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ONGCHISTORY1947 - 1960 During the pre-independence period, the Assam Oil Company in the northeastern and Attock Oil company in northwestern part of the undivided India were the only oil companies producing oil in the country, with minimal exploration input. The major part of Indian sedimentary basins was deemed to be unfit for development of oil and gas resources.
After independence, the national Government realized the importance oil and gas for rapid industrial development and its strategic role in defense. Consequently, while framing the Industrial Policy Statement of 1948, the development of petroleum industry in the country was considered to be of utmost necessity.
Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources of India. In Assam, the Assam Oil Company was producing oil at Digboi (discovered in 1889) and the Oil India Ltd. (a 50% joint venture between Government of India and Burmah Oil Company) was engaged in developing two newly discovered large fields Naharkatiya and Moran in Assam. In West Bengal, the Indo-Stanvac Petroleum project (a joint venture between Government of India and Standard Vacuum Oil Company of USA) was engaged in exploration work. The vast sedimentary tract in other parts of India and adjoining offshore remained largely unexplored.
In 1955, Government of India decided to develop the oil and natural gas resources in the various regions of the country as part of the Public Sector development. With this objective, an Oil and Natural Gas Directorate was set up towards the end of 1955, as a subordinate office under the then Ministry of Natural Resources and Scientific Research. The department was constituted with a nucleus of geoscientists from the Geological survey of India.
A delegation under the leadership of Mr. K D Malviya, the then Minister of Natural Resources, visited several European countries to study the status of oil industry in those countries and to facilitate the training of Indian professionals for exploring potential oil and gas reserves. Foreign experts from USA, West Germany, Romania and erstwhile U.S.S.R visited India and helped the government with their expertise. Finally, the visiting Soviet experts drew up a detailed plan for geological and geophysical surveys and drilling operations to be carried out in the 2nd Five Year Plan (1956-57 to 1960-61).
In April 1956, the Government of India adopted the Industrial Policy Resolution, which placed mineral oil industry among the schedule 'A' industries, the future development of which was to be the sole and exclusive responsibility of the state.
Soon, after the formation of the Oil and Natural Gas Directorate, it became apparent that it would not be possible for the Directorate with its limited financial and administrative powers as subordinate office of the Government, to function efficiently. So in August, 1956, the Directorate was raised to the status of a commission with enhanced powers, although it continued to be under the government. In October 1959, the Commission was converted into a statutory body by an act of the Indian Parliament, which enhanced powers of the commission further. The main functions of the Oil and Natural Gas Commission subject to the provisions of the Act, were "to plan, promote, organize and implement programmes for development of Petroleum Resources and the production and sale of petroleum and petroleum products produced by it, and to perform such other functions as the Central Government may, from time to time, assign to it ". The act further outlined the activities and steps to be
taken by ONGC in fulfilling its mandate.
1961 - 1990
Since its inception, ONGC has been instrumental in transforming the country's limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories. In the inland areas, ONGC not only found new resources in Assam but also established new oil province in Cambay basin (Gujarat), while adding new petroliferous areas in the Assam-Arakan Fold Belt and East coast basins (both inland and offshore). ONGC went offshore in early 70's and discovered a giant oil field in the form of Bombay High, now known as Mumbai High. This discovery, along with subsequent discoveries of huge oil and gas fields in Western offshore changed the oil scenario of the country. Subsequently, over 5 billion tonnes of hydrocarbons, which were present in the country, were discovered. The most important contribution of ONGC, however, is its self-reliance and development of core competence in E&P activities at a globally competitive level.
After 1990
The liberalized economic policy, adopted by the Government of India in July 1991, sought to deregulate and de-license the core sectors (including petroleum sector) with partial disinvestments of government equity in Public Sector Undertakings and other measures. As a consequence thereof, ONGC was re-organized as a limited Company under the Company's Act, 1956 in February 1994.
After the conversion of business of the erstwhile Oil & Natural Gas Commission to that of Oil & Natural Gas Corporation Limited in 1993, the Government disinvested 2 per cent of its shares through competitive bidding. Subsequently, ONGC expanded its equity by another 2 per cent by offering shares to its employees.
