COMPREHENSIVE GUIDELINES FOR FOREIGN COMPENSATION FOR OFFICERS OF

ONGC/ OVL DEPUTED OVERSEAS FOR CARRYING OUT LONG-TERM ASSIGNMENTS

FOR OVL AND OPERATORS OF OVL'S JOINT VENTURES

1.0 Introduction

1.1 In view of the expanding overseas activities of ONGC Videsh Ltd., it has become essential to
develop comprehensive guidelines for compensating the Officers of ONGC/OVL deputed overseas
for carrying out long-term assignments for OVL and operators of OVL's Joint Ventures. The
guidelines, as detailed hereunder, deals with the remuneration and other terms & conditions of such
deputations.

2.0 Applicability

2.1 These guidelines shall be applicable w.e.f. 1st April, 2006.

2.2 Any officer from OVL or ONGC deputed abroad for OVL's assignments for a continuous period
of more than 90 days (including the rotational off-period, if any) shall be covered under these
guidelines. Other overseas deputations (that is, for 90 days or less) shall be governed as per the
prevailing circular on regulation of daily allowance for deputation abroad. Exceptional cases, if any,
shall be decided with the approval of MD, OVL.

2.3 References to OVL, to the extent the context permits, in these guidelines include ONGBV, and
any other subsidiaries or Joint Ventures of OVL, as may be notified from time-to-time, with the
approval of MD, OVL. References to OVL's offices and officers posted therein shall be construed
accordingly. These guidelines also apply to ONGC/OVL employees deputed to OMEL for posting
abroad.

3.0 Family / Bachelor Status

3.1 The Posting Stations overseas shall be categorized as Family Stations or Non-Family Stations, as
detailed below:-

Family Stations
Sudan, Vietnam, Brazil, Amsterdam, Kazakhstan, Cuba, Iran, Syria, Myanmar, Egypt, Qatar,
Dubai

Non-Famil Stations
Sakhalin (Russia), Iraq, Libya, Nigeria

Any subsequent addition or deletion of posting stations to above list, or change of Family Station to
Non-family station or vice-versa, will be with the approval of MD, OVL.

3.2 Officers deputed abroad to a Family Station may opt for either Bachelor or Family status.

3.3 Family status shall be allowed only in case of overseas deputation for 6 months duration or
more. The officer shall be required to intimate his option for Family status to the Incharge HR/ER,
OVL, New Delhi through OVL's Country Manager / Senior most Country representative in the
country of posting, within 60 days from the date of officer's arrival in the country of posting, failing
which he shall be treated as on Bachelor status.
3.4 Family for this purpose shall be considered to comprise of self, spouse and two dependant
children for officers who joined the company after 11/9/87 and self, spouse and three dependant
children for officers who joined the company prior to 11/9/87.

3.5 In case an officer with Bachelor status intends to take his family to the place of his posting abroad:

a) Prior approval of Competent Authority (the Country Manager/ Senior most Company
Representative in country of posting for their subordinate officers and MD,OVL, for Country
Manager/ Senior most company representative) shall be obtained by the officer and any additional
cost to the Company shall be borne by the individual,

b) Medical insurance shall be obtained and maintained by the officer for the accompanying family
members, prior to departure o avoid health related problems abroad. Any expel towards such medical
insurance / treatment abroad, shall be borne by the officer concerned.

c) The accompanying family members may be given consultations / minor treatment abroad by an
ONGC/OVL doctor, if any, at the place of posting abroad. However, any expenditure arising out of
reference to an outside doctor / hospital for treatment, shall be dealt under the medical insurance cover
undertaken by the officer or borne by him / her.

d) Exceptions to above, if any, are to be decided on case to case basis with approval of MD,
OVL.

