INTRODUCTION

OIL INDUSTRY

The history of the Indian oil industry extends back to the period of the British Raj, at a time
when petroleum first became a primary global energy source.

Colonial rule, 1858-1947

The first oil deposits in India were discovered in 1889 near the town of Dig boi in the state
of Assam. This discovery came on the heels of industrial development. The Assam
Railways and Trading Company (ARTC) had recently opened the area for trade by building
a railway and later finding oil nearby. The first well was completed in 1890 and the Assam
Oil Company was established in 1899 to oversee production. At its peak during the Second
World War the Dig boi oil fields were producing 7,000 barrels per day.

Independence, 1947-1991

After India won independence in 1947, the new government naturally wanted to move
away from the colonial experience which was regarded as exploitative. In terms of
economic policy this meant a far bigger role for the state. This resulted in a focus on
domestic industrial and agricultural production and consumption, a large public sector,
economic protectionism, and central economic planning.

The foreign companies continued to play a key role in the oil industry. Oil India
Limited was still a joint venture involving the Indian government and the British
owned Burmah Oil Company (presently, BP) whilst the Indo-Stanvac Petroleum project in
West Bengal was between the Indian government. This changed in 1956 when the
government adopted an industrial policy that placed oil as a “schedule A industry” and put
its future development in the hands of the state. In October 1959 an Act of Parliament was
passed which gave the state owned Oil and Natural Gas Commission (ONGC) the powers
to plan, organize, and implement programs for the development of oil resources and the
sale of petroleum products and also to perform plans sent down from central government.

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India thus adopted the Soviet model of economic development and the state continues to
implement five-year plans as part of its drive towards modernity. The increased focus on
exploration resulted in the discovery of several new oil fields most notably the off-shore
Bombay High field which remains by a long margin India’s most productive well.

Liberalization, 1991-present

The process of economic liberalization in India began in 1991 when India defaulted on
loans and asked for a $1.8 billion bailout from the IMF. This was a trickle-down effect of
the culmination of the cold war era; marked by the 1991 collapse of the Soviet Union,
India’s main trading partner.

For the ONGC this meant being reorganized into a public limited company (it is now called
for Oil and Natural Gas Corporation) and around 2% of government held stocks were sold
off. Despite this however the government still plays a pivotal role and ONGC is still
responsible for 77% of oil and 81% of gas production while the Indian Oil Corporation
(IOC) owns most of the refineries putting it within the top 20 oil companies in the world.
The government also maintains sub sided prices. As a net importer of oil however India
faces the problem of meeting the energy demands for its rapidly expanding population and
economy and to this the ONGC has pursued drilling rights in Iran and Kazakhstan and has
acquired shares in exploration ventures in Indonesia, Libya, Nigeria, and Sudan.

INDUSTRIAL GAS

Industrial gases are a group of gases that are specifically manufactured for use in a wide
range of industries, which include oil and gas, Petrochemicals, chemicals, Power, mining,
steelmaking, Metals, Environmental, Protection, principal gases provide dare
nitrogen, oxygen. carbon dioxide, argon, hydrogen, helium and acetylene; Although a huge
variety of gases and mixtures are available in gas cylinders. The industry producing these
gases is known as the industrial gases industry, which is seen as also encompassing the
supply of equipment and technology to produce and use the gases.

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Industrial gas is sold to other industrial enterprises; typically comprising large orders
to corporate industrial clients, covering a size range from building a process facility or
pipeline down to cylinder gas supply. Trade scale business is typically done through
tied local agents who are supplied wholesale. This business covers the sale or hire of gas
cylinders and associated equipment to tradesmen and occasionally the general public. This
includes products such as balloon helium, dispensing gases for beer kegs, welding gases
and welding equipment, LPG and medical oxygen. Retail sales of small scale gas supply
are not confined to just the industrial gas companies or their agents. A wide variety of hand-
carried small gas containers, which may be called cylinders, bottles, cartridges, capsules or
canisters are available to supply LPG, butane, propane, carbon dioxide or nitrous oxide.
Examples are whippets, power, company and soda stream.

There are cases when a gas is not usually termed an "industrial gas"; principally where the
gas is processed for later use of its energy rather than manufactured for use as a chemical
substance or preparation.

 The oil and gas industry is seen as distinct. So, whilst it is true that natural gas is a
"gas" used in "industry" - often as a fuel, sometimes as a feedstock, and in this generic
sense is an "industrial gas"; this term is not generally used by industrial enterprises
for hydrocarbons produced by the petroleum industry directly from natural resources or in
an oil refinery. This includes LPG.
 The petrochemical industry is also seen as distinct. So petrochemicals (chemicals
derived from petroleum) such as ethylene are also generally not described as "industrial
gases".
 Sometimes the chemical industry is thought of as distinct from industrial gases; so
materials such as ammonia and chlorine might be considered "chemicals" (especially if
supplied as a liquid) instead of or sometimes as well as "industrial gases".
 Very small scale gas supply of hand-carried containers is sometimes not considered
to be industrial gas as the use is considered personal rather than industrial; and suppliers
are not always gas specialists.

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These demarcations are based on perceived boundaries of these industries (although in
practice there is some overlap), and an exact scientific definition is difficult. To illustrate
"overlap" between industries:

 Manufactured fuel gas (such as town gas) would historically have been considered
an industrial gas. Syngas is often considered to be a petrochemical; although its production
is a core industrial gases technology. Similarly, projects harnessing Landfill
gas or biogas, Waste-to-energy schemes, as well as Hydrogen Production all exhibit
overlapping technologies.
 Helium is an industrial gas, even though its source is from natural gas processing.
 Any gas is likely to be considered an industrial gas if it is put in a gas cylinder (except
perhaps if it is used as a fuel)
 Propane would be considered an industrial gas when used as a refrigerant, but not
when used as a refrigerant in LNG production, even though this is an overlapping
technology.
MARKET SIZE
Backed by new oil fields, domestic oil output is anticipated to grow to 1 MBPD by FY16.
With India developing gas-fired power stations, consumption is up more than 160 per cent
since 1995. Gas consumption is likely to expand at a CAGR of 21 per cent during FY08–
17. Presently, domestic production accounts for more than three-quarters of the country’s
total gas consumption.

India increasingly relies on imported LNG; the country was the fifth-largest LNG importer
in 2013, accounting for 5.5 per cent of global imports. India’s LNG imports are

forecasted to increase at a CAGR of 33 per cent during 2012–17. However, net imports of
Natural Gas fell from 13.14 BCM in 2012-13 to 13.03 BCM in 2013-14.
State-owned Oil and Natural Gas Corporation (ONGC) dominates the upstream segment
(exploration and production), accounting for approximately 68 per cent of the country’s
total oil output (FY14).

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Indian Oil Corporation Limited (IOCL) operates 11,214 km network of crude, gas and
product pipelines, with a capacity of 1.6 MBPD of oil and 10 million metric standard cubic
meter per day (MMSCMD) of gas. This is around 30 per cent of the nation’s total pipeline
network. IOCL is the largest company, operating 10 out of 22 Indian refineries, with a
combined capacity of 1.3 MBPD.

LIST OF OIL AND GAS EPC COMPANIES IN CHENNAI:

Indian Oil Corporation

Indian Oil Corporation (Indian Oil) is India's largest commercial enterprise headquartered
in Delhi, with a sales turnover of RS. 4,50,756crore (US$ 73.7 billion) and profits of RS.
5,273crore for the year 2014-15. It is also the leading Indian corporate in Fortune's
prestigious 'Global 500' listing of the world's largest corporates, ranked at the 119th
position for the year 2015.

As India's flagship national oil company, with a 33,000-strong work-force currently, Indian
Oil has been meeting India’s energy demands for over half a century. With a corporate
vision to be 'The Energy of India' and to become 'A globally admired company,' Indian
Oil's business interests straddle the entire hydrocarbon value-chain – from refining,
pipeline transportation and marketing of petroleum products to exploration & production
of crude oil & gas, marketing of natural gas and petrochemicals, besides forays into
alternative energy and globalization of downstream operations.

Having set up subsidiaries in Sri Lanka, Mauritius and the UAE, the Corporation is
simultaneously scouting for new business opportunities in the energy markets of Asia and
Africa. It has also formed about 20 joint ventures with reputed business partners from India
and abroad to pursue diverse business interests.

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Chennai Petroleum Corporation

Chennai Petroleum Corporation Limited (CPCL) is an Indian state-owned oil and gas
corporation headquartered in Chennai, India. It was formed as a joint venture in 1965
between the Government of India (GOI), AMOCO and National Iranian Oil
Company (NIOC) having a shareholding in the ratio 74%: 13%: 13% respectively. From
the grassroots stage CPCL Refinery was set up with an installed capacity of 2.5 Million of
Tones Per Annum (MMTPA) in a record time of 27 months at a cost of Rs. 430 million
without any time or cost overrun.

