It gives me great pleasure to present, on behalf of the Board of
Directors of your Company, the 22nd Annual Report on the business and
operations of Oil And Natural Gas Corporation Ltd. (ONGC) and its
Audited Statements of Accounts for the year ended March 31, 2015,
together with the Auditors'' Report and Comments on the Accounts by the
Comptroller and Auditor General (CAG) of India.
Your Company along with its group companies has registered yet another
year of sustained performance. Exploration and production of crude oil
and gas, our core business, set various milestones during the year.
Besides that performance in the areas where ONGC has engaged
substantially also witnessed success with positive contributions.
ONGC has steadfastly focussed on organic growth through its exploratory
endeavours and build a healthy reserve profile for the future. During
FY''15, the Company registered Reserve Replacement Ratio (RRR) of 1.38
(with 2P reserves) with 22 oil and gas discoveries in various basins of
the country. This has been possible because of extensive exploration in
known basins as well as frontier plays. Domestic crude oil and natural
gas production of ONGC along with its share in the domestic joint
ventures (PSC-JVs) during FY''15 has been 49.46 million metric tonnes of
oil and oil equivalent gas (MMtoe) which is about 2.7% lower than FY''14
production (50.84 MMtoe). On standalone basis crude oil production from
ONGC operated fields has been 22.26 million metric tonnes (MMT) against
production of 22.25 MMT during FY''14. This goes to the credit of your
Company that production decline could be arrested due to prudent
reservoir management practices adopted in the matured fields and
bringing new fields on stream.
Major Highlights: FY''2014-15
Salient highlights with respect to performance of your Company during
FY''2014-15 are as below:
* 22 oil & gas discoveries in domestic acreages with accretion of 61.05
MMToe of 2P reserves.
* RRR (2P) for FY''2014-15 was 1.38; in excess of One consecutively for
* Despite natural decline in matured fields, crude oil production from
domestic fields maintained at 25.94 MMT Major upside in production was
registered from the Western offshore fields with incremental oil gain
* New and marginal fields contributed about 12.3% of crude oil (2.74
MMT out of 22.26 MMT from domestic operated fields) and 15.2% of
natural gas production (3.35 BCM out of 22.02 BCM from domestic
operated fields). 34.5% of crude oil production was contributed by the
IOR/EOR and redevelopment schemes.
* The gross revenue from operations during FY''2014-15 has been Rs.
830,935 million; 1.3% lower than FY''14.
* Rs. 362,996 million contribution towards sharing the under-
recoveries of OMCs during FY''2014-15 impacting ONGC''s Profit Before Tax
(PBT) by Rs. 309,596 million and Profit After Tax (PAT) by Rs. 204,370
million. Despite this Net Profit has been Rs. 177,330 million; 19.7%
lower than the profit during previous year FY''2013-14.
* Hon''ble Prime Minister Mr. Narendra Modi dedicated the 2nd unit of
OTPC Power Plant at Palatana, Tripura, to the Nation on December
1,2014. The 726.6 MW gas-based power plant of ONGC Tripura Power
Company is the biggest project in North East part of India in terms of
investment in E&P, gas and power transmission. It is also credited as
the largest Clean Development Mechanism (CDM) projects of the world.
* Your Company decided to invest Rs. 249,000 million in five major
projects in estern Offshore for sustaining crude oil and gas
* HRD process platform of ONGC was installed successfully on January
15, 2015 using the state-of-the- art Float-Over technology. This is the
first such endeavour in the history of ONGC, where installation of an
add-on platform with the existing operational platform has been
* The operationalization of FPSO at Cluster-7 project on February 26,
2015 resulted in doubling the crude oil production from around 7,500
barrels per day (bpd) to around 15,000 bpd.
* ONGC Videsh Ltd. (100% subsidiary of your Company) registered 8.87
Mmtoe of O OEG production during FY''2014-15 against 8.36 Mmtoe during
FY''2013-14. Production upside primarily came from BC-10 field in
Brazil, blocks in Myanmar and the Sakhalin project in Russia.
* Despite higher production, ONGC Videsh''s Revenue during FY''2014-15
has been down by 14% due to lower oil prices globally. PAT has been
down by 57% due to lower oil prices, exchange losses, higher financing
cost and higher depletion charges.
* During the year ONGC Videsh made a maiden venture in New Zealand with
Offshore: 10; Onshore: 12
New Prospects: 10; New Pool: 12
NELP Blocks: 7; Nomination blocks: 15
* MRPL commissioned all the units under Phase-III refinery expansion
project during the year and registered the highest-ever thru-put of
* Turnover of MRPL for the year was down by 17% due to lower products''
prices and it registered a net loss of Rs. 11,700 million against Net
profit of Rs. 6,010 million in FY''2013-14 due to exchange and inventory
Besides excellence in core operational activities your Company
positioned itself as a valuable corporate citizen through its mapped
defined actions towards inclusive growth of the Society/Community and
green initiatives as per the commitment and our performance was
globally recognized. ONGC was ranked at 183rd position among 2000 top
global companies in Forbes Global 2000 list published in May''2015. In
the global oil and gas operation industry, ONGC has moved up three
places to occupy the 18th position. ONGC has been ranked as the Top
energy company in India, in the coveted Platt''s Top 250 Global Energy
Company Rankings 2014. ONGC improved upon its global ranking by a notch
to be positioned 21st among the global energy majors. ONGC has also
maintained its position as the 3rd largest Exploration and Production
(E&P) company in the world. In the latest Newsweek Green Rankings, the
world''s most recognized assessment of corporate environmental
performance, ONGC has made a quantum leap to be ranked 217 globally (it
was positioned 386th in 2012 Green rankings). The company now stands
third amongst only seven Indian companies named in the prestigious
Performance 2014-15 Exploration
During the year 2014-15, ONGC has made 22 Oil and gas discoveries in
domestic acreages (operated by ONGC). Out of 22, 10 discoveries are in
Offshore and 12 in Onshore; 10 discoveries were made in the new
prospects whereas 12 were new pool discoveries. 7 discoveries were made
in NELP blocks and 15 in nomination blocks.
Two discoveries (Rudrasagar-184 & Gandhar-699) during 2014-15 in
nomination blocks have already been put on production and efforts are on
for bringing the other discoveries on production as early as possible. 7
discoveries in NELP blocks (5 Onland, 2 Offshore) are governed by the
PSC guidelines and appraisal/ development activities will be taken up
keeping in view the timelines of the respective blocks. In addition to
these discoveries, exploratory wells conclusively tested and proved to
be hydrocarbon bearing will help in field growth of existing fields.
Details of the discoveries are as under:
Sr. Well No. Basin/ Type of
1 Tukbai-3A (TK-3A) AAFB-Cachar Gas
2 Rupal-2* Oil
3 Vadatal-10 (VDAH)* Cambay Oil
4 Vadatal-11* Oil
5 Thirunagari / Thirunagari-1* Cauvery(On) Gas
6 South Pasarlapudi-1 KG(On) Oil & Gas
7 YS-9-1 (Shift) KG(S) Gas
8 GD-11 / GD-11-1 KG(DW) Gas
9 GKS092NAA-1* Kutch Gas
10 GKS091NDA-1* Offshore Gas
11 C-1-7 Mumbai Oil & Gas
12 C-1-8 Offshore Oil & Gas
13 Rudrasagar / Rudrasagar-184 Oil
14 Khoraghat-35 A&AA (Assam) Gas & Cond.
15 Khoraghat-37 Gas
16 Gandhar-699 Cambay Oil
17 Madanam / Madanam-6* Cauvery Onshore Oil & Gas
18 Damoh / Damoh-4 Vindhyan Gas
19 GS-29-10 (AJ) KG (SW) Oil & Gas
20 G-1-NE-1 KG (S) Oil & Gas
21 G-1-NE-2 KG (S) Gas & Cond.
22 WO-5 / WO-5-11 Mumbai Offshore Oil & Gas
Sr. Well No. Type of discovery
1 Tukbai-3A (TK-3A) New Prospect
2 Rupal-2* New Prospect
3 Vadatal-10 (VDAH)* New Prospect
4 Vadatal-11* New Prospect
5 Thirunagari / Thirunagari-1* New Prospect
6 South Pasarlapudi-1 New Prospect
7 YS-9-1 (Shift) New Prospect
8 GD-11 / GD-11-1 New Prospect
9 GKS092NAA-1* New Prospect
10 GKS091NDA-1* New Prospect
11 C-1-7 New Pool
12 C-1-8 New Pool
13 Rudrasagar / Rudrasagar-184 New Pool
14 Khoraghat-35 New Pool
15 Khoraghat-37 New Pool
16 Gandhar-699 New Pool
17 Madanam / Madanam-6* New Pool
18 Damoh / Damoh-4 New Pool
19 GS-29-10 (AJ) New Pool
20 G-1-NE-1 New Pool
21 G-1-NE-2 New Pool
22 WO-5 / WO-5-11 New Pool
* In NELP blocks
Details of the discoveries in NELP blocks (since inception till
Out of the 114 NELP blocks awarded to/ acquired by ONGC as operator,
currently ONGC is operating in 49 blocks, balance 65 blocks have been
relinquished. Exploration/ appraisal programme is underway in all the
active blocks. A total of 47 discoveries as on date (16 in deep-water,
13 in shallow water and 18 in onland) have been made by ONGC in 22 of
these NELP blocks (6 deep-water, 6 shallow water & 10 onland).
Commencement of production from these discoveries is governed by
stipulations laid down in the respective PSCs and is to be taken up
after successful completion of appraisal programme followed by
submission of DOC and approval of Field Development Plan. ONGC has put
three NELP Blocks on Commercial Production:
a. NELP Block CB-ONN-2004/1 (Karannagar)
Onshore NELP Block CB-ONN-2004/1 (Karannagar) located in Ahmedabad was
put on commercial production on 24.03.2015 within 24 hours of getting
the Mining Lease. This NELP block was awarded to consortium of ONGC and
GSPC in VI round of NELP bidding in 2007. ONGC is the operator of block
with 60% participatory interest.
b. NELP block CB-ONN-2004/2 (Vadatal)
Vadatal-1 in the NELP block CB-ONN-2004/2 (Vadatal) was put on
production on March 26, 2015. The NELP block CB-ONN-2004/2 was awarded
to a consortium of ONGC and GSPC in VI round of NELP bidding in 2007.
ONGC is the operator of the block (PI: 55%) with partner GSPC (PI: 45
c. NELP block CB-ONN-2002/1 (West Patan)
West Patan #3 well in the NELP block CB-ONN-2002/1 (West Patan) was put
on commercial production on 31.03.15 on the same day of getting the
Mining Lease from the Govt. of Gujarat. The block CB-ONN-2002/1,
covering 135 sq. km and falls in the northern part of the Cambay Basin
and is located west of Patan town in North Gujarat.
Reserve accretion & Reserve Replacement Ratio (RRR)
Continuing exploration in challenging and frontier areas, your company
has accreted 215.65 million metric tonnes of oil equivalent (MMtoe) of
In-place volume of hydrocarbon in the domestic basins (operated by
ONGC). As on 01.04.2015, in-place hydrocarbon volume of ONGC as a group
stands at 9,283.84 MMtoe; up 4.2% from FY''2013-14 figure of 8,912.81
MMtoe. The ultimate reserves (3P) accretion in domestic area (ONGC
operated) during FY''2014-15 has been 70.98 MMtoe and 2P reserve
accretion has been 61.06 MMtoe. Total reserve accretion during 2014-15
in domestic basins including ONGC''s share in PSC JVs stands at 60.03
MMtoe. Voluntary disclosures in respect of Oil & Gas Reserves,
conforming to SPE classification 1994 and US Financial Accounting
Standards Board (FASB-69) have been made by your Company.
