ONGC posts impressive results for Q2 FY-14

Oil and Natural Gas Corporation Limited (ONGC) has notified 6 new oil & gas discoveries (Onland:2 & Offshore:4) in the first half year of fiscal FY'14.

A. Discoveries

Basin Name of the well HC Type Pool/Prospect
Cambay Onland Gandhar-686 (GGAE) Oil & Gas Pool
Kutch (SW) GK-28-9 (GK-28-G) Gas Pool
GK-42-3 (GK-42-F) Gas Pool
KG (SW) KGOSN041NANL-2 Gas Prospect
GKGOSN041NANL-1 Gas Prospect
KG Onland Seripalem-1(SRM-AA) Gas Prospect
Western Offshore MBOS51NAA#1 Gas Prospect

The details of the discoveries in brief are given below:

I. GK-1. GK-28-9 (GK-28-G) Kutch Offshore:

GK-28-9 was drilled to a depth of 1365 m (TD-1430 m) with an objective to explore the prospectively of Middle Miocene, Early Eocene and Palaeocene, east of GK-28 Structure in GK-28 PML.

Two objects were tested conventionally. Object-I, (1251-49 m, Nakhatarana Formation) flowed gas @ 2, 21,950 m3 /day through ½” choke and Object-II, (1197-93 m, Jakhau Formation) flowed gas with surges of water.

There are three more prospective zones in this well which will be tested later.

This is a New Pool Discovery in Nakhatarana Formation and will help in ONGC's ongoing efforts of early monetization of the field.

II. GK-42-3 (GK-42-F) Kutch Offshore:

GK-42-3 was drilled in the NNE of discovery well GK-42-1 to upgrade the reserves and assess the potential of the Jakhau Reservoir (Early Eocene) established by GK-42-1.

The Object-II (1276.5-74.5 m, Nakhatarana Formation) flowed gas @ 2, 24,544 m3 per day through ½" choke.

This is a New Pool Discovery in Nakhatarana Formation will also help in ONGC's ongoing efforts of early monetization of the field.

III. Seripalem-1(SRM-AA), KG Onland Basin

Seripalem-1 was drilled to a depth of 4056 m with an objective to explore Golapalli & Tirupati formations.

Object-VII (3357-3360 m) flowed gas @ 74,600 m3/d.

This has established the prospectivity of Rahgavapuram shale play in area between Kaviatam and Bantumilli South fields.

IV. KGOSN041NANL-2 (KGOSN041NANL-A) KG Offshore (SW) Basin :

KGOSN041NANL-2 in NELP block KG-OSN-2004/1, was drilled to explore Pliocene Sequence.

Object-I, in the interval 1249-31 m was tested and flowed gas @ 66,601 m3/day through 1/4" choke (@ 1, 50,034 m3/day through 3/8" choke).

This is the fourth discovery (new prospect) in the block; after Chandrika South, Alankari and Saveri, signifying the hydrocarbon potential of the block.

This discovery will further boost ONGC's efforts towards attaining critical hydrocarbon volumes for viability of a possible cluster based development for the block.

V. KGOSN041NANL-1, KG Offshore (SW) Basin

KGOSN041NANL-1 in NELP block KG-OSN-2004/1 was drilled to explore Pliocene & Miocene Formations.

Object-II (1440.5-1442.5, 1451-1455, 1459.5-1460.5m) in Pliocene Formation produced gas @ 2,61,269 m3/d and water @ 41 bpd (1/2" choke).

This discovery will also further boost ONGC's efforts towards attaining critical hydrocarbon volumes for viability of a possible cluster based development for the block.

VI. Gandhar-686 (GGAE), Cambay Basin:

The exploratory well, Gandhar-686 (GGAE) was drilled to explore hydrocarbon prospectivity of Gandhar Sands within Hazad Member of Ankleshwar Formation.

Object-III (2659.5-2656.5 m) in GS-11 Sand flowed oil @ 75.24 m3/d and gas 6,433 m3/d through 6 mm bean.

This new pool discovery in the south western part of the main Gandhar Field has opened up significant area for exploration and exploitation.

VII. MBOS51NAA#1(NELP Block NB-OSN-2005/1, Western offshore basin:

Exploratory well MBOS51NAA#1 in NELP block MB-OSN-2005/1, Western offshore basin was drilled to a depth of 3,385 m. Interval 2,549.5 to 2,555m in Tertiary Daman formation on testing through produced gas @ 250,107 m3/day and condensate @ 255 barrels/day through 3/8" choke.

