success story of lavkush shukla

8/6/2019 Success Story of Lavkush Shukla

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SUCCESS STORY OF

OIL AND NATURAL GAS CORPORATION OF

INDIA

A report submitted to IIMT, Greater Noida as a part fulfillment of full time

postgraduate diploma in management

SUBMITTED TO: SUBMITTED BY:

Dr. D. K. GARG LAVKUSH SHUKLA

CHAIRMAN ENR. 15073

IIMT, GREATER NOIDA

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY

2, KNOWLEDGE PARK 1, GREATER NOIDA

GAUTAM BUDH NAGAR (UP)

Website www.ishanfamily.com, E-mail [email protected]


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Table of Contents

Sl.no Contents Page no

1 Origin 3-4

2 Background of promoters 4

3 Foundation of the Company 4-5

4 History of Business 5-9

5 Product Plannnig & Expansion of Products 9-10

6 Business Geography 10-11

7 R & D Innovation of the Company 11-13

8 Problems Faced by the Company 13-14

9 Competitors 14

10 Present Status of Co and its achievements 14-16

Soft Copy verification from IT Department

Comment-

Name-

Signature-

Date-


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Origin-

ONGC's origin can be traced to the mid-1950s. After India achieved independence, thedevelopment of the petroleum industry was an important issue for the Government of India(GoI). It was crucial not only for the industrial development of the country but also forstrategic reasons. Till 1955, exploration for hydrocarbon resources within the country's

boundaries was mainly undertaken by private oil companies like Assam Oil Company6,Burmah Oil Company7 (both of which operated in Assam), and the Indo-Stanvac Petroleum

project8 (in West Bengal). In 1955, the GoI decided to undertake exploration and productionactivities for oil and natural gas resources in different regions of the country.

In the same year, an Oil and Natural Gas Directorate was set up as a subordinate office underthe then Ministry of Natural Resources and Scientific Research. In August 1956, theDirectorate was elevated to the status of a commission and named the Oil and Natural GasCommission.

In 1959, with the Oil and Natural Gas Commission Act 1959, the Commission became astatutory body. Its main objectives were "to plan, promote, organize, and implement

programs for development of petroleum resources and the production and sale of petroleumand petroleum products."

In 1991, as part of the liberalization initiatives of the GoI, core sectors like petroleum werederegulated and de-licensed. Consequently, in 1993, the Oil and Natural Gas Commission

was converted into a public limited company, ONGC Ltd., under the Company's Act, 1956.

During the pre-independence period, the Assam Oil Company in the northeastern and Attock

Oil company in northwestern part of the undivided India were the only oil companies

producing oil in the country, with minimal exploration input. The major part of Indian

sedimentary basins was deemed to be unfit for development of oil and gas resources.

After independence, the national Government realized the importance oil and gas for rapidindustrial development and its strategic role in defense. Consequently, while framing the

Industrial Policy Statement of 1948, the development of petroleum industry in the country

was considered to be of utmost necessity.

Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources of

India. In Assam, the Assam Oil Company was producing oil at Digboi (discovered in 1889)

and the Oil India Ltd. (a 50% joint venture between Government of India and Burmah Oil

Company) was engaged in developing two newly discovered large fields Naharkatiya and

Moran in Assam. In West Bengal, the Indo-Stanvac Petroleum project (a joint venture

between Government of India and Standard Vacuum Oil Company of USA) was engaged in

exploration work. The vast sedimentary tract in other parts of India and adjoining offshoreremained largely unexplored.

In 1955, Government of India decided to develop the oil and natural gas resources in the

various regions of the country as part of the Public Sector development. With this objective,

an Oil and Natural Gas Directorate was set up towards the end of 1955, as a subordinate

office under the then Ministry of Natural Resources and Scientific Research. The department

was constituted with a nucleus of geoscientists from the Geological survey of India.


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A delegation under the leadership of Mr. K D Malviya, the then Minister of Natural

Resources, visited several European countries to study the status of oil industry in those

countries and to facilitate the training of Indian professionals for exploring potential oil and

gas reserves. Foreign experts from USA, West Germany, Romania and erstwhile U.S.S.R

visited India and helped the government with their expertise. Finally, the visiting Soviet

experts drew up a detailed plan for geological and geophysical surveys and drillingoperations to be carried out in the 2nd Five Year Plan (1956-57 to 1960-61).

