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Oil & Natural Gas Corpn Ltd.

BSE: 500312 Sector: Oil & Gas
NSE: ONGC ISIN Code: INE213A01029
BSE 00:00 | 30 Sep 126.85 0.25






NSE 00:00 | 30 Sep 126.80 0.15






OPEN 126.50
VOLUME 1446054
52-Week high 194.60
52-Week low 119.80
P/E 3.12
Mkt Cap.(Rs cr) 159,581
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 126.50
CLOSE 126.60
VOLUME 1446054
52-Week high 194.60
52-Week low 119.80
P/E 3.12
Mkt Cap.(Rs cr) 159,581
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Oil & Natural Gas Corpn Ltd. (ONGC) - Director Report

Company director report

Dear Shareholders

On behalf of the Board of Directors of your Company it is my pleasure to present the29th Annual Report of Oil And Natural Gas Corporation Limited (ONGC/ the Company) and itsAudited Financial Statements for the year ended March 31 2022 (FY'22) together with theAuditors' Report and Comments on the Financial Statements by the Comptroller and AuditorGeneral (CAG) of India. As the global economy recovers from the stress of COVID-19pandemic supply chain disruptions extreme weather events energy supply crunch and geopolitical upheavels have caused turbulence in energy sector. With global demand reboundingand outpacing supply energy prices have increased substantially from the last yearslevel. Years of inadequate financial returns coupled with low commodity prices and surgein net zero aspirations have depressed investments in fossil fuels. The whittled downspare capacity has contributed to the present demand supply mismatch and the same is notexpected to moderate in 2022.

Your Company on its part has been maintaining the pace of capital spending andproject execution sustaining its production optimizing operating costs to improve thevalue proposition for all stakeholders while looking for cleaner ways of doing itsbusiness. Your Company along with its group companies has registered yet another year ofrobust performance and made substantial progress on most of the priority areas.

Despite the challenges faced by the Company during the second wave of pandemic and theconsequent logistic constraints your Company's standalone production during the year was40.453 Million Metric Tonnes of oil and oil equivalent gas (MMTOE) (against FY'21production of 42.369 MMTOE ).

• Crude oil production including share of JV production was 21.707 MillionMetric Tonnes (MMT) during FY'22 against 22.533 MMT during the previous year.

• Natural gas production including share of JV production was at 21.680 BillionCubic Metres (BCM) against 22.816 BCM during FY'21.

• Value Added Products (VAP) production during FY'22 was 3.089 MMT against 3.120MMT during FY'21.

Backed by an intensive and continuous exploration programme your Company declared fouroil and gas discoveries (two on-land and two offshore) during FY'22. During FY'22accretion of In-place volume and EUR (Estimated Ultimate Reserves) in 2P category fromONGC operated areas in India has been 90.50 MMTOE and 40.82 MMTOE respectively. ReserveReplacement Ratio (RRR – 2P EUR) from domestic fields was 1.01 with respect to 2Preserves. Your Company has maintained Reserve Replacement Ratio (2P) of more than 1 forthe 16th consecutive year.

Your Company has four direct subsidiaries namely ONGC Videsh Limited (OVL) MangaloreRefinery and Petrochemicals Limited (MRPL) Hindustan Petroleum Corporation Limited (HPCL)and Petronet MHB Limited (PMHBL). Your Company also has nine Associates/ Joint Venturesnamely ONGC Petro additions Limited (OPaL) ONGC Tripura Power Company Limited (OTPC)ONGC TERI Biotech Limited (OTBL) Dahej SEZ Limited (DSL) Mangalore SEZ Limited (MSEZL)Indradhanush Gas Grid Limited (IGGL) Pawan Hans Limited (PHL) Petronet LNG Limited (PLL)and Rohini Heliport Limited (RHL).

1. Major Highlights: FY'22

The major highlights during FY'22 are:

i. Revenue from operations in FY'22 stood at `1103454 million against Rs 681411million in FY'21.

ii. Net profit in FY'22 was `403057 million against `112464 million during FY'21mainly due to higher realisation on Crude Oil Natural Gas and VAPs.

iii. Exploratory well Hatta#3 in Son valley sector of Madhya Pradesh producedgas@62044 m3/day on testing and confirmed commercial production potential of VindhyanBasin. With development and production this would be the ninth producing Basin of India. iv.Production of Cluster-7 & 8 fields of Mumbai High Asset increased from 5700 bopd on 1April 2021 to 16800 bopd on 28 January 2022.

v. Production commenced from the second deep-water gas well U1B the deepest wellof the Cluster- II KG-DWN 98/2 on 28 August 2021 with initial production of ~ 0.65MMSCMD.

vi. Cambay Asset achieved the highest ever production level of 763 TPD on 9 and 30March 2022. It also achived highest ever annual oil production of 0.241 MMT during FY'22.

vii. Cauvery Asset achieved the highest gas production of 33.1 LCMD after a span of3 years on 1 October 2021 with the peak production of 15.9 LCMD of gas from Kanjirungudifield.

viii. Assam Asset scaled up oil production in Lakhmani Area (consisting ofLakhmani Laiplingaon Kuargaon and Demulgaon Field) to the level of 550 TPD a productionmilestone achieved after a long gap of 14 years.

ix. Institute of Engineering and Ocean Technology received a patent on"Process of Preparation of corrosion inhibited completion fluids for Oil and GasWells" on 7 April 2021.

x. Regional Geoscience Laboratory Vadodara received a national patent forFormulation of Viscosity Reducer and Flow Improver for Asphaltic and Waxy Crude OilEmulsions.

xi. Gas Hydrate Research & Technology Centre ONGC Panvel signed an agreementwith IOC R&D Centre for synthesis and evaluation of suitably functionalizednano-materials for use as Kinetic Inhibitors for Gas Hydrates.

xii. ONGC eases business procedures and committed procurement worth `300000million In support of ‘Aatmanirbhar Bharat' initiative during FY'22.

xiii. First exploratory well in OALP Block CB-ONHP-2018/2 awarded under new HELPregime drilled for exploring the deeper new Mesozoic play from Cambay basin. Two appraisalwells in DSF-II contract areas of RJ/ONDSF/ Chinnewala /2018 & MB/OSDSF/ CA/2018 werealso drilled during the year.

xiv. Launching of an online platform to digitalize trading for Integrated TradingDesk of group companies on 1 October 2021.

xv. MoU with Saudi Aramco on 18 November 2021 during Dubai Expo 2020 forcollaboration and cooperation in energy-related areas.

xvi. MoU with Solar Energy Corporation of India (SECI) to develop renewableenergy-based power ESG (Environment Social and Governance) projects for achievinggreen energy objectives on 2 December 2021 in New Delhi.

xvii. ONGC started e-auctioning for domestic Gas on 12 April 2021.

xviii. ONGC obtained Proprietary membership for trading of natural gas at IndianGas Exchange (IGX) on 26 March 2022.

xix. Contract signed for largest pipeline replacement project PRP-VII at a projectcost of USD 490.54 MM on 9 March 2022.

xx. Spent `5316 million on Research & Development activities and another`3001 million on various innovative initiatives during FY'22 that included technologiesand processes like Low Salinity Water Injection Managed Pressure Drilling Casing WhileDrilling Micro Bubble Technology Auto Driller Micro Tubines LED lighting Dual gasBlending Plunger Lift in Gas Wells Hydraulic SRPs and large scale real-time monitoringof wells on SRPs and PCPs etc. These initiatives resulted in improved operationalefficiencies and cost optimization for your Company.

2. Global Recognitions

Your Company has been recognised at various national and international forums list ofAwards and Accolades is annexed as

Annexure – A.

3. Details of discoveries

During the year your Company has notified four new discoveries in acreages operated byit.

Details of exploratory efforts made by your Company were as under:

Sr. No Basin/Block Discovery well Acreage Discovery Type Hydrocarbon Type
1 KG Onland South Velpuru-2 PML Godavari Prospect Oil
2 KG Onland Gopavaram Deep-1 (GMD-AA) PML Sirikattapalli -Pasarlapudi 24-Gopavaram Pool Gas
3 Mumbai Offshore (SW) VGN-1 (VGN-A) PML Ratna Prospect Oil & Gas
4 Mumbai Offshore (SW) SD-4-4 (SD-4-D) PML C Series in Daman Tapti area Prospect Oil & Gas

• Exploratory well Hatta-3 in Son valley sector of Madhya Pradesh produced gas@62044 m3/day on testing and confirmed the potential of commercial production of VindhyanBasin.

• A total of 1803.86 LKM of 2D seismic data and 3962.99 SKM of 3D seismic data wasacquired. Out of this quantum a total of 1504.66 LKM 2D and 2265.57 SKM of 3D seismicdata was acquired in OALP blocks.

• Testing results from well South Velpuru-2 (SVL-2) proved presence of commercialoil in Tirupati play for the first time and gave a impetus for further exploration of thecorridor with focus on Tirupati play.

• Oil reserve below L-I reservoir in MH North field enhanced In-place volume ofoil by 20.86 MMT.

4. Reserve Accretion and Reserve Position

Accretion of in-place hydrocarbons and EUR by ONGC in its operated areas and inNon-Operated (JV Share) during FY'22 along with position of in-place hydrocarbons and EURestablished as on 01.04.2022 is as follows:

In-Place Hydrocarbon volumes and Estimated Ultimate Recovery
Accretion during the year 2021-22 Position as on 01.04.2022
Domestic (Operated) JV-Domestic (ONGC Share) Total Domestic (Operated) JV-Domestic (ONGC Share) Total
In-place 3P 89.03 0.60 89.63 9334.45 698.51 10032.96
Hydrocarbon 2P 90.50 0.60 91.10 8326.77 675.21 9001.98
3P 36.70 0.83 37.53 3310.86 92.87 3403.73
2P 40.82 0.83 41.65 3096.56 92.36 3188.92
Position of Reserves and Contingent Resources as on 01.04.2022
As per PRMS Category Company Operated JV Operated Total
2P 710.19 16.42 726.61
3P 754.04 16.93 770.97
2C 460.01 - 460.01
Contingent Resources
3C 630.46 - 630.46

5. Award of Blocks

During FY 2021-22 your Company participated in the OALP rounds VI & VII andemerged as the highest bidder winning an acreage measuring 34097 Sq. Km. in OALP Round VIagainst the total offered area of 35346 Sq. Km. ONGC emerged as sole bidder in 3blocks in OALP-VII and is expecting an addition of more than 9300 Sq. Km. Currently allthe awarded OALP blocks are in exploratory phase. As on 1 April 2022 a total 3047.66 LKMof 2D seismic data and 8965.05 SKM of 3D seismic data has been acquired and oneexploratory well drilled in OALP Blocks.