The following table gives the details of reserve accretion (2P) for the
last 5 years in domestic basins as well as from the overseas assets:
Ultimate Reserve (2P) accretion O OEG (in MMToe)
Year Domestic ONGC''s share in Total
Assets Domestic JVs Domestic
(1) (2) (3) = (1) (2)
2010- 11 63.09 0.29 63.38
2011- 12 58.67 1.43 60.1
2012- 13 67.59 4.23 71.82
2013- 14 56.26 4.29 60.55
2014- 15 61.06 -1.03 60.03
Ultimate Reserve (2P) accretion O OEG (in MMToe)
Year ONGC VIDESH''s Total
Foreign Asset (5)=(3) (4)
2010- 11 54.2 117.58
2011- 12 -0.06 60.04
2012- 13 10.09 81.91
2013- 14 213.24 273.79
2014- 15 20.03 80.06
Note: Reserve accretion reported in terms of 2P reserves
Statement of Reserve Recognition Accounting (RRA)
Reserve Recognition Accounting 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 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
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 reserve 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
reserve at Annexure-A'' to this report as statement of Reserve
Recognition Accounting (RRA).
Oil & Gas production
During FY ''15, your Company retained its position as the largest
producer of oil and gas in the country and contributed 69 per cent of
oil and 70 per cent of natural gas production of the country from its
domestic operations. On standalone basis, in FY''15 ONGC''s domestic crude
oil production registered 22.26 MMt against 22.25 MMt in FY''14,
reversing the production decline in domestic fields. The major
contribution came from Western Offshore, which produced 4.3 per cent
more than the production during last year. Details of crude oil and
natural gas production from domestic basins along with that of Value
Added Products (VAP) are as below:
Unit Production Qty ales Qty
FY''15 FY''14 FY''15 FY''14
Crude Oil (MMT) 25.94 25.99 24.11 23.61
Natural Gas (BCM) 23.52 24.85 17.98 19.63
Ethane/Propane 000 MT 339 430 337 428
LPG 000 MT 1,095 1,067 1,090 1,073
Naphtha 000 MT 1,155 1,358 1,124 1,379
SKO 000 MT 72 84 74 85
Motor Spirit 000 KL 0.53 0.54
HSD 000 KL 0.39 0.05
(Rs. in million)
Crude Oil 536,638 25,734
Natural Gas 187,381 83,291
Ethane/Propane 10,064 14,837
LPG 34,380 30,145
Naphtha 50,835 75,743
SKO 2,771 2,779
Others 1,359 2,124
Sub Total 823,428 34,653
Motor Spirit 38 41
HSD 22 3
Sub Total 60 44
Total 823,488 834,697
Oil & Gas production of ONGC Group, including PSC-JVs and from overseas
Assets for FY''15 has been 58.33 MMtoe (against 59.21 MMtoe during
Out of the total production of 31.47 MMT of crude oil, 70.8 per cent
production came from ONGC operated domestic fields, 17.5 per cent from
the overseas assets and balance 11.7 per cent from domestic joint
ventures. As far as natural gas production is concerned, majority of
production (82 per cent) came from ONGC operated domestic fields, 12.4
per cent from overseas assets and 5.6 per cent from domestic joint
Production from overseas assets
ONGC Videsh, has thirteen (13) producing assets in ten countries -
Venezuela (1), Brazil (1), Colombia (1), Sudan (1), South Sudan (2),
Syria (1), Vietnam (1), Mayanmar (2), Russia (2) and Azerbaijan (1).
Total production from these overseas assets during FY''15 has been 8.87
MMtoe of O OEG (Crude oil: 5.53 MMT & Gas: 3.34 BCM).
Ajerbaijan has contributed 12% as compared to around 0.1% last year.
Resumption of operations in South Sudan & Sudan has also contributed to
this year''s increased volume contributing 13.2% this year as compared to
8.2% last year. Russia & Vietnam continued to be the biggest contributor
to overseas production volume with 29.4% and 23% respectively.
Unconventional sources of energy
ONGC plans to continue its endeavor for exploration and development of
Unconventional & other resources like Shale Gas, CBM, etc. ONGC has
prioritized suitable actions for exploration and exploitation of
Non-Conventional and Alternate Sources of energy which has the
potential to change the energy business landscape in the country as it
is happening in the other parts of the world. The initiatives by ONGC
in these areas are summarized below;
a. Shale Gas
ONGC has the distinction of establishing the first flow of shale gas in
the country on 25th January, 2011 from RNSG#1 well (R&D Pilot Project,
ONGC has chalked out plan of drilling of pilot shale gas and oil wells
in most of the identified blocks in Cambay,Krishna-Godavari,Cauvery and
Assam &Assam-Arakan Basins. During October, 2013 Government of India
brought out shale gas policy which allows National Oil Companies viz.
ONGC and OIL to initiate shale gas and oil assessment activities in
their allocated nomination blocks in phased manner. As per the new
Policy, 50 nomination PML blocks have been identified in four Basins -
28 PMLs in Cambay, 3 PMLs in A&AA, 10 PMLs in Krishna-Godavari and 9
PMLs in Cauvery basins for Shale Gas assessment within three year period
of Phase-I. A total of 57 pilot/assessment wells are to be drilled by
During 2014-15, ONGC has drilled five exploratory wells for shale gas
exploration (4 dual and 1 exclusive) in Cambay, Cauvery,
Krishna-Godavari and Assam- Arakan Basins and samples have been
collected for assessment of Shale Gas potential. Most of the studies in
wells drilled last year have been completed and the integration/
assessment exercise is in progress. Based on the review of data
collected in wells JMSGA and GNSGA, prospective intervals have been
identified in Cambay Shale which are planned to be hydro- fractured
shortly. Presently, 2 Shale gas wells (GNSGB & GNSGC, Cambay Basin) and
1conventional well with dual objective (WPGAA,KG Basin) are under
b. Coal Bed Methane (CBM)
Of the total thirty-three CBM Blocks awarded by GOI to various
operators through four rounds of bidding and nomination, ONGC was
awarded nine CBM blocks. Due to poor CBM potential, concluded on the
basis of the 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 been relinquished.
Currently, ONGC is operating four CBM Blocks i.e., Jharia, Bokaro, North
Karanpura (Jharkhand) and Raniganj (West Bengal),FDP of which has been
approved. Nearly 400 wells and 2000 hydro-fracturing jobs have to be
carried out in the coming 4-5 years as per timelines of the CBM
Contract. In view of the mammoth and time bound task, ONGC is in the
process of farming out its participative interest (PI) to experienced
CBM players through formation of JV. Farm out Agreement (FoA) for North
Karanpura Block has been signed on October 7, 2014 with M/s Prabha
Energy Pvt. Ltd (PEPL) with assignment of 25% PI from ONGC''s share.
Documents have been submitted to DGH for Government''s approval of PI
assignment. Joint Venture for farming out in Bokaro Block is being
negotiated. Further, offers for formation of Joint Venture for Jharia
and Raniganj blocks are being invited.
Sale of incidentally CBM gas from existing wells at Parbatpur of Jharia
block is continuing and as on April 1, 2015 cumulative gas supply has
been 13,875,102 SCM.
c. Underground Coal Gasification (UCG)
ONGC with GIPCL selected Vastan Mine block site in Gujarat as an R&D
project to establish UCG technology. All the ground work and inputs
for construction and implementation of UCG Pilot Project at Vastan, has
been completed and further development is awaiting award of Mining
Lease by Ministry of Coal (MoC), GoI.
Further, a number of sites have been jointly identified by ONGC &
Neyveli Lignite Corporation Limited (NLC) for studying their
suitability to UCG. These are Tadkeshwar in Gujarat and Hodu-Sindhari &
East Kurla in Rajasthan. One more site was jointly identified by ONGC &
GMDC viz. Surkha in Bhavnagar district, Gujarat. The data of all the
fields have already been analyzed for evaluating the suitability of
these sites for UCG. All the sites have been found suitable for UCG
Oil & Gas Projects
In recent years your Company took up 15 projects for development of 39
new/marginal oil and gas fields with an investment of Rs. 386,024
million. Out of these 15 projects, 11 projects have already been
completed. Production from development of G-1 & GS-15 fields has
already commenced. Rest three projects, Development of WO-16 Cluster,
C-26 Cluster and B-127 Cluster, are under implementation and are
expected to be completed in FY''17. Further, Improved Oil Recovery
(IOR), Enhanced Oil Recovery (EOR) and redevelopment projects were also
taken up by your Company for prudent reservoir management and arresting
decline from matured fields. 21 of 26 such projects have so far been
completed. Two projects i.e., Heera & South Heera Redevelopment
Project and Development of Western Periphery of Mumbai High South
project is likely to be completed by Mid FY''16 and the remaining three
projects i.e., Redevelopment of Mumbai High North Phase-III,
Redevelopment of Mumbai High South Phase-III and Additional
development of Vasai East will be completed by the year 2017-18.
Details about the projects completed during the year 2014-15, new
projects taken up are given as below:
Oil and Gas projects completed during FY''2014-15
The following eight major field development and other projects were
completed during the year 2014-15:
Sl. Name of Projects Completion/ Total
No Commencement Investment
of production Rs. million
1 Development of SB-14 April, 2014 4,104
2 MHN Redevelopment Phase-II June, 2014 71,334
3 MHS Redevelopment Phase-II June, 2014 88,134
4 Development of B-46 June, 2014 14,570
5 Fire Water Network at Uran July, 2014 1,717
6 Development of C July, 2014 36,904
Series fields (C-24 Cluster)
7 Development of B-22 July, 2014 29,208
8 Additional Development July, 2014 23,316
of NBP (D-1) field
Sl. Name of Projects
No Envisaged oil & gas gain
1 Development of SB-14 0.197 MMm3 of condensate & 1.641
BCM of gas in its project life of
2 MHN Redevelopment Phase-II 17.354 MMT of oil and 2.987 of
gas BCM respectively by 2029-30
3 MHS Redevelopment Phase-II 18.31 MMT of oil and 2.70 BCM of
gas by 2029-2030
4 Development of B-46 5.273 BCM of gas & 1.68 MMm3 of
Cluster Fields condensate in its project life of
5 Fire Water Network at Uran For safe operations
6 Development of C 10.771 BCM of gas and 2.166 MMT
Series fields (C-24 Cluster) of condensate by 2024-25
7 Development of B-22 2.46 MMT of oil, 1.13 MMT of
Cluster fields condensate and 6.56 BCM of gas by
8 Additional Development 8.296 MMT of oil by 2024-25
of NBP (D-1) field
Projects brought to production in FY''2014-15
Production commenced from following six projects during the year
Sl. Fields Project Date of
1. SB-14 Development of 7th April, 2014
2. BHE Development of BHE & 4th April, 2014
3. WO-24 Development of 10th June, 2014
4. B-193 Development of B -193 26th May, 2015
5. B-178 Development of B -193 25th May, 2015
6. B-179 Development of B -193 24th May, 2015
Sl. Name of Projects Approved Cost Incremental Oil
No (Rs. million) & Gas gain
1 MHN Redevelopment 58,133 6.997 MMT of Oil
Phase-III and 5.253 BCM of
gas by the year
2 MHS Redevelopment 60,688 7.547 MMT of oil
Phase-III and 3.864 BCM of
gas by the year
3 Additional Development 24,768 1.827 MMT of Oil
of Vasai and 1.971 BCM of
gas by the year
4 Integrated Development 60,861 5.01 MMm3 of
of Daman condensate and
27.67 BCM of gas
by the year
5 Enhanced Recovery from 46,199 19.36 BCM of gas
Bassein field through 1.97 Mm3 of
Integrated Development condensational,
of Mukta, Bassein & Panna 0.183 mmt of oil
6 Pipeline replacement 28,999
1. Financial Results
Despite volatile markets and sharing under-recoveries of Rs. 362,996
million during the year 2014-15, your Company has earned a Profit After
Tax (PAT) of Rs.177,330 million, down 19.74% over FY 2013-14 (Rs.
