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    Welcome

    Tuesday, November 12, 2013 1

    Welcome to ONGC

    Welcome to you all, for joining the

    team of about 32923* strong

    professionals. You have joined a

    mainstream organization, actively

    Tuesday, November 12, 2013 2

    and contributing towards your

    nations energy security.

    * Manpower Status as on 01-04-2013

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    Welcome to ONGC

    You are now a proud member of thefamily contributing significantly tonations GDP through IntegratedEnergy business and to Central

    Tuesday, November 12, 2013 3

    .Custom, Income Tax, Sales Tax,

    Octroi, Cess & Royalty.

    Presentation SequencePresentation Sequence

    ONGC: Past & Introduction

    Present Scenario

    Vision & Mission

    Tuesday, November 12, 2013 4

    SWOT Analysis

    Strategies for brighter tomorrow

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    Tuesday, November 12, 2013 5

    Working for Indias Energy Securi ty

    ONGC: An Introduction

    A Humble Beginning

    Soon after Independence, the

    Government of India formulated a

    national policy, which made

    Tuesday, November 12, 2013 6

    development of oil resources the

    exclusive responsibil ity of the State.

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    ONGC: An Introduction

    As a first step towards the

    implementation of this policy, a

    Petroleum Division was created in

    October, 1955, exclusively for oil

    Tuesday, November 12, 2013 7

    the Geological Survey of India.

    ONGC: An Introduction

    ,

    of Oil & Natural Gas and was raised to the

    status of a Commission on August 14, 1956.

    The Commission was later converted into

    Statutory Body on October 15, 1959 with

    Tuesday, November 12, 2013 8

    Headquarters at Tel Bhavan, Dehradun. It

    was formed under an Act of Parliament as a

    `Commission`

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    ONGC: An Introduction

    s crea on n was o re ec e

    philosophy of self-reliance contained in

    the Industrial Policy Resolution of that

    year.

    Tuesday, November 12, 2013 9

    ,

    sector such as oil and gas exploration

    would be reserved for the state-ownedunits.

    ONGC: An Introduction

    ONGC came into being at a time when

    most of the oil in India was

    undiscovered.

    The indigenous production was

    Tuesday, November 12, 2013 10

    ,

    where oil had been struck as far back

    as 1890, in Digboi Oil Field of

    BOC/AOC.

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    ONGC: An Introduction

    No further discovery was made till the

    middle of 20th century.

    In early fifties, BOC, which was later

    nat ional ized and renamed as Oil India

    Tuesday, November 12, 2013 11

    ,

    fields namely Noharkatia & Moran in

    Upper Assam & began their

    development.

    ONGC: An Introduction

    From modest scale of Operat ion in limi ted area,

    ONGC expanded petroleum exploration activities

    through intensive efforts with remarkable

    success.

    In the onland, it established new resources in

    Upper Assam Basin and also found new oil

    Tuesday, November 12, 2013 12

    province in Cambay Basin.

    Subsequently, i t added new petroli ferous areas

    in Assam Arakan Fold Belt, Krishna Godavary

    Basin, Cauvery Basin & Mumbai Offshore Basin.

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    ONGC: An Introduction

    The first ONGC well was spud at

    Jwalamukhi in April, 1957.

    Lunej-1 in Cambay is the first oil well of

    ONGC, spud in July, 1958. A significant

    on-shore discovery of oil was made at

    Tuesday, November 12, 2013 13

    , .

    This was followed by the discovery of

    oil in Kalol field near Ahmedabad and

    Rudrasagar field in Assam.

    ONGC: An Introduction

    In March 1970, the first off-shore well was

    spud at Bhavanagar.

    Offshore dri ll ing commenced at Bombay High

    in 1973 and Oi l was discovered in 1974.

    In March 1976, Gas was found at Bassein

    Tuesday, November 12, 2013 14

    structure in Bomaby offshore.

    In July 1978, the oil pipeline system from

    Bombay High to Trombay was commissioned.

