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Oil & Natural Gas Corpn Ltd.

BSE: 500312 Sector: Oil & Gas
NSE: ONGC ISIN Code: INE213A01029
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VOLUME 1020178
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OPEN 123.75
CLOSE 122.10
VOLUME 1020178
52-Week high 128.45
52-Week low 64.15
P/E 24.02
Mkt Cap.(Rs cr) 155,304
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

It gives me great pleasure to present on behalf of the Board ofDirectors of your Company the 27th Annual Report on the business and operations ofOil and Natural Gas Corporation Limited (ONGC/the Company) and the Audited Statements ofAccounts for the financial year ended 31.03.2020 (FY'20) together with theAuditors' Report and Comments on the Accounts by the Comptroller and Auditor General(CAG) of India.

Despite massive and unprecedented disruption due to COVID-19 during theend of the FY'20 and resultant adverse socio-economic environment your Company alongwith its group companies sustained performance recorded success and growth not only inits core activities of Exploration and Production (E&P) of crude oil and natural gasbut also in other areas of our business.

Crude oil and natural gas production by the Company including itsshare in Joint Ventures (PSC JVs) during FY'20 was 48.25 MMTOE (Million Tons of OilEquivalent) which is about 3.6 per cent less than the production during FY'19 (50.04MMTOE). Your Company has been making all efforts to arrest the decline in the productionfrom its matured fields through various measures like Improved Oil Recovery (IOR) andEnhanced Oil Recovery (EOR) methods and other production enhancement methods. Furtheryour Company has made commendable performance in the core area of exploration byregistering Reserve Replacement Ratio of 1.19. All efforts are being made to enhanceproduction.

During FY'20 the accretion to In-place Hydrocarbons from Companyoperated domestic fields has been 100.22 MMTOE in 2P and Estimated Ultimate Reserve (EUR)was 53.21 MMTOE in 2P. In terms of 3P category in-place hydrocarbon accretion was 98.99MMTOE and EUR was 40.74 MMTOE on account of exploratory efforts from the Company-operatedareas in India.

55.26 MMTOE (about 56% of total 3P In-place volume) has been accretedfrom New Discoveries.

43.73 MMTOE (about 44% of total 3P In-place volume) has been accretedas an outcome of Field growth.

Your Company's share in In-place volume of accretion in the JointVenture (JV) fields in India where it is not the operator have been estimated to theextent of 7.14 MMT O+OEG (3P) and 1.59 MMT O+OEG in EUR (3P).

Your Company had four direct subsidiaries namely ONGC Videsh Limited(OVL) Mangalore Refinery and Petrochemicals Limited (MRPL) Hindustan PetroleumCorporation Limited (HPCL) and Petronet MHB Limited (PMHBL).

Your Company also has nine Associates/ Joint Ventures namely ONGCPetro additions Limited (OPaL) ONGC Tripura Power Company Limited (OTPC) ONGC TERIBiotech Limited (OTBL) Dahej SEZ Limited (DSL) Mangalore SEZ Limited (MSEZL)Indradhanush Gas Grid Limited (IGGL) Pawan Hans Helicopters Limited (PHL) Petronet LNGLimited (PLL) and Rohini Heliport Limited (RHL).

1. Major Highlights: FY'20

The major highlights of your Company during FY'20 are:

a) Standalone production has been 44.57 MMTOE against 45.86 MMTOEduring FY'19.

b) Value Added Products (VAP) production was

3548 (Thousand Tones) KT as compared to 3641 KT during FY'19 -mainly due to less receipt of condensate.

c) Your Company drilled 500 wells (Exploratory wells: 106 Developmentand Side Track wells: 394) in spite of less Rig Months and lockdown due to COVID-19.FY'20 is the fourth consecutive year when your Company has drilled 500 or more wells.

d) During the year gas production commenced

‘Cluster-2 Development of KG-DWN-98/2' in East Coast on05.03.2020 from the well #U3B.

e) Your Company declared total 12 discoveries

(7 New Prospects and 5 New Pools) in its operated acreages.

f) Reserve Replacement Ratio (RRR) from domestic fields was 1.19 withrespect to 2P reserves. With this the Company achieved Reserve Replacement Ratio (2P) ofmore than 1 for the 14th consecutive year.

g) Your Company monetized 22 discoveries. Out of these 4 discoveriesat Vanjiyur Billakurru Nandigamma North and Sundulbari were made in the current yearand remaining 18 pertain to preceding years.

h) Buoyed by the path-breaking successes in well Hatta-2 in Vindhyanand Asokenagar-1 in Bengal on-land Basin last year a conscious effort was undertaken foracquisition of open acreage areas around these discoveries.

i) Panna-Mukta operations were handed over back to the Company by thecurrent operator on 21.12.2019 post expiry of PSC contract with JV partners. Your Companyhas taken over these fields after 25 years. Your Company has taken over operations ofthese fields seamlessly and revived production.

j) Your Company was awarded 15 blocks in different rounds under OpenAcreage Licensing Policy (OALP) bidding.

The Company also bagged all seven Oil and Gas Blocks offered in thefourth bid round of the OALP of the Ministry of Petroleum and Natural Gas (MoPNG).

k) Under the Policy Framework to promote and incentivize EOR method foroil and gas Government of India (GoI) presented an opportunity to your Company to furtherexpand its EOR portfolio. Under this policy

22 onshore and 5 offshore fields qualified for EOR Screening. Fouronshore fields (Balol Santhal Sanand and Gandhar) have already been put under commercialEOR applications. Further commercial EOR schemes have been implemented in two onshorefields (Viraj and North Kadi) after ER policy.

l) Eleven major projects costing around Rs 218822 Million werecompleted during the year. Further as on 31.03.2020 a total of 17 major projects(Development-10 Infrastructure-7) were under various stages of implementation.

m) Three major projects (MHNRD Phase-IV HRP-III PRP-VI) with aninvestment of Rs 64870 Million and envisaged oil and gas gain of 13.62 MMTOE wereapproved.

n) Your Company announced Notice Inviting Offer (NIO) in June 2019seeking paricipation for enhancement of oil and gas production from its 64 marginalnomination fields by infusion of new technology. Notice of Award (NOA) were issued on14.05.2020 to seven successful bidders in 13 contract areas for 49 of these marginalnomination fields.

o) Hazira Dahej Naphtha Pipeline (HDNPL) to facilitate direct supplyof Naphtha from the Company's Hazira Plant to OPaL commissioned in Nov'2019resulting in substantial cost savings in transportation of Naptha to OPaL.

p) Hazira Plant has been successful in production of special grade ofHigh Flash High Speed Diesel (HFHSD) – viz. NATO grade HFHSD for specific use ofIndian Navy being supplied through Indian Oil Corporation Limited (IOCL). Supply of NATOgrade HFHSD started from Hazira Plant from August 2019.

q) Your Company has obtained 9 patents and also filed for another 9patents. r) Y our Company raised USD 300 Million year bond at coupon rate of 3.375% in

International Market lowest by any Indian Issuer for 10 year or longertenure which further demonstrates the credentials of your Company as an integrated energymajor in international investor community.

s) Revenue from operations stood at Rs 962136 Million against Rs1096546 Million (restated) in FY'19.

t) Net profit was Rs 134445 Million against Rs 267646 Million duringFY'19 (restated) mainly due to lower realisation on crude and exceptional itemtowards impairment.

2. Global Recognitions

Your Company has been ranked at 17th among global energy majors in theworld by Platt's Top 250 Global Energy Company Rankings-2019 based on assetsrevenues profits and return on invested capital. Among Indian companies your Company hasbeen ranked at No. 1. The leading international business journal Forbes in its 2020 listhas ranked your Company 5th largest in India and 269th worldwide based on sales profitassets and market value. Further your Company is ranked 190th globally and 3rd in Indiain 2020 ranking update of Fortune Global 500 list.

3. Details of discoveries

Your Company has declared following twelve new discoveries duringFY'20 in its operated acreages which resulted in accretion of 55.26 MMTOE In-placevolume and 7.76 MMTOE of EUR.

Prospect discoveries:

1) Vanjiyur oil discovery #3 in Cauvery On land (L-II Petroleum MiningLease - PML);

2) Billakurru gas discovery #1 in KG On land (Godavari Mining Lease-ML);

3) Nandigama North oil discovery #1 in KG On land (West Godavari PML);

- 4) B-218 oil discovery in Mumbai Offshore (Shallow Water - SW) inextension of NW-MH PML;

5) B-219 oil discovery in Mumbai Offshore (SW) in extension of NW-MHPML;

6) R-12-6 oil discovery in Mumbai Offshore (SW) in Ratna & R-seriesPML; and

7) YS-6-2 gas discovery in KG offshore (Yanam PML).

Pool discoveries:

8) SDP-55 Pay (Mid. Bhuban) gas discovery in SD#12 inSundulbari-Agartala Dome in Assam and Assam Arakan (A&AA) basin;

9) SDP-22 and 23 pays (Upper Bhuban) gas discovery in SD#15 in WestTripura PML in A&AA basin;

10)SD-6 Pay gas discovery in Gummaturu-1 (GMTAA) in RaghavapuramFormation in Kavitam Additional PML in KG Onshore;

11)SD-4 Pay gas discovery in Penugonda-5 (PGAE) in RaghavapuramFormation in Kavitam Additional PML in KG Onshore; and

12)L-II Pay (Bandra Formation) in WO-24-10 (SW WO-24 field) in NW-MHPML in Western offshore Basin.

Out of 12 discoveries made during FY'20 four discoveries i.e.Vanjiyur Billakurru Nandigama North and SDP-55 of well SD-12 were monetized during thesame year. Total 22 discoveries were monetized during FY'20 in addition to above18discoveries of the earlier periods were also monetized during the year.

4. Award of E&P Blocks

Your Company was awarded 15 Blocks under OALP Rounds (OALP-IIOALP-III and OALP-IV) with an area of 32117 Km2 of exploration acreage in differentsedimentary basins of the country - 23732 Km2 of the acreage in onshore while 8385 Km2in offshore (Shallow Water

(SW): 5894 Km2; Deep Water (DW): 2491 Km2). Your Company has alreadystarted exploratory activities in few of the awarded blocks and has acquired 1432.14Square Kilometer (SKM) of 3D data in MN-DWHP-2018/1 block (Mahanadi deep-water) and 310Line Kilometer (LKM) of 2D and 88.22 SKM of 3D seismic data in MB-OSHP-2018/1 block(Mumbai Offshore-SW).

5. Reserve Position and Reserve Accretion

Your Company adopted Petroleum Resource Management System (PRMS) forestimation of hydrocarbon reserves. With this approach as on 01.04.2020 accretion ofIn-Place Hydrocarbons (3P) from the Company operated fields stood at 98.99 MMTOE due toexploratory efforts out of which 56 per cent accretion were on account of NewDiscoveries.

Total In-Place Reserve Accretion during FY'20 in domestic basinswas 106.14 MMTOE including 7.14 MMTOE from the Company's share in PSC JVs.

As on 01.04.2020 total In-Place Hydrocarbon Volume (3P) of the CompanyOperated and JV Fields stood at 9997.22 MMTOE against 10002.63 MMTOE as on 01.04.2019.The Estimated Ultimate Recovery (3P) at the end of FY'20 was assessed at 3286.63MMTOE against 3251.60 MMTOE estimated as on 01.04.2019.

During the year the Estimated Ultimate Recovery (EUR) accretion in 2Pcategory from the Company operated areas in India was 53.21 MMTOE.

Accretion of In-Place Hydrocarbons and Estimated Ultimate Recovery(EUR) by the Company in its operated areas and in Non-Operated areas (JV Share) duringFY'20 and position of In-Place Hydrocarbons and Estimated Ultimate Recovery (EUR) ason 01.04.2020 were as below:

Units in MMTOE

In-place Hydrocarbon volumes and Estimated Ultimate Recovery (EUR)
Accretion during the year 2019-20 Position as on 01.04.2020
Reserve Type Company Operated JV Operated Total Company Operated JV Operated Total
In-place 2P 100.22 2.71 102.93 8150.16 667.82 8817.98
Hydrocarbon
3P 98.99 7.14 106.14 9305.04 692.18 9997.22
EUR 2P 53.21 1.74 54.95 2939.78 119.68 3059.45
3P 40.74 1.59 42.33 3166.74 119.89 3286.63

Note: EUR position as on 01.04.2020 (EUR=Cumulative Production +Reserves + Contingent Resources).

Units in MMTOE

Position of Reserves and Contingent Resources as on 01.04.2020
As per PRMS# Category Company Operated JV Operated Total
Reserves 2P 751.72 20.64 772.35
3P 810.38 20.85 831.23
Contingent Resources 2C 408.38 - 408.38
3C 576.68 - 576.68

Note: # as per PRMS adopted w.e.f. 01.04. 2019.

Units in MMTOE

The details of Reserve Accretion (2P-Proved and Probable) for the last five years inCompany's basins is given in the table below.

Year Company Assets (1) Company's share in JVs (2) Total (3)=(1)+(2)
2015-16 65.58 0.80 66.38
2016-17 64.32 0.22 64.54
2017-18 67.83 1.02 68.85
2018-19 63.02 11.45 74.47
2019-20 53.21 1.74 54.95

Note: Reserve Accretion reported in terms of 2P reserves.

6. Drilling of Wells

Your Company drilled 500 wells during FY'20 including 5exploratory and 10 development wells in KG deep-water block as against 516 drilled duringFY'19 as given under:

Well Description FY'19 FY'20
Exploratory (including shale) 105 106
Development 373 357
Side Tracks 38 37
Total 516 500

7. Oil Gas and VAP Production

Crude oil and natural gas production of the Company along with itsshare in the PSC JVs during FY'20 was 48.25 MMTOE (23.35 MMT of crude oil and 24.90BCM of gas) which was

~3.58% less than production during FY'19 (50.04 MMTOE).

On standalone basis Company's production during the year was44.57 MMTOE; with a decrease of 2.82% (45.86 MMTOE in FY'19).

