I, on behalf of the Board of Directors of your Company, am pleased to share with you
the achievements and highlights of your Company during the financial year ended March 31,
2017 and to present the 24th Annual Report on the business and operations of Oil and
Natural Gas Corporation Ltd. (ONGC) and its Audited Financial Statements with the
Auditors' Report and Comments on the Accounts by the Comptroller and Auditor General (CAG)
of India and the reply of the management thereto.
The challenges that marked the macro environment, viz. low commodity prices, uncertain
demand outlook and slow global economic recovery, in FY'16 persisted in FY'17 as well.
Crude prices today are distinctly higher than they were in early 2016. However, it would
be prudent for oil and gas companies to remain wary as the recovery has not been as robust
and stable as one would have liked it to be. It is reflective of the larger economic
environment of the world where secular growth has not returned to the markets post the
global financial meltdown and the subsequent Eurozone slowdown. While this extended period
of low commodity prices poses challenges for E&P companies in terms of ambitious
exploratory efforts and development from difficult areas, it is a source of meaningful
monetary comfort for an import dependent economy likes ours. That being said,
price-related pressures are likely to ease going forward as companies learn to adapt and
improvise in this new normal' of low prices. We must not forget that our industry
has faced numerous challenges in the past and has always come out stronger each time. This
new normal' will also be defined and influenced by the international political
developments in the past one year and the remarkable growth (both in terms of investment
as well as capacity addition) of renewable energy sources, adding a further layer of
complexity to the operating environment of oil and gas. In this prevailing environment of
increased volatility and uncertainty, it has become more important than ever for companies
to sharpen their focus on promising growth avenues while consolidating their key areas of
For your Company, it meant a more aggressive approach to cost optimization and
operational efficiencies in our legacy business and stepping up activity in the area of
unmonetized discoveries with comprehensive planning and robust project management
Considering the critical importance of your Company in the country's overall energy
infrastructure, the decisions and actions of today will, to a large extent, not only set
the ground for a significant transformation that will enable it to contribute even more
expansively to the country's energy sector but also ensure its competitiveness in any
Our primary goals in FY'16-17 were to keep up the healthy pace of project execution,
improved productivity, operating costs optimization and wealth generation for all
stakeholders while doing our business safely and reliably.
Despite the challenges of the business and its surrounding environment, your Company
along with its group companies has registered yet another year of strong performance and
made substantial progress on most of these priority areas. In addition, performance in the
other areas of business where your Company has significant interests also recorded
Backed by an intensive and continuous exploration programme, your Company made 23 oil
and gas discoveries in various basins of India out of which eight discoveries have already
been monetized. During the year, your Company produced 22.25 MMT of oil against 22.37 MMT
during FY'16. Natural gas production was at 22.09 BCM against 21.18 BCM during FY'16,
thereby recording an increase of 4%. Your Company's share in domestic joint ventures'
production has been 3.28 MMT of oil and 1.18 BCM of gas. Combining the two, total domestic
production has been 25.53 MMT of oil and 23.27 BCM of gas. VAP production increased from
2.77 MMT in FY'16 to 3.24 MMT in FY'17 (increase of 17%) with contribution from C2-C3 and
Hazira plants. All joint ventures of your Company established for value-chain integration
i.e.,- ONGC Petro-additions Ltd. (OPaL), ONGC Teri Biotech Ltd. (OTBL), ONGC Tripura Power
Company Ltd., (OTPC), Petronet MHB Ltd. (PMHBL), Dahej SEZ Ltd. (DSEZ) and Mangalore SEZ
Ltd. (MSEZ) are now operational and have started generating revenue. The significant
milestones achieved by your Company during 2016-17:
Your Company made 23 Oil and Gas discoveries out of which 13 were Onshore and 10
4 of these discoveries are in New Exploration and Licencing Policy (NELP) blocks.
Focusing on quick monetization, 8 of these discoveries have already been put to
With these 23 discoveries, your Company accreted 64.32 MMtoe of 2P reserves in
the domestic fields. RRR with 2P reserves during the year has been 1.45.
With Jabera discovery, Vindhayan Basin has made entry into the oil reserves map
With recent discoveries in Kutch offshore, focus is on bringing this new basin
Your Company has taken up development of KG-DWN-98/2 block in Krishna-Godavari
(KG) Basin with an investment of more than US$ 5,000 million (approx. Rs. 340,000
million). Peak oil from the field is around 78,000 bpd and gas @ 15.57 MMSCMD.
Gas production commenced from S1 Deep Water field (water depth around 280M) in
KG Basin @ 0.9 MMSCMD and the first Deep Water gas well to fetch a price of US$ 5.05 per
MMBTU under government approved pricing and market freedom policy.
Gas sales increased from 16.08 BCM in FY'16 to 17.06 BCM in FY'17; an increase
of 5.80 %.
Your Company deployed 35 rigs in offshore, the highest ever and drilled 501
wells again the highest ever (401 development wells, the highest ever). Commercial speed
during the year has been 1,472; an increase of more than 24% compared to 2015-16.
Testing the efficacy of B-90 culture in the wells of Becharaji field Microbial
Enhanced Oil Recovery (MEOR) job was carried out in 3 wells of Bechraji in 2016-17.
Gas flaring during the year has been 529 MMSCM which reduced from 3.06% (FY'16)
to 2.40% (FY'17); a reduction of 21.6% over the previous year.
Additional development of Vasai (East): facility creation (2 well platforms and
Subsea pipeline) completed. 12 wells out of 20 wells drilled and added additional oil
production of 7000 BOPD.
Besides 28 ongoing oil and gas development projects, 6 development projects
worth Rs. 76,700 million have been taken up during FY'17. The projects are NW B-173A,
B-147, BSE-11, 4th phase of NBP Field and R-Series and redevelopment of Santhal field.
Your Company signed Farm-in/Farm-out (FIFO) agreement with GSPC on 10th March,
2017 to acquire 80% PI with operatorship in block KG-OSN-2001/3.
Commencement of Coal Bed Methane (CBM) field development operations in Bokaro
and North Karanpura.
Gross Revenue of the Company stood at Rs. 779,078 million and for ONGC Group it
has been Rs. 1,421,490 million.
Your Company recorded a Net Profit of Rs. 179, 000 million during the year under
review. Net Profit of ONGC Group increased by 59% to Rs. 204, 979 million ( Rs. 128, 752
million in FY'16).
ONGC Videsh Limited (OVL), a wholly owned subsidiary of your Company, registered
highest-ever production of 12.80 MMtoe of O+OEG during the year. It recorded Gross Revenue
of Rs. 100,800 million and Net Profit of Rs. 6,974 million (against loss of Rs. 36,401
million in FY'16).
Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of your
Company, recorded highest-ever throughput of 16.27 MMT during FY'17.
Hon'ble PM Shri Narendra Modi inaugurated and dedicated ONGC Petro-additions Ltd.
(OPaL), promoted by your Company, to the nation on 7th March 2017.
MRPL recorded 17% increase in Turnover to Rs. 599,801 million ( Rs. 509, 623
million during FY'16) and highest ever Net Profit of Rs. 32,932 million ( Rs. 5,058
million in FY'16).
ONGC Tripura Power Company Ltd. (OTPC) clocked highest-ever Annual Gross
Generation of 4,170 million units.
Six ONGC team members successfully accomplished Mission Everest. This is first
time that a Corporate has taken a Mission to send its team to mount the highest peak of
These achievements reflect your Company's proven commitment towards sustained growth
and performance excellence. Consistently driven by well-defined growth strategies, your
Company delivers and improves performance year-on-year basis which is the benchmark of
excellence in various facets of E&P activities and has also been well recognized
through peer-and-public evaluations.
Your Company has been ranked number one E&P Company in the world by Platts Top 250
Global Energy Company Rankings-2016 and 20th among global energy majors based on assets,
revenues, profits and Return on Invested Capital. The leading international business
journal Forbes has ranked ONGC the 3rd largest in India and 220th worldwide based on
sales, profit, assets and market value. Your Company has strengthened its brand position
in India, climbing from 10th position during previous year to 7th position, according to a
study conducted by consultant Brand Finance. Further, the 2016 EU Industrial R&D
Scoreboard' listed your Company at the 12th position in the list of oil and gas companies
based on Research and Development (R&D) expenditure.
During FY'17, your Company made 23 Oil & Gas discoveries out of which 13 were
Onland and 10 were Offshore including 4 discoveries in the blocks awarded under NELP. All
these 23 discoveries are healthy pointers to the continued performance of the Company's
exploratory efforts. Details of these discoveries are tabulated as below:
||Krishna Godavari (KG Offshore-SW) Basin
||Oil & Gas
||Mumbai Offshore Basin
||Oil & Gas
||Assam Shelf Basin
||Oil & Gas
||Assam Shelf Basin
||Oil & Gas
||Mumbai Offshore Basin
||Oil & Gas
||Krishna Godavari (KG
||Oil & Gas
||Mumbai Offshore Basin
||Oil & Gas
||Cambay Onland Basin
||Oil & Gas
|10 D-30-2/ D-30-A
||Mumbai Offshore Basin
||Oil & Gas
||Krishna Godavari (KG
|11 G-1-N-2 / G-1-N-AB
||Oil & Gas
||Kutch Offshore Basin
||Oil & Gas
||Saurashtra Offshore Basin
||Cambay Onland Basin
||Assam Shelf Basin
|16 Nadiad/ Nadiad-4/NDDA
||Cambay Onland Basin
|17 Kesanapalli / Kesanapalli West Deep -1 /KWD-AA
||Krishna Godavari Onland Basin
||Oil & Gas
|18 West Penugonda/ Thurupu Vipparu-1 / TVAA
||Krishna Godavari Onland Basin
|19 B-12C / B-12C-2 / B-12C-A
||Mumbai Offshore Basin
|20 Geleki / G-390 / GKHX
||Assam Shelf Basin,
|21 Khoraghat / Khoraghat-38_Z / KHBB_Z
||Assam Shelf Basin
||Oil & Gas
||Cambay Onland Basin
||Cambay Onland Basin
The significant discoveries are - Kesanapalli West (KG Basin), Suphayam and Dayalpur
(Upper Assam). SupahyanandDayalpurhaveopenedupnewexploration targets by establishing
multilayered hydrocarbon occurrence. With Jabera discovery, your Company brought Bindhayan
Basin onto the oil reserve map of India.Withthese23discoveries,yourCompanyaccreted 64.32
MMtoe of 2P reserves in the domestic fields.
|Discoveries put on production
In KG Offshore, two new oil finds, each one in shallow water (GS-71) and deep water
(G-1-N) have produced much encouraging results during initial production testing. 8 out of
13 onshore discoveries have already been put on production during FY'17 itself. The
ultimate reserve of 8 monetized discoveries is 3.4 MMtoe and has production potential of
0.218 MMtoe of O+OEG per year.
Re-assessment of Hydrocarbon Resources
Government of India (GoI) initiative for "Re-assessment of Hydrocarbon
Resources" in Indian sedimentary basins has been undertaken by your Company. About
100 geoscientists of ONGC, in 12 working teams, are on the job. These studies are ongoing
in 26 different basins - onshore, shallow water, deepwater. The project is expected to be
completed by Nov'17.
National Seismic Programme
Your Company has been actively associated with National Seismic Programme (NSP),
initiated by Government of India under which 48% of unappraised sedimentary in onland area
is being covered through seismic survey. Out of proposed acquisition, processing and
interpretation (API) of 48,243 LKM of onland data, your Company will be taking up API of
40,835 LKM in all states other than North East (NE).
Details of discoveries in NELP blocks (since inception till 01.04.2017)
Out of the 114 NELP blocks awarded to/acquired by your Company, as the operator, 32
blocks are operated presently and the remaining 82 blocks are relinquished so far.
Exploration/ appraisal programme is under way in all the active blocks. As on 01.04.2017,
your Company has a total of 64 discoveries, out of these, 58 discoveries (18 in deep
water, 21 in shallow water and 19 in onland areas) are in 25 NELP blocks and the remaining
6 discoveries (4 deep water, 2 onland) fall under two blocks acquired from other
operators. Commencement of production from these discoveries is governed by stipulation
laid down in the respective Production Sharing Contracts (PSCs) and will be taken up after
successful completion of appraisal programme followed by submission of Declaration of
Commerciality (DoC) and approval of Field Development Plan (FDP) by Directorate of Hydro
Reserve accretion & Reserve Replacement Ratio (RRR)
During the year, accretion to in-place Hydrocarbons (3P-Proved, Probable and Possible),
from the Company operated fields in India, has been 203.24 million metric tonnes (MMT) of
Oil and Oil equivalent Gas (O+OEG), out of which about 87 percent accretion has been due
to exploratory efforts. Reserve Replacement Ratio (RRR) during the year has been 1.45.
Total in-place reserve accretion during 2016-17 in domestic basins, including the
Company's share in PSC JVs, stands at 210.61 MMtoe (7.37 MMtoe from JVs). As on
01.04.2017, total in-place hydrocarbon volume of ONGC group stands at 9,655.36 MMtoe
against 9,444.74 MMtoe as on 01.04.2016. The ultimate reserves (3P) have been estimated at
3,132.35 MMtoe as against 3,075.51 during the FY'16. Voluntary disclosures in respect of
Oil & Gas Reserves, conforming to SPE classification 1994 and US Financial Accounting
Standards Board (FASB-69) have been followed in your Company. The following table gives
the details of reserve accretion (2P-Proved and Probable) for the last 5 years in domestic
basins as well as from the overseas assets:
||Domestic Assets (1)
||ONGC's share in domestic JVs (2)
||Total Domestic (3)=(1)+(2)
||ONGC Videsh's Share in Foreign Assets (4)
Statement of Reserve Recognition Accounting (RRA)
Reserve Recognition Accounting (RRA) is a voluntary disclosure towards recognizing
income at the point of discovery of reserves and seeks to demonstrate the intrinsic
strength of an organization engaged in exploration and production of hydrocarbons with
reference to its future earning capacity in terms of current prices for income as well as
expenditure. This information is based on the estimated net proved reserves (developed and
undeveloped) as determined by the Reserves Estimates Committee of the Company. As per
FASB-69 on disclosure about Oil and Gas producing activities, publicly traded enterprises
in USA that have significant Oil and Gas producing activities, are to disclose with
complete set of annual financial statements, the following supplemental information: a)
Proved Oil and Gas reserve quantities b) Capitalized costs relating to Oil and Gas
producing activities c) Cost incurred for property acquisition, exploration and
development activities d) Results of operations for Oil and Gas producing activities e) A
standardized measure of discounted future net cash flows relating to proved Oil and Gas
reserves quantities Your Company has disclosed information in respect of (a) to (d) above
in the Annual Financial Statements. Your Company has also made voluntary disclosure on
standardized measure of discounted future net cash flows relating to proved oil and gas
reserves at Annexure-A' to this report as statement of RRA.
Oil & Gas Production
On standlone basis, in FY'17 the Company's domestic crude oil production level
registered at 22.25 MMT against 22.37 MMT in FY'16. Oil production from onshore assets
increased by 2.4% while offhore registered a decline of 1.6%. Increase in onshore oil
production has been mainly due to various initiatives and early monetization of
discoveries in Ankleshwar, Cauvery (Madnam) and Rajahmundry (Keshnapalli West), etc.
Domestic PSC JVs contributed 3.31 MMT of oil against 3.56 during FY'16.
Natural gas production (from domestic operated fields) during FY'17 has been 4% higher
than the previous year (22.09 BCM against 21.18 during FY'16). The Company's onshore gas
production increased by healthy 9.1% where as offshore production increased by 2.9%.
Onshore gas production increased mainly due to commissioning of GDUs in Rajahmundry,
drilling of development wells and commissiong of Sonamura GCS in Tripura and GS-4 well in
Gandhar. Incremental gas production in offshore was contributed by C-26 cluster/Daman
fields in Western Offshore and Deep Water well S2AB in Eastern Offshore. Further most of
Assets registered increase in gas production during the year. Your Company's share in oil
and gas production from PSC JVs has been 3.29 MMT and 1.18 BCM respectively.
Oil & Gas production of ONGC Group, including PSC-JVs and from overseas assets for
FY'17 has been 61.60 MMtoe (against 57.38 MMtoe during FY'16); an increase of 7.4%. Out of
the total production of 33.96 MMT of crude oil, 65.5 per cent production came from the
Company operated domestic fields, 24.8 per cent from the overseas assets and balance 9.7
per cent from domestic joint ventures. As far as natural gas production is concerned,
majority of production (79.9 per cent) came from the Company operated domestic fields,
15.8 per cent from overseas assets and 4.3 per cent from domestic joint ventures.
||Value ( Rs. in millions)
Production from Overseas Assets
During the year total production from overseas assets has been 12.80 MMtoe of O+OEG
(Oil: 8.43 MMT; Gas 4.37 BCM) against 8.92 MMtoe during FY'16; an increase of 43% mainly
due to incremental production from Sakhalin-1 (Russia) and additional production on
account of acquiring 26% share acquisition in Vankorneft. Russia (56%), Vietnam (12%),
Azerbaijan (7%), and Myanmar (7%) contribute 82% of equity oil and gas followed by Brazil
(5%), Venezuela (4.9%), Colombia (4.3%) and Sudan (3.8%).
