3 rd Strategy Meet

1

33rdrd Strategy Meet Strategy Meet

2

Action Taken Report (ATR)Action Taken Report (ATR)

11stst & 2 & 2ndnd Strategy Meet Strategy Meet

33rdrd

SSTTRRAATTEEGGYY

MMEEEETT

33rd Strategy Meet, July 12-14,2002

Strategic GoalsStrategic Goals

To double To double Reserve AccretionReserve Accretion

To improve To improve Recovery FactorRecovery Factor to 40% to 40%

To bring in 20 MMTpa To bring in 20 MMTpa equity oilequity oil from abroad from abroad

over over 2001-202001-20


To Double Reserve AccretionTo Double Reserve Accretion

4 Bmt O+OEG Offshore4 Bmt O+OEG Offshore

DeepwaterDeepwater

2 Bmt O+OEG onshore2 Bmt O+OEG onshore

Frontier BasinsFrontier Basins

Growth areas from established 6 Growth areas from established 6

BasinsBasins



DeepwaterDeepwater

Suggested ApproachSuggested Approach

In house expertise developmentIn house expertise development

Alliance with leading deep-water playersAlliance with leading deep-water players

Long-term strategic relationshipLong-term strategic relationship


DeepwaterDeepwater

DecisionDecision

Formation of Core groups to firm-up time-bound Formation of Core groups to firm-up time-bound

action plan for expertise development in deep water action plan for expertise development in deep water

exploration. exploration.

Contd…

Actions TakenActions Taken

Deepwater core groups formed for integration of Deepwater core groups formed for integration of

activitiesactivities

Plan to bridge gaps in expertise, technology induction Plan to bridge gaps in expertise, technology induction

and skill development etc., to be finalized in July’02and skill development etc., to be finalized in July’02


DeepwaterDeepwater

DecisionDecision

Charter hiring of rigs for deepwater operationsCharter hiring of rigs for deepwater operations


Charter hiring of 3 deepwater rigs under finalization.Charter hiring of 3 deepwater rigs under finalization.

Up to 1500m – 1 rigUp to 1500m – 1 rig



Discussions held with drilling companies. Pre-bid Discussions held with drilling companies. Pre-bid conference held. conference held.

BEC under finalization.BEC under finalization.Contd…


DeepwaterDeepwater

DecisionDecision

Procurement of one super-deep (>2500m) Procurement of one super-deep (>2500m)

drilling rigdrilling rig


Initially 1 super deep drilling rig being hired.Initially 1 super deep drilling rig being hired.

Acquisition as per success probability.Acquisition as per success probability.

Contd…


DeepwaterDeepwater

DecisionDecision

ToTo submit a detailed proposal to MOP&NG for empowering submit a detailed proposal to MOP&NG for empowering

ONGC to formalize Joint Ventures and Alliances for E&D and ONGC to formalize Joint Ventures and Alliances for E&D and

DrillingDrilling


Note put up in Feb’2002Note put up in Feb’2002

Lukewarm response from 17 companies identified for Lukewarm response from 17 companies identified for

alliancing for exploration in 5 deepwater blocksalliancing for exploration in 5 deepwater blocks

Other companies short-listed for possible alliance and Other companies short-listed for possible alliance and

modalities for alliance under finalization.modalities for alliance under finalization.

Discussions with M/S Statoil for drilling Deepwater wells on Discussions with M/S Statoil for drilling Deepwater wells on

turnkey basis.turnkey basis.

Contd…


DeepwaterDeepwater

DecisionDecision

To submit a comprehensive note to MOP&NG on To submit a comprehensive note to MOP&NG on

existing CVC guide-lines and proposed deviations existing CVC guide-lines and proposed deviations

required for taking advantage of the technological required for taking advantage of the technological

advancements.advancements.


Comprehensive note submitted in March’2002 Comprehensive note submitted in March’2002

Contd…



Frontier BasinFrontier Basin


Short Term Short Term – Focussed exploration – Focussed exploration

Medium Term Medium Term - Prospectivity Assessment for focussed Exploration- Prospectivity Assessment for focussed Exploration

Long Term Long Term - Knowledge building for Prospectivity Assessment - Knowledge building for Prospectivity Assessment

Contd…


DecisionDecision

Physical-inputs and resources for frontier basin Physical-inputs and resources for frontier basin

activities to be identified by March’2002.activities to be identified by March’2002.

Action TakenAction Taken

Physical inputs for knowledge building activities Physical inputs for knowledge building activities

and resources required in the frontier basins and resources required in the frontier basins

identified.identified.

