Oil and Natural Gas Corporation Ltd.

On behalf of the Board of Directors of your Company, it is my pleasure to present the 29^th Annual Report of Oil And Natural Gas Corporation Limited (ONGC/ the Company) and its Audited Financial Statements for the year ended March 31, 2022 (FY’22), together with the Auditors’ Report and Comments on the Financial Statements by the Comptroller and Auditor General (CAG) of India.

As the global economy recovers from the stress of COVID-19 pandemic, supply chain disruptions, extreme weather events, energy supply crunch and geo political upheavels have caused turbulence in energy sector. With global demand rebounding and outpacing supply, energy prices have increased substantially from the last years level. Years of inadequate financial returns coupled with low commodity prices and surge in net zero aspirations have depressed investments in fossil fuels. The whittled down spare capacity has contributed to the present demand supply mismatch and the same is not expected to moderate in 2022.

Your Company, on its part, has been maintaining the pace of capital spending and project execution, sustaining its production, optimizing operating costs to improve the value proposition for all stakeholders while looking for cleaner ways of doing its business.

Your Company, along with its group companies, has registered yet another year of robust performance and made substantial progress on most of the priority areas.

Despite the challenges faced by the Company during the second wave of pandemic and the consequent logistic constraints, your Company’s standalone production during the year was 40.453 Million Metric Tonnes of oil and oil equivalent gas (MMTOE) (against FY’21 production of 42.369 MMTOE ).

• Crude oil production, including share of JV production, was 21.707 Million Metric Tonnes (MMT) during FY’22 against 22.533 MMT during the previous year.

• Natural gas production, including share of JV production, was at 21.680 Billion Cubic Metres (BCM) against 22.816 BCM during FY’21.

• Value Added Products (VAP) production during FY’22 was 3.089 MMT against 3.120 MMT during FY’21.

Backed by an intensive and continuous exploration programme, your Company declared four oil and gas discoveries (two on-land and two offshore) during FY’22.

During FY’22, accretion of In-place volume and EUR (Estimated Ultimate Reserves) in 2P category from ONGC operated areas in India has been 90.50 MMTOE and 40.82 MMTOE respectively. Reserve Replacement Ratio (RRR - 2P EUR) from domestic fields was 1.01 with respect to 2P reserves. Your Company has maintained Reserve Replacement Ratio (2P) of more than 1 for the 16th consecutive year.

Your Company has four direct subsidiaries, namely ONGC Videsh Limited (OVL), Mangalore Refinery and Petrochemicals Limited (MRPL), Hindustan Petroleum Corporation Limited (HPCL) and Petronet MHB Limited (PMHBL).

Your Company also has nine Associates/ Joint Ventures, namely ONGC Petro additions Limited (OPaL), ONGC Tripura Power Company Limited (OTPC), ONGC TERI Biotech Limited (OTBL), Dahej SEZ Limited (DSL), Mangalore SEZ Limited (MSEZL), Indradhanush Gas Grid Limited (IGGL), Pawan Hans Limited (PHL), Petronet LNG Limited (PLL) and Rohini Heliport Limited (RHL).

1. Major Highlights: FY’22

The major highlights during FY’22 are:

i. Revenue from operations in FY’22 stood at ''1,103,454 million against '' 681,411 million in FY’21.

ii. Net profit in FY’22 was ''403,057 million against ''112,464 million during FY’21 mainly due to higher realisation on Crude Oil, Natural Gas and VAPs.

iii. Exploratory well Hatta#3 in Son valley sector of Madhya Pradesh produced gas@62,044 m3/day on testing and confirmed commercial production potential of Vindhyan Basin. With development and production, this would be the ninth producing Basin of India.

iv. Production of Cluster-7 & 8 fields of Mumbai High Asset increased from 5,700 bopd on 1 April 2021 to 16,800 bopd on 28 January 2022.

v. Production commenced from the second deep-water gas well, U1B, the deepest well of the Cluster- II KG-DWN 98/2 on 28 August 2021 with initial production of ~ 0.65 MMSCMD.

vi. Cambay Asset achieved the highest ever production level of 763 TPD on 9 and 30 March, 2022. It also achived highest ever annual oil production of 0.241 MMT during FY’22.

vii. Cauvery Asset achieved the highest gas production of 33.1 LCMD after a span of 3 years on 1 October 2021 with the peak production of 15.9 LCMD of gas from Kanjirungudi field.

viii. Assam Asset scaled up oil production in Lakhmani Area (consisting of Lakhmani, Laiplingaon, Kuargaon and Demulgaon Field) to the level of 550 TPD, a production milestone achieved after a long gap of 14 years.

ix. Institute of Engineering and Ocean Technology received a patent on Process of Preparation of corrosion inhibited completion fluids for Oil and Gas Wells on 7 April 2021.

x. Regional Geoscience Laboratory, Vadodara received a national patent for Formulation of Viscosity Reducer and Flow Improver for Asphaltic and Waxy Crude Oil Emulsions.

xi. Gas Hydrate Research & Technology Centre, ONGC, Panvel signed an agreement with IOC R&D Centre for synthesis and evaluation of suitably functionalized nano-materials for use as Kinetic Inhibitors for Gas Hydrates.

xii. ONGC eases business procedures and committed procurement worth ''30,0000 million In support of ‘Aatmanirbhar Bharat’ initiative during FY’22.

xiii. First exploratory well in OALP Block CB-ONHP-2018/2 awarded under new HELP regime drilled for exploring the deeper new Mesozoic play from Cambay basin. Two appraisal wells in DSF-II contract areas of RJ/ONDSF/ Chinnewala /2018 & MB/OSDSF/ CA/2018 were also drilled during the year.

xiv. Launching of an online platform to digitalize trading for Integrated Trading Desk of group companies, on 1 October 2021.

xv. MoU with Saudi Aramco on 18 November 2021 during Dubai Expo 2020 for collaboration and cooperation in energy-related areas.

xvi. MoU with Solar Energy Corporation of India (SECI) to develop renewable energy-based power, ESG (Environment, Social, and Governance) projects, for achieving green energy objectives on 2 December 2021 in New Delhi.

xvii. ONGC started e-auctioning for domestic Gas on 12 April 2021.

initiatives resulted in improved operational efficiencies and cost optimization for your Company.

2. Global Recognitions

Your Company has been recognised at various national and international forums, list of Awards and Accolades is annexed as Annexure - A.

3. Details of discoveries

During the year, your Company has notified four new discoveries in acreages operated by it.

Details of exploratory efforts made by your Company were as under:

5. Award of Blocks

During FY 2021-22, your Company participated in the OALP rounds VI & VII and emerged as the highest bidder winning an acreage measuring 34,097 Sq. Km. in OALP Round VI against the total offered area of 35,346 Sq. Km. ONGC emerged as sole bidder in 3 blocks in OALP-VII and is expecting an addition of more than 9300 Sq. Km.

Currently, all the awarded OALP blocks are in exploratory phase. As on 1 April 2022, a total 3,047.66 LKM of 2D seismic data and 8,965.05 SKM of 3D seismic data has been acquired and one exploratory well drilled in OALP Blocks.

6. EOR Proposals

Your Company has been consistently expanding its EOR portfolio. Under the Enhanced Recovery (ER) policy, 211 fields of ONGC located in onshore and offshore areas were considered for screening, 33 ER proposals were submitted and approvals for 17 have already been received.

ONGC for the first time executed a Pilot polymer flood project in heavy oil field of Mehsana. The Pilot was completed on 15 September 2020 and was successful in achieving all its objectives. The incremental gain is 5,057 m3 in 13 Months against FR envisaged 4,960 m3. The closure report was approved by DGH on 8 November 2021.

7. Monetization of Discoveries

Out of four new discoveries made during the financial year, two on-land discoveries viz. South Velpuru-2 and Gopavaram Deep-1 (GMD-AA) were monetized. Besides, four (4) other discoveries of previous years i.e. B-59-1, WO-24-3, D-30/ D-30-2 (D-30-A) and GS-71-2 were also monetized.

8. Major Projects Completed

During the FY’22, following two major projects (1 Development & 1 Infrastructure) with an investment of around '' 38,071.13 million were completed:

9. Drilling of Wells

Your Company drilled 434 wells during FY’22 against 480 wells during FY’21. 78 of these wells were exploratory wells, while the balance 356 wells were development wells including side-track wells. Second wave of Covid pandemic, Cyclones Tauktae & Yaas and LAQ issues in CBM and Karaikal impacted the drilling activities of your Company. The major highlights of Drilling operations during the year were:

• Drilling Rig IPS-M700-II of Ahmedabad Asset created a new milestone and completed well #AMLO(TD-1622m) with a commercial speed of 8224 M/RM, highest ever by any drilling rig of ONGC since inception.