In April 1956, the Government of India adopted the Industrial Policy Resolution, which

placed mineral oil industry among the schedule 'A' industries, the future development of

which was to be the sole and exclusive responsibility of the state.

Soon, after the formation of the Oil and Natural Gas Directorate, it became apparent that it

would not be possible for the Directorate with its limited financial and administrative powers

as subordinate office of the Government, to function efficiently. So in August, 1956, the

Directorate was raised to the status of a commission with enhanced powers, although it

continued to be under the government. In October 1959, the Commission was converted intoa statutory body by an act of the Indian Parliament, which enhanced powers of the

commission further. The main functions of the Oil and Natural Gas Commission subject to

the provisions of the Act, were "to plan, promote, organize and implement programme for

development of Petroleum Resources and the production and sale of petroleum and petroleum

products produced by it, and to perform such other functions as the Central Government may,

from time to time, assign to it ". The act further outlined the activities and steps to be taken

by ONGC in fulfilling its mandate.

Background of promoters-

Oil and Natural Gas Corporation Limited (ONGC) is a state-owned oil and gas company

in India. It is a Fortune Global 500 company ranked 152nd, and contributes 77% of

India's crude oil production and 81% of India's natural gas production. It is the highest profit

making corporation in India. It was set up as a commission on 14 August 1956. Indian

government holds 74.14% equity stake in this company. A delegation under the leadership of

Mr. K D Malviya, the then Minister of Natural Resources, visited several European countries

to study the status of oil industry in those countries and to facilitate the training of Indian

professionals for exploring potential oil and gas reserves. Foreign experts from USA, West

Germany, Romania and erstwhile U.S.S.R visited India and helped the government with their

expertise. Finally, the visiting Soviet experts drew up a detailed plan for geological and

geophysical surveys and drilling operations to be carried out in the 2nd Five Year Plan.

Government of India promoted and incorporated to this company.

Foundation of the company-

In August 1960, the Oil and Natural Gas Commission was formed. Raised from mereDirectorate status to Commission, it had enhanced powers. In 1959, these powers were


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further enhanced by converting the commission into a statutory body by an Act of IndianParliament.

Since its foundation stone was laid, ONGC is transforming Indias view towards Oil and Natural Gas by emulating the countrys limited upstream capabilities into a large viableplaying field. ONGC, since 1959, has made its presence noted in most parts of India and in

overseas territories. ONGC found new resources in Assam and established the new oil province in Cambay basin (Gujarat). In 1970 with the discovery of Bombay High (nowknown as Mumbai High), ONGC went offshore. With this discovery and subsequent

discovery of huge oil fields in the Western offshore, a total of 5 billion tonnes of hydrocarbonpresent in the country was discovered. The most important contribution of ONGC, however,

is its self-reliance and development of core competence in exploration and productionactivities at a globally competitive level.

ONGC's HAL Dhruv helicopter operating off the coast of Mumbai.

Post 1990, the liberalized economic policy was brought into effect, subsequently partialdisinvestments of government equity in Public Sector Undertakings were sought. As a result,ONGC was re-organized as a limited company and after conversion of business of theerstwhile Oil & Natural Gas Commission to that of Oil and Natural Gas Corporation Ltd in1993, 2 percent of shares through competitive bidding were disinvested. Further expansion ofequity was done by 2 percent share offering to ONGC employees. Another big leap was takenin March 1999, when ONGC, Indian Oil Corporation (IOC) and Gas Authority of IndiaLtd.(GAIL) agreed to have cross holding in each others stock. Consequently the Governmentsold off 10 per cent of its share holding in ONGC to IOC and 2.5 per cent to GAIL. With this,the Government holding in ONGC came down to 84.11 per cent. In 2002-03 ONGC tookover Mangalore Refinery and Petrochemicals Limited (MRPL) from Birla Group andannounced its entrance into retailing business. ONGC also went to global fields through itssubsidiary, ONGC Videsh Ltd. (OVL).