6. EOR Proposals

Your Company has been consistently expanding its EOR portfolio.

Under the Enhanced Recovery (ER) policy 211 fields of ONGC located in onshore andoffshore areas were considered for screening 33 ER proposals were submitted and approvalsfor 17 have already been received.

ONGC for the first time executed a Pilot polymer flood project in heavy oil field ofMehsana. The Pilot was completed on 15 September 2020 and was successful in achieving allits objectives. The incremental gain is 5057 m3 in 13 Months against FR envisaged 4960m3. The closure report was approved by DGH on 8 November 2021.

7. Monetization of Discoveries

Out of four new discoveries made during the financial year two on-land discoveriesviz. South Velpuru-2 and Gopavaram Deep-1 (GMD-AA) were monetized. Besides four (4) otherdiscoveries of previous years i.e. B-59-1 WO-24-3 D-30/ D-30-2 (D-30-A) and GS-71-2 werealso monetized.

8. Major Projects Completed

During the FY'22 following two major projects (1 Development & 1 Infrastructure)with an investment of around Rs 38071.13 million were completed:

Sl. No Project Name Completion Date Actual Cost ( ` million) Oil gain (MMT) Gas Gain (BCM)
1 Ratna R Series 31.05.2021 35270.54 7.07 0.97
2 Geleki Pipeline 30.11.2021 2800.59 NA NA
Total 38071.13 7.07 0.97

9. Drilling of Wells

Your Company drilled 434 wells during FY'22 against 480 wells during FY'21. 78 of thesewells were exploratory wells while the balance 356 wells were development wells includingside-track wells. Second wave of Covid pandemic Cyclones Tauktae & Yaas and LAQissues in CBM and Karaikal impacted the drilling activities of your Company. The majorhighlights of Drilling operations during the year were:

• Drilling Rig IPS-M700-II of Ahmedabad Asset created a new milestone andcompleted well #AMLO(TD-1622m) with a commercial speed of 8224 M/RM highest ever by anydrilling rig of ONGC since inception.

• Implemented Casing While Drilling (CWD) successfully in five wells of Mumbai tomitigate the issues of drilling for 20" casing after 30" conductor piling.

• Tested two Ultra Deep wells in water depth of more than 2800m - #UD-AF(Qgas-765625 m3/d thru 26/64" choke) & #UD-AG (Qgas-742634 m3/d thru28/64" choke) in Cluster-III of KG-DWN-98/2 Block in East Coast.

• Completions of two gas wells #U-1-B (WD 1407m) & #U-1-A-Shift (WD 1250m).Production from #U-1-B commenced from 27 Aug 2021.

10. Oil Gas & VAP Production

Product wise details of Production Sales and Value during FY'22 with comparison ofFY'21 are as under:

Description Unit Production Qty Sales Qty Value ( Rs in million)
FY'22 FY'21 FY'22 FY'21 FY'22 FY'21
Crude Oil (MMT) 21.71 22.53 20.29 20.71 836612 479338
Natural Gas (BCM) 21.68 22.82 16.75 17.69 124414 114216
Value Added Products (VAP)
Liquefied 000 MT 882 1014 883 1011 46752 31973
Petroleum Gas
Naphtha 000 MT 932 941 964 915 50640 26081
Ethane- 000 MT 315 242 315 241 9078 4963
Ethane 000 MT 499 483 500 483 10815 9741
Propane 000 MT 199 187 197 183 10637 6051
Butane 000 MT 116 97 116 97 6185 3207
Superior Kerosene Oil & MTO 000 MT 23 36 23 36 1086 934
Others* 000 MT 123 120 62 62 3404 2405
Sub Total (VAP) 000 MT 3089 3120 3060 3028 138597 85355
Total 1099623 678909

*Others include ATF Sulphur-P Sulphur-C LSHS HSD 11. Production from OverseasAssets - ONGC Videsh Ltd

11. Production from overseas assets - ONGC Videsh Limited

Your Company's overseas operations are carried out exclusively through its wholly ownedsubsidiary ONGC Videsh Limited (OVL) which in turn conducts its operations eitherdirectly or through its subsidiaries. Production from overseas assets during FY'22 was12.330 MMTOE in comparison to 13.039 MMTOE achieved during FY'21; a decrease of approx.5.4%. The oil production during FY'22 was 8.099 MMT; 4.8% less compared to the productionof 8.510 MMT during FY'21. The gas production of 4.231 BCM during the year was 6.6% lesscompared to FY'21 production of 4.529 BCM..

12. Other Exploration Initiatives/Activities

a) National Seismic Programme (NSP):

To accomplish its mandate of 2D seismic data Acquisition Processing &Interpretation (API) in un-appraised areas of Indian sedimentary basins grouped in 11on-land sectors your Company completed data acquisition of 41714.37 LKM and dataprocessing and interpretation of 41745.7 LKM. The program has been completed and all APIdeliverables have been submitted to NDR DGH. This data in turn would contribute inaugmenting domestic production of oil and gas. b) Basement Exploration:

As a part of concerted excploration efforts for Basement Play a total of 12 wells weredrilled which included 3 wells (BH-80 SD-15 & HR-1) in Mumbai Offshore 2 wells(Charali-53 & Borhola-67) in Assam Shelf and 7 wells (Padra-150 Padra-152 Padra-155Padra-158 Padra-161 Padra-163 and CBONH182A-1) in WON Basin.

Out of these five wells (Padra-152 Padra-158 Padra-161 BH- 80 HR-1) proved oilbearing and one well (SD-15) proved gas bearing. In addition six wells drilled duringFY'21 (2 in WON Basin 4 in Mumbai Offshore) were tested during the year. Out of thesewell Padra-146 (WON Basin) proved to be oil bearing in Basement section (Trap) and HCindications were observed in wells BH-81 & BH-82 (Mumbai Offshore) in Basementsection.

HP-HT Exploration:

High pressure- High Temperature (HP-HT) and Tight reservoirs have been an explorationand development challenge for your Company.

Your Company is striving hard in the field of HP-HT due to bore hole complicationsfluid design high-cost drilling technology including HP-HT cementing well constructionand other reservoir engineering issues. In ONGC operated areas HP-HT regime isencountered in areas like Periyakudi Bhuvanagiri in Cauvery Onland KottalankaNagyalanka Bantumilli South and Malleswaram in KG Onland. Yanam in KG Shallow offshoreG-4-6 D-33 and GS-OSN-2004/1 in Western Offshore were also classified as HP-HTreservoirs.

Additionally high pressure regime is often encountered in certain areas of AssamArakan Fold Belt.

During recent campaign of high-tonnage hydro-fracturing (HF) in Malleswaram fieldsignificant gain in oil production could be achieved.

13. Exploration and Production from Unconventional Sources

a) Coal Bed Methane (CBM):

Of the 9 original blocks that the Company was awarded as part of the CBM bidding roundsincluding nomination your Company relinquished 5 blocks on the basis of data generatedfrom exploratory efforts and has been operating 4 blocks (Jharia Bokaro and NorthKaranpura in Jharkhand and Raniganj in West Bengal) where exploration activities have beencompleted. Developmental activities are at an advanced stage in three of these blocks viz.Bokaro Jharia and North Karanpura.

b) Gas Hydrate Exploration Program

Your Company has been an active contributor on gas hydrates exploratory research underNational Gas Hydrate Program (NGHP) of Govt. of India. ONGC as a Consortium Member ofNational Gas Hydrate Program of GoI has played a significant role in G&G studies forthe identification of sites for NGHP-01 and NGHP R&D Expedition-02. Based on theresults of NGHP-02 and subsequent studies and review by international experts KG-DWN-98/5has been found suitable for pilot production test. Various studies like sand controlmeasures well design reservoir and production simulation modelling as prerequisite forthe pilot production have been completed. Your Company would undertake pilot productiontest in deep waters for gas hydrate.

ONGC had signed an MoU with initial validity of five years on 02.03.2021 with SkolkovoInstitute of Science and Technology (Skoltech) Moscow for Collaborative Studies toestablish cooperation in the Gas Hydrate Research & Technology applicable to IndianBasins. ONGC has also signed an MOU with IOC R&D for development of nanoparticles askinetic inhibitors in the dissociation of gas from gas hydrates under reservoirconditions.

14. Drilling Services

There has been continuous induction of new technologies in Drilling Services. Some ofthese new technologies which are now being used extensively are:

a) Managed Pressure Drilling (MPD): MPD used to precisely control the annularpressure profile throughout the wellbore was inducted first time in ONGC at Tripura Assetfor mitigation of down-hole complications. Two more wells ROAH_Sub ADAT were successfullycompleted with this technology during FY'22.

b) Casing While Drilling: In view of 30" conductor piling issues and furtherdrilling for 20" casing implemented Casing While Drilling (CWD) in five wells ofMumbai.

c) Auto-Driller: Automatic bit feeding system (eWildcat TM 2.0) implementated in 5drilling rigs (Type-II & above rigs of ONGC) to enhance the drilling efficiency.

d) Introduction of Micro Bubble technology: Eco-friendly Micro Bubble technologydeveloped by IDT is used to drill reservoirs with low pressure (4.5-6.0 ppg). Same hasbeen used in wells of Assam Cambay and Mumbai.Since this technology is indigenous andfound to be cost effective it is planned to be used extensively in sub-hydrostaticreservoirs.

e) Introduction of System LCM: For controlling of mud losses in Reservoir andNon-reservoir sections "System LCM" Drillezy and Fracseal were introduced onpilot scale to drill loss prone zone. Based on the success Fracseal is being used todrill non reservoir loss prone zone as a preventive measure. Barablend LCM pill was usedto successfully remediate Activity/Lost circulation problem and enabled testing of thebasement formation Western Offshore Basin.

Your Company is also implementing technologies like Liner While Drilling AxialOscillation Tool for friction reduction & improved axial force transfer in drillstring SoftSpeed-II and E-Drilling predictive analysis.

15. Infrastructure Up-gradation:

Your Company is in the process of up-gradation of existing resources withState-of–Art equipment to remain competitive in the global E&P business. It hasalready taken actions to refurbish upgrade and replace its Onshore/Offshore drillingrigs Workover rigs Cementing units Crisis Management equipment in phases.