Your Company gives utmost importance for induction and upgradation of technology in
various areas of its operations to remain competitive. During the year the following
technology were inducted:
Suitable polymer squeezing technology to arrest sudden rise in water cut in
North Kadi field of Mehsana Asset - Job execution in 8 No. of wells done
Deep Penetrating Retarded Acid System (DPRAS) & Self Diverting Acid
Stimulation technology for wells of NBP & other fields of Mumbai Offshore - job
execution in 30 No. of wells done
Technology for deliquification for reviving production from gas wells of
Ahmedabad Asset. The same is implemented in 2 No. of wells
Resource optimization through Batch Drilling in Offshore & Pad Drilling in
Under Balanced Drilling
Technology penetration in onshore drilling at par with offshore
Use of Advanced Hybrid bits
Exploration of different hydrocarbon
(a) Basement Exploration:
Concerted efforts for Basement Exploration, a frontier exploration play, have been
taken up by the Company as a major initiative. The prospects achieved success in Mumbai
Offshore, Kutch offshore, Cambay, Cauvery and A&AA Basin have further enhanced the
scope of basement exploration. During the year, Basement fracture modeling and
prospectivity analysis are also in progress in Assam & Arakan, Cauvery and KG and
Kutch Offshore and West of Mumbai High Area of Western Offshore basins. Fracture model
developed for Madnam field has been validated by Production Logging Tool (PLT) logs
recorded in well MD-3 Sub and MD-7. Further, 7 exploratory wells and 8 development wells
were drilled in different basins for basement prospect. In A&AA Basin, exploratory
well SU-3 flowed 3.5-7.2 m3/day oil with 11000 m3/day gas from basement during production
testing. B-121-8 in Western Offshore Basin flowed oil @200 Barrels/day through "
choke, well BH-75 gave oil indications from basement during testing and another well
N-24-5 in Mumbai High Field flowed oil at 190 barrels/day from Basaltic Basement. In
Cauvery basin development well MD-3 Sidetrack, MD-7, MD-8 and MD-9 have flown oil from
basement. In Madnam field cumulative oil gain is around 300 m3/day from basement.
For the development of discoveries in basement play, FDP approval has been obtained for
Madanam Field and plan is under implementation. PML of Madanam field has been granted by
GoI and grant from state government is awaited. FDP of Pandanallur Field, which also has
basement play, has been submitted to DGH for approval.
(b) Exploration in HP-HT & Tight Reservoir:
Fields/Reservoirs with a sub-surface pressure of more than 10,000 psi and temperature
of more than 350F are classified as HP-HT reservoirs. The Company has prioritized
HP-HT/Tight/Deeper plays in KG, Cauvery, Western Offshore Basin and Assam & Arakan
Fold belt where such environment have been encountered during exploration for deeper pays.
These plays have been an exploration challenge for drilling as well as for testing. In
addition, your Company after acquiring the operatorship of NELP block KG-ONN-2003/1 has
submitted the FDP of two discoveries made in the block. Further, hiring desired
technological support/ services from domain consultants and service providers are explored
to maximize established/potential for monetization. An action plan has been prepared
During the year, one well D-33-7, in Mumbai Offshore was drilled and proved the
presence of oil & gas. Another well Bantumilli South-3 in KG basin will be taken up
for further drilling by suitable drilling rig at a later date. An R&D project has been
taken up for formulating alternative clear fluid of weight greater than 15 ppg which can
sustain pressure up to 15,000 psi and temperature up to 550F through IIT, Chennai under
PAN India-IIT MoU with the Company.
for monetization of 3 HPHT Fields - Nagayalanka, Periyakudi and Bantumilli South and
first production from these efforts is likely to commence in 2017.
Unconventional & Alternate sources of energy
Your Company plans to continue its endeavor for exploration and development of
unconventional like - Shale (CBM) etc. and alternate sources of energy. Necessary action
plan is being worked out for exploration and exploitation of Non-Conventional and
Alternate Sources of energy which has been perceived as the future sources of energy. The
initiatives towards this are summarized below:
(a) Shale Gas/Oil Exploration:
Exploration for assessing the Shale gas/oil prospectivity has been initiated in 4
basins of the country viz., Cambay, KG, Cauvery and A&AA Basins as per the policy
guidelines notified by Government of India (GoI) for exploration and exploitation of shale
gas and oil by National Oil Companies (NOCs), your Company has identified 50 nomination
PML (Petroleum Mining Lease) blocks under Phase-I. As on 31.03.2017, 22 assessment wells
(5 exclusive shale gas in Cambay basin and 17 dual objective wells) in 19 PML blocks have
been drilled and required data are being generated/ evaluated for Shale gas/oil
assessment. During the year, 4 dual objective wells in Cambay basin have been drilled.
Laboratory studies of core and cutting samples collected in wells during the current year
are in different stages of completion. A second zone in well JMSGA (JM#55) (instead of
well number field/block may be mentioned) has also been hydro-fractured (HF) and
indication of oil was observed during post-HF activation. Cumulative oil knocked out till
21.03.2017 was 2.35 m3. The well has been put on Gas Lift Value (GLV) for effective
activation. Earlier, the well cumulatively flowed 19 m3 of oil with gas and about 173 m3
of flow back water from first zone.
(b) Coal Bed Methane (CBM):
The Government of India awarded total 33 blocks to various operators through four
rounds of bidding and nomination. Out of these, your Company was awarded 9 CBM Blocks. Due
to poor CBM potential, concluded on the basis of data generated in the exploratory
activities, five blocks viz. Satpura (Madhya Pradesh), Wardha (Maharashtra),
Barmer-Sanchor (Rajasthan), North Karanpura (West) and South Karanpura (Jharkhand) have
Currently, the Company is operating in four CBM Blocks i.e. Jharia, Bokaro and North
Karanpura in Jharkhand and Raniganj in West Bengal. FDP for Bokaro and North Karanpura
Blocks have been approved and development activities are underway.
(c) Gas Hydrate Exploration:
Your Company has been an active participant in the National Gas Hydrate Programmes
(NGHPs). Towards this, Gas Hydrate Research & Technology Centre (GHRTC) was
established on 14th September, 2016 at Panvel. The Centre would give impetus to the Gas
Hydrate research & technology development and contribute to GOI's plan to
commercialize Gas Hydrates as energy resource at the earliest.
(d) Alternate sources of energy
For harnessing alternate sources of energy, your Company took structured initiatives.
The contract for installation of a 10 MW Solar Plant at Hazira was awarded in
2016-17. The Notification of Award (NOA) was placed on 23.02.17 with scheduled completion
period as seven months from NOA
One 40 KW Roof Top Solar Power plant at KV Hazira was commissioned in
2016-17(06.03.17). Another three 20 KW Roof Top Solar Power plants were installed in
Ahmedabad at IRS, Logging Section and Fire Station in December 2016.
Oil & Gas Projects
(a) Projects completed during FY'17
|Name of the Projects
||Completion/ Commencement of Production
||Total Investment ( Rs. in Million)
||Envisaged Oil & Gas Gain
|1. Additional Development of Vasai East
||1.827 MMT of oil and 1.971 BCM of gas by 2029-30 0.567 MMT of oil and
|2. Improved Oil Recovery of B-173A Field
||0.071 BCM of gas by 2025-26
|3. Reconstruction of BPA & BPB Platforms
|4. Construction of 6 ETPs,Five at Ahmedabad and
|One at Ankleshwar
(b) Projects initiated during FY'17
The following 6 development projects were taken up.
|Name of the Projects
||Estimated Cost ( Rs. in Million)
||Incremental Oil & Gas Gain
|1. NW B-173A Development Plan for Exploitation of Mukta pay NW B-173A Field
||0.760 MMT of oil and 0.213 BCM of gas respectively by the year 2031-32.
|2. 4th Phase Development of NBP field
||2.08 MMT of oil by the year 2031-32.
|3. Development of BSE-11 Block
||0.20 MMT of oil, 0.37 MMT of condensate and 0.568 BCM of gas by 2030-31
|4. Development of B-147 field
||0.489 MMT of oil and 0.708 BCM of gas by year 2029-30
|5. Development of R-series fields including revival of R-12 (Ratna)
||7.03 MMT of oil and 0.881 BCM of gas by the year 2035-36
|6. Redevelopment of Santhal field
||3.44 MMT by the year 2029-30
(c) Implementation of IOR/Redevelopment Schemes
To arrest the decline and improve recovery factor from mature fields, your company has
successfully implemented several IOR schemes to sustain/augment oil & gas production
from major offshore producing fields - Mumbai High, Heera & Neelam since year 2000-01.
To further improve the recovery from the matured fields, three major IOR Projects were
initiated during the FY' 14-15 and 15-16 and are as under: ?? Two IOR Projects were
initiated in FY 15 viz. "Mumbai High North Redevelopment Phase-III Project
with an investment of
Rs. 58,132.5 Milliion envisaging 6.997 MMT of oil and 5.253 BCM of gas by 2030 and Mumbai
High South Redevelopment Phase-III Project with an investment of Rs. 60688 Million
envisaging 7.547 MMT oil and 3.864 BCM gas by 2030.
Production has commenced on both the above projects.
?? One IOR projects was initiated in FY 15-16 i.e. "Neelam Redevelopment
Plan for Exploitation of Bassein and Mukta pay of Neelam field" with an
Rs. 28188.8 Million. The project envisages incremental production of 2.76 MMT of oil
and 4.786 BCM of gas by year 2034-35.
(d) Fast track monetization of Marginal Fields
Your Company is developing new and marginal fields in fast track to augment the oil and
gas production. It is pertinent to mention here that many marginal fields in western
offshore which were not techno-economically viable for exploitation earlier on standalone
basis are now being developed with cluster concept. Some of the marginal fields put on
production in the last few years include NBP (D-1) with its additional development/
development of lower Pays, Vasai West, Vasai East with its additional development, North
Tapti, BHE , SB-14, B-46 Cluster fields, C-24 cluster fields, B-22 Cluster fields, B-193
cluster fields, Cluster-7 fields and WO-16 cluster fields.
In addition, production has commenced from "Development of C-26 Cluster
Fields" and "Daman Development" projects in 2016-17 and would contribute
further with drilling of more wells under these projects. Monetization of marginal fields
under B-127 cluster is under implementation and would contribute in the coming years.
(e) Development of fields in Eastern Offshore
Major thrust is being given to develop discoveries made in the Krishna Godavari basin
which is a promising basin with various discoveries like G1/GS-15, Vasishtha, S1, GS-29
and KG-DWN-98/2, etc.
Your Company is vigorously pursuing to develop these fields as early as possible. The
production from shallow water field GS-15 and deep water field G-1 has already commenced.
Presently "Integrated Development of Vasistha & S-1 Fields" is under
implementation and is aimed to contribute 15.95 BCM of gas by year 2026. The production
has commenced from deep water well S2AB under this project from May 2016 utilizing the
existing G1 field facilities and remaining wells are under drilling and would contribute
in coming years. Further, to boost up oil and gas production from Eastern Offshore, one
mega project for development of cluster 2 fields of NELP Block KG-DWN-98/2 was initiated
in March 2016. The project is under implementation and envisages production of 23.526 MMT
of oil and 50.7 BCM of gas by 2034-35.
Development of other discoveries in KG offshore such as KG-DWN-98/2 (Cluster-I &
III fields), GS-49 and GS-29, G-4-6 fields, shallow water NELP block KG-OSN-2004/1, etc.
are under various stages of appraisal/approval for development. In addition to above
initiatives, after the decision of Government of India to revert Ratna and R-Series fields
in Western Offshore to the Company, Project "Development of R-series fields including
revival of R-12 (Ratna)" has recently been initiated, which envisages incremental
production of 7.03 MMt of oil and 0.881 BCM of gas by the year 2035-36.
1. Financial Results
The Ministry of Corporate Affairs (MCA), vide its notification in its official gazette
dated 16th February 2015, notified Indian Accounting Standards (Ind AS) applicable to
certain class of Companies. Ind AS has replaced the existing Indian GAAP prescribed under
section 133 of the Companies Act, 2013 read with Rule 7 of the Companies Accounts Rules,
2014. For ONGC, your company, Ind AS is applicable from April 1, 2016 with a transition
date of April 1, 2015 and IGAAP as its previous GAAP.
The following are the areas which had an impact on account of transition to Ind AS:
Fair valuation of certain financial instruments
Discounting of certain long term provisions like decommissioning provision
Valuation of loans by Effective Interest rate method
Accounting for proposed dividend
Deferred tax on the above adjustments
Valuation of equity instruments through other Comprehensive income The
reconciliations and descriptions of the effect of the transition from IGAAP to Ind AS have
been provided in notes to account at note 56 in the Standalone Financial Statements.
Despite volatility in the crude oil prices and reduction in natural gas prices during
2016-17, your Company has registered Gross revenue of
Rs. 779,078 million and earned a Profit After Tax (PAT) of Rs. 179,000 million, up by
10.91% over FY'16 ( Rs. 161,399 million).
| Gross Revenue
||Rs. 779,078 million
| Profit After Tax (PAT)
||Rs. 179,000 million
| Contribution to
||Rs. 387, 341million
| Return on Capital
| Debt-Equity Ratio
| Earnings/ Share ( Rs. )
| Book Value/ Share ( Rs. )
|Revenue from Operations
|Profit Before Interest Depreciation & Tax (PBIDT)
|Profit Before Tax (PBT)
|Profit After Tax (PAT)
Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of the
Companies (Accounts) Rules, 2014, a separate statement containing the salient features of
the financial statement of its subsidiaries, associate company and joint venture in Form
AOC-1, is appended to this report, which shall form part of the Financial Statements.
Your company paid first interim dividend of Rs. 4.50 per share of Rs. 5 each (90%)
which was pre-bonus. Second interim dividend of Rs. 2.25 per share (45%) was post- bonus.
The Board of Directors have recommended a final dividend of Rs. 0.80 per share (16%) post
bonus. This makes the aggregate dividend at Rs. 9.075 per share (181.5%) before
considering bonus as compared to 170% paid in 2015-16. The total dividend for 2016-17 will
be Rs. 77,641 million, besides Rs. 15,789 million as tax on dividend amounting to 52.20%
of PAT (inclusive of dividend tax). There was delay in remittance of unpaid dividend
aggregating Rs. 13.79 million to Invest Education and Protection Fund due to technical
reasons which was beyond the control of the Company.
3. Management Discussion and Analysis Report
As per the terms of regulations 34(2)(e) of the SEBI Listing Regulations, the
Management Discussion and Analysis Report (MDAR) forms part of the Annual Report of the
4. Financial Accounting
The Financial Statements have been prepared in compliance with Indian Accounting
Standards Ind-AS issued by The Institute of Chartered Accountants of India (ICAI)
effective from 01.04.2016 and provisions of the Companies Act, 2013. Further, as per
Ministry of Corporate Affairs (MCA) notification, the financial statements have been
prepared as per the format prescribed under the Schedule III to the Companies Act, 2013.
Loans, Guarantees or Investments
Your Company is engaged in Exploration & Production (E&P) business which is
covered under the exemption provided under section 186(11) of the Companies Act, 2013.
Accordingly, the details of loans given, investment made or guarantee or security given by
the company to subsidiaries and associates are not required to be reported.
Related Party Transaction
Particulars of contracts or arrangements with related parties referred to in section
188 of the Companies Act, 2013, under Form AOC-2, are placed in Annexure-B.
(I) ONGC Videsh Limited
ONGC Videsh, the wholly-owned subsidiary of your Company for E&P activities outside
India, has participation in 38 projects in 17 countries viz. Vietnam (2 projects), Russia
(3 projects), Sudan (2 projects), South Sudan (2 projects), Iran (1 project), Iraq (1
project), Libya (1 project), Myanmar (6 projects), Syria (2 projects), Brazil (2
projects), Colombia (7 projects), Venezuela (2 projects), Kazakhstan (1 project),
Azerbaijan (2 projects), Mozambique (1 Project), Bangladesh (2 Projects) and New Zealand
(1 Project). Out of 38 projects, 14 are producing, 4 are discovered/ under development, 16
are exploratory and 4 are pipeline projects. ONGC Videsh's share of oil and oil equivalent
gas (O+OEG) production, was 12.803 MMtoe during FY'17 as compared to 8.916 MMtoe during
FY'16 (43.60% higher). The oil production has increased from 5.510 MMT during FY'16 to
8.434 MMT during FY'17 (53.1% higher) and the gas production increased from 3.406 BCM
during FY'16 to 4.369 BCM during FY'17 (28.3% higher).
During FY'17, the Company has earned net profit after tax of Rs. 6,974 Million as
compared to a net loss of Rs. 36,401 Million during FY'16. The increase in profit is
mainly on account of higher production, higher crude oil prices and lower impairment
(a) Significant Acquisitions, Alliances and Operational highlights of ONGC
Videsh during FY'17:
ONGC Videsh successfully completed acquisition of 15% interest in Vankor Field located
in East Siberia of the Russian Federation on 31st May, 2016 from Rosneft Oil Company and
subsequently acquired additional 11% interest on 28th October, 2016. Vankor is Russia's
second largest field by production and accounts for about 4% of Russian crude oil
production. The daily oil production from the field is around 400,000 bopd on an average
and ONGC Videsh's share considering both the acquisitions is about 104,000 bopd.
Financing arrangements for above Acquisition:
ONGC Videsh Vankorneft Pte. Ltd., a step down wholly owned subsidiary of ONGC
Videsh raised USD 1 billion comprising of USD 400 million Senior Unsecured Notes due 2022
and USD 600 million Senior Unsecured Notes due 2026 in the international capital markets
in July 2016. The bond issuance was made at competitive rates and was well received by the
investors. The deal was awarded the "Best Corporate Bond" deal from India at The
Asset Triple A Country Awards 2016.
ONGC Videsh Vankorneft Pte. Ltd also raised finances by way of bridge loan to
acquire 11% interest in JSC Vankorneft in October 2016. The bridge loans were replaced in
April 2017 for which the company tied up facilities of USD 500 million and JPY 38 billion
syndicated for longer tenor at competitive prices from International commercial banks.