During March 1999, ONGC, Indian Oil Corporation (IOC) - a downstream giant and Gas Authority of India Limited (GAIL) - the only gas marketing company, agreed to have cross holding in each other's stock. This paved the way for long-term strategic alliances both for the domestic and overseas business opportunities in the energy value chain, amongst themselves. Consequent to this the Government sold off 10 per cent of its share holding in ONGC to IOC and 2.5 per cent to GAIL. With this, the Government holding in ONGC came down to 84.11 per cent.
In the year 2002-03, after taking over MRPL from the A V Birla Group, ONGC diversified into the downstream sector. ONGC will soon be entering into the retailing business. ONGC has also entered the global field through its subsidiary, ONGC Videsh Ltd. (OVL). ONGC has made major investments in Vietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from its investment in Vietnam.
PROFILE
• ONGC ranks 3rd Oil & Gas Exploration & Production (E&P) Company in the world and 23rd among leading global energy majors as per Platts 250 Global Energy Companies List for the year 2009
• ONGC ranks 24th among the Global publicly-listed Energy companies as per ‘PFC Energy 50” (Jan 2008)
• Finance Asia 100 list ranks ONGC no 1 among Indian Blue Chips.
• Occupies 155th rank in “Forbes Global 2000” list 2010 of the world’s biggest companies for 2010 based on sales, profits, assets and market capitalisation.
• ONGC ranked 402nd position as per Fortune Global 500 - 2009 list;, based on revenues, profits, assets and shareholder’s equity.
Represents India’s Energy Security
ONGC has single-handedly scripted India’s hydrocarbon saga by:
• Establishing 6.89 billion tonnes of In-place hydrocarbon reserves with more than 300 discoveries of oil and gas; in fact, 6 out of the 7 producing basins have been discovered by ONGC: out of these In-place hydrocarbons in domestic acreages, Ultimate Reserves are 2.42 Billion Metric tonnes (BMT) of Oil Plus Oil Equivalent Gas (O+OEG).
•Cumulatively produced 803 Million Metric Tonnes (MMT) of crude and 485 Billion Cubic Meters (BCM) of Natural Gas, from 111 fields.
•ONGC has bagged 120 of the 238 Blocks (more than 50%) awarded in the 8 rounds of bidding, under the New Exploration Licensing Policy (NELP) of the Indian Government. ONGC has bagged 17 out of 31 blocks awarded in NELP round VIII (14 as operator).
• ONGC’s wholly-owned subsidiary ONGC Videsh Ltd. (OVL) is the biggest Indian multinational, with 40 Oil & Gas projects (9 of them producing) in 15 countries, i.e. Vietnam, Sudan, Russia, Iraq, Iran, Myanmar, Libya, Cuba, Colombia, Nigeria, Nigeria Sao Tome JDZ, Egypt, Brazil, Syria and Venezuela. OVL had invested around Rs 50,000 Crores (Approx 10 billion US dollars).
India’s Most Valuable Public Sector Enterprise• Ranked at 2nd position in FE500 list 2010 in net worth and overall composite ranking.
• ONGC & MRPL won 6 Oil Industry Safety Awards for 2008-09 instituted by OISD,
MOP&NG.
• Ranked at top of the Best companies to work for in Core Sector by Business Today in Feb 2010 edition.
• Golden Peacock Global Award 2007 for Excellence in Corporate Governance 2009”, conferred by World Council of Corporate Governance, London.
• Bagged “BML Munjal Award” for Excellence in Learning & Development in Public Sector category.
• Bestowed with “Leadership for Business Excellence Award” for leveraging IT in Oil & Gas Sector by Amity University
• ONGC awarded with Gold Trophy for SCOPE Meritorious Award for Corporate Social Responsibility & Responsiveness for the year 2007-08 and for R&D, Technology Development & Innovation for the year 2008-09
• Given Best Overall Performance Award amongst the upstream Sector Oil Companies for Oil and Gas conservation programme for 2009 by PCRA
• Clinched Dalal Street investment Journal PSU awards 2010 for Excellent Overall Performance in the category of heavy weights and Highest Market Capitalisation in the category of wealth Builders
• Rated ‘Very Good’ in MOU Performance Rating for 2008-09 by the Department of Public Enterprises, Ministry of Heavy Industries in Public Enterprises, GOI.