Major Infrastructure Up-gradations during the year were as under:

• 38 new Well Stimulation units inducted thereby enhancing the Frac Setups atRajahmundry Assam and Ahmedabad.

• Twenty seven (27) drilling rigs are being replaced by new generation hi-techrigs in phased manner. Three new generation hi-tech drilling were commissioned during2021-22 while 4th rig was commissioned in April 2022. Further six new generation rigs areunder different stages of commissioning.

• 4 Rigs out of 20 Automated Hydraulic Workover rigs are under various stages ofcommissioning at Mehsana Ahmedabad Assam and Ankleshwar.

• Acquisition of new 24 Well Stimulation units for onshore (16 Replacement and 8new) in progress.

• 9 cementing units and 9 batch-mixtures replaced till 31st March 2022. Further24 cementing units are under procurement.

16. Information Technology

Your Company has carried out several Business Process improvements in the fieldof IT inFY'22. Major Process improvements were as follows: Vendor Invoice Management (VIM):End-to-end invoice processing system including capturing/extracting the information fromhardcopies/ softcopies of Invoices using OCR technology with minimal manual intervention.Governance Risk & Compliance (GRC): GRC module is implemented with complete RM modulewith fresh identification of Risks Risk Analysis and Risk Response-Planning &monitoring. Enterprise-wide SCADA System implemented in ONGC covering productioninstallations and drilling rigs. Following two upgrades are being implemented with latesthardware and software with enhanced cyber security features: Production SCADA upgradecovering all onshore & offshore installations and is near completion Real Time DataMonitoring and Management (RTDMM) system for onshore drilling rigs on subscription basis.The new system will enable Real time data acquisition aggregation and transmission fromvarious production installations and drilling rigs to central location Delhi and DisasterRecovery Centre Vadodara for visualization through webservices. The system has wellcontrol feature also for offshore wellhead platforms. Solution implemented in 46 rigs of48 rigs notified.

OSI-PI Historian is also established which will enable various advanced analyticaltools to access historical and real time data thereby ensuring safe operation of theseinstallations.

Block chain solution implemented to streamline contract management for Gas Sales. Thissolution has enabled monitoring the Gas Supply Agreements in real-time with an automatedagreement management turn-key system covering all existing 130 contracts with provisionfor integrating future contracts. This has resulted in increased transparency and mutualtrust amongst all stakeholders. Digital transformation journey has been accelerated withthe identification of 68 digital initiatives. In the initial phase 6 initiatives arebeing taken up for implementation. Digital Centre of Excellence has been setup which willact as the change catalyst for the digital journey of your company on a long-term basis.Simultaneously your company has taken a head-start with implementation of AI/ ML basedCommon Analytics platform which provides predictive and perspective cross domainanalytics across various data sources in ONGC.

17. Information Security:

In order to strengthen the information security system your Company has implementedfollowing systems during FY'22:

• Enterprisewide Access Control System (EACS) for strengthening physical securitycovering 324 sites spread across the country.

• Information Security Operations Center (ISOC) for securing the digitalinfrastructure.

18. Financial Highlights:

Your Company earned Profit After Tax (PAT) of Rs 403057 Million up by 258.39% overFY'21 (`112464 Million) and registered Revenue from Operations of `1103454 Million upby 61.94% over FY'21 (`681411 Million).

Highlights – Standalone Financial Statements
• Revenue from Operations : Rs 1103454 Million
• Profit After Tax : Rs 403057 Million
• Contribution to Exchequer : Rs 493316 Million
• Return on Capital Employed : 29.01%
• Debt-Equity Ratio : 0.03:1
• Earnings/ Share : Rs 32.04
• Book Value/ Share : Rs 189
Particulars Rs in Million
2021-22 2020-21
Revenue from operations 1103454 681411
Other Income 65156 71425
Total Revenue 1168610 752836
Profit Before Interest 609456 335697
Depreciation & Tax (PBIDT)
Profit Before Tax (PBT) 410400 164028
Profit After Tax 403057 112464
Transfer to General 288576 75400

19. Change in Share Capital:

During the year under review there is no change in capital structure of the Company.

20. Dividend

Your Company has paid interim dividend of `5.50 per share of `5 each (@110%) inNovember 2021 amounting to `69192 million and `1.75 per share of `5 each (@35%) inFebruary 2022 amounting to `22015 million. The Board of Directors has recommended finaldividend of Rs 3.25 per share of `5 each (@65%) amounting to `40886 million subject toapproval of shareholders. The total dividend pay-out for FY'22 would be Rs 132093 millionwith pay out ratio of 32.77%. The revised Dividend Distribution policy may be accessed atthe web link: investors/policies.

Revision in the said policy was made considering that ONGC is currently having only oneclass of equity shares as also to provide more flexibility to the Board w.r.t. decisionsregarding declaration of dividend.

21. Financial Accounting and Secretarial Standards

The Financial Statements of the Company for FY'22 have been prepared in compliance withthe applicable provisions of the Companies Act 2013 including Indian Accounting Standards(Ind AS) and Guidance Note on Accounting for Oil and Gas Producing Activities issued bythe Institute of Chartered Accountants of India.

Secretarial Standards:

The Company has complied with the applicable Secretarial Standards issued by theInstitute of Company Secretaries of India.

22. L oans 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 investments made or guarantee or security givenby the Company to subsidiaries and associates were not reported.

23. Deposits:

Your Company has not accepted any deposit during the year. Further there was nooutstanding deposit and/or unpaid or unclaimed principal amount or interest against anydeposit either at the beginning or at the end of FY'22.

24. Credit Rating of Securities:

Details of the Credit Ratings of Debt Securities of the Company as on 31 March 2022:

Sl. No. Particulars Details
1 Name of Debt Security International Bonds (Senior unsecured notes) issued by the Company and subsidiaries which are guaranteed by the company International Bonds (Senior unsecured notes) issued by the Company and subsidiaries which are guaranteed by the company International Bonds (Senior unsecured notes) issued by the Company and subsidiaries which are guaranteed by the company Commercial Paper up to Rs 10000 Crore outstanding at any point of time Non- Convertible Debenture upto Rs 5000 Crore Non- Convertible Debenture upto Rs 7500 Crore
2 Credit Rating obtained Rating : Baa3 (Stable) [Including for Issuer Rating] BBB- (Stable) [Including for Issuer Rating] BBB- (Negative)* [Including for Issuer Rating] [ICRA]A1+ CARE A1+ [ICRA] AAA (Stable) IND AAA (Stable) [ICRA] AAA (Stable) CARE AAA (Stable)
3 Name of the credit rating agency Moody's Investors Service S&P Global Ratings Fitch Ratings ICRA Limited (ICRA) CARE Ratings Limited (CARE) ICRA Limited (ICRA) India Rating and Research Private Limited(IRRPL) ICRA Limited (ICRA) CARE Ratings Limited (CARE)
4 Date on which the credit rating was obtained February 2005 and annual surveillance thereon every year. November 2012 and annual surveillance thereon every year. July 2021 ICRA: 18.06.2018 and periodical surveillance and revalidation from time to time. CARE: 25.06.2018 and periodical surveillance and revalidation from time to time. ICRA : 17.07.2020 and periodical surveillance and revalidation from time to time. IRRPL: 3.07.2020 and periodical surveillance and revalidation from time to time. ICRA: 07.09.2021 and periodical surveillance and revalidation from time to time. CARE: 29.07.2021 and periodical surveillance and revalidation from time to time.
5 Revision in the credit rating No change in rating however rating outlook was upgraded to Stable from Negative on 6th October 2021 Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
6 Reasons provided by the rating agency for a downward revision if any Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable

* Fitch Ratings vide Press release issued on 14 June 2022 has revised ONGC's ratingoutlook to Stable from Negative. The rating action follows the revision of India'ssovereign rating outlook to Stable from Negative on 10 June 2022.

25.Investor Education and Protection Fund (IEPF)

Details of transfer of unclaimed dividends and eligible shares to IEPF have been placedin the Corporate Governance Report which forms part of the Annual Report.

26. Related Party Transaction

Particulars of contracts or arrangements with related parties as referred to in Section188 of the Companies Act 2013 provided in specified form AOC-2 is enclosed as Annexure- B.

27. Subsidiaries:

A. ONGC Videsh Limited

ONGC Videsh Ltd the wholly-owned subsidiary of your Company for carrying on E&Pactivities outside India had participation as on 1 April 2022 in 35 oil and gas projectsin 15 countries. viz. - Azerbaijan (2 projects) Bangladesh (2 Projects) Brazil (2projects) Colombia (7 projects) Iran (1 project) Iraq (1 project) Libya (1 project)Mozambique (1 Project) Myanmar (6 projects) Russia (3 projects) South Sudan (2projects) Syria (2 projects) UAE (1 project) Venezuela (2 projects) and Vietnam (2projects). ONGC Videsh portfolio comprised of 14 producing 4 discovered/ underdevelopment 14 exploration and 3 pipeline projects. ONGC Videsh was Operator in 12projects Joint Operator in 6 projects and non-operator in the remaining 17 projects. ONGCVidesh share in production of oil and oil equivalent gas (O+OEG) is provided under theheading ‘Production from Overseas Assets by ONGC Videsh' in para 11 above.

Gross consolidated revenue of ONGC Videsh for FY'22 was `173220 million (against`119558 million during FY'21) and the PAT registered was `15892 million during FY'22 asagainst `18910 million during FY'21. The decrease in profit is mainly on account ofhigher impairment.