Contd…



DecisionsDecisions

To submit comprehensive notes to MOP&NG requesting forTo submit comprehensive notes to MOP&NG requesting for Fiscal relaxation required for its activity in Frontier basins Fiscal relaxation required for its activity in Frontier basins

as well as in Tripuraas well as in Tripura Exploration licenses on nomination basis in frontier basinExploration licenses on nomination basis in frontier basin

To submit proposal to OIDB for grants/ loans for exploration in To submit proposal to OIDB for grants/ loans for exploration in frontier basinsfrontier basins


Physical plans along with investment requirement being Physical plans along with investment requirement being submitted to EC submitted to EC

On approval, comprehensive proposal to be put up to On approval, comprehensive proposal to be put up to MOP&NG for mentioned dispensationsMOP&NG for mentioned dispensations OIDB for grants/ soft loans for knowledge building OIDB for grants/ soft loans for knowledge building

activitiesactivities




Improvement in Recovery FactorImprovement in Recovery Factor

Contd…


To focus on time-bound action plan for 15 major To focus on time-bound action plan for 15 major producing fields including Mumbai Highproducing fields including Mumbai High

To initiate actions to improve recovery factor from To initiate actions to improve recovery factor from other 30 fieldsother 30 fields

To initiate EOR projects for enhancing oil To initiate EOR projects for enhancing oil recoveryrecovery

Monetization & accelerated development of New & Monetization & accelerated development of New & Marginal fieldsMarginal fields


DecisionDecision

Continuous monitoring of major fieldsContinuous monitoring of major fields


Process established for continuous monitoring of major Process established for continuous monitoring of major fields – through MDTfields – through MDT

Micro detailing for monitoring firmed up through Project Micro detailing for monitoring firmed up through Project ACCEPT for Assam fieldACCEPT for Assam field

Improved surveillance established at Asset levelImproved surveillance established at Asset level

IRS as nodal agency along with IOGPT, KDMIPE IRS as nodal agency along with IOGPT, KDMIPE monitoring the major fields on continuous basismonitoring the major fields on continuous basis

Consultants engaged to suggest proactive approachConsultants engaged to suggest proactive approach


Contd…


DecisionDecision

To develop the fields optimally keeping in view the To develop the fields optimally keeping in view the

sound Reservoir Management Practices. sound Reservoir Management Practices.


19 IOR/ EOR projects underway in 15 major fields19 IOR/ EOR projects underway in 15 major fields

12 IOR/EOR under implementation12 IOR/EOR under implementation

14 IOR Studies programmed14 IOR Studies programmed

11 Feasibility Reports are in process11 Feasibility Reports are in process

22 EOR studies in progress at IRS 22 EOR studies in progress at IRS


Contd…


DecisionsDecisions

The proposal for strategic participation The proposal for strategic participation with technology-with technology-

leaders/ service providers for best-available technology leaders/ service providers for best-available technology

solutionssolutions agreed in-principle and was desired to be expedited. agreed in-principle and was desired to be expedited.

ONGC to be operator in all project-based alliancesONGC to be operator in all project-based alliances


Special assignment to focus on Strategic Participation/ Special assignment to focus on Strategic Participation/

AlliancesAlliances

For strategic Project based Alliance with technology leaders a For strategic Project based Alliance with technology leaders a

comprehensive MOU placed on ONGC website and comprehensive MOU placed on ONGC website and

correspondences held with leaders in service sector. correspondences held with leaders in service sector.

Response under submission to ONGC board.Response under submission to ONGC board.


Contd…



Special group formed for development of New & Special group formed for development of New &

Marginal fieldsMarginal fields

FR ready for Accelerated development of Vasai East, FR ready for Accelerated development of Vasai East,

D-1 & G-1 D-1 & G-1

Dockets for new & marginal fields under preparationDockets for new & marginal fields under preparation

Strategic options and action plan being submitted in Strategic options and action plan being submitted in

33rdrd Strategy Meet. Strategy Meet.