In1985, AMOCO disinvested in four of GOI and shareholding percentage of GOI and
NIOC stood revised at 84.62% and 15.38% respectively. Later GOI disinvested 16.92% of
the paid up capital in favor of Unit Trust of India, mutual funds, insurance
companies and Banks on 19 May 1992, thereby reducing its holding to 67.7%. The public
issue of CPCL shares at a premium of RS. 70 (RS. 90 to FIIs) in 1994 was oversubscribed
to an extent of 27 times and added a large shareholder base of over 90000.As a part of the
restructuring steps taken up by the Government of India, Indian Oil Corporation
Limited (IOCL) acquired equity from GOI in 2000-01 Currently IOC holds 51.88% while
NIOC continued its holding at Wax and Petrochemical feedstock production facilities.

CPCL has two refineries with a combined refining capacity of 11.5 Million of Tones Per
Annum (MMTPA). The Manali Refinery has a capacity of 10.5 MMTPA and is one of the
most complex refineries in India with Fuel, Lube, Wax and Petrochemical feedstocks
production facilities. CPCL's second refinery is Nagapattinam Refinery located at Cauvery
basin at Nagapattinam in panangudi. This unit was set up in Nagapattinam with a capacity
of 0.5 MMTPA in 1993 and later enhanced to 1.0 MMTPA.CPCL has also made pioneering
efforts in the field of Energy and Water Conservation by setting up a Wind Farm and
Sewage Reclamation and Sea Water Desalination Plants The crude throughput for the year
2011-12 was 10.557 million metric of tones (MMT). The company’s turnover for the year
2011-12 was Rs.45385 crores and the Profit after Tax was Rs.61.83 crores.

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The Company has declared a dividend of 20% on the paid-up equity share capital of the
Company for the year 2011-12.

Essar Oil

Essar Oil is an India-based company engaged in the exploration and production of oil and
natural gas, refining of crude oil, and marketing of petroleum products. It is a part of
the Essar Group based in Mumbai. It operates a major refinery in Vadina, Gujarat, India,
which made it the second largest non-state refiner in India in 2009.

In July 2009, Essar acquired a 50% stake in Kenya Petroleum Refineries Ltd. In July 2012,
following Gujarat High Court's directions Gujarat Government seized three bank accounts
of the company to recover its tax dues of Rs80 billion. It was a publicly traded
company (NSE: ESSAROIL & BSE: 500134), until it was taken private in a leveraged
buyout which closed on December 30, 2015. It delisted the company valued at ₹380
billion (US$5.7 billion) by paying ₹37.45 billion (US$560 million).

Oil and Natural Gas Corporation (ONGC)

ONGCisa multinationaloil and gas company headquartered in Dehradun, Uttarakhand, In

dia. It is a Public Sector Undertaking (PSU) of the Government of India, under the
administrative control of the Ministry of Petroleum and Natural Gas. It is India's largest oil
and gas exploration and production company. It produces around 69% of India's crude
oil (equivalent to around 30% of the country's total demand) and around 62% of its natural
gas.

On31March2013, its market capitalization was INR 2.6 trillion (US$48.98 billion),
making it India's second largest publicly traded company. In a government survey for FY
2011-12, it was ranked as the largest profit making PSU in India. ONGC has been ranked
357th in the Fortune Global 500 list of the world's biggest corporations for the year 2012. It
is ranked 22nd among the Top 250 Global Energy Companies by Plats.

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ONGC was founded on 14 August 1956 by Government of India, which currently holds a
68.94% equity stake. It is involved in exploring for and exploiting hydrocarbons in
26 sedimentary basins of India, and owns and operates over 11,000 kilometers of pipelines
in the country. Its international subsidiary ONGC Videsh currently has projects in 17
countries. ONGC has discovered 6 of the 7 commercially producing Indian Basins, in the
last 50 years, adding over 7.1 billion of tones of In-place Oil & Gas volume of
hydrocarbons in Indian basins. Against a global decline of production from matured fields,
ONGC has maintained production from its brownfields like Mumbai High, with the help
of aggressive investments in various IOR (Improved Oil Recovery) and EOR (Enhanced
Oil Recovery) schemes. ONGC has many matured fields with a current recovery factor of
25-33%. Its Reserve Replacement Ratio for between 2005 and 2013, has been more than
one.

INDIA'S CURRENT ENERGY CONSUMPTION MIX

 In 2014, coal accounted for 56.47 per cent of total primary energy demand.
 Energy demand in the Asia-Pacific region is expected to reach 5,627 Mtoe (Million
Tons of Oil Equivalents) by 2020 and 6,861 Mtoe by 2035.
 India’s energy demand is projected to double to 48.7 quadrillion Btu (British
Thermal Unit) by 2035.

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GOVERNMENT INITIATIVES
Some of the major initiatives taken by the Government of India to promote oil and gas
sector are:
 The Ministry of Petroleum and Natural Gas has put up for comments a draft policy,
to opt for revenue-sharing model while auctioning future oil and gas blocks for exploration
to private companies, compared to production-sharing mode earlier, in order to make the
process more transparent and market-oriented.
 Government of India entered into bilateral discussion with Norway to extend co-
operation between the two countries in the field of oil and natural gas and hydrocarbon
exploration.
 To strengthen the country`s energy security, oil diplomacy initiatives have been
intensified through meaningful engagements with hydrocarbon rich countries.
 PAHAL - Direct Benefit Transfer for LPG consumer (DBTL) scheme launched in
54 districts on November 11, 2014 and expanded to rest of the country on January 1, 2015
will cover 15.3 crore active LPG consumers of the country.
 24 x 7 LPG service via web launched to provide LPG consumers an integrated
solution to carry out all services at one place, through MyLPG.in, from the comfort of their
home.
 The Government of India launched the 'Give It Up' campaign on LPG subsidy that
helped it save Rs140 crore (US$ 21.11 million) as on 22nd July 2015 with nearly 12.6 lakh
Indians registering for the cause. As per recent statistics from oil ministry, as many as
30,000 to 40,000 households are giving up LPG subsidy each day.
ROAD AHEAD (Future Scenario)
By 2015-16, India’s demand for gas may touch 124 MTPA against a domestic supply of
33 MTPA and higher imports of 47.2 MTPA, leaving a shortage of 44 MTPA, as per
projections by the Petroleum and Natural Gas Ministry of India. Business Monitor
International (BMI) predicts that India would account for 12.4 per cent of Asia-Pacific
regional oil demand by 2015.

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 Profile of the company

Oil and Natural Gas Corporation Limited

Oil and Natural Gas Corporation Limited is an India-based oil exploration and
production company. The Company, through its subsidiaries, is engaged in exploration and
production of oil and gas in India and abroad, including refinery, power generation,
petrochemicals, liquefied natural gas (LNG) supply, pipeline transportation, special
economic zone (SEZ) development and helicopter services. Its segments include
Exploration & Production, and Refining. The geographical segments include operations in
two categories: In India, which includes onshore and offshore, and outside India. The
Company has made approximately 22 Oil and gas discoveries in domestic acreages. Out of
22, 10 discoveries are in offshore and 12 in onshore. The Company's subsidiaries include
ONGC Videsh Ltd. and Mangalore Refinery and Petrochemicals Ltd.

Oil and Natural Gas Corporation Limited (ONGC) is a Public Sector Undertaking (PSU)
of the Government of India, under the administrative control of the Ministry of Petroleum
and Natural Gas. It is India's largest oil and gas exploration and production company. It
produces around 70% of India's crude oil (equivalent to around 25% of the country's total
demand) and around 60% of its natural gas. With a market capitalization of over INR 2
trillion, it is one of India's most valuable publicly-traded companies.

1947 – 1960
During pre-independence, the Assam Oil Company in the North-Eastern, at tock Oil
company in North-Western part of undivided India were the only oil companies producing
oil in the country. The major part of Indian sedimentary basins was deemed to be unfit for
development of oil and gas resources.
After independence, the Government realized the importance of oil and gas for rapid
industrial development and its strategic role in define. Consequently, while framing the
Industrial Policy Statement of 1948, the development of the hydrocarbon industry in the
country was considered to be of utmost necessity.

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Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources
of India. Assam Oil Company was producing oil at Dig boi, Assam (discovered in 1889)
and the Oil India Ltd. (a 50% joint venture between Government of India and Burma Oil
Company) was engaged two fields Naharkatiya and Moran in Assam. In West Bengal, the
Indo - Standard Vacuum 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 offshore remained 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 Public Sector development. With this objective,
an Oil and Natural Gas Directorate was set up in 1955 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.
A delegation under the leadership of Mr. K D Malviya, the then Minister of Natural
Resources, visited several countries to study the oil industry and to facilitate the training of
Indian professionals for exploring potential oil and gas reserves. Foreign experts from
USA, West Germany, Romania and erstwhile USSR 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
2ndFive Year Plan (1956-57 to 1960-61).
In April 1956, the Government of India adopted the Industrial Policy Resolution, which
placed mineral oil industry amongst 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 limited financial and administrative powers
to function efficiently. So in August, 1956, the Directorate was raised to the status of
October 1959, the Commission was converted into a statutory body by an act of Parliament
which enhanced powers of the commission further.