Significant events in the area of Exploration & Operations:

a. CPO-5 Block:

Development wells Indico-4 & Indico-5 drilled in January and March 2022respectively and both wells are now producing. Thus a total of 11 exploratory wells havebeen drilled with 5 wells commercially producing hydrocarbons. CPO-5 block ended the yearwith a production of 21000 bopd making it a significant exploratory success for ONGCVidesh . DOC (Declaration of commerciality) for Indico Field submitted to ANH on 19 August2021 & Field Development Plan on 18 November 2021.

b. Lower Zakum Concession:

To achieve production of 450 KBD by 2025 and 500 KBD by 2028 execution of 34" NewMain Gas Line (NMGL) project to accommodate excess gas beyond capacity of existing18" Main Gas Line has been taken up. The line is expected to be ready by end of 2023.

c. ACG Azerbaijan:

ACG achieved milestone of 4 billionth barrel of oil production on 18 September2021. Chirag Gas Lift Project under Chirag Turnaround completed on 23 December 2021 in 23days and put on full production 2 days ahead of the Schedule.

d. GPOC/SPOC South Sudan:

After a prolonged shutdown since December 2013 First Oil achieved from SPOC on 30 May2021. Export to Port Sudan and blending into Nile Blend started on 24 July 2021.

e. BM-SEAL-4 Brazil:

BM SEAL-4 Project Development timeline which was earlier postponed by 03 years has beenadvanced by about 02 years bringing the first oil from June 2029 to March 2027. The DoC ofBM-SEAL-4 block was submitted to the regulator (ANP) on 30 December 2021.

f. MECL Colombia:

Nare contract Association has expired on 4 November 2021.

g. Imperial Energy Russia:

Start-up of Associated Petroleum Gas (APG) utilization Plant Snezhnoye Field: In syncwith APG Plant start-up in March 2021 opening of closed high Gas-Oil Ratio( GOR) wells ofSnezhnoye field led to increase in oil production by about 1000 bopd. Booster Compressorwas integrated with APG Plant in June 2021.

h. Rovuma Area-1:

Due to the insurgency activities that took place near the project site since 24 March2021 onwards operator on 22 April 2021 declared Force Majeure (FM) under Joint OperatingAgreement. Subsequently Area 1 consortium declared FM under Exploration ProductionConcession Contract on 11 May 2021. Further Area 1 Project also declared FM under otherkey agreements viz. Area 4 Interface agreements EPC and EPCI contracts LNG Sale PurchaseAgreements (SPAs) Marine Concessions Assignments of Exploitation agreements etc.

• The Project site is currently in Preservation mode with no Project personnelpermanently allowed on site. Counter insurgency operations by Southern African DevelopmentCommunity forces and Rwandan Security Forces were in progress in coordination with HostGovt Security Forces.

• Operator in December 2021 concluded discussions with EPC & EPCI contractorsand agreed on project stoppage and storage costs. Operator indicated confidence to restartthe project in H2 of CY 2022.

i. Myanmar A1 & A3:

Mahar Appraisal & Exploration program: Discovery in Mahar prospect under newexploration program in Block A-3 has added GIIP 1056 BCF (2C). Currently Reserveestimation of Mahar is in progress. The first gas from Mahar is planned in 2027.

j. Vietnam Block 06.1:

PSC Extension: PSC is expiring on 18 May 2023. Foreign partners are in negotiation withthe regulator/Govt. of Vietnam to extend the PSC for further 16 years to exploit clasticreserves.

k. Bangladesh Blocks:

SS-04: Drilling of onshore exploratory well Kanchan-1X (spudded on 29 September 2021)with a TD of 4230m was successfully completed in line with PSC commitment. The well isplugged & abandoned due to poor hydrocarbon prospectivity.

B. Hindustan Petroleum Corporation Limited (HPCL)

Your Company held 54.90% equity shares in HPCL on 31 March 2022 and HPCL is a Schedule‘A' Maharatna and listed entity.

HPCL owns and operates 2 major refineries one at Mumbai (9.5 million metric tonnes perannum - MMTPA) and the other one at Visakhapatnam (8.3 MMTPA). It also owns and operatesthe largest Lube Refinery in the country with a capacity of 428 TMT (thousand metrictonne). HPCL has a vast marketing network of Supply & Distribution infrastructurecomprising of Terminals Installations Tap Off Points LPG Bottling Plants AviationService Facilities Lube Blending plants Lube depots and various customer touchpointsacross the country. HPCL has its Research & Development Centre named ‘HP GreenR&D Centre' in Bengaluru.

During FY'22 HPCL refineries at Mumbai and Visakhapatnam achieved combined refiningthruput of 13.97 MMT. HPCL achieved sales volume of 39.14 MMT compared to previous year'ssales of 36.59 MMT. With Highest ever LPG Sales of 7.7 MMT during FY22 HPCL continued tobe India's second largest LPG marketer registering a growth of 4.4% over FY'21. During theyear HPCL crossed a key milestone of 20000 Retail Outlets with commissioning of 1391Retail outlets during FY22 taking the total Retail Outlets to 20025. Further 51 new LPGdistributorships were commissioned during the year taking the total number of distributorsto 6243 as of 31 March 2022.

The combined Gross Refining Marging (GRM) for HPCL Refineries for FY'22 worked out toUSD 7.19 /bbl compared to USD 3.86 /bbl in the corresponding previous year.

During FY'22 HPCL recorded profit After Tax (PAT) of `63826 million as compared to`106639 million for the previous year. Revenue from operations for the FY'22 was`3738967 million as compared to `2703263 million during the previous year. HPCL hasproposed a final dividend of Rs 14 per share for approval of shareholders for FY'22.

C. Mangalore Refinery and Petrochemicals Limited (MRPL)

Your Company held 71.63 % equity shares in MRPL a Schedule ‘A' Mini Ratna companyand listed entity which is a single location 15 MMTPA Refinery. Further HPCL also holds16.95% equity shares in MRPL.

MRPL's refinery is established with a versatile design with complex secondaryprocessing units and a high flexibility to process Crudes of various API delivering avariety of quality products. Refining Net throughput of MRPL during FY'22 increased byalmost 31% to 15.05 MMT against 11.50 MMT during FY'21.

In a remarkable turnaround MRPL registered a standalone turnover of Rs 860637 million(Rs 507958 million in FY'21) and recorded profit of Rs 29553 million (against loss of`7612 million in FY'21) during FY'22. In FY'22 GRM for MRPL was USD 8.72 /bbl againstUSD 3.71/ bbl during FY'21. MRPL also achieved a 100.17% capacity utilization againstcapacity utilization of 76.55% in FY'21. Highest ever production of Polypropylene (460TMT) LPG(1049 TMT) and MS ( 1722 TMT) were achieved during FY22. Further it successfullycommissioned its 30 MLD desalination plant in Dec. 2021 which would reduce its dependenceto river water.

Amalgamation of ONGC Mangalore Petrochemicals Limited (OMPL) with MRPL:

As a part of reorganization of the Group OMPL has been merged with MRPL with effectfrom April 1 2021 (‘the appointed date') in terms of scheme of Amalgamation approvedby the Ministry of Corporate Affairs vide order dated 14 April 2022.

D. Petronet MHB Ltd (PMHBL)

Your company together with its subsidiary HPCL hold equity shares of 49.996% each inPMHBL. With your Company's holding of 54.9% in HPCL the extent of its holding in PMHBLcomes to 77.44% and makes PHMBL a subsidiary of ONGC. PMHBL owns and operates Mangalore– Hassan – Bengaluru JV pipeline (362.3 Km) to transport MRPL's petroleumproducts to various parts of Karnataka State.

PMHBL achieved a thruput of 2.841 MMT in FY'22 against 2.139 MMT in FY'21and reportedtotal revenue of `1282 million in FY'22 (`1113 million in FY'21) and recorded a netprofit (PAT) of`603 million in FY'22 (`518 million in FY'21).

Associates and Joint Ventures:-

E. ONGC P etro additions Limited (OPaL)

OPaL is a mega petrochemical project established in Dahej SEZ and incorporated in 2006for utilizing in-house production of C2-C3 and Naphtha from Hazira and Uran units of yourCompany. Your Company GAIL and GSPC held 49.36% 49.21% and 1.43% of equity shares ofOPaL respectively on 31 March 2022.

During FY'22 Revenue from operations of OPaL was `160475 million (`114860 million inFY'21) and posted loss after tax of `5347 million against loss of Rs 7974 million inFY'21.

F. ONGC T ripura Power Company Limited (OTPC)

OTPC was incorporated in 2004 as a joint venture of your Company. Your Company held 50%of its shares as on 31 March 2022. OTPC has a 726.6 MW gas based Combined Cycle PowerPlant at Palatana Tripura with two generating units with equal capacity. The basicobjective of the project is to monetize idle gas assets of your Company in landlockedTripura State and to boost exploratory efforts in the region. Average Plant load factorfor FY'22 was about 65% as unit I was under planned shutdown for annual inspection for 104days and there was a drop in power generation from 5090 Million Units (MU) in FY'21 to4124 MU in FY'22.

Consolidated revenue from operations during FY'22 was `12632 million (`16456 millionin FY'21) and consolidated profit after tax (PAT) was `1108 million during FY''22 (`2241million during FY'21).

G. ONGC TERI Biotech Limited (OTBL)

OTBL is a JV incorporated in 2007 by your Company (49.98%) along with The EnergyResearch Institute (TERI) (48.02%) and the remaining 2% shares are held by individuals.OTBL has developed various Biotechnical Solutions for oil and gas Industry throughcollaborative researches involving the Company and TERI. Revenue from operations of OTBLduring FY'22 was `188 million (`270 million in FY'21) and profit after tax (PAT) was`86million during FY'22 (`88 million during FY'21).

H. Dahej SEZ Limited (DSL)

DSL a 50:50 JV of your Company along with Gujarat Industrial Development Corporation(GIDC) was incorporated in 2004 for establishing a multi-product SEZ at Dahej. YourCompany has set up C2-C3 Extraction Plant as a value-chain integration project in thisSEZ which serves as feeder unit to OPaL JV of your Company. Revenue from Operations ofDSL during FY'22 was `671 million (provisional) against `624 million in FY'21 (audited)and PAT was `470 million during FY'22 (provisional) against `345 million (audited) duringFY'21.

I. Mangalore SEZ Limited (MSEZL)

MSEZ is a JV under Special Economic Zone and was promoted by your Company with anequity stake of 26%. MSEZ was incorporated in 2006 for development of necessaryinfrastructure to facilitate and locate industrial establishments. MSEZ is operationalsince April 2015.

Total Revenue from operations of MSEZ during FY'22 was `1924 million (`1651 millionin FY'21) and loss after tax of Rs 199 million during FY'22 (Net loss of Rs 321 millionduring FY'21).

J. Pawan Hans Limited (PHL)

PHL is an Associate of the Company with 49% holdings and the Government of Indiaholding remaining 51%. PHL was formed primarily for catering to the logistic requirementsof offshore and other remote area oil fields. PHL is a Mini Ratna-I Category PSU havingfleet of 43 helicopters. The Government of India is in the process of identifying astrategic investor for sale of its entire holding and hence your Company has also decidedto exit from PHL along with the Government.