Pioneering Efforts
ONGC is the only fully–integrated petroleum company in India, operating along the entire hydrocarbon value chain:
• Holds largest share of hydrocarbon acreages in India.
• Contributes over 79 per cent of Indian’s oil and gas production.
• Refining capacity of about 12 MMTPA.
• Created a record of sorts by turning Mangalore Refinery and Petrochemicals Limited around from being a stretcher case for referral to BIFR to the BSE Top
30, within a year.
• Interests in LNG and product transportation business.
Competitive Strength
All crudes are sweet and most (76%) are light, with sulphur percentage ranging from 0.02-0.10, API gravity range 26°-46° and hence attract a premium in the market.Strong intellectual property base, information, knowledge, skills and experience
• Maximum number of Exploration Licenses, including competitive NELP rounds. ONGC has bagged 120 of the 238 Blocks awarded in the 8 rounds of bidding, under the New Exploration Licensing Policy (NELP) of the Indian Government. ONGC has begged 17 out of 31 blocks awarded in NELP round VIII(14 as operator).
• ONGC owns and operates more than 22000 kilometers of pipelines in India, including nearly 4500 kilometers of sub-sea pipelines. No other company in India, operates even 50 per cent of this route length.
Strategic Vision: 2001-2020
To focus on core business of E&P, ONGC has set strategic objectives of:
Doubling reserves (i.e. accreting 6 billion tonnes of O+OEG).
Improving average recovery from 28 per cent to 40 per cent. Tie-up 20 MMTPA of equity Hydrocarbon from abroad.
The focus of management will be to monetise the assets as well as to assetise the money.
Sourcing Equity Oil Abroad ONGC’s overseas arm ONGC Videsh Limited
(OVL), continued to maintain robust growth during 2009-10.
The First oil from BC-10 deepwater field in Brazil commenced from 12th July 2009 and currently producing at a rate of about 72,500 bopd.
Production up from 6,000 bpd to 16.700 bpd from Imperial Energy fields in Russia.
At close of the financial year 2009- 10, the Proved and Probable reserves (2P) of OVL stood at 357 MMTOE, the second largest holding of proven oil and gas reserves (2P) by any Indian Company, next only to ONGC.
Consortium of OVL acquired 40% in Caraboo Venezuela in May 2010 for developing Carabobo 1 Norte & Carabobo 1 Centre blocks.
The company now has participation in 40 projects in 15 countries. Out of 40 Projects, OVL is operator in 17 projects and joint operator in 6 projects in 11 countries. OVL is currently producing oil and gas from Block 6.1 in Vietnam, Greater Nile Oil Project and Block 5A in Sudan, Imperial Energy and Sakhalin-I Project in Russia, Mansarovar Energy Project in Colombia, Al Furat Project in Syria, PIVSA in Venezuela and Block BC-10 in Brazil. While 7 projects are under development, 23 projects are in exploration phase.
OVL’s produced 8.87 MMTOE during FY 2009-2010, its highest ever production of oil and oil-equivalent gas (O+OEG). Consolidated turnover of OVL stood at 154.64 billion and OVL made a profit of Rs 20.90 billion.
ONGC’s strategic objective of sourcing 20 million tonnes of equity oil abroad per year is likely to be fulfilled well before 2020.
Frontiers Of Technology
• State-of-the-art seismic data acquisition, processing and interpretation facilities
• Uses one of the Top Ten Virtual Reality Interpretation facilities in the world
• Alliances with Transocean, Schlumberger, Halliburton and Baker Hughes, IPR, Petrobras, Norsk, ENI, Shell
• One of the biggest ERP implementations in the Asia
Best In Class Infrastructure And Facilities• ONGC’s success rate is at par with the global norm and is elevating its operations to the best in class level, with the modernization of its fleet of drilling rigs and related equipment.
• ONGC has adopted Best-in-class business practices for modernization, expansion and integration of all Info-com systems.