DecisionsDecisions

Monetization & accelerated development of New & Monetization & accelerated development of New &

Marginal FieldsMarginal Fields




Equity Oil & GasEquity Oil & Gas

To bring in 20 MMTpa equity oil from abroad by 2020To bring in 20 MMTpa equity oil from abroad by 2020


To focus on countries - Indonesia, Russia, Iran, Iraq, To focus on countries - Indonesia, Russia, Iran, Iraq, Oman, Sudan, Libya, Kazakhstan, Nepal, Algeria, Oman, Sudan, Libya, Kazakhstan, Nepal, Algeria,

Venezuela …Venezuela …

Contd…



Available equityAvailable equity

VietnamVietnam Gas Project to go on stream by end 2002 Gas Project to go on stream by end 2002

Sakhalin-1Sakhalin-1 project progressing on schedule; oil to project progressing on schedule; oil to flow from 2005, Gas from 2007flow from 2005, Gas from 2007

Available block – under explorationAvailable block – under exploration

20% equity taken in an offshore Gas exploration 20% equity taken in an offshore Gas exploration block in block in MyanmarMyanmar

Contd…


DecisionDecision

To explore the possibility to develop matrix indicating political risk in the countries of interest and should To explore the possibility to develop matrix indicating political risk in the countries of interest and should cover these risks through International bankscover these risks through International banks


Government of india has Bilateral Investment Protection Agreements (BIPA) with 44 countries.Government of india has Bilateral Investment Protection Agreements (BIPA) with 44 countries.

OVL refrains from investing in nations which are not covered under BIPAOVL refrains from investing in nations which are not covered under BIPA

Internally OVL takes sufficient risk mitigation through the rate of return , turn around time and strong Internally OVL takes sufficient risk mitigation through the rate of return , turn around time and strong partner approachpartner approach

Additional safe guard through the insurance covers and guarantees is also being exercised wherever it is Additional safe guard through the insurance covers and guarantees is also being exercised wherever it is felt necessaryfelt necessary




BackgroundBackground

CRC formulated from lessons learnt through Pilots CRC formulated from lessons learnt through Pilots

of Organisational Transformation Project (OTP) of Organisational Transformation Project (OTP)

launched in 1997.launched in 1997.

CRC implementation decided in 1CRC implementation decided in 1stst Strategy Meet, Strategy Meet,

July 2001July 2001

Launched with the blessings of Hon’ble Minister Launched with the blessings of Hon’ble Minister

(P&NG) on 20.8.2001(P&NG) on 20.8.2001

Corporate Rejuvenation CampaignCorporate Rejuvenation Campaign

Contd…


StatusStatus

CRC roll-out complete – Assets, Basins, Services CRC roll-out complete – Assets, Basins, Services

etc., in placeetc., in place

Each business unit has developed methodology to Each business unit has developed methodology to

function as ‘Virtual Corporates’function as ‘Virtual Corporates’


Contd…


DecisionDecision

To obtain suggestions on CRC implementation from To obtain suggestions on CRC implementation from

E-0 officers and above level officers. To be put in E-0 officers and above level officers. To be put in

next EC meeting for corrective actions, if anynext EC meeting for corrective actions, if any


Continued interaction - feedbacks received Continued interaction - feedbacks received

Continued Corrective actionsContinued Corrective actions


Contd…


DecisionDecision

Existing gaps in CRC to be plugged Existing gaps in CRC to be plugged


Necessary modifications in PAR, Cadre development, Necessary modifications in PAR, Cadre development,

Promotion policy etc., under consideration for alignment Promotion policy etc., under consideration for alignment

as per CRCas per CRC

Special groups formed for critical areas of operationSpecial groups formed for critical areas of operation Gas Flaring, Corporate IE, CMT, Fire Services etc.Gas Flaring, Corporate IE, CMT, Fire Services etc.


Contd…


DecisionDecision

Collectives to be shown existing distortions in the Collectives to be shown existing distortions in the organogram due to past promotion policyorganogram due to past promotion policy


Distorted organogram posted on web for wider Distorted organogram posted on web for wider appreciationappreciation

Modular course being developed for under-qualified Modular course being developed for under-qualified employees in consultation with ISM, Dhanbad employees in consultation with ISM, Dhanbad


Contd…


DecisionDecision

ONGC to submit a proposal on VRS bringing out ONGC to submit a proposal on VRS bringing out constraints and dispensations required from the constraints and dispensations required from the Govt.Govt.


Proposal for VRS submitted to the Govt.Proposal for VRS submitted to the Govt.




Background Background

Board approved modifications in BDP-1994 giving Board approved modifications in BDP-1994 giving

enhanced powers to the enhanced powers to the

Committee of the BoardCommittee of the Board

Committees of C&MD & functional DirectorsCommittees of C&MD & functional Directors

C&MDC&MD

Functional Directors. Functional Directors.

This became effective from 1st August’2001.This became effective from 1st August’2001.

Powers below Board level was enhanced w.e.f 1st Powers below Board level was enhanced w.e.f 1st

January’2002January’2002

EmpowermentEmpowerment

Contd…


DecisionDecision

To carry out a quick assessment of the impact of To carry out a quick assessment of the impact of empowerment on overall functioning of the empowerment on overall functioning of the organization once the transition is completed.organization once the transition is completed.