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The main functions of the Oil and Natural Gas Commission subject to the provisions of the
Act, were "to plan, promote, organize and implement programs 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.
1961 – 1990
Since its inception, ONGC has been instrumental in transforming the country's limited
upstream sector into a large viable playing field, with its activities spread throughout India
and significantly in overseas territories. In the inland areas, ONGC not only found new
resources in Assam but also established new oil province in Cambay basin (Gujarat), while
adding new petroliferous areas in the Assam - Arakan Fold Belt and East coast basins (both
inland and offshore).
ONGC went offshore in early 70's and discovered a giant oil field in the form of Bombay
High, now known as Mumbai High. This discovery, along with subsequent discoveries of
huge oil and gas fields in Western offshore changed the oil scenario of the country.
Subsequently, over 5 billion of tones of hydrocarbons, which were present in the country,
were discovered. The most important contribution of ONGC, however, is its self-reliance
and development of core competence in E&P activities at a globally competitive level.
After 1990
The liberalized economic policy, adopted by the Government of India in July 1991, sought
to deregulate and de-license the core sectors (including petroleum sector) with partial
disinvestments of government equity in Public Sector Undertakings and other measures.
As Consequence thereof, ONGC was re-organized as a limited Company under the
Company's Act, 1956 in February 1994.

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After the conversion of business of the erstwhile Oil & Natural Gas Commission to that of
Oil & Natural Gas Corporation Limited in 1993, the Government disinvested 2 per cent of
its shares through competitive bidding. Subsequently, ONGC expanded its equity by
another 2 per cent by offering shares to its employees.

During March 1999, ONGC, Indian Oil Corporation (IOC) - a downstream giant and Gas
Authority of India Limited (GAIL) - the only gas marketing company, agreed to have cross
holding in each other's stock. This paved the way for long-term strategic alliances both for
the domestic and overseas business opportunities in the energy value chain, amongst
themselves. Consequent to this the Government sold off 10 per cent of its shareholding 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 the year 2002-03, after taking over MRPL from the A V Birla Group, ONGC diversified
into the downstream sector. ONGC has also entered the global field through its subsidiary,
ONGC Videsh Ltd. (OVL). ONGC has made major investments in Vietnam, Sakhalin,
Columbia, Venezuela, Sudan, etc. and earned its first hydrocarbon overseas revenue from
its investment in Vietnam.

Synopsis
ONGC was set up under the visionary leadership of Pandit JawaharLal Nehru. Pandit Nehru
reposed faith in Shri Keshav Dev Malviya who laid the foundation of ONGC in the form
of Oil and Gas division, under Geological Survey of India, in 1955. A few months later, it
was converted into an Oil and Natural Gas Directorate. The Directorate was converted into
Commission and christened Oil & Natural Gas Commission on 14th August 1956. In 1994,
Oil and Natural Gas Commission was converted in to a Corporation, and in 1997 it was
recognized as one of the Navratnas by the Government of India. Subsequently, it has been
conferred with Maharatna status in the year 2010.
Over 60 years of its existence ONGC has crossed many a milestone to realize the energy
dreams of India.

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The journey of ONGC, over these years, has been a tale of conviction, courage and
commitment. ONGCs’ superlative efforts have resulted in converting earlier frontier areas
into new hydrocarbon provinces. From a modest beginning, ONGC has grown to be one of
the largest E&P companies in the world in terms of reserves and production.
ONGC as an integrated Oil & Gas Corporate has developed in-house capability in all
aspects of exploration and production business i.e., Acquisition, Processing &
Interpretation (API) of Seismic data, drilling, work-over and well stimulation operations,
engineering & construction, production, processing, refining, transportation, marketing,
applied R&D and training, etc.
Today, Oil and Natural Gas Corporation Ltd. (ONGC) is, the leader in Exploration &
Production (E&P) activities in India having 72% contribution to India’s total production of
crude oil and 48% of natural gas. ONGC has established more than 7 Billion of tones of in-
place hydrocarbon reserves in the country. In fact, six out of seven producing basins in
India have been discovered by ONGC. ONGC produces more than 1.27 million Barrels of
Oil Equivalent (BOE) per day. It also contributes over three million of tones per annum of
Value-Added-Products including LPG, C2 - C3, Naphtha, MS, HSD, Aviation Fuel, SKO
etc.

VISION AND MISSION

To be global leader in integrated energy business through sustainable growth, knowledge
excellence and exemplary governance practices.

World Class
 Dedicated to excellence by leveraging competitive advantages in R&D and
technology with involved people.
 Imbibe high standards of business ethics and organizational values.
 Abiding commitment to safety, health and environment to enrich quality of
community life.

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 Foster a culture of trust, openness and mutual concern to make working a stimulating
and challenging experience for our people.
 Strive for customer delight through quality products and services.
Integrated in Energy Business
 Focus on domestic and international oil and gas exploration and production business
opportunities.
 Provide value linkages in other sectors of energy business.
 Create growth opportunities and maximize shareholder value.
Dominant Indian Leadership
 Retain dominant position in Indian petroleum sector and enhance India's energy
availability.
PEOPLE
Our People

"Not only had India... set up her own machinery for oil exploration and exploitation... an
efficient oil commission had been built where a large number of bright young men and
women had been trained and they were doing good work."
- Pandit JawaharLal Nehru, India's first Prime Minister to Lord Mountbatten, on ONGC
(1959).

Today, ONGC is the flagship company of India; and making this possible is a dedicated
team of nearly 33,000 professionals who toil round the clock. It is this toil which amply
reflects in the aspirations and performance figures of ONGC. The company has adopted
progressive policies in scientific planning, acquisition, utilization, training and motivation
of the team. At ONGC, everybody matters, every soul counts.

ONGC has a unique distinction of being a company with in-house service capabilities in
all the activity areas of exploration and production of oil & gas and related oil-field
services.

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Needless to emphasize, this was made possible by the men & women behind the machine.
Over 18,000 technically-competent experienced scientists, engineers and specialist
professionals, mostly from distinguished Universities / Institutions of India and abroad
form the core of our executive profile. They include geologists, geophysicists, and
geochemists,

drilling engineers, reservoir engineers, petroleum engineers, production engineers,

engineering & technical service providers, financial and human resource experts and IT
professionals.

HR VISION, MISSION & OBJECTIVES

HR Vision

"To build and nurture a world class Human capital for leadership in energy business".

HR Mission

"To adopt and continuously innovate best-in-class HR practices to support business leaders
through engaged empowered and enthused employees".

HR Objectives

 Enrich and sustain the culture of integrity, belongingness, teamwork, accountability

and innovation.
 Attract, nurture, engage and retain talent for competitive advantage.
 Enhance employee competencies continuously.
 Build a joyous work place.
 Promote high performance work systems.
 Upgrade and innovate HR practices, systems and procedures to global benchmarks.
 Promote work life balance.

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Measure and Audit HR performance.

1) Promote work life balance. Integrate the employee family into the organizational
fabric.
2) Inculcate a sense of Corporate Social responsibilities among employees.

Measuring HR Performance

HR Parameters have been incorporated in the MOU by ONGC since 1994-95, to

systematically and scientifically evaluate effectiveness of HR Systems, which enables and
facilitates time bound initiatives.

A Motivated Team

HR policies at ONGC revolve around the basic tenet of creating a highly motivated, vibrant
& self-driven team. The Company cares for each & every employee and has in-built
systems to recognize & reward them periodically. Motivation plays an important role in
HR Development. In order to keep its employees motivated the company has incorporated
schemes such as Reward and Recognition Scheme, Grievance Handling
Scheme and Suggestion Scheme.

Incentive Schemes to Enhance Productivity

 Productivity Honorarium Scheme

 Job Incentive
 Quarterly Incentive
 Reserve Establishment Honorarium
 Roll out of Succession Planning Model for identified key positions
 Group Incentives for cohesive team working, with a view to enhance productivity

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Training & Development

An integral part of ONGC’s employee-central policies is its thrust on their knowledge up

gradation and development. ONGC Academy, previously known as Institute of
Management Development (IMD), which has an ISO 9001 certification, along with 7 other
training institutes, play a key role in keeping our workforce at pace with global standards.

ONGC Academy is the premier nodal agency responsible for developing the human
resource of ONGC. It also focuses on marketing its HRD expertise in the field of
Exploration

& Production of Hydrocarbons. ONGC’s Sports Promotion Board, the Apex body, has a
Comprehensive Sports Policy through which top hon hours in sports at national and
international levels have been achieved.

Transforming The Organization

ONGC has undertaken an organization transformation exercise in which HR has taken a

lead role as a change agent by evolving a communication strategy to ensure involvement
and participation among employees in various work centers. Exclusive workshops and
interactions/brainstorming sessions are organized to facilitate involvement of employees in
this project.

Participative Culture

Policies and policy makers at ONGC have always had the interests of the large and multi-
disciplined workforce at heart and have been aware of the nuances and significance of
cordial Industrial Relations. By enabling workers to participate in management, they are
provided with an Informative, Consultative, Associative and Administrative forum for
interactive participation and for fostering an innovative culture.

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In fact, ONGC has been one of the few organizations where this method has been
implemented. It has had a positive impact on the overall operations since it has led to
enhanced efficiency and productivity and reduced wastages and costs.