On standalone basis production from Company operated fields was 20.71MMT of crude oil (21.11 MMT in FY'19) and 23.85 BCM (Billion cubic meters) of Naturalgas (24.75 BCM in FY'19).

Your Company's share of production through JV operations was 2.64MMT of crude oil (3.12 MMT in FY'19) and 1.04 BCM of natural gas (1.06 BCM duringFY'19).

Production of VAP was 3.548 MMT against 3.640

MMT in FY'19 (decreased by 2.6%).

Detaitls of production sales quantity and value productwise duringFY'20 with comparision of FY'19 is as under:

Description Unit

Production Qty

Sales Qty

Value (Rs in Million)
FY'20 FY'19 FY'20 FY'19 FY'20 FY'19
Crude Oil (MMT) 23.35 24.23 21.34 22.50 648363 775729
Natural Gas (BCM) 24.90 25.81 19.40 20.48 193556 188389
Value Added Products (VAP)
Liquefied Petroleum 000 MT 1013 1107 1011 1109 36038 43490
Gas
Naphtha 000 MT 1115 1175 1177 1154 39863 46861
Ethane-Propane 000 MT 345 414 346 414 8155 10063
Ethane 000 MT 536 455 535 456 12937 10109
Propane 000 MT 224 210 219 207 7251 7948
Butane 000 MT 125 114 125 115 4208 4470
Superior Kerosene Oil 000 MT 54 66 55 71 2465 3355
Others* 000 MT 135 99 91 58 4178 2585
Sub Total (VAP) 000 MT 3548 3640 3559 3584 115095 128881
Total 957014 1092999

*Others include ATF Sulphur-P Sulphur-C LSHS HSD LDO and MTO

Production from Overseas Assets - ONGC

Videsh Ltd

Your Company's overseas operations are carried out exclusivelythrough ONGC Videsh Limited (OVL) the wholly owned subsidiary. OVL in turn conducts itsoperations either directly or through its subsidiaries. Production from overseas assetsduring FY'20 was 14.981 MMOE in comparison to 14.833 MMTOE during FY'19; anincrease of approx.1%. The oil production during FY'20 was 9.755 MMT; 3.4% lesscompared to the production (10.097 MMT) during FY'19.

The reduction is mainly because of exit from the Greater Nile PetroleumOperating Company (GNPOC) Sudan in August 2019 and lesser than anticipated productionfrom Vankor field in Russia San Cristobal and Carabobo fields in Venezuela and ACGAzerbaijan. The gas production of 5.226 BCM during the year was

10.3% higher compared to FY'19 production of

4.736 BCM with better performance of Block 6.1 in Vietnam and A1&A3projects in Myanmar.

Oil and Gas production of your Company including contribution from JVsand Overseas assets for FY'20 was 63.23 MMTOE (against 64.88 MMTOE in FY'19).

8. COVID-19 and ONGC's response

The COVID-19 pandemic which originated in late-2019 has now assumedsubstantial global proportions with significant human societal and economic impact.Radical lockdown measures that were executed early on across several countriesaccounting for more than half of the global population and energy consumption to containthe spread of the disease brought the world to a standstill like never-seen before.

While lockdown measures still continue in some form in differentcountries based on the current severity of the pandemic the economic impact of thelockdown was particularly pronounced in the month of April 2020. Like any other sector ofthe economy oil and gas industry too has been adversely affected by the fallout of theCOVID-19 pandemic.

Oil and gas counts among the country's essential and strategicresources and sustaining hydrocarbon operations becomes even more critical underexceptional circumstances such as this. Your Company has taken cognition of its role asthe country's leading upstream player and stands well equipped to sustain this kindof emergency situation. Based on the perceived threat posed by the pandemic and inanticipation of a possible disruption in future the Company has prepared itselfoperationally to ensure critical supplies of oil and gas without compromising the healthand safety of its valued workforce including contract workers.

However the challenges posed by COVID-19 are multi-layered complexand evolving on a daily basis – a situation that is unprecedented for our times. YourCompany's COVID-19 response is premised on preserving ‘People Material andResources' and continuously reassessing its efficacy and effectiveness and alsorevisiting the strategies based on regular updates from operations teams channelpartners and in-house HSE Risk and Medical teams. For better coordination andinformation dissemination OCAY Desk (ONGC Covid19 Assistance for You) a 24x7 Helpdeskfor Covid19 has been established. Further your Company has maintained its averageproduction levels throughout the period as the country has been under a state of lockdownnotwithstanding the supply and logistical constraints imposed by the situation.Furthermore your Company embarked upon a massive country wide well-coordinated crewchange operation named ‘Operation Nishtha' to ensure safe return ofoperational crews who had been performing extended duty for 50-60 days against theirnormal duty pattern of 14 days at various location of field operations.

As a responsible corporate your Company contributed Rs 3000 Millionto PM CARES fund and around Rs 242 Million worth of CSR projects have so far beenundertaken countrywide benefitting more than 43 lakh fellow countrymen throughdistribution of food supplies masks PPE kits sanitizers and funding of ventilators inhospitals. ONGCians on their part donated two days' salary in the month ofApril'20; and one day salary during May and June 2020 amounting to about Rs 255Million to PM CARES Fund.

9. Technology induction/up-gradation

Technology induction/up-gradation in various areas of operations is acontinuous process in your Company to remain effective and competitive. The followingtechnologies were evaluated/ inducted during FY'20:

a. Remote sensing image processing software suite withextensions/add-ins for physics-based atmospheric correction. Software: ERDAS ImagineExtension/ Plug-in: ATCOR: Software would help in basic and advanced rasterimage data processing and pre-processing of multispectral/hyper-spectral visible-shortwaveinfrared as well as thermal infrared image data with built-in extension forradioactive-transfer physics-based absolute atmospheric and in spectral mapping oflithology and identifications of micro-seeps thus providing an interpretative edge overexisting verticals. This would also support batch processing of large data volumesdedicated with built-in spatial modelling functionality to integrate spatial andnon-spatial data. It is useful for 3D geospatial rendering and geoprocessing topographicanalysis and manipulation of DEM/ DSM/ DTM data derived from stereo-photogrammetry SAR orLiDAR for hydrographic and geomorphic derivatives.

b. CUDA FORTRAN Compiler Graphic

Processing units (GPUs) have evolved into programmable highly parallelcomputational units with very high memory bandwidth. GPU designs are optimized for thecomputations found in graphics rendering but are general enough to be useful in manydata-parallel compute-intensive programs common in high-performance computing. Thecompiler has been inducted with the intent of developing specialized software applicationsas a part of R&D activities.

c. CRAM (Common Reflection Angle Migration): A new depth migrationsoftware which is a multi-arrival depth domain solution which works in local angle domainand outputs angle gathers in depth. This is a highly compute (computational) intensive andresource intensive application. CRAM is designed for detailed velocity model building andfor precise imaging in areas with complex structure and velocity for 3D onshore andoffshore data.

d. Big Data analytics: The Company has successfully implemented bigdata analytics using Machine learning approach. This technology can be employed to handlelarge datasets for analysing seismic and micro-seismic data improving reservoircharacterization and simulation etc. The approach was successfully implemented in theprediction of reservoir properties in B-12/ C26 area of western offshore basin duringFY'20.

e. Broadband processing technology: In-house capability forBroadband processing technology of broadband data has been developed which helped inincreasing image resolutions with its analysis on Amplitude Versus Offset leading tosubstantial savings of foreign exchange.

f. E-line Well Intervention Services: The first E-line Interventionjob was carried out in well HSC-2ZH of Heera field in Western Offshore Basin. Rig-lesswell intervention services were deployed with the objective to retrieve Grating LightValve (GLVs) and set these GLVs in the deviated zone (angle: 68) to maximize production.In the past there had been various constraints to retrieve and reinstall GLV in highdeviation wells with other intervention technologies that were deployed in the field. TheGLV change job was successfully completed in this well.

g. Dual Zone Testing (DST): DST has added immense value duringtesting in the Well B189#A by saving significant Rig-days (six days) and by providing realtime data opening a new chapter for future dual zone testing in a single DST run. Use ofdual zone DST helped the Company in improving operational efficiency and also maintainingthe highest level of operational standards along with safety in the offshore environment.

h. GEOTEST1000. A new state-of-the-art technology GEOTEST-TriaxialRock testing laboratory from Vinci Technology France was inducted in June 2019 and willbe helpful in determining the varied range of geo-mechanical properties.

i. Up-gradation of processing system for genomic analysis: Technologyup-gradation of processing system to amplify the target 16s rRNA gene of bacteria foridentification of oil degrading bacteria through Polymerize Chain Reaction wassuccessfully completed during the year. This technological upgradation will help inisolating and finding potent Polycyclic Aromatic Hydrocarbon (PAH) degrading bacteria forbioremediation of soil and effluents contaminated with high concentration of PAH and willbe useful in field implementation project for bioremediation of crude oil contaminant soiland effluents.

j. Under the Make in India campaign Your

Company in collaboration with IOCL has developed the followingmaterials for operational requirements:

1. Base Oils suitable for Drilling Fluids for Low Toxicity Oil BaseMud; and

2. High Pressure Extreme Pressure lubes for Drilling Fluids.

10. Technology developed/ tested in-house and absorbed for IOR/ EORprocesses:

a. North Kadi polymer flood: The chemical

EOR technology i.e. polymer flood in North Kadi field wasconceptualised for commercialization. The scheme was commissioned on 17.01.2020 ahead ofits target schedule of August 2021. The target STOIIP of the scheme is approximately 18MMT and the envisaged incremental oil in polymer flood at end of 15 years will beapproximately 0.769 MMT over base case.

b. Bechraji Polymer flood pilot: Feasibility

Report for polymer flood in Bechraji heavy oil field of Mehsana Assetwas approved. This is for the first time that polymer flood is planned in heavy oil. ThePilot started on 06.05.2019.

c. Commercialization of ASP Flood in Viraj

(K-IX+X): Field scale Alkali-Surfactant-Polymer flooding (ASP)scheme consists of four phases of chemical injection followed by chase water injection.The implementation of the ASP project commenced in July'19.

The commercialization of ASP injection in K-IV sand of Viraj fieldenvisages ASP injection @1120 m3/d through fourteen injectors in inverted 5-spot pattern.It envisaged oil recovery of 0.3 to 0.6 MMT.

d. Cyclic Steam Stimulation (CSS) Pilot in

Lanwa Field: Lanwa CSS pilot is being taken up with an envisagedincremental gain of 0.312 MMT. The scheme is likely to commence during FY'21.

e. Immiscible Gas Injection in Borholla Field: Immiscible gasinjection EOR initiatiated on pilot scale in Borholla Field Jorhat from January 2017.Positive results observe in terms of increase in reservoir pressure and arrest ofproduction decline. Based on success of pilot scheme full field development scheme hasbeen prepared with envisaged incremental oil gain of 0.3

MMT and recovery of 35.6% by 2030. Field

Report (FR) has been approved and scheme is under implementation.

f. Gas Assisted Gravity Drainage (GAGD) in Kasomarigaon Field: GAGDEOR scheme in Kasomarigaon Field Jorhat envisaged incremental oil gain of 0.31 MMT withrecovery of 33% by 2030. FR has been approved and the project is under implementation.

g. Immiscible Gas Injection in Bokabil pay of Khoraghat Field: Theimmiscible gas injection EOR scheme envisaged incremental oil gain of 0.153 MMT andrecovery of 22.7% by 2035. FR has been approved and the project is under implementation.

h. in Gandhar Field: Simulation

Miscible CO2

for GS-9 and GS-11 layers were studied and incremental oil gain of8-10% is expected by 2042 with 75 new injector wells. Lab studies and simulation werecompleted and EOR implementation has been planned by injecting captured from IOCL'sKoyali

CO2

refinery. In this regard Memorandum of Understanding was signed withIOCL on 01.07.2019.

i. LoSal water flood in Mumbai High Field: As a step towardssolution search for offshore EOR single well micro pilot for Low Salinity (LoSal) waterflood was carried out in January 2017 in Mumbai High South field. Based on laboratory andfield results multi-well pilot application of Low Salinity Water Flood (LSWF) in westernperiphery of Mumbai High Field is currently under implementation which envisagesincremental oil gain of 0.846 MMT by 2035. The project is likely to commence duringFY'21.

j. During FY'20 the following technologies were developed by theInstitute of Oil and Gas Production technology (IOGPT) Panvel:

i. "Enzyme Application for Wellbore

Cleaning to Remove Mud Cake in Oil/ Gas Wells to Enhance theProductivity"

- The patented formulation is useful for effective degradation of mudpolymer cake formed in horizontal section of well bore during drilling operations.

ii. "Gelled Emulsified Acid System for Stimulation of CarbonateReservoirs".

The patent formulation is a Gelled Emulsified Acid System with dualproperties of high viscosity and reaction retardation for effective matrix acidization andacid fracturing of carbonate reservoirs.

iii. "Composition and Process for

Preparation of a Fracturing Fluid".

The patent relates to a formulation and process for preparation of apolymer-free fracturing fluid comprising of visco-elastic surfactant.

iv. "Method for Recovering Heavier

Hydrocarbons from Liquefied Natural Gas". The patented processoffers high efficiency in cold energy utilization minimizes infrastructure requirementsand maximizes recovery of heavier hydrocarbons. It also reduces utility requirements andcan be easily integrated with existing LNG regasification terminals.

v. ‘Novel Demulsifiers for Separation of Water from Oil andPreparation thereof" jointly with M/s. National Chemical Laboratory PuneMaharashtra. The patent relates to a low temperature process for demulsification of crudeoil using novel crude oil demulsifier with greater than 95% efficiency.

vi. Copyright for "Software

i-Procal v-1" developed on Visual Basic Platform for Sizingand Rating of Various Process Equipment.

vii. Identification of Suitable Diverters for

Improving Diversion Efficiency for Fracturing Operation in more thanone Perforated Interval: With comprehensive laboratory experimentations and studiesIOGPT has developed a Novel eco-friendly biodegradable particulate Poly Lactic Acid Pillfor application in fluid diversion in hydraulic fracturing operations.

viii. Work-over Fluid for Sub Hydrostatic Gas Wells: An innovativeeco-friendly Polylactide based Self-degradable Loss Control Particulate Pill could bedeveloped by IOGPT after extensive laboratory studies to address fluid loss insub-hydrostatic gas wells.

ix. H2S Reduction in Dispatched Oil from

B-193 Platform: IOGPT recommended scheme of use of sweet gas asstripper gas in a stripper column was successfully implemented in B-193 process complex tosweeten the crude oil.

x. Wax removal by Exothermic Chemical

Reaction: A technology developed by IOGPT utilizes the heatliberated through controlled exothermic chemical between aqueous nitrogenous salts formelting the paraffin deposits. The technology was successfully implemented in wells ofMehsana and Cambay Asset.

