2. Business Opportunities
ONGC:
Future Plan
&
Business Opportunities

3. Presentation Overview
Glimpses of India.
ONGC: Function & infrastructure
ONGC : Focus on Future
Collaboration
Capital Investment
10th Plan ( ) CAPEX Plan
11th Plan ( ) CAPEX Plan
Mode of Co-operation

4. Glimpses of India

5. Glimpses of India India is the Largest Democracy in the World
With a Strong & Stable Democratic Governance through 60 years of Independence.
7th Largest Country in the World
With a total Geographical Area of 3.29 MM sq km.
Second most Populous Nation
1.05 Billion strong, having the largest pool of qualified & skilled manpower.
One of the most Ancient and Living Civilizations
Dates back to more than 5, 000 years.

6. Glimpses of India Parliamentary System of Government
With a Bicameral Parliament & three branches:
The Executive, Legislative and Judiciary.
Well Developed Independent Judiciary System
The Supreme Court : Apex Judicial Authority.
High Courts in every State & Lower Courts at Town levels.
Existence of Arbitration Mechanisms outside the Courts.
Languages
English is the most important language for National, Political & Commercial communication; Hindi is the National Language.

7. Glimpses of India Key Advantages of Doing Business with India Cont…
Well Developed - R&D, Infrastructure, Technical & Marketing services.
Wide Commercial Banking Network.
Conducive Foreign Investment policy.
Free Repatriation of Profits & Capital Investment.
Special investments and tax incentives given for exports and certain sectors such as power, electronics, telecom, software, Oil & Gas and R & D activities.
Current account convertibility, capital account convertibility for foreign investors.

8. Function & Infrastructure
ONGC:
Function & Infrastructure

9. ONGC today, has evolved into an integrated Oil & Gas Corporate
In-house capability in all aspects of the E&P business
Seismic API, Drilling, Work-over and Well Stimulation, Production, Processing, Engineering & Construction, Refining and Marketing.
with interests in
E&P, Refining, LNG, Power, Petrochemicals & New sources of energy.
… a reliable energy solution provider
for the country

10. ONGC Petro-additions Ltd. (OPaL)
ONGC: Strategic Evolution
Overseas E&P
Refineries
Value-chain
Power
Services
(50.0%)
(12.5%)
(50%)
(100%)
(71.6%)
(23%)
(23.0%)
Dahej SEZ Ltd.
(21.5%)
(100%)
(50%)
(23.0%)
Mangalore SEZ Ltd.
(26.0%)
ONGC Petro-additions Ltd. (OPaL)
(46.0%)
ONGC Bonny Brahmaputra Ltd. (OBBL)
Mangalore
Petrochemicals Ltd.
ONGC Narmada Ltd. (OBBL)

11. ONGC Today Oil plus Oil-equivalent Gas,
ONGC produces : 1 million barrels per day of
Oil plus Oil-equivalent Gas,
from recoverable reserve of 1.1 Billion MT,
selling Crude, Gas and Products
with a turnover of US $11.1 billion in

12. Historical Perspctive
ONGC discovered
6 out of the 7 producing Basins of India
1889: Assam Shelf *
1967: Rajasthan Basin
1973: A&AA FB
1958: Cambay Basin
1980: KG Basin
1974: Mumbai Offshore
1985: Cauvery Basin
* By AR & T Co. - Assam Railways and Trading Company Ltd.

13. Historical Perspective
1956 – 2006
330 Discoveries/ Finds
Onshore: 212
Offshore: 118
Discovered
6.41 Billion MT of O+OEG
in Indian Basins
Produced
1.145 Billion MT O+OEG:
Oil (0.726) & Gas (0.419)
Accreted
ultimate reserves of
2.26 Billion MT of O+OEG
Discovered: The term applied to a petroleum accumulation/ reservoir whose existence has been determined by its actual penetration by a well, which has also clearly demonstrated the existence of movable petroleum by flow to the surface or at least some recovery of a sample petroleum.

14. ONGC Today Among all Indian Companies,
our net worth of US $ billion,
market capitalization of US $ billion*,
and net profit of US $3.25 billion
are the highest.
* As of

15. ONGC a State Enterprise
As on
Paid-up Share Capital : US $ million

16. ONGC: Infrastructure ONGC has state-of-the-art and globally comparable
exploration facilities in place.
Facility
Capabilities
DRILLING
98 drilling rigs (79 owned + 19 C/H)
Onshore – 70 rigs (70 owned)
Offshore – 28 rigs (9 owned + 19 C/H)
WORK OVER
66 work over rigs (57 owned + 9 C/H)
Onshore – 64 rigs (55 owned + 9 C/H)
Offshore – 2 rigs
WELL STIMULATION
112 well stimulation units
Onshore – 108 units
Offshore – 4 stimulation vessels
SEISMIC UNITS
25 Seismic crew (+ 1 Off-shore Vessel + 3 VSP)
VIRTUAL REALITY CENTRES
Five – Mumbai (2), Dehradun (1), Vadodara (1), Chennai (1)
REGIONAL COMPUTER CENTRES
Five – Mumbai, Vadodara, Chennai, Jorhat, Kolkata
VSP= Vertical Seismic Profile crew