(b) During FY'17, ONGC Videsh signed the following Memorandum of Understanding (MoUs):
i. MoU with SOCAR Trading SA: ONGC Videsh and SOCAR Trading SA signed an MoU on
27th May, 2016 for co-operation in identified areas such as co-operation in joint
marketing of Azeri crude, other mutually agreed crude oil/gas etc.
ii. MoU with Dana Energy: ONGC Videsh and Dana Energy have entered into an MoU on
18th August 2016 for development of possible projects in Iran.
iii. MoU with Roseneft: ONGC Videsh and Rosneft, Russia signed an Agreement on 15th
October 2016 for mutual cooperation in the area of education and training.
iv. MoU with Ecopetrol: ONGC Videsh and Ecopetrol entered into an MoU on 8th March
2017 as a way-forward for realizing the common intention of relinquishing Block RC-10 and
transfer of pending Minimum financial commitments of Block RC-10 to new block(s).
v. MoU with Mubadala: ONGC Videsh and Mubadala Petroleum signed an MoU on 6th
February, 2017 for future collaboration in upstream oil and gas exploration, development
and production projects in third countries.
vi. MoU with Gazprom Neft PJSC: ONGC Videsh and Gazprom Neft signed an MoU on 29th
March, 2017 for cooperation for geological survey, exploration, appraisal, development and
production of hydrocarbons on the continental shelf of the Russian Federation and third
(c) Operations i. Syria: The ongoing geo-political situation in Syria including EU
sanctions and the resulting restrictions on contractors continue to adversely affecting
Syrian operations since December 2011.
ii. South Sudan: The operations in South Sudan projects are temporarily under
shutdown due to internal conflicts and adverse security situation in the country since
iii. Venezuela: As a part of remediation plan in San Cristobal project,
water injection (45 KBPD) facilities for phase-I are near finalization which will arrest
decline in production.
iv. PetroCarabobo: The crude sale and purchase agreement (SPA) was signed between
President PCB & PPSA in Nov 2016. After construction of pipelines, the changeover of
diluent from Naptha to Mesa-30 has been affected since 11th March 2017 and the JV is
producing Merey-16 to result in better value realization of extra heavy crude (XHO) being
v. Sakhalin-I, Russia: A new onland rig "Krechet" for Odoptu field has
been commissioned in early 2017 for stage 2 development of the Odoptu field with a
drilling plan of 32 wells.
Drilling of world's longest ERD well (O5-RD) in Chayvo field with measured length of
15000m is in progress. The well was spudded on 6th March 2017. Earlier world record of
longest well of 13,500m is also held by Sakhalin-I project.
Direct Subsidiaries and Joint Ventures of ONGC Videsh:
1. ONGC Nile Ganga B.V. (ONGBV): ONGBV, a subsidiary of ONGC Videsh, is
engaged in E&P activities directly or through its subsidiaries/Jvs in Sudan, South
Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25% Participating Interest (PI)
in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 0.481
MMT during FY'17. ONGBV also holds 25% PI in Greater Pioneer Operating Company (GPOC),
South Sudan. Due to adverse geo-political conditions, ONGC Videsh could not produce in
GPOC, South Sudan during FY'17. ONGBV holds 16.66% to 18.75% PI in four Production Sharing
Contracts in Al Furat Project (AFPC), Syria. Due to force majeure conditions in Syria,
there was no production in AFPC project during FY'17. ONGBV holds 40% PI in San Cristobal
Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal)
BV with its share of oil & oil equivalent gas production of about 0.475 MMTOE during
FY'17. ONGBV holds 27% PI in BC-10 Project in Brazil through its wholly owned subsidiary
ONGC Campos Ltd. with its share of oil and oil equivalent gas production of about 0.643
MMTOE during FY'17. It also holds 25% PI in Block
BM-SEAL-4 located in deep-water offshore, Brazil through its wholly owned subsidiary
ONGC Campos Ltd. ONGBV also holds 8.347% PI in South East Asia Gas Pipeline Co. Ltd.,
(SEAGP) for onshore Pipeline project, Myanmar through its wholly owned subsidiary ONGC
Caspian E&P B.V.
San Cristobal Project: Consequent to the signing of agreements on Pending Payments
and Financing of San Cristobal project for remediation plan between PdVSA and ONGC Nile
Ganga (San Cristobal) BV on 4th November 2016, PdVSA has paid USD 19.75 million till March
2017 to liquidate partly the outstanding dividend due from the JV Petrolera IndoVenezolana
2. ONGC Narmada Limited (ONL): ONL has been retained for acquisition of
future E&P projects in Nigeria.
3. ONGC Amazon Alaknanda Limited (OAAL): OAAL, a wholly-owned subsidiary of
ONGC Videsh, holds stake in E&P projects in Colombia, through Mansarovar Energy
Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China. During
FY'17, ONGC Videsh's share of oil and oil equivalent gas production in MECL was about
4. Imperial Energy Limited (IEL): IEL, a wholly-owned subsidiary of ONGC
Videsh incorporated in Cyprus, has its main activities in the Tomsk region of Western
Siberia, Russia. During FY'17, Imperial Energy's oil and oil equivalent gas production was
about 0.298 MMTOE.
5. Carabobo One AB: Carabobo One AB, a subsidiary of ONGC Videsh
incorporated in Sweden, indirectly holds 11% PI in Carabobo-1 Project, Venezuela. During
FY'17, ONGC Videsh's share of oil and oil equivalent gas production was about 0.151 MMTOE.
6. ONGC BTC Limited: ONGC BTC Limited holds 2.36% interest in the
Baku-Tbilisi-Ceyhan Pipeline ("BTC") which owns and operates 1,768 km oil
pipeline running through Azerbaijan, Georgia and Turkey. The pipeline mainly carry crude
from the ACG fields from Azerbaijan to the Mediterranean Sea.
7. Beas Rovuma Energy Mozambique Limited (BREML): BREML was incorporated in
British Virgin Islands (BVI) and holds 6% PI in Rovuma Area 1, Mozambique.
8. ONGC Videsh Atlantic Inc. (OVAI):
ONGC Videsh setup a Geological and Geophysical (G&G) Centre at Houston, USA through
its wholly owned subsidiary ONGC Videsh Atlantic Inc. The Centre caters to requirement of
G&G studies for potential new acquisitions of ONGC Videsh including G&G studies of
its existing portfolio of projects.
9. ONGC Videsh Rovuma Limited:
ONGC Videsh Rovuma Limited a wholly owned subsidiary of ONGC Videsh was incorporated in
Mauritius for re-structuring of 10% PI in Rovuma Area 1, Mozambique.
10. ONGC Videsh Singapore Pte. Ltd.: The Company was incorporated on 18th April,
2016 in Singapore for acquisition of shares in Vankorneft, Russia, through its subsidiary
ONGC Videsh Vankorneft Pte Limited. OVVL holds 26% shares in Vankorneft, Russia and its
share of production during FY'17 was 4.545 MMTOE.
11. ONGC Mittal Energy Limited (OMEL): ONGC Videsh along with Mittal Investments
Sarl (MIS) promoted OMEL, a joint venture company incorporated in Cyprus. ONGC Videsh and
MIS together hold 98% equity shares of OMEL 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 issued by ONGBV exclusively for Syrian Assets
and is being financed by Class-C Preference Shares issued by ONGBV.
(II)Mangalore Refinery and Petrochemicals Limited (MRPL)
Your Company continues to hold 71.62 per cent equity stake in MRPL, a Schedule A'
Mini Ratna and listed entity, which is a single location 15 MMTPA Refinery on the West
Performance Highlights FY'17
MRPL achieved the highest-ever throughput of 16.27 MMT in FY 2016-17 against 15.69 MMT
in FY 2015-16.
Marketing & Retail Operations
MRPL continues to expand its market spread in the direct sales segment of petroleum
products in Karnataka and its adjoining states. MRPL has significant market share and
direct customer relations for products such as Bitumen, Fuel Oil, Sulphur, Diesel,
Naphtha, Petcoke and Mixed Xylene in its refinery zone. The total sales volume of direct
marketing products including polypropylene during FY 2016-17 was 1858 TMT. MRPL has
penetrated the polypropylene market with additional grades and has achieved sales volume
of 264 TMT during FY 2016-17. The Company has in a remarkably short term achieved a
leadership position in south India for few large volume polymer grades.
Future projects of MRPL
The Company has taken up the enhancement of the Refinery capacity to 18/25 MMTPA with
low cost revamp. Land allocation of 1050 acres has been made by the Government of
Karnataka. Necessary steps are being taken to ensure compliance with BS- VI fuel quality
standards by the year 2020.
Acquisition of controlling stake in OMPL
Subsequent to OMPL having become a subsidiary of MRPL and a Government company under
Companies Act, 2013, the process of merger/ amalgamation of OMPL into and with MRPL is
ONGC Mangalore Petrochemicals Limited (OMPL)
OMPL has been promoted by your Company, which has set up Aromatic Complex with an
annual capacity 914 KTPA of Para-xylene and 283 KPTA of Benzene in Mangalore Special
Economic Zone (MSEZ) as value chain integration project of your Company. After the
successful commissioning of OMPL, MRPL has increased its equity from 3% to 51.002% in Feb,
2015 with balance 48.998% held by your Company and thus OMPL has became a subsidiary of
MRPL. The total project cost is about Rs. 69,110 million. OMPL commenced commercial
operation from 1st October, 2014. OMPL is presently operating at 95% capacity utilization.
During FY'17 OMPL achieved highest revenue of Rs. 52,565 Million with highest exports of
Rs. 37,412 million, establishing a niche presence in the international market.
6. Annual Report of Subsidiaries and Consolidated Financial Statement
The Consolidated Financial Statement for the year ended 31st March, 2017 of your
Company have been prepared in accordance with section 134 of the Companies Act, 2013, Ind
AS 110 "Consolidated Financial Statements" and Ind AS 28 "Investments in
Associates and Joint Ventures". The audited Consolidated Financial Statements for the
year ended 31st March, 2017 form part of the Annual Report.
Full Annual Report of subsidiaries of the Company will be made available to any
shareholder upon request, which is also available on Company's website. Further, Annual
Reports of MRPL and ONGC Videsh are also available on website www.mrpl.co.in and
www.ongcvidesh. com respectively.
7. Joint Ventures/ Associates
(a) ONGC Petro additions Limited
ONGC Petro-additions Limited (OPaL) is promoted by your Company as a Joint Venture (JV)
Company, with envisaged equity stake of 26% along with GAIL (8.85%). GSPC also has a token
presence in OPaL. The balance equity would be tied up with Strategic Partners/FIs or
through Public offer. OPaL is a mega petrochemical project at Dahej SEZ for utilizing
in-house production of C2-C3 and Naphtha from various units of ONGC. Hon'able Prime
Minister of India dedicated OPaL to the nation on 7th March, 2017. Total project cost of
OPaL is Rs. 270,110 million. OPaL successfully raised Rs. 72,860 million through
Compulsorily Convertible Debenture at competitive interest rates. With this the entire
equity of Rs. 112,300 million has been tied up. All units of OPaL were commissioned during
Dec'16 to Feb'17. The products of OPaL - Polypropylene, HDPE and LLDPE are well accepted
by the market.
(b) ONGC Tripura Power Company Limited (OTPC)
OTPC is promoted by your Company with an equity stake of 50% along with Govt. of
Tripura (0.5%) and IL&FS Energy Development Co. Ltd. (IEDCL - an IL&FS subsidiary)
(26%); the balance 23.5% has been tied up with India Infrastructure Fund - II acting
through IDFC alternatives Limited.
OTPC has set up a 726.6 MW (2 X 363.3 MW) gas based Combined Cycle Power Plant at
Palatana, Tripura at a project cost of Rs. 40,470 million. The basic objective of the
project is to monetize idle gas assets of your Company in land-locked Tripura state and to
boost exploratory efforts in the region. Power evacuation for both the units is done
through 663 KM long 400 KV double circuit transmission network by the North-East
Transmission Company Limited (NETC), a joint venture of Power Grid Corporation, OTPC and
Governments of the North-Eastern states. OTPC's both power units of 363.3 MW each are
fully operational since 4th Jan, 2014 and 24th March, 2015 respectively. Plant achieved
highest generation of 747 MW (103%) on 15th February 2017. It generated record 4170
million units of power during FY'17. The plant meets 35% power requirement of North
Eastern states. It became the first Dividend paying standalone gas based power generation
company in India. It also obtained CERC certification.
(c) Dahej SEZ Limited (DSL)
Your Company, as a Lead Promoter has developed a multi-product SEZ at Dahej in coastal
Gujarat to set up C2-C3 Extraction Plant as a value-chain integration project OPaL
through JV route in this SEZ Area. Your Company has 50% equity in the project with GIDC
having the rest 50%.
SEZ is already operational with total 43 units are in production and units in SEZ have
clocked export of Rs. 6,750 million in FY'17 against Rs. 27,480 million in FY'16. Total
investment is to the tune of Rs. 390,000 million with employment of around 12000 people.
(d) Mangalore SEZ Limited (MSEZL)
Your Company has set up MSEZ to serve as site for development of necessary
infrastructure to facilitate and locate ONGC/MRPL's Aromatic complex. Your Company has an
equity stake of 26% in MSEZ and other equity shareholders are
KIADB (23%), IL&FS (50%), OMPL (0.96%) and KCCI (0.04%). SEZ is operational since
1st April, 2015.
(e) Petronet MHB Limited
PMHBL is a JV company where in your Company has an equity stake of 32.72%, HPCL
(32.72%) and balance 34.56 % of equity being held by leading banks. PMHBL owns and
operates a multiproduct pipeline to transport MRPL's products to the hinterland of
Karnataka. In FY'17 PMHBL pipeline has achieved a throughput of 3.429 MMT against total
throughput of 3.318 MMT last year. As per audited result for FY'17, the turnover & PAT
of PMHBL are Rs. 1,283 million and Rs. 810 million, respectively.
(f) ONGC TERI Biotech Limited
ONGC TERI Biotech Limited (OTBL) which was incorporated on 26th March, 2007 is a
Joint-venture Company of your Company in association with The Energy Research Institute
(TERI), with shareholding of 49.98% and 48.02%, respectively. Remaining 2% shareholding is
held by individuals. Through the efforts of joint research of your Company along with TERI
over the years, OTBL is offering technologies and providing various Biotechnical Solutions
to Oil and Gas Industry, both in India and abroad. These technologies include:
Oil zapper Technology (Bioremediation) Used to eliminate & tackle oil spills,
oily sludge, and hazardous hydrocarbon waste; Paraffin Degrading Bacteria (PDB) - used to
prevent Paraffin Deposition in Oilwell Tubing
Wax Deposition Prevention (WDP) Used to prevent Paraffin Deposition in
surface and subsurface flow lines
Microbial Enhanced Oil Recovery (MeOR) Used for Enhanced Oil Recovery by
mobilizing crude oil trapped in pores of Oil Reservoirs
(g) Petronet LNG Limited (PLL)
Your Company has 12.5 per cent equity stake in PLL, with the same proportion of stakes
(12.5% each) held by other Oil PSU co-promoters viz., IOCL, GAIL and BPCL. Dahej LNG
Terminal was further expanded from 10 MMTPA to 15 MMTPA in October 2016 and the same is
further being expanded to 17.50 MMTPA.
A new LNG terminal of capacity 5 MMTPA has been set up at Kochi.
PLL is also planning to set up an LNG terminal of capacity 5 MMTPA at Gangavaram,
Andhra Pradesh. The turnover of PLL during FY'17 is Rs. 2,46,160 million and PAT was Rs.
(h) Pawan Hans Limited (PHL)
(A Miniratna - Government of India Enterprise)
Your Company has 49 per cent equity stake in PHL (previously known as Pawan Hans
Helicopters Limited). Balance 51 per cent equity is held by the Government of India.
PHLisoneofAsia'slargesthelicopteroperatorshaving a well-balanced operational fleet of 46
helicopters. It provides helicopter support for ONGC's offshore operations. The GoI acting
through the Department of Investment & Public Asset Management ("DIPAM")
proposes to disinvest its entire equity shareholding in PHL by way of strategic sale to
prospective investor(s) along with transfer of management control. GoI has appointed
SBICAP as its advisor to advise and manage the Strategic Sale of PHL
("Transaction"). Meanwhile, the GoI proposed to convert its loan into equity
capital by way of right issue. PHL has offered proportionate number of shares at face
value to the Company. Accordingly, your Company has decided to invest a sum of Rs. 1528.16
million to maintain the present equity shareholding level at 49%.
8. Other Business Initiatives, Important MoUs/Agreement
(a) Re-assessment of Hydrocarbon Resources, KDMIPE, Dehradun
Your Company is carrying out the project on Re-assessment of hydrocarbon resources of
sedimentary basins and deep water areas of India, in association with Oil India Ltd. (OIL)
and DGH. For this purpose 2 methodologies are being adopted, namely, Petroleum System
Modelling-for basins with adequate geological information and data availability (11
basins) and Areal Yield- for basins with relatively poor data availability (15 basins).
The project is to be completed by November, 2017. The project is being periodically
reviewed by National and International Experts to ensure that the workflow for the project
and quality of the deliverables are conforming the best industry practices and
international standards. Presently the project is being carried out by identified teams at
designated workcentres of the Company. As on 31.03.2017, the geological model for
Satpura-South Rewa-Damodar, Bastar, Chattishgarh, Karewa, Vindhyan, Mahanadi, Rajasthan,
Spiti-Zanskar, Mumbai Offshore and Pranhita-Godavari basins have been prepared and
resource assessment and estimation of YTF will be carried out in association with
international experts. The studies for twelve sedimentary basins (Cambay, KG, Cauvery,
Bengal-Purnea, Andaman-Nicobar, Kutch-Saurashtra, Assam Shelf, Assam-Arakan fold Belt,
Kerala-Konkan, Himalayan Fold Belt, Bhima-Kalagdi and GangaPunjab Plains) is in
progress at designated work centres of the Company.
(b) National Seismic Programme:
Acquisition, Processing & Interpretation of Un-appraised Areas
MoPNG has assigned your Company the responsibility of Acquisition, Processing &
Interpretation (API) of 40835 LKM of 2D seismic data in Unappraised areas of Indian
sedimentary basins falling in 24 onland areas (grouped in 11 sectors) except North east,
situated in 18 States/Union Territory under "National Seismic Project (NSP)".