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    ONGC: An Introduction

    In 1984, ONGCs as and i eline division was

    converted into another company Gas Authori ty of India

    Limited (GAIL). Until the late eighties, ONGC was

    focused on crude oil production. The refining and

    marketing of petroleum products was reserved for the

    public sector companies lead by Indian Oil Corporation.

    Tuesday, November 12, 2013 15

    with the deregulat ion of the oil sector. Wi th the opening

    up of the oil sector, companies such as ONGC have tocontend with dramatic changes in the competitive

    structure of the industry.

    Historical Profile

    an as rec ora e,

    1959 Autonomous Statutory Body

    1994 Publ ic L imited Com an

    1956 Oil & Natural Gas Commission

    Tuesday, November 12, 2013 16

    1997 A Navaratna PSU

    2010 A Maharatna PSU

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    Present Scenario.

    Tuesday, November 12, 2013 17

    ONGC discovered

    6 out of the 7 Producing Basins of India

    50+ Years of Exploration

    1958: Cambay Basin

    1967: Rajasthan Basin1889: Assam Shelf *

    1980: KG Basin

    1973: A&AA FB

    1974: Mumbai Offshore

    1985: CauveryBasin

    * By AR & T Co. - Assam Railways and Trading Company Ltd.

    18

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    Category-I:

    Proved petroliferous basins withcommercial production

    Indian Sedimentary Basins

    a egory- :Basins with known occurrence ofhydrocarbons but no commercialproduction

    Category-III:Basins with no significanthydrocarbon shows but assumedprospective on geologicalconsiderations

    Category-IV:

    Frontier basins with uncertainprospects. Deemed prospective onanalogy with similar basinsworldwide

    Deep Waters19

    ONGC: An Introduction

    rong oo ng

    Starting with the production of 100

    tonnes of crude oil in 1961, ONGC* has

    produced 26.13 million tonnes of crude

    20

    .in FY- 2012-13.

    * Oil & Gas Production from ONGC + ONGCs share in JV fields

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    ONGC: An Introduction

    ,

    in the world engaged in every aspect of oil

    exploration, seismic survey, drilling,

    production, research & development and

    training.

    Tuesday, November 12, 2013 21

    as e exper ence o exp or ng or o

    in the most diverse geographical conditions,

    on land as wel l as in the Offshore/Sea.

    The Infrastructure

    Tuesday, November 12, 2013 22

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    ONGC: E&P InfrastructureState-of-the-art exploration & production

    facilities27+3*

    Seismic Crews240

    77+44*Drilling Rigs

    58+30*Work Over Rigs

    Onshore Installations

    202Offshore Installations

    26,598 KmPipelines

    Well StimulationUnits

    27+46@

    Logging Units

    @ plus 37 wire line, 8 LWD charter-hired & Well Shuttle unit* Charter-hired

    17+48*OSVs/MSVs

    Hazira, Gujarat

    Handling Capacity: 42 MMSCMD Sour GasProducts: LPG, C2-C3, LAN

    ONGC: Processing Infrastructure

    Handling Capacity: 20 MMTPA Oil & 16 MMSCMD GasProducts: LPG, ARN, SKO, ATF, Propane, HSD

    Uran, Maharashtra

    Ankleshwar and Gandhar, Gujarat

    Handling Capacity: 0.1 MMTPA Oil & 1 MMSCMD Gas

    Products: LPG, Naphtha

    LPG Liquefied Petroleum Gas

    MMTPA- Million Tonnes Per Annum

    MMSCMD-Million Standard Cubic Meter per

    day

    Tatipaka, Andhra Pradesh

    Handling Capacity: 0.1 MMTPA OilProducts: Naphtha, SKO, HSD, Fuel Oil

    C2-C3 Ethane- Propane

    HSD High Speed Diesel

    LSHS Low SulphurHeavy Stock

    ATF Aviation Turbine Fuel

    LAN Low Aromatic Naphtha

    ARN Aromatic Rich Naphtha

    24

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    K.D. Malviya Institute of Petroleum Exploration (KDMIPE), DehradunBasin modelin HC Resource A raisal Pros ect eneration