4.0 Salary Structure

4.1 The composite salary, effective from 1.4.06, shall comprise of (a) Base Component (Part

A) which is same for all countries, and (b) Country Dependent Component (Part B). The
following would be the salary structure w.e.f. 1 st April 2006:

Level Existing
Compos Base Country Dependant Component Composite Salary (US$ per
Compone (Part B) (US$ per month) month)
 ite nt (Part
salary A) (US$
for per
Sudan month)
(US$ Russia Russia
per (Including (and Sudan (and
month) 3% Sudan countrie Netherland (and countrie
annual (and s with (and countri s with Netherland
escalation countries DA of countries es with DA of (and
w.e.f with DA US$ with DA of DA of US$ countries
01.04.200 of US$ 56.25/da US$ US$ 56.25/d with DA of
6) 45/day) y) 75/day) 45/day) ay) US$ 75/day)
E1 2700 1751 1000 1250 1667 2751 3001 3418
E2 2800 1854 1000 1250 1667 2854 3104 3521
E3 2900 1957 1000 1250 1667 2957 3207 3624
E4 3000 2060 1000 1250 1667 3060 3310 3727
E5 3100 2163 1000 1250 1667 3163 3413 3830
E6 3200 2266 1000 1250 1667 3266 3516 3933
E7 3300 2369 1000 1250 1667 3369 3619 4036
E8 3400 2472 1000 1250 1667 3472 3722 4139
E9 3500 2575 1000 1250 1667 3575 3825 4242

4.2 An escalation @ 3% per annum would be allowed on the Base Component (Part A) only w.e.f. l st
April 2006. Such escalation would not be allowed on the Country Dependant Component (Part B).
Part A includes the Indian salary which would have been paid to the officer every month ip, India,
including payments like Basic Pay, Personal Pay, Stagnation Pa Special Pa , D.A., DSCA,
Qualification / Family Planning mere payments i.e. REH, Annual Incentive, Profit Sharing /
Productivity, Holiday Home, LFA (Home Town as well as other than Home Town) shall also be paid
to the officer over and above the composite salary based on last drawn Indian salary.

4.3 Pro-forma Pay-roll shall be prepared either by OVL (in case of transfer) or the concerned finance
in ONGC (in case the officer is only earmarked for the period of assignment) only to ascertain various
deductions such as employees contribution towards CPF/FPF, PRBS, CSSS, repayment of
loans/interest thereon etc. including employer's contribution to CPF/FPF, PRBS etc. Such deductions
shall be based on the last Indian salary rate applicable to the officer before overseas posting. Amounts
of all the above deduction, shall be remitted to ONGC or OVL, as the case may be, by OVL / foreign
office. Employer's contribution shall be borne by OVL.

4.4 During the period of leave, salary payment shall be made as follows-

(a) in case of an officer posted in joint venture operator's offices (including its field operations), full
salary shall be paid only when the officer avails the off period admissible by the joint venture
operator. No leave of any kind shall be allowed to be suffixed or prefixed with the admissible
rotational off.

(b) in case of an officer posted in OVL's offices, full composite salary shall be paid for the period of
earned leave availed to the extent of earned leave accruing to him during the foreign assigmnent
period (calculated as two-and-a-half days of earned leave for every completed month of assignment).
Such earned leave can also be availed by officers along-with the rotational-off (Bachelor status only)
subject to a maximum of 7 days at a time.
(c) in circumstances other than mentioned above (a & b), the officers shall be paid only Indian
component of the Salary, as per the existing provisions.

5.0 Grossing up income tax /statutory contributions

5.1 Taxes on income from employment as well as statutory contributions such as social security
payments, as applicable under the laws of the country of posting, shall be borne by OVL by grossing
up. Indian tax liability, as applicable, including on the income received/earned abroad is to be borne
by the individual. Tax compliance and cost thereof, shall be the sole responsibility of the officer.

6.0 Medical Insurance/ Facilities

6.1 OVL shall provide free medical facilities or obtain and maintain medical insurance in respect of
all officers posted overseas for the entire duration of their stay abroad. Such medical facilities /
insurance shall also be extended to the family members (as defined in para 3.4 above) in case of
Family status. Members of the family eligible for medical facilities under normal ONGC rules to
whom overseas medical facility / insurance has not been given, as above, shall continue to be
entitled to medical treatment in India as per normal ONGC rules.