In 2009, ONGC discovered up to 1 billion barrel reserves of heavy crude, in the Persian Gulfoff the coast of Iran.[4] Additionally, ONGC also signed a deal with Iran to invest US$3

billion to extract 1.1 billion cubic feet of natural gas from the Farzad B gas field.

ONGC Videsh

ONGC Videsh is the international arm of ONGC. ONGC has made major investments inVietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from its investment inVietnam.

History of business-

The Oil and Natural Gas Commission (ONGC), India's largest petroleum exploration and

production entity, is organized as a state statutory body rather than a public company, but isrun on a profit-making basis with these revenues flowing to the Indian Exchequer. In 1989-

1990 ONGC claimed to have posted the biggest profit in "India's corporate world."

ONGC and the state-owned company, Oil India Ltd., are responsible for most of the

exploration and production of crude oil and gas in the country. A separate state-owned

company, the huge Indian Oil Corporation, is predominant in refining, trading, and

marketing.


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The ONGC and other state-owned oil companies trace their origins back to a 1948 resolution

by India's newly independent government. The Industrial Policy Resolution of 1948 specified

that all new units in the Indian oil industry would be government-owned, unless specifically

authorized.

In December 1955 an Oil and Natural Gas Directorate was set up within the Ministry of

Natural Resources and Scientific Research to specialize in exploration. Early in 1956 itsstatus was changed to a commission. In October 1959 the ONGC was made a statutory body

by an act of parliament.

The decision to create ONGC as a state-controlled body and, eventually, to bring most of the

rest of the oil industry under government control, was based not just on ideology, but on the

need to prevent a drain on foreign exchange and control by a group of foreign-owned oil

companies that were predominant in the country. Before independence and immediately

afterward foreign companies exercised a powerful control over the production and supply of

petroleum substances vital to the country's industrial development.

Prior to independence, it was widely believed that India lacked large-scale commercial

deposits of oil and gas. Many of India's needs were supplied by other parts of the British

Empire, Persia, the Dutch East Indies, and Russia. Kerosene was the most important

petroleum product in a country with few cars. Burma, then an administrative part of India,

was known to have significant deposits, which sometimes derived from shallow, hand-dug

wells. In 1947 both Burma and Pakistan--the latter with one discovered field--went their own

ways.

India was left with only one major producing field--Digboi, Assam--which had been

discovered in 1890. Despite extensive surveys throughout Assam, no other fields of any

significance had been discovered. Digboi and its local refinery had been of profound strategic

significance after the fall of Burma in 1942. It had furnished oil to Allied air bases from

which supplies were flown to China. It would take several years for India's new leaders to

learn the strategic and economic importance of domestic oil supplies.

During World War II, petroleum supplies were regulated by a committee in London, and

prices were set in India by a committee chaired by Burmah-Shell. Wartime rationing

continued until 1950, and a shortage of oil products continued to be exacerbated by the

limited domestic production and refining facilities. Relations with Burmah-Shell and other

foreign companies continued to sour after independence in 1947. They advised India against

building its own refinery on the grounds that it could only be run at a financial loss. India's

vulnerability to the pressures of the international oil market became clear after 1950, when

the Iranian political leader Mussadegh nationalized a huge refinery at Abadan that Burmah-

Shell had previously used to supply much of India's needs. Iran was in the sterling area, and

when this source was cut off India was forced to use its scarce dollar reserves to buy oilelsewhere.

The foreign companies were then persuaded to build two refineries, but the government

remained skeptical about the costs of oil exploration. After the war, the Assam Oil Company,

a subsidiary of British-owned Burmah Oil, had resumed exploration with little success.

Assam finally achieved a major find at Nakhortiya in 1953, but a row ensued between

Burmah and the government. The government refused Burmah any right to refine or market

this oil and would only allow the company joint ownership in production. As a result Burmah


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refused to undertake further exploration. Soon afterward, the government claimed Burmah-

Shell and other foreign companies were charging excessive prices for imported oil. A

controversy ensued over the companies' refusal to refine imported Soviet oil.

These controversies helped lead to the creation of ONGC. Burmah retained control of Digboi

but development in the other Assam fields was taken over by a new company, Oil India Ltd.,

of which the government owned one-third and Assam Oil held two-thirds. By 1981, theIndian government had acquired 100% of Oil India.