The basic objective of the seismic survey is to map and study Tertiary/
Mesozoic/Proterozoic sediments for hydrocarbon prospectivity and assessment of their
potential. This would enable Government to assess hydrocarbon prospectivity of the areas
for carving out and offering exploration blocks in future bidding rounds as per the GoI
policies. Under this project, 2D seismic data acquisition work has started in Saurashtra
area on 12.09.2016 and in Rajasthan, Mahanadi, Deccan Synclise, Bhima, Kaladgi, Vindhyana
and Himalayan Foreland areas in October, 2016. As on 31.03.2017, 5033 LKM of 2D data has
been acquired and further acquisition is in progress.
(c) Agreement between ONGC and OPaL
Your Company and OPaL (ONGC Petro Additions Ltd) signed an agreement on 22.04.2016 for
supply of Naphtha through Marine Route.
(d) Crude Oil Sale Agreement (COSA) i. Nominated Fields: Negotiations are in
progress for the new COSA with the PSU Refiners. The existing COSA was valid till
31.03.2015 and has been extended till 31.03.2018. ii. NELP Fields: Regarding crude supply
from NELP fields in Gujarat to IOCL, the JV COSA for NELP fields (Karannagar, Vadatal,
Nadiad & W Patan) under the Company's operatorship is under negotiation with IOC.
Similarly for NELP fields in Karaikal Asset (Madanam & Nagayalanka), the process has
been initiated to put COSA in place with CPCL and MRPL.
(e) Regasification Agreement between ONGC and SLPL for LNG:
A definitive regasification agreement was executed on 23.06.2016 for booking of 1.0
MMTPA regasification capacity for a period of 20 years in 5.0 MMTPA Floating Storage and
Regasification Unit (FSRU) Terminal at Jafrabad Port, Gujarat, being set up by Swan Energy
Ltd. (SEL) through a Special Purpose Vehicle (SPV), Swan LNG Pvt. Ltd. (SLPL).
(f) Agreement of Collaboration (AOC) with National Mining Research Center-Skochinsky
Institute of Mining (NMRC-SIM):
Your Company signed an Agreement of Collaboration (AOC) with National Mining Research
Center-Skochinsky Institute of Mining (NMRC-SIM), Russia on 25th November 2004 for
Underground Coal Gasification (UCG). Under this AOC, NMRC-SIM provided consultancy to your
Company for carrying out suitability studies for some coal / lignite blocks in India.
Award of mining lease for the said Vastan lignite block by MoC, GoI is still awaited. The
AOC with SIM expired on 24th November, 2014 and has been extended for another five years
upto March 4, 2020.
(g) Industry Affiliates programme (IAP) Agreement on Chemical EOR was signed on
10.03.2015 between IRS and University of Texas, Austin, Texas, USA and it is valid for
(h) MoC between ONGC PAN IIT:
Your Company has entered into a Memorandum of Collaboration (MoC) with PanIIT in
January 19, 2015 at New Delhi to work towards a collective R&D Programme for
developing indigenous technologies to enhance exploration and exploitation of hydrocarbons
and alternate sources of energy. Pan IIT is a consortium of seven premier Indian
Institutes of Technology namely, IIT-Kharagpur, IIT-Kanpur, IIT-Madras, IIT-Mumbai,
IIT-Delhi, IIT-Guwahati and IIT-Roorkee. This is long-term initiative for sustained
research, development and capacity building. Under this program a total of 15 projects
have been taken up in Phase-I and for Phase-II, 12 projects approved by the Program
Advisory Committee. Further, for Phase-III, a total of 55 project proposals have been
received from various IITs and the same have been under review by ONGC Institutes.
(i) MoU with Geological Survey of India:
Your Company and GSI Training Institute (GSITI), Hyderabad entered into a Memorandum of
Understanding which aimed at providing exposure and advanced field geological training to
young ONGC geoscientists at GSI Field Training Centers (FTCs) at Kuju (Jharkhand) and
Aizawl (Mizoram). As per the MoU, the first batch of 15 young geoscientists from all the
Company underwent training in Field Geology at the GSI Training Institute's Field Training
Centers (FTCs) in Kuzu (Jharkhand) and Aizawl (Mizoram) from 8th to 31st March, 2017.
(j) Farm-in/Farm-out Agreement with Gujarat State Petroleum Corporation Limited (GSPC)
in respect of NELP Block KG-OSN-2001/3:
Your Company has acquired 80% stake in the block KG-OSN-2001/3 falling in KG Offshore
along with Participating Interest (PI) and Operatorship at a purchase consideration of US$
995.26 million for DDW Field in the Block. The Farm-in/Farm-out Agreement was executed
between your Company and GSPC on 10.03.2017. The Farm-in/Farm-out Agreement envisages: the
said acquisition is subject to satisfaction of a set of conditions precedent, including
mandatory Government approval.
9. Information Technology
Your Company has taken up the ambitious challenge of going Paperless. The
Project has been awarded on 29th Dec 2016 and is aimed at making more than 3000
paper-based processes paperless. This initiative will be one of the Company's contribution
towards our Prime Minister's initiative of Digital India. The Project is scheduled to be
rolled-out in Mumbai by May 2017 and organisation-wide by June 2018.
New version of Sametime Video Conferencing has been deployed which has built-in
Multiparty Video conferencing facility.
Microwave Offshore-Onshore Project was been completed successfully. Under this
project, terrestrial links were established which connect the Company's Bandra and Uran
Offices with Neelam B-193 BPB BPA and Heera platforms in Mumbai
Offshore situated more than 100 kms away into the sea. This high-capacity backbone
Microwave link is capable of carrying multi-service traffic with high spectral efficiency
and providing carrier grade service. This technology driven project has gone through many
challenges while constructing a 125 m Tower on Dronagiri hills off Mumbai with effective
height of 205 m above MSL. This is the longest over the sea microwave link, longest
offshore hop of the length of 65 kms in the region having total offshore path length of
138 kms. Link uses Radios supporting higher-order modulation of 1024 QAM with XPIC
technology for higher throughput of upto 450 Mbps and reduced latency. This project will
meet full gamut of IT and telecommunication needs (including Video Conferencing, RTOC,
Rotary equipment monitoring and CCTV) of Neelam and Heera Asset and Bassein and Satellite
Assets of Offshore and will be a stepping stone for further extension to MH Asset.
Initiatives and Development in the field of Information Technology Information Security
services a) CISO office is taking due initiative in ensuring information security
measures across your Company. In this direction, additionally 11 Infocom Data Centres
(Karaikal, Rajahmundry, Kolkata, Dehradun, Vadodara, Hazira, Jorhat, Nazira, Agartala,
Mehsana and Ankleshwar) and 4 G&G Data Centres (Panvel-SPIC, VRC, EPINET and GEODEC)
were taken up for ISMS implementation through in-house resources. ISMS documentation of 11
Infocom Data centres have been completed and documentations of 4 Geological and Geophysics
(G&G) Data Centres are in progress.
b) For the first time, IS awareness session was conducted for GTs during their
Multi-Disciplinary Training (MDT) at Dehradun.
A state-of-the-art Enterprise wide Access Control and Surveillance (EACS) system
project has been conceptualized to mitigate any threat perception to the security of the
oil installations as well as offices of your Company. For the implementation of the
state-of-the-art EACS system, contracts have been awarded to-
M/s BEL (LSTK contractor) for EACS project implementation.
M/s RITES (PMC contractor) for EACS project management.
M/s PDIL (TPI agency) for Third Party Inspection services for EACS project.
Online Project Monitoring and Control (OPMAC) tool of SAP system is used for uploading
all the project related documents and their versions. Suitable trainings have been
provided to the concerned executives from the various work centres and also to the
contractor's personnel for its use.
10. INDEG-Make in India Campaign in ONGC
Your Company is leading the upstream sector in Make in India Campaign, and embarked on
a time bound plan by MoPNG for successful implementation of the campaign in the oil and
gas industry. This major national program is designed to facilitate investment, foster
innovation, enhance skill development, protect intellectual property and build
best-in-class manufacturing/ services infrastructure to make India a manufacturing hub and
bringing economic transformation in India. Your Company carries its legacy of being the
pioneer corporate in initiative on Import Substitution and indigenisation. In the last few
decades through its INDEG Group, your Company has developed many Indian vendors and some
of them are now international players in their areas. ONGC's initiatives has helped Public
Sector Units to expand their capabilities, and your Company has helped creation of some of
the large Indian companies in services and projects areas of oil & gas. With the new
thrust through the "Make in India" campaign, your Company has revived its
multi-pronged approach to enhance the capabilities of Indian equipment, goods, services
and projects market, through promotion of Indian vendors for development in India and
through tie-ups with global players.
Indigenization of Capital, Stores and Spares items
A. UPET Rig Spares i. Your Company has done indigenized revamping of Wireless
Remote Control System for Romanian 50-IV- Workover Rig, at a cost of Rs. 46.8 million. ii.
Central Workshop Vadodara of your Company successfully completed capital refurbishment of
imported ROM-100-I rig (Romanian) and Rom-50-IX Rig, adding a fresh lease of life to the
work-over Rigs. All capital repairs and maintenance of imported equipment of the rig are
carried out indigenously. iii. Your Company during the refurbishment has developed various
spares locally for UPET-ROM make (Romanian) Work over rigs.
B. Drilling Services i. Your Company has developed an in-house innovative PLC
controlled Safety System for Travelling block movement. This system has been successfully
installed on an on-shore drilling rig. ii. Radial drilling, a productivity improving
drilling technology, was carried out in four wells for the first time to enhance reach in
the reservoir and increasing flow path.
C. Production Process Equipment i. Your Company has recently developed SRP
monitoring system in-house and introduced it successfully in 57 SRP wells in Limbodra GGS
II, Ahmedabad. This system will help to attend the fault and revive instantaneously thus
reducing the downtime particularly for remote locations. The cost of such system is very
low compared to procurement from an international source. ii. Your Company has
domestically carried out indigenous repairs on 2 Cryogenic pumps used in LNG facility at
Dahej, manufactured by Ebara International Corporation, USA (EIC). The failure of two of
these three pumps had forced the plant capacity to 50%. Your Company successfully
undertook indigenous repairs of these pumps, thus saving 83% of cost at Rs. 3.15 million
against Rs. 17.6 million. iii. A chemical formulation of polymeric surfactant was
developed and prepared by RGL, Vadodara for treatment of asphaltic or waxy crude for flow
improvement. The solution was successfully tested and used for crude oil in Cambay Basin.
D. Well Services
i. Well Stimulation Services of your Company has indigenized products worth nearly Rs.
9.8 million and developed 10 vendors in the process. It has also saved
Rs. 364.4 million through use of indigenous equipment and services in its Make in India
efforts. ii. Rig BHEL 120 VI of Well Services was successfully refurbished thereby adding
a fresh lease of life to the Workover Rig. iii. Successful fracturing of deepest and
highest temperature well at Rajahmundry was carried out by in-house team (depth of 4069.5
Mts and BHT 165.5C) using in-house developed fracture fluid for this high
E. Other Equipment Indigenization
Your Company carried out successful replacement of display monitors in logging unit
with indigenously manufactured advanced feature monitors thereby saving Rs. 0.45 million
per unit of such replacements.
Tie ups with Global Players
a) Global Industry Players Tie ups in India
i) Riser Maintenance yard in Kakinada in Andhra Pradesh has been developed by
Transocean, to avoid the need to periodically export & re-import the
"Risers" for inspection and reconditioning. This facility includes Riser
certification, Floatation repairs, Preservation enhancing the life of costly asset
and adequate storage area. The facility is operated through JVs with international
companies Vetco/NOV for riser joints and Dynaglass for floatation modules. ii) Equipment
and Services Centre set up by NOV India Pvt. Ltd. (NOVIPL) extends aftermarket support
services to all Oil/Gas producing companies for Service, Repair, Parts Supply and
extending Technical Training. NOVIPL has acquired 4 workshops in India, Mumbai (2),
Chennai and Pune one each for repair, recertify, all NOV supplied equipment. Previously
all these jobs were done in Singapore and UAE. These workshops are supported by many small
Vendors, fabricators, and suppliers within India. NOV is also sourcing parts manufactured
in India through strategic partnership with local manufacturers. iii) Offshore Vessels and
Rig Repair set up by Sembmarine Kakinada Limited (SKL) is a JV between Sembwang Shipyard
Pte. and Kakinada Seaports Limited. SKL is operating within the vicinity of Kakinada
Seaports and will be developed in 3 phases to offer shipowners and offshore operators a
one-stop integrated offshore service facility for the repairs and servicing of offshore
vessels and ships, oil and gas riser/equipment repairs as well as platforms and modules
fabrication. Your Company has awarded repair job of its floater rig Sagar Vijay. SKL is
also engaged in repair of various other Indian flag vessels. iv) Land Rig Manufacturing
unit set up by Drillmec India Pvt Ltd. Drillmec India has manufactured the First Mobile
Rig Workover & Drilling Mod. MR 8000. It is a joint venture company between Drillmec
S.p.A Italy and KMOC Kakinada Marine and Offshore Complex Ltd. India.
b) Domestic Ancillary Companies in India by Global Players
i) NOV Rig system: Repair and servicing of major drilling equipment like BOPs,
Risers, Pressure control equipment, etc.
ii) Hydril Pressure Control Pvt. Ltd. :
Hydril BOPs are being inspected and repaired at Hydril facility in Chennai.
11. ONGC Start-up' Initiative
"Start-up India" initiative was launched by the Hon'ble Prime Minister of
India on January 16, 2016, which aims at fostering entrepreneurship and promoting
innovation by creating an ecosystem that is conducive for growth of "Start-ups".
Your Company has launched Rs. 1000 million Start-up fund on its 60th Foundation Day, i.e.
on 14th August 2016 to foster, nurture and incubate new ideas related to energy sector.
ONGC Startup' Fund shall cater to the "Energy Sector". Your Company
intends to provide the entire support chain for start-ups including seed capital,
handholding, mentoring, market linkage and follow-ups. The aim of ONGC Start-up' is
to increase the contribution of fresh implementable ideas in the oil and gas sector.
The following road-map has been considered for implementation of the Start-up
a) Creating a Start Up Fund:
Your Company has already announced launch of Rs. 1000 million Start-up fund on
14th August 2016
b) Creating Awareness & Invitation of Proposals
Your Company created a webpage on its corporate website for creating awareness
about the initiative on 14th August 2016
Dedicated Website: A dedicated website startup.ongc.co.in for ONGC
Startup' initiative has been created, which was launched by Honorable, Union Minister of
State (I/C) Petroleum and Natural Gas on 7th December 2016. Start-ups are registering
their interest through this website for sharing their ideas and seeking support from ONGC.
c) Collaboration for Technology Business Incubation
Your Company entered into a MoU with IIT
Bombay (IITB) and Society of Innovation and Entrepreneurship (SINE), on 7th December,
2016. In collaboration with IITB and SINE, your Company intends to nurture and incubate
new ideas related to energy sector. The first batch of incubation of Start-Ups is likely
to happen in early 2017-18.
12. Health, Safety and Environment (HSE) Accreditations and Other Achievements
Being a high risk industry, safety of its employees is topmost priority for your
Company. Achieving the annual targets with "Mission-Zero Fatality" is the theme
adopted for the year 2016-17 with each employee of the organization as safety officer.
Globally recognized QHSE Management System is implemented conforming to requirements of
QHSE Certifications ISO 9001 ISO 14001 and ISO 18001(OHSAS) at the Company's facilities
and certified by reputed certification agencies at all its operational units. Corporate
guidelines on online incident reporting, investigation and compliance monitoring of
various rules and regulations have been developed and implemented for maintaining
uniformity throughout the organization in line with international practices.
Accreditations: a. Your Company is accredited by National Accreditation Board for
Education & Training (NABET) Quality Council of India (QCI) accreditation as
the Consultant Organization for the purpose of carrying out Environment Impact Assessments
of offshore and onshore Oil and Gas Exploration, Development & Production and
Petroleum refining industry sectors. This helps in saving substantial time and money in
getting EC which helps in an early commencement of the operations.