K. Petronet LNG Limited (PLL)

Petronet LNG Limited (PLL) an associate of your Company which was incorporated in1998 with 12.50% equity holding along with identical stakes held by other Oil PSUco-promoters viz. IOCL GAIL and BPCL is a listed Company. PLL the largest company inthe country in LNG business has set up the country's first LNG receiving andregasification terminal at Dahej Gujarat and another terminal at Kochi Kerala. Whilethe plant at Dahej terminal has 17.5 MMTPA capacity the Kochi terminal hascapacity of 5 MMTPA. During FY'22 PLL recorded revenue from operations of `431686million and Profit after tax (PAT) of `33524 million. PLL paid a special dividend of Rs 7per share and has proposed a final dividend of `4.50 per share for FY'22.

L. Indradhanush Gas Grid Limited (IGGL)

Your Company has subscribed 20% equity capital in IGGL a JV company promoted by yourcompany in association with IOCL GAIL OIL and NRL. IGGL was incorporated in 2018 for thepurpose of laying 1656 KM pipeline covering north-east states with a Capex of Rs 92650million. MoPNG has approved Viability Gap Funding (VGF) of Rs 55590 million which is 60%of the project cost. Surveying ROU acquisition and Pipeline laying in various sections isunder progress. Physical progress of 42.94% has been achived till 31 March 2022 with acumulative financial expenditure of`19060 million. Financial progress of 20.57% has beenachieved till FY'22 as against the schedule of 20.54%

M. R ohini Heliport Limited (RHL):

Your Company has subscribed 49% equity capital in Rohini Heliport Limited withGovernment of India's stake as 51% RHL is a mirror company of Pawan Hans Limitedincorporated in 2019 for enabling disinvestment of PHL.

N. Compan ies Which Have become/ ceased to be Company's Joint Ventures And AssociatesCompanies during FY'22

a) Companies which have become subsidiaries: NIL.

b) Companies which have ceased to be subsidiaries: NIL. Your Company sold itsentire equity stake in OMPL to MRPL in December 2020 to facilitate merger of OMPL withMRPL. During FY'22 OMPL merged with MRPL w.e.f. 1 April 2021 (Appointed Date) vide orderof MCA dated 14 April 2021.

c) Companies which have become a joint venture or associate: NIL.

d) Companies which have ceased to be a joint venture or associate: NIL

28. Make in India

To promote "Atmanirbhar Bharat" ONGC has introduced Development Order Policyin December 2020 for goods and services after delinking it from routine tender process tomake the process easier and continuous. The policy enables vendor to offer product at anypoint of time.

Two rounds of Expression of Interest were floated in January 2021 and January 2022respectlively. ONGC has localized 14 products through 11 successful development ordersanother 16 products are in development by 12 Indian manufacturers. Local vendors have beendeveloped for products like Premium casings and tubing Solid Control Equipment and DrillPipes amounting to annual offtake of nearly `8200 million.

Oxygen Concentrators

During the second wave of pandemic ONGC was entrusted with the responsibility ofprocurement & supply of 1 lakh Oxygen Concentrators under PM-CARES in the month of May2021. While 28% (28337 nos.) were sourced from abroad balance 72% of OxygenConcentrators were manufactured by domestic manufacturers (70863 nos.) There was nodomestic manufacturing capacity of Oxygen Concentrators in India at that time. ONGCsupported eight domestic manufacturers from PSU Private MSE and start-ups sectors tomanufacture Oxygen Concentrators of 5 LPM and 10 LPM oxygen discharge capacity.Manufacture and Supply of all 70863 nos. were completed by these eight manufacturers.

29. ONGC Start-Up Initiative

‘ONGC Start-up Fund' conceptualized in line with the ‘Start-up India'initiative launched by the Hon'ble Prime Minister of India was established to fosternurture and incubate new ideas related to energy sector. The Fund supports and promotes anecosystem in the Energy Sector for entrepreneurship among the younger Indians. ONGCStart-Up Fund supported 15 start-ups from energy sector.

The financial commitment to these Start-Ups was`486 million .

30. Health Safety and Environment (HSE)

ONGC accords topmost priority to the Health Safety and Environmental (HSE) managementby carrying out its operations ensuring zero harm to the people or the environment.Operations of ONGC mainly exploration and production activities are highly hazardous andrisky. HSE in ONGC's operations is guided by HSE Policy and HSE management system. Inaddition there is also dedicated Environment Policy and e-waste policy.

ONGC in order to maintain highest standards goes beyond the Regulatory requirementsand practices proactive HSE Management System. The HSEMS is based on InternationalStandards ISO 9001 ISO 45001 and ISO 14001.

HSE Initiatives:

a) Compliance to HSE management systems as well as to prevalent rulesregulations guidelines and standards is checked during internal audits being conductedby multi-disciplinary teams of the Company. The same are also checked by externalauthorities like Oil Industry Safety Directorate (OISD) and Directorate General of MinesSafety (DGMS).

i. Despite COVID-19 challenges 292 ISAs were conducted in 2021-22 against atarget of 274. The overall compliance status of ISA observations as on 31 March 2022 was94.19 per cent.

ii. OISD conducted audits at 76 Installations in 2021-22. The overall compliancestatus of the observations raised by OISD as on 31 March 2022 was 92.02 per cent.

iii. DGMS carried out inspections at 81 Installations in 2021-22. The overallCompliance status for the contraventions raised by DGMS as on 31 March 2022 was 97.38 percent.

b) DNV GL Energy India Pvt. Ltd. has been engaged to advise ONGC on HSE Management.The objective of this project is to identify the current gaps in the safety managementsystem assessment of the overall safety culture of the organization and take actions tomitigate these gaps and improve the safety culture. The pan ONGC project shall be carriedout in three phases during a period of eighteen months. The first phase was completed on 6February 2022 and the second phase has already commenced.

c) As part of employee engagement program ONGC conducted a Safety PerceptionSurvey from 1 to 31 December 2021. Nearly 14217 ONGC employees and 6396 secondaryworkforce participated in the survey. Based on feedbacks of the participants steps arebeing taken to further strengthen the safety management system and safety culture of theorganization.

d) During 2021-22 17154 mock drills were conducted including 17130 ERP(Emergency Response Plan) 9 Onsite DMP (Disaster Management Plan) 12 Offsite DMP and 3RCP (Regional Contingency Plan) mock drills.

e) Mines Vocational Training (MVT) a mandatory training as per Mines Act is beingimparted to both employees and contract personnel through in-house training centres. MVTwas provided to 3973 personnel (1912 Company Employees and 2061 Contract Personnel) in2021-22.

f) In order to give impetus to near miss reporting and timely closures awards areconferred for the best performing work centres for motivating the Near Miss Reporting andtheir timely closure every month.

g) Every quarter Safety Champion and Safe Installation awards are being declaredby Assets/ Plants/ Basins.

h) Implemented SAP based E-PTW (Electronic Permit to Work) which maintains systembased checks & balances eliminates possibility of bypass of procedures and createstrail of documentation for data analysis.

i) HSE Benchmarking of all ONGC installations has been done on various HSEparameters in SAP by designing a HSE Index.

j) The processes of MoC (Management of Change) has been streamlined and SAPbased MoC module has been developed for ensuring adherence to MoC procedures.

k) Environmental Clearances: ONGC received 9 Environment Clearances (ECs) & 4EC validity extensions for drilling of 55 exploratory wells 33 exploratory/developmentwells and Conversion of 37 exploratory wells to development wells.

l) Waste Management

I. Waste Water Management: ONGC monitors the waste water usage and maintains thequality of effluent discharged conforming to statutory requirements specified fordischarge of treated effluent at surface/ subsurface. The Company has 41 number ofEffluent

Treatment Plants across onshore work centres to treat approx. 104000 m3/day of wastewater produced during E&P operations.

For Offshore effluent treatment Produced Water Conditioners (PWCs) have been installedat process platforms. Sewage Treatment Plants for treatment of sewage water generated arealso provided at offshore facilities.

II. Solid Waste Management: The Solid Waste generated in the form of oilysludge/oil contaminated soil are treated using bio-remediation technique in which oileating consortium of bacteria is used to break down hazardous substances into non-toxicsubstances thereby ensuring environmentally safe disposal of waste. It is ensured thatthe Total Petroleum Hydrocarbon (TPH) of the treated oily sludge is less than 0.5% (5000ppm) in consonance with the Hazardous and Other Wastes (Management and Trans-boundaryMovement) Rules 2016. During FY 2021-22 26361 Metric Tons of oily sludge/ oilcontaminated waste has been bio-remediated.

m) Oil Spill Management in Offshore operations: ONGC has a robust oil spillmanagement system to address oil spills ranging from minor to significant volumes. TheIndian Coast Guard (ICG) is designated as a central coordinating authority by theGovernment of India for combating oil spills in Indian waters and undertaking oil spillprevention and control. As per the National Oil Spill Disaster Contingency Plan (NOS-DCP)promulgated by ICG ONGC is maintaining its own Tier-I oil spill response equipment andmanpower onboard multi-support vessels in its operational area. For Tier-II level oilspill ONGC is relying on Indian Coast Guard and ONGC's mutual aid partners and forTier-III oil spill ONGC is maintaining participant membership of Oil Spill ResponseLimited (OSRL) UK through which ONGC is having guaranteed response and access to OSRL'sworldwide resources comprising of Booms Skimmers Oil Spill Dispersants stockpilestorage equipment specialized manpower etc.

In addition ONGC has also developed its own oil spill contingency plan to deal withoil spill incidents and eventualities. ONGC conducts internal oil spill mock drills andalso participates in regional and national level mock drills organized by the Indian Navyand Indian Coast Guard. Annual returns on preparedness for oil spill response is beingfiled annually to ICG.

31.Carbon Management and Sustainable Development

Sustainable Development is the standard template in the Company and this findsexpression in our commitment to continually enhance the benchmarks of economicenvironmental and social performance. The major endeavours towards corporatesustainability were as under:

Clean Development Mechanism (CDM):

Your Company had 15 CDM projects registered with the United Nations FrameworkConvention on Climate Change (UNFCCC) under the Kyoto protocol since 2006.

ONGC is also continuing the Verification/Renewal of existing CDM projects as well asfinding opportunities for Registration of new CDM projects.

Greenhouse Gas (GHG) Accounting and Mitigation:

ONGC aims to reduce GHG emissions by focusing on improved energy efficiency. Thescope-1 and scope-2 emissions during FY'22 was 9.136 MMTCO2e a reduction of about 3% fromthe previous year. Verification of the same would be taken up during FY'23.