    ONGC : Institutes

    Geological & Geo-chemical Research

    Geodata Processing And Interpretation Centre (GEOPIC), DehradunSeismic Data Processing & Interpretation & Software Development

    Institute of Reservoir Studies (IRS), AhmedabadOil & Gas Field Development Planning, EOR/ IOR studies

    Institute of Drilling Technology (IDT), (Dehradun)Drilling Technology, Drilling Fluid & Cementing Engineering

    e on ro c oo

    Institute of Oil & Gas Production Technology (IOGPT), MumbaiProduction Engineering, Facility Engineering, Well Analysis

    Institute of Engineering & Ocean Technology (IEOT), MumbaiGeotechnical & Structural EngineeringMaterial & Corrosion Engineering

    25

    ONGC Academy, Dehradun

    ONGC : Institutes

    Institute of Biotechnology & Geo-tectonics Studies (INBIGS), JorhatGeo-microbial Hydrocarbon prospecting

    Institute of Petroleum Safety Health & Environment Management(IPSHEM), GoaSafety Audit, Inspection & Training, Occupational Health,Environment Audit, Disaster Management, Survival at Sea Training

    Centre for Excellence for Well Logging Technology (CEWELL), Vadodara

    n uc on ra n ng, anagemen eve opmen , unc ona ra n ng

    26

    Technology hub for Logging services/Special Studies

    School of Maintenance Practices, (SMP), Vadodara

    Certified training courses of Oil Field Equipment maintenance.

    ONGC Energy Centre (OEC), DelhiHolistic research beyond hydrocarbons

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    Out of 32,923 69 % are executives (E1 & Above)

    Manpower Profile

    ONGC: Human Resources

    St t i iHuman

    ResourcesNos.

    Class -1 22684

    Class -2 1941

    ASSETS1046632%

    Strategic usiness

    unit wise Deployment

    27

    ass -

    Class-4 2696

    Total 32923OVL/ DEP.

    OUT4411%

    INSTITUTES14354%

    PLANTS16625%

    CORPORATE

    OFFICES

    327510%

    BASINS29899%

    SERVICES1265539%

    VISION

    Tuesday, November 12, 2013 28

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    Vision

    u ng ompany s s on

    Companies that enjoy enduring success havecore values and core purposes that remainfixed while their business strategies andpractices endlessly adopt to a changing world.

    Tuesday, November 12, 2013 29

    A well conceived vision consists of two majorcomponents :

    (a) Core ideology (b) Envisioned future

    Vision

    u ng ompany s s on

    The core ideology defines what we stand forand why we exist.

    The core ideology is unchanging and

    complement the envisioned future.

    Tuesday, November 12, 2013 30

    he Envisioned future is what we aspire tobecome, to achieve or to create somethingthat will require significant changes andprogress to attain.

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    ONGC : Corporate Vision

    To be a global leader inIntegrated Energy Businessthrough SustainableGrowth, Knowledge excellenceand exemplary GovernancePractices.

    Adopted by ONGC Board in its 203rd meeting on 26thApril 2010

    31

    Earlier Vision

    To be a world-class Oil & Gas

    Company integrated in Energy

    Business with dominant Indian

    Tuesday, November 12, 2013 32

    Leadership and Global Presence.

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    Mission

    is a very broad statement of why theorganization exists.

    The statement defines the business ofthe or anization.

    Tuesday, November 12, 2013 33

    It reveals what an organization wantsto be and whom it wants to serve.

    ONGC : Earlier Mission & Objectives

    ,

    following:

    Mission and Objectives:

    To stimulate, continue and

    34

    develop and maximize the

    contr ibution of hydrocarbons to the

    economy of the country.