220,948 million). During 2014-15, your Company registered Gross revenue
of Rs. 830,935 million, down 1.32 % over 2013-14 (Rs. 842,028 million).
* Gross Revenue : Rs. 830,935 million
* Profit After Tax : Rs. 177,330 million
* Contribution to Exchequer : Rs. 421,074 million
* Return on Capital Employed : 33.2 %
* Debt-Equity Ratio : 0.0096 :1
* Earnings Per Share (Rs.) : 20.73
* Book Value Per Share (Rs.) : 168
Particulars 2014-15 2013-14
Revenue from operations 830,935 842,028
Other Income 53,666 67,132
Total Revenues 884,601 909,160
Profit Before Interest,
Depreciation & Tax (PBIDT) 380,163 433,582
Profit Before Tax (PBT) 265,552 324,319
Profit After Tax (PAT) 177,330 220,948
Interim Dividend 77,000 79,138
Proposed Final Dividend 4,278 2,139
Tax on Dividend 16,256 13,807
Transfer to General Reserve 79,796 125,864
TOTAL 177,330 220,948
The decrease in Profit during FY 14 -15 as compared to FY 13-14 is
mainly due to higher exploratory wells written off and reduction in
quantity sold as well as lower price realization of value added
Pursuant to first proviso to sub-section (3) of Section 129 read with
Rule 5 of 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 forms
part of the Financial Statements.
Your Company paid interim dividend of Rs. 9.00 per share (180 per cent)
in two phases(''5.00 and Rs. 4.00). The Board of Directors has
recommended a final dividend of Rs. 0.50 per share(10 per cent) making
the aggregate dividend at Rs. 9.50 per share (190 per cent) for FY
14-15 i.e. same as compared to dividend for the year 2013-14. The total
dividend will be Rs. 81,278 million, besides Rs. 16,256 million as tax
on dividend amounting to 55% of PAT
3. Management Discussion and Analysis Report
As per the terms of Clause 49VIIID of the Listing Agreement with the
Stock Exchanges, the Management Discussion and Analysis Report (MDAR)
has been included and forms part of the Annual Report of the Company.
4. Financial Accounting
The Financial Statements have been prepared in accordance with the
Generally Accepted Accounting Principles (GAAP) and in compliance with
all applicable Accounting Standards and Successful Efforts Method of
accounting as per the Revised Guidance Note on Accounting for Oil & Gas
Producing Activities issued by The Institute of Chartered Accountants of
India (ICAI) effective from 01.04.2013 and provisions of the Companies
Act, 2013. Further, as per Ministry of Corporate Affairs (MCA)
notification, the financial statements have been prepared under the
Schedule III format of the Companies Act, 2013.
Loans, Guarantees or Investments
ONGC is engaged in Exploration & Production 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 is 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 in the form AOC-2 form
part of Board''s Report and placed at Annexure-B.
I ONGC Videsh Limited (ONGC Videsh)
Videsh, the wholly-owned subsidiary of your Company for E&P activities
outside India, has participation in 36 projects in 17 countries viz.,
Azerbaijan, Bangladesh, Brazil, Colombia, Iran, Iraq, Kazakhstan,
Libya, Mozambique, Myanmar, New Zealand, Russia, South Sudan, Sudan,
Syria, Venezuela and Vietnam. Out of 36 projects, 13 are producing, 4
are discovered/ under development, 17 are exploratory and remaining 2
are pipeline projects.
ONGC Videsh is currently producing about 167 thousand barrels of oil
and oil equivalent gas per day and has total oil and gas (2P) reserves
of about 612 MMtoe as on 31st March 2015. During FY''15, there is an
increase in oil and gas production by 6.19% (Oil 0.86% and Gas 16.37%)
as compared to previous fiscal year. The incremental production is
primarily due to better management of fields and addition in the
ONGC Videsh''s share in production of oil and oil equivalent gas
(O OEG), together with its wholly-owned subsidiaries, ONGC Nile Ganga
B.V, ONGC Amazon Alaknanda Limited, Imperial Energy Limited and
Carabobo One AB, was 8.874 MMtoe during FY15 as compared to 8.357 MMtoe
during FY 14. The oil production increased from 5.486 MMT during FY''14
to 5.533 MMT during FY''15 (0.86% higher) primarily due to increased
share of additional 12% PI in Block BC-10, Brazil.
During FY''15, the company has earned profit after tax of Rs. 19,042
million, a decrease of 57% as compared to FY''14. Despite higher
production during FY''15, the decrease in profit is mainly due tolower
oil prices, higher financing cost including exchange loss, higher
depletion charge, and impairment provision in one of the assets.
(A) Significant Acquisitions, Alliances and Operations highlights of
ONGC Videshduring FY''15 are as follows:
a) Block PEP 57090, New Zealand: ONGC Videsh was awarded an exploration
permit PEP 57090 in the Taranaki offshore basin by Government of New
Zealand on 9th December, 2014. ONGC Videsh has now started operations
in Pacific Region.
b) During FY''15, ONGC Videsh has signed the following MoUs:
(i) MoU with ROSNEFT was executed on 24th May, 2014 for cooperation in
subsurface surveys, exploration and appraisal activities and
hydrocarbon production in Russia''s offshore Arctic.
(ii) MoU with TPAO (the Turkish Petroleum Company) was executed on 18th
June 2014 for working together for E&P activities in Turkey, joint
participation in bidding for opportunities including exploration bid
rounds in third countries and pursuit of hydrocarbon opportunities
related research and development activities.
(iii) MoU with YPF S.A. Argentina was executed on 1st September, 2014
for working to explore possibility of cooperation in the areas of
Unconventional and Conventional Hydrocarbon Assets in Argentina, E&P
activities in India and in third countries, research & development
activities and human resources development.
(iv) Lol with Petro Vietnam was executed on 15th September, 2014, for
expansion of exploration activities by ONGC Videsh in Vietnam by
considering participation in 2-3 additional blocks subject to technical
and commercial viability and requisite approvals.
(v) MoU with Pemex-Exploracion Y Production (PEP) was executed on 25th
September, 2014, for cooperation in the hydrocarbon sector in the fields
of technology, human resources, research & development.
(vi) MoU with Mubadala Petroleum, UAE was executed on 29th September,
2014, for collaboration in potential upstream oil & gas exploration,
development and producing projects and LNG opportunities.
(vii) HoA with PVEP was executed on 28th October, 2014, for mutual
cooperation and participation in Blocks 102/10 & 106/10 of PVEP and
Block 128 of ONGC Videsh in offshore Vietnam subject to due diligence
and negotiations on the terms of participation.
i. In Sakhalin-1 Project, the topside of Berkut-world''s biggest
offshore platform in Arkutun-Dagi field, was successfully floated over
from South Korea to Russia and installed on 20th June, 2014 with
production commencing from 5th January, 2015.
ii. Gas Export Pipeline Remediation project in Block BC-10, Brazil was
successfully commissioned on 1st November, 2014 leading to gas export
about 0.27 MMSCMD.
iii. In A-1/A3 Project, Myanmar, plateau gas production rate of 14.2
MMSCMD was achieved on 2nd December, 2014.
iv. Oil production from Petro Carabobo, Venezuela, crossed 16,000 BOPD
on 16th March, 2015 with average oil production of 9,775 BOPD during
FY''15 as compared to 3,293 BOPD during FY''14.
v. First crude oil cargo of 1.2 million barrel of Petro Carabobowas
lifted by RIL on 25th May, 2014 from Venezuela.
vi. The ongoing geo-political situation in Syria including EU
sanctions and the resulting restrictions on contractors continue
adversely affecting Syrian operations since December, 2011.
vii. The operations in South Sudan projects are temporarily under
shutdown after internal conflicts and adverse security situation in the
country since 22nd December, 2013. The operations in South Sudan shall
resume once security situation improves.
Direct Subsidiaries of ONGC Videsh
i. ONGC Nile Ganga B.V. (ONGBV)
ONGBV, a subsidiary of ONGC Videsh, is engaged in E&P activities in
Sudan, South Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25
per cent Participating Interest (PI) in Greater Nile Oil Project (GNOP),
Sudan with its share of oil production of about 0.705 MMT during
2014-15. ONGBV also holds 25 per cent 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''15.
ONGBV holds 16.66 per cent to 18.75 per cent PI in four Production
Sharing Contracts in Al Furat Project (AFPC), Syria. Due to force
majeure condition in Syria, there was no production in AFPC project
during FY''15. ONGBV holds 40 per cent PI in San Cristobal Project in
Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San
Cristobal) BV with its share of oil production of about 0.645 MMT
during FY'' 15. ONGBV holds 27 per cent PI in BC-10 Project in Brazil
through its wholly owned subsidiary ONGC Campos Ltd. with its share of
oil and gas production of about 0.854 MMtoe during FY'' 15. It also
holds 25 percent 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 per cent PI in South East Asia Gas Pipeline Co. Ltd.,
(SeAGP) for Pipeline project, Myanmar through its wholly owned
subsidiary ONGC Caspian E&P B.V.
ii. ONGC Narmada Limited (ONL)
ONL has been retained for acquisition of future E&P projects in
iii 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''
15, ONGC Videsh''s share of oil production in MECL was about 0.626 MMT
iv. Imperial Energy Limited
Imperial Energy Limited, a wholly-owned subsidiary of ONGC Videsh
incorporated in Cyprus, has its main activities in the Tomsk region of
Western Siberia, Russia. During FY'' 15, Imperial Energy''s oil and gas
production was about 0.289 MMToe.
v. Carabobo One AB
Carabobo One AB, a subsidiary of ONGC Videsh incorporated in Sweden,
indirectly holds 11 per cent PI in Carabobo-1 Project, Venezuela.
During FY'' 15, Carabobo''s oil production was about 0.066 MMT
vi. ONGC (BTC) Limited :
ONGC (BTC) Limited holding 2.36 per cent interest in the
Baku-Tbilisi-Ceyhan Pipeline (BTC) owns and operates 1,768 km oil
pipeline running through Azerbaijan, Georgia and Turkey. The pipeline
mainly carries crude from the ACG fields from Azerbaijan to the
vii. Beas Rovuma Energy Mozambique Limited:
Beas Rovuma Energy Mozambique Limited was incorporated in British
Vergin Islands (BVI) and holding 6% PI in Rovuma Area 1, Mozambique.
viii. ONGC Videsh Atlantic Inc.:
ONGC Videsh Atlantic Inc. is incorporated in Texas, United States of
America, to work in co-ordination with Anadarko (Operator of Rovuma
Area 1, Mozambique) and to establish G&G centre etc.
ix. ONGC Videsh Rovuma Limited:
ONGC Videsh Rovuma Limited was incorporated in Mauritius for
structuring of 10% PI in ONGC Videsh''s Rovuma Area 1, Mozambique.
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, which is a single location 15 MMTPA Refinery on
the West coast.
Performance Highlights FY 2014-15
MRPL achieved the highest-ever thru''put of 14.65 MMT in FY 14-15
against 14.55 MMT in FY 13-14 .
MRPL exported 4.98 MMT of products against 6.72 MMT in the previous
year. The exports were low compared to the previous year due to the
commissioning of Delayed Coker Unit and increased domestic sale of
Kerosene and HSD .
Crude sourcing (Receipts): 14.35 MMT; Iran (34.83 per cent), Saudi
Arabia (19.67 per cent), ADNOC (12.12 per cent), Kuwait (15.12 per
cent), Basrah Light (0.8 percent) Mumbai High (5.03 per cent), Ravva
and KG basin (3.50 per cent) Sonangol (3.81 percent) Spot (5.12 per
Marketing and Retail Operations
MRPL continues to expand its market spread in the direct sales segment
of petroleum products in the state of Karnataka and its adjoining
states. MRPL has significant market share and direct customer relations
for products such as Bitumen, Fuel Oil, Sulphur, Diesel, Petcoke and
Mixed Xylene in its refinery zone. The total sales volume of direct
marketing products during the FY 2014-15 was 820 TMT with a sales value
of Rs. 22,970 million compared to volume of 507 TMT and sales value of
Rs. 25,890 million in the previous FY 2013-14.