Global Methane Initiative (GMI):

The GMI is an action-oriented initiative from United States Environment ProtectionAgency (USEPA) to reduce global fugitive methane emissions to enhance economic growthpromote energy security improve the environment and reduce greenhouse gases emission.During FY'22 survey was conducted at Ankleshwar Asset and C2- C3 Plant.

Solar and Wind energy initiatives:

The total installed capacity of renewable energy as on 31 March 2022 was about 184.3 MW(Solar: 31.3 MW and Wind: 153 MW) ONGC has also signed an MoU with SECI for RenewableEnergy Projects in Solar Wind (onshore) Solar Parks EV Value Chain Green HydrogenStorage etc.

Replacement of conventional lights with LED lighting:

In line with the government of India's call for promoting efficient energy use (UjalaScheme) ONGC entered in to an MoU with Energy Efficiency Services Limited (EESL forreplacement of all conventional lights in ONGC in a phased manner. However incandescentlamps tube lights and CFLs were immediately replaced. During FY'22 ONGC installed 41000LED lights making a total of around 351000 LED lights installed so far by ONGC. Thishas enabled ONGC to save around 75.9 million electricity units annually realizingannual savings of `531 million.

Micro Turbines and Dynamic Gas Blending system:

As part of sustainability initiative 05 Micro Turbines of aggregate capacity 460 KWand 02 Dynamic Gas Blending systems (in diesel engines of drilling rig) were taken up indifferent locations of ONGC taking the total to 7 Micro Turbines and 6 DGB's.

Carbon Capture Storage and Utilisation (CCSU)

Carbon Capture Storage and Utilization (CCSU) is a critical CO2 emission abatementtechnology that can prevent large quantities of CO2 from being released into theatmosphere. Considering its benefits ONGC entered into an MoU with Indian Oil CorporationLimited (IOCL) for CO2 based Enhanced Oil Recovery (EOR). Under this initiative the CO2captured from the IOCL's Koyali refinery will be utilized for EOR from the depleting oilfields of ONGC in Gandhar near Vadodara. The project has the potential for sequestratingfield 5 to 6 million TCO2 by the year 2040.

Sustainable Water Management

ONGC adopted the policy of Sustainable Water Management (SWM) in its water managementpractices and also modified its policy on Rainwater Harvesting (RWH) for smoothimplementation monitoring and regular maintenance of RWH projects.

Uran Plant is in the process of setting up a 10 MLD sea water desalination plant thatcan be scaled up to 20 MLD in future. Although due to some technical problems the projectis delayed but once functional this plant will help not only to fulfil our fresh waterdemand but also reduce our dependence on Mumbai Industrial Development Corporation (MIDC)for supply of fresh water.

32. Internal Financial Control System:

Your Company has put in place adequate Internal Financial Controls by laying downpolicies and procedures to ensure the efficient conduct of its business safeguarding ofits assets prevention and detection of frauds and errors accuracy and completeness ofthe accounting records and timely preparation of reliable financial informationcommensurate with the operations of the Company. Effectiveness of Internal FinancialControls is ensured through management reviews self-assessment and independent testing bythe Internal Audit Team indicating that your Company has adequate Internal FinancialControls over Financial Reporting in compliance with the provisions of the Companies Act2013 and such Internal Financial Controls are operating effectively. The Audit Committee/Board reviews the Internal Financial Controls to ensure its effectiveness for achievingthe intended purpose. Independent Auditors Report on the Internal Financial Controls ofthe Company in terms of Clause (i) of Sub-Section 3 of Section 143 of the Companies Act2013 by the Statutory Auditors is placed alongwith the Financial Statements.

33.Conser vation of Energy Technology Absorption and Foreign Exchange earnings &Outgo:

The information as required under section 134(3) (m) of the Companies Act 2013 readwith the Companies (Accounts) Rules 2014 is annexed as Annexure – C.

34. Business Responsibility and Sustainability Report

Business Responsibility and Sustainability Report (BRSR) is annexed as Annexure– D and forms part of the Board's Report.

35. Management Discussion and Analysis Report

As per regulation 34(2)(e) of the SEBI (Listing Obligations and DisclosureRequierements) Regulations 2015 the Management Discussion and Analysis Report (MDAR)forms part of this Report.

36. Corporate Governance

A report on Corporate Governance as stipulated under Regulation 34(3) read withSchedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 andalso on DPE Guidelines on Corporate Governance 2010 forms part of the Annual Report.

37. Human Resource Development

Employees are the cornerstone of ONGC's growth and value creation. ONGC's HR Vision isto build and nurture a world class human capital for leadership in energy business bycontinuously innovating and adopting best-in-class HR practices to support businessleaders through engaged empowered and enthused employees.

There were 27165 employees on rolls of ONGC as on 31 March 2022. These ONGCiansdedicated themselves for securing excellent performance of your Company during the yeareven amidst the challenges of a global pandemic situation through their commitmentcompetence and spirit of collective collaboration. Your Company's talent managementstrategy is focused on building an optimal and competent workforce to meet business needsand is centered around workforce planning and talent acquisition performance managementlearning & development career growth succession planning leadership developmentand extending best of employee facilities welfare benefits and work environment.

Capacity building of the workforce is a priority area with dedicated Institutestaking care of the learning & development needs of our employees to effectively meetthe challenges of E&P industry. ONGC has tie-ups with a number of national &internationals institutions agencies and business schools for capacity building of itsenergy professionals.During the year in view of the Covid-19 pandemic learningmethodologies were continued on online mode. During FY'22 19219 executives and 4338non-executives were imparted training in relevant domains spanning 66660 executive and9617 non-executive training days.

Learning Management System (LMS) is one of the landmark initiatives undertaken byONGC in recent times. A pioneer project under the Government's Digital India InitiativeLMS portal brings competency-based learning to all ONGCians to enable self-pacedlearning continual Learning through learning pathways world class trainings up-to-datecontent and assessment-based progress.

With this ONGC has become the first PSE to onboard Learning Management System in 2022under Mission Karmayogi launched by Hon'ble Prime Minister.

Leadership Development: ONGC has in place strategic development interventionsacross executive levels to build and nurture a continual pipeline of energy leaders.During the year ONGC launched ‘Harvard ManageMentor' – a management developmentprogram [e-learning] covering more than 3100 executives. Further to take care ofdevelopment needs of the young officers under ONGC Mentor Mentee exercise FY'22 600Mentors have been initiated into the mentoring journey who are each mentoring 1-2 youngexecutives from their respective work centre.

Digitalization of HR Processes: During the year a number of digital initiativeswere taken up towards improved employee processes HR workflows digitization of Trustrecords etc. in line with the organization's push for technology & digitization.ONGC has introduced IT Enabled paperless Medical Referral process system through MedicalSmart Cards (ONGCCares) to regular/ retired employees & their dependents thus makingthe system more convenient & transparent. Further Paperless Medical reimbursementprocesses and referral systems was also launched in 2021 directly impacting more than 1.5Lakh beneficiaries leading to considerable reduction in carbon footprint as well assystem improvement.

Employee Engagement: ONGC took up a number of employee engagement activities topromote a culture of open communication trust sense of belonging team spiritinnovation and excellence. Some highlights are as follows:

• More than 50 ‘people connect' sessions were conducted across work centresfor improved engagement & interaction of key executives and seniors with work teamswith focus on youngsters.

• Annual ONGC Business Games was successfully conducted online to hone thebusiness acumen of executives . During FY'22 a total of 279 teams and 1116 executivesparticipated in these games.

• ‘Abhivyakti' engagement exercises were conducted for E0 and below levelemployees as focused engagement exercises wherein more than 250 nos of employeesparticipated in various individual and group online competitions. The participantsdisplayed excellent digital literacy during the virtual competitions.

• A special program on Parenting and Career Guidance for employees and wards wasconducted.

• The second edition of MOSAIC – Online Games was held during Nov-Dec 2021which was participated by 139 PWD employees across ONGC and ONGC Videsh.

Employee Recognition: ONGC has a well-defined and robust Awards and Rewards schemeat Corporate as well as Work centre level where outstanding performance of employees arerecognized and rewarded.

Employee Welfare: Introduced new policies and measures such as specialdispensations to employees due to covid situation introduction of Health Care Package forCOVID-19 improvement in Group Insurance Scheme to employees enhancement of supportamount under ONGC Composite Social Security Scheme extension ssssof medical facilities toparents of both employee and spouse working in ONGC enhanced benefits to tenure basedfield employees term based Field employees contingent employees etc.

Work- Life Balance: Your Company provides an enabling environment for work-lifebalance of its employees. Townships at many work centres have developed facilities likegymnasiums clubs sports facilities and music rooms. Facilities for gym sports yogalibrary etc. are also provided in Offshore Living Quarters. Apart from social communitiessuch as Officers Clubs Employee Welfare Committees Resident Welfare Associations ONGCOfficers' Mahila Samiti etc. your Company also has a unique adventure wing named‘ONGC Himalayan Association' which organizes adventure programmes likemountaineering trekking water rafting etc. which adds towards employee moraleengagement team spirit camaraderie stress management and spirit to explore the unknown.

Health and Wellbeing: During the pandemic ONGC ensured health safety &well-being of its workforce and provided full support to all its employees. As aresponsible corporate citizen ONGC also enhanced the health insurance coverage for itssecondary workforce.

During the 2nd wave of Covid pandemic ONGC put in place Covid-care facilities at itswork centres for handling emergency patients. ONGC ensured home delivery of medicines toneedy patients. 24x7 Helpline Numbers and a digital COVID Dashboard operationalized tohelp and assist employees and their family members. A number of health talks &webinars on covid health mental well-being coping with loss etc were arranged. CovidSewa initiative was launched to bring together ONGC employees & their family membersto volunteer themselves.Superannuated Doctors of ONGC came forward to volunteer to extendhelp through tele-consultation to ONGC employees on Covid-related and other medicalissues. Vaccination camps were organized at various work locations across the country foremployees and secondary workforce. Continuous communication & connect of topleadership with operations teams at ONGC locations across the country was ensured toreinforce employee safety boost workforce morale and provide all necessary support forsmooth operations.

Employee Welfare Trusts

Your Company has established following Trusts for welfare and social security ofemployees:-

Employees Contributory Provident Fund (ECPF): During the pandemic the Trustsettled one of the highest NRA-Pandemic/ Epidemic claims (more than 19000 cases amountingapprox.

Rs 4710 million since April 2020) in the country which was appreciated by theEmployees Provident Fund Organisation.