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    ONGC : Present Mission

    World classExcellence in R&D and technology.High standards of Business Ethics & Organizational values.HSE to enrich quality of community life.Customer satisfaction through quality products & services.

    Integrated in Energy BusinessFocus on Domestic and international E &P business.

    35

    Provi e va ue Lin ages in ot er sectors o energy usiness.Create growth opportunities & Maximize shareholder value.

    Dominant Indian LeadershipRetain dominant position in Indian Petroleum sector &enhance Indias energy availability.

    The Change

    The Regional Business Centre Organizational

    structure increased interdependencies and

    resulted in slow decision making.

    In 1997, Meckinsey & Co. proposed

    Tuesday, November 12, 2013 36

    restructuring plan in which the Asset Based

    Management was proposed.

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    CMD

    ONGC-OVLMD

    DIRECTORS*

    DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR

    (Func t ion Ba sed Struc ture)

    Corporate WingCPD/CMSG/ PIB/CC

    Security/Vigilance

    ONGC Board

    KDMIPEIRSEXCOMGEOPIC

    ar me xpora on pera on r ng ec nca nance ersonne

    IOGPT IDT IEOTIPSEM

    IMDAdministrativecontrol

    Functionalcontrol

    37

    MRBCMumbai

    WRBCVadodra

    ERBCNazira

    SRBCChennai

    CRBCCalcutta Dehradun

    BOMBAYOFFSHORE,

    HAZIRAURAN

    AHEMDABAD,ANKLESHWARMEHASANA,

    CAMBAY,RAJASTHAN

    ASSAMDVP

    CACHAR

    CAUVERYK-G

    W.BENGALTRIPURA

    DEHRADUN

    *Include non-official Directors, Govt. nominees

    ONGC - Functional Organization

    Assets Basins Institutes Services

    Offshore

    Onshore

    1.Mumbai High2.Neelam-Heera3.Bassein4.East Coast

    1.KDMIPE2.GEOPIC3.IDT4.IRS5.IOGPT6.IEOT

    7.INBIGS

    1. Geophysical2. Drilling3. Logging4. Well5. Engineering6. Logistics

    7. Technical

    1.Western Offshore2.Western Onshore3.Cauvery4.KG & PG5.MBA6.AA&A

    7.Frontier.2.Assam3.Mehsana4.Ahmedabad5.Karaikal6.Rajahmundry7.Tripura

    Plants

    1.Uran2.Hazira3.C2-C3

    .9.ONGC Academy10.SMP11.CEWELL12.OEC

    ..

    Support

    1.HR/ ER2.Finance3.MM4.Legal5.Medical6.Security

    Corporate Functions

    Planning, E&D, Infocom, Vigilance,Audit, Marketing, JV&BD

    38

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    ONGC

    to integrated business

    along the Oil & Gas Value Chain

    Tuesday, November 12, 2013 39

    + + + +

    ONGC:

    Now sourcing energy from

    Crude Oil

    Natural Gas

    Working on

    LNG,

    CBM

    Tuesday, November 12, 2013 40

    oa as ca on

    (underground & surface)

    Gas Hydrates

    Renewable

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    E&P the Corebusiness

    ONGC Group

    (71.62%)

    (100%)(49%)

    Overseas E&P Services

    (100%)

    Refinery Value-chain

    (28.77%)

    (49%)

    (26%)

    (49%) *

    (23%)

    (26%)

    Others

    SubsidiariesJointVentures

    (50%)ONGC Nile Ganga

    B.V, Netherlands

    SEZ

    Power

    (50%)

    .