Highlights of HSE during 2016-17:
a) Performance of Memorandum of Understanding (MoU) with MoPNG on HSE parameters:
Your Company gives highest priority to the implementation of the observations raised
during External Safety Audits (ESA) and Internal Safety Audits (ISA). Highest compliance
to the observations has been achieved, as under:
|External Safety Audits
b) The Mines Vocational Training: 2546 (1329 ONGC+ 1217 Contractual
employees) have been provided to the field going personnel. c) Various safety
awareness programs were conducted at all work centres with the theme
"Safety Rules Saves Lives" for the year 2017. d) Review of HSE
policies including Improvement in policies on training of
Contractual Employees, HSE Manpower Reporting, Safety briefing guidelines, Behavioural
Based Safety, Compliance pending M B Lal recommendations, Safety critical equipment,
Issuing of SOPs, Accident/ incident analysis by Third party and Setting of ERC at
e) Online incident reporting started as per the requirement of PNGRB regulation.
f) A detailed HSE dossier for each work centre was provided to all Asset/Basin
Managers and Services Chiefs for monthly monitoring. Dossier includes ISA compliance
status, OISD audit observations, DGMS observations, EC decision compliance, SOPs, Safety
Champion, issues related to Environment, Mock Drills, ERP upgradation, Hazard Alert Card,
Accident/Incidence reporting in SAP, compliance to recommendations of inquiry committees
in fatal & major accidents in last three years, PME and Safety Critical Equipment. The
VCC at each work centre will discuss all the HSE pending issues as per EC decision and
status/ ATR will be submitted to Chief HSE on monthly basis.
g) DGMS in association with the Company and other upstream oil companies reviewed
and prepared the Draft OMR 2014 based on OISD standards & submitted to the Ministry of
Labour and Employment. The draft OMR Regulation 2016 has been finalised and is expected to
be published shortly.
h) In order to improve monitoring of DGMS observations, first time an initiative
was taken to upload DGMS observations in ICE system, in pursuance of which all planned
6794 observations have been uploaded in ICE system for online monitoring.
i) For onshore locations, roll out of e-PTW started with go live at GGS7-Kalol,
Ahmedabad Asset on 6th March 2017. The process of training and roll out at Onshore shall
be completed by September 2017. e-PTW is already running at Uran, Hazira, all offshore
process complexes and ONGC owned Rigs.
j) The first Asian Ministerial Conference on Disaster Risk Reduction was hosted by
Government of India in collaboration with the United Nations International Strategy for
Disaster Reduction (UNISDR) from 3rd to 5th November, 2016 at Vigyan Bhavan which was
inaugurated by Hon'ble Prime Minister of India. Your Company showcased its capabilities
contributing towards effective disaster risk reduction, mitigation and preparedness with
the help of two working models of fire-fighting systems of fixed oil and gas production
installation and drilling / work-over rig. A brochure on crisis management team activities
was also released.
k) Third Party Audit of 14" & 16" Hazira-KRIBHCO pipelines, 10"
Sonamura Monarchak pipeline and 20" Uran Trombay Pipeline has been conducted
as per PNGRB regulations.
l) Safety Audit generic observations compendium has been prepared by scanning
through all observations raised during external and internal audits for last four years. A
mechanism has been designed in SAP system (ICE) for monitoring regular compliances of
these observations every six months installation and rig wise.
m) In view of notification issued for drill cutting (from water base mud) waste
under non-hazardous category issued in Schedule 1 of Hazardous and Other Wastes
(Management & Trans boundary Movement) Rules, 2016, the disposal of drill cuttings
from water based mud does not attract the provisions of Hazardous and Other Wastes
(Management & Trans boundary Movement) Rules, 2016 and this will save a lot of time as
authorization under Hazardous Waste Rules will not be required.
n) Dispensation has been obtained from the Ministry of Environment, Forest and
Climate Change regarding requirement of Forest Clearance for Shot Hole drilling during
o) The Environment ministry permitted ground flaring without the provision of 100
meters green belt. In view of scarcity of land, the provision of ground flaring without
100 m green belt will be helpful for your Company.
p) Preparation of 5 Nos. of in-house EIA reports resulting in notional savings of
approximately Rs. 22 million and saving of valuable time.
13. Carbon Management & Sustainable Development
Your Company's hydrocarbon exploration & production (E&P) operations are being
carried out in varied climate and environment areas ranging from deserts to coastal areas,
hilly terrains to forest areas, shallow water to deep waters and also in ultra-deep water
These E&P activities often interact with the ecosystems and may have
physico-chemical & bio-geochemical impact on the surrounding environment. Your
Company, being responsible Corporate not only cares and preserves the environment but also
makes efforts for its protection. It is fully conscious to see that ecology &
environment are preserved and even improved by taking consistent steps and also through
technological upgradation. Your Company has put in place an effective Environment
Management Plan and is also taking advance preventive actions so that environment is
protected and its activities can remain in harmony with nature.
The Company adopted Environmental Policy in Commissions meeting no 2(1)/9 dated 16th
May, 1983 and declared Environment Protection as one of the prime objectives in July,
1988. A policy was framed to conduct Environment Audits.
Your Company has also set up a dedicated Institute viz. Institute of Petroleum Safety
and Health Management (IPSHEM) at Goa for conducting trainings for industrial health,
safety and environment management and also to promote practices in the organization about
the safety, health and environment aspects in every phase of operations by evolving best
practices and providing trainings in virtual environments.
Your Company has taken requisite measures to minimize the impact of E&P activities
and taken various measures to mitigate the pollution. It has introduced clean technologies
for emission control including design and construction facilities for different, gaseous,
liquid and solid effluent generated due to drilling, production and processing facilities
from onshore and offshore operations.
Measures taken for Mitigating Air Pollution
There are no major risk for air pollution like process industry. The source of air
emissions are flaring of natural gas, exhaust from running of DG sets, use of heavy
equipments, construction activities, movement of vehicles etc. In order to reduce the gas
flaring, generators have been installed in the field to utilize low pressure gas for
generation of electricity for internal consumption. Regular ambient air quality monitoring
studies are carried out around drill sites and production installations as per statutory
requirement to measure and monitor concentration of air pollutants in ambient air. The
concentration of air pollutants have been found to be within the permissible limits.
Gaseous Emissions Control through Box Flare:
Box flare facilities have been installed at Uran Terminal, Hazira Gas Processing
Complex and Assam Group Gathering Stations to achieve following
Complete combustion of the flared gases using several stage multiple burners.
Use of low NOx burners.
Cladded in refractory shells with steel enclosures to control the effect of heat
and light radiations.
Acoustical insulation for noise control.
Smokeless Flaring: The smokeless flare is achieved by properly designed tall stacks
with following facilities.
Use of steam injections
Providing additional Oxygen
Height of the stack is maintained in such a way that when emissions strike the
ground, they should have ground level concentration within permissible limits.
Real Time Monitoring Stations (RTMS): 5 no's of RTMS are installed each at Uran
Terminal and Hazira Gas Processing complex to monitor the ambient air quality in and
around plants round the clock.
Reduction in Gas Flaring/Low Carbon Fuel: In order to reduce GHG emissions, the low
pressure gases and other natural gas is being utilised to operate Compressors, Turbines
and DG Sets.
Vapour Recovery System: Vapour Recovery system has been installed at the crude oil
storage tanks to prevent release of fugitive emissions, VOCs etc. besides to check the
loss of HC.
De-sulphurization of Sour Gas: The sour gas produced from South Bassein Field of
West Coast is sweetened at processing plant through Sulphur Recovery Units (SRUs) to avoid
the release of acidic gas to the atmosphere.
Measures taken for Mitigating Water Pollution and its Management Conservation of fresh
water: Towards conservation of an important natural resource fresh water'
through its replenishment in the aquifer to prevent its further depletion and to sustain
ground water table. Six wells to collect the discharge water at different locations of the
KDMIPE campus are active.
Waste Water Management:
Your Company monitors the use of water resources and quality of effluent discharge.
Effluent Treatment Plants have been installed in work centres to treat effluent generated
during processing of oil and gas to meet statutory requirements for discharge of treated
effluent at surface/subsurface.
Water Conservation through Rain Water-Harvesting:
For conservation of fresh water, your Company has a policy on Rain Water Harvesting
which is mandatory for all future projects. Details of existing Rain Water Harvesting
projects are given in the section Sustainable Development'.
Treated water is used for various purposes during drilling at drill site and injecting
into the formation for the purpose of maintaining formation pressure. Treated effluent is
also used for gardening purpose, floor cleaning and other utilities. Your Company follows
the policy of Recycle, Reuse and Recovery for water conservation.
Effluent Treatment Plants:
In view of environmental friendly disposal of produced effluent, ONGC has set up 26
Nos. of ETPs at different work centres of your Company to treat about 78110 m3/d of waste
water produced during E&P operations.
Lining of drill site waste pit with High Density Poly Ethylene Sheets (HDPE):
To avoid contamination of ground water quality of surrounding areas, HDPE lining is
laid in waste pit at drill site. In this way percolation of waste water in the ground
during drilling of wells is checked and ground water quality is protected.
Produced Water Conditioners (PWCs):
Produced Water Conditioners (PWCs) have been installed for treatment of offshore
effluent (produced water). For treatment of sewage water being generated at living
quarters at offshore platforms, Sewage Treatment Plants (STPs) have been installed before
discharging it at offshore. Therefore, the waste water separated from oil and gas is
treated and pollutants values are maintained as per prescribed limits before discharging
it at onshore/offshore.
Offshore Monitoring to check Marine pollution at West & East Coast:
To study the impact of E&P operations on Marine Environment, your Company has
instituted regular offshore monitoring at West Coast and East Coast covering the entire
operational areas. The reports are regularly submitted to regulatory authorities.
Oil Spill Management - Response and Combat:
Your Company has the capability to handle 700 MT of oil spillage using its Oil Spill
Response equipment stockpile kept on 5 different Multi-Support Vessels which are
strategically positioned 24 x7 round the year to cover the entire operational area to
ensure minimum response time during emergency. It has also in place a Contingency Plan
duly approved by the Indian Coast Guard for both West and East Coast. For oil spills of
Tier 3 level i.e. > 10,000 MT. Your Company has an agreement with Oil Spill
Response Limited, UK for oil spill combatment. Besides, the Company participates in
various National Level Exercises with Indian Coast Guard thereby ensuring commitment for
marine Environment Protection.
Soil Pollution control:
Bio-remediation:Theoilisrecoveredfromtheoily waste produced during drilling
operation as far as possible.Theremainingwasteandoilcontaminated soil is subjected to
Bioremediation where the oil content is reduced to less than 1% TPH using a consortium of
Hydrocarbon degrading bacteria by the OTBL since March 26, 2011. During 2016-17, 25220
MT of oily sludge/ oil contaminated waste has been bio-remediated.
Noise Pollution Control: Following mitigation measures to control noise impacts:
Regular noise monitoring is done to measure and monitor sound levels around
equipments and machineries and high noise areas are demarcated.
Acoustic enclosures are provided around gen-sets to reduce noise pollution.
Personnel Protective Equipment (PPE) like ear muff/plugs is provided to
personnel working in noise prone areas.
Green belt is developed and maintained around major installations which also
contribute in mitigating noise pollution.
Afforestation projects resulting in CO2 Fixation through Mangrove & Ringal
Creating Green and Clean Environment: Green belts have been developed up to one
third of total area around all the production installations and processing plants to
comply with the stipulations of various permissions obtained from state as well as central
government. In addition to regular plantation at drill sites and production installations,
your Company has undertaken following massive plantation as part of your Company's
Corporate Social Responsibility for Environment Protection & for mitigation of Climate
Change impacts and also to conserve biodiversity.
Mangrove Plantation: A project on mangrove plantation along the shores of Dhadar
River on West Coast has been taken up by the Company to protect erosion of shoreline. In
the Phase 1 of the project, more than 21.11 lakh mangroves have been planted in the soil
erosion-prone area along the coast of the Dhadar River at Gandhar, Ankleshwar and Hazira
Ringal Plantation: Ringal plantation (Hill bamboo) has been undertaken by the
Company in Joshimath and Kedarnath forest areas of Upper Himalayas to strengthen fragile
Himalayan eco-system. Plantation of 1.075 million Ringal Plantation in Upper Himalayas is
already completed in an area of 430 Hectares in three phases resulting in 1.97 million
tonnes of CO2 fixation per annum. Another 0.75 million Ringal plants will be planted in
two phases in an area of 300 Ha in Upper Himalayan region which shall result in an
additional 1.37 million tonnes of CO2 fixation per annum. An Agreement was also signed
with Uttarakhand Bamboo and Fiber Development Board, Dehradun on 01.03.2016 for fourth
phase of Ringal Plantation.
Other initiatives: a. Green Building: Your Company acknowledges that buildings have
major environmental impact over their entire life cycle. Hence, the Company has taken up
concept of constructing green building, the essence of which would be to address all these
issues in an integrated and scientific manner with due compliance to the guidelines of
GRIHA (Green Rating for Integrated Habitat Assessment). As part of its commitment to
sustainable development, it is planned to build Green Buildings at Delhi, Mumbai, Kolkata
and Dehradun. These buildings are expected to save 50% to 60% energy, save water by about
30%, harvest 100% rainwater and discharge zero sewage and as compared to baseline
buildings. Currently, Green buildings at Delhi, Mumbai, and Dehradun house the officers of
b. Replacement of Halons: Corporate HSE has obtained a clarification from the Ozone
Cell, MoEF & CC regarding the issue of replacement of Halon based Fire Suppression
System. The clarification issued by the Ozone Cell permitted the use of recycled/
recovered Halon. Further, it was clarified that the roadmap was developed for phasing out
of production and consumption of Hydro-fluorcarbons (HCFCs) in India and is not applicable
for Halon. Therefore, use of the Company's existing stock of Halon can be continued.
c. Use of Renewable Energy: Wind Energy: Your Company's holistic focus on
sustainable growth ensures its thrust on pursuing renewable sources of energy, decreasing
our internal carbon footprint and exploring unconventional hydrocarbons. Further, the
Company has commissioned two energy efficient Wind Power Project, one a 51 MW Unit at
Bhuj, Gujarat and another 102 MW Wind Farm in Jaisalmer, Rajasthan.
Solar Energy: Many of the residential colonies in ONGC have solar water heaters and
solar powered street lights. Unmanned platforms in offshore areas also use solar energy
for navigation lights and telemetry units.
d. Sustainable Development: i. Sustainable Water Management (SWM): As an E&P
Company, the Company business depends on sustainability of fresh water resources which are
presently under pressure. Globally, per capita availability of freshwater is steadily
decreasing and trend will inevitably continue with the increasing consumption levels and
climate change unfolds. In this situation, it is imperative for the Company to develop new
strategies for water management in order to achieve sustainable growth and development.
The details of existing rain water harvesting projects of the Company are given below.
29 ground water recharge wells at various locations of Ahmedabad Asset.
Rain water from rooftop and surface run off harvesting at Green Building,
Percolation well for bore well recharge at Residential complex, Ankleshwar
Rain water harvesting system as integral part of C2-C3 plant, Dahej, Gujarat.
Rain water harvesting at Rajahmundry Asset base complex.
16 infiltration well in IPSHEM, Goa.
2 ground water recharge wells at IRS, Ahmedabad.
6 ground water recharge wells at KDMIPE, Dehradun.
1 ground water recharge well at base complex, RFB, Jodhpur.
RWH system at K. V. School, NOBH and officers' club at Agartala, Tripura Asset.
RWH system, PPCL building, Uran Plant, Raigad, Maharashtra.
Bhavale Hill RWH system, Panvel, Maharashtra.
RWH systems at various locations at Western Onshore Basin, Vadodara.
ii. Clean Development Mechanism Projects Emission Reduction through CDM Projects: Your
Company commenced its Clean Development Mechanism (CDM) journey in 2006. Currently, it has
15 registered CDM projects with the United Nations Framework Convention on Climate Change
(UNFCCC) that yield (potential) Certified Emissisons Reductions (CER) approx. 2.1 million
yearly. The registered CDM projects are as under:
|Sl. No. Project
|1 1 Waste heat recovery from Process Gas Compressors (PGCs), Mumbai high south
|2 Up-gradation of Gas Turbine 1 (GT 1) and Gas Turbine 2 (GT 2) at co-generation plant
of Hazira Gas Processing Complex (HGPC).
|3 Flare gas recovery project at Uran plant.
|4 Flare gas recovery project at Hazira Gas Processing Complex (HGPC), Hazira plant.
|5 Amine Circulation Pumps Energy Efficiency at Hazira Plant.
|6 51 MW wind power project of ONGC at Surajbari.
|7 Energy Efficient Green Building at Mumbai.
|8 Energy Efficient Green Building at DehraDun.
|9 Gas Flaring Reduction at Neelam & Heera Asset.
|10 OTPC Natural gas based combined cycle power plant in Tripura, India.
|11 Energy Efficient Green Building at Kolkata.
|12 Energy Efficient Green Building at Delhi.
|13 Gas flare reduction at GGS Charali Assam.
|14 Replacement of MOL pumps at Neelam and Heera.
|15 102 MW Wind Power project at Jaisalmer, Rajasthan.
Four production installations (CPF Gandhar, Gandhar GGS-I, Ankleshwar CTF, and Nawagam
CTF) were declared carbon neutral for the year 2015-16 after voluntarily retiring 1,34,419
CERs of CP-1 credit period from CDM registry account (UNFCC).
iii. Global Methane Initiative (GMI):
GMI launched by United States Environmental Protection Agency (USEPA) is a voluntary,
multilateral partnership that aims to reduce methane emissions and to advance the recovery
and use of methane as a clean energy source. Your Company signed a voluntary agreement
with USEPA in 2007 for the purpose of reducing methane releases to the atmosphere by
implementing cost effective emission reduction technologies and practices. Your Company
has formed a dedicated in-house team, procured methane emission detection and measurement
equipment in order to undertake fugitive emission detection and quantification at its
operating facilities. ONGC has also drawn an effective plan to map all its production
installations for fugitive hydrocarbon emission and make the installations leak-free in
the near future through gas leak surveys at various production installations using Gas
Find Infrared Camera for identification of methane emission reduction opportunities.
iv. Sustainability Reporting
ONGC Group Sustainability Report FY'16 was released on 14th March 2017. This being the
seventh report of the Company and fourth of ONGC Group (comprising of your Company, ONGC
Videsh and MRPL) in succession, was prepared as per latest GRI G4.0 framework with
external assurance by third party under "Core" category.
14. Business Responsibility Report
In terms of clause (f) of sub-regulation (2) of regulation 34 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, stipulates that the annual
report shall contain a Business Responsibility Report describing the initiatives taken by
the listed entity from an environmental, social and governance perspective in the format
specified. Accordingly, the Business Responsibility Report for 2016-17 has been
drawn up and appended to this Annual Report.
15. Internal Control System over Financial Reporting
A company's internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and
preparation of standalone financial statements (Ind AS Compliant) for external purpose in
accordance with generally accepted accounting principles. These internal financial control
over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of standalone
Ind AS financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the Company are being made only in accordance with
authorizations of management and Directors of the Company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the Company's assets that could have a material effect on the standalone
Ind AS financial statements.
Your company has adequate internal financial controls system over financial reporting
in compliance with the provisions of section 134(3) (c) of the companies Act, 2013 and
such internal financial controls over financial reporting were operating effectively.
