Boys Hostel
Your Company has supported Vivekananda Yoga Anusandhana Samsthana' (VYASA) withfinancial support of Rs 120 million towards construction of a 350 bed boy's hostel atS-VYASA University campus located at Gidden Halli Jigani Hobli Bangalore. The hostelwill have all the latest facilities including solar lights solar heating systems CCTVlifts interior furniture electrical etc. Free accommodation will be provided to ST/SCand Tribal students of S-VYASA University whereas deserving poor students will be given50% concession.
Major Health Care Initiative: At a Glance:
Rs 1308 million worth of projects implemented towards Health Care Initiative.
Rs 3130 million Multi- Speciality Hospital project launched at SivasagarAssam.
541208 Nos. door step medical treatment provided through Mobile Medical Unit inFY'18.
Rs 1000 million sanctioned towards setting up of National Cancer Institute atNagpur.
Varisthajana Swasthya Sewa Abhiyan: Doorstep medical treatment for elderly women andchildren
This flagship CSR project implemented in partnership with HelpAge India has succeededin providing door step medical treatments to more than one lakh elderly citizen women andchildren through Medical Mobile Unit in remote villages in the operational areas of theCompany. The project was initially launched from 2010 to 2016 with 20 MMU's through whichmore than 1.58 million treatments were provided to the needy population. Based on theimpact assessment report of the first phase Your Company accorded approval for extensionof the project till 2019 along with engaging 11 new MMUs. As a result today 31 MMUs areproviding door step medical consultation treatments and medicines to lakhs of seniorcitizen women and children residing in remote corners of our country. The total amountsanctioned towards implementing this project from 2010 to 2019 is Rs 364 million. Thisproject has been successful in providing more than 2.5 million treatments.
National Cancer Institute Nagpur
The National Cancer Institute at Nagpur will be 455 bed quaternary care oncologycentre. The centre will provide comprehensive cancer treatment patient care and researchthrough sustainable charity. In addition to providing general cancer care the institutewill also create specialty groups of highly skilled professionals. The institute alsoplans to start a University recognized training courses for nurses paramedical staff andmedical fraternity including super specialty training in Oncology and PhD programs.
Your Company has extended support of Rs 1000 million for construction of first secondfloor and procurement of medical equipment for radio diagnostic facilities (like MRI Citiscan ultrasound mammography x-ray and bone marrow density meter etc.) for thehospital. The equipments have already been commissioned on the ground floor of thehospital and are already being used for investigations of patients. Primary beneficiariesof the project will be patients referred by NGOs local physicians in and around 500 kmradius of Nagpur. It is expected to benefit people from Vidharbha region of Maharashtraparts of Chhattisgarh Madhya Pradesh and Andhra Pradesh.
ONGC MRPL Lady Goschen Hospital Mangalore
The Lady Goschen Hospital established in 1849 at the heart of Mangalore City is theonly hospital in entire Konkon region which provides exclusive pre-natal and post natalcare. On an average 500 women are admitted and treated for pre/ post natal care everymonth. The 167 year old hospital building was in a dilapidated condition and due toincrease inflow of patient there was an urgent need for additional facilities. Districtadministration of Mangalore approached the Company for financial support to start a newwing in the hospital campus. Your Company extended financial support of Rs 128 milliontowards construction of new ONGC-MRPL Wing' for Government Lady Goschen HospitalMangalore. The new hospital building is scheduled to be commissioned in 2018.
Rural Development Projects At a glance:
Rs 223 million worth of rural development projects undertaken.
Undertaken infrastructure development work for two Model Village project UnderSansad Adarsh Gram Yojna at Yigi Kaum village in Arunachal Pradesh and Natun Jelomvillage in Assam.
Undertaken 67 different projects for strengthening rural roads near ONGCoperational areas.
8853 Solar street lights sanctioned in 2017-18 for lighting the roads of remotevillages across the country.
Model Village Development for Revival of Kor-bong Community at Tripura:
With only 120 surviving population the Korbong community of Tripura was on the vergeof extinction. To save this fast disappearing community Your Company partnered withTribal Engineer's Society to develop this village into self-sustained model. As part ofthis project permanent infrastructure was developed for community centre market shedtoilet blocks and irrigation facilities. Also livelihood opportunities was created forpiggery goatery fishery duck rearing etc. It was a holistic intervention for revivalof the Korbong community at a financial implication of Rs 6.5 million.