    (100%)

    (100%)

    ONGC AmazonAlaknan da Ltd., Berm uda

    Jarpeno Limited, Cyprus

    (100%)

    Carabobo One

    AB, Sw eden

    * ONGC: 46%, MRPL: 3%

    41

    ONGC Narmada

    Ltd., Nigeria

    (100%)

    Chairman & Managing DirectorShri Sudhir Vasudeva

    ONGC Board

    Functional Directors(Full Time)

    GovernmentNominees

    IndependentDirectors

    Special Invitees

    MD, OVLShri D.K. Sarraf

    Shri A. GiridharJoint Secretary, MOP&NG

    Shri Shaktikanta DasAddl. Secretary, MOF

    Director (HR)Shri K.S. Jamestin

    Director (Offshore)

    Director (Finance)Shri A.K. Banerjee

    Dr. D. Chandrasekharam

    Prof. Deepak Nayyar

    Shri Arun Ramanathan

    Director (Onshore)

    r . . ort a ur

    Director (Exploration)Shri N.K. Verma

    Director (T&FS)Shri Shashi Shankar

    42

    Shri O.P. Bhatt

    Shri K.N. Murthy

    Shri S.K. Barua

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    The Performance

    Tuesday, November 12, 2013 43

    HighlightsHighlights -- FY 2012FY 2012--1313

    and 10 New Pools)

    Ultimate Reserve Accretion (84.84 MTOE) ,highest in last 22 years

    Reserve Replacement Ratio (RRR = 1.839) morethan 1 for the 7th consecutive year

    Oil : 26.127 MMT ( 22.561+3.566) Gas : 25.510 BCM ( 23.549+1.786 )

    Financials ( FY 2012-13):

    Turnover : Rs. 83,309 Crore Net Profit : Rs. 20,926 Crore

    44

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    Reserve accretion (3P): FY13Reserve accretion (3P): FY13

    Ultimate Reserves accretion in ONGC operated fields :

    84.84 MTOE is the highest in last 22 years.

    82.98 84.13

    40

    50

    60

    70

    80

    90

    63.8268.89

    . 84.84

    UR

    45

    MTOE: Million tonnes of oil equivalent

    0

    10

    20

    2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

    47.78 47.51 46.1148.28

    ONGC: O+OEG Production (MMToe)

    47.86 47.03

    25.95 25.37 24.67 24.42

    23.71

    22.33 22.49 23.11 23.09 23.32 23.55

    46

    '2007-08 '2008-09 '2009-10 '2010-11 2011-12 2012-13

    .

    Oil (MMT) Gas (MTOE)

    ONGC Production excluding JV share

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    4.28 5.08 5.39 5.35

    PSC JVs Production - ONGCs share(MMToe)

    4.67 4.60

    2.782.95 2.49

    2.23

    2.191.79

    Gas (MTOE)

    Oil (MTOE)

    47

    2007-08 '2008-09 '2009-10 '2010-11 2011-12 2012-13

    1.89 1.65 1.79

    2.863.21

    3.57

    ONGC : Gas Sales (BCM)

    (Excluding PSC JVs)

    17.76 17.71 18.24 18.26 18.23 18.60

    48

    2007-08 '2008-09 '2009-10 '2010-11 2011-12 2012-13

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    ONGC: VAP Production (MMT)

    3.256 3.3143.457

    3.203 3.218 3.152

    49

    2007-08 '2008-09 '2009-10 '2010-11 2011-12 2012-13

    ONGC : Production Centers

    AhmedabadOil: 1.46 MMT;

    RajasthanGas: 0.14 BCM

    Domestic Producing Areas

    As in FY 12-13

    .

    MehsanaOil: 2.28 MMT;Gas: 0.18 BCM

    AnkleshwarOil: 1.27 MMT;Gas: 1.41 BCM

    AssamOil: 1.22 MMT;Gas: 0.49 BCM

    Ra ahmundr

    TripuraGas: 0.65 BCM

    50

    Mumbai offshoreOil: 15.57 MMT;Gas: 18.05 BCM

    CambayOil: 0.17 MMT;Gas: 0.008 BCM

    Oil: 0.295 MMT;Gas: 1.25 BCM

    CauveryOil: 0.238 MMT;Gas: 1.21 BCM

    Eastern OffshoreOil: 0.044 MMT; Gas: 0.056 BCM

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    NELP Blocks with ONGC

    ONGC has bid aggressively in NELP rounds . ONGC +ONGC Consortia

    has bagged 126 blocks , which is about 49% of the total 258 awardedblocks.