Another interval 2,515.5 – 2,526.5m also in Tertiary Daman formation on testing through produced gas @ 209,734 m3/day and condensate @ 180 barrels/day through 3/8" choke.

This is the 2nd discovery in this block after earlier notified discovery MBOS51NBA#1. These discoveries in close vicinity of C-37/ C-39, B-9 areas will enhance the overall gas potential of the area.

Production of Oil, Gas and Value-Added Products: ONGC's Standalone Performance H1 FY'14 & Q2 FY'14, compared with H1 FY'13 & Q2 FY'13 figures:

  Q2 H1
  2012-13 2013-14 % variation 2012-13 2013-14 % variation
Crude oil production (MMT) 5.103 5.099 0.078 10.228 10.199 0.284
Condensate receipt (MMT) 0.513 0.466 9.162 1.030 0.950 7.767
Natural gas production (BCM) 5.898 5.816 1.390 11.822 11.591 1.954
Gas sales (BCM) 4.645 4.550 2.045 9.339 9.137 2.163
VAP production (KT) 792 767 3.157 1544 1506 2.461

B. Financial Highlights

ONGC Board, in its 249th meeting held on 13th November 2013 approved the financial results for 2nd quarter (Q2) and 1st Half year (H1) for fiscal 2013-14 (FY-14) as detailed below:

Details Q2 2013-14 Q2 % H1 H1 FY'13
2012-13 variation 2013-14 2012-13
Sales Revenue ( ₹ Crore) 22,384 19,853 12.7 41,666 40,001 82,552
Net Profit ( ₹ Crore) 6,064 5,897 2.8 10,080 11,974 20,925
Under recovery Discount
( ₹ in Crore)
13,796 12,330 11.9 26,418 24,676 49,421
Gross Realization (US$/bbl) 109.01 109.81 (0.7) 105.89 109.47 110.74
Net Realization (US$/bbl) 44.84 46.76 (4.1) 42.56 46.32 47.85
Gross Realization ( ₹ /bbl) 6,773 6,066 11.7 6,259 5,992 6,030
Net Realization ( ₹ /bbl) 2,786 2,583 7.9 2,515 2,535 2,606

Under Recovery Discount- Impact on Profit (rscrores)

Details Q2 H1 FY' 13
2013-14 2012-13 2013-14 2013-14
Gross Discount 13,796 12,330 26,418 24,676 49,421
Impact on Statutory Levies 2,251 1,815 4,070 3,578 7,362
Impact on Profit Before Tax 11,545 10,515 22,348 21,098 42,059
Impact on Profit After Tax 7,621 7,103 14,752 14,253 28,413

C. Overseas operations

OVL signs definitive agreements with Anadarko to acquire a 10% Interest in the Rovuma Area 1 Offshore Block in Mozambique

ONGC Videsh Limited has signed definitive agreements on 24th August 2013 with Anadarko to acquire a direct 10% participating interest in the Rovuma Area 1 Offshore Block in Mozambique for US$ 2,640 million.

The acquisition is subject to the approvals of the Governments of Mozambique and India, relevant regulatory approvals, pre-emption rights and other customary conditions. The transaction is subject to usual closing conditions and has long stop date of 28th February 2014.Area 1 covers approximately 2.6 million acres in the deep-water Rovuma Basin offshore Mozambique and represents the largest gas discovery in offshore East Africa with estimated recoverable resources of 35 to 65 trillion cubic feet.

OVL and OIL sign definitive agreements to acquire interest in Rovuma Offshore Block in Mozambique

ONGC Videsh Limited (OVL) and Oil India Limited (OIL) have jointly signed definitive agreements in Singapore on June 25, 2013 with Videocon Mauritius Energy Limited to acquire Videocon's 100% of shares in Videocon Mozambique Rovuma 1 Limited, the company holding a 10% participating interest in the Rovuma Offshore Block in Mozambique (Area 1) for US$ 2,475 million. The Area 1 covers approximately 2.6 million acres in the deep-water Rovuma Basin.