6.2 Amounts not covered under such insurance, including deductibles, shall be reimbursed to the
officer at actual on production of original receipts, as per ONGC's prevailing rules.

6.3 While in India, medical facility as per ONGC rules will be applicable to the officer and his
family

7.0 Residential Accommodation

7.1 The officers with Bachelor status may continue to retain leased, self leased, colony
accommodation or avail HRA as per the entitlement at their last place of posting or any other
place in India, as per ONGC rules for transfer of an officer from one region to the other. The HQr
of all officers with overseas postings shall be deemed to be New Delhi for restriction of
transportation charges for shifting household articles. No disturbance allowance shall be paid.

7.2 The officers with Family status shall be allowed to retain the accommodation at their last
place of posting upto a maximum period of 60 days of the officer exercising the option of family
status. In case of any deviation, penal rent as per prevailing ONGC rules shall be charged.
Exceptions due to delays in immigration clearances etc. shall be decided with the approval of
MD, OVL. The officer opting Family status shall be entitled to HRA at actual expenditure
(receipt to be produced) subject to a maximum of 50% of the entitled HRA of last place of
posting based on last Indian salary rate for keeping his/her personal household articles in India
and stay of his family members as per ONGC rules but not covered in para 3.4. No colony
accommodation or company leased accommodation shall be allowed for this purpose. No
disturbance allowance shall be paid.

7.3 The officers shall be provided free furnished accommodation, with basic amenities (i.e.
electricity, gas, water, administrative charges, furniture, kitchen utensils, parking, television,
telephone, AC I heating system, refrigerator and internet connection) at the place of posting by
OVL either through its own office or through the JV partner/operator. Expenditure on hiring of
accommodation, furnishing and other amenities shall be fixed by OVL keeping in view the
market trend in various countries, status of the officer (Bachelor or Family) and the level of the
officer on the recommendations of the Country Manager and with the approval of MD, OVL. The
rates for hiring furnished accommodation for each country will be approved by MD, OVL on the
recommendations of the Country Manager or by a Committee where no Office exists. Once the
rates are approved, I/c-HR/ER will be permitted to approve formalization of hiring within the
approved limits. Any exceptions to be above will require approval by MD, OVL.

7.4 Direct payment by OVL, as far as possible, will be made to the owner/ concerned service
providers for rental and other charges and all the contracts, as far as possible, will be in
company's name.

7.5 The residential accommodation will be provided to the officer immediately on arrival.
However, in case of any delays, hotel accommodation at the time of joining may be provided for
initial period of maximum 15 days, subject to a maximum of US$ 150 per day, on submission of
original receipt.

8.0 Transport

8.1 The Country Manager / Senior most Company Representative of OVL shall be provided with
a Car for official purpose, which could also be used by other officers for official purpose, subject
to the availability. For other officers, pooled transport will be provided by Country Manager/
Senior most Representative, for official purpose, with the approval of MD, OVL considering
factors like level of OVL's activity in the country, nature of activities, number / level of officers
posted, availability of public transport etc.

8.2 CMRE in India shall not be paid during deputation abroad.

9.0 Telephone

9.1 Telephone connection at residence and mobile phone connection (mobile instrument to be
provided to officers in the rank of General Manager and above) shall be provided by OVL, for
official usage.

9.2 Landline telephone calls, both in Office and at Residence, shall be allowed on actuals on
certification by the Officer concerned, except for personal STD and ISD calls. Personal calls are
to be reimbursed as per the clause 9.3 below.

9.3 Reimbursement / payment of personal telephone calls up to a maximum of 'US$ 100 per
month shall be admissible.

9.4 Mobile phone SIM cards are to be provided by Country Manager/ Senior most Rep of OVL.

10.0 Entertainment Expenditure/ Harsh Climate Allowance

10.1 The Country Manager and the designated Project Coordinators, posted overseas, shall be
entitled to reimbursement of entertainment expenditure of US$750 and US$450 per quarter,
respectively, on production of original receipts. Reimbursement of entertainment expenditure for
official purpose, over and above these limits, shall require prior approval of ED, OVL.