ONGC Solar Street Lights project:
Your Company has sanctioned 8853 solar street lights worth Rs 177 million for lightingremote villages of the country in the last one year. MNRE recognized partner are empaneledby the Company for installing the solar street lights as per the predefinedspecifications. These agencies also ensure maintenance of these street lights through AMC.
Development of Mangalajodi Odisa.
Chilika lake the largest brackish water lake and a unique bio-diversity of our countryattracts millions of migratory birds from across the globe. Mangalajodi a tiny villagelocated at the backwater of Chilika lake has been the host to these birds. Your Company isin the process of taking up a project with UNESCO to help declare Chilika lake as a WorldHeritage site. But prior to taking up the project with UNESCO the Company has taken up a360 degree approach to develop Mangalajodi village. Based on need assessment multiple CSRinterventions have been taken up which include open defecation free Initiative byconstructing 1300 Individual Household Latrine lightning the dark alleys of the villageby installing 200 Solar lights creating drinking and portable water facilities providing12 nos. of boats to the villagers for creating sustainable livelihood construction of 40nos. of school toilets and several livelihood generation and infrastructure developmentproject in the last one year. An amount of Rs 63 million has been sanctioned towardsundertaking these projects.
Northeast Vision 2030
In line with Hon'ble Prime Minister's vision for Northeast Ministry of Petroleum andNatural Gas has released the
Hydrocarbon Vision 2030 document for Northeast India in Feb' 2016. The vision documentinter alia focuses on the development of the region through CSR initiatives. Your Companyhaving operational presence in the northeast has rolled out major CSR projects in theregion. Since the release of the Vision 2030 document your Company has incurred anexpenditure of Rs 1522 million towards implementing CSR projects across northeast indifferent focus areas like Skill Development Health Care Education Swachh BharatEnvironment Bio-Diversity etc. Due importance is given by your Company towards creatingOpen Defecation Free Village under which more than 11165 IHHLs have been constructedacross 4 district of Assam at a cost of 134 million. In Arunachal Pradesh your Companyhas undertaken many rural Infrastructure development and Health Care projects in the lasttwo years amounting to Rs 78 million. As part of the holistic approach towards skilldevelopment Multi-Purpose Skill Development and Community centres are being set up atNatun Jelom and Halflong at a cost of Rs 13.7 million besides undertaking skilldevelopment training in computer education welding gas cutting video documentationfruit processing etc. A documentation centre to preserve the local art culture andheritage is being set up at Roing in Arunachal Pradesh in partnership with RIWATCH at acost of Rs 8 million. Hostels and school buildings worth more than Rs 50 million are beingconstructed for both boys and girls across different remote location of Assam ArunachalPradesh and Tripura. The "Yoganilayam" project being undertaken with Seva BhartiPurbanchal will be a hub for promotion of Yoga in northeast. This centre is being set upat Abhoypur in North Guwahati at a cost of Rs 26 million.
One of the major flagship Health Care initiative launched for the benefit of entirepopulation of Upper Assam is the Multi Speciality Hospital project at Sivasagar. This isbiggest ever CSR project being undertaken by the Company. After thoroughly analysing thealarming health care scenario of Assam the Company accorded approval for setting up a 362bed Multi-Specialty Hospital at Sivasagar to be implemented in three phases at anestimated cost of Rs 3161 million. The prime objective of the hospital is to providequality health care services to the people of Northeast at an affordable cost. The chargesfor treatment will be as low as 70% of the market price and further discount of 50% willbe provided to economically disadvantaged people. The project will be implemented in threephases of which an amount of Rs 991 million has already been sanctioned for the firstphase which is scheduled to be completed by July 2019. Some of the other projects beingimplemented by your Company in Northeast are:
B. Ed. College Nirjuli:
Your Company is supporting Vivekananda Kendra Vidyalayas Arunachal Pradesh Trust forsetting up a B Ed College at Nirjuli for training of teachers. The construction work is inprogress and classes have already started in a temporary building. An amount of Rs 59million has been sanctioned towards implementing this project. The construction of the BEd College is scheduled to be completed by end of 2018.