The acquisition is expected to be implemented via a newly incorporated entity; in which OVL and OIL are expected to hold equal stakes. The acquisition is subject to the approvals of the Governments of Mozambique and India, relevant regulatory approvals, pre-emption rights and other customary conditions. The transaction is expected to close in the fourth quarter of 2013. Area 1 represents the largest gas discovery in offshore East Africa with estimated recoverable reserves of 35 to 65 trillion cubic feet (tcf) and it has the potential to become one of the world's largest LNG producing hubs with first LNG expected by 2018.

OVL signs definitive agreements to acquire 12% PI in Block BC-10, Brazil

ONGC Videsh, through its affiliates, signed definitive agreements on October 11, 2013 to acquire 12% Participating Interest (PI) in Block BC-10, Campos Basin at Deep-water Offshore Brazil as part of the sale of 35% share made by Petrobras. ONGC Videsh had earlier acquired 15% PI in the block in 2006. The other partners in the block are Shell (Operator) with 50% PI and Petrobras with 35% PI.

ONGC Videsh acquires two blocks in Myanmar Onshore Blocks Bidding Round-2013

ONGC Videsh has been awarded two onshore blocks namely B2 (Zebyutaung-Nandaw) and EP-3 (Thegon-Shwegu) in the Myanmar Onshore Bidding Round 2013. This was announced by the Ministry of Energy, Republic of the Union of Myanmar recently in Sept'13. Block B-2, having an area of 16995 sq. kms., is located in Northern Myanmar, bordering the state of Manipur in India and Block EP-3, having an area of 1650 sq. kms., is located in Central Myanmar.

Earlier, Government of Myanmar had announced the 2nd Onshore Bid Round -2013 for 18 blocks on 17th January, 2013. ONGC Videsh was one of the 7 Indian companies which were shortlisted as Pre-qualified bidders. ONGC Videsh has a decade old presence in the E&P sector of Myanmar with 17% non-operating stakes in the fields Shwe & Shwe Phyu (Block –A1) and Mya North & Mya South (Block A3) with a total investment of USD 565 million as on 30th Sept. 2013. Myanmar is one of the focus countries for ONGC Videsh.

D. Refining

MRPL upgraded to Schedule-A company by DPE

Mangalore Refinery & Petrochemicals Ltd (MRPL), a subsidiary of ONGC and a Mini Ratna category 1 PSU, has been upgraded from Schedule B to A with effect from July 2013 by the Department of Public Enterprises. In the Oil & Gas sector, MRPL would be the 8th company to be in this category. Having entered the 'A' list, MRPL will now be entitled to more benefits and can now aspire for Navratna status.

 

E. Operations

ONGC sets another record of drilling the deepest well in India

ONGC Deepwater Drilling team has set record for drilling deepest ultra deepwater well in India by successfully drilling well KG-DWN-2005/1-D-1 by Rig DDKG1. The well was drilled to target depth of 7,725 m in 67 days with maximum mud weight of 11.7 ppg without any complication.

F. Agreements/ MOUs

ONGC signs MoU with RIL on Eastern Offshore facility sharing arrangement

ONGC signed an MOU with Reliance Industries Ltd (RIL) to explore the possibility of sharing RIL's infrastructural facilities in the East Coast on July 27, 2013. The MoU aims at working out the modalities for sharing of infrastructure, identifying additional requirements as well as firming up the commercial terms. This shall not only minimize ONGC's initial Capex but also expedite its field development resulting in early monetization of its deep-water fields adjacent to the fields of RIL.

OVL signs MOU with PDVSA for cooperation in oil field exploration and development

ONGC Videsh Limited (OVL) and Venezuelan state giant PDVSA signed an MOU in presence of Mr. D.K. Sarraf, MD, OVL and Mr. Ruben Figuera, Director of New Development, PDVSA on 9th October 2013 in Caracas. The MOU was signed on the conclusion ceremony of 1st Indo-Venezuela Hydrocarbon Business Roundtable in Caracas held during 7-9 October 2013. The MOU encompasses strategic cooperation and participation in the exploration and production of hydrocarbon resources in the oil-rich Faja area of Venezuela.

IEOT signs agreement with IIT-Bombay for Gas Hydrate related studies

ONGC's Institute of Engineering & Ocean Technology (IEOT), Panvel has signed an agreement for two collaborative research projects with IIT- Bombay on evaluation of sea floor stability and reservoir parameters of the hydrate bearing sediments from deep KG offshore areas. The objective of the first collaborative research project between IEOT and IIT Bombay is to model sea floor stability during gas production from gas hydrates using the data from KG basin. The objective of the second project with IIT Bombay is to study how gas and water migration takes place through the hydrate bearing sediments in KG basin.

