ONGC Videsh Declares FY’18 Financial Results

Financial results of ONGC Videsh Ltd, the wholly-owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), for the year ended March 31, 2018 were considered and approved by the Board in its meeting held on May 23, 2018. The performance highlights are as under:

Particulars Unit FY’18 FY'17 % Variation
Production (Standalone)
Crude Oil MMT 2.678 2.651 1.02
Natural Gas BCM 2.919 3.004 (2.83)
Total Oil and Oil Equivalent Gas MMTOE 5.597 5.655 (1.03)
Production (Consolidated)
Crude Oil MMT 9.353 8.434 10.90
Natural Gas BCM 4.811 4.369 10.12
Total Oil and Oil Equivalent Gas MMTOE 14.164 12.803 10.63
Financial (Standalone)
Income from operations ₹ crore 7,676 7,332 4.69
Net profit / (loss) after tax ₹ crore 411 1,749 (76.53)
Financial (Consolidated)
Income from operations ₹ crore 10,418 10,080 3.35
Net profit / (loss) after tax ₹ crore 981 757 29.60

Consolidated Production of Crude Oil and Oil Equivalent Gas during FY’18 was higher by 11% as compared to previous year. The incremental production was mainly from Vankorneft & Sakhalin-1 projects, Russia; BC-10 project, Brazil; an Exploratory Block CPO-5, Colombia and due to acquisition of 4% stake in the Lower Zakum Concession project in UAE during the year.

The Company recorded its standalone profit of ₹ 411 crore during the FY’18 against the profit of ₹ 1,749 crore during the previous financial year and the consolidated profit of ₹ 981 crore during FY’18 against consolidated profit of ₹ 757 crore during FY’17.

The Board of Directors has proposed a final dividend of ₹ 2.00 per share for the year ended March 31, 2018 (previous year: ₹ 1.40 per share) excluding dividend distribution tax to be paid on fully paid equity share of par value of ₹ 100 each. This dividend is subject to approval by the shareholders at the forthcoming Annual General Meeting.

A. New Acquisitions and Alliances

  • ONGC Videsh Vankorneft Pte Ltd (OVVL), a wholly-owned indirect subsidiary of ONGC Videsh, has completed the acquisition of 30% Participating Interest in Namibia Petroleum Exploration License 0037 on  October 3, 2017 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. Tullow with its remaining 35% Participating interest shall continue to be the operator of the License. Pancontinental Namibia (Pty) Limited with 30% Participating interest and Paragon Oil and Gas (Pty) Limited with 5% Participating interest are other partners in the License.
  • ONGC Videsh led Indian Consortium comprising of ONGC Videsh, Indian Oil Corporation Limited and Bharat Petro Resources Limited acquired 10% Stake in Lower Zakum Concession, Offshore Abu Dhabi. The Concession was awarded by the Supreme Petroleum Council (SPC), on behalf of the Abu Dhabi government, to the Abu Dhabi National Oil Company (ADNOC) and it is the first time that Indian oil and gas companies have been given a stake in the development of Abu Dhabi’s hydrocarbon resources. The Concession, which has a term of 40 years with an effective date of March 9, 2018 was signed by Shri Shashi Shanker, Chairman, ONGC Group of companies on February 10, 2018 at Abu Dhabi. The 10% PI is through the indirect subsidiary FOGBV incorporated in Netherlands on  February 6, 2018 with ONGC Nile Ganga BV, subsidiary of ONGC Videsh, holding 40% shares in FOGBV and both Indian Oil Corporation Limited (IOCL)  and Bharat Petro Resources Limited (BPRL) holding 30% each, through their respective Dutch subsidiaries. The production from the field is around 419,000 bopd and the share of production to FOGBV is around 42,000 bopd and ONGC Videsh share is around 16,800 bopd.
  • An Exploration Block in Israel with License 412/“32” has been awarded by Petroleum Commissioner to Indian Consortium on March 27, 2018 for exploration duration of 3 years.  ONGC Videsh is the operator and each Partner of the Indian Consortium, i.e. ONGC Videsh, Bharat Petro Resources Limited (BPRL), Indian Oil Corporation Limited (IOCL) and Oil India Limited (OIL) hold 25% Participating Interest (PI) each in the License.

B. Explorations and Operations

CPO-5, Colombia

The well Mariposa-1 was drilled to a total depth of 11,556 feet (MD) and log analysis indicated the presence of approximately 121ft of oil saturated net pay in the Lower Sands Unit. The well is currently under testing and activated on self. The well flowed light oil of 40.7 API @ 4523 bopd through 32/64” choke with 0.3% BS&W and gas @ 1,01,260 scfd. The discovery has opened up new play in CPO-5 block. More wells are likely to be drilled for the play.

Sakhalin-1, Russia

  • 30 years extension to the Production Sharing Agreement (PSA) of Sakhalin-1 block has been granted from 2021 to 2051.
  • Completed World’s Longest Extended Reach Drilling (ERD) well #O5RD with measured depth of 15,000 m on June 30, 2017.

ACG, Azerbaijan

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-Deep water portion of Gunashli (ACG) oil fields until December 31, 2049.

Rovuma Area-1 Project, Mozambique

Government of Mozambique has accorded approval for the Development Plan for Golfinho-Atum natural gas field in the Area 1 block located in the Rovuma Offshore Basin of Mozambique. The plan outlines the integrated development of the Golfinho-Atum field through an initial two-train onshore liquefaction plant with a total processing capacity of 12.88 MMTPA. The approval of the Development Plan is the culmination of several years of progress on technical and commercial aspects of the development. The Golfinho-Atum Project will also supply initial volumes of approximately 100 million cubic feet of natural gas per day for domestic sales for Mozambique’s industrial development which will have significant socio-economic impact.

C. Awards

During the year ended March 31, 2018, following awards and recognitions were conferred upon ONGC Videsh:

  • The President of India conferred the prestigious SCOPE award for Excellence and Outstanding Contribution to the Public Sector Management – Institutional Category II (Miniratna-I & II PSEs) for 2014-15 on April 11, 2017.
  • Golden Peacock Award for Risk Management 2017 instituted by the Institute of Directors (IOD) during Global Convention on Corporate Ethics & Risk Management.
  • The ICICI Lombard & CNBC-TV18 India Risk Management Award in the category of “Best Risk Management Framework & Systems – Risk Technology”.
  • Strategic Performance Award in Miniratna-I category at the 5th edition of Governance Now PSU Awards-2017.

D. About ONGC Videsh

ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India, and is India’s largest international oil and gas Company. ONGC Videsh has participation in 41 projects in 20 countries namely Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Israel, Iran, Kazakhstan, Libya, Mozambique, Myanmar, Namibia, Russia, South Sudan, Sudan, Syria, United Arab Emirates, Venezuela, Vietnam and New Zealand. ONGC Videsh maintains a balanced portfolio of 15 producing, 4 discovered/under development, 18 exploratory and 4 pipeline projects. The Company currently operates/ jointly operates 21 projects. ONGC Videsh had total oil and gas reserves (2P) of about 711 MMTOE as on April 1, 2018. For more information visit:  www.ongcvidesh.com.