Quick assessment carried outQuick assessment carried out

HR BDP approved by Board in May’2002HR BDP approved by Board in May’2002


Contd…


DecisionDecision

To give suitable powers to the location managers to To give suitable powers to the location managers to carry time bound activities.carry time bound activities.


Delegation gaps identifiedDelegation gaps identified

Comprehensive agenda for revision of BDP to give Comprehensive agenda for revision of BDP to give suitable powers to operational managers under suitable powers to operational managers under submission to Boardsubmission to Board




Focus AreasFocus Areas

Non-flowing wells Non-flowing wells

Gas flaringGas flaring

Exploratory drilling backlog Exploratory drilling backlog

TechnologyTechnology

OOR SchemesOOR Schemes

InfocomInfocom

Offshore Services Offshore Services

Process SimplificationProcess Simplification


Non-flowing wellsNon-flowing wells

GoalGoal

Number of non-flowing wells to be reduced to Number of non-flowing wells to be reduced to

15% in onland & 5% in offshore by 31.3.200315% in onland & 5% in offshore by 31.3.2003


Proactive workover operationsProactive workover operations

Augmentation of ResourcesAugmentation of Resources

Contd…


DecisionDecision

An agenda to be put up to Executive Committee to An agenda to be put up to Executive Committee to

review the decision of reducing non- flowing wells.review the decision of reducing non- flowing wells.


Action plan to reduce the number of non-flowing Action plan to reduce the number of non-flowing

wells discussed in ECwells discussed in EC


Contd…


DecisionsDecisions

IRS and IOGPT in consultation with Assets & Basins to review categorization of non-flowing wells and bring a paper to ECIRS and IOGPT in consultation with Assets & Basins to review categorization of non-flowing wells and bring a paper to EC

Sick wells to be reviewed on priority to make achievable progress.Sick wells to be reviewed on priority to make achievable progress.


MDT from IRS, IOGPT & Assets constituted for MDT from IRS, IOGPT & Assets constituted for

Categorization of non-flowing wells submitted Categorization of non-flowing wells submitted

report report

Sick wells being reviewed on continuous basisSick wells being reviewed on continuous basis


Contd…


DecisionDecision

To float tenders for charter-hire of 30 Work-over rigs (25 for To float tenders for charter-hire of 30 Work-over rigs (25 for

onshore and 5 for offshore) for 3 yearsonshore and 5 for offshore) for 3 years


OnshoreOnshore

22 onshore workover rigs of different capacity planned to be 22 onshore workover rigs of different capacity planned to be

charter hired during 2002-03charter hired during 2002-03

Approval accorded to augment 7 workover rigs as per existing Approval accorded to augment 7 workover rigs as per existing

contracts on immediate basiscontracts on immediate basis

Tender for charter-hiring of 4 additional rigs under processTender for charter-hiring of 4 additional rigs under process

OffshoreOffshore

Charter hiring of 4 additional Cantilever J/Up rigs under processCharter hiring of 4 additional Cantilever J/Up rigs under process



Gas FlaringGas Flaring

GoalGoal

To minimise Gas FlaringTo minimise Gas Flaring


Focus on assets where consumer base existsFocus on assets where consumer base exists

Creation of necessary infrastructure on fast-track Creation of necessary infrastructure on fast-track

Contd…


Gas FlaringGas Flaring

DecisionDecision

To minimize gas flaring.To minimize gas flaring.


Focused group for – Gas Flaring ControlFocused group for – Gas Flaring Control

Required infrastructure identifiedRequired infrastructure identified

Compressor procurement in processCompressor procurement in process

Time-bound action plan to achieve Zero Gas Time-bound action plan to achieve Zero Gas

FlaringFlaring


GoalGoal

To remove backlog in exploratory wellsTo remove backlog in exploratory wells


Activity driven resource mobilizationActivity driven resource mobilization

Exploratory drilling BacklogExploratory drilling Backlog

Contd…


DecisionDecision

To initiate time-bound plan for procurement/up-To initiate time-bound plan for procurement/up-

gradation of the state-of- the-art Drilling Rigsgradation of the state-of- the-art Drilling Rigs


MOU with BHEL signed on 15.4.2002. Initially MOU with BHEL signed on 15.4.2002. Initially

contract awarded to BHEL for upgradation of 12 contract awarded to BHEL for upgradation of 12

onshore rigsonshore rigs

Proposal submitted for acquisition of 3 offshore Proposal submitted for acquisition of 3 offshore

jack up rigsjack up rigs

Exploration drilling BacklogExploration drilling Backlog



GoalGoalTechnology for efficiencyTechnology for efficiency


Adoption of best-in-class technologyAdoption of best-in-class technology

Monetization of idle Assets with technology Monetization of idle Assets with technology

Strategic participation with technology Strategic participation with technology leadersleaders

Contd…



DecisionDecision

Employing state-of-the-art and cost-effective Employing state-of-the-art and cost-effective

technologies.technologies.