11. Other Exploration Initiatives and Activities

a. National Seismic Programme (NSP):

Towards complying with the mandate of

2D seismic Acquisition Processing and Interpretation (API) of 42211LKM assigned by GoI in un-appraised areas of Indian sedimentary basins grouped in 11on-land sectors your Company as on 31.03.2020 has completed data acquisition of40137.38

LKM (95.1%) and processed about 35422.38 LKM (83.9%) of completeseismic lines. The interpretation of data is also being carried out and at the end ofFY'20 your Company completed the interpretation of about 22003.97 LKM (52.1%). Thisdata in turn would contribute in augmenting domestic production of oil and gas. The entireassignment of the on-going API Project would be completed during FY'21.

b. Basement Exploration:

To continue with the efforts towards Basement

Exploration your Company has characterized basement reservoirs indifferent basins during FY'20. It adopted various initiatives including fracturecharacterization and fracture distribution modelling. This included drilling of 22 wellstogether with 11 exploratory wells with Basement as a main objective in different acreagesof the Company falling in A&AA Cambay Cauvery KG and Western Offshore Basins. Aninnovative work flow has been adopted for the first time in Fracture Characterization ofintrusive bodies within Mesozoic Sequence in different blocks viz. GK-28/42GK-OSN-2009/1 GK-OSN-2010/1 GS-OSN-2004/1 falling in Kutch-Saurashtra area in WesternOffshore. The entire study was carried out on facies model of Trap by preparing GeneralCirculation Models and fracture modelling supplemented with stochastic porosity mappingand calibrations. The study helped in identification of five prospects in GK-28/42 areafor future exploration. Basement prospectivity analysis based on Automatic FaultExtraction and Vector Analysis around B-45 B-192 and WO-24 fields south west of MumbaiHigh area has also been completed during the year with identification of two moreprospects. Your Company has been involved in successful planning and monitoring ofbasement reservoir in Thirunagari Pundi and Panadanallur fields of Cauvery Basin. DuringFY'20 Padra-132135136 wells in Cambay basin produced oil and gas; and in totalitythe Production curve has shown a sharp rise in the Trap section in last five years in thePadra area due to optimal placement of wells in the fractured zones. Twenty three newlocations have been firmed up in Padra area for targeting specific fractures.

c. HP-HT Exploration:

High Pressure-High Temperature (HP-HT) and tight reservoirs areknown to have typical challenges in the form of borehole complications fluid designhigh-cost drilling technology HP-HT cementing well construction and other reservoirengineering problems. Despite these challenges your Company has successfully establishedhydrocarbon in HP-HT reservoirs like - Bhuvnagiri Malleswaram Periyakudi KottalankaBantimulli South Yanam shallow Offshore GS-OSN-2004G-4-6 and certain areas of AssamArakan Fold Belt.

During FY'20 HP-HT and tight gas plays had a mixed bag ofsuccesses and failure. Exploration in Yanam shallow offshore in KG basin has led todiscovery of gaseous hydrocarbons from the lower synrift sequence in the well YS-6-2 sub(drilled in FY'19) indicating development of sweet spots. Your Company has notifiedYS-6-2 sub-gas discovery as a new prospect. The successful testing of the well usingstate-of-the-art technologies and testing fluids proved the capabilities of the Company.On the other front the wells in Deendayal block in East Coast where testing withmultiple HP-HT hydro-fracturing did not yield the desired results continue to be achallenge in developing the complex HP-HT reservoirs.

Geo-cellular Modelling dynamic modeling and reservoir simulationstudies of Nagyalanka field in Andhra Pradesh were undertaken based on which ninedevelopment locations were identified and three locations are prioritized for drilling andmultistage hydro-fracturing where an incremental oil production from these locations isaround 300 m3. Multiple hydro-fracturing in the Eastern Offshore field DDW-D5 has beencompleted and during the year two wells DDW-D6 and DDW-D7 in the same area have beentaken up for drilling. Another well B-41-2 in Mumbai Offshore basin was drilled which ontesting did not give any encouraging results.

Presently your Company has been producing from four HP-HT fields viz.Periyakudi in Cauvery Basin Bantumilli South and Nagayalanka fields in KG Onland and DeenDayal West field in KG Offshore.

12. Exploration and Production from Unconventional Sources

a. Coal Bed Methane (CBM):

Currently your Company is operating four CBM blocks in Jharia Bokaroand North Karanpura in Jharkhand and Raniganj in West Bengal. Exploration activities havebeen completed in these blocks and developmental activities are at an advanced stage inthree of these blocks viz. Bokaro Jharia and North Karanpura.

During FY'20 in Bokaro CBM block 26 wells (18 vertical and 8inclined) were drilled and 17 wells were tested. Dewatering has been taken up by loweringartificial lifts. Gas break-in was observed in 13 wells.

In North Karanpura CBM Block total 26 wells were taken up fordrilling; out of which 18 wells have already been drilled. In addition Hydro-fracturinghas been carried out in 19 wells and gas break-in was observed in four of these wells.

b. Shale Gas:

Your Company has assessed shale gas/oil potential in 24 blocks from50 nomination PML blocks identified for shale gas/oil exploration in the country. As on31.03.2020 drilling of 29 wells (including 10 exclusive wells and 19 dual objectivewells) were completed in four basins viz. A&AA Cambay Cauvery and KG Basins.Further two exclusive shale wells (NJSGA in Cambay Basin and MDSGA in KG Basin) and onedual objective well PGAE (KG Basin) were drilled.

Currently one dual objective well LKEAA in KG Basin is under drilling.Efforts are on to establish the shale gas/oil potential in the identified blocks.Indications of presence of shale oil have been recorded in wells like - JMSGA NSGB andNJSGA in Cambay Basin and WGSGA in KG Basin during activation after hydro-fracturing. Onezone within Nawagam Middle Pay (Tight Reservoir) of shale well NGSGA of Cambay Basin washydro-fractured and on activation produced oil. The shale well WGSGA in KG Basin requiresfurther activation whereas in another well GNSGC in Cambay Basin hydro-fracturing job isto be carried out.

c. Underground Coal Gasification:

Your Company had taken an initiative to test the Underground CoalGasification (UCG) technology in India for which all the ground work has been completedwith obligatory inputs for construction and implementation of UCG R&D Pilot Project atVastan Mine block site belonging to GIPCL in Naninaroli Surat district Gujarat toestablish UCG technology. However there is not much progress as all state PSUs ofGujarat including MOU partner Gujarat Industries Power Company Limited backed out ofthe UCG project due to the low calorific value of the Syngas.

Additionally processing of gas at surface shall be a challenge asSyngas has many impurities and contamination and also non-availability of businesspartners from Coal/ Chemical/ Power sectors for business ease during pilot/commercialization. Considering all the factors and current gas price scenario yourCompany might not commit further in this line of business.

d. Gas Hydrate Exploration Program

Your Company has been an active contributor to gas hydratesexploratory research under National Gas Hydrate Program (NGHP) of GoI since its inceptionin the year 1997. So far your Company has played a significant role in successfulexecution of NGHP-01 and NGHP R&D Expedition-02. With the focus on the pilotproduction testing the gas hydrate reservoirs discovered during NGHP-02 (BlockKG-DWN-98/5) have been delineated and Geo-cellular modelling for the gas hydrate richreservoir has been completed to get detailed cell-wise geophysical/reservoir parametersaround the proposed site for pilot production test during next NGHP-03 expedition.

Potential exploitation methodologies like sand control measures welldesign well bore completions and depressurization techniques various productionsimulation modelling and other studies have been carried out in collaboration with USA.

Gas Hydrate Research & Technology Centre (GHRTC) of your Company isinvolved in R&D activities in exploration for gas hydrate prospects in Indian deepwaters and potential exploitation methodologies for gas hydrates through in-house effortsand PAN-IIT collaborations. This institute will also contribute to GoI's plan tocommercialize

Gas Hydrates as energy resource at the earliest.

Presently your Company has been working on identification of gashydrate prospective areas in part of CY-DWN-2004/1 and MNDWN-2002/1 blocks in Cauvery andMahanadi Basin respectively for future field expeditions. Besides your Company has alsobeen working on pre-stack seismic data analysis for Gas hydrates characterization/delineation in part of KGDWN 98/2 Block in KG offshore.

13. Oil & Gas Projects

Projects completed during FY'20

Following eleven major projects (9 development and 2 Infrastructure)costing around Rs 218822 Million were completed during the year:

Sl Project Name No Completion Date Project Cost ( Rs in Million) Oil gain* (MMT) Gas Gain (BCM)
Development Projects
1 NW B-173A Development Plan 03.05.2019 3655 0.76 0.213
2 Field Development Plan of NELP Block KG- ONN-2003/1-NAGYALANKA-KG ONLAND 10.09.2019 2850 0.83 0.343
3 Development of BSE-11 Block 13.10.2019 5442 0.57 0.568
4 4th Phase Development NBP Field 03.10.2019 11136 2.08 -
5 Daman Development Project 31.10.2019 47972 3.811 26.93
6 MH South Redevelopment Ph-III 31.03.2020 49539 7.547 3.864
7 Integrated Development of B-127 Cluster Fields(including B-55 field) 31.03.2020 20209 1.992 4.68
8 Enhanced Recovery of Bassien field through Mukta Panna formations 31.03.2020 46549 1.729 18.83
9 Development of B-147 Field Infrastructure Projects 31.03.2020 5271 0.489 0.708
10 Assam Renewal Project 26.12.2019 23842 - -
11 Construction of one ETP and three ETPs with WIPs 30.11.2019 2357 - -
Total 218822 19.808 56.136

* Oil gain includes condensate

Project under implementation:

As on 01.04.2020 seventeen major projects were under implementationwith a total projected cost of around Rs 625925 Million with envisaged oil and gas gainof ~121 MMTOE.

Projects approved for implementation

During FY'20 the following three offshore projects were approvedfor implementation:

1) Pipeline Replacement Project-VI: Project was approved on30.05.2019 with an investment of Rs 7639.20 Million. Project envisages laying of 11pipeline segments in Mumbai High Neelam & Heera and B&S Assets. The project isexpected to be completed by December 2020.

2) Mumbai High North Redevelopment Phase-IV: Project wasapproved on 22.04.2019 with an investment of Rs 32288 Million. The scheme envisages oneConventional platform new living quarter and revamp/ replacement work and drilling of 43wells. The scheme envisages incremental gain of 4.249 MMT oil and 0.49 BCM gas by March2035. The project is expected to be completed by March 2022.

3) Heera Re-development Phase-III Project:

The project was approved on 31.05.2019 with an investment of Rs 24947Million. The scheme envisages installation of two New Well platform (HM & HN) layingnine pipeline segment of total length 48.5 Kms Top-side modifications at Heera ComplexNeelam Complex and seven well platforms and drilling of 26 wells. The scheme envisagesincremental production of 3.06 MMT oil and 5.82 BCM gas by March 2035. The project isexpected to be completed by May 2022.

In addition the Company's mega offshore deep-water project inEast Coast i.e. Cluster-2 Development of KG-DWN-98/2 was in advanced stage ofcompletion.

First gas achieved on 05.03.2020 after completing tie-back of oneGas Well [U-3-B] to the existing Vashishta facility at water depth of 1300 meters.

14. Financial Highlights:

Your Company earned Profit After Tax (PAT) of Rs 134445 Million downby 49.77% over FY'19 (Rs 267646 Million - restated) and registered Revenue fromOperations of Rs 962136 Million down by 12.26% over FY'19 (Rs 1096546 Million).

Highlights – Standalone Financial Statements

Revenue from Operations : Rs 962136 Million
Profit After Tax (PAT) : Rs 134445 Million
Contribution to Exchequer : Rs 411019 Million
Return on Capital Employed : 22.44%
Debt-Equity Ratio : 0.07:1
Earnings/ Share : Rs 10.69
Book Value/ Share : Rs 154
Particulars Rs in Million
2019-20 2018-19*
Revenue from operations 962136 1096546
Other Income 61050 72652
Total Revenue 1023186 1169198
Profit Before Interest 467083 579773
Depreciation & Tax (PBIDT)
Profit Before Tax (PBT) 203687 400291
Profit After Tax (PAT) 134445 267646
Transfer to General Reserves 50094 154362

* re-stated figures.

15. Change in Share Capital:

There is no change in capital structure of the Company.

16. Dividend

Your Company has paid interim dividend of Rs5 per share of Rs5 each(100%) in March 2020 amounting to Rs62901.40 Million besides Rs12929.40 Millionapplicable Dividend Distribution Tax.

The Board of Directors has not recommended any final dividend with aview to conserve cash for investments in business operations.

The Dividend Distribution policy as formulated by the Company may beaccessed at the web link https://www.ongcindia.com/wps/wcm/ connect/en/investors/policies.

17. Management Discussion and Analysis Report

As per the terms of regulations 34(2)(e) of the SEBI ListingRegulations the Management Discussion and Analysis Report (MDAR) as appended forms partof this Report.

18. Financial Accounting

The Financial Statements of the Company for FY'20 have beenprepared in compliance with the applicable provisions of the Companies Act 2013 includingIndian Accounting Standards (Ind AS) and Guidance Note on Accounting for

Oil and Gas Producing Activities issued by the Institute of CharteredAccountants of India.