In addition to the above, your Company has a well-established and efficient internal
control system and procedure. The Company has a well-defined delegation of financial
powers to its various executives through the Book of Delegated Powers (BPD). The
Integrated BDP is updated from time-to-time in line with the needs of the organization as
well as to bring further delegation. The Company an in-house Internal Audit Department
commensurate with its size of operations. Audit observations are periodically reviewed by
the Audit & Ethics Committee of the Board and necessary directions are issued whenever
16. R&D Efforts Through ONGC Energy Centre Trust (OECT)
Your company has taken steps to evaluate various forms of energy to fulfil the
country's growing energy needs. Towards this end, your company has established an ONGC
Energy Centre Trust (OECT), which is mandated to undertake or assist in programs/ projects
of fundamental and applied research for improving and developing commercially viable
energy mediums and sources beyond hydrocarbons, especially in clean and/or renewable
energy options. ONGC Energy Centre (OEC) has been set-up under the aegis of the OEC Trust
to work on various clean energy options.
Patents granted during FY 2016-17 against three
International PCT patents on Cu-Cl cycle, filed earlier, jointly by OEC and ICT-Mumbai
in six countries (USA, Canada, Japan, UK, Korea and China) were:
1. Hydrogen Production Method by Multi-Step Copper-Chlorine Thermochemical Cycle'
- granted in People's Republic of China. (This patent has now been granted in five out of
2. Effect of Operating Parameters on The Performance of Electrochemical Cell in
Copper-Chlorine Cycle' - granted in Canada. (Patent already been granted in Japan and USA)
3. Electrochemical Cell Used in Production of Hydrogen Using Cu-Cl Thermochemical
Cycle' - granted in UK (Patent already been granted in Canada, Japan and USA)
I. R&D Projects by ONGC Energy Centre during 2016-17
The year commenced with 22 projects. Another 15 projects were taken up during the year.
Out of the 37 projects under implementation during 2016-17, a total of 6 projects were
concluded. The year ended with 31 projects in hand.
II. New Projects taken up during the year
During FY 2016-17, the Company's Energy Centre has taken up Fourteen (14) new in-house/
collaborative projects, besides two new initiatives. The details are given below:
A. Uranium Exploration:
1. "Drilling, logging and coring operations in approx. Thirty Eight (38) no of
parametric wells in Son valley and Sagar district in MP and Karjan-Padra in Gujarat":
To validate the leads obtained from drilling and 3-D seismic modelling in the areas in
order to assess the potential for sub-surface Uranium.
B. Hydrogen Program:
2. "Scale-up of I-S, EED & ED based membrane processes for production and
concentration of HI as Hydrogen source", in collaboration with CSIR-CSMCRI,
Bhavnagar: To scale-up the I-S, EED and ED for producing HI by reducing I2, increasing the
HI molality (concentration) in the presence of HIx solution using indigenously prepared
cation-exchange membrane and anion-exchange membrane.
3. "Development of Ceramic Membranes for Gas Separation Applications in I-S and
Cu-Cl cycles For Clean Energy Production", in collaboration with CSIR-CGCRI, Kolkata:
To develop zeolite membranes for separation from HCl of H2 from HI/I2 in I-S cycle, H2 in
I-S cycle on vapour, SO2 and O2 from SO3 indigenously prepared clay alumina support tube
and demonstration of performance of the membrane at economically scaled uplevel.
4. "Design and development of Sulfuric Acid Concentrator and Internals for Bayonet
Convertor in S-I Cycles", in collaboration with FITT/IIT Delhi: To Design &
develop sulfuric acid concentrator for sulfuric acid concentration in S-I Cycle, and
catalyst loading and distributor system to be used in bayonet convertor, and optimize the
process/ equipment configuration for future scale up.
5. "Stability tests of IIT-D developed catalysts and materials of constructions
for HI decomposition reaction of SI cycle", in collaboration with IIT-Delhi:
Preparation of Activated Carbon supported bimetallic Ni-Pt catalyst by
impregnation-reduction method and performs long term stability tests of 600 hours and
immersion corrosion coupon test to screen the potential material of construction for HI
6. "Thermo-chemical Hydrogen Generation through Partially Open-Loop S-I process
involving H2S incineration: H2S incineration to SO2", in collaboration with CSIR-IIP,
Laboratory study for the incineration of H2S to to develop process know-how in generate
SO2 perspective of partially open loop S-I cycle.
7. "Development & demonstration of closed loop I-S process in all glass
assembly", in collaboration with FITT/IIT Delhi: To demonstrate integrated closed
loop to enable stable, continuous, and long-term operation of I-S process for hydrogen
production in all glass /quartz assembly of capacity 5 NL/hr. of hydrogen production
continuously for at least 10 hours.
8. "Selective Conversion of to CO using CO2 an inexpensive Nano-porous Carbon
doped oxides through plasma/photocatalysis", in collaboration with Maulana Azad
National Institute of Technology (MANIT), Bhopal: To develop inexpensive catalysts
(nanoporous carbon doped oxides), that can convert carbon dioxide into carbon monoxide
using plasma-photocatalytic technology.
C. Biotechnology Program
9. "Hotwiring microbial communities for enhanced unconventional gas
production" in collaboration with TERI, as Indian partner and University of New South
Wales, Australia, as Australian partner, under the Australia-India Scientific Research
Fund - 2015 (AISRF-2015) for collaborative research on Clean Energy Technologies.
10. "Development of hybrid nano-zyme-bacterial hydrogels for augmentation of
uranium leaching from subsurface soil", in collaboration with PSG Institute of
Advanced Studies (PSGIAS), Coimbatore: To develop hybrid nano-zyme-bacterial hydrogels for
augmentation (by 0.01 to 0.35%) of uranium leaching from subsurface soil.
11. "Proof-of-Concept for Investigation on Microbial Bioleaching of Uranium from
Secondary Uranium Deposits", in collaboration with Savitribai Phule Pune University
(SPPU), Pune: To understand the geochemical composition and the indigenous microbial
community structure of uranium bearing sediments and to develop enriched microbial
consortia with the potential of uranium bioleaching.
D. Geothermal program
12. "Feasibility of Geothermal Energy in India using Single Well and Production
Method", in collaboration with Indian Institute of Technology, Delhi (IIT-D): On
development of simulation model, experimental work will be planned for Single Well
Engineered Geothermal Pilot Power Plant.
13. "Thermal modelling to assess Geothermal Energy Potential in Gandhar area of
Cambay Basin", in collaboration with KDMIPE, Dehradun: To carry out thermal modelling
of area identified by OEC for assessing Geothermal Energy resources in Gandhar Field.
E. Solar Program:
14. "Development of Self-Cleaning Coatings Based on Super-hydrophobicity for Solar
Panel Applications", in collaboration with PSG Institute of Advanced Studies
(PSGIAS), Coimbatore: To develop a transparent and super-hydrophobic, self-cleaning
coatings for photovoltaic solar cells, solar thermal and hybrid applications.
17. Human Resources
Your Company values its Human Resources the most. To keep their morale high, your
company extends several welfare benefits to the employees and their families by way of
comprehensive medical care, education, housing and social security.
18. Human Resource Development
33,660 ONGCians (as on 31st March, 2017) dedicated themselves for the excellent
performance of your company during the year. The workforce intake strategy pursued by your
Company caters to meeting the demands of maintaining a steady flow of talent, in a
business which is characterized by high risks and uncertainties, enormous costs, fast
changing level of technology, physically challenging work environment, fluctuating product
prices and growing competition. Your Company has drawn up a scientific manpower induction
plan aligned to the business plans as well as factoring the manpower profile of the
Your Company believes that continuous development of its human resources fosters
engagement and drives competitive advantage. Towards that end, during the year, your
Company conducted Business Games to hone the business acumen of its executives in a
competitive scenario under simulated business constraints. Business Game has proved to be
very popular initiative and tests the ability of the executives through business quizzes,
business simulations and case-study presentations. During the year 2016-17, a total of 163
teams and 652 executives participated in the event. Fun Team Games (FTG) were organized
for E0 and below level employees to inculcate MDT (Multi-disciplinary Team) concept and
spirit of camaraderie and belongingness to the organization, which was very well received
by the participants. A total of 94 teams and 376 employees participated in FTG during the
year 2016-17. The winners of Business Games and Fun Team Games were felicitated by the CMD
on Republic Day Celebrations.
Your Company attaches utmost importance to the development of its human
resource. During the year, a total of 15846 executives and 5703 non-executives were
imparted appropriate training, spanning 187712 executive mandays and 20548 non-executive
mandays respectively during 2016-17 to all our work centres.
In order to absorb new and emerging technological advancements pertaining to oil
and gas exploration and production, 65 programmes, including 21 foreign faculty programmes
pertaining to functional disciplines, were organized with the best of faculties from India
and abroad during the year.
19. Employee Welfare
Your Company continues to extend welfare benefits to the employees and their dependants
by way of comprehensive medical care, education, housing, and social security. Your
Company continues to align company policies with changing economy and business
Employee Welfare Trusts
Your Company has established the following major Trusts for welfare of employees:-
Employees Contributory Provident Fund (ECPF) Trust, manages Provident
Fund accounts of employees of your Company.
The Post Retirement Benefit Scheme (PRBS) Trust of your Company manages
the pension fund of employees of your company. The Scheme was converted into a Defined
Contribution Scheme as per DPE guidelines in November, 2013.
In the converted Defined Contribution Scheme, the corpus in the individual employee
account shall include employer/ employee contributions and interest thereon.
The benefits under the scheme are dependent on corpus in the individual employee
account and accordingly, would be market determined which depends on interest rate,
annuity price etc. During FY 2016-17, 1940 cases of retired employees were settled
amounting to Rs. 8400 million.
The Composite Social Security Scheme (CSSS) formulated by your company
provides an assured ex-gratia payment in the event of unfortunate death or permanent
disability of an employee in service. In case of separation other than death/permanent
total disability, employees own contribution along with interest is refunded.
Gratuity Fund Trust exists for payment of gratuity as per the provisions
of the Gratuity Act.
Your Company has a Sahayog Trust for its Sahayog Yojana to provide
ex-gratia financial grant for sustenance, medical assistance, treatment, rehabilitation,
education, marriage of female dependent and alleviation of any hardship or distress to
secure the welfare of the workforce and their kin, who do not have adequate means of
support. The beneficiaries under this scheme include casual, contingent, daily rated,
part-time, adhoc, contract appointees, tenure-based employees, apprentices and trainees
employed by your Company besides regular and past employees. Under the scheme an amount of
Rs. 54.60 million was disbursed by the Trust during 2016-17.
Extension of Benefits under the Asha Kiran Scheme to Retired Employees:-
You Company has Asha Kiran Scheme to meet the emergency needs of the ex-employees
retired prior to 01.01.2007, who are passing through distressful situation. The scheme was
launched as per DPE guidelines by creating a corpus of 1.5% of PBT. During the year, under
this scheme financial assistance of Rs. 1,594.59 million was provided to 14,600
ex-employee as on 31.03.2017.
Persons with Disabilities
Your Company believes in affording equal opportunities to physically challenged people.
As on 31.03.17, there were 245 permanent employees with disabilities (0.73%) on the rolls
of your Company.
Implementation of Govt. Directives for Priority Section
Your Company complies with the Government directives for Priority Section of the
society. The percentage of Scheduled Casts (SC) and Scheduled Tribe (ST) employees were 15
percent and 9.9 percent respectively as on 31st March, 2017. Your Company is fully
committed for the welfare of SC and ST communities. The following welfare activities are
carried out by your Company for their upliftment in and around its operational areas:-
Annual Component Plan:
Under Annual Component Plan for SC/ST, every year an allocation of Rs. 200 million is
made w.e.f. FY 2011-12. Out of this, Rs. 60 million is distributed amongst all the work
centres for taking up activities for welfare of SC/ST Communities in and around the areas
of our operations. In addition, Rs. 140 million is managed centrally, and is earmarked for
special projects/proposals/schemes for the welfare of areas/persons belonging to SC/ST
communities. The amount under component plan is utilised for taking up various welfare
measures for the welfare and upliftment of the needy people of SC/ST Communities. This
fund is especially meant for providing help and support in Education and Training,
Community Development and Medical and Health Care.
Scholarship to SC/ST meritorious students for pursuing higher professional courses at
different Institutes and Universities in the country.
Your Company provides 500 scholarships for meritorious SC & ST students for
pursuing higher professional courses at different Institutes and Universities across the
country in Graduate Engineering, MBBS, PG courses of MBA and Geo-Sciences. The major
feature of the scheme is that the scholarships have been equally divided for both boys and
girl students and the amount of scholarship has been made @ Rs. 4,000/- per month
amounting to Rs. 48,000/- per annum per student subject to the conditions of the scheme.
The financial implication involved in a cycle of four years with 500 scholarships awarded
every year is around Rs. 76 million per annum.
20. Industrial Relations
During the year your Company maintained harmonious Industrial Relations throughout the
Corporation. Mandays loss due to internal industrial action was reported as NIL' for
the year 2016-17.
21. Grievance Management System
A structured four-tier Grievance Management System in place in the Company to address
employee grievances related to policy/policies. The channel of grievance is Reporting
Authority of Individual, Sectional in charge, Key executive, Appeals Committee. Appeals
Committee has outside professionals as members and empowered to suggest measures to
prevent similar grievances in future. CMD takes the final decision in totality on the
grievance of the employee with inputs from Director (HR). For external stakeholders, the
Company has a well laid down grievance redressal system in place with adequate provisions
to escalate the matters up the hierarchy up to the Board (Stakeholders Relationship
Committee a Board level Committee headed by an independent Director). Your Company
voluntarily facilitates resolving grievances through Independent External Monitors (IEMs)
and through Outside Expert Committee (OEC). Further, a separate website is maintained for
grievance redressal (https:// grievance.ongc.co.in).
22. Implementation Under the Right to Information Act -2005
Anelaboratemechanismhasbeensetupthroughout the organization to deal with requests
received under the RTI Act, 2005. A Nodal Officer in the rank of a General Manager has
been appointed for the purpose who is based at the Registered Office at Delhi. Besides
this, 22 Central Public Information officers (CPIOs) have been designated at different
work centers across the country in compliance of Sections 5(1) and 5(2) of the Act.
Further, an Officer of the level of Executive Director has been appointed to discharges
the role of an Appellate Authority under the Act. The particulars of all the
quasi-judicial authorities under the ambit of RTI Act, 2005 have been uploaded on the ONGC
Corporate portal (www.ongcindia.com) for wider information of the general public.
In compliance of Government directives, your Company has successfully introduced online
processing of applications under the Act from August, 2016 onwards.
A total of 123 RTI applications were carried forward from the year 2015-16. Further,
947 applications were received during the period from April, 2016 to July, 2016 before
migration to the RTI online system. A total number of 1397 applications were received
during the period from August 2016 to March 2017; making a total of 2344 applications. Out
of these 2244 applications were replied to during the year.
Additionally, the Department of Public Information/RTI Cell also processed 169 Second
Appeals which were listed for hearing at the CIC during the FY 2016-17 and took follow-up
actions to dispose off the same.
23. Implementation of Official Language Policy
Your Company makes concerted efforts to promote Official Language. In this regard, some
of the steps taken during the year were: -
Unicode Hindi software installed in all our offices.
Hindi workshops conducted at regular intervals.
Hindi Technical seminars, Kavi Gosthies' and Hindi plays organized at
various work centres.
Vishwa Hindi Diwas (10th January) celebrated at various work centres of ONGC.
Hindi Teaching Scheme of Govt. of India effectively implemented at all regional
24. Women Empowerment
Women employees constituted over 6.6 percent of your Company's workforce. During the
year, programmes on women empowerment and development, including programmes on gender
sensitization were organized. Your Company actively supported and nominated its women
employees for programmes organized by reputed agencies. Disclosure under the sexual
harassment of women at workplace policy (prevention, prohibition & redressal) Act,
The Company has in place an Anti-Sexual Harassment Policy in line with the requirements
of the sexual Harassment of Women at the Workplace (Prevention, Prohibition &
Redressal) Act, 2013.
Internal Complaints Committee (ICC) has been set up to redress complaints received
regarding sexual harassment. All employees (permanent, contractual, temporary, trainees)
are covered under this policy. The following is a summary of sexual harassment complaints
received and disposed of during FY'17:
No. of Complaints received: 02
No. of Complaints disposed of: 02
25. Work-Life Balance
Your Company continued in its endeavors to ensure work-life balance of its employees.
The townships at many work-centers were provided facilities like gymnasiums, music rooms,
etc. Outbound programmes with families were also organized at various work-centers. Plays
on the importance of Work-Life Balance' were staged to create awareness amongst the
employees. In addition, cultural programmes involving employees and their families were
also conducted. Mahila Samitis and Resident Welfare Associations (RWAs) were involved in
the organization of these cultural programs. Your Company has an adventure wing named
ONGC Himalayan Association' which organizes adventure programmes like
mountaineering, trekking, white water rafting, snow skiing, desert safari, aero sports
etc. which adds towards morale, engagement, team-spirit, camaraderie, stress management
and spirit to explore unknown traits among the employees.
Your Company continued its large scale support for development of sports in the country
in the form of job offers and scholarships to deserving sportspersons. Sponsorships to
various sports associations / federations / sports-bodies to organise sports events as
well as develop infrastructure were also extended.
Your Company extended support in 23 game disciplines to 166 players on regular rolls
and 201 players on scholarship. The support has enabled many sportspersons to achieve and
bring home laurels for the nation and the organisation. Some of the key achievements
during the year are given below:
Five ONGCians were conferred the prestigious "Arjuna Award" for the
year 2016 namely Shiv Thapa (Athletics), Amit Kumar (Wrestling), Sourav Kothari (Cue
Sports), Sandeep Singh Maan (Athletics (Para)) and Rajat Chouhan (Archery).
Cricketer Virat Kohli, was conferred the prestigious "Padam Shri
Award" for the year 2016. The total number of National Awardees in the organization
stand at 31 (Khel Ratna 1, Padma Shri 3 & Arjuna 27)
In Rio Olympics 2016, 7 ONGCians namely Ms. Kavita Raut (Marathon), Ms. M.R.