Burmah and Oil India were originally confined to the Assam fields, where ONGC was

excluded. After 1956 no new concessions were granted to foreign companies for onshore

exploration. ONGC became the principal exploration company in India. A Soviet consultant

and several Soviet geophysicists were engaged. At first, exploration and drilling with

equipment provided by the Soviet and Romanian governments yielded disappointing results.

The Indian financial press criticized ONGC and the government for wasting the taxpayers'

money. But this attitude began to change after an important find at Cambay, Gujurat, in 1958.

A chain of new finds followed.

Soviet and Romanian experts became enthusiastic about India's potential reserves. They

estimated that 42% of the country's land area was composed of oil-yielding sedimentary rock

with even more lucrative possibilities offshore. Soviet-supplied exploration and production

technology, however, was widely regarded as inferior, and the government looked for other

sources of assistance, especially after a 1963 offshore exploration revealed promising

structures beneath the Gulf of Cambay.

In 1959, the government had revised legislation to make it easier for foreign companies to

undertake exploration work in some areas without the participation of ONGC. However, the

government's preference for agreements in which explorers accepted a majority government

stake in the crude-producing company was known. The government launched a campaign to

persuade foreign companies to undertake exploration.

The French Institute of Petroleum provided some assistance, and some contracts were given

to French and Italian firms. Press reports indicated that Shell, Caltex, Gulf, and Esso were

interested, but in the end there were no major deals. There were more lucrative fields

elsewhere, with fewer government conditions made.

With limited technology and Soviet help, ONGC's progress in developing new wells and in

production was slow during the 1960s. The government's inability to attract foreign

investment came under frequent criticism. More promising offshore geological structures

were found during systematic surveys by the Soviet shipAkademic Arkhangeleisky during the

period 1964-1967.

Finally, in 1974, ONGC discovered the major Bombay High offshore field with a strike from

the advanced Japanese-built Sagar Samratdrilling platform. The strain on foreign exchangecaused by the 1973 Arab oil boycott brought a redoubling of exploration efforts. Further

offshore oil and gas was discovered at Godavari and gas off Portonovo and the Andaman

islands in 1980.

The importance of ONGC's new gas discoveries was underscored by the government's

decision in 1984 to set up the separate Gas Authority of India Ltd. (GAIL) to process, market,

and distribute all forms of natural gas. After the government acquired the remaining foreign

interests of Burmah in the Assam Oil Company in 1981, Oil India Ltd. was given an


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expanded role as the second public sector undertaking engaged in oil exploration and

production. Previously, Oil India had been restricted to eastern areas of the country.

ONGC seeks to help the country achieve self-reliance in oil-related equipment, materials, and

services. ONGC has tried to speed up this indigenization by working with a consortium of

Indian firms that includes Hindustan Shipyard Ltd., Burn Standard Company Ltd.,

Confederation of Engineering Industry, and Larsen & Toubro. The company reports that this progress has resulted in the domestic industry supply of over 50% of the oil industry's

equipment and materials requirements.

In its early days, ONGC experienced difficulties in obtaining up-to-date petroleum

technology. It has assigned a high priority to research and technology, which the company

states are now on a level with that used in explorations anywhere in the world. ONGC's

research efforts date back to the founding of its Kashava Malaviya Institute of Petroleum

Exploration in Dehra dun in 1963. The Malaviya Institute is responsible for applied research

in petroleum geology, geophysics, and well logging techniques. ONGC has six other research

bodies. ONGC's policy is to run these institutes as profit centers.

Exploration efforts have been expanded to many new areas including Krishna-Godavari,

Cauvery, Tripura, Cachar, Dhansiri Valley, and Ravasan. The number of active rigs grew

from 41 in 1981 to 144 in 1990. Future plans include the Ganges Valley, Himalayan foothills,

Bengal, Kerala, and Konikan. Offshore, the firm's deep water unit has been formed to

function as the central agency for planning, programming, and implementing exploration in

deep water along India's coasts.

