ONGC Videsh Limited (OVL)

ONGC Videsh Limited – Working globally for the Energy Security of India


ONGC Videsh Limited, a Miniratna Schedule “A” Central Public Sector Enterprise (CPSE) of the Government of India under the administrative control of the Ministry of Petroleum & Natural Gas, is the wholly owned subsidiary and overseas arm of Oil and Natural Gas Corporation Limited (ONGC), the flagship national oil company (NOC) of India. The primary business of ONGC Videsh is to prospect for oil and gas acreages outside India, including exploration, development and production of oil and gas. ONGC Videsh owns Participating Interests in 39 oil and gas assets in 19 countries and produced about 29.5% of oil and 22.1% of oil and natural gas of India’s domestic production in 2018-19. In terms of reserves and production, ONGC Videsh is the second largest petroleum company of India, next only to its parent ONGC.

Current Assets Portfolio

ONGC Videsh has stake in 39 oil and gas projects in 19 Countries, viz. Azerbaijan (2 projects), Bangladesh (2 Projects), Brazil (2 projects), Colombia (7 projects), Iran (1 project), Iraq (1 project), Israel (1 project), Kazakhstan (1 project), Libya (1 project), Mozambique (1 Project), Myanmar (6 projects), Namibia (1 project), New Zealand (1 Project), Russia (3 projects), South Sudan (2 projects), Syria (2 projects), UAE (1 project), Venezuela (2 projects), and Vietnam (2 projects).

ONGC Videsh adopts a balanced portfolio approach and maintains a combination of producing, discovered, exploration and pipeline assets. Currently, ONGC Videsh has oil and gas production from 14 Assets, 4 Assets where hydrocarbons have been discovered and are at various stages of development, 18 Assets are under various stages of Exploration and 3 projects are pipeline projects.

Competitive Strengths

ONGC Videsh operates in highly competitive international oil and gas sector by competing with the best in the industry. Over the years, ONGC Videsh has built inherent capabilities and expertise in its areas of operations. ONGC Videsh has developed strong partnership alliance with a host of IOCs and NOCs including ExxonMobil, British Petroleum, Shell, ENI, Total, Repsol, Equinor, Chevron, Petrobras, Sodeco, Socar, Rosneft, ADNOC, Posco International, Kazmunaigaz (KMG), Petro Vietnam, CNPC, Sinopec, PDVSA, Petronas and Ecopetrol.

ONGC Videsh has highly skilled human resource with excellent technical and management capabilities. The company has built facilities for evaluation, interpretation, economic modeling, FEED, design and execution of oil and gas projects and enjoys the technical and human resource support from ONGC. ONGC Videsh has developed core expertise in due diligence, techno-commercial evaluations, bid negotiations and transaction documentations.


ONGC Videsh has 2P reserves of 675.721 MMTOE as on 01.04.2019.

Production Performance

ONGC Videsh is the first Indian Company to produce equity oil and gas abroad. ONGC Videsh’s production started in 2002-03 with commencement of production of Block 06.1 in Vietnam in January 2003. With sustained growth in production from its acquired assets, ONGC Videsh’s production reached 9.448 MMTOE in 2010-11. Adverse geo-political conditions in North Eastern Africa and force majeure situation in Syria caused decline in oil production to a level 7.260 MMTOE in 2012-13. However, in 2013-14, 2014-15 and 2015-16, production increased to the level of 8.357 MMTOE, 8.874 MMTOE and 8.916 MMTOE, primarily due to better management and addition in the portfolio. With acquisition of 26% stake in Vankorneft, Russia in 2016 and 4% stake in Lower Zakum Concession,UAE in 2018; production of ONGC Videsh has increased to 12.803 MMTOE for 2016-17 and 14.164 MMTOE in 2017-18.  ONGC Videsh’s  production of oil and oil equivalent gas (O+OEG) was 14.833 MMtoe during 2018-19.