Onshore
• Production Installations :- 240
• Pipeline Network (km) :-17,500
• Drilling Rigs :- 69
• Work Over rigs :- 59
• Well Stimulation unit :-99
• Seismic survey crew :- 34
• Logging Units :- 32
• Engineering Workshops :- 2
• Virtual Reality Centre :- 5
• Regional Computer Centre :- 5
Offshore
•Well Platforms :- 160
• Well-cum-Process Platforms :- 5• Water Injection Platform :- 7
• Process Platforms :- 22
• Well Stimulation unit :-7• Drilling Rigs :- 9
• Pipeline Networks (km) :- 4,500
• Offshore Supply Vessels :- 73
• Multi Purpose Support Vessel :- 6
• Seismic Vessels :- 1
Financials (2009-10)
•ONGC posted a net profit of Rs. 167.68 billion despite volatile oil markets and crude prices.
• Net worth Rs. 864 billion
• Practically Zero Debt Corporate
• Contributed over Rs. 281 billion to the exchequer VISION AND MISSIONWorld Class
Dedicated to excellence by leveraging competitive advantages in R&D and technology with involved people.
Imbibe high standards of business ethics and organizational values.
Abiding commitment to safety, health and environment to enrich quality of community life.
Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for our people.
Strive for customer delight through quality products and services.
Intergrated In Energy Business
Focus on domestic and international oil and gas exploration and production business
opportunities.
Provide value linkages in other sectors of energy business.
Create growth opportunities and maximize shareholder value.
Dominant Indian Leadership
Retain dominant position in Indian petroleum sector and enhance India's energy
availability.
BOARD OF DIRETORS
A K Hazarika Chairman & Managing Director,
Director (Onshore) & Director (HR)
FUNCTIONAL DIRECTORS
D K Sarraf Director (Finance)
U N BoseDirector (Technology & Field
Services
SAFETY,HEALTH AND ENVIRONMENT
HSE Management System in ONGC The HSE management system of ONGC is top driven efficient, effective and vibrant management system. Top management of company is committed for maintaining highest standard of Health Safety and Environment protection and is also committed to meet all applicable statutory requirement and prevention of pollution. This commitment is evident as HSE policy statement signed by CMD.
ONGC has a HSE Committee of Board, which comprises of members of Board from ONGC including representative from Ministry of Petroleum and Natural Gas. This committee is the apex body of HSE administration. The committee reviews policy, processes and systems on HSE and ecology aspects.
ONGC has well structured HSE set up for managing HSE functions and issues of the organization. At Corporate level the HSE setup is headed Chief HSE reporting to Director –Incharge HSE and at Asset/ Basin and Plant level by Head HSE reporting directly to Asset/ Basin Manager and Plant Head respectively.
Greatest emphasis is given to safety measures for minimizing accidents. Accidents are investigated and analysed for root cause so that re- occurrence can be prevented.
A comprehensive HSE manual has been developed for use by operating and HSE personnel.
Specialized Personnel Protective Equipments have been standardized and provided to operating personnel for use in the work areas.
Regulatory authorities and Govt. agencies carry out inspection/ audits with an aim for overall improvement in the HSE performance at regular frequency.
A dedicated HSE website has been developed for creating awareness among company employees as well as for serving an interactive platform for HSE personnel through dissemination of HSE related information and providing links for important websites.
HSE management is accorded top priority in ONGC and Quality Occupational Health Safety and Environment Management System (QHSE MS) has been developed, implemented and certified at operating facility as per the requirements of ISO 9001, OHSAS 18001 and ISO 14001. To enhance credibility, the QHSE management system at operating facility is third party certified and subjected to annual surveillance audit.
HSE issues are addressed systematically, effectively and proactively as per requirements of ISO standards/ OHSAS guidelines by making specific objectives and targets to address them.
The system works on the principle of risk management / environmental aspects management by identifying, quantifying and addressing them through appropriate work instructions and management plans.
Institute of Petroleum Safety Health and Environment (IPSHEM)
ONGC believes in continuous capacity building of employees and to support this ONGC has Institute of Petroleum Safety Health and Environment Management (IPSHEM) the nodal institute which deals with all HSE related trainings and has been developed as centre of excellence.