• Implemented Casing While Drilling (CWD) successfully in five wells of Mumbai to mitigate the issues of drilling for 20 casing after 30 conductor piling.

• Tested two Ultra Deep wells in water depth of more than 2800m - #UD-AF (Qgas-765,625 m3/d thru 26/64 choke) & #UD-AG (Qgas-742,634 m3/d thru 28/64 choke) in Cluster-III of KG-DWN-98/2 Block in East Coast.

• Completions of two gas wells #U-1-B (WD 1407m) & #U-1-A-Shift (WD 1250m). Production from #U-1-B commenced from 27 Aug 2021.

11. Production from overseas assets - ONGC Videsh Limited

Your Company’s overseas operations are carried out exclusively through its wholly owned subsidiary, ONGC Videsh Limited (OVL), which in turn conducts its operations either directly or through its subsidiaries. Production from overseas assets during FY’22 was 12.330 MMTOE in comparison to 13.039 MMTOE achieved during FY’21; a decrease of approx. 5.4%. The oil production during FY’22 was 8.099 MMT; 4.8% less compared to the production of 8.510 MMT during FY’21. The gas production of 4.231 BCM during the year was 6.6% less compared to FY’21 production of 4.529 BCM..

12. Other Exploration Initiatives/Activitiesa) National Seismic Programme (NSP):

To accomplish its mandate of 2D seismic data Acquisition, Processing & Interpretation (API) in un-appraised areas of Indian sedimentary basins grouped in 11 on-land sectors, your Company completed data acquisition of 41,714.37 LKM and data processing and interpretation of 41,745.7 LKM. The program has been completed and all API deliverables have been submitted to NDR, DGH. This data in turn would contribute in augmenting domestic production of oil and gas.

b) Basement Exploration:

As a part of concerted excploration efforts for Basement Play, a total of 12 wells were drilled , which included 3 wells (BH-80, SD-15 & HR-1) in Mumbai Offshore, 2 wells (Charali-53 & Borhola-67) in Assam Shelf and 7 wells (Padra-150, Padra-152, Padra-155, Padra-158, Padra-161, Padra-163 and CBONH182A-1) in WON Basin.

Out of these, five wells (Padra-152, Padra-158, Padra-161, BH-80, HR-1) proved oil bearing and one well (SD-15) proved gas bearing. In addition, six wells drilled during FY’21 (2 in WON Basin, 4 in Mumbai Offshore) were tested during the year. Out of these, well Padra-146 (WON Basin) proved to be oil bearing in Basement section (Trap) and HC indications were observed in wells BH-81 & BH-82 (Mumbai Offshore) in Basement section.

HP-HT Exploration:

High pressure- High Temperature (HP-HT) and Tight reservoirs have been an exploration and development challenge for your Company. Your Company is striving hard in the field of HP-HT due to bore hole complications, fluid design, high-cost drilling technology including HP-HT cementing, well construction and other reservoir engineering issues. In ONGC operated areas, HP-HT regime is encountered in areas like Periyakudi, Bhuvanagiri in Cauvery Onland, Kottalanka, Nagyalanka, Bantumilli South and Malleswaram in KG Onland. Yanam in KG Shallow offshore, G-4-6, D-33 and GS-OSN-2004/1 in Western Offshore were also classified as HP-HT reservoirs. Additionally, high pressure regime is often encountered in certain areas of Assam Arakan Fold Belt.

During recent campaign of high-tonnage hydro-fracturing (HF) in Malleswaram field, significant gain in oil production could be achieved.

13. Exploration and Production from Unconventional Sourcesa) Coal Bed Methane (CBM):

Of the 9 original blocks that the Company was awarded as part of the CBM bidding rounds including nomination, your Company relinquished 5 blocks on the basis of data generated from exploratory efforts and has been operating 4 blocks (Jharia, Bokaro and North Karanpura in Jharkhand and Raniganj in West Bengal) where exploration activities have been completed. Developmental activities are at an advanced stage in three of these blocks viz. Bokaro, Jharia and North Karanpura.

b) Gas Hydrate Exploration Program

Your Company has been an active contributor on gas hydrates exploratory research under National Gas Hydrate Program (NGHP) of Govt. of India. ONGC, as a Consortium Member of National Gas Hydrate Program of GoI has played a significant role in G&G studies for the identification of sites for NGHP-01 and NGHP R&D Expedition-02. Based on the results of NGHP-02 and subsequent studies and review by international experts, KG-DWN-98/5 has been found suitable for pilot production test. Various studies like sand control measures, well design, reservoir and production simulation modelling as prerequisite for the pilot production have been completed. Your Company would undertake pilot production test in deep waters for gas hydrate.

ONGC had signed an MoU with initial validity of five years on 02.03.2021 with Skolkovo Institute of Science and Technology (Skoltech), Moscow for Collaborative Studies to establish cooperation in the Gas Hydrate Research & Technology applicable to Indian Basins. ONGC has also signed an MOU with IOC R&D for development of nanoparticles as kinetic inhibitors in the dissociation of gas from gas hydrates under reservoir conditions.

14. Drilling Services

There has been continuous induction of new technologies in Drilling Services. Some of these new technologies, which are now being used extensively are:

a) Managed Pressure Drilling (MPD): MPD, used to precisely control the annular pressure profile throughout the wellbore, was inducted first time in ONGC at Tripura Asset for mitigation of down-hole complications. Two more wells ROAH_Sub, ADAT were successfully completed with this technology during FY’22.

b) Casing While Drilling: In view of 30 conductor piling issues and further drilling for 20 casing, implemented Casing While Drilling (CWD) in five wells of Mumbai.

c) Auto-Driller: Automatic bit feeding system (eWildcat TM 2.0) implementated in 5 drilling rigs (Type-II & above rigs of ONGC) to enhance the drilling efficiency.

d) Introduction of Micro Bubble technology: Eco-friendly Micro Bubble technology developed by IDT is used to drill reservoirs with low pressure (4.5-6.0 ppg). Same has been used in wells of Assam, Cambay and Mumbai.Since this technology is indigenous and found to be cost effective, it is planned to be used extensively in sub-hydrostatic reservoirs.

e) Introduction of System LCM: For controlling of mud losses in Reservoir and Non-reservoir sections, System LCM Drillezy and Fracseal were introduced on pilot scale to drill loss prone zone. Based on the success, Fracseal is being used to drill non reservoir loss prone zone as a preventive measure. Barablend LCM pill was used to successfully remediate Activity/Lost circulation problem and enabled testing of the basement formation Western Offshore Basin.

Your Company is also implementing technologies like Liner While Drilling, Axial Oscillation Tool for friction reduction & improved axial force transfer in drill string, SoftSpeed-II and E-Drilling predictive analysis.

15. Infrastructure Up-gradation:

Your Company is in the process of up-gradation of existing resources with State-of-Art equipment to remain competitive in the global E&P business. It has already taken actions to refurbish, upgrade and replace its Onshore/Offshore drilling rigs, Workover rigs, Cementing units, Crisis Management equipment in phases.

Major Infrastructure Up-gradations during the year were as under:

• 38 new Well Stimulation units inducted thereby enhancing the Frac Setups at Rajahmundry, Assam and Ahmedabad.

• Twenty seven (27) drilling rigs are being replaced by new generation hi-tech rigs in phased manner. Three new generation hi-tech drilling were commissioned during 2021-22 while 4th rig was commissioned in April 2022. Further, six new generation rigs are under different stages of commissioning.

• 4 Rigs out of 20 Automated Hydraulic Workover rigs are under various stages of commissioning at Mehsana, Ahmedabad, Assam and Ankleshwar.

• Acquisition of new 24 Well Stimulation units for onshore (16 Replacement and 8 new) in progress.

• 9 cementing units and 9 batch-mixtures replaced till 31st March 2022. Further, 24 cementing units are under procurement.

16. Information Technology

Your Company has carried out several Business Process improvements in the field of IT in FY’22. Major Process improvements were as follows:

Vendor Invoice Management (VIM): End-to-end invoice processing system including capturing/extracting the information from hardcopies/ softcopies of Invoices using OCR technology with minimal manual intervention.

Governance, Risk & Compliance (GRC): GRC module is implemented with complete RM module with fresh identification of Risks, Risk Analysis and Risk Response-Planning & monitoring.

Enterprise-wide SCADA System implemented in ONGC covering production installations and drilling rigs. Following two upgrades are being implemented with latest hardware and software with enhanced cyber security features:

Production SCADA upgrade covering all onshore & offshore installations and is near completion

Real Time Data Monitoring and Management (RTDMM) system for onshore drilling rigs on subscription basis. The new system will enable Real time data acquisition, aggregation and transmission from various production installations and drilling rigs to central location, Delhi and Disaster Recovery Centre, Vadodara for visualization through webservices. The system has well control feature also for offshore wellhead platforms. Solution implemented in 46 rigs of 48 rigs notified.