17. Production Installations
ONGC: Infrastructure
Production Installations
Onland:
Production Installations :
Pipelines (Kms.) : 7,900
Engineering Workshops :
Offshore:
Well Platforms :
Process Platforms :
Well cum Process Platforms :
Offshore Supply Vessel : (31+28)
Multi-purpose Support Vessel : (2+1)
Pipelines (Km.) : 3,300

18. Processing Facilities
ONGC: Infrastructure
Processing Facilities
Hazira, Gujarat
Handling Capacity: 41 MMSCMD
Products : Gas, LPG, Naphtha, SKO, HSD, ATF
Uran, Maharashtra
Handling Capacity: 20 MMT Oil & 16 MMSCMD Gas
Products :Oil, Gas, LPG, Naphtha,C2-C3
Ankleshwar and Gandhar, Gujarat
Handling Capacity: 0.1 MMTPA Oil & 1 MMSCMD Gas
Products : LPG, Naphtha
LPG- Liquefied Petroleum Gas
SKO- Superior Kerosene Oil
C2-C3- Ethane- Propane
HSD- High Speed Diesel
LSHS- Low Sulphur Heavy Stock
ATF- Aviation Turbine Fuel
Tatipaka Mini-Refinery, Gujarat
Handling Capacity: 0.1 MMTPA Oil
Products : Naphtha, SKO, HSD, LSHS
MMTPA- Million Tonnes Per Annum
MMSCMD-Million Standard Cubic Meter per day

19. Centre for Excellence for Well Logging Technology in 2006
ONGC: Institutes
1962
1978
1978
1983
KDMIPE
IRS
IDT
IEOT
1984
1987
COIN
IOGPT
GEOPIC
1982
2004
1989
1989
ONGC Academy
SMP
INBIGS
IPSHEM
Centre for Excellence for Well Logging Technology in 2006

20. ONGC: Institutes
Keshava Dev Malviya Institute of Petroleum Exploration, Dehradun
Basin modeling
Hydrocarbon Resource Appraisal
Prospect generation
Geological & Geo-chemical Research
Geodata Processing & Interpretation Centre, Dehradun
Seismic Data Processing & Interpretation
Seismic Software Development
Institute of Reservoir Studies, Ahmedabad
Oil & Gas Field Development Planning
Enhanced Oil Recovery (EOR) Studies
Improved Oil Recovery (IOR) Studies
Institute of Drilling Technology, (Dehradun)
Drilling Technology
Drilling Fluid Engineering
Cementation Engineering
Well Control School

21. ONGC: Institutes Institute of Oil & Gas Production Technology, Mumbai
Production Engineering
Facility Engineering
Well Analysis
Institute of Engineering & Ocean Technology, Mumbai
Geotechnical Engineering
Structural Engineering
Material & Corrosion Engineering
Institute of Biotechnology and Geo-tectonics Studies, Jorhat, Assam
Geo-microbial Hydrocarbon prospecting
Institute of Safety Health & Environment Management, Goa
Safety Audit, Inspection & Training
Occupational Health
Environment Audit
Disaster Management
Survival at Sea Training

22. ONGC: Institutes Technology hub for Logging services
ONGC Academy (Dehradun)
Induction Training
Management Development
Technology Programs
Customized Functional Training
School of Maintenance Practices (Vadodara)
Certified training courses of Oil Field Equipment maintenance
Centre for Excellence for Well Logging Technology (Vadodara)
Technology hub for Logging services
Regional Training Institutes (RTI)
Training institutes for staff

23. E&P Activities Seismic Survey 17,000 GLK (2D) and 21,000 SKM (3D)
Drilling 325 wells per year
Process 60 MMm3 of liquid production to separate 26 MMT (195 million bbl) of oil and 23 BCM of Gas per year.
Sweeten more than 11 BCM of sour gas every year.
Extract about 3,500 KT of VAP every year.

24. E & P Activities PEL Blocks : 112 NELP blocks : 46 ML Blocks : 265
ONGC’s current holding
PEL Blocks : 112
NELP blocks : 46
ML Blocks : 265
CBM Blocks :
with sq. KM of lease area.