Post Retirement BenefitScheme (PRBS) Trust manages the pension fund of employees ofyour company.

Composite Social Security Scheme (CSSS) formulated by your Company provides an assuredex-gratia payment in the event of unfortunate death or permanent disability of an employeewhile in service. Gratuity Fund Trust established for payment of gratuity as per theprovisions of the Gratuity Act.

ONGC Medical Benefits (PRMB) Trust has been established to manage the funds for thepost-retirement medical benefits of employees. ONGC Leave Encashment Trust has beenestablished to manage the funds for the Earned Leave encashment benefits of employees.

Your Company also has a ‘Sahyog Trust' for its Sahyog Yojana to provideex-gratia financial grant for sustenance medical assistance and treatmentrehabilitation education marriage of female dependent and alleviation of any hardship ordistress to secure the welfare of the workforce and their kin who do not have adequatemeans of support. Beneficiaries under this scheme include casual contingent daily ratedpart-time adhoc contract appointees and tenure-based employees apprentices andtrainees engaged by your Company besides regular and past employees. Under the scheme anamount of Rs 36.36 Million was disbursed by the Trust during FY'22 to 836 beneficiaries.

Your Company has instituted Asha Kiran Scheme to meet the emergency needs of theex-employees retired prior to 01.01.2007. The scheme was launched as per DPE guidelineswith a corpus of 1.5% of profit before tax. During FY'22. Rs 1373 million was spent onthis scheme covering 13099 beneficiaries.

Your company has initiated Digital Life Certificate (DLC) that has simplifiedsubmission of life certificate module has been developed in collaboration with NIC whereany retired employee/ pensioner can submit his/her life certificate with the help ofbiometrics without physically going to the pension disbursing authority and get pensiondirectly credited to the respective bank account.

Implementation of Govt. Directives for Priority Section

ONGC is fully cognizant of its responsibility towards welfare of SC and ST communitiesand complies with the Government directives. The percentage of Scheduled Castes (SC) andScheduled Tribe (ST) employees were 15 percent and 11 percent respectively as on31.03.2022. Your Company and carried out following welfare activities for their bettermentin and around its operational areas:-

Annual Component Plan: Under Annual Component Plan for SC/ ST every yearallocation of Rs 200 Million is made. Out of this Rs 60 Million is distributedamongst all work-centres of the Company for taking up welfare activities for communitiesin and around areas of the Company's operations. In addition Rs 140 Million is managedcentrally and is earmarked for special projects/ proposals/ schemes for the welfare ofareas/ persons belonging to SC/ST communities. This fund is especially meant for providinghelp and support in Education and Training Community Development and Medical & HealthCare.

Scholarship to meritorious students: Your Company provides 1000 scholarships formeritorious SC and ST students for pursuing higher professional courses at differentInstitutes and Universities across the country in Graduate Engineering MBBS PG coursesof MBA and Geo-Sciences. The scholarships have been equally divided for both Boys andGirls students. The scholarship amount is extended up to Rs 48000/- per annum per studentsubject to conditions of the scheme.

Diversity & Inclusion: ONGC is an equal opportunity employer and ensures thatthere is zero discrimination against any employee whether based on gender religioncaste ethnicity language background age or abilities etc.

Women Development: Women employees constituted 7.5 per cent of your Company'sworkforce as on 31.03.2022. ONGC has put in place a number of women-friendly policies andpractices in the organisation to support promote and nurture women in the company. ONGCorganizes special Leadership development programs for women executives through reputedInstitutes to groom women executives for leadership roles. A new focused programme onWomen Leadership Development – Urjasvini was launched by ONGC during FY'22 tomentor and develop high-potential women executives for senior management roles. Aninitiative called Voice of Oil Women (VOW) was started in January 2022 wherein ONGC'sWomen Development Forum (WDF) Chapters organise online sessions every month for knowledgesharing learning and networking amongst the women fraternity.

A new portal exclusively for Women Development Forum of ONGC was launched onInternational Women's Day on 8th March 2022.

Inclusion of Persons with Disabilities (PwD): ONGC ensures requisite facilities andinfrastructure to enable Persons with Disabilities to effectively discharge their duties.Apart from reservation in recruitment they are provided with special facilities andamenities in terms of suitable job assignments assistive devices preference in transfer/posting accommodation special casual leave free accessibility and barrier freeenvironment at work place. Special events such as Para Games and Mosaic online games areconducted for PwD employees of the Company. by retired employees. A Disclosure under theSexual Harassment: Your Company has complied with the provisions under the SexualHarassment of women at workplace (Prevention Prohibition and Redressal) Act 2013including constitution of Internal Complaints Committees (ICC) for dealing with complaintsof sexual harassment of women at workplace. Skill enhancement programs were conducted formembers of ICC to equip them with requisite skills for enquiring into complaints.Awareness programme was also extended for the secondary workforce of the Company.

Details of complaints under Sexual Harassment of women at workplace (PreventionProhibition and Redressal) Act 2013 are provided under POSH framework of IntegratedReport.

38. Industrial Relations

Your Company maintained harmonious Industrial Relations throughout the year. Man-daysloss due to internal industrial action was reported as ‘NIL' for FY'22.

39. Compliance under the Right to Information Act 2005

Your Company has a well-defined mechanism in place to deal with the RTI applicationsreceived under the Right to Information Act 2005. Your Company has a designated seniorlevel officer a ‘Nodal Officer' to oversee its implementation. The applicationsreceived are processed by 23 executives designated as ‘Central

Public Information Officers' (CPIOs) in various work centres across the Company. Theparticulars of all the quasi-judicial authorities under the ambit of RTI Act 2005 havebeen uploaded on the Company website ( for information of the generalpublic. Your Company received 2259 applications (including 35 transferred by other PublicAuthorities) during FY'22 and 183 RTI applications were carried forward from FY'21.Against these applications information as sought were provided 7 applications wererejected and 35 applications were transferred to other public authorities in accordancewith the provisions of the RTI Act 2005. There were 422 first appeals which weredisposed-off during the period. Total pending request were 183 as on 31.03.2022.

40. Implementation of Official Language Policy

Your Company continued its concerted efforts for promotion and implementation ofOfficial Language. In this regard some of the efforts taken during the year were:

• Unicode Hindi software installed in all offices.

• Hindi workshops conducted at regular intervals in all work centres.

• Hindi technical seminars/Webinars Kavi Goshties Kavi Sammelan and Hindi playswere organised at various work centres.

• Various programme conducted at all work centres of the Company during RajbhashaFortnight (14th to 28th September 2021) and Vishva Hindi Divas (10.01.2022)

• Hindi Teaching Scheme of Government of India was implemented effectively at allregional work centres of the company. Hindi e-magazines were published by all workcentres.

• E-Roster of Employees regarding working knowledge of Hindi has been put inplace.

• Paperless office has been made bilingual for effective implementation ofOfficial Language policy. Besides Unicode has been installed in SAP platform for enablingbilingual working.

• A bilingual handbook has been prepared and uploaded on forready reference on OL policy

• To achieve the annual target of Official Language by using the applications ofHindi Computing tools a special workshop/ webinar has been conducted for OfficialLanguage Executives posted at different work centres of ONGC in association with C-DACPune.

41. Sports

Your Company continues the support for development of sports in the country byproviding employment opportunities to sportspersons and also granting scholarships tobudding talents in 22 games. Your Company sponsored various sports associations/federations/ sports bodies for organizing sports events as well as developing sportinginfrastructure. The support has enabled many sportspersons to achieve excel and bringhome laurels for the nation and the organization.

Some of the significant achievements of our sportspersons during the year were asfollows:

• Seven ONGC sports persons represented country in Tokyo Olympics:

• Apurvi Chandela : Shooting
• Ankita Raina : Tennis
• G Sathiyan : Table Tennis
• B. Sai Praneet : Badminton
• Gurjant Singh : Hockey
• Sumit : Hockey
• Mandeep Singh : Hockey

All three ONGC Hockey players were core group members of Senior India Men team and wereinstrumental in India winning Olympic Bronze medal after a gap of 41 years.

Five ONGCians were conferred with Arjuna Awards for the year 2021by President of India:

• Arpinder Singh – Athletics
• Ankita Raina – Tennis
• Gurjant Singh Sumit & Mandeep Singh – Hockey
• The total number of National Awardees in the organization stand at 60:
• Padma Bhushan – 1
• Khel Ratna – 2
• Padma Shri – 6
• Arjuna Award – 49
• Dhyanchand Award – 2

Other Highlights

• Pankaj Advani won IBSF World 6 Red Cup held at Doha Qatar in September 2021andACBS Asian Snooker Championship at Doha.

• ONGCian International Tennis star V.M. Ranjeet won two Singles Title for theyear by winning the AITA Ranking tournament 2021 in Gurugram.

• ONGCian International Tennis star Vishnu Vardhan won Singles titles of AITANational Ranking tennis tournament in Bengaluru in September 2021.

• ONGCian Kirpal Singh won Gold medal in Discus throw in 60th National OpenAthletics Championship held at Warangal (Telangana) in September 2021. He also won GoldMedal in ‘Discus Throw' by breaking meet record with throw of 61.83 meters inNational Federation Cup Senior Athletics Championship held at Calicut (Kerala) in March2022 and qualified for Asian Games 2022.

• ONGCian's Shiva Thapa & Sumit Sangwan won the Gold & Silver medalrespectively in the 5th Elite National Boxing Championship at IIS Bellary (Karnataka) inSeptember 2021.

• ONGCian Shiv Thapa becomes first Indian Boxer who consecutively won his 5thmedal in Asian Boxing Championship.

• ONGCian Pankaj Advani & Dhruv Sitwala won Gold & Silver Medalrespectively in Asian Billiards Championship at Doha Qatar in March 2022.

• ONGCian M R Poovamma secured Silver Medal in 400 meters event at Calicut(Kerala) in National Federation Cup Senior Athletics Championship held in March 2022.

• ONGCian Ankita Raina won double title in ITF World Tennis tour event inAustralia in March 2022.

• ONGCian Yuki Bhambri won singles title in ITF World Tennis tour event in Delhiin March 2022.

• ONGCian Siddhant Thingalaya National record holder won Gold Medal in 110 metershurdles event in National Federation Cup Senior Athletics Championship held in March 2022at Calicut (Kerala)

• Chess Grand master K Sasikiran won the Fagernes Open Chess Championship atNorway in April 2022.