Green Hub Project: This is an unique initiative to train 20 youth of North Eastevery year in wild life videography and documentation. The main objective of the projectis to create a team of environment enthusiasts having expertise in conservation. In thelast three years 60 youth and women have been trained. The Centre was recently beenconferred with Manthan Awards in the category of Environment & Green Energy forleveraging the power of youth to conserve biodiversity through a digital platform. Anamount of Rs 6 million has been sanctioned towards implementing this project in the lastthree years.
Water Hyacinth project for rural women of Sivasagar:
Through this CSR initiative of ONGC 50 women of Sivasagar district have been trainedby NEDFi to develop product from water Hycainth. 20 of these women were further trained byexperts from National Institite of Design to make superior products as per the demand ofthe market. A facilitation centre has been set up at Nimajan in Sivasagar and a retailoutlet has been opened for selling the finished products. The women trained under thisprogram are currently imparting training to others. An amount of Rs 3.3 million has beensanactioned towards implementing this project.
ONGC Super 30:
Your Company has set up a ONGC Super 30 centre at Sivasagar to train 30 aspiringstudents every year to get admission in IITs and other premier engineering institutes ofour country. Total 85 students in three batches have already completed the training since2014 out of which 18 secured admission in institutes like IIT's and NIT's 54 gotadmission in other premier institutes and the remaining 13 students opted for othercourses. The fourth batch of 30 students are currently undergoing training at Sivasagar"ONGC Super 30 centre". The project is being undertaken in partnership with anNGO Centre for Social Leadership. An amount of Rs 28 million has been sanctioned towardsthis project since the last four years.
An unique initiative of addressing a grassroot level issue at Baramulla
Indian Army besides securing the international boarders and ensuring security for thecommon people of Jammu & Kashmir has been consistently working towards channelizingthe energy of the youth towards nation building. In order to support their initiative forempowering the local women and youth of Baramulla the Company funded skill developmentprograms of Chinar 9 Jawan Club of Indian Army.
As part of this initiative 120 Kashmiri women from Baramulla and neighbouring areashave been trained in Fashion Designing Cutting & Sewing at a cost of Rs 3.4 million.Further through another Skill development program 150 youth in 'Hospitality' and 150women in Retail Sales' have been imparted training at a cost of Rs 1.7 million. Outof the total 300 students trained in Hospitality and Retail Sales 201 (boys & girls)have already got placement in different industries. Some of them are placed in premierhotels like Taj and Maurya sheraton. These skill development trainings have been impartedthrough a NGO named REACHA. Prior to these initiatives in Jammu & Kashmir the Companytook the initiative to construct 100 IHHLs in the international border villages of BobiyaLadwal and Karol Bidho falling under Mahreen block of Kathua District in Jammu &Kashmir.
At Kalgai Village near Uri three houses of local residents were devastated whileneutralizing four terrorists by the Indian Army. As a result these families belonging toeconomically weaker section of the society became homeless overnight. Considering thetough situation under which these villagers were exposed to after devastation of theirhouse your Company extended financial support for rebuilding of these three housesthrough the Indian Army. The reconstruction of the three houses was completed in recordtime of five months. An amount of Rs 1.6 million was sanctioned towards implementing thisproject.
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 is placed at Annexure- C'.
32. Regulators or Courts order
During the Financial year 2017-18 there is no order or direction of any court ortribunal or regulator which either affects Company's status as a going concern or whichsignificantly affects Company's business operations.
33. 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 thepreparation of the annual accounts the applicable accounting standards have been followedand there is no material departures from the same; (ii) The Directors have selected suchaccounting policies and applied them consistently and made judgments and estimates thatare reasonable and prudent so as to give a true and fair view of the state of affairs ofthe Company as at March 31 2018 and of the profit of the Company for the year ended onthat date; (iii) The Directors have taken proper and sufficient care for the maintenanceof adequate accounting records in accordance with the provisions of the Companies Act2013 for safeguarding the assets of the Company and for preventing and detecting fraudand other irregularities; (iv) The Directors have prepared the annual accounts of theCompany on a going concern' basis; (v) The Directors have laid down internalfinancial controls which are being followed by the Company and that such internalfinancial controls are adequate and are operating effectively; and (vi) The Directors havedevised proper systems to ensure compliance with the provisions of all applicable laws andthat such systems are adequate and operating.