The Company has issued two series of Non-Convertible Debentures (NCDs)with issue size of Rs 5000 Million and Rs 10000 Million on 31.07.2020 and 11.08.2020respectively. Both series of NCDs have been listed on Bombay Stock Exchange.

Besides issue of NCDs there have been no material changes andcommitments which affect the financial position of the Company which have occurredbetween the end of the financial year to which the financial statements relate and thedate of this Report.

19. Loans Guarantees or Investments

Your Company is engaged in Exploration & Production (E&P)business which is covered under the exemption provided under Section186(11)oftheCompaniesAct2013.Accordingly the details of loans given investment made orguarantee or security given by the Company to subsidiaries and associates is not reported.

20. Details relating to deposits covered under

Chapter V of the Act:

Your Company has not accepted any deposit during the year. Furtherthere was no outstanding deposit and/or unpaid or unclaimed principal amount or interestagainst any deposit either at the beginning or at the end of FY'20.

21. Credit Rating of Securities:

Details of the Credit Ratings of Debt Securities of the Company as on31.03.2020:

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 Commercial Paper up to Rs10000 crore outstanding at any point of time
2 Credit Rating obtained Rating : Baa2 (Negative) [Including for Issuer Rating] BBB- (Stable) [Including for Issuer Rating] [ICRA]A1+ CARE A1+
3 Name of the credit rating agency Moody's Investors Service S&P Global Ratings 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. ICRA: 18.06.2018 revalidated on 17.09.201811.12.2018 14.03.2019 18.06.2019 22.07.2019 20.11.2019 and 2.03.2020 CARE: 25.06.2018 and revalidated on 21.08.2018 27.12.2018 22.02.2019 29.04.2019 18.06.2019 20.09.2019 17.01.2020 25.02.2020 and 21.03.2020.
5 Revision in the credit rating Yes foreign currency rating and Local issuer Rating is downgraded from Baa1 to Baa2. Not Applicable Not Applicable
6 Reasons provided by the rating agency for a downward revision if any Due to increasing uncertain oil price environment Company's depleted cash reserves and government guidelines that constrains state-owned enterprises' ability to lower dividends Company's baseline credit assessment (BCA) and ratings are materially challenged at the previous rating level and its credit profile insufficient to remain above India's Baa2 sovereign rating. The rating outlook is negative in line with the outlook on India's sovereign rating.

Not Applicable

Not Applicable

Note: Pursuant to downgrade of India's sovereign rating from Baa2to Baa3 on 01.06.2020 Moody's Investor Services had downgraded Company's localand foreign currency issuer and issue rating from Baa2 to Baa3 on 02.06.2020.

22. Investor Education and Protection Fund (IEPF)

Details of transfer of unclaimed dividends and eligible shares to IEPFhave been placed in the Corporate Governance Report which forms part of this AnnualReport.

23. Related Party Transaction

Particulars of contracts or arrangements with related parties asreferred to in Section 188(1) of the Companies Act 2013 is provided in specified FormAOC-2 and placed at Annexure-A.

Brief details about subsidiaries/ Associates and Joint Ventures:

Subsidiaries:

a) ONGC Videsh Limited

ONGC Videsh Ltd (OVL/ONGC Videsh) the wholly-owned subsidiary of yourCompany for carrying on E&P activities outside India has participation in 37 oil andgas projects in 17 countries viz. - Azerbaijan (2 projects) Bangladesh (2 Projects)Brazil (2 projects) Colombia (7 projects) Iran (1 project) Iraq (1 project) Israel (1project) Kazakhstan (1 project) Libya (1 project) Mozambique (1 Project) Myanmar (6projects) Russia (3 projects) South Sudan (2 projects) Syria (2 projects) UAE (1project) Venezuela (2 projects) and Vietnam (2 projects). In FY'20 OVL exited from4 projects viz. GNPOC and Sudan Pipeline Project Sudan PEL-0037 Namibia andPEP57090 New Zealand. Exploratory Blocks GUA OFF-2 RC-9 & RC-10 in Colombia andSatpayev in Kazakhstan are under relinquishment and OVL plans to exit exploratory blockLLA69 in Colombia during FY'21.

Out of these 37 projects OVL is the Operator in 13 projects JointOperator in 6 projects and in remaining 18 projects it is non-operator. OVL has acombination of 14 producing

4 discovered/ under development 16 exploration projects and 3 pipelineprojects. OVL's share in production of oil and oil equivalent gas (O+OEG) is providedunder the heading ‘Production from Overseas Assets by OVL' in para 7 above.

Gross consolidated revenue of OVL for FY'20 was Rs 155383Million (against Rs 146320 Million) and registered Rs 4540 Million as PAT duringFY'20 as against Rs 16823 Million during FY'19. The decrease in profit ismainly on account of lower crude oil price realization and impairment provisions.

Significant Funding activities

5 year Notes of USD 750 Million which were due for redemption in July2019 were duly redeemed by raising a syndicated loan facility of USD 500 Million frominternational commercial banks and the balance requirements were sourced from internalaccruals. 8.54% Unsecured Non-Convertible redeemable Bonds in the nature of Debenturesissued for value aggregating Rs 3700 Million which were listed on National Stock Exchangewere duly redeemed on 06.01.2020. Further OVL refinanced USD 1000 Million during March2020 out of USD 1775 Million falling due in November 2020.

Memorandum of Understanding (MoU)

Eastern Cluster Cooperation Agreement (ECCA) was signed on 17.09.2019between Rosneft Russia and Indian Consortium consisting of OVL BPRL IOCL and OIL towiden the scope of cooperation between India and Russia in E&P sector.

Significant events in the area of Exploration & Operations:

1. OVL achieved the highest ever production of 14.981 MMTOE inFY'20.

2. ACG Azerbaijan:

The execution of Azeri Central East project involving engineeringfabrication and installation of processing and drilling rig platform commenced in April2019. The project is scheduled to deliver first oil in the year 2023 and envisagescumulative incremental production of 300 Million Barrels (MMBBLS).

3. Sakhalin 1 Russia

During FY'20 Sakhalin-1 Consortium decided to build 6.2 MMT/yearRussian Far East LNG plant as a part of Chayvo Phase-2 gas development. Phase 2development envisages monetizing huge gas reserves in excess of 6 Trillian Cubic Feet(TCF) pending for long due to lack of suitable monetization option.

During FY'20 Sakhalin-1 project achieved highest ever yearlyaverage production of 258.5 Thousand Barrels of Oil Per Day (KBOPD).

4. Rovuma Area-1 Mozambique :

Area 1 Concessionaires have taken

Final Investment Decision (FID) for the initial two-train Golfinho/AtumProject on 18.06.2019.

Area-1 has executed LNG Sale Purchase

Agreements (SPAs) for a significant volume.

Area-1 consortium obtained First Mover status with approval of theShared Facilities Construction Proposal from Government of Mozambique (GoM) on 20.03.2019.This enables Area-1 to lead the construction of the onshore facilities shared by Area-1and Area-4.

5. GPOC South Sudan: First oil achieved from El-Nar and El-Toorfield of Block

1 2 & 4 on 30.04.2019 and 30.05.2019 respectively.

6. SPOC South Sudan: Block 5A Exploration and Production SharingAgreement (EPSA) extension has been offered by Government of South Sudan up to the year2037 along with the extension of exploration period for 54 months i.e. till July 2024. Theresumption activities are underway in the field while execution of addendum to EPSA isawaited.

7. CPO-5 Colombia: The Block is currently producing from twowells. Further 3D seismic API and drilling of exploration and appraisal wells has beenplanned.

8. BM SEAL-4 Brazil :

Two wells were drilled during the year and initial results areencouraging. Further studies are in progress.

The first well MB-2 encountered oil and gas and during Testing (DST)the well flowed approx. 600000 m/d of gas and 475 m/d of condensate. The second wellMB-9 additional exploratory well over MWP encountered oil & water in different sandcolumns. Currently all discoveries made in Moita Bonita PAD are being evaluated byOperator for an Integrated Development Project.

9. A1 and A3 Myanmar:

Under new Exploration Program in

Block A-3 drilling of 3 exploratory wells commenced on 24.11.2019.

Drilling of first well Kissapanadi was completed on 26.12.2019 withinsignificant gas show.

Second well Mahar-1 has been established as a new gas discovery withan estimated gas in place (GIIP) of 1056 billion cubic feet/BCF (2C). The well flowed gasat 38 MMSCFD (Million standard cubic feet per day) with 12 m net pay interval.

Drilling of third exploratory well Yan Aung Myin-1 was completedon 04.04.2020 with insignificant gas show.

10. Block 06.1 Vietnam:

Drilling of exploratory well PLDCC-1X-

ST1 has achieved success with the discovery of Permeable Low-DensityCellular Concrete (PLDCC) field. Plan is in progress for drilling of an appraisal well in2020.

PSC Extension for the block 06.1 in view of discovery in PLDCC isunder process.

Direct Subsidiaries and Joint Ventures of OVL:

i. ONGC Nile Ganga B.V. (ONGBV): ONGBV a subsidiary of OVL isengaged in E&P activities directly or through its subsidiaries/ JVs in Sudan SouthSudan Syria Venezuela

Brazil and Myanmar. ONGBV holds 25%

Participating Interest (PI) in Greater Nile Oil Project (GNOP) Sudanwith its share of oil production of about 0.097 MMT during FY'20. OVL has exited fromGNOP Sudan w.e.f 31.08.2019. ONGBV also holds 25%

PI in Greater Pioneer Operating Company (GPOC) South Sudan. Productionfrom GPOC South Sudan resumed on 25.08.2018 after prolonged shutdown since December 2013and produced 0.564 MMT in FY'20.

ONGBV holds 16.66% to 18.75% PI in four

Production Sharing Contracts in Al Furat Project (AFPC) Syria. Due toforce majeure conditions in Syria there was no production in AFPC project duringFY'20. ONGBV holds

40% PI in San Cristobal Project in Venezuela through its wholly ownedsubsidiary ONGC Nile Ganga (San Cristobal) BV with its share of oil & oil equivalentgas production of about 0.175 MMTOE during FY'20. ONGBV holds

27% PI in BC-10 Project in Brazil through its wholly owned subsidiaryONGC Campos Ltd. with its share of oil and oil equivalent gas production of about 0.577MMTOE during

FY'20. It also holds 25% PI in Block BM-

SEAL-4 located in deep-water offshore Brazil through its wholly ownedsubsidiary ONGC

Campos Ltda. ONGBV also holds 8.347%

PI in South East Asia Gas Pipeline Co. Ltd. (SEAGP) for onshorePipeline project Myanmar through its wholly owned subsidiary ONGC Caspian E&P B.V.

ii. ONGC Narmada Limited (ONL): ONL has been retained foracquisition of future E&P projects in Nigeria.

iii. ONGC Amazon Alaknanda Limited (OAAL):

OAAL a wholly-owned subsidiary of OVL holds stake in E&P projectsin Colombia through Mansarovar Energy Colombia Limited (MECL) a 50:50 joint venturecompany with Sinopec of China. During FY'20 OVL's share of oil and oilequivalent gas production in MECL was about 0.419 MMTOE.

iv. Imperial Energy Limited (IEL): IEL a wholly-owned subsidiaryof OVL incorporated in Cyprus has its main activities in the Tomsk region of WesternSiberia Russia. During FY'20 Imperial Energy's oil and oil equivalent gasproduction was about 0.241 MMTOE.

v. Carabobo One AB: Carabobo One AB a subsidiary of OVLincorporated in Sweden indirectly holds 11% PI in Carabobo-1 Project Venezuela. DuringFY'20 OVL's share of oil and oil equivalent gas production was about 0.094MMTOE.

vi. ONGC BTC Limited: ONGC BTC Limited holds 2.36% interest in theBaku-Tbilisi-Ceyhan Pipeline ("BTC") which owns and operates 1768 km oilpipeline running through Azerbaijan Georgia and Turkey. The pipeline mainly carries crudeoil from the ACG fields from Azerbaijan to the Mediterranean Sea.

vii.Beas Rovuma Energy Mozambique

Limited (BREML): BREML was incorporated in British Virgin Islands(BVI) and has been migrated to Mauritius w.e.f. 23.01.2018. OVL holds 60% shares in BREMLand the balance 40% are held by Oil India Ltd. BREML holds 10% PI in Rovuma Area 1Mozambique.

viii.ONGC Videsh Atlantic Inc. (OVAI): OVL has setup a Geologicaland Geophysical (G&G) Centre at Houston USA through its wholly owned subsidiary ONGCVidesh Atlantic Inc. The Centre caters to requirement of G&G studies for potential newacquisitions of OVL including G&G studies of its existing portfolio of projects.

ix. ONGC Videsh Rovuma Limited Mauritius:

ONGC Videsh Rovuma Limited a wholly owned subsidiary of OVL wasincorporated in Mauritius for re-structuring the 10% PI in

Rovuma Area 1 Mozambique.

x. ONGC Videsh Rovuma Limited India: OVL transferred its entire10% PI in Rovuma Area-1 to its wholly owned subsidiary ONGC Videsh Rovuma Limitedincorporated in India on 01.01.2020.

xi. ONGC Videsh Singapore Pte. Ltd.: This company was incorporatedby OVL on 18.04.2016 in Singapore for acquisition of shares in Vankorneft Russia throughits subsidiary ONGC Videsh Vankorneft Pte

Limited (OVVL). OVVL holds 26% shares in

Vankorneft Russia and its share of production during FY'20 was4.981 MMTOE.

xii.Indus East Mediterranean Exploration

Ltd.: Indus East Mediterranean Exploration Limited a wholly ownedsubsidiary of OVL was incorporated in Israel on 02.02.2018 and engaged in E&Pactivities related to Block-32 Offshore Israel.

xiii.ONGC Mittal Energy Limited (OMEL):

OVL along with Mittal Investments Sarl (MIS) promoted OMEL a jointventure company incorporated in Cyprus. OVL and MIS together hold 98% equity shares ofOMEL in the ratio of 49.98:48.02 remaining 2% shares are held by SBI Capital Markets Ltd.OMEL also holds 1.20% of the issued share capital of ONGBV by way of Class-C shares issuedby ONGBV exclusively for Syrian Assets and is being financed by Class-C Preference Sharesissued by ONGBV.

xiv.SUDD Petroleum Operating Company:

SUDD Petroleum Operating Company (SPOC) a Joint Operating Companyincorporated in South Sudan to operate in Block 5A South Sudan in which OVL Petronas andNilepet of South Sudan holds 24.125% 67.875% and 8% PI respectively.