42. Corporate Social Responsibility (CSR)

As one of India's foremost Nation Builders your Company is committed towards itssocial responsibility. The Annual Report on CSR activities is annexed as Annexure–E.

43. Regulatory or Courts order

During FY'22 there was no order or direction of any court or tribunal or regulatoryauthority either affecting Company's status as a going concern or which significantlyaffected Company's business operations.

44. Significant development after closure of financial year

Government of India vide Excise Notification No. 05/2022-CE dated 30.06.2022 has leviedSpecial Additional Excise Duty (SAED) on manufacture of Petroleum Crude at the rate of Rs23250 per tonne (approx. USD40/bbl). Such levy is effective from 01.07.2022 which ispayable in addition to the existing levies. It is understood from the media reports thatthis levy has been imposed due to extra-ordinary situation prevailing in the global energymarkets. The Company has suitably represented to the Govt. of India for review of suchlevy.

45. Directors' Responsibility Statement

Pursuant to the requirement under Section 134 of the Companies Act 2013 with respectto Directors' Responsibility Statement it is herebyconfirmed

a) In the preparation of the annual accounts the applicable accounting standards werefollowed and there was no material departures from the same;

b) The Directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that were reasonable and prudent so as to give a trueand fair view of the state of affairs of the Company as on 31 March 2022 and of the profitof the Company for the year ended on that date;

c) The Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

d) The Directors had prepared the annual accounts of the Company on a ‘goingconcern' basis;

e) The Directors had laid down internal financial controls which were being followed bythe Company and that such internal financial controls were adequate and were operatingeffectively; and

f) The Directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems are adequate and operating effectively.

46. Annual Return

Pursuant to Section 134(3)(a) read with Section 92(3) of the Companies Act 2013 AnnualReturn of the Company is placed at

47. Particulars of Employees

Your Company being a Government Company the provisions of Section 197(12) of theCompanies Act 2013 and relevant Rules issued thereunder are not applicable.

The terms and conditions of the appointment of Whole-time Directors are subject to theapplicable guidelines issued by the Department of Public Enterprises (DPE) Government ofIndia.

48. Audit Committee

In compliance with Section 177(8) of the Companies Act 2013 & Regulation 18 ofSEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and DPEGuidelines on Corporate Governance 2010 the details regarding Audit Committee is providedunder Corporate Governance Report which forms part of Annual Report. There was no instanceduring FY'22 where the Board had not accepted any recommendation of the Audit Committee.

49. Vigil Mechanism:

Your Company has established Whistle Blower Policy / Vigil Mechanism to report genuineconcerns about ethical behaviour actual or suspected fraud violation of Code of conductand also instances of leak of unplublished price sensitive information. The said vigilmechanism provides for adequate safeguards against victimization of persons who use themechanism and has provision for direct access to the Chairperson of the Audit Committee inappropriate or exceptional cases.

Policy of the Company may be accessed at

50. Vigilance Functions:

Your Company has a full-fledged Vigilance Department headed by Chief Vigilance Officer.The Department operates on the guidelines of Central Vigilance Commission on Vigilancemanagement in Public Sector Enterprises and is guided further by instructions issued bythe Department of Personnel and Training and MoPNG from time to time.

Complaints are handled as per the complaint handling policies stipulated in VigilanceManual issued by the Central Vigilance Commission. The prime focus of Vigilance activitieshas been Preventive and Participative Vigilance by having regular interaction withemployees and other stakeholders to spread awareness among the masses.

An account of vigilance cases disposed during the year and cases pending as on01.04.2022 is as under:

Number of cases
Nature of cases disposed-off during the financial year Pending as on 31.03.2022
Major penalty 20 24
Minor penalty 19 06

51. Risk Management Policy and Implementation:

The Company has a Board approved Risk Management Policy. Risk framework and Riskportfolio are periodically monitored by the Risk Management Committee Audit Committee andthe Board.

52. Auditors

The Statutory Auditors of your Company are appointed by the Comptroller and AuditorGeneral of India (CAG). There were 6 Practising Chartered Accountants firms namely M/s.G.M. Kapadia & Co. M/s. R. Gopal & Associates M/s. SARC & Associates M/s.Kalani & Co. M/s. R.G.N. Price & Co. and M/s S. Bhandari & Co. who wereappointed as Joint Statutory Auditors of the Company for FY'22.

The Statutory Auditors have been paid a total remuneration of Rs 56.64 Milliontowards audit fees certification and other services.

The above fees are inclusive of applicable service tax/GST but exclusive ofre-imbursement of travelling and out of pocket expenses.

Auditors' Report on the Accounts

Statutory Auditors Reports and the comments of CAG on standalone and consolidatedaccounts of the Company are placed along with respective financial statements for FY'22.There is no qualification in the Statutory Auditors Reports on the Financial Statements ofthe Company for FY'22. The comments of Comptroller & Auditor General of India(C&AG) and the reply of the managment thereto form part of this Report and areattached as per Annexure – F. During FY'22 there has not been anyfraud reported by the Auditors of the Company.

53. C&AG Audit on other matters:

As at 31 March 2022 there were twenty four pending published paras related to theC&AG audit. These related to payment of Stagnation Relief Non-recovery of PerquisiteTax Payment towards encashment of Half pay Leave/Earned Leave IT audit on FICO module ofSAP Delay in appraisal and non-monetisation of the discoveries in KG DWN 98/2 Block NonAchievement of objective of acquiring Coal Bed Methane (CBM) Blocks Utilisation of Rigsin ONGC Avoidable extra expenditure due to delay in procurement of casing pipes Notobtaining the share of cost of Immediate Support Vessels purchased by ONGC for security ofoffshore assets from E&P operators Non recovery of pending cash calls Constructionof Toilets in schools by CPSEs Loss of returns to ONGC due to adoption of financingmechanism to maintain the status of OPaL as a non-public sector undertaking Avoidablepayment of equipment standby rentals Supply of gas without security resulted innon-recovery of dues etc.

These audit Paras have been suitably replied and the same are under review of MoPNG orCAG.

54. Cost Audit

There were 6 cost accountants firms namely M/s. Bandopadhyaya Bhaumik & Co. M/s.N. D. Birla & Co. M/s. Joshi Apte & Associates M/s. ABK & Associates M/s.Sanjay Gupta & Associates and M/s. Rao Murthy & Associates appointed by the Boardas Joint Cost Auditors of the Company for FY'22. Necessary cost audit report shall beprepared by the said auditors and filed with the Central Government as per requirementsunder the Companies Act 2013.

55. Secretarial Audit

Your Company had engaged M/s. JMC & Associates Practising Company Secretaries asSecretarial Auditors for FY'22. Secretarial Audit Report is annexed as Annexure –G.

Reply of management to the qualifications made in the Secretarial Audit Report are asunder:

Board Composition Audit Committee and Nomination & Remuneration Committee:

The Company being a CPSE composition of its Board of Directors is the prerogative ofthe President of India as provided under the Articles of Association of the Company. TheCompany made appointment of 4 Independent Directors including one woman IndependentDirector on 14 November 2021. Further the Company made appointment of one additionalIndependent Director on 31 December 2021 and another one on 2 February 2022. Uponappointment of requisite number of Independent Directors Audit Committee and Nomination& Remuneration Committee were re-constituted and accordingly the Company becamecompliant with the requirements w.r.t. composition of Board and above-mentionedcommittees.

56. Changes in Board of Directors and Key Managerial Personnel

Being a Government Company policy on directors' appointment and remuneration is notapplicable and also evaluation of their performance is exempted under the Companies Act2013.

Details of Appointments/ Cessation of Directors and KMPs are as under:

Changes in the Board/ Key Managerial Personnel of the Company during the year and up-todate of the Report are as under:

• Ms. Pomila Jaspal has been appointed as Director (Finance) & Chief FinancialOfficer (CFO) of the Company w.e.f. 19 April 2022.

• Mr. Syamchand Ghosh Mr. Manish Pareek Smt. Reena Jaitly Mr. Vysyaraju AjitKumar Raju have been appointed as Independent Directors of the Company w.e.f. 14 November2021.

• Dr. Prabhaskar Rai has been appointed as Independent Director of the Companyw.e.f. 31 December 2021.

• Dr. Madhav Singh has been appointed as Independent Director of the Companyw.e.f. 2 February 2022.

• Mr. Gudey Srinivas IAS Additional Secretary and Financial Adviser in theMinistry of Petroleum & Natural Gas has been appointed as the Government NomineeDirector of the Company w.e.f. 14.06.2022.

• Mr. Anuarg Sharma Director (Onshore) was also Chief Financial Officer (CFO) ofthe Company during 21.01.2022 to 31.03.2022.

• Mr. Rajni Kant has been appointed as the Company Secretary w.e.f. 29.06.2021.

• Mr. Vivek Chandrakant Tongaonkar was CFO during the period from 01.04.2021 to31.12.2021.

• Mr. Subhash Kumar ceased to be Chairman & Managing Director/ ChiefExecutive Officer and Director (Finance) of the Company w.e.f. 01.01.2022 upon hissuperannuation on 31.12.2021.

• Mr. Rajesh Aggarwal ceased to be Government Nominee Director on the Board w.e.f.24.09.2021.

• Mr. Amar Nath ceased to be Government Nominee Director on the Board w.e.f.14.05.2022.

• Mr. Amitava Bhattacharyya ceased to be Independent Director of the Company oncompletion of his tenure on 11.07.2022.

• Mr. M E V Selvamm ceased to be Company Secretary on 25.06.2021.

• The Board places on record its appreciation for commendable contribution made byMr. Subhash Kumar Mr. Rajesh Aggarwal Mr. Amar Nath and Mr. Amitava Bhattacharyya duringtheir tenure on the Board of your Company.

57. Declaration by Independent Directors:

The Company has received the declaration from Independent Directors confirming thatthey met the criteria prescribed under the provisions of Companies Act 2013 and SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015.

58. Acknowledgement

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 Auditors and Comptroller & Auditor General of India and aregrateful for their continued support and cooperation. Your Directors thank allshare-owners business partners and all members of the ONGC Family for their faith trustand confidence reposed in the Board. Your Directors wish to place on record their sincereappreciation for the unstinting efforts and dedicated contributions put in by the ONGCiansat all levels in spite of the challenging and unprecedented pandemic situation to ensurethat the Company continues to sustain grow and excel.

On behalf of the Board of Directors
New Delhi Dr. Alka Mittal
3 August 2022 Chairman and Managing Director (Addl. Charge)