Technology needs worked out in various areas of Technology needs worked out in various areas of

operationoperation

Contd…



DecisionDecision

Improving operational efficiency using best-in-class Improving operational efficiency using best-in-class

equipment and facilities and continuous up-gradation of equipment and facilities and continuous up-gradation of

skillsskills


Technology induction plan through alliances discussed in Technology induction plan through alliances discussed in

Board in May’2002. MOU under finalization.Board in May’2002. MOU under finalization.

Contd…


Technology - SeismicTechnology - Seismic

DecisionsDecisions

Procurement of additional state-of-the-art Seismic Survey Procurement of additional state-of-the-art Seismic Survey

vesselvessel

State-of the-art data acquisition, supported with high State-of the-art data acquisition, supported with high

computing capability for G&G activitiescomputing capability for G&G activities


Under ProcurementUnder Procurement 1- Vessel for offshore Seismic survey1- Vessel for offshore Seismic survey 10 - Seismic Data Acquisition system 10 - Seismic Data Acquisition system

Upgradation of facilities at GEOPIC under processUpgradation of facilities at GEOPIC under process

‘‘Virtual Reality Centre’ (Third Eye) to be commissioned in Virtual Reality Centre’ (Third Eye) to be commissioned in July’ 2002 at MumbaiJuly’ 2002 at Mumbai


Technology - DrillingTechnology - Drilling

DecisionDecision

ONGC to leverage state-of the-art technology like – Premium Bits, ONGC to leverage state-of the-art technology like – Premium Bits,

use of Drilling fluid technology etc., for improving overall efficiency.use of Drilling fluid technology etc., for improving overall efficiency.


Premium bits under use in all major fields – 42 to 64%Premium bits under use in all major fields – 42 to 64%

Efforts being made to augment drilling fluid technologyEfforts being made to augment drilling fluid technology

Discussions with industry leadersDiscussions with industry leaders


Technology - DrillingTechnology - Drilling

DecisionDecision

To put in place a process to ensure quality To put in place a process to ensure quality

cementationcementation


IDT has developed light weight and ultra heavy IDT has developed light weight and ultra heavy

weight cement slurry for Mumbai high & Cachar weight cement slurry for Mumbai high & Cachar

project respectivelyproject respectively

Project specific cementation technology worked outProject specific cementation technology worked out


DecisionDecision

To send a delegation to Sasol for firming up GTL technology To send a delegation to Sasol for firming up GTL technology

induction for utilization of Tripura Gas.induction for utilization of Tripura Gas.


Sasol not interested to license on arms-length basisSasol not interested to license on arms-length basis

Desires participation in profitable venturesDesires participation in profitable ventures

Conditions for participationConditions for participation

Uncommitted gas reserve – 20 TCF gas over 30 yearsUncommitted gas reserve – 20 TCF gas over 30 years

Gas price – US$0.50 per MMBTUGas price – US$0.50 per MMBTU

Capacity – 100,000 bpdCapacity – 100,000 bpd

Project benchmark for SasolProject benchmark for Sasol

ICB being floated to invite prospective partners for setting up ICB being floated to invite prospective partners for setting up GTL projectGTL project

Technology - GTLTechnology - GTL


OOR SchemeOOR Scheme

GoalGoal

Improved management of the existing AssetsImproved management of the existing Assets


Close MonitoringClose Monitoring

De-bottlenecking & revamping of facilitiesDe-bottlenecking & revamping of facilities

Contd…



DecisionDecision

To work-out time-bound action plan for “SCADA” To work-out time-bound action plan for “SCADA”

implementation. implementation.


Offshore SCADA system scheduled to be Offshore SCADA system scheduled to be

upgraded by June’2004 under project PROMISEupgraded by June’2004 under project PROMISE

Onshore SCADA system (GGS/ CTF level) Onshore SCADA system (GGS/ CTF level)

planned under Project PROMISE by June’2003planned under Project PROMISE by June’2003

Contd…



DecisionDecision

De-bottlenecking & revamping of facilities De-bottlenecking & revamping of facilities


Assets identified the facilities requiring de-bottlenecking. Assets identified the facilities requiring de-bottlenecking. Structured approach being adopted to revamp the facilities.Structured approach being adopted to revamp the facilities.