10.2 The Country Manager shall be entitled for a membership of one Club at the place of posting
with the approval of MD, OVL.

10.3 Officers deputed to Sakhalin (Russia), Kazakhstan & Iraq (harsh climate areas) shall be
granted an allowance of US$ 250 per month. Inclusion of any other posting station for payment
of Harsh Climate Allowance shall be decided by MD, OVL, on case to case basis, depending on
climatic conditions at the place of work and specific assignment.

10.4 Posting to Offshore areas will continue to be governed by ONGC rules and regulations, and on
Indian notional salary.

11.0 Children Education Allowance (CEA)

11.1 CEA for officers posted abroad with family status shall be admissible for dependant children at
the place of overseas posting.

11.2 Actual expenses for academic purposes i.e. registration fee, admission fee, school fee etc in
schools approved by JV Operator or by OVL or MEA, shall be reimbursed to the officer, against
recovery of an amount of 10% of the fee.

11.3 Expenditure on transport by school bus/similar public transport shall be reimbursed to the
officer.

11.4 All other expenditure, e.g. on school uniform, books, stationery, extra curricular activities etc.
will be borne by the officer concerned.

12.0 Home Leave Passage

12.1 Officers with Bachelor status shall be provided up to four round trip tickets in a year from, the
place of posting to international airport nearest to his last place of posting or family station (in case
the officer has opted to keep the family at a station other than the last place of posting) and shall be
reimbursed cost of travel from such airport to the last place of posting or family station by the entitled
mode and class of travel as applicable under ONGC rules on the subject. The entitlement shall
become due on a quarterly basis, the first one getting due after three months / as per applicable On-
Off pattern from the date of officer joining the place of posting abroad. The officer shall, however
,have the option to utilize one or more round tickets out of four tickets due to him in a year for the
travel of his/her spouse / other family members to the place of overseas posting from India and back.

12.2 The officers with family status will be entitled annually to Home Leave Fare for self and family
from the place of deputation to India and thereafter to the home town/ last place of posting. While the
entitlement shall become due on annual basis, the same could be utilised after six months from the
date of officer joining the place of posting abroad.

12.3 The officer shall be allowed accompanied baggage up to 50 kgs in case of bachelor status and
150 kgs in case of family status each at the beginning and end of the posting, inclusive of the entitled
luggage permissible by the airline of travel.

13.0 Official Tours

13.1 The officers, posted in OVL offices abroad, shall undertake official tours within the country of
posting with the approval of Country Manager / Senior most officer at the place of posting and
concerned line managers at OVL, Delhi for the Country Manager. Tours outside the country of
posting will require approval of MD, OVL. In case of OVL subsidiaries, tours within the country of
posting shall require approval of a Director of such subsidiary and outside the country of posting by
MD, OVL. The officers seconded to a IV Partner / Operator can undertake official tours in the country
of posting or outside, with the approval of Competent Authority of the JV partner / Operator with
information to the Country Manager / Senior most officer at the place of posting and MD, OVL
(through Country Manager / Senior most officer) in case of tour outside the country of posting.
13.2 Country Managers and officers in the rank of GMs and above shall be entitled to travel by
Business Class. The officers seconded to JV partner / Operator shall travel as per prevailing
guidelines of the JV Partner/Operator. OVL officers posted at stations where OVL offices have been
maintained to support JV operations, shall be entitled to travel as per the travel class available to
officers of OVL of same rank posted in the office of JV Partner/ Operator. Wherever the costs are
reimbursable by the JV partner/ operator, the officers of all levels will be allowed to travel by the
class as per the reimbursement admitted by the JV Partner/ Operator. Whenever any officer not
seconded to JV Partner/ Operator, travel as a part of the same group with the JV Partner/ Operator/
Client/ Advisors, the officer shall be entitled to travel in the same class as of the IV Partner/ Operator/
Client/ Advisors, with the approval of the Country Manager / ED, OVL.