Block 5A is located in the prolific Muglad basin and is spread over anarea of about 20917 SKM.

xv. MozLNG1 Holding Company Ltd:

The MozLNG1 Holding Company Ltd incorporated at Abu Dhabi Global Market(ADGM) UAE by the Area-1 Concessionaires with shareholding in proportion to the PIholding in Area-1 Concession Contract as part of the Area 1 Project Finance Structure forthe initial two train LNG development. OVL and BREML as Concessionaires in

Area 1 Concession Contract each holds 10% shareholding in MozLNG1Holding Company Ltd. The MozLNG1 Holding Company Ltd owns 100% shares of Mozambique LNG1

Company Pte Ltd incorporated at Singapore for Marketing and Shippingactivities and Moz LNG1 Financing Company incorporated ADGM for project financingactivities.

xvi. Falcon Oil & Gas B.V. (FOGBV): FOGBV was incorporated inNetherlands on 02.02.2018. OVL's wholly owned subsidiary

ONGBV holds 40% shares in FOGBV IOC and BPRL holds 30% shares eachthough their respective Dutch subsidiaries. FOGBV holds 10% PI in Lower Zakum Concessionfor a period of forty years with effect from 09.03.2018. During FY'20 OVL'sshare of oil production was about 0.800 MMT. b) Hindustan Petroleum Corporation Limited(HPCL)

Your Company holds 51.11% stake in HPCL a Schedule ‘A'Maharatna and listed entity. HPCL owns and operates 2 major refineries – one atMumbai (7.5 Million metric tonnes per annum - MMTPA) and the other one at Visakhapatnam(8.3 MMTPA). It also owns and operates the largest Lube Refinery in the country with acapacity of 428 TMT (thousand metric tonne). It has second largest share of productpipelines in India with a network of more than 3370 Kms.

During FY'20 HPCL refineries achieved combined refiningthroughput of 17.18 Million Metric Tonnes (MMT) with capacity utilization of 109%. Boththe Refineries were up-graded to produce BS VI compliant transportation fuels and BS VIgrade petrol (Motor spirit-MS) and high speed diesel (HSD) were produced and distributedPan India basis as per the timelines stipulated by Government of India. Mumbai Refineryachieved highest ever LOBS (Lube Oil Base Stock) production with 478 TMT. Vizag refineryhas started the production of VLSFO (Very Low Sulphur

Fuel Oil of Sulphur less than 0.5%) to meet the regulatory requirementof MARPOL (Marine Pollution) Protocol. Lower Refinery throughput during FY'20(compared to FY'19 throughput of 18.44 MMT) was mainly due to planned shutdownsrequired for upgradation of the refineries for BS VI fuel and revamps of secondary unitsat Vishakhapatnam Refinery to cater to upcoming new primary processing units in VisakhRefinery Modernization Project (VRMP) a brown field expansion of the refinery atVisakhapatnam.

HPCL achieved combined Gross Refining Margin of USD1.02 per barrelduring the year as compared to USD 5.01 per barrel during FY'19. Gross refiningmargins (GRMs) were lower in comparison to FY'19 mainly due to inventory losses andreduced cracks in Diesel Liquefied Petroleum Gas (LPG) and Fuel Oil.

During FY'20 HPCL achieved the highest ever sales volume of 39.6MMT compared to FY'19 sales of 38.7 MMT. Domestic sales of Petrol increased by 4.7%compared to FY'19 while LPG sales grew by 7.3 per cent.

HPCL commissioned record number of 1194 new retail outlets and 245 newLPG distributorships during FY'20 taking the number of total retail outlets to 16476and LPG distributors to 6110 as on 31.03.2020. With its thrust on natural gas as a newline of business HPCL has commenced CNG sales at 476 outlets. Construction activities atChhara LNG gasification terminal are in progress. HPCL is also participating in crosscountry natural gas pipelines in Joint venture with other companies.

Revenue from operations of HPCL for FY'20 was Rs 2874169 Million(against Rs 2969463 Million) and registered Rs 26373 Million as PAT during FY'20as against Rs 60287 Million during FY'19. Decrease in PAT was mainly because ofimpact of inventory losses due to sharp fall in crude prices and exchange ratefluctuations. For FY'20 HPCL has proposed a final dividend of Rs 9.75 per share.

Direct Subsidiaries of HPCL

i. Prize Petroleum Company Limited

Prize Petroleum Company Ltd (PPCL) is a wholly owned subsidiary ofHPCL. PPCL is the upstream arm of HPCL and is in the business of Exploration andProduction (E&P) of Hydrocarbons as well as providing services for management ofE&P blocks.

ii. HPCL Bio Fuel Limited

HPCL Biofuels Ltd (HBL) is a wholly owned subsidiary of HPCL. Thecompany was incorporated on 16.10.2009 as a backward integration initiative to foray intomanufacture of ethanol. HPCL Biofuels Ltd. (HBL) is a wholly owned subsidiary company of

HPCL. HBL was promoted as a backward integration initiative to enableHPCL's foray into manufacturing of Ethanol for blending in Petrol. HBL presently hastwo integrated Sugar-Ethanol-Cogeneration plants at Sugauli and Lauriya in the state ofBihar.

iii. HPCL Rajasthan Refinery Limited

HPCL Rajasthan Refinery Ltd. (HRRL) is a jointventureofHPCLandGovernmentofRajasthan with 74% equity participation by HPCL and balance26% by Government of Rajasthan.

HRRL is setting up a 9 MMTPA capacity Greenfield refinery cumpetrochemical complex in the state of Rajasthan. HPCL and the Government of Rajasthanentered into a revised Memorandum of Understanding on 18.04.2017 for the construction ofthe said Refinery with revised parameters. The revised Joint Venture Agreement was signedon 17.08.2017.

iv. HPCL Middle East FZCO

HPCL Middle East FZCO a 100% Subsidiary of HPCL was incorporated on11.02.2018 as a free zone company under Dubai Airport Free Zone and Establishment Card wasissued on 22.03.2018. The company established for trading of lubricants greasespetrochemicals and refined petroleum products commenced its operations thereby supplyingHP Lubricants to 11 Countries.

c) Mangalore Refinery and Petrochemicals Limited (MRPL)

Your Company holds 71.63 % equity stake in

MRPL a Schedule ‘A' Mini Ratna company and listed entitywhich is a single location

15 MMTPA Refinery. Further HPCL another subsidiary of your Companyalso holds

16.96% in MRPL.

MRPL's refinery is established with a versatile design withcomplex secondary processing units and a high flexibility to process Crudes of variousAPI delivering a variety of quality products. Refining throughput of MRPL duringFY'20 was lower at 14.14 MMT against 16.43 MMT during FY'19 mainly due tounprecedented water scarcity faced during first quarter and minor landslide during secondquarter of operation aftermath of the intensified monsoon. This culminated in negativeGRM of USD 0.23/bbl for FY'20 (USD 4.06/bbl during FY'19).

FY'20 Financial Performance: In stressed global marketconditions MRPL registered a standalone turnover of Rs 607515 Million (Rs 723151Million in FY'19) and recorded Net Loss of Rs 27076 Million (against Net Profit ofRs 3320 Million in FY'19). GRM for MRPL was negative at USD 0.23/bbl (againstpositive USD 4.06/bbl during FY'19). The primary reason for reduction in GRM/profitability were disruptions in operations due to water shortage during Q1 landslideinside refinery during Q2 and impact of COVID in the last quarter.

Subsidiary of MRPL

ONGC Mangalore Petrochemicals Limited

(OMPL)

ONGC Mangalore Petrochemicals Limited

(OMPL) is a subsidiary of MRPL holding 51% and the balance 49% is heldby your Company.

OMPL has set-up Aromatic Complex with an annual capacity 914 ThousandTons Per Annum (KTPA) of Para-xylene and 283 KTPA of Benzene in Mangalore Special EconomicZone (MSEZ) as a value-chain integration project aligning with MRPL's operations.OMPL has introduced a new product viz. Paraffinic Raffinate in the export market andstarted sale of Heavy Aromatics in domestic market. Performance of OMPL during FY'20was severely affected due to unprecedented fall in International prices of Para-Xylene andBenzene owing to various factors like Capacity additions in China Crude volatility andUS-China Trade issues etc. OMPL maintained excellent safety record of zero LTI

(Lost time Injury) consistently during past 4 years.

d) Petronet MHB Limited (PMHBL)

During FY'20 your Company along with its subsidiary HPCLacquired additional 34.56% shares of PMHBL and post-acquisition both your Company andHPCL are maintaining the equal share holding as increased at

49.99%. This acquisition resulted better cost economics revenuemaximization and better synergetic opportunities for ONGC group.

PMHBL owns and operates a 362 kilometer (KM) multi-product pipeline totransport of MRPL's products from Mangalore to the hinterland of Karnataka. Totalthroughput of PMHBL for FY'20 was 2.93 MMT against 3.36 MMT in FY'19.

Associates and Joint Ventures:-

e) ONGC Petro additions Limited (OPaL)

OPaL is a mega petrochemical project established in Dahej SEZ andincorporated on 15.11.2006 for utilizing in-house production of C2-C3 and Naphtha fromHazira and Uran units of the Company. Total project cost of OPaL was Rs 308260 Million.Your Company

GAIL and GSPC holds 49.36% 49.21% and 1.43% of equity shares of OPaLrespectively.

OPaL was commissioned in 2016-17 and has been ramping up its productionin phases. OPaL has established itself in domestic/ export market with sale of prime gradeproducts. OPaL operated at average 88% capacity in FY'20; and aggregated more than1.6 Million Tones of polymer and chemical sales.

OPaL has obtained Food Grade approvals for all polymer grades as perUS-FDA EU and Indian standard. OPAL has also obtained RoHS-III approval for all thesepolymer grades as per EU directive. During the year much awaited Hazira Dahej NaphthaPipeline was commissioned which will reduce the feed cost to OPaL and increase theprofitability.

Total Income of OPaL during FY'20 was Rs 102071 Million(against Rs 97854 Million in FY'19) and posted loss after tax of Rs 20897 Million(Rs 14203 Million during FY'19).

f) ONGC Tripura Power Company Limited (OTPC)

OTPC was incorporated on 27.09.2004 as a joint venture of yourCompany. Currently your Company holds (50%) along with the Government of Tripura (0.5%)and IL&FS Energy Development Co. Ltd. (IEDCL - an IL&FS subsidiary) (12.03%);IL&FS Finance (13.79%) and Global Infrastructure Partner 23.5%.

OTPC has a 726.6 MW gas based Combined Cycle Power Plant at PalatanaTripura with two generating units with equal capacity. The basic objective of the projectis to monetize idle gas assets of the Company in landlocked Tripura State and to boostexploratory efforts in the region. Power evacuation for both the units is done through 663KM long 400 KV double circuit transmission network by NorthEast Transmission CompanyLimited (NETC) a joint venture of Power Grid Corporation OTPC and Governments of theNorth-Eastern states. Average Plant load factor (PLF) for

FY'20 was 61%; mainly due to shut down of one unit for about sixmonths.

Total Income of OTPC during FY'20 was Rs 12765 Million(against Rs 14558 Million in FY'19) and PAT was Rs 705 Million (against Rs 2139Million during FY'19).

g) ONGC TERI Biotech Limited (OTBL)

OTBL is a JV formed and incorporated on 26.03.2007 by your Company(49.98%) along with The Energy Research Institute (TERI)

(48.02%) and the balance 2% shares are held by individuals. OTBL hasdeveloped various Biotechnical Solutions for oil and gas Industry through collaborativeresearches involving the Company and TERI. These technologies include BioremediationParaffin Degrading Bacteria (PDB) Wax Deposition Prevention (WDP) and Microbial EnhancedOil Recovery (MeOR) which are being provided to oil and gas industries both in India andabroad.

Total Income of OTBL during FY'20 was Rs 262 Million(against Rs 245 Million in FY'19) and PAT was Rs 75 Million (Rs 67 Million duringFY'19).

h) Dahej SEZ Limited (DSL)

DSL a 50:50 JV of the Company along with Gujarat IndustrialDevelopment Corporation was formed and incorporated on 21.09.2004 for establishing amulti-product SEZ at Dahej. Your Company has set up C2-C3 Extraction Plant as avalue-chain integration project in this SEZ which serve as feeder unit to ONGCPetro-additions Limited JV of your Company.

Revenue from Operations of DSL during FY'20 was Rs 649 Million(compared to Rs 578 Million in FY'19) and PAT was Rs 461 Million (against Rs 330Million during FY'19).

i) Mangalore SEZ Limited (MSEZL)

MSEZ is a Special Economic Zone promoted by the Company with an equitystake of 26% along with KIADB (23%) IL&FS (50%) OMPL (0.96%) and KCCI (0.04%). MSEZwas set up and incorporated on 24.02.2006 for development of necessary infrastructure tofacilitate and locate industrial establishments including OMPL. MSEZ is operational sinceApril 2015.