OSI-PI Historian is also established which will enable various advanced analytical tools to access historical and real time data thereby ensuring safe operation of these installations.

Block chain solution implemented to streamline contract management for Gas Sales. This solution has enabled monitoring the Gas Supply Agreements in real-time with an automated agreement management turn-key system covering all existing 130 contracts with provision for integrating future contracts. This has resulted in increased transparency and mutual trust amongst all stakeholders.

Digital transformation journey has been accelerated with the identification of 68 digital initiatives. In the initial phase, 6 initiatives are being taken up for implementation. Digital Centre of Excellence has been setup which will act as the change catalyst for the digital journey of your company on a long-term basis. Simultaneously your company has taken a head-start with implementation of AI/ ML based Common Analytics platform, which provides predictive and perspective cross domain analytics across various data sources in ONGC.

17. Information Security:

In order to strengthen the information security system, your Company has implemented following systems during FY’22:

• Enterprisewide Access Control System (EACS) for strengthening physical security covering 324 sites spread across the country.

• Information Security Operations Center (ISOC) for securing the digital infrastructure.

18. Financial Highlights:

Your Company earned Profit After Tax (PAT) of '' 403,057 Million, up by 258.39% over FY’21 (''112,464 Million) and registered Revenue from Operations of ''1,103,454 Million, up by 61.94% over FY’21 (''681,411 Million).

Highlights - Standalone Financial Statements

• Revenue from Operations : ''1,103,454 Million

• Profit After Tax : ''403,057 Million

• Contribution to Exchequer : ''493,316 Million

• Return on Capital Employed : 29.01%

• Debt-Equity Ratio : 0.03:1

• Earnings/ Share : '' 32.04

• Book Value/ Share : '' 189

19. Change in Share Capital:

During the year under review, there is no change in capital structure of the Company.

20. Dividend

Your Company has paid interim dividend of ''5.50 per share of ''5 each (@110%) in November 2021 amounting to ''69,192 million and ''1.75 per share of ''5 each (@35%) in February 2022 amounting to ''22,015 million. The Board of Directors has recommended final dividend of '' 3.25 per share of ''5 each (@65%) amounting to ''40,886 million subject to approval of shareholders. The total dividend pay-out for FY’22 would be '' 132,093 million with pay out ratio of 32.77%.

The revised Dividend Distribution policy may be accessed at the web link: https://www.ongcindia.com/wps/wcm/connect/en/ investors/policies.

Revision in the said policy was made considering that ONGC is currently having only one class of equity shares as also to provide more flexibility to the Board w.r.t. decisions regarding declaration of dividend.

21. Financial Accounting and Secretarial Standards

The Financial Statements of the Company for FY’22 have been prepared in compliance with the applicable provisions of the Companies Act, 2013 including Indian Accounting Standards (Ind AS) and Guidance Note on Accounting for Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India.

Secretarial Standards:

The Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

22. Loans, Guarantees or Investments

Your Company is engaged in Exploration & Production (E&P) business which is covered under the exemption provided under

Section 186(11) of the Companies Act, 2013. Accordingly, the details of loans given, investments made or guarantee or security given by the Company to subsidiaries and associates were not reported.

23. Deposits:

Your Company has not accepted any deposit during the year. Further, there was no outstanding deposit and/or unpaid or unclaimed principal amount or interest against any deposit either at the beginning or at the end of FY’22.

24. Credit Rating of Securities:

Details of the Credit Ratings of Debt Securities of the Company as on 31 March 2022:

25.Investor Education and Protection Fund (IEPF)

Details of transfer of unclaimed dividends and eligible shares to IEPF have been placed in the Corporate Governance Report, which forms part of the Annual Report.

26. Related Party Transaction

Particulars of contracts or arrangements with related parties as referred to in Section 188 of the Companies Act, 2013 provided in specified form AOC-2 is enclosed as Annexure - B.

27. Subsidiaries:A. ONGC Videsh Limited

ONGC Videsh Ltd, the wholly-owned subsidiary of your Company for carrying on E&P activities outside India, had participation as on 1 April 2022 in 35 oil and gas projects in 15 countries., viz. -Azerbaijan (2 projects), Bangladesh (2 Projects), Brazil (2 projects), Colombia (7 projects), Iran (1 project), Iraq (1 project), Libya (1 project), Mozambique (1 Project), Myanmar (6 projects), Russia (3 projects), South Sudan (2 projects), Syria (2 projects), UAE (1 project), Venezuela (2 projects) and Vietnam (2 projects).

ONGC Videsh portfolio comprised of 14 producing, 4 discovered/ under development, 14 exploration and 3 pipeline projects. ONGC Videsh was Operator in 12 projects, Joint Operator in 6 projects and non-operator in the remaining 17 projects. ONGC Videsh share in production of oil and oil equivalent gas (O OEG) is provided under the heading ‘Production from Overseas Assets by ONGC Videsh’ in para 11 above.

Gross consolidated revenue of ONGC Videsh for FY’22 was ''173,220 million (against ''119,558 million during FY’21) and the PAT registered was ''15,892 million during FY’22 as against ''18,910 million during FY’21. The decrease in profit is mainly on account of higher impairment.

Significant events in the area of Exploration & Operations:

a. CPO-5 Block:

Development wells Indico-4 & Indico-5 drilled in January and March 2022 respectively and both wells are now producing. Thus a total of 11 exploratory wells have been drilled, with 5 wells commercially producing hydrocarbons. CPO-5 block ended the year with a production of 21,000 bopd, making it a significant exploratory success for ONGC Videsh . DOC (Declaration of commerciality) for Indico Field submitted to ANH on 19 August 2021 & Field Development Plan on 18 November 2021.

b. Lower Zakum Concession:

To achieve production of 450 KBD by 2025 and 500 KBD by 2028, execution of 34 New Main Gas Line (NMGL) project to

accommodate excess gas beyond capacity of existing 18 Main Gas Line has been taken up. The line is expected to be ready by end of 2023.

c. ACG Azerbaijan:

ACG achieved milestone of 4 billionth barrel of oil production on 18 September 2021. Chirag Gas Lift Project under Chirag Turnaround completed on 23 December 2021 in 23 days and put on full production 2 days ahead of the Schedule.

d. GPOC/SPOC South Sudan:

After a prolonged shutdown since December 2013, First Oil achieved from SPOC on 30 May 2021. Export to Port Sudan and blending into Nile Blend started on 24 July 2021.

e. BM-SEAL-4 Brazil:

BM SEAL-4 Project Development timeline which was earlier postponed by 03 years has been advanced by about 02 years bringing the first oil from June 2029 to March 2027. The DoC of BM-SEAL-4 block was submitted to the regulator (ANP) on 30 December 2021.

f. MECL Colombia:

Nare contract Association has expired on 4 November 2021.

g. Imperial Energy Russia:

Start-up of Associated Petroleum Gas (APG) utilization Plant, Snezhnoye Field: In sync with APG Plant start-up in March 2021, opening of closed high Gas-Oil Ratio( GOR) wells of Snezhnoye field led to increase in oil production by about 1,000 bopd. Booster Compressor was integrated with APG Plant in June 2021.

h. Rovuma Area-1:

Due to the insurgency activities that took place near the project site since 24 March 2021 onwards, operator on 22 April 2021 declared Force Majeure (FM) under Joint Operating Agreement. Subsequently, Area 1 consortium declared FM under Exploration Production Concession Contract on 11 May 2021. Further Area 1 Project also declared FM under other key agreements viz. Area 4 Interface agreements, EPC and EPCI contracts, LNG Sale Purchase Agreements (SPAs), Marine Concessions, Assignments of Exploitation agreements etc.

• The Project site is currently in Preservation mode with no Project personnel permanently allowed on site. Counter insurgency operations by Southern African Development Community forces and Rwandan Security Forces were in progress in coordination with Host Govt Security Forces.

• Operator in December 2021 concluded discussions with EPC & EPCI contractors and agreed on project stoppage and storage costs. Operator indicated confidence to restart the project in H2 of CY 2022.

i. Myanmar A1 & A3:

Mahar Appraisal & Exploration program: Discovery in Mahar prospect, under new exploration program in Block A-3, has added GIIP 1,056 BCF (2C). Currently Reserve estimation of Mahar is in progress. The first gas from Mahar is planned in 2027.

j. Vietnam Block 06.1:

PSC Extension: PSC is expiring on 18 May 2023. Foreign partners are in negotiation with the regulator/Govt. of Vietnam to extend the PSC for further 16 years to exploit clastic reserves.

k. Bangladesh Blocks:

SS-04: Drilling of onshore exploratory well, Kanchan-1X (spudded on 29 September 2021) with a TD of 4230m was successfully completed in line with PSC commitment. The well is plugged & abandoned due to poor hydrocarbon prospectivity.