As the government's agency, ONGC has presided over an increasingly liberalized policy of

encouraging foreign oil companies to explore offshore and they have responded with

increasing interest. In 1987, the Indian government invited foreign oil companies to bid for

27 offshore exploration blocks in the third round of initiatives to encourage foreign

investment in India's offshore industry. This effort was made more successful than the

previous rounds in which many companies refused to participate because they alleged that the

government had reserved the most favorable sites for ONGC and Oil India. Twelve bids for

nine blocks covering a total of 121,000 square kilometers were received from seven

companies. Chevron, Texaco, Broken Hill Proprietary of Australia, and International

Petroleum of Canada eventually signed deals allowing them to put 40% equity in a joint

venture or to pull out if seismic data were not promising. In 1990, the government announced

plans for a fourth round. Private Indian companies would be allowed to acquire concessions

for the first time, but there are no current plans to privatize ONGC itself. In 1989 ONGC

signed a joint exploration agreement in the Gulf of Thailand, signed drilling contracts with

National Iraqi Oil Company, and raised money in the Tokyo and Swiss bond markets.

In 1981-1982, the ONGC redefined its goals and objectives and prepared a corporate planspanning 20 years from 1985 to 2005; more recently, this plan has been updated to 2015. The

emphasis is on accelerated exploration and production strategies. From 1990 production

levels of about 30 million tons of crude oil it envisages by 2015 production of 75 million

tons.

Over the 1980s and early 1990s, ONGC has shown steady growth in crude oil and gas

production, rig counts, profits, and contributions to India's exchequer. India hopes to achieve


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self-sufficiency in fuel by the year 2005. As the company most active in the western offshore,

India's most important oil and gas area, ONGC is essential to this task.

Product Plannnig & Expansion of Products-

ONGC plans to set up two new refineries in India besides raising the capacity of itsMangalore refinery in the west coast to 300,000 barrels per day (bpd).

"I have asked my group to work out the financials (for the refinery project). We don't want tocarry on with uncertainties," ONGC chairman R. S. Sharma told reporters.

He said the proposal would affect the Mangalore refinery's expansion plans and raised "bigquestion mark" on its planned new units -- 300,000 bpd unit at Kakinada in the east coast,and another one in the desert state of Rajasthan.

The budget proposal, awaiting legislative approval, seeks to end a seven-year tax holiday forrefineries commissioned after April 1, 2009, and will affect all proposed new refineriesexcept that of Reliance Petroleum Ltd RPET.BO.

Reliance Petroleum's 580,000 bpd unit in western India is expected to be commissioned inthe second quarter of 2008.

India aims to add 2.14 million bpd to its existing 2.98 million bpd nameplate capacity by2012 as it seeks to become a global refining hub.

Among the refineries, which would be hit by the proposed change, are those of Indian OilCorp (IOC.BO), Bharat Petroleum Corp (BPCL.BO), Essar Oil (ESRO.BO) and the one

planned by steel magnate Lakshmi Mittal in a tie-up with state-run Hindustan PetroleumCorp


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Envisaged Growth

Crude oil production likely to go up 28 MMT by 2012-13 from current productionof 24.67 MMT (2009-10).

Natural gas production likely to be 72 mmscmd by 2012-13 and envisaged to be

100 mmscmd by 2015-16 from present production level of about 62mmscmd.

East Coast Hub - Eastern Offshore Asset has been put in place with an aim of puttingEast Coast discoveries on a fast track basis through an integrated East Coast hub. The oildiscoveries in G-4-6, GS-29-1 and G-4-5 discoveries in KG-DWN-98/2 planned to be puton production in 2012-13.

Exploration Acreage - ONGC has been awarded 17 NELP blocks (including 3 as non-operator and 1 as joint-operator) in NELP-VIII round of bidding for which the contractswere signed on 30th June 2010. ONGC maintains its position as the largest acreage

holder in the country.

Alternate Sources of Energy - ONGC has approved setting up a 102 MW Wind Farm inRajasthan, in addition to a 51 MW Unit already working successfully in Bhuj, Gujarat. Itis also planning to establish a Photo-voltaic Solar Plant. Three SolarThermal Engines, have been commissioned by ONGC at the Solar Energy Centre (SEC),Ministry of New and Renewable Energy (MNRE) campus at Gurgaon. ONGC EnergyCentre which is pursuing a number of alternate energy source projects generates lot ofhope in this regard.