    NELP Round I II III IV V VI VII VIII IX TOTAL

    Blocks Awardedby GOI 24 23 23 20 20 52 44 36 16 258

    Awarded toONGC + ONGCConsortia

    8 16 13 14 8 25 19 17 6 126

    51

    BlocksSurrendered 5 15 7 4 4 0 0 0 0 35

    Blocks withONGC as (Operator + NonOperator)

    3 1 6 10 4 25 19 17 6 91

    Financial Performance.Financial Performance.

    Tuesday, November 12, 2013 52

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    Turnover (Income from Operations)

    83,309

    Rs Crore

    61,543 65,04961,983

    68,648,

    53

    2007-08 '2008-09 '2009-10 '2010-11 2011-12 2012-13

    ONGC: Net Profit

    Crore

    Net Profit at Rs 20,926 Crore

    ru e o pr ce rea za on

    Realizable Discount Realized

    FY08 85.54 32.64 52.90

    FY09 86.15 38.45 47.70

    15000

    20000

    25000

    . . .

    FY11 89.41 35.6 4 53. 77

    FY12 117.40 62.68 54.72

    FY13 110.74 62.89 47.85

    54

    0

    5000

    10000

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    Highest ever Dividend payout of ` 8,342 Crore

    ONGC: Dividend

    FY11: Bonus (1:1) and Share split to ` 5 face value

    40

    50

    60

    Dividend payout ratio (%)

    With tax

    entage

    6844 70587486

    8342 8128

    5000

    7500

    10000

    Dividend

    Crore

    0

    10

    20

    FY'07 FY'08 FY'09 FY'10 FY'11

    Payout in the range of 40-50%

    Perc

    55

    0

    2500

    Dividend amount excludes dividend tax

    Contribution to ExchequerRs CroreRs Crore

    3002028050 28098

    31776

    38287 40881

    56

    2007-08 '2008-09 '2009-10 '2010-11 2011-12 2012-13

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    Capital Expenditure

    Capex: Rs. 1,32,410 Crore in last 5 years

    Ca ex FY11

    21,82023,559

    28,276 29,24729,508

    Rs Crore

    57

    '2008-09 '2009-10 '2010-11 2011-12 2012-13

    ONGC: Global rankings

    Global l y Acclaimed.

    a s op nergy ompan es ran ng , c .

    # 3 E&P Company in the World.

    # 22nd Energy Company in the World.

    Forbes Global 2000 list for 2012, April2013

    # 155th in the Forbes Global 2000 list ofworld's biggest companies, based on Sales,ro , sse s an ar e cap a za on.

    Newsweek Green Rankings 2012

    # 386th on basis of cross-industry frameworkfor environmental commitment among global500 companies.

    58

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    Tuesday, November 12, 2013 59

    Key StrengthsStrong Supportfrom the GOI

    Maharatna PSE

    Highly attractiveIntl portfolio

    Operations

    Large provedreserves &geographic

    diversification

    w yrs oand Gas

    Experience

    Strong FinancialPosition

    Tuesday, November 12, 2013 60

    ttract ve ostStructure

    Excellent Oil andGas Infrastructure

    zea eExploration Area

    Applied R&D forE&P activities

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    DecliningProduction from

    the mature fields

    Key Weaknesses

    due to attrition for

    high-techoperations

    Product Pricing

    Limited autonomyfor overseas

    ventures

    Subsidy Sharing &Under recoveries

    Tuesday, November 12, 2013 61

    Proceduralconstraints

    Market

    determined

    pricing of Natural

    GasIntegration in

    Incrementalrecovery from

    Key Opportunities

    Bringing locked

    Reserve to

    stream

    Unexplored

    producing assets

    Domain Expert

    &

    Outsourcing

    Tuesday, November 12, 2013 62

    Opportunities

    DomesticAcreages

    Infrastructure

    Development

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    Continued

    subsidy sharing

    Highly volatile

    Key Threats

    High rate of

    Ageing Assets &Infrastructure Security Risk

    cru e o pr ces

    Tuesday, November 12, 2013 63

    Exploration risk inDeepwater &

    Frontier Basins

    Constrainedcompetition

    Geopolitics

    StrategiesStrategies

    ForFor better tomorrow.better tomorrow.