B. Hindustan Petroleum Corporation Limited (HPCL)

Your Company held 54.90% equity shares in HPCL on 31 March 2022 and HPCL is a Schedule ‘A’, Maharatna, and listed entity. HPCL owns and operates 2 major refineries - one at Mumbai (9.5 million metric tonnes per annum - MMTPA) and the other one at Visakhapatnam (8.3 MMTPA). It also owns and operates the largest Lube Refinery in the country with a capacity of 428 TMT (thousand metric tonne). HPCL has a vast marketing network of Supply & Distribution infrastructure comprising of Terminals, Installations, Tap Off Points, LPG Bottling Plants, Aviation Service Facilities, Lube

Blending plants, Lube depots and various customer touchpoints across the country. HPCL has its Research & Development Centre named ‘HP Green R&D Centre’ in Bengaluru.

During FY’22, HPCL refineries at Mumbai and Visakhapatnam achieved combined refining thruput of 13.97 MMT HPCL achieved sales volume of 39.14 MMT compared to previous year’s sales of 36.59 MMT With Highest ever LPG Sales of 7.7 MMT during FY22, HPCL continued to be India’s second largest LPG marketer registering a growth of 4.4% over FY’21. During the year, HPCL crossed a key milestone of 20,000 Retail Outlets with commissioning of 1,391 Retail outlets during FY22 taking the total Retail Outlets to 20,025. Further, 51 new LPG distributorships were commissioned during the year taking the total number of distributors to 6,243 as of 31 March 2022.

The combined Gross Refining Marging (GRM) for HPCL Refineries for FY’22 worked out to USD 7.19 /bbl compared to USD 3.86 /bbl in the corresponding previous year.

During FY’22, HPCL recorded profit After Tax (PAT) of ''63,826 million as compared to ''106,639 million for the previous year. Revenue from operations for the FY’22 was ''3,738,967 million as compared to ''2,703,263 million during the previous year. HPCL has proposed a final dividend of '' 14 per share for approval of shareholders for FY’22.

C. Mangalore Refinery and Petrochemicals Limited (MRPL)

Your Company held 71.63 % equity shares in MRPL, a Schedule ‘A’ Mini Ratna company and listed entity, which is a single location 15 MMTPA Refinery. Further, HPCL, also holds 16.95% equity shares in MRPL.

MRPL’s refinery is established with a versatile design with complex secondary processing units and a high flexibility to process Crudes of various API, delivering a variety of quality products. Refining Net throughput of MRPL during FY’22 increased by almost 31% to 15.05 MMT against 11.50 MMT during FY’21.

In a remarkable turnaround, MRPL registered a standalone turnover of '' 860,637 million ('' 507,958 million in FY’21) and recorded profit of '' 29,553 million (against loss of ''7,612 million in FY’21) during FY’22.

In FY’22, GRM for MRPL was USD 8.72 /bbl against USD 3.71/ bbl during FY’21. MRPL also achieved a 100.17% capacity utilization against capacity utilization of 76.55% in FY’21.

Highest ever production of Polypropylene (460 TMT), LPG(1049 TMT) and MS ( 1722 TMT) were achieved during FY22. Further, it successfully commissioned its 30 MLD desalination plant in Dec. 2021 which would reduce its dependence to river water.

Amalgamation of ONGC Mangalore Petrochemicals Limited (OMPL) with MRPL:

As a part of reorganization of the Group, OMPL has been merged with MRPL with effect from April 1, 2021 (‘the appointed date’) in terms of scheme of Amalgamation approved by the Ministry of Corporate Affairs vide order dated 14 April 2022.

D. Petronet MHB Ltd (PMHBL)

Your company, together with its subsidiary HPCL, hold equity shares of 49.996% each in PMHBL. With your Company’s holding of 54.9% in HPCL, the extent of its holding in PMHBL comes to 77.44% and makes PHMBL a subsidiary of ONGC. PMHBL owns and operates Mangalore - Hassan - Bengaluru JV pipeline (362.3 Km) to transport MRPL’s petroleum products to various parts of Karnataka State.

PMHBL achieved a thruput of 2.841 MMT in FY’22 against 2.139 MMT in FY’21and reported total revenue of ''1,282 million in FY’22 (''1,113 million in FY’21) and recorded a net profit (PAT) of ''603 million in FY’22 (''518 million in FY’21).

Associates and Joint Ventures:-E. ONGC Petro additions Limited (OPaL)

OPaL is a mega petrochemical project established in Dahej SEZ and incorporated in 2006 for utilizing in-house production of C2-C3 and Naphtha from Hazira and Uran units of your Company. Your Company, GAIL and GSPC held 49.36%, 49.21% and 1.43% of equity shares of OPaL respectively on 31 March 2022.

During FY’22, Revenue from operations of OPaL was ''160,475 million (''114,860 million in FY’21) and posted loss after tax of ''5,347 million against loss of '' 7,974 million in FY’21.

F. ONGC Tripura Power Company Limited (OTPC)

OTPC was incorporated in 2004 as a joint venture of your Company. Your Company held 50% of its shares as on 31 March 2022.

OTPC has a 726.6 MW gas based Combined Cycle Power Plant at Palatana, Tripura with two generating units with equal capacity. The basic objective of the project is to monetize idle gas assets of your Company in landlocked Tripura State and to boost exploratory efforts in the region.

Average Plant load factor for FY’22 was about 65% as unit I was under planned shutdown for annual inspection for 104 days and there was a drop in power generation from 5,090 Million Units (MU) in FY’21 to 4,124 MU in FY’22.

Consolidated revenue from operations during FY’22 was ''12,632 million (''16,456 million in FY’21) and consolidated profit after tax (PAT) was ''1,108 million during FY’’22 (''2,241 million during FY’21).

G. ONGC TERI Biotech Limited (OTBL)

OTBL is a JV incorporated in 2007 by your Company (49.98%) along with The Energy Research Institute (TERI) (48.02%) and the remaining 2% shares are held by individuals. OTBL has developed various Biotechnical Solutions for oil and gas Industry through collaborative researches involving the Company and TERI.

Revenue from operations of OTBL during FY’22 was ''188 million (''270 million in FY’21) and profit after tax (PAT) was ''86 million during FY’22 (''88 million during FY’21).

H. Dahej SEZ Limited (DSL)

DSL, a 50:50 JV of your Company along with Gujarat Industrial Development Corporation (GIDC), was incorporated in 2004 for establishing a multi-product SEZ at Dahej. Your Company has set up C2-C3 Extraction Plant as a value-chain integration project in this SEZ, which serves as feeder unit to OPaL, JV of your Company.

Revenue from Operations of DSL during FY’22 was ''671 million (provisional) against ''624 million in FY’21 (audited) and PAT was ''470 million during FY’22 (provisional) against ''345 million (audited) during FY’21.

I. Mangalore SEZ Limited (MSEZL)

MSEZ is a JV, under Special Economic Zone and was promoted by your Company with an equity stake of 26%. MSEZ, was incorporated in 2006 for development of necessary infrastructure to facilitate and locate industrial establishments. MSEZ is operational since April 2015.

process easier and continuous. The policy enables vendor to offer product at any point of time.

Two rounds of Expression of Interest were floated in January 2021 and January 2022 respectlively. ONGC has localized 14 products through 11 successful development orders, another 16 products are in development by 12 Indian manufacturers. Local vendors have been developed for products like Premium casings and tubing, Solid Control Equipment and Drill Pipes, amounting to annual offtake of nearly ''8,200 million.

Oxygen Concentrators

During the second wave of pandemic, ONGC was entrusted with the responsibility of procurement & supply of 1 lakh Oxygen Concentrators under PM-CARES in the month of May 2021. While 28% (28,337 nos.) were sourced from abroad, balance 72% of Oxygen Concentrators were manufactured by domestic manufacturers (70,863 nos.) There was no domestic manufacturing capacity of Oxygen Concentrators in India at that time. ONGC supported eight domestic manufacturers from PSU, Private, MSE and start-ups sectors to manufacture Oxygen Concentrators of 5 LPM and 10 LPM oxygen discharge capacity. Manufacture and Supply of all 70,863 nos. were completed by these eight manufacturers.