Phase III - Brownfield expansion Project
All the units of MRPLs Phase III up-gradation and expansion project
have been commissioned . The Polypropylene unit was inaugurated by
Hon''ble Minister (I/C) P&NG on 05-04-2015.
Acquisition of controlling stake in OMPL
MRPL has increased its stake in OMPL to 51 % by subscribing to the
right issue made by OMPL Subsequently OMPL has become subsidiary of
MRPL and a Government company under Companies Act, 2013.
6. Annual Report of Subsidiaries and Consolidated Financial Statement
In accordance with Section 134 of the Companies Act, 2013 and the
Accounting Standard (As)-21 on Consolidated Financial Statements read
with AS-23 on Accounting for Investments in Associates and AS- 27 on
Financial Reporting of Interests in Joint Ventures, audited
Consolidated Financial Statements for the year ended 31st March, 2015
of the Company and its subsidiaries form part of the Annual Report.
Full Annual Report of subsidiaries of ONGC will be made available to
any shareholder, if he/she desires, 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
7. Joint Ventures/ Associates
i. ONGC Petro-additions Limited (OPaL)
ONGC Petro-additions Limited (OPaL), has been promoted by your company
asa Joint Venture (JV) Company, with envisaged equity stake of 26%
along with GAIL (15.5%). gSpC also has a token presence in OPaL.
The balance equity of 58.5% is to be tied up with Strategic Partners/
FIs / IPO.
OPaL is a mega petrochemical project at Dahej SEZ for utilizing
in-house production of C2-C3 and Naphtha from various units of ONGC.
* Overall Cumulative progress is 95 %.
* Total cumulative expenditure as on 31st March 2015 is Rs. 213,110
million. Approved project cost is Rs. 270,110 million.
* Debt closure has been attained for approved project cost of Rs.
270,110 million with the execution of Rupee Term Loan agreement.
* Phase-wise commissioning of the complex has commenced with stabilized
operations envisaged in Q3 2015-16.
ii. ONGC Tripura Power Company Ltd (OTPC)
Your Company has promoted OTPC with an envisaged 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
OTPC has set up a 726.6 MW (2 X 363.3 MW) gas based Combined Cycle Power
Plant (CCCP) at Palatana, Tripura. The basic objective of the project is
to monetize idle gas assets of ONGC in land-locked Tripura state and to
boost exploratory efforts in the region.
* OTPC''s first unit (Unit-1) was dedicated to the Nation by the Hon''ble
President of India on 21stJune, 2013 and its commercial operation was
achieved on 4thJanuary 2014 in presence of representatives of
beneficiary states. The second unit was dedicated to nation by Hon''ble
Prime Minister of India on 1st December, 2014 and its commercial
operation was achieved on 24th March, 2015.
The Plant has been granted provisional tariff by Central Electricity
Regulatory Commission (CERC). The Ministry of Power has allocated more
than 86% of power from the project (two units) to the NER beneficiary
states while 98 MW is allocated to OTPC for merchant sales. The OTPC
has signed a gas sale and purchase agreement (GSPA) with ONGC for
supplying Daily contracted Quantity of 2.65 MMSCMD of gas.
* The 663 KM long 400 KV double circuit transmission network
Palatana-Bongaigaon transmission has been commissioned up to Bongaigaon
by North-East Transmission Company Limited (NETCL), a joint venture of
Power Grid Corporation, OTPC and Governments of the North-Eastern
states. This development is helping in evacuating power from both
* The total expenditure incurred on the project till 31st March, 2015
is Rs. 37511 million against the total estimated cost of Rs.
iii. ONGC Mangalore Petrochemicals Limited (OMPL)
Your company has promoted OMPL 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 as value chain integration project of
ONGC. The total project cost is about Rs. 68,750 million and commenced
commercial operation from 1st October, 2014. 2,59,618 MT of Para-xylene
and 61,788 MT of Benzene, have since been exported in the financial
year, as the production is being ramped up. After successful
commissioning of OMPL in October, 2014, MRPL has increased its equity
from 3% to 51.002% in February, 2015 with balance 48.998% held by ONGC
and thus OmPL has become a subsidiary of MRPL.
iv. Dahej SEZ Ltd (DSL)
Your company as Lead Promoter has developed a multi-product SEZ at Dahej
in coastal Gujarat .Your Company is setting up C2-C3 Extraction Plant on
its own and value-chain integration project - OPaL through JV route in
this SEZ Area. Your company has 23% equity in the project with GIDC
having 26% and balance 51% is proposed to be tied up through IPO /
Strategic / Financial Investor.
* SEZ is already operational and units in SEZ have clocked export of
Rs. 19,740 million in FY 2013-14 and Rs. 21,050 million in FY 2014-15.
v. Mangalore Special Economic Zone Limited (MSEZ)
With an envisaged equity stake of 26% along with KIADB (23%), IL&FS
(50%), OMPL (0.96%) and KCCI (0.04%), ONGC has set up MSEZ to serve as
site for development of necessary infrastructure to facilitate and
locate ONGC/MRPLs Aromatic complex being promoted by ONGC.
Commercial Operation Date (COD) has been declared on 1st April, 2015.
vi. Petronet MHB Limited (PMHBL)
* PMHBL is a JV company wherein your company has an
equity stake of 28.7% along with HPCL (28.7%) and PIL (7.9%) with
balance 34.57per cent of equity being held by leading banks.
* PMHBL owns and operates a multi-product pipeline to transport MRPLs
products to the hinterland of Karnataka.
* In FY''15 PMHBL pipeline has achieved a throughput of 3.141MMT against
total throughput of 3.073 MMT last year. As per audited results for the
year 2014-15, the turnover and PAT of PMHBL are Rs. 1,071 million and
Rs. 341million respectively.
vii. ONGC TERI Biotech Limited (OTBL)
ONGC TERI Biotech Limited ( O T B L ) w h i c h w a s incorporated on
26th March, 2007 is a Joint-venture Company of ONGC in association with
The Energy Research Institute (TERI), with shareholding of 49.98% &
48.02%, respectively. Through the efforts of joint research of oNgC &
TERI over the years, OTBL is offering below mentioned technologies and
providing various Biotechnical Solutions to Oil and Gas Industry, both
in India and abroad:
OilzapperTechnology(Bioremediation)- used to eliminate & tackle Oil
Spills, Oily Sludge, and hazardous hydro carbon waste;
Paraffin Degrading Bacteria (PDB)- used to prevent Paraffin Deposition
in Oil well Tubing;
Wax Deposition Prevention (WDP)- used to prevent Paraffin Deposition in
surface and sub-surface flow lines; Microbial Enhanced Oil Recovery
(MeOR)- used for Enhanced Oil Recovery by mobilizing crude oil trapped
in pores of Oil Reservoirs.
During 2014-15 the turnover of OTBL was Rs. 180.0 Million with Profit
after Tax of Rs. 45.1 Million as against turnover of Rs. 141.0 Million
and Profit after Tax of Rs. 44.8 Million in the previous year.
viii. Petronet LNG Limited (PLL)
ONGC has 12.5 per cent equity stake in PLL, identical to stakes held by
other Oil PSU co-promoters viz., IOCL, GAIL and BPCL. Dahej LNG
terminal of PLL having a capacity of 10 MMTPA is currently meeting
nearly 20 per cent of the total gas demand of the country. Dahej LNG
Terminal is being further expanded from 10 MMTPA to 15 MMTPA. The
construction activities continue as planned and the project is expected
to be completed by end 2016.
A new LNG terminal of capacity 5 MMTPA has been set up at Kochi and has
already been dedicated to the Nation.
The Company is also planning to set up an LNG terminal of capacity 5
MMTPA at Gangavaram, Andhra Pradesh. The turnover of PLL during 2014-15
is Rs. 395,010 million and net profit is Rs. 8,825 million.
ix. Pawan Hans Limited (PHL)
ONGC has 49 per cent equity stake in PHL (previously known as Pawan Hans
Helicopters (A Government of India Enterprise) Limited). Balance 51 per
cent equity is held by the Government of India. PHL is one of Asia''s
largest helicopter operators having a well-balanced operational fleet of
46 helicopters. It provides helicopter support for ONGC''s offshore
operations. PHL was successful in providing all the 12 Dauphin N and N3
helicopters fully compliant with AS-4 as per the new contract with ONGC.
8. Other New Projects/ Business initiatives C2-C3-C4 Extraction Plant
* Your company has set up a C2, C3 and C4 Extraction Plant at Dahej
having a capacity to process 5.0 MMTPA Rich Liquefied Natural Gas (LNG)
from M/s Petronet LNG Limited (PLL) as feed stock, for extraction of
C2, C3 & C4 products.
* The plant will be commissioned shortly.
* These extracted C2, C3 and C4 products would be feed stock for ONGCs
promoted Joint Venture OPaL in the same SEZ at Dahej. They would form
40 % feed stock for upcoming OPaL Project.
* However till the starting operations and stabilization of OPaL, ONGC
shall be producing LPG by blending C3 & C4 in the requisite ratio and
would be sold to Oil Marketing Companies.
9. Alliances & Partnerships for Business Growth
a. MoU between ONGC, BPCL, Mitsui and NMPT
ONGC along its consortium partners BPCL and Japanese conglomerate
Mitsui signed a MoU with the New Mangalore Port trust (NMPT) on 18t h
March, 2013. The MoU documents Port''s No- Objection to carry out
feasibility studies and intention to extend all cooperation to the
consortium in this regard. The consortium has carried out the
pre-feasibility study of the project and found that terminal is
technically feasible and the same had been presented to NMPT Based on
the report, NMPT has conveyed its no objection to the consortium, for
carrying out detailed feasibility studies for the identified locations,
subject to adherence to navigational safety requirements. Commercial
prefeasibility study is being carried out.
b. MoU for setting up a Special Purpose Vehicle (SPV) for implementing
Renewable Energy projects
Your company is likely to be a lead partner in a Joint Venture Company
being set up through Special Purpose Vehicle (SPV) for implementing
large scale grid-connected solar, wind and other renewable energy
(including hybrid) power projects.
An MOU for creating such a JVC was signed on 25th February, 2014
between the Ministry of New & Renewable Energy and Ministry of
Petroleum & Natural Gas, Govt of India.
This JVC shall be for grid connected renewable energy and would be led
by ONGC as the lead partner with likely 26% equity and other Oil
upstream companies like OIL and GAIL along with EIL, IREDA and SECI as
partners, equity percentage of each one of them to be decided later.
Feasibility study for formation of SPV has been done by EIL and report
has been submitted to MoPNG.
10. Information Technology
Considering the need to ensure implementation of cutting edge
technology in all areas of operations and to ensure data integrity and
security, ONGC has deployed state-of-the-art IT tools and technologies.
In a knowledge-driven and technology-intensive industry such as oil &
gas E&P, information technology establishes the vital synergy across
the company''s many locations and varied workforce, essentially serving
as its operations'' lifeline. Many of the IT achievements of the Company
are regarded as benchmarks in the industry in terms of implementation
of widespread systems integration and process automation.
Highlights for the year 2014-15
* Consequent to allotment of transponder on GSAT 10 satellite in lieu
of INSAT 3E by Department of Space, Govt. of India, Satcom stations
were successfully migrated to GSAT 10 satellite using in-house
capabilities. On the directive from MoP&NG, a meeting was held with
representatives of Indian Space Research Organisation (ISRO) on
05.09.2014 to work-out the use of space applications in E&P sector.
ISRO has constituted a five member team which will interact with ONGC
team to work-out the use of space applications in E&P sector.
* ISO/IEC 20000: 2011 accreditation for IT Services has been extended
to all locations covering entire ONGC, after successful external audit
during 8th-12th September, 2014.