    Tuesday, November 12, 2013 64

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    Corporate Plan

    .

    No plan is sacrosanct & complete in itself.

    The environment in which we operate changes

    continuously

    We have to update ourselves continuously to be

    competitive for survival and growth.

    Tuesday, November 12, 2013 65

    Hydrocarbon exploration is a risky business, so

    does all the business.

    Integration of knowledge & use of technology can

    reduce the risk of doing business.

    Intensive exploration in established basins

    Corporate Plan

    Thrust to Deepwater & Frontier basinsAdd additional 6 btoe IIH

    IOR Programme

    Strategies Strategies

    Tuesday, November 12, 2013 66

    in 15 MajorFieldsfor recoveryimprovement

    equity oilFrom overseasassets

    Corporate

    Plan

    2000-2020

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    Strategic GoalsFocus on domestic and international Oil & GasFocus on domestic and international Oil & Gas

    exploration and product ion business opportunitiesexploration and product ion business opportunities

    To double accretion of Initial In-place hydrocarbons from

    6 billion tones to 12 billion tones in next 20 Years

    Improve Global Recovery Factor from 28% to 40% by 2020

    20 MMT per annum Equity Oil & Gas equivalent from

    overseas by 2020 through OVL

    22

    33

    Accelerated development of Oil & Gas fields

    Monetization and development of small and marginal fields

    44

    55

    Strategic GoalsRetained dominant position in Indias energy availabilityRetained dominant position in Indias energy availability

    Induct ion of Technology & Systems for Deep Water

    Gas flaring to be minimized

    Exploration & Production

    Reducing idle Inventory 7`7`

    88

    Upgradation of technology

    Dedicated to excellence by leveraging competitiveDedicated to excellence by leveraging competitive

    advantages in R&D and Technologyadvantages in R&D and Technology

    99

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    Strategic Goals

    Abiding commitment to heal th, safety and environment to enr ichAbiding commitment to heal th, safety and environment to enr ichquality of community lifequality of community life

    Emphasis on Health, Safety and Environment HSE

    Imbibe high standards of business ethics and organizational valuesImbibe high standards of business ethics and organizational values

    Foster a culture of Trust, openness and mutual concern to makeFoster a culture of Trust, openness and mutual concern to make

    1010

    working a stimulating & challenging experience for our peopleworking a stimulating & challenging experience for our people

    Human Resource Development 1111

    To double Reserve Accretion

    Adopted in 2001; Revisited in Nov2011Strategic Goals

    rom o y

    To improve Recovery Factorfrom 28% to 40% by 2020

    To accrete resources of 1 Billion Tonnesfrom unconventional sources of energy by

    ONGC #2 E&P Company in the world

    To source 20 MMTPAequity Oil & Gas by 2018

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    Perspective Plan - 2030

    Aspirations

    Fold production growth in E&P

    Fold growth in Revenue & EBITDA

    Fold rowth in Market Ca italization

    71

    Shaping moves to be launched

    Fold growth in international E&P

    production

    Perspective Plan - 2030

    .mmtoe/year of O+OEG by 2030

    2. Secure alliance for new resourcetypes

    3. Unlock 450+ mmtoe from domestic

    YTF (yet-to-find) reserves

    Shaping

    Moves

    72

    4. Accelerate 300-400 mmtoe of(re)-developments

    5. Build non-E&P business to 30%of group revenue

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    1. Strengthen OVL processes &