13.3 Daily allowance/ hotel charges, telephone charges, local conveyance, incidentals etc. Will be
payable as per rules of OVL / JV Partner / Operator, as the case may be, in this regard, for tours
outside the country of posting. For tours within the operational areas in the country of posting, the
officers will be provided OVL/ operator's boarding, lodging and transport, including local transport,
no D.A. would be admissible.

14.0 Leave

14.1 Officers shall be entitled for three national holidays of India and closed, holidays as followed by
the JV partner/ operator / Govt. in the country of posting.

14.2 Earned leave, half pay leave and commuted leave shall be allowed as per ONGC rules. Availing
of leave and payment during such period shall be as brought out in para 4.4. Monthly Absentee
Statement shall be sent to the last place of posting and OVL, New Delhi office by the Country
Manager / Senior most officer, as the case may be, by 10 th of the following month.

14.3 Casual leaves admissible as per ONGC rules to the officers posted abroad on bachelor status,
shall be deemed to be offset against their quarterly off days. Accordingly, no casual leaves would be
available to the officers with Bachelor status. In case an officer serves abroad only for part of a
calendar year, CL will be deemed utilized pro-rata basis.

14.4 Leave encashment shall be allowed in Indian Rupees based on last Indian salary rate as per
ONGC rules.

14.5 Officers with Bachelor status, posted in OVL offices, shall work on 80 days(ON) and 10 days
(OFF) pattern. The off period shall include public holidays and weekly off days (eg. Saturday and
Sundays or Fridays and Saturdays, as the case may be) even as suffix and prefix. However, in case the
officer is seconded to a IV Partner / Operator, the officer shall follow the on-off pattern followed by
JV partner/operator, including the class of travel. The officers posted in OVL offices shall also be
allowed to avail leave applicable as per ONGC/OVL rules. The leave shall be sanctioned by the
Country Manager / Senior most officer present in the country of posting or in the absence of whom by
ED, OVL. The leave information shall be passed on to I/c HR-ER, OVL as well as to payroll office
in India of the concerned individual.

14.6 The Senior most Officer available in the country of posting shall be considered as the Controlling
Officer for the purpose of countersigning of all claim, forms and furnishing Monthly Absentee
Statement.

15.0 Bonus received from JV partner/ operator

15.1 Bonus received from the JV partner/ operator by ONGC/OVL officers will be remitted to OVL
account and not, retained by the officer concerned.
16.0 Service Bond

16.1 Before proceeding on a long term foreign assignment, the officer shall be required to execute an
agreement to serve ONGC/ OVL for a minimum period of three years after return from the said
posting, failing which the officer shall pay Rs 15,00,000.00 (Rupees Fifteen Lakh) to ONGC/ OVL.
The Performa of the agreement, to be signed by the officers, is enclosed at Annexure I. This
condition of executing the agreement shall also apply to the officers who are posted abroad on the
date of issuance of these guidelines, whether in OVL's offices or on secondment to JVs / other
companies. The proforma of the agreement shall be signed by the officers, deputed abroad after the
issuance of these guidelines, prior to travel on posting abroad and by officers already on deputation,
immediately on issuance of these guidelines.

16.2 All Officers concerned are to fill up the bond and hand over to HR Deptt of OVL at Delhi before
proceeding on deputation abroad, on a non-judicial stamp paper of RS 100, to be purchased in the
name of the individual. Manager (P&A) - Estt., OVL, to ensure compliance, including in respect of
existing Officers posted overseas.

17.0 The posting abroad for a period of two years shall be considered as posting to a new Region for
all administrative matters.

18.0 Compensation package, as per these guidelines, is all inclusive and no other allowances whether
in India or abroad shall be admissible. These guidelines shall supersede all earlier orders issued in this
regard, including that for secondment to ONGBV. MD, OVL may approve such clarifications and
modifications as may be needed from time-to-time to achieve the objectives of the guidelines or for
operational reasons.

19.0 Any issues not covered under these guidelines will have to be referred to dVL, Delhi, with full
details, for kind consideration of MD, OVL.