Infrastructure and facilities
* Developed as a premier in-house HSE Training Centre of ONGC with state-of-the art facilities of international standard under one roof for carrying out training and consultancy studies in the field of HSE.*Large campus area spread over 250 acres of land with 1.5 km exclusive sea front has been developed as an environmental role model with greenery development and HSE learning parks.* 4 well furnished lecture halls and 2 residential hostel blocks with modern amenities.* Practical Petroleum Emergency Trainings (PET) include fire fighting simulators – X-mas/ well-head, confined space vessel entry, smoke chamber, mini GGS/ process complex, emergency evacuation & escape simulators, electrical panel/ transformer fire, LPG tanker fire safety, heli-deck fire, etc.*Sea Survival Training Facility (SSTF) – Vessel ‘Samudra Shiksha’ caters to mandatory practical safety training for offshore operations instilling a great degree of skill development and confidence among the offshore going personnel of ONGC in dealing with emergency situations in high seas while engaged in oil exploration & production activities.*HSE Display Centres and Library & Information Centre – 4 Display Centres on Safety, Fire Fighting, Occupational Health and Environment, help the trainees to acquaint themselves with the latest equipment and technological advancements in these fields. The modern Library and Information Centre, part of ONGC LIBNET, helps them to enhance their knowledge while on training. * Environment Laboratory equipped with ICP (Inductively Coupled Plasma) Unit, UV Spectrophotometer, etc. for carrying out environmental studies.
ONGC HSE policy
We are committed to maintain highest standards of Occupational health, safety and
environment protection.
We shall comply with all applicable codes and requirements to promote occupational health, safety and environment protection.
We shall be always alert, equipped and ready to respond to emergencies.
We shall take all actions necessary to protect the integrity of the system in order to avoid accidental release of hazardous substances.
We shall enhance awareness and involvement in promotion of occupational health, safety and environment protection wherever we work and reside.HSE policy (click here)
Environmental Initiatives in ONGC
ONGC has developed Environmental Management System based on ISO 14001 at each operating facility which is further integrated with Quality, Occupational Health and Safety management System (QHSE MS) for having holistic approach towards HSE issues of the company.
The EMS of the individual installation is periodically audited by Corporate/Sectoral HSE and reviewed by top management for continual improvement.
To tackle emergency and disastrous situation, Emergency Response Plan has been prepared at Installation level and there is Disaster Management Plan at Asset level.
Mock drills are conducted regularly for different emergency situations for enhancing effectiveness of response plan.
ONGC has adequate resources to handle oil spills upto 700 Tons. For combating oil spills of higher magnitude ONGC has obtained membership of International agency i.e M/S OSRL, UK The membership is continually renewed annually to cover our offshore operations from the threat of major oil spill. ONGC is also joining the pool of oil companies to set up Tier-I facility at Mumbai Port Trust for combating oil pollution.
As an innovative solution, bio-remediation technology has been extensively and effectively used for treating oil contaminated soil within installations. ONGC has associated with TERI for implementation of this technology and Oil Zappers technology developed by them has been applied for bio-remediation oil contaminated soil and oily sludge.
ONGC has demonstrated its commitment for environmental protection by undertaking extensive mangrove plantation for marine environment protection in Gandhar area of Gujarat. Mangroves in itself are an ecosystem and harbour numerous species and also serve as breeding place for marine organisms.
At present Fire Suppression System in offshore platforms is based on utilizing halon which is considered to be a risk to ozone layer. In accordance with International guidelines and GoI’s commitment, ONGC has initiated phasing out Halon Fire Suppression system by 2010 and replacing it with environmental friendly substitute.
ONGC, keeping up with its commitment to promote and develop renewable energy resources, and producing 50 MW of energy through wind energy at Kutch, Gujarat. ONGC is the first PSU to initiate a renewable energy project of this magnitude.
In addition to plantation in ONGC operational areas extensive tree plantation job has been entrusted to Uttranchal Bamboo and Fiber Development Board (UBFDB), an autonomous body of State Government of Uttrakhand, in ecosensitive areas of Upper Himalaya complementing the objective of National Action Plan of Govt. of India. 3,00,000 ringal plants have been planted in 120 ha area of upper Himalayan region.
FINANCIAL HIGHLIGHTSONGC Performance Graphs