Poovamma (4x400m relay Athlete), Ms. Ashwini Ponnappa (Doubles Badminton), Ms. Heena Sidhu
(Shooting), Shiva Thapa (Boxing), Ms. Jisna Mathew (Scholarship 4x400m relay Athlete) and
R. Mohan Kumar (Scholarship 4x400m relay Athlete) participated.
Shri Pankaj Advani won 16th world title in cue sports. In the year 2016-17 he
won World Billiards title in point format and also in 6 Red Asian Snooker.
Shri Dhruv Sitwala won his 2nd Asian Billiards Title in April 2016.
ONGCian Shri Virat Kohli has been appointed as Indian Cricket team's captain in
all match format i.e. Test, One Day & T-20.
Shri Pranaav Jerry Chopra of ONGC won Syed Modi GP Gold Badminton Tournament
title in the year 2016-17.
Two Kabaddi players namely Jasvir Singh and Scholarship holder Sandeep Narwal
won World cup kabaddi Championship in the year 2016-17.
5 scholarship players namely Mandeep Singh, Gurjant Singh, Sumit, Simranjeet
Singh & Vikramjit Singh secured Gold medal at Junior World Hockey Cup as a member of
Indian team in the year 2016-17.
ONGC Scholarship Athlete Ms. Jisna Mathew (400 mt) and Ajay Kumar Saroj (1500mt)
won Gold medal in Asian Jr. Athletics Championship in 2016-17.
27. Corporate Social Responsibility (CSR)
Your Company as a responsible corporate has always been committed towards creating a
conducive environment to bring about an inclusive growth in the society. The Company is
fully engaged in ensuring equitable and sustainable growth specially in the area of its
operations besides complying with government directives to discharge its social
responsibility as a leading Indian corporate.
It is for the first time in the history of the company that the CSR expenditure has
exceeded Rs. 5,000 million and funds required for continuing with some of the Projects in
the next fiscal year is Rs. 4,010 million. Out of the total CSR budget of Rs. 5,356.66
million for the year 2016-17, the expenditure is Rs. 5,259 million, which includes,
additional overhead expenditure of Rs. 87.4 million towards salary of officers/ personnel
dealt with CSR on full time basis. This translates to overall utilization of 98.18% of the
CSR budget. Rs. 97.66 million are unspent during the year FY 2016-17.
CSR activities of the company are guided by project based approach in line with the
provisions of Companies Act 2013 promulgated by Ministry of Corporate Affairs. Necessary
CSR & SD Policy has been framed and put in place in line with Companies Act 2013. A
separate report on Corporate Social Responsibility (CSR) activities undertaken by your
Company during the FY'17 is enclosed as
Reason for non-utilization of CSR budget:
Around 98.18 % of CSR budget has been spent during the financial year 2016-17 wherein
major PAN India CSR initiatives and work centre specific projects have been implemented
successfully. Major flagship CSR projects have a project duration of more than one year
with milestone based payment spread in different fiscals. Additionally, a number of CSR
projects were in the formulation and approving stage. Against the carry forward budget of
Rs. 15,209 million from balance of CSR unspent funds of previous years, Rs. 7,111.60
million has been committed as on date towards these various ongoing projects and projects
under approving stage. Expenditure against these will be met in the financial years
2017-18 onwards. Major emphasis was laid towards taking up various projects under
Swachhata Programme and these concerted efforts resulted in an expenditure of Rs. 1,542.30
million for such projects during the year 2016-17 across the country. With a view to
create health infrastructure the company contributed Rs. 801.60 million and Rs. 2,001.80
million towards different type of education & skill development related projects.
Apart from Health and Education, project worth Rs. 748.50 million have been implemented in
North Eastern Region, Rs. 113.20 million was spent towards projects for empowerment of
women and project worth Rs. 152.90 million were undertaken for welfare of SC/ST.
Board of Directors take pride in reporting the brief details of the important CSR
projects implemented during the year 2016-17:
(a) Healthcare Initiative: i. Multi-Specialty Hospital at Sivasagar:
The 362 bed Multi-Specialty Hospital at, Sivasagar is the largest ever CSR project to
be undertaken by your company. The hospital will be developed in three phases at a cost of
Rs. 3,123.4 million. Dr Babasaheb Ambedkar Vaidyakiya Pratishthan (BAVP) will be the
Construction, Operating and Management (COM) partner for this project. MOA has been signed
with BAVP on 10th March 2017. The prime objective of the hospital is to provide quality
health care services to the people of Northeast at an affordable cost. The charges for
treatment will be as low as 70% of the market price and further discount of 50% will be
|Cost ( Rs. in million)
|Number of Beds
||Gynaecology & Obst
||Plastic & Cosmetic
ii. Varisthajana Swasthya Sewa Abhiyan:
This flagship CSR project of the Company has succeeded in providing 1.921 million door
step medical treatment to 63797 elderly citizen through Medical Mobile Unit in the
operational areas of ONGC in last six years at a cost of Rs. 164.5 million. Considering
the number of elderly citizen being benefited through this project, 11 new MMUs were
initiated in the year 2016-17 in addition to the existing fleet of 20 MMUs for serving the
community in the remote areas for the next three years at a cost of Rs. 199 million.
Help-Age India is the implementing agency for this project. The total amount sanctioned
for this project till 31.03.2017 is Rs. 363.4 million (for 9 years, since 2010)
iii. Lady Goschen Hospital :
Your Company has undertaken this CSR initiative for construction of new ONGC-MRPL
Wing' for Government Lady Goschen Hospital, Mangalore with financial support of Rs. 127.8
million. Lady Goschen Hospital was established in 1849, at the heart of Mangalore City.
This hospital is exclusively dedicated to the women patient.
WomenfromKarnatakaandothersareasofKonkon region are largely dependent on this hospital for
their treatment. On an average the hospital had to deal with 500 to 600 deliverer cases.
Due to increase inflow of patients there was an urgent need for additional facilities. The
new ONGC- MRPL wing of the hospital will address the long standing need of the women
patient of the region. The hospital is schedule to be commissioned in August 2017. MRPL
has also contributed Rs. 88.9 million towards this project.
iv. Integrated Muscular Dystrophy Rehabilitation Centre (IMDRC) at Solan:
Your Company is supporting Indian Association of Muscular Dystrophy is setting up an
Integrated Muscular Dystrophy Rehabilitation Centre' (IMDRC) at Solan, Himachal Pradesh at
a cost of Rs. 6.6 million.
v. Eye-Care Initiative:
Your Company has undertaken eye-care initiative for the benefit of both adult and
children with two different NGO's namely Anugraha Drishtidan and Praani. While Praani
specifically aims at undertaking screening and eye treatment for school going children of
NCR region whereas Anugraha Drishtidan focuses on eye treatment of adult population near
Company's operational area of Assam, Jharkhand and Andhra Pradesh. Through both these
programs more than one lakh people have been benefited. The project includes screening,
providing medicine, spectacles and cataract operation.
vi. Health Care Initiative in Arunachal Pradesh:
Your Company is working towards improving the health care facilities in the remote
hilly areas of Arunachal Pradesh. In the last one year the Company had provided support
for: I. Ambulance, ultra-sound and X-Ray machine for District Government Hospital Ziro II.
Ambulance and Medical equipment for Community Health Center, Basar (West Siang) III.
Medical equipment and hearse van for Government Hospital Aalo, IV. Ambulance for Govt.
V. Medical equipment's for District. Govt. Hospital Tezu. The total financial
implication for all these project is Rs. 16.8 million.
vii. Indian Menopause Society:
Your Company has supported to Indian Menopause Society towards undertaking
Urogynaecological Surgeries. These surgeries were performed by organizing three mobile
surgical camps at Herbetpur, Uttrakhand, Raxaul, Bihar and Manali, Himachal Pradesh for
the benefit of the underprivileged women who otherwise remain deprived from getting
medical facilities. Some of the surgeries which cannot be performed in remote location are
operated in a Hospital in Delhi. More than 90 such surgeries are carried out through this
project. The total cost of this project is Rs. 983 million
(b) Promoting education Skill Development and livelihood enhancement
Your Company's initiatives promoting education covers a wide range of subject from
promoting Sanskrit language to setting up B. Ed. College for improving the literacy rate
of Arunachal Pradesh. It has undertaken various projects which contribute towards
promotion of education, skill development and enhancement of livelihood. Some of the major
initiative in the field of education and skill development are:
i. Setting up of B. Ed. College:
With an objective to improve the literacy rate of Arunachal Pradesh, your company is
setting up a B. Ed. college at Nirjuli, Arunachal Pradesh in association with Vivekanand
Kendra Vidyalaya Arunachal Pradesh Trust at a cost of Rs. 59 million. The college will be
imparting training to more than 200 students in a year in B. Ed. and shall also conduct
other in-house training activities.
ii. ONGC Super 30:
Your Company has set up a Super 30 center at Sivasagar to train 30 aspiring students to
get admission in IITs and other premier engineering institutes of our country. Two batch
had already completed the course successfully since 2014 with financial implication of Rs.
13.2 million The 3rd batch of 30 students for the year 2016-17 is currently undergoing
training with the financial implication of Rs. 6.33 million. The project is being
undertaken in partnership with Center for Social Leadership.
iii. Establishment of Indian Institute of Petroleum and Energy (IIPE), Visakhapatnam:
In order to establish IIPE, Vizag which will primarily focus on teaching and research
in Petroleum and Energy, your company has contributed Rs. 600 million to IIPE, Vizag
towards corpus/ Endowment fund for establishment of Indian Institute of Petroleum and
Energy (IIPE), Visakhapatnam, Andhra Pradesh. iv.
Promotion of Sanskrit Language
In order to revive the Sanskrit language, your company has taken up this initiative
through Sanskrit Promotion Foundation with a total financial implication of Rs. 50
million. This project includes development of online tools & tutorials for students,
teachers and guardians at formal and in-formal school levels. It also involves workshops,
seminars, leadership programme, technology orientation programme, continuous learning
programme to the teaching community. Research on Sanskrit education, nationwide survey,
and data collection, translation of contemporary literature in Sanskrit including
children's literature and editing and publications of rare manuscripts etc., are the other
highlights of the project. This Project is a step-forward towards the revival of Sanskrit
in India and abroad.
v. ONGC's Support for S-VYASA
Your Company has supported Vivekananda Yoga Anusandhana Samsthana' (VYASA) by
Rs. 120 million towards construction of a 350 bed boy's hostel at S-VYASA University
campus located at Gidden Halli, Jigani Hobli, Bangalore. The hostel will have all the
latest facilities including solar lights, solar heating system, CCTV, lift, interior
furniture, electrical, etc. Free accommodation will be provided to ST/SC and Tribal
students of S-VYASA University whereas deserving poor students will be given 50%
vi. Ekal Vidyalaya:
Your Company has joined hands with Bharat Lok Shiksha Parishad for reaching remote
villages in different parts of the country in order to provide free education to children
through Ekal Vidyalaya'. The beneficiaries are the poor children in 6 to 14 years
age-group who do not have access of education. The classes are being conducted in these
Vidyalayas by a local educated youth who has minimum education of metric level and trained
by team of experts. This project covers 420 Ekal Vidyalayas in as many villages of rural,
tribal and backward areas in 10 states.
With average enrolment of 30 students per school, Ekal Vidyalaya initiative is targeted
to impart free basic informal education to 24,000 students, at a financial implication of
Rs. 19.2 million for two years.
After the completion of the 1st year in November 2016, the project has entered the 2nd
year of implementation.
vii. Job Oriented Computer Training and soft skills development for students mainly
belonging to the weaker sections of Society:
Your Company in association with Bharatiya Vidya Bhavan (BVB) has undertaken a project
titled, "Free Job/ Entrepreneurship Oriented Computer education and soft skills
development for students mainly belonging to the weaker sections of Society". This
project provides free computer education is through BVB's Gandhi Institute of Computer
Education and Information Technology, (GICEIT) at five work centers located at Mehsana,
Dehradun, Nazira, Karaikal and Rajahmundry. These centers have been named as
"ONGC-GICIET" centers. The project started in the year 2010-11. The total cost
of the project is Rs. 100 million. During the year 2016-17, an amount of Rs. 30 million
has been released towards implementation of this project and more than 5500 students have
been trained in computer literacy and soft skill through five centers.
viii. Green Hub Project:
This is an unique initiative to train 20 youth of North East every year in wildlife
videography and documentation. The Green Hub project is implemented in partnership with
North East Network. The main objective of the project is to create a team of environment
enthusiast having expertise in conservation. In the last two year 40 youth has been
trained. The Centre has recently been conferred with Manthan Awards in the category of
Environment & Green Energy for leveraging the power of youth to conserve biodiversity
through a digital platform. The total cost of the project for two years is Rs. 3.94
ix. ONGC ISKON Skill Development Center:
Your Company in partnership with Bhaktivedanta Gurukula and International School, an
educational wing of ISKCON has set up a Vocational Education Centre at Ajhai, near
Vrindavan, in Mathura at a cost of Rs. 80 lakhs. The Company's Centre for Skill
development will be exclusively for imparting training in electrician, carpentry (wood),
organic grower, hand embroidery and self-tailor.
x. Skill Development through CIPET:
The project is for job oriented technical skill development training on plastic
processing & manufacturing in tool room mechanic operator and injection molding
machine operator. 120 no. of youth would be identified through transparent selection
procedure who would be trained by
CIPET. The youth from the State of West Bengal, Odisha and North Eastern will be
benefitted from the project activities. The total cost of the project is Rs. 8.28 million.
xi. Water Hyacinth Craft
50 Women of Sivasagar district in Assam are being trained in Water Hyacinth Craft by a
team of professional from North East Development Financial Corporation Ltd. Out of the
fifty women, 20 women have been selected to undergo advance training program through
National Institute of Design, Ahmedabad. All these women will become expert in designing
craft made of water hyacinth which are in high demand in North East. The total cost for
undertaking this training program is Rs. 3.2 million.
xii. Skill Development Program for Girls of Jammu & Kashmir:
This CSR project is for training of 60 Kashmiri girls of Baramulla region of Jammu
& Kashmir in Fashion Designing course through RICHA in association with Chinar 9 Jawan
Club (Indian Army). These girls are chosen from Baramulla and nearby areas. The total cost
of the project is Rs. 1.65 million. The project will be for a period of one year.
(c) Adoption of Monuments and iconic places
1. Restoration of Kunds in Varanasi:
Your Company has undertaken a flagship initiative for restoration and beautification of
four ancient Kunds of Varanasi. Work is in advance stage of progress in three Kunds having
historical importance i.e Durga Kund, Lakshmi Kund and Lat Bhairav Kund. An amount of Rs.
114.6 million was allocated towards implementation of this project. The project is being
undertaken through M/s National Buildings Construction Corporation Ltd. with active
support from Nagar Nigam Varanasi. The renovation and beautification of Kunds are near
ii. Cleanliness drive at Tirumala Tirupati Devasthanams (TTD), Tirupati:
The Company's Board has approved an amount of Rs. 149.5 million towards undertaking
various cleanliness initiatives at Tirumala, which includes setting up of solid waste
management plant, laying pipeline for utilization of recycled water, deployment of
eco-friendly vehicle and equipment for waste disposal & cleaning, etc.
iii. Beautification of Park near Jantar Mantar:
This is a proactive CSR initiative of your Company towards
Rejuvenation/Beautification of Park adjacent to Jantar Mantar'. The project was
implemented through Indian National Trust for Arts and Cultural Heritage (INTACH), Delhi
Chapter. The total cost of the project is Rs. 7.77 million.
iv. Green Rameshwram Project:
The Green Rameshwram' project is another unique project of your Company
implemented in association with Hand in Hand India in 4 wards of Rameshwaram Municipality,
The objective of the project is to improve Solid Waste Management System through
door-to-door garbage collection, effective waste segregation, waste recycling /
processing, using modern technologies like GPS, behavioural change in households /
commercial establishments / waste pickers / local bodies through various IEC activities
and sustainable financial model through user charges. Your Company has extended financial
support of Rs. 6.72 million for two years.
(d) Ensuring Environmental Sustainability and Ecological Balance i. Eastern Swamp Deer
Your Company implemented the project for conservation of Eastern Swamp Deer in
Kaziranga in partnership with Wild Life Trust of India and Department of Environment &
Forest, Govt. of Assam. Currently, the project is in the third phase of implementation.