A Model Corporate Citizen

Respect and dignity are the key values that underline the relationship ONGC has with its
human assets. Conscious about its responsibility to society ONGC has evolved guidelines
for Socio-Economic Development programs in areas around its operations all over the
country.

 Education
 Health Care and Family Welfare
 Community Development
 Promotion of Sports and Culture
 Calamity Relief
 Development of Infrastructural Facilities
 Development of the Socially & Economically Weaker Sections of Society Benefit
and Welfare

Corporate Social Responsibility

ONGC is spearheading the United Nations Global Compact - World's biggest corporate
citizenship initiative to bring Industry, UN bodies, NGOs, Civil societies and corporate on
the same platform.

During the year, your Company has undertaken various CSR projects at its work centers
and corporate level.

Women Empowerment

Women employees constitute about 5% of ONGC's workforce. Various programs for

empowerment and development, including program on gender sensitization are organized
regularly.

19
 MEMORANDUM OF ASSOCIATION

NAME CLAUSE:

Name Clause in Memorandum of Association confers Protection against subsequent

company registration in the same or closely similar name. Oil and natural gas corporation
ltd(ONGC) is a public sector undertaking of the Government of the India, under the
administrative Control of the ministry of petroleum and Natural Gas.

SITUATION CLAUSE:

Memorandum of Association must state the name of the State in which the registered
office of the company is to be situated. It will fix up the domicile of the company. Address
of the registered office of the company need not be mentioned in Memorandum of
Association.

NO:1, Gandhi Irwin Road, CMDA Building, Egmore, Chennai, Tamil Nadu-600008.

OBJECTIVE CLAUSE:

It is a most important Clause in Memorandum of Association. It defines and limits the

scope of operation of the company.

The following are the objectives:

1.To be global in integrated energy business through sustainable growth, knowledge

excellence and exemplary governance practices.

2.To focus on domestic and international oil and gas exploration and production business
opportunities.

20
3.To provide value linkages in other sector of energy business.

4.To Retain dominate position in India petroleum sector and enhance India energy
availability.

LIABILITY CLAUSE:

Liability clause mentions the liability of members of company limited by shares,

Memorandum of Association must have a clause to the effect that the extent of the amount
of the unpaid portion of shares held by him.

CAPITIAL CLAUSE:

Memorandum of Association of a limited company having share capital (i.e.

company limited) by shares or company limited by guarantee having share capital with
which the company is to be registered which is usually called authorized or normal capital.
Authorized or normal capital. Authorized capital of ONGC is 1500(Cr).

ASSOCIATION CLAUSE:

This clause states that the person subscribing their signatures at the end of the
memorandum are desirous of forming themselves into an association in pursuance of
memorandum.

Memorandum of Association must be signed by seven or more persons in case of a

public company and by two or more persons in the case of a private company. Signatures
shell be attested by witnesses.

21
 ARTICLES OF ASSOCIATION
The articles of association is a document that specifies the regulations for a company
operation, and they define the company purpose and lay out how tasks are to be
accomplished within the organization, including the process for appointing directors and
how financial records will be handled.

Articles of Association often identify the manner in which a company will issue stock
shares, pay dividends and audit financial records and power of voting rights. A set of rules
can be considered a user manual for the company because they outline the methodology
for the accomplishing the day-to-day tasks that must be completed.

ALLOTMENT OTHERWISE THEN FOR CASH:

Subject to provisions of the Act and these Articles, the Directors may allot and issue shares
in the capital of the company as payment for any property or assets of any kind whatsoever,
sold or to be sold or transferred to be transferred or for a goods supplied for services
rendered or for technical assistance or know- how made or to be made available to company
or the conduct of its business and shares which may be so allotted may be issued as fully
or partly paid as a case may be.

ADDITIONAL CAPITAL TO FORM PART OF EXISTING CAPITAL:

Except so far as of otherwise provided by the condition of issue or by these presents, any
capital raised by the creation of new shares, shell be considered as part of call and
instalment, forfeiture, lien, surrender, transfer and transmission, voting and otherwise.

APPOINMENT OF AUDITORS:
1. Subject to provisions of the companies Act, the company shall at each Annual
General Meeting appoint an auditor to hold office from the conclusions of the meeting until
the conclusion of the next Annual General Meeting and any casual vacancy in the office of
an Auditors may be filled by the board.
2. The remuneration of auditor appointed by the company in General meeting shall be
fixed by the company in general meeting or in such manner as the company in general
meeting may determine provided, however, in the case of Auditors appointed by

22
the board or the Central Government the remuneration of such auditors may be fixed by
the board of Central Government as the case may be.

FOREIGN CURRENCY TRANSACTIONS:

1. Foreign currency transactions are recorded in the reporting currency, by applying to
foreign currency amount the exchange rate between the reporting currency and the foreign
currency at the date of the transaction.
2. Gains or losses resulting from settlement of transaction relating to acquisition of a
fixed asset are capitalized along with the cost of equipment and depreciated accordingly.
3. Gains or losses resulting from settlement of other transaction are recognized in
statement of profit and loss.
4. Monetary assets and liabilities related to foreign currency transactions remaining
unsettled at the end of the year are translated at the yearend rates.
5. Exchange differences arising on foreign currency monetary items related to
acquisition of a fixed asset capitalized along with the cost of the equipment and depreciated
accordingly.
6. Premium or discount arising on the inception of forward exchange contract in respect
of a foreign currency monetary item related to acquisition of a fixed asset are capitalized
along with the cost of the equipment and depreciated accordingly.

EMPLOYEES BENEFIT:
Liability for employee benefits, both short and long term, for present and past services
which are due as per the terms of employment are recorded in accordance with accounting
standards (AS) 15 ‘Employee Benefits’.

DEFINED PLANS
 GRATUITY

In accordance with the payment gratuity act, 1972 the company provides for Gratuity
covering eligible employees. Liability on account for gratuity is covered through a
recognized gratuity fund managed by LIC of India.

23
COMPENSATED ABSENCES

Liability for compensated absences is treated as a long term liability and is provided on the
basis of valuation by an independent at the year end.

DEFINED CONTRIBUTION PLAN

 SUPER ANNUATION

The company makes contribution to an approved superannuation fund covered by a policy

with LIC OF INDIA. The company has no further obligation beyond the agreed
contribution.

 PROVIDENT FUND

Contribution to Provident fund made to Regional Provident Fund Commissioner is

recognized as expense.

COMMITTEES:
Each of the prime shareholders shall exercise all their rights and power included Voting
Rights so as to procure that:

(A) The following committees of the Board shall be duly established in accordance with
best commercial practice:

1.The company committee;

2.The corporate Government committee; and

3.The Audit committee.

MEMBERS MEETING
Annual General Meeting of the Company may be convened subject to the Act by giving
notice in writing. Subject to the provisions of the Act, a meeting may be convened after
giving a shorter notice.

24
EXTRA ORDINARY GENRAL MEETING

The Board may, whenever it thinks fit call an Extraordinary General Meeting and it shall
do so upon a requisition in writing by any Member or Members holding in the paid-up
capital at that date carries the right of voting in regard to the matter in respect of which the
requisition has been made.

QUORUM AT GENERAL MEETING

Five members present in parson shall be a quorum for a General Meeting.

APPOINT OF PROXIES
Every proxy (whether a member or not) shall be appointed in writing under the hand of the
appointer or his attorney or if such appointer is a corporation under the common seal of
such corporation, or be signed by an officer or to be authorized by it and committee or
guardian may appoint such proxy. The proxy no appointed shall not have any right to speak
at the meeting.

FORM OF PROXICES
Every instrument of proxy whether for a specified meeting or otherwise shall, as nearly as
circumstances will admit, be in any of the forms set out in Act.

SHARES AT THE DISPOSAL OF DIRECTOR

 Subject to the provision of these Articles and the Act, the shares in the capital of the
company for the time being shall be under the control of the Directors who may issue, allot
or otherwise dispose of the same or any one of them such persons.
 In such proportion and on such terms and either at premium or at par or at a discount
and at such times as they may from time to time think fit and proper and with the sanction
of the Company in General Meeting to give to any person the option to call for or be allotted
shares of any class of the company.

25
 Either at par at premium or subject as aforesaid at a discount during such time and
for such consideration and such option being exercisable at such time as the Directions
think fit, and shares which may be so allotted may be issued as fully paid up shares and if
so issued shall be deemed to be fully paid up shares.
 Provided that the option or right to call of shares shall not be company in General
Meeting.

REGISTER AND INDEX OF MEMBERS

The Company shall keep a Register and Index of Members in accordance and details of the
members holding shares both in material and dematerialized form in any media as permitted
by law including electronic media. The company shall also be entitled to keep in any state
or country outside India a Branch Register of Members resident in that state or country.

CALLS:

DIRECTORS MAY MAKE CALLS:

The Board may from time, subject to the terms on which any shares may have been issued
and subject to the condition of allotment, by a resolution passed at a meeting of the Board
make such calls as it thinks fit upon the Members in respect of all monies unpaid on the
shares held by them respectively and each members shall pay the amount of every call so
made on him to the person of persons and at the time and place appointed by the Board. A
call may be made payable by instalment.