Value-multiplier Projects - Two petrochemical plants being implemented by ONGC promoted SPVs, ONGC Petro-additions Limited (OPaL) at Dahej in Gujarat at the

estimated investment of 19,500 crore and ONGC Mangalore Petrochemicals Limited

(OMPL) at Mangalore at the estimated investment of 5,750 crore, are progressing well

and are expected to become operational in 2013. Both of these plants are unique in termsof their size and investment.

These plants have been located in Dahej SEZ and Mangalore SEZ respectively, which arealso being co-promoted by ONGC. A gas based Combined Cycle Power Plant (CCPP) of726.6 MW, being set up by ONGC Tripura Power Company Limited (OTPC), an SPV

promoted by ONGC, at Palatana, Tripura, at an estimated investment of 3,500 crore,aims to monetize ONGCs idle gas assets in the state of Tripura. This plant is schedule to

be operational in 2011-12.

Business Geography-

ONGC Head Office

Tel Bhavan, Dehradun - 248 003Uttarakhand, India

Tel: 0135-2759561-67, 2752161-65Website: http://www.ongcindia.com


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Registered office-New Delhi

Jeevan Bharti, Tower-2,124

Indira chowk, new Delhi 110001

Tel-011-23310156

Regional offices-

1)Nazira

Po-Nazira, dist. Sivasagar, assam 785685

Tel-0376-2252356

2)varodara

Makarpura road, varodara-390009

Tel-0265 2641266

3)mumbaiTel-022-26562000,26563000

4)southern reginal office,chennai

No-1, gandhi-irwin road ,egmere,chennai-600008

4)kolkata regional office

41, JL Nehru road Kolkata-700071

Tel-033-22887476

R & D Innovation of the Company-

state-owned navratna exploration major Oil and Natural Gas Corporation (ONGC) hasasked the government to grant R&D status to two petroleum exploration licence blocks in

Madhya Pradesh for five years. The blocks identified are Damoh-Jabera-Katani and ampur-Pachmarhi-Anhoni blocks.

This will help our concerted efforts in putting Vindhyan and Satpura basins on to the oilmap of India It will go miles in nations endeavour of hydrocarbon exploration in Madhya

Pradesh, ONGC has stated in a letter to the petroleum ministry.

ONGC proposes to conduct drilling and seismic data acquisition as well as robust agedetection of the oil blocks. The studies with the help of low frequency seismic data and

gravity-magnetic and seismic will enable it to reach a better assessment of the oil and gasprospects.

Explaining the rationale for seeking R&D status for the two blocks, ONGC has pointed out

that hydrocarbon exploration in Category IV basin is a high risk-low reward venture. Grey


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areas in the exploration still exist in various aspect that influence hydrocarbon entrapment in

the basin, it stated.

Various exploration challenges necessitate more time for each phase of data acquisition,

processing , interpretation and special studies for developing a more viable geological model

utilizing state-of-the-art techniques as projected for five years. Validating and authenticiating

the model warrant drilling of deep exploratory well down to basement which in turn in needsadditional time, the letter states.

ONGC has contended that as a colossal gap exists between demand and supply of energy,

towering crude prices, bygone days of easy to find oil in structural traps are over. There is a

pressing need to pay more critical attention to frontier areas for finding oil and gas.

The company board has given its approval to set aside Rs500 crore for research anddevelopment activities (in these segments), R.S. Sharma, chairman and managing director ofthe firm, told reporters on the sidelines of the India Economic Summit in New Delhi onMonday.

In a related development, the hydrocarbon explorer announced that it has studied the log dataof 900 wells and has identified pilot projects to explore uranium together with UraniumCorp. of India Ltd (UCIL). ONGC already has a uranium exploration agreement with UCIL.

According to existing guidelines, atomic energy is the exclusive preserve of the Uniongovernment. While nuclear power plants can be set up only by theNuclear Power Corp. ofIndia Ltd (NPCIL), another public-sector firm under the department of atomic energy,uranium can be mined only by UCIL. NPCIL estimates Indias uranium reserves to be some

78,000 tonnes, around 0.8% of the worlds reserves.