29. ONGC Start-Up Initiative

‘ONGC Start-up Fund’, conceptualized in line with the ‘Start-up India’ initiative, launched by the Hon’ble Prime Minister of India, was established to foster, nurture and incubate new ideas related to energy sector. The Fund supports and promotes an ecosystem in the Energy Sector for entrepreneurship among the younger Indians.

ONGC Start-Up Fund supported 15 start-ups from energy sector. The financial commitment to these Start-Ups was ''486 million .

30. Health, Safety and Environment (HSE)

ONGC accords topmost priority to the Health, Safety and Environmental (HSE) management by carrying out its operations ensuring zero harm to the people or the environment. Operations of ONGC, mainly exploration and production activities, are highly hazardous and risky. HSE in ONGC’s operations is guided by HSE Policy and HSE management system. In addition there is also dedicated Environment Policy and e-waste policy.

ONGC in order to maintain highest standards, goes beyond the Regulatory requirements and practices proactive HSE Management System. The HSEMS is based on International Standards, ISO 9001, ISO 45001 and ISO 14001.

HSE Initiatives:

a) Compliance to HSE management systems, as well as to prevalent rules, regulations, guidelines and standards is checked during internal audits, being conducted by multi-disciplinary teams of the Company. The same are also checked by external authorities like Oil Industry Safety Directorate (OISD) and Directorate General of Mines Safety (DGMS).

i. Despite COVID-19 challenges, 292 ISAs were conducted in 202122, against a target of 274. The overall compliance status of ISA observations as on 31 March 2022 was 94.19 per cent.

ii. OISD, conducted audits at 76 Installations in 2021-22. The overall compliance status of the observations raised by OISD as on 31 March 2022 was 92.02 per cent.

iii. DGMS, carried out inspections at 81 Installations in 2021-22. The overall Compliance status for the contraventions raised by DGMS as on 31 March 2022 was 97.38 per cent.

b) DNV GL Energy India Pvt. Ltd. has been engaged to advise ONGC on HSE Management. The objective of this project is to identify the current gaps in the safety management system, assessment of the overall safety culture of the organization and take actions to mitigate these gaps and improve the safety culture. The pan ONGC project shall be carried out in three phases during a period of eighteen months. The first phase was completed on 6 February 2022 and the second phase has already commenced.

c) As part of employee engagement program, ONGC conducted a Safety Perception Survey from 1 to 31 December 2021. Nearly 14,217 ONGC employees and 6,396 secondary workforce participated in the survey. Based on feedbacks of the participants, steps are being taken to further strengthen the safety management system and safety culture of the organization.

d) During 2021-22, 17,154 mock drills were conducted, including 17130 ERP (Emergency Response Plan), 9 Onsite DMP (Disaster Management Plan), 12 Offsite DMP and 3 RCP (Regional Contingency Plan) mock drills.

e) Mines Vocational Training (MVT), a mandatory training as per Mines Act, is being imparted to both employees and contract personnel through in-house training centres. MVT was provided to 3,973 personnel (1,912 Company Employees and 2,061 Contract Personnel) in 2021-22.

f) In order to give impetus to near miss reporting and timely closures, awards are conferred for the best performing work centres, for motivating the Near Miss Reporting and their timely closure, every month.

g) Every quarter, Safety Champion and Safe Installation awards are being declared by Assets/ Plants/ Basins.

h) Implemented SAP based E-PTW (Electronic Permit to Work) which maintains system based checks & balances, eliminates possibility of bypass of procedures and creates trail of documentation for data analysis.

i) HSE Benchmarking of all ONGC installations has been done on various HSE parameters in SAP by designing a HSE Index.

j) The processes of MoC (Management of Change) has been streamlined and SAP based MoC module has been developed for ensuring adherence to MoC procedures.

k) Environmental Clearances: ONGC received 9 Environment Clearances (ECs) & 4 EC validity extensions for drilling of 55 exploratory wells, 33 exploratory/development wells and Conversion of 37 exploratory wells to development wells.

l) Waste Management

I. Waste Water Management: ONGC monitors the waste water usage and maintains the quality of effluent discharged conforming to statutory requirements specified for discharge of treated effluent at surface/ subsurface. The Company has 41 number of Effluent Treatment Plants across onshore work centres to treat approx. 104,000 m3/day of waste water produced during E&P operations. For Offshore effluent treatment, Produced Water Conditioners (PWCs) have been installed at process platforms. Sewage Treatment Plants for treatment of sewage water generated are also provided at offshore facilities.

II. Solid Waste Management: The Solid Waste generated in the form of oily sludge/oil contaminated soil are treated using bio-remediation technique in which oil eating consortium of bacteria is used to break down hazardous substances into non-toxic substances, thereby ensuring environmentally safe disposal of waste. It is ensured that the Total Petroleum Hydrocarbon (TPH) of the treated oily sludge

is less than 0.5% (5000 ppm) in consonance with the Hazardous and Other Wastes (Management and Trans-boundary Movement) Rules, 2016. During FY 2021-22, 26,361 Metric Tons of oily sludge/ oil contaminated waste has been bio-remediated.

m) Oil Spill Management in Offshore operations:

ONGC has a robust oil spill management system to address oil spills ranging from minor to significant volumes. The Indian Coast Guard (ICG) is designated as a central coordinating authority by the Government of India for combating oil spills in Indian waters and undertaking oil spill prevention and control. As per the National Oil Spill Disaster Contingency Plan (NOS-DCP) promulgated by ICG, ONGC is maintaining its own Tier-I oil spill response equipment and manpower onboard multi-support vessels in its operational area. For Tier-II level oil spill, ONGC is relying on Indian Coast Guard and ONGC’s mutual aid partners and for Tier-III oil spill, ONGC is maintaining participant membership of Oil Spill Response Limited (OSRL), UK, through which ONGC is having guaranteed response and access to OSRL’s worldwide resources comprising of Booms, Skimmers, Oil Spill Dispersants stockpile, storage equipment, specialized manpower etc.

In addition, ONGC has also developed its own oil spill contingency plan to deal with oil spill incidents and eventualities. ONGC conducts internal oil spill mock drills and also participates in regional and national level mock drills organized by the Indian Navy and Indian Coast Guard. Annual returns on preparedness for oil spill response is being filed annually to ICG.

31.Carbon Management and Sustainable Development

Sustainable Development is the standard template in the Company and this finds expression in our commitment to continually enhance the benchmarks of economic, environmental and social performance. The major endeavours towards corporate sustainability were as under:

Clean Development Mechanism (CDM):

Your Company had 15 CDM projects registered with the United Nations Framework Convention on Climate Change (UNFCCC) under the Kyoto protocol since 2006.

ONGC is also continuing the Verification/Renewal of existing CDM projects as well as finding opportunities for Registration of new CDM projects.

Greenhouse Gas (GHG) Accounting and Mitigation:

ONGC aims to reduce GHG emissions by focusing on improved energy efficiency. The scope-1 and scope-2 emissions during FY’22 was 9.136 MMTCO2e a reduction of about 3% from the previous year. Verification of the same would be taken up during FY’23.

Global Methane Initiative (GMI):

The GMI is an action-oriented initiative from United States Environment Protection Agency (USEPA) to reduce global fugitive methane emissions to enhance economic growth, promote energy security, improve the environment, and reduce greenhouse gases emission. During FY’22 survey was conducted at Ankleshwar Asset and C2- C3 Plant.

Solar and Wind energy initiatives:

The total installed capacity of renewable energy as on 31 March 2022 was about 184.3 MW (Solar: 31.3 MW and Wind: 153 MW)

ONGC has also signed an MoU with SECI for Renewable Energy Projects in Solar, Wind (onshore), Solar Parks, EV Value Chain, Green Hydrogen, Storage etc.

Replacement of conventional lights with LED lighting:

In line with the government of India’s call for promoting efficient energy use (Ujala Scheme), ONGC entered in to an MoU with Energy Efficiency Services Limited (EESL for replacement of all conventional lights in ONGC in a phased manner. However, incandescent lamps, tube lights and CFLs were immediately replaced. During FY’22, ONGC installed 41,000 LED lights making a total of around 351,000 LED lights installed so far by ONGC. This has enabled ONGC to save around 75.9 million electricity units annually, realizing annual savings of ''531 million.

Micro Turbines and Dynamic Gas Blending system:

As part of sustainability initiative, 05 Micro Turbines of aggregate capacity 460 KW and 02 Dynamic Gas Blending systems (in diesel engines of drilling rig) were taken up in different locations of ONGC taking the total to 7 Micro Turbines and 6 DGB’s.