NOTICE OF CALLS:
Thirty days’ notice in writing of any call shall be given by the company specified the time
and place of payment, and the person or persons to whom such calls shall be made.

CALL TO MADE DUE TO DATE:

A call shall be deemed to have been made at the time when the resolution authorizing
such call was passed at a meeting of the Board.

26
CALL MAY BE REVOKED:

A call may be revoked or postponed at the discretion of the Board.

BOARD OF DIRECTOR:

NUMBER OF DIRECTOR

Until otherwise determine by the company in a General Meeting and subject to the
Provision of Section 252 of the Act, the number of director shall not be less than three or
more than twelve.

CONVERSION OF SHARES INTO STOCK AND RECONVERSION SHARES

MAY BE CONVERTED INTO STOCK:

The company in General Meeting may convert any paid-up shares into stock, and when
any shares have been converted into stock, the several holders of such stock may
thenceforth transfer their respective interest therein, or any part of such interest, in the said
manner and subject to the same Regulation as, and subject to which shares from which the
stock arose might have been transferred if no such conversion had taken place, or as near
thereto as circumstance will admit. The company may at any time reconvert any stock into
paid-up shares of any denomination.

27
 REPORT OF DIRECTOR
Shri Dinesh K Sarraf, 59, is the Chairman & Managing Director of the Company. Shri Sarraf is also
the Chairman of ONGC Videsh Ltd, Mangalore Refinery & Petrochemicals Ltd(MRPL) and four
other ONGC Group companies - ONGC Petro-additions Ltd, ONGC Mangalore Petrochemicals Ltd,
Mangalore SEZ Ltd, and OTPC- ONGC Tripura Power Company Ltd.

Shri Sarraf graduated in Commerce from Shri Ram College of Commerce, Delhi University and did
his post-graduation from the same University. He is an associate member of the Institute of Cost and Works
Accountants of India and the Institute of Company Secretaries of India.

 He has an experience of over three and half decades in the oil and gas industry, having started his oil
and gas career in Oil India Ltd. He joined the Company in 1991 and handled various key assignments at
corporate offices.
 He was elevated to the post of Director (Finance) in ONGC Videsh in 2005 where he served till
2007. During this period, ONGC Videsh made significant acquisitions in Syria, Brazil, Colombia,
Venezuela, Cuba, Egypt and Myanmar. In December 2007, he joined back the Company as Director
(Finance).

In September 2011, Shri Sarraf went back to ONGC Videsh assuming the charge of its Managing
Director. In March 2014, he took over as Chairman & Managing Director of the Company.

 Shri D K Sarraf, is the driving force of extraordinary growth of Company and strategic approach
to oil and gas exploration and production. In the present environment when global oil and gas prices
have plummeted, the Company leadership is strongly emphasising on adoption of the best operational
and cost practices and appropriate oil and gas technologies, for realization of greater operational
efficiencies. Under his leadership your Company has made the biggest ever financial decision
in its history, to develop deep water oil and gas resources at an investment of over $5 Billion in the
east coast.

31
Shri Tapas Kumar Sengupta took over as Director (Offshore) on 01.02.2014. He is also Director in
charge Business Development & Joint Ventures and Marketing. He is Director in the Board of OVL, Pawan
Hans Ltd. and Dahej SEZ Ltd. A first-class Chemical engineering graduate from Jadavpur University,
Calcutta, and Sengupta holds a Diploma in Management and a leadership certificate from ESCP, France and
IMI Delhi. Shri Tapas Kumar Sengupta belongs to the select club of production engineers from the
Company who has a balanced exposure to both onshore and offshore oilfield operation in the last 36 years
of his long career with the Company. He has received the Company’s Highest Award I.e. Chairman
Award twice, in 1994 & 2001, for production enhancement in Western Offshore fields with introduction
of new technologies. He has also served in Sudan as General Manager in Greater Nile Petroleum
Operating Company (GNPOC), on deputation to ONGC Videsh Ltd., for 4 years.

Shri Sengupta is actively associated with Society of Petroleum Engineers (SPE), USA and he is
presently inducted in the International SPE Board as Regional Director of Asia Pacific Region.

Shri D.D.Misra, Director (HR), holds a Master’s Degree in Public Administration (MPA) from
University of Lucknow. He has undergone Leadership Development Program at IIM, Bangalore
followed by overseas program me at Alberta School of Business, Calgary (Canada) and University of
Texas (US) in 2013. Starting his career as Graduate Trainee, Shri Misra has left his imprint in diverse
assignments given to him in three decades with the Company.

 He has been appointed by the Government of India to the Board of the Company, as its
Director (Human Resources) WEF 01.08.2014. Since taking over, he has conceptualized and steered
numerous sustainable HR Initiatives to enthuse the morale and motivation of the 33000 plus ONGC
workforce.
 He brought in transparency and timeliness in Recruitment and Annual promotion process and
also steered focused CSR program me across the Company in line with the social and gender
inclusive policies of the Government of India.

32
 As a unique HR Initiative, under his mentorship he groomed a Team of 11 ONGC, 6 of whom
scaled Mount Everest in May, 2017 after passing through 7 Stage Training cum Evaluation process.
 As Chair of Asian-Pacific Resource Centre of United Nations Global Compact (UNGC)
Network, India, D.D.Misra has steered “Industrial Water Benchmarking Study” for the first time in
India. This study would finally lead to development of “Water Index”.

Despite holding high pressure assignments, Shri Misra manages to nurture his other interests,
particularly his passion for wildlife photography. He is a regular contributor to the Nature magazines
like “Shristi”, “Swagat”, “Shubh Yatra”, “Exotica” and “Times World Travel” and “Outdoor Journal”.
He also published “Karjat Diaries” - a Coffee table book on Western Ghats.

Shri Ajay Kumar Dwivedi took over the reins as the Director (Exploration) on 16.03.2015.
A post-graduate from Kanpur University, Shri Dwivedi has a distinguished career of more than 36
years in the Company, holding key exploration-related assignments at different work centers starting from
Mumbai, moving to Dehradun in North, to Chennai in South, then Jorhat in the East, Vadodara in the West
and as Basin Manager MBA Basin, Kolkata, before taking over Western Offshore as Basin Manage
His keen analytical acumen coupled with a people-centric approach has been his forte. His strength has
been to encourage Multi-Disciplinary team working in various capacities across the organization. As a
core team member of joint project team on organizational change program, Shri Dwivedi was
involved with redesign of structure, systems and business processes aligned to Asset based model and
their implementation in two pilot projects. As a member of the task force formed by the then Director
(Exploration), he was entrusted with the responsibility of formulating long term strategy of exploration
for the Company with the aim of doubling the reserve accretion by year 2020.
Shri Ved Prakash Mahawar took over as Director (Onshore) of the Company on 01.08.2015.

 As Director (Onshore), a board level position, he will be directly looking after all the onshore
operations spread across the country which significantly contribute towards the Company's overall
physical performance.
 Shri Mahawar brings with him 35 years of vast experience of managing drilling and operational
functions, holding various key positions across vast spectrum of oil field activities.

33
 Prior to his joining the present assignment he has been OSD (Onshore) at Delhi for some time
before which he was heading Tripura Asset of the Company as an Executive Director-Asset Manager.
Under his leadership, Tripura Asset saw increase in gas production by more than two folds. During
his tenure, the Company commenced supplying gas for both units of ONGC Tripura Power Company.
He has also been instrumental in monetization of two discovered fields, putting them on production.

Shri Mahawar also pioneered the critical Well Control expertise for the Company. A veteran of
numerous Blow-out control jobs and proven experience in handling the complicated well control
problems in onshore & offshore fields of the Company, ONGC Videsh Ltd. & other operators in
India with utmost safety, he has been major force and face of the Crisis Management Team (CMT)
making the Company self-reliant in dealing with well control situations.

 He was also instrumental in establishing the Well Control School at Institute of Drilling
Technology (IDT), Dehradun, which has been imparting training to the Company’s employees and oil
personnel from other Indian as well foreign oil companies.
 A Mechanical graduate from Pandit Ravi Shankar Shukla University, Raipur Shri Mahawar
started career with the Company as Drilling Engineer in 1982. He is known as the first sub-sea engineer
of the Company. He has to his credit more than 25 papers presented in international conferences. He
also developed "Well Control Manual for Offshore Operations" and was part of the team to develop
OISD Standard 174 for Well Control Practices.

Shri A K Srinivasan, an IIM Bangalore alumnus, is an accomplished finance professional with

experience of over 34 years in upstream oil and gas finance. He joined the Company’s Board on 23.09.2015.

 Shri Srinivasan started his professional journey with the Company as a graduate trainee in the
year 1983. He has demonstrated his professional competency in diverse facets of financial planning and
management with the energy major. With experience in the capital markets, project financing &
contracts, corporate budgeting & planning, corporate accounting, corporate taxation and dispute
resolution, Shri Srinivasan has a broad array of expertise up his sleeves.