Total Revenue of MSEZL during FY'20 was Rs 1741 Million(against Rs 2068 Million in FY'19) and loss after tax of Rs 316 Million (PAT Rs 24Million during FY'19).

j) Pawan Hans Limited (PHL)

PHL an Associate of the Company with 49% holdings was formedwith the Government of India holding remaining 51% of the capital primarily for cateringto the logistic requirements of offshore and other remote area oil fields. PHL is a MiniRatna-I Category PSU having fleet of 43 helicopters. The Government of India is in theprocess of identifying a strategic investor for its entire holding and hence your Companyhas also decided to exit PHL along with the Government.

k) Petronet LNG Limited (PLL)

Petronet LNG Limited (PLL) a JV of the Company which wasincorporated on 02.04.1998 with 12.50% equity holding along with identical stakes held byother Oil PSU co-promoters viz. IOCL GAIL and BPCL is a listed Company. PLL one of thefastest growing world-class companies in the Indian energy sector has set up thecountry's first LNG receiving and regasification terminal at Dahej Gujarat andanother terminal at Kochi Kerala. While the plant at Dahej terminal has 17.5 MMTPAcapacity the Kochi terminal has capacity of 5 MMTPA.

PLL has recorded total Revenue of Rs 355620 Million during FY'20as compared to Rs 383954 Million in the previous year. Further PAT of PLL was Rs 27609Million in FY'20 as compared to Rs 22306 Million in FY'19. PLL has proposed afinal dividend of Rs 7 per share for FY'20.

l) Indradhanush Gas Grid Limited (IGGL)

Your Company has subscribed 20% equity capital in IGGL a JVcompany along with IOCL GAIL OIL and NRL formed and incorporated on 10.08.2018 for thepurpose of laying 1656 KM pipeline covering north-east states with a Capex of Rs 92650Million. IGGL has initiated the project related activities. MoPNG has already approvedViability Gas Funding (VGF) of Rs 55590 Million which is 60% of the project cost.

Total Income of IGGL during FY'20 was Rs 17 Million (against Rs 6Million in FY'19) and the net loss during the year stood reduced at Rs 53Million (Rs 121 Million during FY'19).

m) Rohini Heliport Limited (RHL):

Your Company has subscribed 49% equity capital in Rohini HeliportLimited with

Government of India's stake as 51% RHL is a mirror company ofPawan Hans Limited incorporated on 07.01.2019 for enabling disinvestment of PHL.

n) Companies Which Have Become/ Ceased To Be Company'sSubsidiaries Joint

Ventures And Associates Companies during FY'20

a) Companies which has become subsidiaries: NIL.

b) Companies which has ceased to be subsidiaries: NIL.

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

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

24. Start-up Initiative

‘ONGC Start-up Fund' (the Fund) was initiated with Rs 1000Million on the 60th foundation day of the Company (on 14.08.2016) towards fosteringnurturing and incubating new ideas related to energy sector and to promoteentrepreneurship among young Indians. Through the Fund your Company intends to create anecosystem that is conducive for growth of Start-ups having technology-enabled ideas in theenergy sector.

The Fund provides support measures such as seed capital hand-holdingmentoring market linkage and follow-ups through engagement with selected Start-Ups incollaboration with SINE of IIT Bombay and L-Incubator of IIM-Lucknow (Incubators).

The Fund periodically invites application for support from buddingStart-ups. Seven proposals for investments aggregating to

Rs 315 Million have been firmed out of which

Rs 210 Million has been disbursed. There are several proposals frommany Start-ups seeking funding support which are at different stages of evaluation anddue-diligence for investment.

Solar Chulha Initiative

Your Company also supported installation of

86 solar electric Chulhas and 5 solar thermal Chulhas in Betul villagein Madhya Pradesh as a pilot project. These Chulhas are working efficiently and thevillagers have migrated to these newly installed Chulhas for their domestic purposes.

25. Health Safety and Environment (HSE)

Being a high risk industry safety of employees is the top-mostpriority of your Company. Hydrocarbon Exploration & Production (E&P) operationsare being carried out in varied climatic regions ranging from deserts to coastal areashilly terrains to forests shallow to deep water and also in ultra-deep water areas.E&P activities often interact with the ecosystems and may have physicochemical andbio-geochemical impact on the surrounding Environment. Your Company being a responsibleCorporate makes all efforts for protection and preservation of Environment.

The Company has a robust HSE Policy including e-Waste Policy in linewith the existing rules regulations and guidelines. Your Company has established adedicated Institute viz. Institute of Petroleum Safety Health and Environment Management(IPSHEM) at Goa for research and development in the field of Health Safety andEnvironment Management apart from conducting training programs.

Your Company takes all the requisite measures to minimize the impact ofE&P activities on the environment by adoption of clean technologies for gaseousemissions liquid effluent and solid waste generated out of its operations. Your Companyhas implemented globally recognized

Quality Health Safety and Environment (QHSE) Management Systemconforming to requirements of QHSE Certifications ISO 9001 ISO 14001 and ISO 18001(OHSAS) and certified by reputed agencies for Occupational Health and Safety AssessmentSeries at all the operational units. Corporate guidelines on online incident reportinginvestigation and compliance of audit observations have been developed and implemented formaintaining uniformity throughout the organization in line with the best internationalpractices.

HSE Highlights

Internal Safety Audits and External Safety Audits

To check the conformity of activities and processes with the existingHSE management systems as well as to prevalent rules regulations guidelines andstandards regular internal audits are being conducted by multi-disciplinary teams of theCompany. During the year Internal Safety Audits were conducted at 266 Installations. Inaddition external safety audits are conducted periodically by Oil Industry SafetyDirectorate (OISD) and the Directorate General of Mines Safety (DGMS).

OISD conducts Safety Audits on regular basis. During FY'20 55Safety Audits/ Surprise Safety Audits and 2 Pre-Commissioning Audits were conducted byOISD. Compliance status for the observations raised by OISD as on 31.03.2020 was 94.05 percent.

DGMS is a Regulatory Agency under the Ministry of Labour andEmployment Government of India in matters pertaining to occupational safety health andwelfare of persons employed in mines including oil-mines. It carries out periodicinspections of onshore facilities of the Company. During FY'20 DGMS carried outinspections at 143 Installations. Compliance status for the contraventions raised byagency as on 31.03.2020 was 97.69%.

Concerted efforts are being made to liquidate Safety AuditRecommendations within the stipulated timelines. Expected date of completion forcompliance of audit observations is firmed up based on the criticality and volume of workinvolved. Suitable compensatory safety measures are put in place till the auditobservations are complied with.

Waste Water Management: Your Company monitors the usage of wastewater and maintains the quality of effluent discharged conforming to statutoryrequirements specified for discharge of treated effluent at surface/ subsurface. TheCompany has 32 number of Effluent Treatment Plants across onshore work centers to treatapprox. 92710 m3/day of waste water produced during E&P operations. For Offshoreeffluent treatment Produced Water Conditioners have been installed at process platforms.Sewage Treatment Plants for treatment of sewage water generated are also provided atoffshore facilities.

Solid Waste Management: For environmentally safe disposal of oilywaste OTBL has developed specialized patented technology for bioremediation of oilysludge/oil contaminated soil. The technology uses a consortium of Hydrocarbon degradingbacteria which reduces the Total Petroleum Hydrocarbons levels in waste/soil to less than1 per cent. During FY'20 65225 Metric Tones of oily sludge/oil contaminated wastehas been bio-remediated.

Environmental Clearances: During the year FY'20 your Companyreceived 10 environment clearances (ECs) from Ministry of Environment Forest and ClimateChange (MoEFCC) for carrying out exploration development and production activities in 77fields in onshore and offshore areas. Approvals were also accorded for drilling of 302exploratory and 6 development wells setting up of a Central Processing Facility DeenDayal Development project in KG Offshore and Expansion of Onshore Gas Terminal and CentralProcessing Plant in KG Offshore.

Regular interactions with Forest officials of Central and StateGovernments followed by their field visits to the Company's operational sites atJorhat and Damoh resulted in issuance of new Guidelines dated 30.09.2019 by MoEFCCsimplifying the procedures for carrying out seismic surveys and exploratory drilling inforest areas and resulting in substantial savings of resources and time for E&Pindustry

Since 2013 your Company has been accredited by Quality Council ofIndia (QCI) – National Accreditation Board for Education & Training (NABET) as anEIA Consultant Organization which is a prerequisite for preparing EIA reports for accordof ECs by MoEFCC. The Company has been reaccredited third time in a row with validityextending up to 26.05.2021. The accreditation is beneficial in securing the ECs forCompany's projects.

Other Initiatives:

An ambitious awareness campaign implemented during FY'20 on TenSafety Rules has been carried out at all installations in which 10789 personnelparticipated. In addition 52500 personnel have participated since its launch duringFY'17.

HSE Index introduced during FY'18 for benchmarking installationson various parameters like detection and suppression system environment parametersevacuation systems and equipment integrity has been implemented at all work centres.

Regular Mock drills are being conducted at installations/rigs to checkthe efficacy of preparedness against defined emergency scenarios. During FY'20nearly 13000 mock drills were conducted.

Mines Vocational Training - MVT is being imparted to both the Companyemployees and contract personnel through 10 in house training centres. During FY'204110 personnel (1035 Company Employees and 3075 Contractual Personnel) were trained.

In order to enhance the safety standards as well as ensure proactivemeasures your

Company has taken a unique initiative of issuing Predictive SafetyAlerts using data analytics. Analysis of past accidents data near misses and auditobservations for the last five years is carried out and correlated to publish predictivesafety alerts based on which Installations are advised about the potential risks and themitigation measures in order to minimise the risks.

Safety Alert is a brief guidance material that highlights an incidentor unsafe practice and outlines the required action to prevent their occurrence. Theinformation is disseminated to stakeholders for evaluation and taking appropriate action.Such alerts are regularly uploaded on Company's internal portal ongcreports.net forwider circulation and awareness among those involved in operations along with SafetyAdvisories for generic audit observations and their compliances to help improve the safetymeasures.

Your Company renewed the agreement entered with OTBL on 08.05.2019 forfurther ten years for Bioremediation of Oily Wastes and other Microbial techniques forenhanced Oil recovery at various work centre of the Company.

Your Company is a participant member of

Oil Spill Response Limited (OSRL) UK for availing Tier-III Oil SpillResponse services. During FY'20 Annual Preparedness Review was organized with OSRLon 21.01.2020 at Mumbai which was attended by participants from Offshore Assets.

World Environment Day was celebrated on 05.06.2019 on the UnitedNations

Environment Program (UNEP) Theme - Air Pollution at all work centresof the Company. At the registered office of the Company a talk by Director General of theCentre of Science and Environment and leading environmentalist Padmashree Ms. SunitaNarain was organized.

An e-book titled "Connecting with the

Biodiversity of ONGC" was released based on information collectedduring baseline studies for EIA of the E&P projects of operational areas of theCompany. The book is a repository of natural sights forest land pastures and waterbodies and also the various species of flora and fauna which include endangered and nearthreatened species. This repository basically aims to create awareness/sensitization bysharing information which would be useful for all the inhabitants of the Company'soperational areas.

Your Company showcased its efforts on Bio-diversity Conservation at the13th Conference of Parties of the Convention on migratory species on the theme"Migratory species connect the planet and together we welcome them home" underthe aegis of United Nations Environment Programme hosted by India during 17.02.2020 to22.02.2020 at Gandhinagar Gujarat in which 129 countries participated. As an exhibitoryour Company showcased efforts for Bio-diversity conservation and future conservationaction plan of the migratory species. "Green Hub project" sponsored by theCompany was also showcased wherein youth from across North East India were trained inwildlife videography who are currently engaged in various assignment related toconservation of biodiversity and documentation.

26. Carbon Management and Sustainable

Development

Clean Development Mechanism (CDM):

Climate change and global warming arising out of human activities isthe biggest concern globally. Meeting the challenges require proactive innovative solutionto sustain economic activities with minimal impact on environmental systems. So far theCompany has registered 15 CDM projects with the United Nations Framework Convention onClimate Change (UNFCCC) under the Kyoto protocol demonstrating its commitment towardsprotection of our environment and sustainable development. During FY'20 followingthree new projects are under validation process for registration as CDM projects:

5 MW solar power project at Ankleshwar

1 MW solar power project at IPSHEM-Goa and

Rooftop solar power projects at work centres of Gujarat Assam andDehradun.

As on 31.03.2020 your Company had 2209417 Certified EmissionReductions (CERs) in CDM equivalent]. account [1 CER = 1 ton CO2

Greenhouse Gas (GHG) Accounting and Mitigation:

Your Company aims to reduce GHG emissions by focusing on energyefficiency. Greenhouse Gas Accounting of the Company is being carried out every year basedon GHG protocol and is disclosed in Sustainability Report of the Company.

Global Methane Initiative:

The Global Methane Initiative (GMI) is an action-oriented initiativefrom United States Environment Protection Agency (USEPA) to reduce global fugitive methaneemissions to enhance economic growth promote energy security improve the environmentand reduce greenhouse gases emission. Under this programme during FY'20 GMI surveywas conducted at Uran Plant Hazira Plant and 17 production installations of Assam Asset.Since 2007 the Company could prevent approximately 20.48 MMSCM of methane gas leakages into the atmosphere with an environmental benefit of approximately 306250 ton EquivalentCO2 (TCO2e) through this programme.

Solar and wind energy initiatives:

During FY'20 the Company has implemented 7 MW of Solar PowerPlants and projects for 6.6 MW are under the final stages of implementation. The totalInstalled Capacity of Solar power as on 31.03.2020 was 25 MW. The solar capacity of theCompany would increase further to 50 MW by 2020-21. Further two wind power projects - 102MW at Jaisalmer Rajasthan and 51 MW at Kutch Gujarat – are operational. The totalinstalled capacity of Renewable Energy of your Company as on 31.03.2020 stood at 178 MW.

Replacement of conventional lights with LED lighting:

During FY'20 73000 conventional lights were replaced with LEDlights across various work centers of the Company taking the total to 2.75 Lakhs LEDLights under implementation of LED lighting program. This initiative has helped inreduction of carbon intensity and saving of Rs 357 Million annually.

Micro Turbines and Dynamic Gas Blending system:

As a part of sustainability initiative this year also the use ofMicro Turbines and Dynamic Gas Blending systems (in diesel engines of drilling rig) weretaken up in different locations of the Company.