* Crisis Management Plan (CMP) for Countering Cyber Attacks and Cyber
Terrorism prepared based on CERT-In template and got validated from
security expert of CMC and submitted to EC for approval. CMP Incident
Management team was constituted at corporate level, which will meet
weekly or in case of requirement, to oversee resolution of incidents
and discuss mitigation plans for upcoming / known threats & which are
communicated by NCIIPC, CERT-in etc.
* Infocom has developed O Drive facility for ONGCians. With O Drive
facility, documents can be stored in a centralized server which can be
accessed from anywhere. This effort is alternative option to the usage
of USB drives and thus contributes for Information security
* Developed a complete pipeline information system In-house and rolled
out at Mehsana& Rajahmundry Assets. The system feature includes
facility to view other geographical information such as nearby
locations of hospitals, schools fire stations etc., facility to measure
distance between any two points, liquid flow direction animation etc.
Distinctive colours adopted for different type of lines. The facility
can be accessed from anywhere on ONGC Intranet with user login
* Participated in the CERT-in simulated cyber- attacks based Cyber
Security Drill on 23.12.2014, along with 47 other organizations, to
assess ONGC preparedness to withstand the possible cyber-attacks. The
Cyber Security Drill was completed successfully and Cyber Security
Crisis Management Team was able to detect and analyze the incidents and
inform CERT-in within given time.
* A portal for Public Grievances was developed in- house to facilitate
public to launch their complaints online. This web-based Grievance
redressal initiative of ONGC reinforces focus on Digital India project
which aims to leverage technology to maintain the Citizen-Government
Interface with the highest integrity. Through this portal,
citizen/vendor/employee/former-employee can register their grievances
relating to any operational wing of ONGC, through an online/single
window system. Facility available for monitoring the complaint status by
* A portal for JRM (Joint Review Meeting) of Technology and Field
services was developed in- house to cater to the complete JRM
requirements for conducting the meeting smoothly. JRM members can
upload the presentations, tour program details, ATR for previous
meetings etc. Notifications/ messages can be generated through this
portal and be sent as SMS as well as mail to the members.
11. Health, Safety and Environment(HSE)
Safety, Occupational health and protection of environment in and around
its workingareas are prime concerns of ONGC. ONGC has implemented
globally recognized QHSE Management System conforming to requirements
of QHSE Certifications ISO 9001 ISO 14001 and ISO 18001(OHSAS) at ONGC
facilities and certified by reputed certification agencies at all its
operational units. During the year 2014-15, 412 Nos. of installations
of ONGC were audited for certification/surveillance audit. Corporate
guidelines on incident reporting, investigation and monitoring of
recommendations was developed and implemented for maintaining
uniformity throughout the organization in line with international
A few highlights of HSE during 2014-15 are:
* Regular QHSE internal audits
* Fire safety measures including regular fire and earthquake mock
* Training on HSE related topics
* Environmental analysis
* PME of employees and Health Awareness programs
* Water and electricity conservation Noise and pollution reduction
* Material Safety Data Sheets(MSDS)
* Personal protective Equipment''s(PPE)
* Solid waste management and Developing E- waste disposal procedure
* Identification and implementation of Environment Management
* Occupation Health & Safety(OHS) programs as per need of the unit
* Energy conservation awareness through display and communication
* Accident near miss and Governance Risk Compliance (GRC) reporting.
* Mines Vocational Training for Petty Contractual Workers
ONGC is now an Accredited Environment Impact Assessment (EIA)
Consultant organization by Ministry of Environment & Forest (MoEF) in
Oil and Gas Exploration Development and Production in Offshore/Onshore
areas and Petroleum refining industry.
Approval by DSIR
ONGC Institutes have received the renewal of recognition of In-house
R&D unit by Department of Scientific and Industrial Research (DSIR) for
a period of five years (valid till 31st March, 2018) on 26.03.2013.
This will enable ONGC Institutes to continue claiming weighted
deduction in Income Tax (200%) against the expenditure towards R&D
Patenting R&D Work
1. One Patent proposal of IRS, Ahmedabad on Process and composition
for cleaning scale deposits of effluent dispatch lines has been
submitted to Centralized Patent Cell, KDMIPE in March, 2015.
2. Patent application has been made by CEWELL for patenting the
innovative technique for TOC estimation. The TOC estimated by this
technique in first shale gas well matches very well with TOC data
obtained through laboratory study on cutting samples. This validates the
new technique developed by CEWELL and its applicability in Indian
12. Carbon Management & Sustainability Development
ONGC being one of the premier energy majors of the world and the
highest profit earning PSU of India realises its responsibilities in
ensuring sustained development through protection of the ecological
system. It therefore strives to position itself as a leading
organisation in sustainable management and is aiming to achieve
sustainable development through a holistic approach to carbon
management. ONGC believes that focused Carbon Management efforts are an
ideal route to cover the elements of our business specific sustainable
development issues across the environmental dimensions. A critical area
of environmental sustainability is mitigation of global greenhouse gas
from operations. It isan organizational objective for us to
progressively reduce our carbon footprint by working towards reduction
in both direct and indirect energy consumption.
Sustainable development requires contribution of all the societal
players and with increasingly dominant role of modern day corporates;
they can contribute significantly towards sustainable development. ONGC
has created a small group called Carbon Management & Sustainability
Group with a mandate for developing CDM projects, Sustainability
reporting, Carbon & Water Management and focussed R&D in the area of low
carbon. The following efforts undertaken by ONGC illustrate its
commitment to Sustainable Development:
1. Clean Development Mechanism (CDM):
ONGC commenced its CDM journey in 2006. Till date, ONGC has registered
12 CdM projects with UNFCCC. 2 new CDM projects validated and 2
already registered projects successfully verified for issuance of CERs.
Validation of New CDM projects
1. Gas Flare Recovery at GGS Chariali, Assam
2. Energy Savings by replacement of MOL pump at Neelam&Heera Asset
Verification & Issuance of Registered CDM projects
1. Gas Flaring Reduction at Uran Plant
2. 51 MW wind power project of ONGC at Surajbari
2. Carbon and Water Foot printing:
Carbon Foot printing:
GHG Accounting & GHG mitigation projects
Comprehensive company-wide GHG accounting had been completed for the
base year 2010-11 and it is found that ONGC has 8,234,853 and 281,178
tons of CO2 emissions under Scope 1 - Direct Emissions and Scope 2 -
Energy Indirect Emissions respectively. Based on the study, 11 focus
areas and projects have been identified. It is proposed to undertake
the feasibility study of eleven identified GHG mitigation projects.
Global Methane Initiative (GMI):
The Global Methane Initiative (GMI) is an action-oriented initiative
from United State Environmental Protection Agency (USEPA) to reduce
global fugitive methane emissions to enhance economic growth, promote
energy security, improve the environment, and reduce greenhouse gases
emission. The Global Methane Initiative facilitates cooperative
mitigation activities that result in bringing more gas to markets
through Identification, Quantification, and Reduction (IQR) path.
ONGC entered into a MoU with the USEPA in August 2007, to undertake
Methane to Market (now GMI) projects in ONGC and over the years since
its joining into the program, ONGC has formed a dedicated team and has
procured methane emission detection and measurement equipment in order
to undertake Fugitive Emission detection and quantification at its
operating facilities and has reduced approx. 14 MMSCM over the years.
This is equivalent to reductions of over 2 lakhs tCO2e emitting into
Fugitive emission Identification & Quantification (IQ) jobs have been
completed as per Performance Contract (PC) targets. Assam Asset,
Ankleshwar Asset &Hazira plant were mapped for fugitive emissions. The
reports have been submitted to respective work centres to take
Water Foot printing:
Sustainable water management:
Every business depends and impacts on water resources. The future of
business depends on the sustainability of water resources, which are
increasingly under pressure. With freshwater supplies tightening due
to overuse and more extreme weather patterns, business is coming under
more pressure to measure and cut water use. ONGC is concerned towards
the risks and benefits of water management and exploring new techniques
to cut consumption. ONGC''s Sustainable Water Management policy is based
on philosophy of 4 R i.e. Reduce, Reuse, Recycle & Replenish. CM&SG
is entrusted with the responsibility of steering SM projects across
ONGC. CM&SG is working on following projects in this area:
Water footprint study in Ahmedabad Asset and IPSHEM, Goa:
For the first time an in-house footprint study has been done without
engaging any external agency. The project was completed ahead of
Setting up sea water desalination plant at Uran:
LOA for techno-commercial and environmental feasibility study for
proposed 20 MLD sea water desalination plant has been placed on M/s
Setting up desalination plants at ONGC work centres located near
coastal areas and at MRPL:
It is proposed to set up desalination plants at ONGC work centres
located near coastal areas (Hazira Plant, Ankleshwar Asset, Cauvery
Asset-Karaikal, Rajahmundry Asset & Eastern Offshore Asset-Kakinada)
and at MRPL as a SWM measure, in order to mitigate future
sustainability risk due to declining fresh water availability. It is
proposed to initially conduct techno-commercial and environmental
feasibility study and based on the affirmative outcome of the
feasibility report, implementation of setting up desalination plant at
the respective work centre may be undertaken.
Rain water Harvesting:
Rain Water Harvesting (RWH) projects are implemented/ being implemented
at different work centres of ONGC under the umbrella of Sustainable
Water Management. The harvested water is being used for beneficial use
like gardening, toilet flushing, etc and also for recharging of ground
water aquifers. The RWH projects have been taken up at Ahmedabad Asset,
Tripura Asset, WOB Vadodara and IPSHEM Goa.
Sewage Treatment Plant (STP) at Mehsana Asset:
Administrative approval accorded for setting up three STP''s (each of
capacity 100 KLD) at ONGC Nagar, Mehsana. Finalization of scope of work
and tendering process is being taken up by Mehsana Asset.
Produced Water Management at Mehsana Asset:
CM&SG and Mehsana Asset have jointly undertaken produced water
management in a holistic manner through a Multi-disciplinary Team (MDT)
under sustainable water management umbrella in line with EC decision.
Integrated Watershed/Check dam Management at Mehsana:
ONGC as a responsible corporate wants to expand its activities in
sustainable water management beyond its operational boundaries. As a
first step Mehsana Asset has been chosen as it is one of the worst
affected regions as far as water scarcity is concerned. The project
will be a CSR project in association with CM&SG, Mehsana Asset and
local concerned authorities. The project is at present exists as a
concept and implementation roadmap is being worked out.
SD through focussed R&D and collaborations
ONGC is committed towards reduction of greenhouse gases (GHG) emissions
and is actively pursuing various R&D projects towards CO2 capture and
sequestration in following ways:
* Sequestration by Algal biomass
* Conversion into useful products
ONGC has signed NDA (Non-Disclosure Agreement) with following Finnish
* Ripasso Energy, Sweden in the field of Solar CSP-ST technology,
* Chempolis, Finland in the area of 3G bio refinery.
* Cleen, Finland in the area of CCSP, EFEU and BEST program
* VTT, Finland in the area of water management
At present, however, CM&SG has been pursuing the CCSP programme with
CLEEN for the CO2 capture and reformation programme at Hazira plant.
Setting up of 3G Bio-refinery
ONGC is planning to setup a 3G bio-refinery (first of its kind in
India) to meet the government mandate of E95 (blending of 5% ethanol to
gasoline). To this effect, ONGC had signed NDA &MoU with Chempolis,
Finland. This endeavor would create a new business dimension for ONGC.
Chempolis had conducted feasibility study for the state of Punjab and
the same is under consideration.
Carbon Capture & Sequestration
ONGC has also collaborated with CLEEN, Finland in the area of carbon
capture and joined its program named Carbon Capture & Storage Program
(CCSP). This program works on sharing knowledge among consortium
members and working on the specific goals. Consortium agreement has
been signed for ONGC specific work package at Hazira.