Carbon Capture, Storage and Utilisation (CCSU)

Carbon Capture, Storage and Utilization (CCSU) is a critical CO2 emission abatement technology that can prevent large quantities of CO2 from being released into the atmosphere. Considering its benefits, ONGC entered into an MoU with Indian Oil Corporation Limited (IOCL) for CO2 based Enhanced Oil Recovery (EOR). Under this initiative, the CO2 captured from the IOCL’s Koyali refinery will be utilized for EOR from the depleting oil fields of ONGC in Gandhar field, near Vadodara. The project has the potential for sequestrating 5 to 6 million TCO2 by the year 2040.

Sustainable Water Management

ONGC adopted the policy of Sustainable Water Management (SWM) in its water management practices and also modified its policy on Rainwater Harvesting (RWH) for smooth implementation, monitoring and regular maintenance of RWH projects.

Uran Plant is in the process of setting up a 10 MLD sea water desalination plant that can be scaled up to 20 MLD in future. Although due to some technical problems the project is delayed but once functional, this plant will help not only to fulfil our fresh water demand but also reduce our dependence on Mumbai Industrial Development Corporation (MIDC) for supply of fresh water.

32. Internal Financial Control System:

Your Company has put in place adequate Internal Financial Controls by laying down policies and procedures to ensure the efficient conduct of its business, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information commensurate with the operations of the Company. Effectiveness of Internal Financial Controls is ensured through management reviews, self-assessment and independent testing by the Internal Audit Team indicating that your Company has adequate Internal Financial Controls over Financial Reporting in compliance with the provisions of the Companies Act, 2013 and such Internal Financial Controls are operating effectively. The Audit Committee/ Board reviews the Internal Financial Controls to ensure its effectiveness for achieving the intended purpose. Independent Auditors Report on the Internal Financial Controls of the Company in terms of Clause (i) of Sub-Section 3 of Section 143 of the Companies Act, 2013 by the Statutory Auditors is placed alongwith the Financial Statements.

33. Conservation of Energy, Technology Absorption and Foreign Exchange earnings & Outgo:

The information as required under section 134(3) (m) of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, is annexed as Annexure - C.

34. Business Responsibility and Sustainability Report

Business Responsibility and Sustainability Report (BRSR) is annexed as Annexure - D and forms part of the Board’s Report.

35. Management Discussion and Analysis Report

As per regulation 34(2)(e) of the SEBI (Listing Obligations and Disclosure Requierements) Regulations 2015, the Management Discussion and Analysis Report (MDAR) forms part of this Report.

36. Corporate Governance

A report on Corporate Governance as stipulated under Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and also on DPE Guidelines on Corporate Governance, 2010 forms part of the Annual Report.

37. Human Resource Development

Employees are the cornerstone of ONGC’s growth and value creation. ONGC’s HR Vision is to build and nurture a world class human capital for leadership in energy business, by continuously innovating and adopting best-in-class HR practices to support business leaders through engaged, empowered and enthused employees.

There were 27,165 employees on rolls of ONGC as on 31 March 2022. These ONGCians dedicated themselves for securing excellent performance of your Company during the year, even amidst the challenges of a global pandemic situation, through their commitment, competence and spirit of collective collaboration. Your Company’s talent management strategy is focused on building an optimal and competent workforce to meet business needs and is centered around workforce planning and talent acquisition, performance management, learning & development, career growth, succession planning, leadership development, and extending best of employee facilities, welfare benefits and work environment.

Capacity building of the workforce is a priority area, with dedicated Institutes taking care of the learning & development needs of our employees to effectively meet the challenges of E&P industry. ONGC has tie-ups with a number of national & internationals institutions, agencies and business schools for capacity building of its energy professionals.During the year, in view of the Covid-19 pandemic, learning methodologies were continued on online mode. During FY’22, 19,219 executives and 4,338 non-executives were imparted training in relevant domains, spanning 66,660 executive and 9617 non-executive training days.

Learning Management System (LMS) is one of the landmark initiatives undertaken by ONGC in recent times. A pioneer project under the Government’s Digital India Initiative, LMS portal brings competency-based learning to all ONGCians, to enable self-paced learning, continual Learning through learning pathways, world class trainings, up-to-date content and assessment-based progress. With this, ONGC has become the first PSE to onboard Learning Management System in 2022 under Mission Karmayogi launched by Hon’ble Prime Minister.

Leadership Development: ONGC has in place strategic development interventions across executive levels, to build and nurture a continual pipeline of energy leaders.

During the year, ONGC launched ‘Harvard ManageMentor’ - a management development program [e-learning] covering more than 3,100 executives. Further, to take care of development needs of the young officers, under ONGC Mentor Mentee exercise FY’22, 600 Mentors have been initiated into the mentoring journey, who are each mentoring 1-2 young executives from their respective work centre.

Digitalization of HR Processes: During the year, a number of digital initiatives were taken up towards improved employee processes, HR workflows, digitization of Trust records, etc., in line with the organization’s push for technology & digitization. ONGC has introduced IT Enabled paperless Medical Referral process system through Medical Smart Cards (ONGCCares) to regular/ retired employees & their dependents thus making the system more convenient & transparent. Further, Paperless Medical reimbursement processes and referral systems was also launched in 2021, directly impacting more than 1.5 Lakh beneficiaries, leading to considerable reduction in carbon footprint, as well as system improvement.

Employee Engagement: ONGC took up a number of employee engagement activities to promote a culture of open communication, trust, sense of belonging, team spirit, innovation and excellence. Some highlights are as follows:

• More than 50 ‘people connect’ sessions were conducted across work centres for improved engagement & interaction of key executives and seniors with work teams, with focus on youngsters.

• Annual ONGC Business Games was successfully conducted online to hone the business acumen of executives . During FY’22, a total of 279 teams and 1,116 executives participated in these games.

• ‘Abhivyakti’ engagement exercises were conducted for E0 and below level employees as focused engagement exercises, wherein more than 250 nos of employees participated in various individual and group online competitions. The participants displayed excellent digital literacy during the virtual competitions.

• A special program on Parenting and Career Guidance for employees and wards was conducted.

• The second edition of MOSAIC - Online Games was held during Nov-Dec 2021, which was participated by 139 PWD employees across ONGC and ONGC Videsh.

Employee Recognition: ONGC has a well-defined and robust Awards and Rewards scheme at Corporate as well as Work centre level, where outstanding performance of employees are recognized and rewarded.

Employee Welfare: Introduced new policies and measures such as, special dispensations to employees due to covid situation, introduction of Health Care Package for COVID-19, improvement in Group Insurance Scheme to employees, enhancement of support amount under ONGC Composite Social Security Scheme, extension ssssof medical facilities to parents of both employee and spouse working in ONGC, enhanced benefits to tenure based field employees, term based Field employees, contingent employees, etc.

Work- Life Balance: Your Company provides an enabling environment for work-life balance of its employees. Townships at many work centres have developed facilities like gymnasiums, clubs, sports facilities and music rooms. Facilities for gym, sports, yoga, library,

etc. are also provided in Offshore Living Quarters. Apart from social communities such as Officers Clubs, Employee Welfare Committees, Resident Welfare Associations, ONGC Officers’ Mahila Samiti, etc., your Company also has a unique adventure wing named ‘ONGC Himalayan Association’ which organizes adventure programmes like mountaineering, trekking, water rafting, etc. which adds towards employee morale, engagement, team spirit, camaraderie, stress management and spirit to explore the unknown.

Health and Wellbeing: During the pandemic, ONGC ensured health, safety & well-being of its workforce and provided full support to all its employees. As a responsible corporate citizen, ONGC also enhanced the health insurance coverage for its secondary workforce.

During the 2nd wave of Covid pandemic, ONGC put in place Covid-care facilities at its work centres for handling emergency patients. ONGC ensured home delivery of medicines to needy patients. 24x7 Helpline Numbers and a digital COVID Dashboard operationalized to help and assist employees and their family members. A number of health talks & webinars on covid, health, mental well-being, coping with loss, etc were arranged. Covid Sewa initiative was launched to bring together ONGC employees & their family members to volunteer themselves.Superannuated Doctors of ONGC came forward to volunteer to extend help through tele-consultation to ONGC employees on Covid-related and other medical issues.

Vaccination camps were organized at various work locations across the country for employees and secondary workforce. Continuous communication & connect of top leadership with operations teams at ONGC locations across the country was ensured to reinforce employee safety, boost workforce morale and provide all necessary support for smooth operations.

Employee Welfare Trusts

Your Company has established following Trusts for welfare and social security of employees:-

Employees Contributory Provident Fund (ECPF): During the pandemic, the Trust settled one of the highest NRA-Pandemic/ Epidemic claims (more than 19,000 cases amounting approx. '' 4,710 million since April 2020) in the country which was appreciated by the Employees Provident Fund Organisation.

Post Retirement Benefit Scheme (PRBS) Trust manages the pension fund of employees of your company.