Carbon Capture Storage and Utilisation (CCSU)

CCSU is the only clean technology capable of decarbonising majorindustrial sectors including refining and petrochemicals. As per the recommendations ofTask force constituted by Ministry of Coal under the aegis of TIFAC (TechnologyInformation Forecasting and Assessment Council) roadmap of CCUS for India is beingprepared. Your Company being party to the task force proposed CO2-EOR as the toppriority area for utilization of anthropogenic CO2. Further your Company signed an MoUwith Indian Oil Corporation Limited (IOCL) on 01.07.2019 for based EOR in Gandhar CO2captured

Field of the Company by injecting CO2 from IOCL's Koyali refineryinto specially prepared wells. Presently feasibility study is being conducted by theCompany for assessing the requirements of surface facilities quantity of required andfinancial implications.

CO2

Electric Vehicle pilot project

Your Company promotes the use of clean fuel in its operations as wellas transportation. In March 2019 first batch of 5 electric vehicles were flagged offunder pilot project at Delhi in collaboration with Energy Efficiency Services Limited ajoint venture of Central Public Sector Enterprises (CPSEs) under Ministry of Power GoI.

Video Conferencing- a step towards mitigating scope-3 emission

Taking advantage of the digital revolution like broadband and web-camyour Company has adopted video conferencing for interaction of top management with keyexecutives across the work centers. Presentations and business meetings are being heldthrough video conferencing which reduces the travel cost saves executive man-hours andmitigating scope-3 emissions from air travel. Besides that your Company has beenutilising video conferencing and other audio-video means extensively to mitigate theconstraints due to pandemic COVID-19.

Sustainable Water Management

Different types of water management projects like rain water harvestingprojects sewage treatment plants and re-use of produced water were implemented in linewith existing policies of the Company. A large rainwater harvesting project at the IPSHEMGoa harvests the runoff water from the large institute campus in a 1000 m3 capacity groundtank and utilizes the harvested water for its various utilities and for conductingtraining programmes on fire fighting. As a way forward Uran plant of your Company will besetting up a 10000 m3/day capacity Seawater Desalination Plant scalable to 20000 m3/daycapacity which will eliminate the total fresh water requirement of the plant in coupleof years from now. With this project alone your Company's water footprint would bereduced initially by 16% and upto 32% with the scaling up of capacity of the plant.

ONGC Group Sustainability Report:

Your Company launched its independently assured ‘SustainabilityReport' in the year 2009-10 and from then onwards the Company gradually expanded theboundary of reporting by including its subsidiaries and JVs. The report is prepared basedon Global Reporting Initiative (GRI) Standard and independently assured through thirdparty assurers as per AA 1000 AS Standard. ONGC Group Sustainability report FY'19 wasreleased on 19.03.2020. Copy of reports may be accessed at www.ongcindia. com

27. Business Responsibility Report

Clause (f) of sub-regulation (2) of regulation 34 of SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 stipulates that the AnnualReport shall contain a Business Responsibility Report describing the initiatives taken bythe listed entity from an environmental social and governance perspective in the formatspecified. Accordingly the Business Responsibility Report for FY'20 has beenappended to this Annual Report.

28. Internal Financial Control System

Your Company has put in place adequate

Internal Financial Controls by laying down policies and procedures toensure the efficient conduct of its business safeguarding of its assets prevention anddetection of frauds and errors accuracy and completeness of the accounting records andtimely preparation of reliable financial information commensurate with the operations ofthe Company. Effectiveness of Internal Financial Controls is ensured through managementreviews self-assessment and independent testing by the Internal Audit Team indicatingthat your Company has adequate Internal Financial Controls over Financial Reporting incompliance with the provisions of the Companies Act 2013 and such Internal FinancialControls are operating effectively. The Audit Committee reviews the Internal FinancialControls to ensure its effectiveness for achieving the intended purpose. IndependentAuditors Report on the Internal Financial Controls of the Company in terms of Clause (i)of Sub-Section 3 of Section 143 of the Companies Act 2013 by the Statutory Auditors isplaced along with the Financial Statements.

29. Human Resource Development

Your Company's operations are in challenging terrains –deserts jungles border areas remote fields and offshore. Your Company truly values itsHuman Resource i.e. ONGCians who commit themselves towards pursuit of E&P ofhydrocarbons to ensure India's Energy security. To keep their morale high yourCompany extends welfare benefits to employees and their dependents by way of comprehensivemedical care education housing social security and other facilities.

There were 30105 employees on rolls as on 31.03.2020. These ONGCiansdedicated themselves for securing excellent performance of your Company during the year.The workforce in-take strategy pursued by your Company caters to meet the demands ofmaintaining a steady flow of talent in a business which is characterized by high risksand uncertainties enormous costs rapid technological advances physically challengingwork environment fluctuating product prices and growing competition. Your Company'stalent management strategy is focused on building an optimal and competent workforce tomeet business needs and it is also centered around workforce planning and talentacquisition performance management capacity building career growth succession planningand leadership development.

During FY'20 15416 executives and 5044 non-executives wereimparted appropriate training in relevant domains/ areas spanning 163156 executive and17966 non-executive training days.

During FY'20 697 Graduate Trainees (GTs) in five batches werefamiliarized with various E&P activities as part of ‘Induction Training'.For the first online onboarding training programs were organized for 442 newly joined GTsfrom all work centers. Induction Program for Unionized Category Employees on theirelevation to executive cadre was introduced by ONGC Academy in association with SkillDevelopment Centres. Five training programmes were conducted through foreign faculty whichwere attended by 118 participants. Your Company also pursued structured initiatives formaintaining a vibrant academia – industry interface through Chairs participation invarious academia-industry level forums which conduct workshops seminars andconferences.

Major Emergency Management trainings were conducted through in-housefaculty for the first time for Offshore Installation Managers. Four-day EmergencyManagement training was introduced and second line managers of Offshore were trained asper Emergency Response plans of the Company.

In 2019 your Company introduced two focused leadership developmentprogrammes for junior and middle level executives - FuEL programme (Future Energy Leaders)for E1 to E3 level executives and OYL programme (ONGC Young Leaders) for E4 and E5 levelexecutives. These customized programmes were in association with Centres of Excellences(IIMs) to groom young executives as future leaders who will take ONGC to the next level.

Your Company also initiated a program for identification ofcompetencies and development of leadership for its Mid – Level executives throughOnline Development Centres with detailed Individual Development Plans for theirdevelopment based on the assessments.

To keep the workplace lively and the workforce engaged and vibrantyour Company also conducted ‘Business Games' to hone the business acumen of itsexecutives through business quizzes business simulations and case-study presentations.During FY'20 a total of 260 teams and 1029 executives participated in such games.

Similarly ‘Fun Team Games' (FTG) were organized for E0 andbelow level employees to inculcate MDT (Multi-disciplinary Team) concept and spirit ofcamaraderie and belongingness to the organization which was very well received by theparticipants. 158 Teams comprising 632 employees participated in FTG organized duringFY'20.

Employee Welfare Trusts

Your Company has established following Trusts for welfare and socialsecurity of employees:-

Employees Contributory Provident Fund (ECPF) Trust managesProvident Fund accounts of employees of your Company.

Post-Retirement Benefit Scheme (PRBS) Trust manages the pensionfund of employees of your company. The Scheme was converted into a Defined ContributionScheme in accordance with DPE guidelines in November 2013.

Composite Social Security Scheme (CSSS) formulated by your Companyprovides an assured ex-gratia payment in the event of unfortunate death or permanentdisability of an employee while in service. In case of separation other than Death/Permanent total disability employee's own contribution along with interest isrefunded.

Gratuity Fund Trust established for payment of gratuity as per theprovisions of the Gratuity Act.

Y our Company has ‘Sahyog Trust' for its Sahyog Yojanato provide ex-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. The beneficiaries under this scheme include casual contingent dailyrated part-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 50.10 Million was disbursed by the Trust during FY'20 to 1170beneficiaries.

Your Company has instituted Asha Kiran Scheme to meet theemergency needs of the ex-employees retired prior to 01.01.2007. The scheme was launchedas per DPE guidelines with a corpus of 1.5% of profit before tax.

Implementation of Govt. Directives for Priority Section

Your Company complies with the Government directives for PrioritySection of the society. The percentage of Scheduled Castes (SC) and Scheduled Tribe (ST)employees were 15.4 percent and 10.5 percent respectively as on 31.03.2020.

Your Company is fully committed for the welfare of SC and STcommunities. The following welfare activities are carried out by your Company for theirbetterment in and around its operational areas:-

Annual Component Plan

Under Annual Component Plan for SC/ST every year allocation of Rs 200Million is made. Out of this Rs 60 Million is distributed amongst all the work-centres ofthe Company for taking up welfare activities for communities in and around areas of theCompany's 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. The amount under component plan is utilised for taking upvarious measures for the welfare and up-liftment of the needy people of the saidcommunities. This fund is especially meant for providing help and support in Education andTraining Community Development and Medical and Health Care.

Scholarship to meritorious students

Your Company provides 1000 scholarship for meritorious SC and STstudents for pursuing higher professional courses at different Institutes and Universitiesacross the country in Graduate Engineering MBBS PG courses of MBA and Geo-Sciences. Themajor feature of the scheme is that the scholarships have been equally divided for bothBoys and Girls students. The scholarship amount is extended up to Rs 48000/- per annumper student subject to conditions of the scheme.

Women Empowerment

Women employees constituted 7.3 per cent of your Company'sworkforce as on 31.03.2020. During the year various programmes for women empowerment anddevelopment including programmes on gender sensitization were organized. Your Companyactively supported and nominated the women employees for programmes organized by reputedagencies. All middle level women executives underwent an Online Development Centre programfor identification assessment and development of leadership competencies. Specialengagement initiatives were undertaken such as story-writing contest for sharing theirunique journeys of courage and inspiration from the female perspective.

Disclosure under the Sexual 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. Four complaints of sexual harassment werereceived during FY'20. Skill enhancement programs were conducted for members of ICCto equip them with requisite skill for enquiring into complaints. The Company also issueddetailed guidelines for dealing with complaints of sexual harassment. A dedicated page onPrevention of Sexual Harassment with useful resources on creating awareness has beenadded on the internal portal of the Company.

Work-Life Balance

Your Company believes in 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. During the year outboundprogrammes with families were also organized at various work centres. In additioncultural programmes involving employees and their families were also conducted involvingONGC Officers' Mahila Samiti and Resident Welfare Associations of Company'sresidential colonies. Your Company has an adventure wing named ‘ONGC HimalayanAssociation' which organizes adventure programmes like mountaineering trekkingwater rafting snow skiing desert safari Aero sports etc. which adds towards employeemorale engagement team spirit camaraderie stress management and spirit to explore theunknown.

30. Industrial Relations

Your Company maintained harmonious

Industrial Relations throughout the Company. Man-days loss due tointernal industrial action was reported as ‘NIL' for FY'20.

31. Compliance under the Right to Information

Act 2005

Your Company has a well-defined mechanism in place to deal with the RTIapplications received under the Right to Information Act 2005. Your Company has adesignated senior level officer as a ‘Nodal Officer' to oversee itsimplementation. The applications received are processed by the 22 executives designated as‘Central Public Information Officers' (CPIOs) in various work centres across theCompany in compliance of Sections 5(1) and 5(2) of the Act. The particulars of all thequasi-judicial authorities under the ambit of RTI Act 2005 have been uploaded on theCompany website (www.ongcindia.com) for information of the general public. Further incompliance of Government directives your Company is successfully processing the onlineapplications under the Act.

Your Company received 1973 applications (including 34 transferred byother Public Authorities) during FY'20 and 206 RTI applications were carried forwardfrom FY'19. Against 1848 applications information as sought were provided 57applications were rejected and 44 applications were transferred to other publicauthorities in accordance with the provisions of the RTI Act 2005. There were 422 firstappeals which were disposed-off during the period. Additionally 94 Second Appeals whichwere listed for hearing before the Central Information Commission during FY'20 werealso processed.

32. Implementation of Official Language Policy

Your Company makes concerted efforts for promotion and implementationof Official Language. In this regard some of the steps 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 ‘kavi-gosthies' kavi-sammelans andHindi plays were organized at various work centres.

Various programmes for promotion of Hindi were organised at all workcentres of the

Company during ‘Rajbhasha Fortnight' (14-28.09.2019) and‘Vishwa Hindi Diwas' (10.01.2020).

17th Annual Official Language Review Meeting was held during24-25.07.2019 at Guwahati.

A two days Special Hindi workshop and

‘Twarit Anuvad Prashikshan' program during 27-28.02.2020 forofficial language officers posted at various work centres of the Company and Members ofTown Official Language Implementation Committee Dehradun was organised.

Your Company bagged ‘Sarvotkrisht

Rajbhasha Puruskar' from ‘Vishwa Hindi Parishad' on09.09.2019 at New Delhi.

Hindi Teaching Scheme of Government of India was implementedeffectively at all regional work centres of the Company.

E-Roster of Employees regarding working knowledge of Hindi has been putin place.

Hindi e-magazines were published by all work centres.

Paperless office has been made bi-lingual for effective implementationof Official Language policy. Besides Unicode has been installed in SAP platform forenabling bilingual working.

33. Sports

Your Company continued its support for development of sports in thecountry by providing employment opportunities to sportspersons and also grantingscholarships to budding talents in 25 games. Your Company also sponsored various sportsassociations/ federations/ sports bodies for organizing sports events as well asdeveloping sporting infrastructure. The support has enabled many sportspersons to achieveexcel and bring home laurels for the nation and the organization. Some of the significantachievements of our sportspersons during the year were as follows:

Nine ONGCians participated in 21st Commonwealth Championships held atCuttack in July 2019 and won 6 Gold 3 Silver and 1 Bronze medal.

Mr. B. Sai Praneeth (Badminton) Mr. Harmeet

Desai (Table Tennis) and Ms. Swapna Barman (Athletics - On Scholarship)were conferred the prestigious "Arjuna Award" instituted by GoI for FY'19.