Recommendations of the consultant M/S Mckinsey under Recommendations of the consultant M/S Mckinsey under project ACCEPT being implemented in Assam Asset.project ACCEPT being implemented in Assam Asset.

De-bottlenecking & revamping of facilities defined as KPA in De-bottlenecking & revamping of facilities defined as KPA in Performance Contract signed with Assets and BasinsPerformance Contract signed with Assets and Basins

Compliance of internal safety audits and third party audit Compliance of internal safety audits and third party audit ensures phased de-bottlenecking and revamping of facilities.ensures phased de-bottlenecking and revamping of facilities.


InfocomInfocom

GoalGoal

Integrated IT solutions for efficiencyIntegrated IT solutions for efficiency

Projects under implementationProjects under implementation

Project ICEProject ICE

Project PROMISEProject PROMISE

Project EPINETProject EPINET

Contd…


InfocomInfocom

Present StatusPresent Status

Approval accorded to award contract on Approval accorded to award contract on nomination basis to M/S SAP India for nomination basis to M/S SAP India for implementation implementation

30 Projects identified under Project 30 Projects identified under Project PROMISE under various stages of PROMISE under various stages of implementation.implementation.

First phase of Project EPINET implementedFirst phase of Project EPINET implemented


GoalGoal

To improve and optimise offshore servicesTo improve and optimise offshore services


Outsourcing of offshore services Outsourcing of offshore services

through Joint Venture (JV)through Joint Venture (JV)

Optimization of Offshore ServicesOptimization of Offshore Services

Contd…


Optimization of Offshore ServicesOptimization of Offshore Services

DecisionsDecisions

To select JV partner (s)To select JV partner (s)

To prepare Feasibility ReportTo prepare Feasibility Report

MOP&NG, Ministry of Shipping & Surface Transport and MOP&NG, Ministry of Shipping & Surface Transport and Ministry of Defence to be informed about the ONGC’s need Ministry of Defence to be informed about the ONGC’s need and policy regarding formation of JV for Floating Services.and policy regarding formation of JV for Floating Services.


Core team discussed JV formation withCore team discussed JV formation with SCI, GE Shipping, SEMAC, HSL, MDL, CSL, ICICISCI, GE Shipping, SEMAC, HSL, MDL, CSL, ICICI

Consultant being appointed for preparing Feasibility Consultant being appointed for preparing Feasibility Report.Report.

Action in HandAction in Hand


GoalGoal

To Streamline tender and contract processes & procedures for To Streamline tender and contract processes & procedures for

expeditious resource mobilizationexpeditious resource mobilization


To carry out Changes aiming atTo carry out Changes aiming at

reduction in number of tendersreduction in number of tenders

selection of quality biddersselection of quality bidders

transparent bidding processtransparent bidding process


Contd…


DecisionsDecisions

Position specific empowerment from top to grass root level, with an in-built system of reviews at appropriate level.Position specific empowerment from top to grass root level, with an in-built system of reviews at appropriate level.

Tender information to be put on the web-site for transparency and appropriate publicity.Tender information to be put on the web-site for transparency and appropriate publicity.

Organization of proactive pre-bid conferences.Organization of proactive pre-bid conferences.


Proposed revision in material procurement provisions in BDP submitted for considerationProposed revision in material procurement provisions in BDP submitted for consideration

Web-site ongctendersonline.com launched. Tender information being put on web.Web-site ongctendersonline.com launched. Tender information being put on web.

Pre-bid conferences being organized on regular basisPre-bid conferences being organized on regular basis


Contd…


DecisionsDecisions

Annual Maintenance Contract (AMC) on life-cycle concept basis Annual Maintenance Contract (AMC) on life-cycle concept basis be in-placebe in-place

Payment within 15 days, LD levied strictly as per the contract Payment within 15 days, LD levied strictly as per the contract

Post contract issues should be appropriately addressed at the Post contract issues should be appropriately addressed at the Director’s levelDirector’s level


AMC on life-cycle concept being incorporated as standard AMC on life-cycle concept being incorporated as standard clause in BEC.clause in BEC.

Instructions issued to make payment within 15 days and Instructions issued to make payment within 15 days and imposition of LD as per contract. Agenda under consideration of imposition of LD as per contract. Agenda under consideration of Executive Purchase Committee (EPC) for further clarificationsExecutive Purchase Committee (EPC) for further clarifications

Circular issued specifying authority dealing with post contract Circular issued specifying authority dealing with post contract issues. issues.