34
 Shri Srinivasan played a pivotal role in reorientation of planning and budgeting exercise,
structural improvements in financial reporting, introduction of transfer pricing concept and
instrumental in initiating cost control measures across the organization. He has steered various fund
raising programs of ONGC Group Companies.
 Shri Srinivasan has played major role in the acquisition of various oil and gas development
projects, Power, Petro-Chemical and capital assets for the Company. He has also steered critical productivity
enhancement projects like the transition from excel based reporting to SAP based reporting and
implementation of Enterprise Resource Planning (ERP)

Shri Amar Nath, aged 51 years, Joint Secretary (Exploration) Ministry of Petroleum & Natural Gas is
the Govt. Nominee Director and joined the board on 28.06.2016.

 Shri Amar Nath, an IAS Officer (1994 AGMUT Cadre) is a Bachelor of Science (Mechanical
Engineering) from National Institute of Technology, Kurukshetra, Kurukshetra University and MA
(International Development Policy) from Duke University, USA. Shri Amar Nath was Secretary to the
Department of Health, Government of National Capital Territory of Delhi prior to the present assignment.
He has held the positions of Administrator of Union Territory of Lakshadweep, Chief Executive Officer of
Delhi Urban Shelter Improvement Board, and Chief Executive Officer of Chandigarh Housing Board in
Chandigarh.
 He has extensive experience of working in various Departments of Government at senior management
positions such as Finance, Economic Planning, Tourism and Industrial Development in the states of
Arunachal Pradesh, Pondicherry, Chandigarh and Delhi. Before joining IAS in 1994 he worked with State
Bank of India and Steel Authority of India.
INDEPENDENT DIRECTORS

Shri Ajai Malhotra, aged 63 years is an Independent Director of your Company and of ONGC Videsh
Limited. Shri Malhotra holds an M.A. in Economics from the Delhi School of Economics, University of
Delhi. He joined the Indian Foreign Service (IFS) in 1977 and besides assignments at the Ministry of
External Affairs, New Delhi, worked at Indian diplomatic missions in Bucharest, Geneva, Kuwait,
Moscow, Nairobi, New York and Washington DC.

35
 He was Minister (Commerce) at the Embassy of India, Washington DC (1999-2003), serving
simultaneously from 2002-2003 as Chairman of the International Cotton Advisory Committee. He was
Ambassador of India to Romania, concurrently accredited to Albania and Moldova (2003-2005),
Ambassador and Deputy Permanent Representative of India to the United Nations, New York (2005-
2009), Ambassador of India to Kuwait (2009-2011), and Ambassador of India to the Russian Federation
(2011-2013), before retiring from the IFS on November 30, 2013, after nearly 37 years of distinguished
service.
 His wide ranging experience includes being on the Indian team negotiating issues such as
biological diversity, climate change, desertification, education, energy, forestry, health, human rights,
human settlements, intellectual property rights, international law, labour, ozone depletion, sustainable
development and international trade. In 2004, he was awarded an Honorary Doctorate by Western
University of Arad, Romania, in recognition of his work in support of environment and development.
 He is presently a Distinguished Fellow & Senior Adviser (Climate Change) at The Energy and
Resources Institute (TERI), New Delhi, besides being Chairman and Managing Trustee of two
organizations serving the underprivileged - CHIKITSA and SHIKSHA - as well as Chairman, Nehru
Trust for the Indian Collections at the Victoria & Albert Museum, and Chairman, NAB India Centre
for Blind Women & Disability Studies. He frequently contributes to seminars on economic,
environmental, defence, political, trade and security issues.

Prof. Shireesh B. Kedare, aged 53 years, is an Independent Director of your Company. Shri Kedare has
obtained his B. Tech. in Mechanical Engineering from IIT Bombay in 1985. He also obtained his Ph.D. in
1992 from IIT Bombay in “Reciprocating Wind Machine”. He spent three years (1992-95) as a volunteer in
social sector working on different issues related to ‘Development. He started his engineering
consultancy in energy and environment in 1995. He worked as a Technical Consultant (1998-2001) to
the Chairman, Khadi and Village Industries Commission when he worked on the issues related to
Development of Rural Industries Clusters. He is presently associated with IIT Bombay as a Professor.

36
 He joined Department of Energy Science and Engineering, IIT Bombay as an adjunct faculty and
simultaneously Clique Developments Ltd., an Engineering Company in Mumbai as its Director(R&D).
Based on his studies on different renewable energy systems, he identified a need for developing
concentrating solar thermal collectors for industrial process heat applications way back in 1997. He acted
as a Principal Investigator (2004 to 2007) under IIT Bombay-Clique R & D project of ARUN 160 (160
Fresnel Paraboloid Solar Concentrator for industrial process heat) sponsored by MNRE (Ministry of
New and Renewable Energy), New Delhi. He has also worked on integration of solar concentrator
technology for a variety of industrial processes as well as commercial applications using steam, pressurized
water or thermic fluid as media and for steam augmentation in thermal power plants.

 Along with optimization of Solar Industrial Process Heat Systems with and without storage,
his focus is on development of solar thermal power plant with storage working for 24 h/d suitable for Indian
conditions. He is also associated with Centre for Technology Alternatives for Rural Areas (CTARA), IIT
Bombay and is working on rural energy and other technologies. He is presently focusing on problem
assessment and development and dissemination of small and affordable implements for performance
improvement for traditional wood fired cook-stoves (Chulha) used in different regions of the country.

Shri K. M. Padmanabhan, aged 60 years, is an Independent Director of your Company. Shri Padmanabhan, a
Chartered Accountant in practice for more than 28 years and is the Senior Partner of SRINIVAS
and PADMANABHAN, Chartered Accountants, Chennai as a practicing Chartered Accountant, he has
created Internal Control Systems, processes and procedure besides rendering business consultancy for a very
big South based educational institution spread into engineering, medical and also into hospitals.

 He has been a regular Visiting Faculty in the area of Finance and Accounting at Indian Institute of
Management (Indore), Indian Institute of Management (Raipur), Institute for Financial Management and
Research (IFMR), RBI Staff Training College, Tamil Nadu Judicial Academy, the Institute of Chartered
Accountants of India (ICAI).

37
 He was able to eliminate wastes and non- value added expenditure through Business Process
Reengineering and Kaizen cost Reduction Methods for various business units in the SME sector in the
last 10 years of business consulting.
 As a person trained in the pedagogy of Case Method Teaching at Indian Institute of Management,
Ahmedabad and at Harvard Business School, Boston, USA, he had trained thousands of non-finance executives
in Finance, costing, and kaizen cost Reduction with strategic orientation.
 He was also a member of the Managing committee of Madras Management Association one of most
acclaimed management associations in India.
Shri Deepak Sethi, aged 59 years, is an Independent Director of your Company. Shri Sethi is a Commerce
Graduate and a Fellow member of the Institute of Chartered Accountants of India, having rich experience
of 32 years practice in conducting Statutory, Tax and Internal Audits of Companies, Partnership Firms,
Proprietary concerns, Schools, Universities, Hospitals, Trusts etc and is known for his work
discipline, expertise, straight forward approach and professional presentations on various legislative,
accounting and other developments.
Shri Vivek Mallya, aged 42 years, is an Independent Director of your Company. Shri Mallya is a Fellow
member of the Institute of Chartered Accountants of India, Certified Public Accountant (USA) and
a Master’s Degree Holder in Commerce from Mysore University. He has a rich experience of practice as
a Chartered Accountant. His practice areas include International Taxation, Income tax, Foreign Exchange
Management Act and Banking matters.

 He also holds the position of Honorary President of a leading NGO in Bangalore.

 He regularly appears on popular Kannada News channels on Economic and Financial Matters and is a
regular speaker at ICAI. He has also spoken at various International forums on Indian Tax and Economic matters.
 Travelled extensively, he also advises clients on cross-border structuring; Acquisition and Overseas
direct investment matters and represents his clients before Enforcement Directorate, RBI, Income-tax Appellate
and Assessment matters.

38
Prior to Practising on his own, he was a Partner with PWC, a Big 4 Accounting Firm and AVP Finance with
Thomson Reuters. As a part of PWC, he specialized in Aerospace and Defense matters as well. He handled
significantly large assignments including dual-listed mergers, cross border acquisitions and restructuring,
delisting and Asset Reconstruction.
Dr. Santrupt B. Misra, aged 52 years, is an Independent Director of your Company. Shri Misra holds Masters
in Political Science from Utkal University and Personnel Management from Tata Institute of Social
Sciences; he also possesses Doctorates in Public Administration from the Utkal University as well as in
Industrial Relations from Aston Business School, United Kingdom.

 He has over 30 years of professional experience in global business, research and organizational
development. He is a part of the Aditya Birla Group since 1996. Prior to joining the Aditya Birla Group, he had also
worked at the J.K Group, the Tata Institute of Social Sciences and Hindustan Lever, India. Dr. Misra was conferred
with an honorary D.Sc. degree by his alma mater - the Aston University, UK.
 Under his leadership as the Director HR, the Aditya Birla Group has developed a strong employer brand and
has acquired laurels as the ‘Best Employer of India’ and a ‘Great Place for Leaders to Work. He holds the following
positions in various
Companies:

• CEO, Carbon Black Business and Director, Group Human Resources, Aditya Birla Group.
• Director on the Board of Aditya Birla Management Corporation Private Limited, the apex decision making
body of the US $42 billion Aditya Birla Group.
• Director on the Boards of Alexandria Carbon Black Company Limited; Thai Carbon Black Public
Company Limited; Indi gold Carbon Mauritius Limited and SKI Carbon India Pvt. Ltd.
Dr. Misra is on other professional bodies such as the Association of Executive Search Consultants (AESC)
U.S.A. and the SHRM Certification Commission, USA. He was the National President of the National
HRD Network and is on the Boards of: -

• National Institute of Technology Rourkela, Bhubaneswar.