Sharma was also part of a panel that debated Indias future energy needs at the summit. The

other panel members were Tulsi Tanti, chairman and managing director, Suzlon Energy Ltd;Tejpreet Singh Chopra, national executive for India, General Electric Co.; Madhu Koneru,executive director,Trimex Group; and Baba N. Kalyani, chairman and managing directorofBharat Forge Ltd.

Participating in the debate, Sharma said, Coal consumption for power generation is leadingto carbon emissions. There is a huge potential for gas to contribute to the Indian energy

basket. However, he was quick to defend Indias current emissions and said, Indian

emission levels are one-third of that of global emissions.

Sharma also spoke about the fuel pricing regime in the country and said that it needs to beaddressed.

The government subsidises consumers in India by regulating the pricing of petroleumproducts.

Sharma also told reporters that speculation has led to volatility in the international crude oilprices.

Kalyani and Tanti spoke about the need for raising power generation capacity.


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If we need to grow at 10-12%, the power sector needs to grow, Tanti said.

India has a power generation capacity of 150,000MW and aims to add 78,577MW in the fiveyears to 2012. The country faces a 12% peak power shortage.

Problems Faced by the Company-

In bengal-

Misfortune struck ONGC once again at Bengal offshore. This time it has not only impacted

the fate of oil hunt in the Sunderbans delta, but also in the Mahanadi basin on the coasts of

Orissa.

ONGC sources said that the jack-up drilling rig Transocean Nordic, which was slated to be

re-deployed from Bengal offshore to the Mahanadi basin, got one of its legs stuck under the

sea bed. All efforts to free the rig had failed for the last two months. The loss is estimated at$74,000 per day only on the hiring charges of the rig alone.

Already subject to criticism from the Directorate General of Hydrocarbons (DGH) for the

slow pace of exploration activities, the loss is more prominent in terms of time over-run,

especially in the Mahanadi basin where drilling could not be initiated for more than a year

due to non-availability of environmental clearances. The NELP-I block MN-OSN-97/3 is

held jointly by ONGC (85 per cent) and GAIL (15 per cent).

"As things stand now, we have no drill ship to carry out exploration at the Mahanadi basin.

Even if the same could be arranged, which itself is a difficult proposition, the sea conditionswould be extremely unfavourable for carrying out drilling activities during the monsoon

between May and September," a company official said.The drilling at Bengal offshore (WB-

OSN-2000/1) is already facing inordinate delay due to recurrence of technical problems.

Commenced in March 2005, ONGC could complete drilling and testing the first well, which

proved to be dry, six months behind the schedule.The drilling of the other three wells could

not be taken up as the drill ship found the locations identified as unsuitable for carrying out

such operations. The NELP-II block WB-OSN-2000/1 is held jointly by ONGC (85 per cent)

and IOC (15 per cent).

In mumbai-

State-owned drilling firm ONGC has reported a more than 50 per cent decline in oil

production at its fields off the Mumbai Coast due to the officers' strike, which entered the

third day on Friday.

"Crude oil production from Bombay High and the Neelam, Heera and South Bassein fields is

just over 1,70,000 barrels today against the normal day output of about 3,50,000 barrels per

day," a company official said.


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Natural gas production from the fields was almost nil, impacting supply to industry and city

gas operations.

Bombay High and its adjoining fields on normal days produce 12.8 million standard cubic

metres of gas per day but on Friday the production was negligible. The gas from these fields

is send to Uran in Maharashtra for processing and onward distribution.

Against a normal day sale of 10.5 mmscmd, the company could give only marginal quantities

to Mahanagar Gas Ltd, which distributes CNG in Mumbai.

Competitors-

There are lots of competitors of ONGC. The major competitior is GAIL,which is having

63,988.34 crore market capital with respect to2,87,432.38 crore of ONGC. The net profit of

GAIL is 3,139.84 crore with respect to16,126.31 crore of ONGC.

And on the second position PETRNET LNG is there, which is competiting to the ONGC.

In the list of competitors of ongc there are many players comeslike as- Caim India, Oil India,

Gujrat state petro, Reliance naturals, Guj Gas, Indraprastha gas.

These are the major competitots of ONGC.