Solar power CSP-ST technology
Ripasso Energy has specific and unique expertise in the Concentrated
Solar Power (CSP) technology. CSP technology is based on Stirling
Engine technology, a unit has a typical power output of 30 KW. An
inherited modular design ideally suited for volume electricity
production with an outstanding conversion efficiency of 32%, provides a
number of benefits compared to other solar thermal technologies. CM&SG
is in talk with Rippaso Energy for establishing a 3MW pilot solar power
project at Gamnewala, Jaisalmer. The project proposal is under
Pilot project on CO2 sequestration through microalgae at Hazira plant
Algae have recently received a lot of attention as a new biomass source
for the production of renewable energy. Some of the main
characteristics which set algae apart from other biomass sources are
that algae have a high biomass yield per unit of light and area, can
have a high oil or starch content, do not require agricultural land,
fresh water is not essential and nutrients can be supplied by
wastewater and CO2 by combustion gas.
The pilot project was set up at Hazira plant with an aim to sequester
CO2 from vent gas (released during sweeting process of sour gas) with
the microalgae and convert into value added products. The results are
encouraging which shows that 50% of the CO2 from the SRU vent could be
absorbed by the absorption medium in the absorption column at a
pressure of 0.5 Bar. The carbonated medium, when transferred to the
raceway pond, inoculated with microalgal strain, showed appreciable
algal growth (18 g/m2/day), which was harvested. The harvested biomass
was tested at BITS Pilani, Goa Campus for the potential of bio-methane
generation. It was found that the biomass have good potential of
bio-methane generation. (336 Litre/ when fed with 0.5 KgVS /m3/day).
Waste to Fuel project (under Swach Bharat Abhiyan)
MoP&NG has desired to take a project on waste to fuel at Puri, Odisha
under Swachh Bharat Abhiyan (SBA) as a part of Corporate Social
Responsibility. The project being of specialized nature and involving
technical expertise is being steered by CM&SG. Following steps were
* MDT has been formulated to take project forward
* Meeting with Puri administration had been concluded.
* Draft Eol has been put up for approval before floating for
identifying technology and prospective bidders.
Disclosing sustainability performance- Sustainability Reporting
Sustainability reporting, the practice of measuring, disclosing, and
being accountable to internal and external stakeholders for
organizational performance towards the goal of sustainable development
is being increasingly adopted by organizations. Sustainability
Reporting is also believed to lead to improved sustainable development
outcomes as it allows organizations to measure, track, and improve
their performance on specific issues along the three bottom lines.
Published third party assured A sustainability report for ONGC group of
companies including ONGC Videsh and MRPL (GRI-G3.0 complaint with Oil
and gas sector supplement and BRR).
Capacity building & knowledge Dissemination
CM&SG has three tier knowledge dissemination approaches on carbon,
water management and sustainable development.
* Annual Training Program at ONGC Academy
* Programs at Petrotech
* Awareness programs at different work-centers
Total seven awareness programs were conducted by CM&SG at CFB Silchar,
RFB Jodhpur, Western Offshore Basin Mumbai, MBA Basin Kolkata, Cauvery
Asset Karaikal, OB Vadodara and Cauvery & KG-PG Basin. Total 240
executives participated in the program.
A two day 3rd CM&SG meet was conducted at Goa in January, 2015 for an
in depth interaction of CM&SG and SD officers from all ONGC work
centers to strategize the pursuit of SD activities in ONGC.
A two day seminar on Innovation for Sustainability Dividend was
conducted by CM&SG in association with Petrotech Society at Delhi
during November, 2014. The seminar was attended by representatives
across Indian oil & gas industries, institutes working in the
sustainability and representatives from ONGC.
SD brochure was published during 3rd CM&SG meet. The brochure would be
a communication tool to communicate ONGC''s triple bottom line
performance (economic, social and environmental) and sustainability
practices. This brochure highlights the considerable work done in the
sustainability space, SD initiatives and performance.
Film on Sustainability was unveiled during 3rd CM&SG meet by Governor
of Goa in the presence of Director-I/c- CM&SG.This small film
highlights the journey of ONGC in the pursuit of sustainable
Stake holder engagement meet
Two stakeholders engagement meets were organized to map and prioritise
the key sustainability issues of ONGC. The first meet was meant for
internal stakeholders who had prioritized the set of issues which would
impact the business sustainability of ONGC. The second meet was for the
external stakeholders who had prioritized the issues whose impacts on
ONGC would impact their business sustainability. The outcome of the two
reports, upon juxtaposition, has generated the key materiality issues
of ONGC to work upon. This is the first time such an exercise was
Corporate Waste Management Policy: Your company approved Corporate
Waste Management Policy and the same will be reviewed after every three
* Trading policy on monetizing of CER shas been approved and will be
* Carbon Neutrality: ONGC has taken a conscious decision to reduce its
carbon footprint as a part of its sustainable development programme. As
a first step towards this mission, CM&SG has undertaken a maiden
initiative to render the carbon footprints of three major areas
neutralised for 2013-14. The areas are :
* Air travel of all ONGC employees including to and fro local surface
transportation to airport.
* Consumption of electricity, paper, LPG and fuel for local
transportation from IPE Campus, IDT, IEOT, IRS and IPSHEM
* Flaring and electricity consumption of Uran Plant. Carbon neutrality
is essentially a concept of having a net zero GHG footprint of an
activity. The entire process involved a detailed GHG accounting of the
activity and offsetting the footprint. The total footprint of the
activities is 1,37, 345 tons of CO2 equivalent and has been offset by
retiring an equivalent quantity of carbon credits issued against the
registered CDM projects of ONGC.
13. Business Responsibility Report - 2014-15
Securities & Exchange Board of India has introduced Clause 55 to the
Listing Agreement with the Stock Exchanges, which states that Listed
entities shall submit, as part of their Annual Report, Business
Responsibility Report, describing the initiatives taken by them from an
environmental, social and governance perspective. Accordingly, the
third Business Responsibility Report - 2014-15 has been drawn up and
forms part of the Annual Report for 2014-15.
14. Internal Control System
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 (BDP). The Integrated BDP is updated from time-
to-time in line with the needs of the organisation as well as to bring
further delegation. BDP has been revised during FY 14-15 and the same
has been made effective from 01.01.2015. The Company has 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
15. 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
Your company through ONGC Energy Centre has been implementing several
Research Projects on new and alternative sources of energy. These
Projects are in advanced stages of implementation, in collaboration
with various national and international academic, research and
industrial organizations. The projects where your company is currently
engaged in are:
a) Hydrogen Generation through Thermo-chemical Processes
b) Exploration for Uranium
c) Bioconversion of lignite to Methane
d) Bioconversion of Oil to Methane
e) Kinetic Hydro Power
f) Geothermal Energy
g) Solar Thermal Project
These apart, during 2014-15, ONGC Energy Centrehas also evaluated many
new options to expand the research and technology development
activities and also to focus on optimum utilization of resources
available with ONGC. These efforts have been described in detail in the
Annexure Con Energy Conservation.
Further, a Board Level Committee on Research & Development has been
constituted. The first meeting of the Committee was held on 27.05.2015
and the terms of reference of the Committee have been approved.
16. 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.
17. 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 environment.
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 which has been converted
into a Defined Contribution Scheme as per DPE guidelines.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.
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 alongwith 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 includes 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. 5770 million were
disbursed by the Trust during the year.
Extension of Benefits under the Asha Kiran Scheme to retired
The Asha Kiran Scheme was introduced 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. 1780 million was provided to 14698
Persons with Disabilities
ONGC believes in affording equal opportunities to physically challenged
people. As on 31.03.2015, there were 156 permanent employees with
disabilities (0.5%) on the rolls of ONGC.
Implementation of Govt. Directives for Priority Section
Your Company complies with the Government directives for Priority
Section of the society. The percentage of Scheduled Castes(SC) and
Scheduled Tribes (ST) employees were 15 percent and 9 percent
respectively as on 31st March, 2015.
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. Out of this, Rs. 60 million is distributed amongst
all the Work centres of ONGC 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
Your Company provides scholarships for meritorious SC & ST students
from 100 to 500 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 out to
Rs. 4,000/- per month per student subject to the conditions of the
scheme. The annual budget for the scheme on its total implementation is
Rs. 76 million per annum.
18. 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 2014-15.
19. Grievance Management System (GMS) :
Your Company provides an easily accessible machinery to the employees
for redressal of their grievances, either through informal channel (open
hearing day) or through formal channel. On 26th January, 2015 a
web-portal, Public Grievance Portal, was launched, which will provide
redressal of grievances of all stakeholders. This portal is a step
further to empower each stakeholder viz.
citizen/vendor/employee/former-employee to register their grievances
related to any operational wing of ONGC, through a single window on
corporate web portal. A structured apparatus has been operationalized to
process the grievances within a limited time frame Public Grievance
All Key Executives of your company have designated a publicized time
slot thrice in a week to meet Public Representatives in order to
speedily redress their grievances.
20. Implementation under the Right to Information Act
An elaborate mechanism has been set up throughout the organization to
deal with requests received under RTI Act, 2005.There are two Central
Public Information officers (CPIOs) based at the Registered Office at
Delhi and 22 Central Assistant Public Information officers (CAPIOs)
have been designated at different work centers across the country to
redress the issues under RTI Act 2005.
69 applications were carried forward from the year 2013-14 to 2014-15.
1790 applications were received during the year 2014-15; making a total
of 1859. In addition, 66 First appeals were carried forward from the
previous year to financial year 2014-15 and 261 were received during
the period. All the aforesaid 327 first appeals were disposed off by
the appellate authority of ONGC and orders passed by the authority were
complied with in stipulated time frame.
21. Implementation of Official Language Policy
Your Company makes concerted effort to spread and promote Official
Language. In this effort some of the steps taken during the year were:-
(i) Company has introduced Unicode Hindi software in all our offices.
(ii) Hindi workshops are conducted at regular intervals(iii) Hindi
seminars and ''Kavi Gosthies'' organized in Dehradun and Delhi. (iv) ONGC
actively contributed in publishing bilingual Petroleum Terminology,
initiated by MoP&NG. (v) Hindi Teaching Scheme of Govt. of India is
effectively implemented at all regional work centres.
22. Human Resource Development
33,185 ONGCians (as on 31st March, 2015), which includes 26,656
executives and 9,529 non-executives, 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 factoring the manpower profile of the Company.
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. 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 2014-15, a total of 144 teams and 576 executives
participated in the event. Fun Team Games (FTG) were organized for E0
and staff 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 75 Teams
and 300 employees participated in FTG during the year 2014-15. The
winners of Business Games and Fun Team Games were felicitated by the CMD
on Republic Day Celebrations. Your Company also conducted the Assessment
Development Centre (ADC) for 192 DGM level executives (0.81% of
executives) and provided them developmental inputs. Your Company has
partnered with global HR consulting firms to create a pool of accredited
mentors in the organization. These mentors will support organization''s
effort to hone young minds to successfully respond to the emerging
business needs of your Company. As part of this Initiative, in the year
2014-15, 36 mentorship workshops were conducted. Also, 123 mentors have
been awarded Basic and Advanced level Accreditations for mentoring.
Your Company attaches utmost importance to the development of its human
resource.Your Company has branded the spectrum of its training
activities as ''EXPONENT - a comprehensive Programme, which is nurturing
the energy leaders of tomorrow. The growth of an ONGCian to an Exponent
of energy business is facilitated by ONGC Academy, Regional Training
Institutes and other specialised in-house training Institutes and world
class training providers in India and abroad.
During the year , a total of 20084 Executives and 4729 non-executives
were imparted appropriate training, spanning 176644 executive mandays
(Number of executive mandays per executive per year: 7.49) and 16119
non-executive mandays (Number of non- executive mandays per executive
per year: 1.69) during 2014-15 at all Work centres.