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 while in service.

Gratuity Fund Trust established for payment of gratuity as per the provisions of the Gratuity Act.

ONGC Medical Benefits (PRMB) Trust has been established to manage the funds for the post-retirement medical benefits of employees.

ONGC Leave Encashment Trust has been established to manage the funds for the Earned Leave encashment benefits of employees.

Your Company also has a ‘Sahyog Trust’ for its Sahyog Yojana to provide ex-gratia financial grant for sustenance, medical assistance and 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. Beneficiaries under this scheme include casual, contingent, daily rated, part-time, adhoc, contract appointees, and

tenure-based employees, apprentices and trainees engaged by your Company besides regular and past employees. Under the scheme, an amount of '' 36.36 Million was disbursed by the Trust during FY’22 to 836 beneficiaries.

Your Company has instituted Asha Kiran Scheme to meet the emergency needs of the ex-employees retired prior to 01.01.2007. The scheme was launched as per DPE guidelines with a corpus of 1.5% of profit before tax. During FY’22,. '' 1,373 million was spent on this scheme covering 13,099 beneficiaries.

Your company has initiated Digital Life Certificate (DLC), that has simplified submission of life certificate by retired employees. A module has been developed in collaboration with NIC, where any retired employee/ pensioner can submit his/her life certificate with the help of biometrics without physically going to the pension disbursing authority and get pension directly credited to the respective bank account.

Implementation of Govt. Directives for Priority Section

ONGC is fully cognizant of its responsibility towards welfare of SC and ST communities and complies with the Government directives. The percentage of Scheduled Castes (SC) and Scheduled Tribe (ST) employees were 15 percent and 11 percent respectively as on 31.03.2022.

Your Company and carried out following welfare activities for their betterment in and around its operational areas:-

Annual Component Plan: Under Annual Component Plan for SC/ ST, every year allocation of '' 200 Million is made. Out of this, '' 60 Million is distributed amongst all work-centres of the Company for taking up welfare activities for communities in and around areas of the Company’s operations. In addition, '' 140 Million is managed centrally, and is earmarked for special projects/ proposals/ schemes for the welfare of areas/ persons belonging to SC/ST communities. This fund is especially meant for providing help and support in Education and Training, Community Development and Medical & Health Care.

Scholarship to meritorious students: Your Company provides 1,000 scholarships for meritorious SC and ST students for pursuing higher professional courses at different Institutes and Universities across the country in Graduate Engineering, MBBS, PG courses of MBA and Geo-Sciences. The scholarships have been equally divided for both Boys and Girls students. The scholarship amount is extended up to '' 48,000/- per annum per student subject to conditions of the scheme.

Diversity & Inclusion: ONGC is an equal opportunity employer and ensures that there is zero discrimination against any employee, whether based on gender, religion, caste, ethnicity, language, background, age or abilities, etc.

Women Development: Women employees constituted 7.5 per cent of your Company’s workforce as on 31.03.2022. ONGC has put in place a number of women-friendly policies and practices in the organisation to support, promote and nurture women in the company. ONGC organizes special Leadership development programs for women executives through reputed Institutes to groom women executives for leadership roles. A new focused programme on Women Leadership Development - Urjasvini, was launched by ONGC during FY’22, to mentor and develop high-potential women executives for senior management roles.

An initiative called Voice of Oil Women (VOW) was started in January 2022, wherein ONGC’s Women Development Forum (WDF) Chapters, organise online sessions every month for knowledge sharing, learning and networking amongst the women fraternity.

A new portal exclusively for Women Development Forum of ONGC was launched on International Women’s Day on 8th March 2022.

Inclusion of Persons with Disabilities (PwD): ONGC ensures requisite facilities and infrastructure to enable Persons with Disabilities to effectively discharge their duties. Apart from reservation in recruitment, they are provided with special facilities and amenities in terms of suitable job assignments, assistive devices, preference in transfer/ posting, accommodation, special casual leave, free accessibility and barrier free environment at work place. Special events such as Para Games and Mosaic online games are conducted for PwD employees of the Company.

Disclosure under the Sexual Harassment: Your Company has complied with the provisions under the Sexual Harassment of women at workplace (Prevention, Prohibition and Redressal) Act, 2013 including constitution of Internal Complaints Committees (ICC) for dealing with complaints of sexual harassment of women at workplace. Skill enhancement programs were conducted for members of ICC to equip them with requisite skills for enquiring into complaints. Awareness programme was also extended for the secondary workforce of the Company.

Details of complaints under Sexual Harassment of women at workplace (Prevention, Prohibition and Redressal) Act, 2013 are provided under POSH framework of Integrated Report.

38. Industrial Relations

Your Company maintained harmonious Industrial Relations throughout the year. Man-days loss due to internal industrial action was reported as ‘NIL’ for FY’22.

39. Compliance under the Right to Information Act, 2005

Your Company has a well-defined mechanism in place to deal with the RTI applications received under the Right to Information Act 2005. Your Company has a designated senior level officer as a ‘Nodal Officer’ to oversee its implementation. The applications received are processed by 23 executives designated as ‘Central Public Information Officers’ (CPIOs) in various work centres across the Company. The particulars of all the quasi-judicial authorities under the ambit of RTI Act, 2005 have been uploaded on the Company website (www.ongcindia.com) for information of the general public.

Your Company received 2,259 applications (including 35 transferred by other Public Authorities) during FY’22, and 183 RTI applications were carried forward from FY’21. Against these applications, information as sought were provided, 7 applications were rejected and 35 applications were transferred to other public authorities, in accordance with the provisions of the RTI Act 2005. There were 422 first appeals, which were disposed-off during the period. Total pending request were 183 as on 31.03.2022.

40. Implementation of Official Language Policy

Your Company continued its concerted efforts for promotion and implementation of Official Language. In this regard, some of the efforts taken during the year were:

• Unicode Hindi software installed in all offices.

• Hindi workshops conducted at regular intervals in all work centres.

• Hindi technical seminars/Webinars, Kavi Goshties, Kavi Sammelan and Hindi plays were organised at various work centres.

• Various programme conducted at all work centres of the Company during Rajbhasha Fortnight (14th to 28th September 2021) and Vishva Hindi Divas (10.01.2022)

• Hindi Teaching Scheme of Government of India was implemented effectively at all regional work centres of the company. Hindi e-magazines were published by all work centres.

• E-Roster of Employees regarding working knowledge of Hindi has been put in place.

• Paperless office has been made bilingual for effective implementation of Official Language policy. Besides, Unicode has been installed in SAP platform for enabling bilingual working.

• A bilingual handbook has been prepared and uploaded on reports.ongc.co.in for ready reference on OL policy

• To achieve the annual target of Official Language by using the applications of Hindi Computing tools, a special workshop/ webinar has been conducted for Official Language Executives posted at different work centres of ONGC in association with C-DAC, Pune.

41. Sports

Your Company continues the support for development of sports in the country by providing employment opportunities to sportspersons and also granting scholarships to budding talents in 22 games. Your Company sponsored various sports associations/ federations/ sports bodies for organizing sports events as well as developing sporting infrastructure. The support has enabled many sportspersons to achieve, excel and bring home laurels for the nation and the organization.

Some of the significant achievements of our sportspersons during the year were as follows:

• Seven ONGC sports persons represented country in Tokyo Olympics:

• Apurvi Chandela : Shooting

• Ankita Raina : Tennis

• G Sathiyan : Table Tennis

• B. Sai Praneet : Badminton

• Gurjant Singh : Hockey

• Sumit : Hockey

• Mandeep Singh : Hockey

All three ONGC Hockey players were core group members of Senior India Men team and were instrumental in India winning Olympic Bronze medal after a gap of 41 years.

• Five ONGCians were conferred with Arjuna Awards for the year 2021 by President of India:

• Arpinder Singh - Athletics

• Ankita Raina - Tennis

• Gurjant Singh, Sumit & Mandeep Singh - Hockey

• The total number of National Awardees in the organization stand at 60:

• Padma Bhushan - 1

• Khel Ratna - 2

• Padma Shri - 6

• Arjuna Award - 49

• Dhyanchand Award - 2

45. Directors’ Responsibility Statement

Pursuant to the requirement under Section 134 of the Companies Act, 2013, with respect to Directors’ Responsibility Statement, it is hereby confirmed that:

a) In the preparation of the annual accounts, the applicable accounting standards were followed and there was no material departures from the same;

b) The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as on 31 March 2022 and of the profit of the Company for the year ended on that date;

c) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) The Directors had prepared the annual accounts of the Company on a ‘going concern’ basis;

e) The Directors had laid down internal financial controls which were being followed by the Company and that such internal financial controls were adequate and were operating effectively; and

f) The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

46. Annual Return

Pursuant to Section 134(3)(a) read with Section 92(3) of the Companies Act, 2013 Annual Return of the Company is placed at https://ongcindia.com/web/eng/investors/annual-return

47. Particulars of Employees

Your Company being a Government Company, the provisions of Section 197(12) of the Companies Act, 2013 and relevant Rules issued thereunder are not applicable.