• Asian Heart Institute & Research Centre Pvt. Ltd., Mumbai
• Xavier’s Institute of Management Bhubaneswar.

39
 Corporate Social Responsibility in ONGC

As a public sector enterprise, ONGC has a long and cherished tradition of commendable
initiatives, institutionalized programs and practices of Corporate Social Responsibility
which have played a laudable role in the development of several underdeveloped regions
of the country. The vision of sustainable growth drives both business decisions as well as
our Corporate Social Responsibility works. Our CSR activities are essentially guided by
project based approach in line with the guidelines issued by the Department of Public
Enterprises and Ministry of Corporate Affairs of the Government of India. The CSR
initiatives of ONGC were marked by unrelenting commitment to several large – scale
key projects as well as initiation of several new projects identified under the 12 focus
areas of ONGC i.e.

1. Education including vocational courses,

2. Health Care,
3. Entrepreneurship (self-help & livelihood generation) schemes,
4. Infrastructure support near ONGC operational areas,
5. Environment protection, ecological conservation, promotion,
6. Protection of heritage sites, UNESCO heritage monuments etc.
7. Promotion of artisans, craftsman, musicians, artists etc. for preservation of heritage,
Art & Culture,
8. Women’s Empowerment, Girl Child Development, Gender sensitive projects,

40
9. Water Management including ground water recharge,
10. Initiatives for Physically and Mentally challenged,
11. Sponsorship of seminars, conferences, workshops etc.
12. Promoting Sports/sports persons; supporting agencies promoting sports / sports
persons.

1.VaristhajanaSwasthyaSewaAbhiyan: ONGC along with Help Age India continues

its efforts to take healthcare to the doorsteps of the elderly through Mobile Medicare
Units. In 2011-12, all the 20 MMUs were launched and almost 1.9 lakh treatments were
provided across the eight States and one Union Territory.

2. ONGC-GICEIT Computer Centre: Under this initiative, implementing partner

Bharatiya Vidya Bhavan operates five computer centers providing employment-related
computer training to underprivileged youth across different operational areas of ONGC.
In 2011-12, more than 1400 students have received free employability training through
these centers.

3. Project Utkarsh- Livelihood Project in Sibasagar: Initiated in 2011-12, this project

seeks to expand livelihood opportunities for 400 households in one year through training
of women in skills like tailoring, soft toy making etc. with linkages for income generation
as well as training the elderly in vocations like goa try, piggery, mushroom cultivation
etc. while establishing adequate forward and backward linkages.

41
4. Harit Moksha: This unique CSR venture with Mokshda Paryavaran Evam Van
Suraksha Samiti (Mokshda PEVSS) has led to the development of an energy-efficient
and environment friendly wood based crematorium with a system called Mokshda Green
Cremation System (MGCS) which is capable of reducing wood consumption by 60%
besides minimizing air and water pollution in a significant manner. Now, there are 10
such MGCS units across the cities of Vadodara, Cambay, Ahmedabad and Delhi.

5. ONGC-NSTFDC Hathkargha Prashikshan: The CSR project was aimed at

economically empowering the women tribal handloom artisans in Assam to facilitate
cluster development for economically marginalized tribal populations. In 2011-12,
around 100 tribal handloom artisans were provided on-the-job training in the improvised
looms by master craftsmen that included training in intricate designs for catering to wider
markets.

6. ONGC-Eastern Swamp Deer Conservation Project in Kaziranga National Park:

The project aims at successfully conserving the species of the Eastern Swamp Deer.
Understanding the species and the habitat, developing stringent conservation action
initiatives that could prevent extinction and examining the possibility of translocation of
the species to additional areas to conserve species and habitat will be important project
activities. The project is in the first phase which consists of gathering information on the
species.

7. ONGC Hospitals: ONGC will be setting up multispecialty hospitals at Sibsagar,

Assam and Ankleshwar, Gujarat and a Community Hospital at Lakhimpur-Kheri, Uttar
Pradesh.

42
 Annual General Meeting

Shri Ajay Sawhney, earlier Additional Secretary, MOP & NG, was the Govt. Nominee Director of your
Company and had joined the Board on 02.01.2016. He ceased to be Director on 23.06.2017. He is an IAS
Officer of Andhra Pradesh cadre (1984 batch) and a Mechanical Engineer. Shri Sawhney, during his rich and
varied experience as an IAS officer, has handled various assignments in the State of Andhra Pradesh, covering
land administration, law and order and quasi-judicial functions, rural, development, health & family welfare,
communication & information technology, e-governance and elections etc.

He played a lead role in the Total Literacy Campaign taken up in Nizamabad district in the early nineties. He
has also capitalized the establishment of the International Institute of Information Technology in Hyderabad
and its emergence as one of the premier institutions in computer science education and research in the country.
He has also held important positions in the Govt. of India as Joint Secretary Training in the Department of
Personnel and Training and as the President and CEO of the National e-Governance Division, which
assists the Ministry of Electronics and Information Technology in the implementation of the National e-
Governance plans.

Chief Vigilance Officer

Dr. Akhilesh Kumar Ambasht,
 an IFS officer of cadre AGMUT - 1987, is the Chief Vigilance Officer of ONGC. Dr. Ambasht
holds a Master's degree in Botany from the Gorakhpur University and was awarded a Ph.D. in Botany
(Ecology) from Banaras Hindu University.
 Prior to joining ONGC, Dr Ambasht has held important assignments as CVO of Delhi Jal Board,
Member Secretary, Delhi Pollution Control Committee and Assessor & Collector of Municipal Corporation
of Delhi. He has a wide ranging experience in various assignments of Ministry of Human Resources and
various departments of Government of Goa. Dr. Ambasht is also M.Sc. in Forestry and has an in-depth
knowledge of forestry. He has published around 14 Research papers in various National & International
journals.

43
THE ECONOMY
The global economy in 2015 encountered a Period of Slowdown global GDP growth Slumped do to 3.1
percent in 2015 From a level of 3.4 percent in 2014 as per the world economic outlook Published by
international Monetary Fund.

The Indian Economy on the Other hand, has been vibrant and relatively stronger and has been able to
over tack China as the world`s fastest growing economy GDP growth for India in FY `16 stood at 7.6% as
Compared to 7.2% in FY`15

PERFORMANCE HIGHLIGHTS
In the domestic energy Business of the company has played a fundamental role in steering the country`s
economic growth, the Flagship Oil and gas explorer ONGC has remained steadfastly committed to the
energy security
Overall, ONGC is the largest producer of Oil and Natural Gas within the country, contribution over
70% of country`s hydrocarbon output

OPERATIONAL PERFORMANCE
I would like to share with you that a few days back on 14th August celebrated completion of 60years
of our company.

In FY`16 as much as one –third of ONGC crude Production was a result of our efforts invested in these
projects.

OVERSEAS OPERATIONS
Our Overseal Business arm and Wholly Owned Subsidiary, ONGC videsh too had an impressive
FY`16 investments made internationally through ONGC videsh extend Our reach and expand Our
horizions in global energy, landscape, company`s global Foot print is spread across 37% in 17 countries
Our international business was negatively impact by fall in crude oil prices. ONGC went into red with a
post- tax loss of RS: 2,094 Crore.

44
UNCONVENTIONAL, ALTERNATE AND NON –E&P FORAYS
Beyond Conventional Oil & Gas Company has also Prioritized Suitable actions for exploration and
of un conventional and alternate Sources of energy
In FY`16 the company drilled 18 wells for assessment of domestic shale gas. The company has also
approved an investment of RS: 659 Crore for development of book CBM block

45
 MILESTONES

1825: lieutenant R. wilcox, spotted oil seepage in the worth eastern corner of Assam in
September.

1866: Hydrocarbon exploration began in India.

1867: H. B. Medicott of the Geological Survey of India (GSI) first started oil exploration
in India in the Makum area of Assam.

1889 -1893: Assam Railways & Trading Company (AR&T). AR&T subsequently
acquired a 77.7 square kilometer petroleum-rights concession in the Makum area of
Assam, and by 1893 had drilled 10 wells at Dig boi producing 757.08 litters/day.

1991-1994: The liberalized economic policy adopted by the GOI in July 1991, ONGC
was re – organized

1996: Some of the important companies which were either awarded contracts or
participated in the exploration round were: Shell, Occidental, Amoco and Enron. In this
period, the process of opening up the oil and gas sector gathered momentum and was
more streamlined in approach.

1997-1998: The Indian government formulated the New Exploration Licensing Policy
(NELP)

2000: GOI shares in Lubrizol India Ltd were acquired, and the company became a 50:50
joint venture between Indian Oil and the Lubrizol Corporation of the USA.