25. ONGC accounts for more than 80% of domestic oil & gas production
Domestic Crude Oil Production ( )
Domestic Natural Gas Production ( )
Includes ONGC’s share of production from production-sharing contracts

26. ONGC: Today
Awards & accolades

27. #1 #20 Awards & Accolades among Global E&P companies
September 6, 2006
among Global E&P companies
#20
The Platts Top 250 is a global survey which measures financial performance by examining each company's assets, revenues, profits, and return on invested capital. All companies ranked have assets greater than (U.S.) $2 billion.
among Global Energy Companies
Reliance- 30; IOCL- 41; NTPC- 90; BPCL- 110; HPCL-122; GAIL-156;

28. ONGC: Moody’s Credit Rating
Ratings
ONGC: Moody’s Credit Rating
Indicative Foreign Currency debt rating: Baa1
(Two notches higher than Sovereign Rating)
Local Currency issuer rating: A2
(Six notches higher than Sovereign Rating)
Outlook: Stable
Highest ever credit ratings assigned by Moody’s to any Indian Corporate.

29. Awards & Accolades
256th in Forbes Global 2000 list (Mar, 2006), Topper from India
402nd in Fortune Global 500 (July, 2006)
PFC Energy 50: 18th among top 50 publicly traded Global Oil & Gas Companies (Jan, 2006)
Financial Times Global 500: 158th among the world’s largest companies (June, 2006), topper from India

30. Awards & Accolades
Moitlal Oswal CNBC: Biggest Wealth Creator among Indian Companies (Nov, 2005)
BT: Most Valuable Company in India (Nov, 2005)
ET 500: No.1 by Market Cap & Net Profit (Feb, 2006)
No.1 in Business India’s Super 100 list (Nov, 2005)
Businessworld-IMRB survey (June, 2006): Most respected PSU
Best PSU: People’s Award for Excellence in Business & Economy 2006, by Planman Media (June 2006)

31. Awards & Accolades Golden Peacock Global Award 2005 for Corporate
Social Responsibility (May, 2006)
Amity Corporate Excellence Award (Feb, 2006)
National Award for Excellence in Cost Management (Dec 2005)
Enterprise Excellence Award by Indian Institution of Industrial Engineers (May, 2006)
All India Public Sector Sports Promotion Board: the best sports promoter among all PSUs ( ).

32. ONGC : Focus on Future

33. Clean Coal opportunities
Focus on Future
Monetizing Assets
Assetizing Money
Stabilizing output from producing fields
Bringing New & Marginal fields into production
New facilities
Facility renewal
Value addition
New business
Acquisitions
Integration
Clean Coal opportunities
Power – Tripura Plant, Wind Power
Refinery – MRPL Expansion
Petrochemicals – Dahej, Mangalore
SEZ - Dahej, Mangalore,
CBM: production from 2007
UCG: production from 2008
SCG: Collaboration with Shell

34. Development of New and Marginal fields
Focus on Future
Development of New and Marginal fields
Total marginal fields : 153
Offshore :
Onshore :
Fields Monetized : 39
Offshore : 2 Onshore : 37
Fields under process of monetization : 90
Offshore : 55
Onshore : 35
Fields to be monetized: 24
Offshore : 17
Onshore : 7

35. Development of New and Marginal fields
Focus on Future
Development of New and Marginal fields
Marginal fields to monetize 169 MMt of O+OEG ( 95 % of UR: 177 MMT)
At the end of XI plan, production of 75,000 bopd and 13 MMscmd gas expected

36. Focus on Future: E&P Business
Deepwater & Frontier basin thrust areas
Early monetization of new discoveries
Technology solutions for improving Recovery Factor
Expeditious development of small & marginal fields
Refurbishment of surface facilities
Technology induction
Domain Experts

37. Focus on Future :Technology
Technology Induction
Seismic Acquisition, Processing & Interpretation
Drilling & related services
Logging, Well Stimulation, Well Control
Info-com applications
Facilities & Logistics
Trust Deed for ONGC Energy Centre being executed on 8th August Four of the six Trustees are from ONGC
C&MD
Director (Finance)
Director (HR)
Director I/c (T&FS) The other two Trustees are:
Director General of TERI Dr. R K Pachauri &
Tata Chair Professor (Dept. of Metallurgical & Materials) in IIT Kharagpur Dr. S Basu.

38. Focus on Future :Technology
G&G Technology
Q-Marine, GXT, Sea bed logging
Seismic Vessel - MV Sagar Samiksha
Multi-component Seismic survey
EM Pulse source, Virtual Drilling
RTOC ( Real time Operation Control), Air Borne Electromagnetic survey
4C-4D Project
Digital oil field monitoring
Digital Geophone
Accelerated Weight Drop
MTEM( Multi Transient Electro Magnetic)

39. Exploration Technology required for
Focus on Future
Exploration Technology required for
Improving subsurface mapping through quality seismic
Mapping below Basalt
Subsurface mapping below thrust and highly folded area
Mapping of thin reservoir
Drilling below thrust and tightly folded area
Knowledge Management
Deepwater exploration techniques
Reduction of Risk capital & improving success Ratio through Direct Detection of hydrocarbon