The terms and conditions of the appointment of Whole-time Directors are subject to the applicable guidelines issued by the Department of Public Enterprises (DPE), Government of India.

48. Audit Committee

In compliance with Section 177(8) of the Companies Act, 2013 & Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance, 2010 the details regarding Audit Committee is provided under Corporate Governance Report which forms part of Annual Report.

There was no instance during FY’22, where the Board had not accepted any recommendation of the Audit Committee.

49. Vigil Mechanism:

Your Company has established Whistle Blower Policy / Vigil Mechanism to report genuine concerns about ethical behaviour, actual or suspected fraud, violation of Code of conduct and also instances of leak of unplublished price sensitive information. The said vigil mechanism provides for adequate safeguards against victimization of persons who use the mechanism and has provision for direct access to the Chairperson of the Audit Committee in appropriate or exceptional cases.

Policy of the Company may be accessed at https://ongcindia.com/ web/eng/investors/policies50. Vigilance Functions:

Your Company has a full-fledged Vigilance Department headed by Chief Vigilance Officer. The Department operates on the guidelines of Central Vigilance Commission on Vigilance management in Public Sector Enterprises and is guided further by instructions issued by the Department of Personnel and Training and MoPNG from time to time.

Complaints are handled as per the complaint handling policies stipulated in Vigilance Manual issued by the Central Vigilance Commission. The prime focus of Vigilance activities has been Preventive and Participative Vigilance by having regular interaction with employees and other stakeholders to spread awareness among the masses.

An account of vigilance cases disposed during the year and cases pending as on 01.04.2022 is as under:

51. Risk Management Policy and Implementation:

The Company has a Board approved Risk Management Policy. Risk framework and Risk portfolio are periodically monitored by the Risk Management Committee, Audit Committee and the Board.

52. Auditors

The Statutory Auditors of your Company are appointed by the Comptroller and Auditor General of India (CAG). There were 6 Practising Chartered Accountants firms namely M/s. G.M. Kapadia & Co., M/s. R. Gopal & Associates, M/s. SARC & Associates, M/s. Kalani & Co., M/s. R.G.N. Price & Co. and M/s S. Bhandari & Co. who were appointed as Joint Statutory Auditors of the Company for FY’22.

The Statutory Auditors have been paid a total remuneration of '' 56.64 Million towards audit fees, certification and other services. The above fees are inclusive of applicable service tax/GST but exclusive of re-imbursement of travelling and out of pocket expenses.

Auditors’ Report on the Accounts

Statutory Auditors Reports and the comments of CAG on standalone and consolidated accounts of the Company are placed along with respective financial statements for FY’22. There is no qualification in the Statutory Auditors Reports on the Financial Statements of the Company for FY’22.

The comments of Comptroller & Auditor General of India (C&AG) and the reply of the managment thereto form part of this Report and are attached as per Annexure - F. During FY’22, there has not been any fraud reported by the Auditors of the Company.

53. C&AG Audit on other matters:

As at 31 March 2022, there were twenty four pending published paras related to the C&AG audit. These related to payment of Stagnation Relief, Non-recovery of Perquisite Tax, Payment towards encashment of Half pay Leave/Earned Leave, IT audit on FICO module of SAP, Delay in appraisal and non-monetisation of the

discoveries in KG DWN 98/2 Block, Non Achievement of objective of acquiring Coal Bed Methane (CBM) Blocks, Utilisation of Rigs in ONGC, Avoidable extra expenditure due to delay in procurement of casing pipes, Not obtaining the share of cost of Immediate Support Vessels purchased by ONGC for security of offshore assets from E&P operators, Non recovery of pending cash calls, Construction of Toilets in schools by CPSEs, Loss of returns to ONGC due to adoption of financing mechanism to maintain the status of OPaL as a non-public sector undertaking, Avoidable payment of equipment standby rentals, Supply of gas without security resulted in nonrecovery of dues, etc.

These audit Paras have been suitably replied and the same are under review of MoPNG or CAG.

54. Cost Audit

There were 6 cost accountants firms, namely M/s. Bandopadhyaya Bhaumik & Co., M/s. N. D. Birla & Co., M/s. Joshi Apte & Associates, M/s. ABK & Associates, M/s. Sanjay Gupta & Associates and M/s. Rao, Murthy & Associates appointed by the Board as Joint Cost Auditors of the Company for FY’22. Necessary cost audit report shall be prepared by the said auditors and filed with the Central Government as per requirements under the Companies Act, 2013.

55. Secretarial Audit

Your Company had engaged M/s. JMC & Associates, Practising Company Secretaries as Secretarial Auditors for FY’22. Secretarial Audit Report is annexed as Annexure - G.

Reply of management to the qualifications made in the Secretarial Audit Report are as under:

Board Composition, Audit Committee and Nomination & Remuneration Committee:

The Company, being a CPSE, composition of its Board of Directors is the prerogative of the President of India as provided under the Articles of Association of the Company.

The Company made appointment of 4 Independent Directors including one woman Independent Director on 14 November 2021. Further, the Company made appointment of one additional Independent Director on 31 December, 2021 and another one on 2 February 2022.

Upon appointment of requisite number of Independent Directors, Audit Committee and Nomination & Remuneration Committee were re-constituted and accordingly the Company became compliant with the requirements w.r.t. composition of Board and above-mentioned committees.

56. Changes in Board of Directors and Key Managerial Personnel

Being a Government Company, policy on directors’ appointment and remuneration is not applicable and also evaluation of their performance is exempted under the Companies Act, 2013.

Details of Appointments/ Cessation of Directors and KMPs are as under:

Changes in the Board/ Key Managerial Personnel of the Company during the year and up-to date of the Report are as under:

• Ms. Pomila Jaspal has been appointed as Director (Finance) & Chief Financial Officer (CFO) of the Company w.e.f. 19 April 2022.

• Mr. Syamchand Ghosh, Mr. Manish Pareek, Smt. Reena Jaitly, Mr. Vysyaraju Ajit Kumar Raju have been appointed as Independent Directors of the Company w.e.f. 14 November 2021.

• Dr. Prabhaskar Rai has been appointed as Independent Director of the Company w.e.f. 31 December 2021.

• Dr. Madhav Singh has been appointed as Independent Director of the Company w.e.f. 2 February 2022.

• Mr. Gudey Srinivas, IAS, Additional Secretary and Financial Adviser in the Ministry of Petroleum & Natural Gas has been appointed as the Government Nominee Director of the Company w.e.f. 14.06.2022.

• Mr. Anuarg Sharma, Director (Onshore) was also Chief Financial Officer (CFO) of the Company during 21.01.2022 to 31.03.2022.

• Mr. Rajni Kant has been appointed as the Company Secretary w.e.f. 29.06.2021.

• Mr. Vivek Chandrakant Tongaonkar was CFO during the period from 01.04.2021 to 31.12.2021.

• Mr. Subhash Kumar, ceased to be Chairman & Managing Director/ Chief Executive Officer and Director (Finance) of the Company w.e.f. 01.01.2022 upon his superannuation on

31.12.2021.

• Mr. Rajesh Aggarwal ceased to be Government Nominee Director on the Board w.e.f. 24.09.2021.

• Mr. Amar Nath ceased to be Government Nominee Director on the Board w.e.f. 14.05.2022.

• Mr. Amitava Bhattacharyya ceased to be Independent Director of the Company on completion of his tenure on 11.07.2022.

• Mr. M E V Selvamm ceased to be Company Secretary on

25.06.2021.

• The Board places on record its appreciation for commendable contribution made by Mr. Subhash Kumar, Mr. Rajesh Aggarwal, Mr. Amar Nath and Mr. Amitava Bhattacharyya during their tenure on the Board of your Company.

57. Declaration by Independent Directors:

The Company has received the declaration from Independent Directors confirming that they met the criteria prescribed under the provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

58. Acknowledgement

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 Auditors and Comptroller & Auditor General of India and are grateful for their continued support and cooperation.

Your Directors thank all share-owners, business partners and all members of the ONGC Family for their faith, trust and confidence reposed in the Board. Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels, in spite of the challenging and unprecedented pandemic situation, to ensure that the Company continues to sustain, grow and excel.

On behalf of the Board of Directors

Sd/-

Dr. Alka Mittal

Chairman and Managing Director (Addl. Charge)

New Delhi 3 August 2022