The total number of National Awardees in the organization stood at 55:

o Padma Bhushan: 1 (Mr. Pankaj Advani);

o Padma Shri: 6 (Mr. Pankaj Advani Mr. Koneru Humpy and Mr. ViratKohli and three former ONGCians - Mr. Jaspal Rana Mr. Virender Sehwag and Mr. GautamGambhir);

o Rajiv Gandhi Khel Ratna: 2 (Mr. Pankaj Advani and Mr. Virat Kohli);

o Arjuna Award: 44;

o Dhyanchand Award – 2 (Mr. Bhupender Singh and Mr. ManpreetSingh).

Ms. M. R. Poovamma secured individual bronze medal for the country inAsian Championships at Doha and won 2 silver medals in relay races. Ms. Poovamma is alsopart of the Indian Squad which is being trained for 2021 Tokyo Olympics.

Mr. Om Prakash Singh who is currently on training for Tokyo 2021participated in the SAF games held at Kathmandu in December 2019. He won a silver medal inthe games.

ONGCian Mr. Sai Praneeth is the first

Indian male badminton player in 36 years to win a bronze medal at theBWF World Championships in 2019 after Mr. Prakash Padukone in 1983. Sai Praneeth washonoured with the Arjuna Award in 2019. He also won Bronze medal at the WorldChampionships in Basel and Japan Open 2019.

ONGCian Mr. Pankaj Advani Padma Bhushan

Padma Shri Rajiv Gandhi Khel Ratna Arjuna Awardee won GOLD Medal inWorld Billiards Championship (150-up format) in Myanmar Sept 2019 in Asian SnookerTour Bangalore April 2019 IBSF World Team Snooker Championship Myanmar Sept 2019 andin ACBS Asian Snooker Championship Qatar June 2019.

He won Silver medal in ACBS Asian Team Snooker Doha June 2019 WorldCup Snooker Team Championship Qatar July 2019 and brought Bronze medal for the countryin IBSF World 6 Red Snooker Championship Myanmar Sept 2019 and in ACBS Asian BilliardsChampionship Chandigarh May 2019

Arjuna Awardee Mr. Shiva Thapa won Gold

Medal and was declared as Best Boxer in 2nd India Open InternationalBoxing Tournament at Guwahati in May 2019. Earlier in Asian Boxing Championship atBangkok Thailand in April 2019 he won Bronze Medal for India and Gold Medal inPresident's Cup International Boxing Tournament at Astana (Kazakhstan) in June 2019.Gold Medal in Olympic Test event at Tokyo in Oct 2019. Bronze Medal in 71st BoxingInternational Tournament Stranja Cup at Stranja (Sofia) in Jan 2020.

Padmashri and Arjuna Awardee Ms. Koneru

Humpy won the FIDE Women Grand Prix Tournament at Russia in Sept 2019and finished 2nd in the FIDE Women Grand Prix Tournament Monaco and established clearlead in the FIDE Women GP Series 2019-20 and won the World Women Rapid Chess Championship2019 Russia in Dec 2019. She won the Cairns Cup Women International Tournament St.Louis USA in Feb 2020.

ONGCian Mr. Virat Kohli has been ranked as one of the world's mostfamous athletes by ESPN and one of the most valuable athlete brands by Forbes. In April2019 he was named the captain of India's squad for the 2019 Cricket World Cup.

In Nov 2019 he scored his 70th century (27 Test and 43 ODI) ininternational cricket which makes him the second most successful centurion in ODI cricketafter Sachin Tendulkar. Virat Kohli has been given honours as Captain of ICC ODI Team ofthe Year: 2019 ICC Test Team of the Year: 2019 ICC Spirit of Cricket: 2019.

Your Company organised the 3rd edition of the Para Games on 03.12.2019on International Disability Day in which 210 PWDs from different work-centres of theCompany including more than 20 players from 6 Oil PSUs participated. ONGC is the onlypublic sector enterprise to organise Para Games to promote sporting talent of persons withdisabilities.

34. Corporate Social Responsibility (CSR)

Your Company meticulously take care of its social responsibility and inthis pursuit has spent Rs 6069.67 Million during the FY'20 which is higher thanspending obligations of the Company for the year. Major highlights of CSR activities forthe FY'20 is as under:

60% of CSR expenditure towards School

Education Nutrition and Healthcare as notified by DPE for CSR ofCPSE's in 2019-20;

33% of CSR Budget executed towards

Swachhta Projects as directed by MoPNG;

CSR expenditure aligned towards achieving the objectives of UNSustainable Development Goals covering 12 out of 17 sustainable development goals;

20 Aspirational Districts adopted in 11 states where 599 projects havebeen implemented amounting to Rs 61.51 Million benefitting 4 lakhs rural population;

4.30 Lakh patients benefitted through healthcare initiatives; and

4.98 Lakh students benefitted through educational initiatives.

A report on CSR and details of enclosed with this report at Annexure-B.

Efforts of the Company has been recognized at various forums includingthe prestigious International recognition of S&P Platts Global Energy Awards 2019– the only Indian company to receive this award for CSR. Other host of awards areplaced at Annexure-C of this Report.

35. Awards and Accolades

Consistent with the trend in preceding years your Company its variousoperating units and its senior management have been recipients of various awards andrecognitions. Detail of such accolades is placed at Annexure-C.

36. Regulatory or Courts order

During FY'20 there was no order or direction of any court ortribunal or regulatory authority which either affecting Company's status as a goingconcern or which significantly affecting Company's business operations.

37. Directors' Responsibility Statement

Pursuant to the requirement under Section 134 of the Companies Act2013 with respect to Directors' Responsibility Statement it is hereby confirmedthat:

a) In the preparation of the annual accounts the applicable accountingstandards were followed and there was no material departures from the same;

b) The Directors had selected such accounting policies and applied themconsistently and made judgments and estimates that were reasonable and prudent so as togive a true and fair view of the state of affairs of the Company as at 31.03.2020 and ofthe profit of the Company for the year ended on that date;

c) The Directors had taken proper and sufficient care for themaintenance of adequate accounting records in accordance with the is provisions of theCompanies Act 2013 for safeguarding the assets of the Company and for preventing anddetecting fraud and other irregularities;

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

e) The Directors had laid down internal financial controls which werebeing followed by the Company and that such internal financial controls were adequate andwere operating effectively; and

f) The Directors had devised proper systems to ensure compliance withthe provisions of all applicable laws and that such systems are adequate and operatingeffectively.

38. Corporate Governance

A detailed report on Corporate Governance as stipulated underRegulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations2015 is appended and forms part of the Annual Report.

39. Statutory Disclosures

YourDirectorshavemadenecessarydisclosures as required under variousenactments including the Companies Act 2013 and the SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015.

40. Annual Return

Pursuant to Section 134(3)(a) read with Section

92(1) of the Act Annual Return of the Company is placed athttps://www.ongcindia.com/wps/ wcm/connect/en/investors/annual-return/

41. Particulars of Employees

Your Company being a Government Company the provisions of Section197(12) of the Companies Act 2013 and relevant Rules issued thereunder are notapplicable.

The terms and conditions of the appointment of Functional Directors aresubject to the applicable guidelines issued by the Department of Public Enterprises (DPE)Government of India. The salary and terms and conditions of the appointment of CompanySecretary a Key Managerial Person of the Company and other employees are also in linewith the parameters prescribed by the DPE.

42. Energy Conservation

The information required under section 134(3) (m) of the Companies Act2013 read with the Companies (Accounts) Rules 2014 is annexed as Annexure-D.

43. Audit Committee

In compliance with Section 177(8) of the Companies Act 2013 thedetails regarding Audit Committee is provided under Corporate Governance Report whichforms part of this Annual Report.

There was no instance during FY'20 where the Board had notaccepted any recommendation of the Audit Committee.

44. Vigil Mechanism:

Details regarding Vigil Mechanism is provided under CorporateGovernance report which forms part of this Annual Report.

45. Risk Management Policy and Implementation:

The Company has a Board approved Risk Management Policy. Risk frameworkand Risk portfolio are periodically monitored by the Risk Management Committee AuditCommittee and the Board.

46. Auditors

The Statutory Auditors of your Company are appointed by the Comptrollerand Auditor General of India (CAG). There were 6 chartered accountants firms namely M/s.MKPS & Associates M/s. G.M. Kapadia & Co. M/s. R.

Gopal & Associates M/s. Kalani & Co. M/s. SARC &Associates and M/s. R.G.N. Price & Co. who were appointed as Joint Statutory Auditorsof the Company for FY'20.

The Statutory Auditors have been paid a total remuneration of Rs 46.97Million towards audit fees certification and other services. The above fees are inclusiveof applicable service tax/ GST but exclusive of re-imbursement of travelling and out ofpocket expenses.

47. Auditors' Report on the Accounts

Statutory Auditors Reports and the comments of CAG on standalone andconsolidated accounts of the Company are placed along with respective financial statementsfor FY'20.

There is no qualification in the Statutory Auditors Reports on theFinancial Statements of the Company for FY'20.

The Comments of Comptroller & Auditor General of India (C&AG)and the reply of the Management thereto form part of this Report is annexed as Annexure-E.

During FY'20 there has not been any fraud reported by theAuditors of the Company.

48. Cost Audit

There were 6 cost accountants firms namely M/s. M. Krishnaswamy &Associates M/s. Musib & Co. M/s. Chandra Wadhwa & Co. M/s. BandopadhyayaBhaumik & Co. M/s. N. D. Birla & Co. M/s. Joshi Apte & Associates appointedby the Board as Joint Cost Auditors of the Company for FY'20. Necessary cost auditreport shall be prepared by the said auditors and filed with the Central Government as perrequirements under the Companies Act 2013.

49. Secretarial Audit

Your Company had engaged M/s. Ashu Gupta & Co. Company Secretariesin whole-time practice as Secretarial Auditors for conducting Secretarial Audit forFY'20. Their report is enclosed as Annexure-F which shall form part of thisReport.

Reply of management to the qualifications made in the Secretarial AuditReports are as under:-

1. Board Composition & Evaluation:

The Company being a CPSE composition of its Board of Directors is theprerogative of the President of India as provided under the Articles of Association of theCompany. The Ministry of Corporate Affairs (MCA) vide notifications dated 05.06.2015 and05.07.2017 exempted government companies from the provisions relating to appointmentperformance evaluation and remuneration of directors. Further it is learnt thatDepartment of Public Enterprises (DPE) has recommended the proposal to SEBI for similarexemption to government companies under the provisions of Listing Regulations in view ofthe distinct nature of the administration of CPSEs.

2. Related Party Transaction (RPT):

In terms of RPT Policy all the contracts/ arrangements/ transactionsentered by the Company during FY'20 with related parties were in the ordinary courseof business and on an arm's length basis. Transactions with related parties have beendisclosed under Annexure-A to this report. SEBI Regulations provide for priorapproval of related party transactions excepting the transactions with governmentcompanies and wholly-owned subsidiaries.

The qualification is with respect to the requirement for prior omnibusapproval under Regulation 23 of the Listing Regulations since such approval was accordedby the Audit Committee at the meeting held on 26.07.2019. In this regard necessary systemis put in place to avoid this technical non-compliance in future.

50. Directors

Your Company being a Government Company policy on directors'appointment and remuneration is not applicable and also evaluation of their performance isexempted vide notification dated 05.06.2015 issued by the Ministry of Corporate Affairs.

Appointments/Cessation etc.

Since the 26th Annual General Meeting held on 30.08.2019 change incomposition of Board is as under-

i. S/Shri Ajai Malhotra Shirish B Kedare and

K M Padmanabhan Independent Directors ceased to be the directors ofthe Company w.e.f. 20.11.2019.

ii. S/Shri Sumit Bose Deepak Sethi and Vivek Mallya IndependentDirectors ceased to be the directors of the Company w.e.f. 31.01.2020.

iii. Shri Santrupt B Misra Independent Director ceased to be thedirector of the Company w.e.f. 06.02.2019.

iv. Shri Rajesh Madanlal Aggarwal has been nominated by MoPNG asGovernment Nominee Director w.e.f. 24.03.2020 in place of Shri Rajiv Bansal.

v. Shri Om Prakash Singh has been appointed as the Director (Technology& Field Services) of the Company w.e.f 01.04.2020 in place of Shri Navin ChandraPandey who superannuated on 31.03.2020.

vi. Shri Anurag Sharma has been appointed as the Director (Onshore) ofthe Company w.e.f 01.06.2020 in place of Shri Sanjay Kumar Moitra who superannuated on31.05.2020.

The Board places on record its appreciation for commendablecontribution of S/Shri Ajai Malhotra Shirish B Kedare K M Padmanabhan Sumit BoseDeepak Sethi Vivek Mallya Santrupt B Misra Rajiv Bansal Navin Chandra

Pandey and Sanjay Kumar Moitra during their tenure on the Board of yourCompany.

As on 31.03.2020 there were 11 Directors (including two womenDirectors) on the Board comprising of 7 Executive Directors (including the Chairman andManaging Director) and

4 Non-Executive Directors - 2 Government Nominee Directors and 2Independent Directors. There was vacancy for 7 Independent Directors to meet therequirement under the provisions of Companies Act 2013 as well as Listing Regulations2015.

51. Acknowledgement

Your Directors are highly grateful for all the help guidance andsupport received from the Ministry of Petroleum and Natural Gas Ministry of Finance DPEMCA MEA and other agencies in Central and State Governments. Your Directors acknowledgethe constructive suggestions received from Auditors and Comptroller and

Auditor General of India and are grateful for their continued supportand cooperation.

Your Directors thank all share-owners business partners and allmembers of the ONGC Family for their faith trust and confidence reposed in the Board.

Your Directors wish to place on record their sincere appreciation forthe unstinting efforts and dedicated contributions put in by the ONGCians at all levelsin spite of the challenging and unprecedented pandemic situation to ensure that theCompany continues to sustain grow and excel.

On behalf of the Board of Directors
Sd/-
New Delhi Shashi Shanker
01.09.2020 Chairman and Managing Director