2001-2003: ONGC entered the global field through its subsidiary, ONGC Videsh Ltd
(OVL).

2004: ONGC launched a deep water campaign named "Sagar Sammridhi".

2005: Under the fifth round of the New Exploration Licensing Policy, the GOI invited
bids for 20 blocks for exploration of oil and natural gas.

46
2006: 6 shallow water and 24 deep water blocks. 165 bids were received from 68 E&P
companies

2007 - 2010:

2008 – Started Drilling in Cauvery

2009 – Reported a gas discovery in the west Tripura block in the Assam Arakan Basin.
ONGC achieved all-time record in oil and gas production.

2010 – 2011: Indian government signed 31 PSCs on 30 June. It included 8 deep water
blocks, 11 shallow water blocks and 12 on land blocks; these last are in the states of
Assam, Gujarat, Madhya Pradesh and Manipur.

2012 – 2013: Cairn India became one of the largest independent oil and gas exploration
and production companies in India with a market capitalization of US$ 10 billion.

47
 PROJECT REPORT

During the period of training at OIL & NATURAL GAS CORPORATION (ONGC) has
assigned the following works

1st week Mr.G. Nallappan (GM) of ONGC. He taught about History and Background of
ONGC and their objectives, functions, duties, Aim, vision, and etc...

2nd week we have meet and handled the activities of various departments in ONGC

 HR DEPARTMENT
 FINANCE AND ACCOUNTS DEPARTMENT
 R&D DEPARTMENT
 PRODUCTION DEPARTMENT

HR DEPARTMENT

A human-resources department (HR department) of an organization performs

human resource management, overseeing various aspects of employment, such as
compliance with labour law and employee benefits, and some aspects of recruitment and
dismissal.

FINANCE AND ACCOUNTS DEPARTMENT

Finance is a field that deals with the study of investment. It includes the dynamics
of assets and liabilities over time under conditions of different degrees of uncertainty and
risk. Finance can also be defined as the science of money management. Market
participants aim to price assets based on their risk level, fundamental value, and their
expected rate of return. Finance can be broken into three sub-categories: public finance,
corporate finance and personal finance.

48
R&D DEPARTMENT

Research and development (R&D, R+D, or Rn`D), also known in ONGC as

research and technological development(RTD), refers to innovative activities undertaken
by corporations or governments in developing new services or products, or improving
existing services or products. Research and development constitutes the first stage of
development of potential new service or product.

PRODUCTION DEPARTMENT

Production planning is the planning of production and manufacturing modules in

a company or industry. It utilizes the resource allocation of activities of activities of
employee, materials and production capacity, in order to serve different customers.

3rd week we came to know about the ONGC rule & regulations, procedure, forecasting of
plans, plans, achievement, their roles in society, general meeting, Minutes book

4th week they taught about ONGC oil refining process and it uses

 FRACTIONAL DISTILLATION
 VACUUM DISTILLATION
 CRACKING

FRACTIONAL DISTILLATION

Fractional distillation of crude oil. Because they have different boiling points, the
substances in crude oil can be separated using fractional distillation. The crude oil is
evaporated and its vapours allowed to condense at different temperatures in the
fractionating column.

49
VACUUM DISTILLATION

Crude oil is first refined in an Atmospheric Distillation column. Fractions of crude

oil such as lighter gases (C1-C4), gasoline, naphtha, kerosene, fuel oil, diesel etc. are
separated in the atmospheric distillation column. The after taking out these lighter
hydrocarbon cuts, heavy residue remaining at the bottom of the atmospheric distillation
column needs to be refined. These heavy hydrocarbon residues are sent to a Vacuum
Distillation column for further separation of hydrocarbons under reduced pressure.

CRACKING

In petro chemistry, petroleum geology and organic chemistry, cracking is the

process whereby complex organic molecules such as kerosene or long-chain
hydrocarbons are broken down into simpler molecules such as light hydrocarbons, by the
breaking of carbon-carbon bonds in precursors. The rate of cracking and end products are
strongly dependent on the temperature and presence of catalysts. Cracking is the
breakdown of a large alkane into smaller, more useful alkanes. Simply put, hydrocarbon
cracking is process of breaking a long-chain of hydrocarbons into short ones. This process
might require high temperatures and high pressure.

50
 CONCLUSION

It is delightful opportunity to me to undergo institutional training in Oil and Natural

Gas Corporation (ONGC). The one month training experience which I could know the
working and overall. Operation activities carried out though profession in the ONGC.

The training helped gaining practical knowledge and also helped to understand the
company transaction and give me a working experience. It is helped to know about the
rules and responsibilities in the work place.

51
 BIBLIOGRAPHY

REPORTS:

Reports from OIL AND NATURAL GAS CORPORATION LIMITED.

BOOKS:

Company law - S. KATHIRESAN, DR. V. RADHA (2013), S. PRASANNA publisher

& Distributors, Triplicane, Chennai.

WEBSITES:

 http://www.ongcindia.com/wps/wcm/connect/ongcindia/home
 https://en.wikipedia.org/wiki/Oil_and_Natural_Gas_Corporation
 https://www.bing.com/images/search?q=Oil+and+Natural+Gas+Corporation&F
ORM=HDRSC2
 http://www.annualreports.com/Company/cabot-oil-gas-corporation
 ANNEXURE

STATEMENT OF AUDITED STANDALONE FINANCIAL RESUTS FOR

THE QUARTER AND YEAR ENDED 31ST MARCH 2017
(in crore unless otherwise
Financial result for stated)
ST. quarter quarter quarter
NO PARTICULAR ended ended ended year ended year ended
31.12.2017 31.12.2016 31.03.2016 31.03.2017 31.03.2016
Un
Audited Audited Audited Audited Audited
Revenue from
1 operations 21,714.02 20,013.95 16,237.17 77,907.17 77,741.75
2 other income 4,519.54 892.51 4,060.66 7,546.12 7,009.35
Total
3 income(1+2) 26,233.56 20,906.46 20,297.83 85,455.85 84,751.10

4 EXPENSES
Cost of material
consume 616.43 447.41 380.71 1,855.62 1,327.44
purchase of
stock-in-trade 1.92 2.60 7.15
changes in
inventories of
finished goods,
stock-in-trade
and work in
progress 20.79 -39.31 83.12 -132.84 35.16
Employee
benefits expenses 913.56 505.67 382.12 2,398.66 1,782.43
statutory levies 7,492.05 4,843.20 4,304.83 20,865.69 19,530.62
Exploration costs
written off
a. survey
cost 830.32 354.59 518.01 1,754.90 1,527.44
b.
Exploration well
costs 1,352.50 1,009.73 1,198.17 3,299.56 4,136.90
Finance costs 320.15 306.2 367.43 1,221.74 1,324.13
Depreciation,
depletion and
impairment 3,204.83 3,339.52 2,017.72 12,139.54 11,099.92
 Other Expenses 5,941.03 3,886.98 4,768.12 16,984.87 17,154.48
TOTAL
EXPENSES (4) 20696.46 14,654.04 14,022.15 60,240.34 57,925.67

Profit before
exceptional items
5 and tax (S2-4) 5,537.10 6,252.42 6,275.68 25,215.51 26,825.43
Exceptional
6 items 2,000 389.82 -3,226.59

Profit before tax

7 (5+6) 5,537.10 8,252.42 6,665.50 25,215.51 23,598.84

8 Tax expense
(a) current tax
relating to
current year 155.35 1,434.65 -290 4,810 5,720
earlier year -120.4 -398.41 -10.92 -518.54 -135.75
(b) Deferred tax 1,161.97 363.58 2,342.12 3,024.08 1,874.66
Total tax
expenses (8) 1,196.92 1,900.09 2,041.20 7,315.54 7,458.91

Profit for the

9 period (7-8) 4,340.18 4,352.33 4,624.30 17,899.97 16,139.93

Other
comprehensive
10 income (OCI)
(a)Items that will
not be
reclassified to
profit or loss -113.41 -226.89 -45.48 -456.95 -45.48
(1) Re-
measurement of
the defined
benefit
obligations
income 39.25 78.52 15.74 158.14 15.74
relating to above
 (2) Equity
instruments
through other
comprehensive
income 4,533.76 2,655.32 -1,282.94 13,615.88 614.74
tax relating to
above
Total other
comprehensive
income (10) 4,459.60 2,506.95 -1,312.68 13,317.07 612.00

Total
comprehensive
income for the
11 period (9+10) 8,799.78 6,859.28 3,311.62 31,217.07 16,751.93

Paid-up Equity
12 Share Capital 6,416.63 6,416.63 4,277.76 6,416.63 4,277.76
13 Other equity 1,79,121.75 1,61,496.92
Earnings Per
14 Share
(a) Basic 3.38 3.39 3.6 13.95 12.58
(b)Diluted 3.38 3.39 3.6 13.95 12.58

"Represents consumption of raw materials and stores & spares.

Employees cost shown above is net of allocation to different activities.
# Earning per share of comparative periods presented have been restated
as per IND -AS 33 on account the bonus issue of equity shares.