Present Status of Co and its achievements-

Financial Results (Rs. in million)

2009-10 2008-09

Gross Revenue 619,832 651,455

Gross Profit 396,054 378,292

Companies total revenue was 65049 crore in financial year 2008-09 and it become 61983crore in financial year 2009-10.And the net profit was 16126 crore in the financial year 2008-09 and it increases with thevariance of 3.98% and it becomes 16768 crore in 2009-10.

Achievements-

The first was the discovery of oil in Cambay in September 1958. This was followed bydiscovery of oil in a well at Hazat, 16 kilometers from Ankleshwar, on 14 May 1960. Thesetwo discoveries exploded the myth about the non-existence of oil in the Cambay Basin andhappily brought Gujarat forward on the country's oil map.


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This was followed by discovery of oil near Rudrasagar in Assam in December 1960 much to

the anguish of the doubting Thomas, who had predicted gloomy prospects.

However, the most significant of the achievements was the discovery of Bombay High on

19th February 1974, which, in reality, was the turning point in ONGC's history. The rig Sagar

Samrat (self-propelled jack-up), was purchased at a cost of Rs. 12.7 crore from Mitsubishi.

ONGC achieved the distinction of becoming zero debt corporate by pre-paying the bulk of its

foreign loans.

If Raha succeeds in making ONGC a top-class global oil major, much of the credit should go

to his practice of consulting people at all levels, from former chairmen and directors (earlier

designated members) to middle level executives in ONGC. His "Vichar" series, Vichar

"Manthan", Vichar "Dhara" and Vichar "Vishleshan" have generated much interest in ONGC

and have brought to the fore a flurry of new ideas, which are then fine-tuned and

implemented. The difference in these Vichar series is the level of participating executives.

In short, the 46th year in the chequered history of ONGC has been one of great changes andachievements. And much of the credit should go to Raha and directors on the ONGC Board,

besides of course, to the hundreds and thousands of executives working all over the country.

Accolades

Global Rankings: ONGC has been ranked as number 3 E&P Company in the world and26th among leading global energy majors as per Platts Top 250 Global Energy Rankings2009 announced in November 2009. It is ranked 24th among the Global publicly-listedenergy companies as per PFC Energy 50 list (Jan 2010). It is also ranked number 1 TopBlue Chip of India in the Finance Asia 100 list for 2009 with the highest aggregate net

profit and ranked at 155 in the Forbes Global 2000 list 2010 (April 2010).

Indian Rankings: ONGC has been ranked as the Best Company to work for in the CoreSector. ONGC scores high at 13th place in overall ranking amongst all the IndianCompanies, including public and private (Feb 2010).

SCOPE Meritorious Awards: ONGC won the Gold Trophy for SCOPE MeritoriousAward for Corporate Social Responsibility and Responsiveness for the year 2007-08 andGold Trophy for R&D, Technology Development & Innovation for the year 2008-09(awarded in April 2010).

Dainik Baskar India Pride Awards: ONGC bagged the Gold Award in the CorporateSocial Responsibility category in 2010 at the Dainik Bhaskar India Pride Awards for

Excellence in PSUs instituted by the Dainik Bhaskar group for its CSRproject Ashadeep-Shiksha Ki Jyoti on girl child education.

DSIJ Award: ONGC Clinched two DSIJ-PSU awards 2010, one for excellent overall performance in the category of Heavy Weights and the other for Highest Marketcapitalization amogst PSUs in the category of Wealth Builders (April 2010).


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Sports

Arjuna Awards: ONGCians Ms Sinimole Poulose and Shri Gautam Gambhir wereconferred with Arjuna Award in 2009 in recognition of their achievements in athleticsand cricket respectively. Shri Gautam Gambhir was also ranked No. 1 batsman in ICCTest world rankings.

Badminton: Shri Chetan Anand won the Dutch Open Grand Prix badminton tournamentin October, 2009 and also the Gold medal in SAF Games held at Dhaka,Bangladesh inFebruary, 2010. Shri Rupesh Kumar finished Runners up in Australia Open Grand Prix

badminton tournament held in July, 2009.

Cycling: Ms. Koneru Humpy won the 1st place in Fide World Womens Grand PrixChess cycle event at Turkey in March, 2010.

success story of lavkush shukla

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