Contd…


DecisionsDecisions

Sampling/ Bonding of Chemicals to be streamlinedSampling/ Bonding of Chemicals to be streamlined

Charter-hiring of the Vessels on long-term basis Charter-hiring of the Vessels on long-term basis

ONGC to put up a proposal to MOP&NG for entering into long-ONGC to put up a proposal to MOP&NG for entering into long-term contracts, wherever felt necessaryterm contracts, wherever felt necessary


Agenda related to streamline sampling/ bonding of chemicals Agenda related to streamline sampling/ bonding of chemicals under consideration of Executive Purchase Committee (EPC)under consideration of Executive Purchase Committee (EPC)

BEC approved by EPC for hiring of vessels for 3 years term. BEC approved by EPC for hiring of vessels for 3 years term. Tender being invitedTender being invited

DGS&D is proposed to be appointed as consultant for DGS&D is proposed to be appointed as consultant for suggesting modalities for long-term contract. Based on suggesting modalities for long-term contract. Based on suggested approach proposal shall be submitted to MOP&NGsuggested approach proposal shall be submitted to MOP&NG


Contd…


DecisionDecision

Effective vendor rating systems be evolved. Effective vendor rating systems be evolved.

Termination or Holiday in case of defaulting vendors.Termination or Holiday in case of defaulting vendors.


Vendor rating system establishedVendor rating system established




Direct MarketingDirect MarketingDecisionDecision

To prepare a comprehensive paper for direct marketing of hydrocarbon produced from isolated fields and in the To prepare a comprehensive paper for direct marketing of hydrocarbon produced from isolated fields and in the other areas where GAIL is not in a position to provide marketing support to ONGC. other areas where GAIL is not in a position to provide marketing support to ONGC.


Comprehensive note put up to MOP&NG in Feb’2002Comprehensive note put up to MOP&NG in Feb’2002

Issue discussed by Gas Linkage Committee(GLC) on 22.5.2002Issue discussed by Gas Linkage Committee(GLC) on 22.5.2002

GLC formed a committee to review guidelines for allocation of such gas.GLC formed a committee to review guidelines for allocation of such gas.


Indian Flag VesselsIndian Flag Vessels

DecisionDecision

The issues related to Indian Flag Vessels including The issues related to Indian Flag Vessels including payment in foreign currency was discussed and it payment in foreign currency was discussed and it was decided that a note be submitted to the was decided that a note be submitted to the MOP&NGMOP&NG


Action in HandAction in Hand


Refinery productsRefinery products

DecisionDecision

To put up details regarding non-upliftment of To put up details regarding non-upliftment of

products from Tatipaka Refinery to the Additional products from Tatipaka Refinery to the Additional

Secretary (MOP&NG) for taking up the matter in the Secretary (MOP&NG) for taking up the matter in the

sales meeting with refineries, scheduled for 18th sales meeting with refineries, scheduled for 18th

Feb. 2002. Feb. 2002.


Comprehensive note put up to MOP&NG in Feb’2002Comprehensive note put up to MOP&NG in Feb’2002


Price & Purchase PreferencePrice & Purchase Preference

DecisionDecision

A proposal to be submitted to MOP&NG to review the instructions regarding Price & Purchase preference to the PSUs. A proposal to be submitted to MOP&NG to review the instructions regarding Price & Purchase preference to the PSUs.


Comprehensive note submitted in Feb’2002Comprehensive note submitted in Feb’2002

As per decision of the Board on 16.5.2002 comprehensive agenda under submission to Govt.As per decision of the Board on 16.5.2002 comprehensive agenda under submission to Govt.

Notification issued by the Govt. in June’2002 restoring Purchase Preference.Notification issued by the Govt. in June’2002 restoring Purchase Preference.


ILiTesILiTes

DecisionsDecisions

To form disaster Management team at National level - To form disaster Management team at National level -

Indian Life Saver Teams (ILiTes) Indian Life Saver Teams (ILiTes)

Issue of tax exemption be examined for creating ILiTes Issue of tax exemption be examined for creating ILiTes

and modalities to flag the name of ONGC with disaster and modalities to flag the name of ONGC with disaster

management team be finalized.management team be finalized.


Consultant appointedConsultant appointed

Action in handAction in hand


Project SaraswatiProject Saraswati

DecisionDecision

A proposal for exploitation of aquifers in areas A proposal for exploitation of aquifers in areas covering the ancient Saraswati River be covering the ancient Saraswati River be brought to the EC.brought to the EC.