34. 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 SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015a report on Corporate Governance for the year ended March 31 2018 along with acertificate from the Company's Statutory Auditors confirming compliance of conditionsforms part of this report. Your Company has implemented the mandatory Guidelines ofDepartment of Public Enterprises (DPE) Government of India on Corporate Governance tothe maximum extent possible.
Your Company has formulated and uploaded the following policies/codes on its website inline with the Companies Act 2013 and the Listing Regulations: i. Code of Conduct forBoard Members and Senior Management Personnel; ii. Related Party Transactions (revisedw.e.f. 09.02.2018); iii. Material Subsidiary Policy; iv. The Code of Internal Proceduresand Conduct for prohibition of insider trading in dealing with the securities of ONGC; v.Policy on Materiality for Disclosure of events; vi. Corporate Policy on Preservation ofDocuments and their archiving; vii. Policy for Training of Directors; viii. DividendDistribution Policy; ix. Fraud Prevention Policy; x. CSR and Sustainability Policy; andxi. Risk Management Policy. In line with global practices your Company has made availableall information required by investors on the Company's corporate websitewww.ongcindia.com In line with the SEBI (Listing Obligations & DisclosureRequirements) Regulations 2015 your Company has also implemented other measures ofCorporate Governance (mandatory/ voluntary) which have been brought out in the CorporateGovernance Report and are as follows:
i. Whistle Blower Policy/ Vigil Mechanism: A total of 41 Protected Disclosurestill March 31 2018 have been processed through the Whistle Blower mechanism of yourCompany which was implemented from December 01 2009. The Policy ensures that a genuineWhistle Blower is granted due protection from any victimization. The Policy is applicableto all employees of the Company and has been uploaded on the intranet of the Company. Inaddition the Company has a full-fledged Vigilance Department which is headed by ChiefVigilance Officer (CVO) who holds the rank of a Functional Director of the Company. With aview to maintain independence the CVO reports to the Chief Vigilance Commissioner of theGovernment of India.
ii. Enterprise-wide Risk Management (ERM) framework: In line with the requirementsof SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 yourCompany has developed and rolled out a comprehensive Enterprise-wide Risk Management (ERM)Policy throughout the organization. The Audit & Ethics Committee periodically reviewsthe risk assessment and minimization process .
The Risk Management policy of your Company is as follows:
"ONGC shall identify the possible risks associated with its business and 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 SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015. Tilldate four meetings of the Committee have been held.
iii. Board and Committee Meetings: - Details of Board and Board Level CommitteeMeetings are placed under Corporate Governance Report which form part of this report.
iv. Meeting of Independent Directors: Three Meetings of Independent Directorswere held during FY'18.
v. 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.
35. St atutory Disclosures
Your Directors have made necessary disclosures as required under various provisions ofthe Act and the SEBI (Listing Obligations & Disclosure Requirements) Regulations2015.
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-D.
Particulars of Employees
Your Company being a Government Company the provisions of Section 197(12) of theCompanies Act 2013 and relevant Rules issued thereunder do not apply in view of theGazette notification dated 05.06.2015 issued by Government of India Ministry of CorporateAffairs. The terms and conditions of the appointment of Functional Directors are subjectto the applicable guidelines issued by the Department of Public Enterprises Government ofIndia. The salary and terms and conditions of the appointment of Company Secretary a KMPof the Company is in line with the parameters prescribed by the Government of India.
36. En ergy Conservation
The information required under section 134(3)(m) of the Companies Act 2013 read withthe Companies (Accounts) Rules 2014 is annexed as Annexure E'.
37. A udit and Ethics Committee
In compliance with Section 177(8) of the Companies Act 2013 the details 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. Dass Gupta & Associates New Delhi M/s. MKPS &Associates Mumbai M/s. Lodha & Co. Kolkata M/s. PKF Sridhar & Santhanam LLPChennai M/s. Khandelwal Jain & Co. Mumbai and M/s. K.C. Mehta & Co. VadodaraChartered Accountants were appointed as Joint Statutory Auditors for the financial year2017-18. The Statutory Auditors have been paid a total remuneration of Rs 36.55 million(previous year Rs 43.41 million) towards audit fees certification and other services. Theabove fees are inclusive of applicable service tax / GST but exclusive of re-imbursementof travelling and out of pocket expenses actually incurred.