In order to absorb new and emerging technological advancements
pertaining to oil and gas exploration and production, 85 programmes,
including 26 foreign faculty programmes pertaining to functional
disciplines, were organized with the best of faculties from India and
abroad during the year.
To nurture the talent with the objectives to prepare future leaders of
the organisation for taking up higher roles and address key
organisational challenges, 338 executives of E7, E6 and E5 level were
exposed to Leadership Development Program (LDP), Advanced Management
Program (AMP) and Senior Management Program (SMP) respectively, the
tailor made Management Programmes with overseas learning component
through tie-ups with leading B- schools of the country.
23. Women Empowerment
Women employees constituted over 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 lady employees for
programmes organized by reputed agencies.
Your company scrupulously complies with The Sexual Harassment of Women
at Workplace (Prevention, Prohibition and Redressal) Act 2013. Reported
cases of Sexual harassment are inquired into by Complaint Committee
constituted separately for all the work- centres, for taking
disciplinary action against the delinquent employees.
24. 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. MahilaSamitis and
Resident Welfare Associations (RWAs) were involved in the organization
of these cultural programs. Your Company has a 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
among the employees.
Your Company continued its large scale support for development of sports
in the country in the form of job offers & scholarships to deserving
sportspersons. Sponsorships to various sports associations / federations
/ sports bodies to organise sports events as well as develop
infra-structure were also extended. Your Company extended support in 23
game disciplines to 170 players on regular rolls and 167 players on
scholarship. The support has enabled many sportspersons to bring home
laurels for the nation and the organisation. Some of the key
achievements during the year are given below:
Your Company was conferred the prestigious Rashtriya Khel Protsahan
Puruskar by Hon''ble President of India Mr. Pranab Mukherjee at a
glittering ceremony in Rashtrapati Bhavan on the occasion of National
Sports Day on Friday 29th August , 2014. CMD Mr. D.K.Sarraf received
the honour from the President.
Two ONGCians were conferred with the prestigious Arjuna Award for the
year 2014; Ms. Heena Sidhu in Shooting and Mr. V Diju in Badminton. The
total number of National Awardees in the organization stands at 24
(KhelRatna - 1, Padma Shri - 2 & Arjuna - 21)
In Commonwealth Games 2014 held at Glasgow (UK) a total of 20 ONGC
athletes had participated in this 12 day long mega event and bagged 6
medals (1 Gold, 3 Silver & 2 Bronze) which is a pretty healthy success
rate In Asian Games 2014 held at Incheon (Korea) a total of 40 ONGC
athletes had participated and bagged 13 medals (4 Gold, 1 Silver & 8
Mr.Sourav Kothari won the Gold Medal at the Asian Billiards
Your Company was awarded the prestigious FICCI Certificate of
Excellence for the Award for long time contribution to Indian
Football for the year 2014 [this is the first time in the history that
an organisation has been awarded successive FICCI Awards].
Mr. Pankaj Advani of ONGCwon 12th world title in cue sports. In the
year 2014-15 he won World Billiards title in time & point format, 6 red
world snooker championship and World team Billiards Championship.
Ms. Rashmi Kumari of ONGC won the singles title of world Cup (women) in
26. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Your company is fully engaged in ensuring equitable and sustainable
growth of society in and around the area of its operations besides
complying with government directives to discharge its social
responsibility as a leading Indian corporate. CSR activities are
essentially guided by project based approach in line with the
provisions of Companies Act, 2013 promulgated by Ministry of Corporate
Affairs and Companies (CSR Policy) Rules and the guidelines on CSR&
Sustainability issued by Department of Public Enterprise, Government of
India. Seeking to herald an inclusive business paradigm, ONGC has CSR
interventions that are based on social, environmental, and economic
considerations and are well-integrated into the decision-making
structures and processes of the organization.
Pursuant to enactment of Companies Act 2013 and Companies (CSR Policy)
Rules 2014 by Ministry of Corporate Affairs and Guidelines on CSR and
Sustainability by Department of Public Enterprise, the CSR Policy has
been approved by the Board of Directors. The same is uploaded on the
Further, in line with the approval of the Board, ONGC has set up and
registered ONGC Foundation under the Societies Registration Act, for
carrying out CSR activities. Necessary steps are on hand to recruit
manpower for making ONGC Foundation an effective tool for
implementation of CSR policy of ONGC. Pursuant to Rule 9 of Companies
(Corporate Social Responsibility Policy) Rules, 2014 the Annual Report
on CSR activities is annexed herewith as Annexure ''C''. CSR ACTIVITIES
UNDERTAKEN BY ONGC BASED ON ITEMS LISTED IN SCHEDULE VII OF THE
COMPANIES ACT, 2013
* Eradicating hunger, poverty and malnutrition, promoting preventive
health care and sanitation and including contribution to Swachch Bharat
Kosh set up by Central Government for promotion of sanitation, making
available safe drinking water:
* Promoting education, including special education and employment
enhancing vocation skills. Especially among children, women, elderly,
and the differently abled and livelihood enhancement projects.
* Promoting gender equality, empowering women, setting up homes and
hostels for women and orphans; setting up old age homes, day care
centres and such other facilities for senior citizens and measures for
reducing inequalities faced by socially and economically backward
* Ensuring environmental sustainability, ecological balance, protection
of flora and fauna, animal welfare, agro forestry, conservation of
natural resources and maintaining quality of soil, air and water
including contribution to clean Ganga fund set up by the central
government for rejuvenation of river Ganges.
* Protection of national heritage, alt and culture including restoration
of buildings and sites of historical importance and works of art;
setting up public libraries; promotion and development of traditional
* Measures for the benefit of armed forces veterans, war widows and
* Training to promote rural sports, nationally recognised sports,
Paralympics sports and Olympic sports.
* Contribution to the Prime Minister''s National Relief Fund or any other
fund set up by the Central Government for socio-economic development
and relief and welfare of the Scheduled Caste& the Scheduled Tribes,
other backward classes, minorities and women.
* Contributions or funds provided to technology incubators located
within academic institutions which are approved by the Central
* Rural development projects.
* Slum area development.
In the last 7 years, your company has contributed Rs. 18,807 Million
towards its well-structured and well- focussedCSR activities.
Out of the CSR Budget of Rs. 6,606.12 million, ONGC spent an amount of
Rs. 4,952.29 million in FY 2014-15. This translates to overall
utilization of 74.97% of the CSR Budget.
Reason for non-utilization of full CSR budget:
* Major Initiatives undertaken were mostly in transition phase so the
allocated earmarked budget could not be spent.
* Some of the flagship projects undertaken were of long gestation
period with budget spread over 3-5 years thus resulting in lesser
utilisation of earmarked budget for the financial year 2014-15.
Some of the landmark CSR initiatives under implementation during the
year 2014-15 by your Company include:
(i) Varisthajana Swasthya Sewa Abhiyan: ONGC and Help-Age India
To provide basic medical facilities to elderly in terms of medical
consultancy, medicine distribution, basic diagnostic test, special
health camp and palliative care at their doorstep. A total of 20 Mobile
Medicare Units (MMUs) are engaged for taking basic healthcare to the
doorsteps of the elderly in nine states, 17 Districts, 35 blocks and
131 Gram Panchayat and 240 villages of India. A total of 11,86,020
beneficiaries were treated for chronic illness such as Hypertension,
Diabetes, Osteoarthritis, Dyspepsia& Skin problems etc.
(ii) Community Hospital in Lakhimpur- Kheri, Uttar Pradesh:
The project is unique in terms of using the PPP model in CSR with full
Capex of Rs. 45 million contribution by ONGC and Opex borne by the
Operating Partner. This 26 bedded Community Hospital would cater to
Primary and Secondary Health Service Requirements from BPL,
Economically Backward Class families. Healthcare services are being
provided at 50% less cost than the existing CGHS rates.
(iii) Aids and Appliances to person with disability:
This is a Pan India CSR project undertaken in association with
Artificial Limbs Manufacturing Corporation of India (ALIMCO) and Bhagwan
Mahaveer Viklang Sahayata Samiti (BMVSS), Jaipur commonly known as
Jaipur Foot benefitting 45,495 Person with Disabilities. Beneficiaries
were provided Orthopedic, Hearing and Visually Aids and Appliances. The
total financial implication of the project was ''262 million covering 39
ONGC operational areas and 61 Backward Districts in Phase-I of the
project which concluded in the financial year 2014-15.
(iv) Government General Hospital (GGH), Kakinada:
ONGC has given financial assistance of Rs. 19 million to construct a
separate building for blood bank and to equip the hospital with
additional equipment for blood bank, general surgery and general
medicine departments. This will immensely benefit people of East
Godavari District where ONGC has a substantial operational presence
(v) ONGC Mission Ujala:
The project envisages eye screening of 50,000 children in Government
Schools in NCR under National Blindness Control Programme of Govt. of
India in collaboration with reputed NGO PRAANI. Spectacles to 3,000
children detected with refractive errors along with medicines were
provided under this project.
(b) Education & Vocational courses:
i. ONGC-GICEIT Computer Education Program:
Through this project, employment- related free computer education is
being imparted to economically underprivileged Youth. The project is
implemented in association with Bhartiya Vidhya Bhawan''s Gandhi
Institute of Computer Education and Information Technology, (GICEIT) at
five work centres of ONGC located at Mehsana, Dehradun, Nazira,
Karaikal and Rajahmundry. More than 8295 students have received
computer training through these centers in the financial year 2014-15.
ii. ONGC-The Akshaya Patra Foundation:
A centralized fully automated mechanized kitchen is being set up to
provide mid-day meals to school going children (enrolled in Govt.
schools) in the District of Surat. This kitchen was inaugurated by the
Hon''ble Chief Minister of Gujarat Smt Anandiben Patel on 15th Feburary,
2015. This kitchen has capacity to feed 2,00,000 children per day. The
enrolment as on 31st March, 2015 is 1,90,840.
iii. Community School at Sitapur, Uttar Pradesh:
The project is unique in terms of using the PPP model in CSR with full
Capex of Rs. 27 million contribution by ONGC and Opex borne by the
Operating Partner- Shanti Devi Memorial Charitable Trust.
iv. ONGC Super 30
ONGC Super 30 is a residential Coaching Programme for IIT aspirants
based at Sivasagar Assam. The total cost of the project is Rs. 6.70
million. The initiative was conceived to cater to underprivileged and
below poverty line students who are unable to get proper coaching to
qualify engineering exams due to lack of resources and funds.
(c) Projects for Physically and Mentally challenged
i. ONGC Centre for vocational rehabilitation for the differently abled:
A financial support of Rs. 13 million has been provided to Tamana
School of Hope, Vasant Vihar, New Delhi for setting up of Autism Centre
and provide vocational training for the mentally challenged young
adults and children working for their economic rehabilitation by
teaching relevant vocational skills to them.
ii. ONGC -Cheshire Home Project for Physically and Mentally Challenged:
A project on health rehabilitation and allied services for economically
disadvantage children with disabilities living in slums area of Mumbai
undertaken with Cheshire Homes (India) Mumbai with financial assistance
from ONGC. Children with Disabilities were identified from areas of
Hanuman Nagar, Damu Nagar and Shivaji Nagar covering 3 slum communities
and provided with rehabilitation treatment and aids with an objective
to help them lead a normal life.
(d) Environment Sustainability:
i. Eastern Swamp Deer Conservation Project (Phase II) :
The phase II of the project includes capture of Eastern Swamp Deer from
the source i.e Kaziranga National Park and translocate them to Manas
National park. This is a research based project to conserve and
increase the viable population of Eastern Swamp Deer in their natural
habitat at Manas National Park. The total cost of the project is Rs.
ii. Harit Moksha: Green Cremation System
This is a unique CSR initiative of ONGC undertaken with
MokshdaParyavaranEvam Van SurakshaSamiti (MPEVSS) to reduce wood
consumption during traditional cremations through Mokshda Green
Cremation Systems (MGCS). The project includes installing 30 units of
green cremation system in 8 cities of 7 different states with a budget
of Rs. 92 million . The project helped in saving approximately 13,700
tonnes of wood & reduced 26,500 tonnes of GHG emissions till date.