Proposed approach paper discussed in EC on Proposed approach paper discussed in EC on 25.4.200225.4.2002

Process of identifying agencies/institutions for Process of identifying agencies/institutions for engagement of consultant being finalized engagement of consultant being finalized


Dry wellsDry wells

DecisionDecision

Option to hand over existing dry wells which can’t Option to hand over existing dry wells which can’t be put on use to the Ground Water Boards be be put on use to the Ground Water Boards be examined. examined.


Feasibility w.r.t double casing, well availability Feasibility w.r.t double casing, well availability with ONGC, cost & water requirement in the area with ONGC, cost & water requirement in the area to be studied to be studied



Jatar Committee ReportJatar Committee Report

BackgroundBackground

G-345 Well in Gandhar got fire on 30.10.2001 due G-345 Well in Gandhar got fire on 30.10.2001 due to theft attemptto theft attempt

Expert Committee constituted by MOP&NG under Expert Committee constituted by MOP&NG under the Chairmanship of Maj.Gen (Retd.) S C N Jatar the Chairmanship of Maj.Gen (Retd.) S C N Jatar to enquire the accidentto enquire the accident

Interim report was submitted by the Committee in Interim report was submitted by the Committee in January’2002January’2002

Findings of the report discussed in the 2Findings of the report discussed in the 2ndnd Strategy Meet, Feb 1-3, 2002.Strategy Meet, Feb 1-3, 2002.

Contd…



DecisionsDecisions

Promotion of the under-qualified people to E-4 Promotion of the under-qualified people to E-4 level and designating them as Engineers be re-level and designating them as Engineers be re-looked. looked.

14 days on/off pattern be reviewed with one rule 14 days on/off pattern be reviewed with one rule applicable to all work centers of ONGC. However, applicable to all work centers of ONGC. However, a distinction be made between onshore and a distinction be made between onshore and offshore operations.offshore operations.

Actions in handActions in hand

Contd…



DecisionDecision

A comprehensive review of Crisis Management Team in terms of A comprehensive review of Crisis Management Team in terms of reporting, equipment, efficiency, audit, training in a time bound reporting, equipment, efficiency, audit, training in a time bound mannermanner


Review of CMT carried outReview of CMT carried out

RCMT at different locations establishedRCMT at different locations established

CMT equipment identified and sourcing plannedCMT equipment identified and sourcing planned

To get services at the time of crisis - Rate contract being finalized To get services at the time of crisis - Rate contract being finalized with a reputed companywith a reputed company

Training & exposure to CMT & Operational crewTraining & exposure to CMT & Operational crew

Floating Crisis Management Facility at MumbaiFloating Crisis Management Facility at Mumbai

Contd…



DecisionDecisionAll the well sites be fenced. However, if the present design All the well sites be fenced. However, if the present design of fencing is inadequate a review be made.of fencing is inadequate a review be made.

Head-Performance Management and Benchmarking be Head-Performance Management and Benchmarking be asked to study measurement and accounting practices.asked to study measurement and accounting practices.

Actions in HandActions in Hand



Agenda – 3Agenda – 3rdrd Strategy Meet Strategy Meet

Action Taken Report (ATR) Action Taken Report (ATR)

Monetization - Service Contract for Marginal FieldsMonetization - Service Contract for Marginal Fields

Monetization – Farm-out of Deep-water nomination BlocksMonetization – Farm-out of Deep-water nomination Blocks

Monetization – Departmental ProjectsMonetization – Departmental Projects

FPSO/ EPSFPSO/ EPS

Gas Business – Marketing IssuesGas Business – Marketing Issues

Gas Business – Under recoveriesGas Business – Under recoveries

Onshore ProductionOnshore Production

Value Addition – Oil & GasValue Addition – Oil & Gas

12.7.200212.7.2002

Contd…



OOR – Non-Flowing WellsOOR – Non-Flowing Wells

OOR – Gas CompressionOOR – Gas Compression

Security Manning PolicySecurity Manning Policy

Offshore ProductionOffshore Production

Financials – Negative RevenuesFinancials – Negative Revenues

Financials – OutstandingsFinancials – Outstandings

Financials – Cash-flow projectionsFinancials – Cash-flow projections

HRD – Transfer & Promotion; Policy ApproachHRD – Transfer & Promotion; Policy Approach

Community Development PolicyCommunity Development Policy

13.7.200213.7.2002

Contd…



PY-3 Case StudyPY-3 Case Study

Environmental ProtectionEnvironmental Protection

SHE – Crisis Management Team (CMT)SHE – Crisis Management Team (CMT)

SHE – Learning from Safety AuditsSHE – Learning from Safety Audits

14.7.200214.7.2002


84

Documents

3 rd Strategy Meet