G. Environment/ Sustainability

ONGC partners in ‘Clean India’ campaign

ONGC has associated with the ‘Clean India Campaign’ initiated by the Ministry of Tourism for restoration and preservation of historical monuments of the country. The campaign was inaugurated on July 24, 2013 by the Union Minister of State for Tourism Dr K Chiranjeevi with ONGC taking over the responsibility of preserving the ‘Taj Mahal’. The project is part of CSR initiative of ONGC. Besides the Taj, ONGC will also take up 5 other monuments - Red fort in Delhi, Ellora caves and Eliphanta caves, Golkonda Fort & and Shore temple at Mahabalipuram for restoration and preservation.

The Clean India campaign is an initiative of the Ministry of Tourism in collaboration with the Archaeological Society of India (ASI) is aimed at upgradation/ restoration, preservation, beautification and general cleanliness in and around monuments in India with an objective to increase tourist arrivals to the country and to improve the quality of services and provide a hygienic environment in and around the tourist destinations across the country.

 

H. Corporate Social Responsibility

ONGC announces Rs. 2 Crore aid for flood relief operations in Uttarakhand

ONGC has announced a contribution of Rs. 2 Crore to the Chief Minister's Relief Fund to provide immediate relief to the disaster struck Uttarakhand where unprecedented monsoon caused large scale destruction and huge loss of life. At the same time, ONGC rushed a medical team comprising of three doctors and para-medical staff from ONGC Dehradun to the Guptkashi area of Uttarakhand for rendering medical assistance to the calamity hit areas.

I. Rankings:

OVL is the most internationalized Indian Company: ISB Survey

ONGC Videsh Ltd (OVL) has been ranked as the top Indian company with the most global exposure, as per a survey conducted by the Indian School of Business (ISB) in collaboration with Brazil's Fundacao Dom Cabral.

J. Awards & Recognitions

ONGC shines amongst Best Indian Brands 2013

Economic Times-Brand Equity, a premier publication on brands and advertising, has listed ONGC as 14th most valued brand in its exclusive study done together with Inter-brand. The study places ONGC as the most valued brand amongst non-banking PSU and has ranked above several popular brands like Maruti, ITC, Axis Bank etc. SBI, a bank, is the only Govt. owned entity finding its place above ONGC.

ONGC Group secures PSU Champions Awards

ONGC secured 4 awards in the categories of Asset Utilization, and runners-up in Strategic Performance, Human Resource Utilization and Strategic Turnaround in the PSU Champions Awards 2013, organized by leading magazine Governance Now. Minister of Heavy Industries and Public Enterprises Mr. Praful Patel gave away the awards on July 24, 2013 at New Delhi.

ONGC bags prestigious OISD Awards

ONGC's Rajahmundry Asset bagged the Oil Industry Safety Directorate (OISD)'s "Best Overall Safety Performance of Oil and Gas Onshore Assets" and "Most Consistent Safety Performer Award" for the year 2011-12. In addition, JV operation at Panna gas field between ONGC, BG and Reliance, operated by BG India won the OISD award for "Best Production Platform – Pvt/JV Companies" for the year 2011-12.

K. Sports

National Accolades for ONGCians - Four 'Arjuna Awards'

Four ONGCians, Rupesh Shah (Billiards), Virat Kohli (Cricket), Amit Kumar Saroha (Athletics) and Rajkumari Rathore (Shooting), were conferred with the 'Arjuna Award' for the year 2013, in a traditional ceremony held at the Rashtrapathi Bhavan on August 31, 2013. ONGC bagged 4 of the 15 awards on offer. Ronjan Sodhi, another ONGCian, was conferred the Rajiv Gandhi Khel Ratna award for his outstanding achievements in sports.

Tenth Successive Petroleum Minister's Sports Award for ONGC

ONGC has retained the "Petroleum Minister's Trophy" for a record tenth consecutive year. CMD, Mr Sudhir Vasudeva and Director (HR) Mr K.S. Jamestin received the award along with the "Trophy for Excellence" from Hon'ble Union Minister for Petroleum & Natural Gas Dr M. Veerappa Moily in presence of Smt. Panabaka Lakshmi, Hon'ble Minister of State for Petroleum & Natural Gas.

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