(e) Development of Backward Districts:
The sustainable development project is being implemented in Jaisalmer,
a backward district in Rajasthan. Project involves setting up of 49
Wind Turbine Generators (WTG) each of capacity of 2.1 MW with total
capacity of 102.9 MW in association with M/S Suzlon Energy Ltd. ONGC
contribution towards the project is Rs. 5620 million. 22 nos. of WTG
have been installed.
(f) Women Empowerment:
ONGC as a leading organization and among the founder member of Women in
Public Sector (IPS) established way back in 1990 under the aegis of
SCOPE has always spearheaded women empowerment Initiatives. Women
Development Forum (WDF) an internal wing of ONGC women Employees was
also formed in line with WIPS to encourage women employee to explore
their potential to the fullest.
The basic aims and objectives of WIPS are:
* To promote the growth and development of Women in Public Sector.
* To assist the Public Undertakings in optimising the full potential in
* To play a catalytic role in improving the status of Women in and
Women in Public Sector (WIPS) presented ONGC with the Best Enterprise
Award for Women Empowerment consecutively for 3 years till 2014. In the
year 2015 ONGC was awarded the second prize for the same category.
(g) Other CSR Initiatives:
i) Hortoki Water Supply Scheme: The project aims to create a
sustainable source of safe drinking water to the people of Hortoki
Village, Kolasib District, Mizoram. A massive 1.7 Lakhs litre water
tank was constructed as part of the project to supply more than 40 lpcd
of water till 2043. ONGC has extended support of Rs. 9 million for the
project. More than 450 households of Hartoki village are benefited
through this project
ii) Rajeev Gandhi International Sports Complex, Dehradun: ONGC in
association with Govt. of Uttarakhand is working towards building a
Cricket stadium-cum-sports complex with a capacity of 30,000 people
extendable to additional seats in future, car parking, a sports
academy, a club house or Gymnasium, restaurant and other auxiliary
facilities. ONGC has extended financial support of Rs. 500 million
towards the project. The project is expected to be completed in two
iii) Dashrath Stadium at Agartala: The project aims to create an Indoor
sports complex in association with DDO Directorate of Youth Affairs.
ONGC has extended support of Rs. 243 million for the project.
iv) IIIT, Agartala: ONGC has extended support of Rs. 30 million for
setting up a new IIIT Campus in Agartala.
In addition to above major CSR initiatives undertaken in 2014-15, ONGC
has partnered with many NGO and other non- profit organization in
implementing several other CSR initiative across our country. All work
centres of ONGC have designated CSR office to take care of the local
As a testimony to our CSR efforts, your company has won many laurels
1. Golden Peacock Award 2014 for CSR during 9th International
Conference on Corporate Social Responsibility-2014
2. ABP News Global CSR Excellence & Leadership Award for Best Overall
3. 4th Annual Greentech CSR Platinum Award 2014 in petroleum
4. Madan Mohan Malviya Golden Award for outstanding contribution in
the field of Education
5. P L Roy CSR Award on ''International Day of Olde Persons'' for
support to the elderly through its CSR initiative ''Varishthajana
Swasthya Sewa Abhiyan''
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''.
28. 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 at 31st March, 2015 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
(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; and
(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.
29. 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 Clause 49 of the Listing Agreement, a report on Corporate
Governance for the year ended March 31st March, 2015, supported by a
certificate from the Company''s Statutory Auditors confirming compliance
of conditions, forms part of this Report.
ONGC has implemented the mandatory Guidelines of Department of Public
Enterprises (DPE), Government of India, on Corporate Governance to the
maximum extent possible.
In terms of section 204(1) of the Companies Act, 2013, the Company has
engaged M/s P P Agrawal & Co., Company Secretaries in whole-time
practice as Secretarial Auditors for conducting Secretarial Compliance
Audit for the financial year ended 31st March, 2015. Their report forms
part of this Annual Report.
With regard to the observations of Secretarial Auditors as contained in
their report, it is submitted that ONGC being a Government company, all
directors on the Board of the company are appointed by Government of
India. The matter relating to appointment of requisite numbers of
Independent Directors has already been taken up with the Government.
The Company has formulated and uploaded the following policies/codes on
its website in line with the Companies Act, 2013 and Listing Agreement:
(a) Code of Conduct for Board Members and Senior Management Personnel
(b) Related Party Transactions 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
In line with global practices, your Company has made available all
information, required by investors, on the Company''s corporate website
www.ongcindia.com Apart from the mandatory measures required to be
implemented as a part of Corporate Governance, ONGC has gone the extra
mile in this regard for the benefit of its stakeholders:
i. Whistle Blower Policy / Vigil Mechanism: A total of 35 Protected
Disclosures till 31.03.2015 have been processed through the histle
Blower mechanism of ONGC 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
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
ii. Enterprise-wide Risk Management (ERM) framework: In line with the
requirements of Clause 49 VI of the Listing Agreement, 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.
ONGC shall optimize the risks involved by managing their exposure and
bringing them in line with the acceptable risk appetite of the Company
The Board of Directors have constituted a Board Level Risk Management
Committee in terms of Clause 49 of the Listing Agreement. The first
meeting of the Committee was held on 19.03.2015 wherein the risk
appetite and present risk profile, development of risk register to
comply with clause 49 of the listing agreement and Companies Act, 2013,
Risk Management Policy in ONGC, Risk Reporting structure, Risk
Management / mitigation process, Governance Risk Management &
Compliance (GRC) module roll-out through SAP, Review of risk register
and identification of new & emerging risks, categorization and
quantification of risks and role of internal audit in ERM etc were
iii. Meeting of Independent Directors: No Meeting of Independent
Directors was held during 2014-15.
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,
30. STATUTORY DISCLOSURES
Your Directors have made necessary disclosures, as required under
various provisions of the Act and Clause 49 of the Listing Agreement.
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
ONGC being a Government Company, the provisions of section 197(12) of
the Companies Act, 2013 and relevant Rules shall 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 is
decided by the Government of India. The salary and terms and conditions
of the appointment of Chief Financial Officer (CFO) and Company
Secretary, KMPs of ONGC, is in line with the parameters prescribed by
the Government of India. Performance Related Pay of Functional
Directors and other employees including CFO & Company Secretary (KMPs)
is in line with the guidelines of Department of Public Enterprises,
Government of India.
31. ENERGY CONSERVATION
The information required under Section 134(m)of the Companies Act,
2013, read with the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988, is annexed as Annexure - ''F''.
32. 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 Mehra Goel & Co, New Delhi, M/s
G D Apte & Co, Mumbai, M/s Lodha and Co, Kolkata, M/s Varma & Varma,
Chennai and M/s Khandelwal Jain and Co, Mumbai Chartered Accountants
were appointed as joint Statutory Auditors for the financial year
2014-15. The Statutory Auditors have been paid a remuneration of Rs.
25.01 million (previous year Rs. 22.92 million) towards audit fee and
certification of Corporate Governance Report.The above fees are
exclusive of applicable service tax and reimbursement of reasonable
travelling and out of pocket expenses actually incurred.
34. Auditors'' Report on the Accounts
The Comments of Comptroller & Auditor General of India (C&AG) form part
of this Report and are attached as per Annexure-''G''. There is no
qualification in the Auditors Report and there are no supplementary
comments by C&AG under section 143(6)(b) of the Companies Act, 2013 on
the Financial Statements of the Company. Notes to the Accounts referred
to in the Auditors Report are self-explanatory and therefore do not
call for any further comments. You would be pleased to know that your
Company has received Nil comments from C&AG and Statutory Auditors for
the year 2014-15. This is the ninth year in a row that the organization
has received Nil comments.
35. COST AUDIT
Six firms of Cost Accountants were appointed as Cost Auditors for
auditing the cost accounts of your Company for the year ended 31st
March, 2015 by the Board of Directors. The Cost Audit Report for the
year 2013-2014 has been filed under XBRL mode on 25.09.2014 which was
well within the due date of filing (i.e.30.09.2014).
POLICY ON DIRECTORS'' APPOINTMENT ETC.
ONGC being a Government Company, the provisions of section 134(3)(e) of
the Companies Act, 2013 shall not apply in view of the Gazette
notification dated 05.06.15 issued by Government of India, Ministry of
PERFORMANCE EVALUATION ONGC being a Government Company, the provisions
of section 134(3)(p) of the Companies Act, 2013 shall not apply in view
of the Gazette notification dated 05.06.15 issued by Government of
India, Ministry of Corporate Affairs.
APPOINTMENTS / CESSATION ETC
Since the 21st Annual General Meeting held on
19.09.2014, Shri P Uma Shankar, Shri S. Ravi and Shri R.K. Singh
(Independent Directors) vacated their office on 19.09.2014 (FN) in
terms of Section 161 of the Companies Act, 2013. The tenure of Prof.
Samir Kumar Barua and Shri Om Prakash Bhatt (Independent Directors)
concluded on 13.12.2014.
On being appointed as Managing Director of ONGC Videsh Ltd, Shri N K
Verma relinquished the charge of Director (Exploration), ONGC on
27.08.2014. Shri U.P Singh, Additional Secretary (Exploration),
Ministry of Petroleum & Natural Gas, joined the Board as Government
nominee Director on 16.10.2014 in place of Shri Aramane Giridhar. Shri
A.K. Diwivedi took over as Director (Exploration) on 16.03.2015.Shri A.
K. Banerjee, relinquished the charge of the post of Director (Finance)
on attaining the age of retirement on 30.04.2015. Ms. Atreyee Das was
appointed as Government Nominee Director on 14.05.2015.
On being appointed as Secretary, Department of School Education and
Literacy, Dr. S.C. Khuntia, Special Secratary, MoP&NG and Government
nominee resigned from the Directorship of ONGC on
26.06.2015. Shri Ashok Varma, Director (Onshore) relinquished the
charge of Director (Onshore) on 31.07.2015 on attaining the age of
superannuation and Shri V P Mahawar, who has been appointed as Director
(Onshore) by Ministry of Petroleum & Natural Gas, Government of India,
took over charge on 01.08.2015. The Board places on record its deep
appreciation for the excellent contributions made by Shri P. Uma
Shankar, Shri S. Ravi, Shri R.K. Singh, Prof. Samir Kumar Barua, Shri
Om Prakash Bhatt, Shri N. K. Verma, Shri Aramane Giridhar, Shri A. K.
Banerjee, Dr. S.C. Khuntia and Shri Ashok Varma during their tenure.
The strength of the Board of Directors of ONGC as on 1st August, 2015
is 9, comprising 6 Executive Directors (Functional Directors including
CMD) and 3 Non- Executive Directors i.e. two Government nominees and
one Independent Director. Ministry of Petroleum & Natural Gas has been
requested to appoint requisite number of independent Directors to
comply with the provisions of Companies Act, 2013 and Listing
Agreement. A total of 13 meetings of the Board of Directors of ONGC
were held during the financial year 2014-15.
Details of other Key Managerial Personnel as per Rule 8 (5) (iii) of
The Companies (Accounts) Rules, 2014:-
Shri A. K. Srinivasan was appointed as Chief Financial Officer
w.e.f.06.05.2015 and as Key Managerial Personnel w.e.f. 28.05.2015.
Shri N. K. Sinha, Company Secretary superannuated on 30.06.2015 on
attaining the age of retirement. Shri V. N. Murthy took over as Company
Secretary on 01.07.2015.
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
Your Directors thank all share-owners, business partners and members of
the ONGC Family for their faith, trust and confidence reposed in ONGC.
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
For and on behalf of the
Board of Directors
Place : New Delhi (Dinesh Kumar Sarraf)
Date : 1st August, 2015 Chairman & Managing Director