After the initial research work undertaken in the first phase to understand the habitat
and different traits of Eastern Swamp deer, 19 Swamp Deers were translocate to Manas
National Park from Kaziranganga National Park in the second phase. In Phase III another
17 eastern deer swamp deer were trans-located from Kaziranga National Park in the month of
Feb 2017 to Manas National Park, creating an alternate breeding ground for the Eastern
Swamp Deer other than Kaziranga National Park. An amount of Rs. 22.65 million, has been
sanctioned towards implementing the three phases of this project.
ii. Statue of Unity at Gujarat:
The project aims at building 182 meters (392 feet) tall, the World Largest Statue of
Sardar Vallabhbhai Patel at the Sadhu Bet Island, approximately 3.5 kms south of Sardar
Sarovar Dam at Kevadia in the Narmada district of Gujarat. The monument will have
development oriented Initiatives like Development of banks of River Narmada up to Bharuch,
Clean Technology Research Park & Agriculture Training Centers, Schools, colleges and
universities for tribal development, Education Research Centre and Knowledge City etc. The
project activities will boost tourism and facilitate development in the surrounding tribal
areas. Your Company has supported Sardar Vallabhbhai Patel Rashtriya Ekta Trust'
with financial support of Rs. 500 million towards this project.
iii. Pradhan Mantri Ujjwala Yojana (PMUY):
This project is being implemented as per the directives of Ministry of Petroleum &
Natural Gas (MoPNG) wherein your company has contributed 20% of its CSR budget for
providing new LPG connection to BPL families free of cost. This project aims at
environment sustainability and social upliftment by providing smokeless clean fuel in
rural/underserved areas so that standard of life in rural areas improves and dependency on
fire wood reduces in these areas of the country. In the year 2016-17 your Company has
contributed Rs. 1,071.3 million towards this initiative, which has been implemented by
iv. Ringal Plantation in Upper Himalayas:
Your Company being responsible organization for protection of environment has always
given great importance to tree plantation not only at its operational work areas but also
in the areas outside its work center, with emphasis on survival of planted saplings. Your
Company undertook an initiative for tree plantation in Uttarakhand on a proposal submitted
by Uttaranchal Bamboo and Fiber Development Board (UBFDB), an autonomous organization
under the Forest Department, Govt. of Uttarakhand. This plantation drive had carbon
sequestering potential, water recharge and soil conservation capacity. It has provided
livelihood to rural community of Uttaranchal living at 5000 6000 feet above sea
level. Till 31.03.2017 plantation is done in 430 hectares resulting in 1.97 million tonnes
of CO2 fixation/annum.
v. Harit Moksha:
Green Cremation System: This is a unique CSR initiative of your company undertaken with
Mokshda Paryavaran Evam Van Suraksha Samiti (MPEVSS) to reduce wood consumption during
traditional cremations through Mokshda Green Cremation Systems (MGCS). The ongoing project
commenced in 2010 includes installing 30 units of green cremation system in 8 cities of 7
different states with a budget of Rs. 91.9 million. The project was successfully completed
and helped in saving approximately 13,700 tonnes of wood & reduced 26,500 tonnes of
GHG emissions annually till date. Considering the impact of this project, 4 new units has
been approved in FY 2016-17, for installation of one unit at Pilhibit and 3 unit at Delhi
at a cost of Rs. 13.8 million.
vi. Solar Lights:
More than 4900 numbers of Solar Street Lights have been installed in the states of
Andhra Pradesh, Rajasthan, Gujarat, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar
Pradesh, Uttrakhand and Jharkhand availing services of MNRE Channel partners empanelled
under rate contract at a total financial implication of Rs. 98.2 million.
e. Swachh Bharat Abhiyan i. Information, Education, Communication program:
Your Company is the only company to initiate Information, Education, Communication
(IEC) activities in 5592 school across India. After the successfully completing the
construction of toilets under Swachh Vidhyalaya Abhiyan , the Company has taken a step
forward by carrying out School Led Total Sanitation (SLTS) initiative through Aroville
Foundation in all 5592 school across India. The project aims at the behavioural and
habitual changes among the students and local public. An amount of Rs. 70 million is
earmarked towards implementing this project. Operation & Maintenance of the school
toilets through community/ parents, teachers association has been established in 3003
schools by 31.03.2017 and efforts are under progress in other schools.
ii. Open Defecation Free Initiative:
Your Company has undertaken an initiative for making villages near its operation area
Open Defecation Free (ODF). In the last one year more than 3540 Individual House Hold
Latrine (IHHL) had been constructed in the operational areas at cost of Rs. 64.2 million.
Besides project worth Rs. 106.8 million has been approved for construction of 7749 IHHL in
iii. Swachhata Initiative of ONGC reaches Himalaya:
Your Company is one of the first company to take the Swachh Bharat initiative to the
Himalaya. The project is implemented in partnership with Indian Mountaineering Foundation
(IMF) through which tons of garbage's are brought down from the high altitude mountain
ranges of Uttarakhand. Specialized trained mountaineers are engaged to carry out this
task. In the last two years the Company had undertaken the following Swachhata initiative
in different mountain ranges of the Himalayas with IMF at a cost of Rs. 5.22 million.
( Rs. in Million)
||Mountain Ranges covered
||Project cost ( Rs. )
|Aug Sept 2015
||Peak Stok Kangri in Ladakh, Shigri Glacier Region, Spiti Valley, Tapovan, Gangotri
Region, Pindari Area in Uttarakhand Himalaya
|May 2016 and Oct 2016
||Gaumukh, Tapovan, Nandanvan and Gangotri
||Chanshal Valley, Dhauladhar Range, Yamunotri, Anini / Mechuka (Arunachal Pradesh)
iv. Community Toilets at Dharavi:
To address the sanitation problem in the slums of Dharavi (Mumbai), your Company has
implemented a project for construction of five community toilets at a cost of Rs. 7.72
million. This project is being implemented through Sulabh International Social Service
v. Mobile Water ATM:
This project is for provision of clean drinking water for the local population and
tourists of Lucknow through Mobile Water ATM. The project has a dual benefit. First, the
project has helped in provision of clean and safe drinking water for the local population
and tourists in Lucknow. Secondly, the project has helped 7 Person with Disability (PwD)
earn livelihood by operating these Mobile Water ATM. All seven mobile water
ATM's are operated by PwD, who collect the water from a centralized RO plant and sell
them to on-the-go commuters in various location of Lucknow at a very nominal cost. The
project is undertaken in association with Margdarshak at a cost of Rs. 1.97 million.
Decentrik Technologies (DT) who has developed this innovative Water ATM technology is the
technical service provider of the project.
vi. Deep Water Tube Wells:
The project for installation of six deep water tube well through National Consumer
Cooperative Federation in six different locality of Kamrup district of Assam in under
implementation. The locations has been identified in consultation with district
administration where there is acute problem of clean drinking water.
vii. Hand Pumps:
More than 400 hand-pumps are installed across different location of the country. The
project locations are identified based on need, where there is scarcity of drinking water.
An amount of Rs. 23.6 million has been earmarked for installation of these hand pumps.
f. CSR initiatives exclusively for benefit of SC-ST and tribal population:
Efforts have always been made by your company towards identification and implementation
of CSR projects meant exclusively for the benefit of SC-ST in the country. Implementation
of such projects has never been restricted to operational areas of the Company alone.
Project worth Rs. 152.9 million are implemented during the year 2016-17 for the same.
Besides, as per the bilateral understanding with AISCSTEWA, an amount of Rs. 155 Million
is allocated towards 1000 merit scholarship for a period of 4 years commencing from
2016-17 exclusively for the benefit of students belonging to ST/SC. Some of the other
major CSR initiative for the benefit of SC/ST and Tribal community are:
i. Development of Model Village at Korbongpara:
In Tripura, your company in partnership with Tripura Engineering Society (TES) has
contributed towards development of Model Village at Karbongpara under Champabari ADC
village of Jirania Block, West Tripura District with a total project cost of Rs. 6.6
million. The Karbong community of Tripura with 120 inhabitants and low literacy rate is on
the verge of extinction. They are deprived of basic needs and belong to the weakest
section of society. Under this project, it is planned to develop the said village into a
self-sustained model village which includes developing the infrastructural facilities like
community centre, sanitation, drinking water facilities, irrigation, market shed, internal
road connectivity, education, healthcare, income generation to support the livelihoods.
ii. Multi-Purpose Skill Development and Community Centre at Natun Jelom:
Your Company, under Sansad Adarsh Gram Yojna supported for construction of Multipurpose
Skill development and community center at Natun Jelom, Jonai in Dhemaji district of Assam
at a cost of Rs. 4 million. More than 98% of Natun Jelom population belongs to ST
iii. Infrastructure development of Rongagora Junior College:
This project was implemented under ST/SC component plan for construction of Rongagora
Junior college at Golaghat at a cost of Rs. 2.69 million.
iv. Construction of Community Hall and Schools:
Your Company has supported construction of three community center, one school building,
12 unit of school toilets and 8 teachers quarter at West Siang District of Arunachal
Pradesh at a cost of Rs. 10.4 million. The majority of the population of these villages
belongs to ST community.
v. Infrastructure development of school and hostel:
Your Company in partnership with Kalyan Ashram Tripura has undertaken an initiative for
construction of Ratnamani Sishu Siksha Niketan School and hostel building at
Kanchancherra, Tripura with an estimated cost of Rs. 3.5 million which will provide hostel
facilities to the tribal students and access to healthy educational environment.
g. Promotion of Sports: i. Chau Lung Syukapha Indoor Stadium.
The Chau Lung Syukapha Indoor Stadium, constructed in Sivasagar with funding from your
company is one of the major sports infrastructure development project undertaken under
CSR. The stadium is constructed at a cost of Rs. 15.2 million, which is going to help the
budding young sportsmen of Sivasagar and other district of Assam. ii. Training of Indian
Wrestlers: Your Company has contributed Rs. 11.5 million to Wrestling Federation of India
towards development of wrestling in India.
Consistent with the trend in preceding years, your Company, its various operating units
and its senior management have been recipients of various awards and recognitions. Details
of such accolades are placed at Annexure- D'.
29. Directors' Responsibility Statement
Pursuant to the requirement under Section 134(3) (c) of the Companies Act, 2013, with
respect to Directors' Responsibility Statement, it is hereby confirmed that: (i) In the
preparation of the annual accounts, the applicable accounting standards have been followed
and there are no material departures from the same; (ii) The Directors have selected such
accounting policies and applied them consistently and made judgements and estimates that
are reasonable and prudent, so as to give a true and fair view of the state of affairs of
the Company as on 31st March, 2017 and of the profit of the Company for the year ended on
that date; (iii) The Directors have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the Companies Act,
2013, for safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities; (iv) The Directors have prepared the annual accounts of the
Company on a going concern' basis. (v) The Directors have laid down internal
financial controls which are being followed by the company and that such internal
financial controls are adequate and are operating effectively.
(vi) The Directors have devised proper systems to ensure compliance with the provisions
of all applicable laws and that such systems are adequate and operating.
30. Corporate Governance
Your Company has taken structured initiatives towards Corporate Governance and its
practices are valued by various stakeholders. The practices emanate from the need to
position multi-layered checks and balances at various levels to ensure transparency of its
operations in the decision making process.
In terms of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015,
a report on Corporate Governance for the year ended March 31, 2017along with a certificate
from the Company's Statutory Auditors confirming compliance of conditions forms part of
this report. Your Company has implemented the mandatory Guidelines of Department of Public
Enterprises (DPE), Government of India, on Corporate Governance to the maximum extent
possible. Your Company has formulated and uploaded the following policies/codes on its
website in line with the Companies Act, 2013 and Listing Regulations: (a) Code of Conduct
for Board Members and Senior Management Personnel (b) Related Party Transactions 3 Policy
& Procedures, 2014 (c) Material Subsidiary Policy (d) The Code of Internal Procedures
and Conduct for prohibition of insider trading in dealing with the securities of ONGC
(e) Corporate Policy on Materiality for Disclosure of events to the Stock Exchanges (f)
Corporate Policy on Preservation of Documents and their archiving (g) Policy for Training
of Directors (h) Dividend Distribution Policy In line with global practices, your Company
has made available all information, required by investors, on the Company's corporate
In line with the SEBI (Listing Obligations & Disclosure Requirements) Regulations,
2015, your Company has also implemented other measures of Corporate Governance
(mandatory/voluntary) which have been brought out in the Corporate Governance Report and
are as follows:
i. Whistle Blower Policy/ Vigil Mechanism: A total of 40 Protected Disclosures till
31.03.2017 have been processed through the Whistle Blower mechanism of your Company which
was implemented from December 01, 2009. The policy ensures that a genuine Whistle Blower
is granted due protection from any victimization. The Policy is applicable to all
employees of the Company and has been uploaded on the intranet of the Company. In
addition, the Company has a full-fledged Vigilance Department, which is headed by Chief
Vigilance Officer who holds the rank of a Functional Director of the Company. With a view
to maintain his independence, the CVO reports to the Chief Vigilance Commissioner of the
Government of India.
ii. Enterprise-wide Risk Management (ERM) Framework: In line with the requirements
of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, your
Company has developed and rolled out a comprehensive Enterprise-wide Risk Management (ERM)
Policy throughout the organization. The Audit & Ethics Committee periodically reviews
the risk assessment and minimization process in ONGC.
The Risk Management policy of your Company is as follows:
"ONGC shall identify the possible risks associated with its business and commits
itself to put in place a Risk Management Framework to address the risk involved on an
ongoing basis to ensure achievement of the business objective without any interruptions.
The Board of Directors have constituted a Board Level Risk Management Committee in
terms of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Till
date three meetings of the Committee have been held.
ONGC shall optimize the risks involved by managing their exposure and bringing them in
line with the acceptable risk appetite of the Company"
iii. Meeting of Independent Directors: Four Meetings of Independent Directors were
held during FY'17.
iv. Certificate of Independence by Independent Directors: The Independent Directors
have submitted declaration that they meet the criteria of Independence as per section
149(6) of the Companies Act, 2013.
31. Statutory Disclosures
Your Directors have made necessary disclosures, as required under various provisions of
the Act and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
Extract of Annual Return
As per requirement of section 92(3) of the Companies Act, 2013, the extract of the
annual return in form MGT-9 is placed at Annexure-E.
Particulars of Employees
Your Company being a Government Company, the provisions of section 197(12) of the
Companies Act, 2013 and relevant Rules do not apply in view of the Gazette notification
dated 05.06.15 issued by Government of India, Ministry of Corporate Affairs. The terms and
conditions of the appointment of Functional Directors are subject to the applicable
guidelines issued by the Dept. of Public Enterprise, Government of India. The salary and
terms and conditions of the appointment of Company Secretary, a KMP of ONGC, is in line
with the parameters prescribed by the Government of India.
32. Energy Conservation
The information required under section 134(m) of the Companies Act, 2013, read with the
Companies (Accounts) Rules, 2014, is annexed as
33. Audit And Ethics Committee
In compliance with section 177(8) of the Companies Act, 2013, the details regarding
Audit & Ethics Committee is provided under Corporate Governance report which forms
part of this Annual Report. There has been no instance where the recommendations of the
Audit & Ethics Committee have not been accepted by the Board of Directors.
The Statutory auditors of your company are appointed by the Comptroller & Auditor
General of India (C&AG) M/s. Dass Gupta & Associates, New Delhi, M/s. M K P S
& Associates, Mumbai, M/s. Lodha & Co., Kolkata, M/s. PKF Sridhar
& Santhanam LLP, Chennai, M/s. Khandelwal Jain & Co., Mumbai and M/s. K C Mehta
& Co., Baroda Chartered Accountants were appointed as joint Statutory Auditors for the
financial year 2016-17. The statutory auditors have been paid a total remuneration of Rs.
43.41 million (previous year Rs. 26.39 million) towards audit fees, certification and
other services. The above fees are inclusive of applicable service tax but exclusive of
re-imbursement of reasonable travelling and out of pocket expenses actually incurred.
35. Auditors' Report on the Accounts
The comments of Comptroller & Auditor General of India (C&AG) form part of this
Report and is attached as Annexure G'. There is no qualification in the
Auditors Report on the Financial Statements of the Company.
36. Secretarial Audit
In terms of section 204(1) of the Companies Act, 2013, the Company has engaged M/s P P
& Co., Company Secretaries in whole-time practice, as Secretarial Auditors for
conducting Secretarial Compliance Audit for the financial year ended 31st March, 2017. The
report has been annexed and forms part of the Annual report.
37. Cost Audit
Six firms of Cost Accountants were appointed as Cost Auditors for auditing the cost
accounts of your Company for the year ended 31.03.2017 by the Board of Directors. The Cost
Audit Report for the year 2015-16 has been filed under XBRL mode on 23.09.2016 which was
well within the due date of filing.
Policy On Directors' Appointment Etc.
Your Company being a Government Company, the provisions of section 134(3) (e) of the
Companies Act, 2013 do not apply in view of the Gazette notification dated 05.06.15 issued
by Government of India, Ministry of Corporate Affairs.
The provisions of Section 134(3)(p) of the Companies Act, 2013 relating to evaluation
of Board/ Directors do not apply to your Company since necessary exemptions are provided
to all government companies. Further, similar exemption is awaited from SEBI under the
provisions of Listing Regulations 2015.
Appointments / Cessation Etc
Since the 23rd Annual General Meeting held on 08.09.2016, Shri Deepak Sethi, Shri Vivek
Mallya, Shri Sumit Bose were inducted as Independent Directors of the Company with effect
from 31.01.2017 and Dr. Santrupt B. Misra was inducted as Independent Director of the
Company with effect from 06.02.2017.
Shri A. P. Sawhney, Additional Secretary, MoP&NG, Government Nominee Director
ceased to be Director on the Board of the Company w.e.f. 23.06.2017. The Board places on
record its appreciation for his contribution during his tenure. Shri Rajiv Bansal,
Additional Secretary, MoP&NG, joined the Board as Government Nominee Director on
10.08.2017 in place of Shri A. P. Sawhney.
The strength of the Board of Directors of the Company is 16 comprising 7 Executive
Directors (Functional Directors including CMD) and 9 Non-Executive Directors including two
Government Nominees and seven Independent Directors. Ministry of Petroleum & Natural
Gas has been requested to appoint requisite number of independent Directors including a
woman Director to comply with the provisions of Companies Act, 2013 and Listing
A total of 13 meetings of the Board of Directors of ONGC were held during FY'17.
Details of other Key Managerial Personnel as per Rule 8 (5) (iii) of the Companies
(Accounts) Rules, 2014:
Shri M. E. V. Selvamm took over as Company Secretary on 01.06.2017 in place of Shri V.
N. Murthy who superannuated on 31.05.2017.
Your Directors are highly grateful for all the help, guidance and support received from
the Ministry of Petroleum and Natural Gas, Ministry of Finance, DPE, MCA, MEA, and other
agencies in Central and State Governments. Your Directors acknowledge the constructive
suggestions received from Statutory Auditors and Comptroller & Auditor General of
India and are grateful for their continued support and cooperation. Your Directors thank
all share-owners, business partners and all members of the ONGC Family for their faith,
trust and confidence reposed in the Board. Your Directors wish to place on record their
sincere appreciation for the unstinting efforts and dedicated contributions put in by the
ONGCians at all levels, to ensure that the Company continues to grow and excel.
||On behalf of the Board of Directors
|Place: New Delhi
||(Dinesh K Sarraf)
||Chairman & Managing Director