39. Auditors' Report on the Accounts
The comments of Comptroller & Auditor General of India (C&AG) form part of thisReport and is attached Annexure F'. There is no qualification in the AuditorsReport on the Financial Statements of the Company.
40. Secretarial Audit
In terms of Section 204(1) of the Companies Act 2013 the Company has engaged M/s P PAgarwal & Co. Company Secretaries in whole-time practice as Secretarial Auditors forconducting Secretarial Compliance Audit for the financial year ended March 31 2018. Theirreport has been annexed to the Corporate Governance Report.
41. Cost Audit
Six firms of Cost Accountants were appointed as Cost Auditors for auditing the costrecords of your Company for the year ended March 31 2018 by the Board of Directors. TheCost Audit Report for the year 2016-17 has been filed under XBRL mode on September 112017 which was well within the due date of filing.
Further the required cost records as specified under the Companies Act 2013 areprepared and maintained by the Company.
Policy for Selection and appointment of Directors' and their remuneration.
Your Company being a Government Company the provisions of Section 134(3) (e) of theCompanies Act 2013 do not apply in view of the Gazette notification dated June 05 2015issued by Government of India Ministry of Corporate Affairs.
The provisions of Section 134(3) (p) of the Companies Act 2013 relating to evaluationof Board/ Directors do not apply to your Company since necessary exemptions are providedto all government companies. The Company being a Government Company the provisionsrelating to Performance Evaluation of Directors stand exempted. The proposal for similarexemption under the Listing Regulations is under the consideration of the SEBI.
Appointments / Cessation etc.
Since the 24th Annual General Meeting held on September 27 2017 Smt. Ganga Murthy andShri Sambit Patra were inducted as Independent Director(s) of the Company with effect fromSeptember 23 2017 and October 28 2017 respectively.
Shri Dinesh Kumar Sarraf Chairman & Managing Director superannuated from theservices of the Company on September 30 2017. The Board places on record its appreciationfor his contribution during his tenure. Shri Shashi Shanker has been appointed as theChairman & Managing Director of the Company w.e.f. October 01 2017 who was earlierappointed as Director (Technical & Field Services). Shri Adapa Krishnarao Srinivasanhas ceased to be the Director (Finance) and CFO of the Company due to superannuation onOctober 31 2017. The Board places on record its appreciation for his contribution duringhis tenure. Shri Subhash Kumar has been appointed as Director (Finance) and CFO of theCompany w.e.f January 31 2018.
Shri Tapas Kumar Sengupta Director (Offshore) has ceased to be the Director (Offshore)of the Company due to superannuation on December 31 2017. The Board places on record itsappreciation for his contribution during his tenure. Shri Rajesh Kakkar has beenappointed as the Director (Offshore) of the Company w.e.f. February 19 2018. Shri VedPrakash Mahawar has ceased to be the Director (Onshore) of the Company due tosuperannuation on February 28 2018. The Board places on record its appreciation for hiscontribution during his tenure. Sanjay Kumar Moitra has been appointed as the Director(Onshore) of the Company w.e.f. April 18 2018. Shri Desh Deepak Misra has ceased to beDirector (HR) of the Company due to superannuation on June 30. 2018. The Board places onrecord its appreciation for his contribution during his tenure.
The strength of the Board of Directors of the Company as on March 31 2018 was 16comprising 5 Executive Directors (Functional Directors including CMD) and 11 Non-ExecutiveDirectors including two Government nominees and Nine Independent Directors. Though therewere two vacancies for two Executive Directors the composition of the Board complied withthe requirements under the provisions of Companies Act 2013 as well as of ListingRegulations 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 Cost Auditors and Comptroller & AuditorGeneral of India and are grateful for their continued support and cooperation. YourDirectors thank all share-owners business partners and all members of the ONGC Family fortheir faith trust and confidence reposed in the Board. Your Directors wish to place onrecord their sincere appreciation for the unstinting efforts and dedicated contributionsput in by the ONGCians at all levels to ensure that the Company continues to grow andexcel.
| ||On behalf of the Board of Directors |
| ||Sd/- |
|New Delhi ||(Shashi Shanker) |
|02.08.2018 ||Chairman and Managing Director |