Growth-New Horizons-recent Acquisitions

The following acquisitions have been done by ONGC Videsh in last 5 years:

Producing Assets

(a) ONGC Videsh Limited has acquired 26% equity (15% equity on May 31, 2016 and additional 11% equity on October 28, 2016) in CSJC Vankorneft, a company organized under the law of Russian Federation which is the owner of Vankor Field and North Vankor license. Rosneft Oil Company, NOC of Russia holds 50.1% shares in Vankorneft. Indian consortium of Indian oil PSUs comprising Oil India Limited, Indian Oil Corporation Limited and Bharat Petro Resources Limited holds the remaining 23.9% equity.

Vankor is Rosneft’s (and Russia’s) second largest field by production and accounts for approx. 4% of Russian production. The daily production from the field is around 0.4 million bpd of crude oil on an average.

(b) On February 10, 2018, ONGC Videsh led Indian Consortium signed definitive binding agreements with Supreme Petroleum Council, ADNOC and OPCO, on behalf of the Abu Dhabi Government for acquiring 10% Stake in Lower Zakum Concession, Offshore Abu Dhabi, UAE. ONGC Videsh PI in the concession is 4%. The Concession, which has a term of 40 years, came into effect from March 09, 2018. The field is currently producing about 400,000 bopd and is to set to achieve plateau target of 450,000 bopd by 2025.

Discovered Assets

(a) ONGC Videsh and Oil India Limited acquired 100% shares in Videocon Mozambique Rovuma 1 Limited, the company holding a 10% PI in the Rovuma Area 1 Offshore Block in Mozambique (Area 1) on January 07, 2014.

(b) ONGC Videsh has also acquired a direct 10% PI in the same Rovuma Area 1 Offshore Block in Mozambique from Anadarko Mozambique Area 1 Limited, an affiliate of Anadarko, on February 28, 2014.

Exploratory Assets

(a) In September 2013, an ONGC Videsh led 50-50 consortium with Oil India Limited was awarded two shallow water blocks in offshore Bengal Basin in Bangladesh namely SS-04 and SS-09. PSCs for these blocks were signed in February, 2014.

(b) In October, 2013, ONGC Videsh was awarded two onshore blocks namely B-2 and EP-3 in the Myanmar Onshore Bidding Round 2013. Block B2 is located in the Zebyutaung–Nandaw area and geologically in the Northern part of the Chindwin Basin of Myanmar and Block EP-3 is located in the Central Burma Basin (BagoYoma Sub Basin). PSCs for these blocks were signed on August 08, 2014.

(c) In December 2014, ONGC Videsh was awarded one exploratory block, PEP 57090, in the Taranaki offshore basin in New Zealand bidding round 2014. PSC for the block was signed on December 09, 2014.

(d) In October, 2017, ONGC Videsh completed the acquisition of 30% PI in Namibia Petroleum Exploration License 0037 for Blocks 2112A, 2012B and 2113B and related agreements (License), Offshore Namibia from Tullow Namibia Limited (Tullow), a wholly owned subsidiary of Tullow Oil plc.

(e) Block in Israel with License 412/“32” dated March 27, 2018 was granted by Petroleum Commissioner to Indian Consortium for first phase of exploration with a duration of 3 years. ONGC Videsh is an operator with Participating Interest (PI) of 25% from the Indian Consortium and other partners are Bharat Petro Resources Limited (BPRL), Indian Oil Corporation Limited (IOCL) and Oil India Limited (OIL) with 25% PI each.

Contract Extensions

(a) On September 28, 2017, Authorized State Body (ASB) of Russia has approved the extension of Production Sharing Agreement (PSA) for Sakhalin-1 project for 30 years from December 3, 2021 to December 3, 2051.

(b) Consortium partners of the giant ACG Fields in Azerbaijan have entered into an agreement with Azerbaijan Government and State Oil Company of the Azerbaijan Republic (SOCAR) for extension of duration of the Production Sharing Agreement (PSA) for Azeri-Chirag-Deepwater portion of Gunashli (ACG) oil fields until December 31, 2049.