    Perspective Plan : 2030

    ec n ca sys ems

    2. Continued regulatoryengagement on prices & policy

    3. Strengthen staffing &capabilities in focus areas

    Supporting

    73

    4. Improve services delivery undernew operating model

    5. Align R&D with 2030 technologypriorities

    1. Sustained production growth 4-

    Perspective Plan : 2030

    2. > 130 mmtoe production in 2030(50% international)

    3. 1,300 mmtoe proved reserves

    ONGC

    2030

    74

    4. 6.5 GW alternate energy, 9MMTPA LNG

    5. Full downstream value capturein petrochemicals

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    THANK YOU

    Wish You all a bright &

    Tuesday, November 12, 2013 75

    prosperous career.

    Till 31st March 2011, Government of India realized Rs. 14,380Crore through disinvestment of 26% equity in ONGC.

    ONGC: The Value Creator

    The Govt . of India promoted ONGC with equity of Rs 342.85

    Crore contr ibuted over 22 years during 1959 to 1981.

    Govt. of India: ` 47,143 Crore

    Other shareholders: ` 14,387 Crore

    Dividend payment:

    61,530 Crore

    Central exchequer:`

    224,305 CroreContribution to exchequer:

    An investment of 342.85 Crore

    value-multiplied >1400 times tocumulative contribution of

    4,80,933 Crore a e overnmen s: , rore282,577 Crore

    122,446 CroreSubsidy to OMCs

    234,677* Crore (Value of Govt. share `173,989 Crore)

    Market Capitalization** As on 1.11.2011

    ONGC a Wealth Creator

    PlusMarket Cap of ` 214,957 Crore

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    ONGC Videsh Ltd. (OVL)

    OVL is wholly owned subsidiary of ONGC

    International E&P company operating in 15

    countries with 33 projects

    1965: formed as Hydrocarbons

    India Limited

    Tuesday, November 12, 2013 77

    : ename as

    Videsh Limited

    Indias biggest MNC Overseas investment more

    than 650 billion

    ONGC Videsh : Global footprint

    30 Projects in 15Countries

    14

    Exploration

    5

    Discovered

    10Producing

    Venezuel

    a

    1 1

    Cuba 2

    Colombia 5 1

    3 1

    2 Russia

    2 Myanmar

    1 Vietnam

    1 Kazakhstan

    Libya 1

    Nigeria 1

    North Sudan3

    South Sudan

    1 Iraq

    1 1 Syria

    1 Iran

    78*30th Project is North Sudans 741 km long completed Pipeline

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    Mission

    looking view of what an organisationwishes to become, a Mission is whatan organisation is & why it exists.

    It focuses on questions like:

    Tuesday, November 12, 2013 79

    What is our business

    What will it be What it should be

    Mission Statements: Good & Bad

    for Life and to inspire the Next Generationof Explorers.

    Does a good job of expressing the core values of the organization. Also conveysunique qualities about the organization.

    Tuesday, November 12, 2013 80

    .Too vague and unclear. Need more descriptive information about what makesthe organization special.

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    ONGC accounted for 57% of countrys O+OEG production in FY11 Crude oil: 72% & Natural Gas: 48%

    ONGC: O+OEG Production

    ONGC72%

    OIL10%

    Others18%

    ONGC48%

    OIL5%

    Others47%

    Crude oil production Natural gas production

    Source: MoP&NG

    ONGCs production includes its share in PSC JVs

    81

    Tuesday, November 12, 2013 82

    SWOT Analysis

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    RecognitionsRecognitions

    ran e n or es o a s pr ,2010); Topper from India based on Sales, Profits, Assetsand Market capitalization.

    PFC Energy 50: 21th among top 50 publicly traded GlobalOil & Gas Companies (Jan, 2011)

    Tuesday, November 12, 2013 83

    Financial Express FE-500 Survey: 2nd

    position in Indiancompanies for 3rd consecutive year.