40. Domain Experts for Seismic interpretation process validation
Basin modeling
Petroleum system analysis
Advance reservoir characterization
Sequence stratigraphy

41. Drilling & Field Services
Technology
Drilling & Field Services
Drilling Hi-Tech, Multilateral, ERD & Side Track wells
Non-damaging fluid
Low Toxicity Synthetic Oil Based Mud (LTSOBM)
Hydraulic Stage Collars
Riser-less drilling
Expandable casing
Medium Radius Drain Hole (MRDH)

42. Focus on Future :Technology
Production
FPSO
Intelligent well completions, segmented completion
Onshore control room for offshore operations
Dispersible smart plug
New generation PWC-CFU
Produced water re-injection
Custody transfer meter
Intelligent platform

43. Production Technology required for
Production from tight reservoir
Production from thin Reservoir
Technology for water shut off & Sand cut packers
Improving Recovery factor (IOR/EOR Techniques)
Production from multiple reservoirs in same area
Better stimulation methodology & techniques
Detection & Exploitation of bypassed oil
Exploitation from sub-pressure & sur-pressure reservoirs
Cost effective production of Natural Gas from super deep water
Light platform to cut costs & improving return specially from marginal fields.

44. Exploration and production of CBM
Gas Hydrate
MOPNG initiated a National Gas Hydrate Programme
ONGC, GAIL & OIL participating.
Programme envisages resource estimation through actual sampling.
Under Ground Coal Gasification
This is a proven technology to harness energy from under ground coal seams.
ONGC is looking for the other state and Central PSU and a foreign backup to join hands with.
Coal Bed Methane
Exploration and production of CBM

45. Possible Area of Co-operation
Preferential Access to the latest technology expertise
Management process and practices
New Areas viz. CBM, UCG, Surface Coal Gasification
Joint bidding for acreages abroad
Refinery and Petrochemicals

46. Collaboration

47. Collaborations: E&P
Collaboration with
Ente Nazionale Idrocarburi (ENI), Italy
Deepwater E&P in India
Third country opportunities
Technical cooperation

48. Collaborations: E&P Collaboration with Norsk Hydro, Norway
Deepwater E&P in India
Third country opportunities (Cuba)
Technical cooperation for thin oil recovery

49. Roxar Software Solutions, Norway
Collaborations: E&P
Collaboration with
Roxar Software Solutions, Norway
Geosteering software for geological & drilling events
Log forward modeling using High resolution Logs based on 3D reservoir models

50. Other collaborations in E&P
Collaborations: E&P
Other collaborations in E&P
IPR Int. Ltd.
Schlumberger Asia Services Ltd.
Baker Hughes Singapore Pte.
Halliburton Offshore Services Inc

51. Collaborations: Services
Collaboration with
SINTEF, Norway
Co-operation on Env. Mgmt, Safety, Occupational Health etc.

52. Capital Investment :

53. Capex analysis ( )
99.7% on E&P

54. 10th Plan Capex

55. Petroleum Sector in India (US $ Million)
Investment NELP ( )
10th Plan Likely Investment
E&P Sector
ONGC :
OVL :
OIL :
1. E&P CAPEX in India
2. Refinery & Marketing
3. Petrochemicals
4. Engineering
13.03
Total 10th Plan CAPEX

56. ONGC Plan outlay: 10th Plan
(US$ Million)
Activities
10th Plan
Seismic surveys
1493
Exploratory Drilling
2404
Development Drilling
2024
CBM
Capital
3984
R&D/ Institutes
183
PSC JVs
680
Domestic acquisition/ Integration
814
Total
11582

57. Contractual Expenditure in Last Three Years (US $ Million)
Activities
05-06
04-05
03-04
Dlrg.
32.10
60.09
48.02
Logging
57.72
41.44
66.47
2D/3D Seismic
142.92
113.73
108.29
Offshore Supply Vessels
54.53
56.98
82.82
Data Acq.Program
79.94
Drlg. H&M-Lat. Wells
19.23
11.36
Route Survey
16.16
20.65
Others
200.57
200.07
101.23
Total
603.18
504.32
406.83

58. Addition in Plant & Machinery in Last Three Years (US $ Million)
Materials
05-06
04-05
03-04
Dlrg. Rigs Accessories
24.55
19.92
24.38
Casing Pipes
61.33
47.86
52.26
Prod. Equip.
9.62
6.24
28.47
Prod. Installations
339.93
102.94
130.30
Process Platforms
265.62
28.58
164.10
Data Processing Equip.
22.02
16.67
23.19
Trunkline-Oil&Gas
484.86
5.57
Flowlines
51.29
55.81
Other items
52.88
85.09
19.13
Total Additions
368.68
441.83

59. Consumption of Stores in Last Three Years (US $ Million)
Items
05-06
04-05
03-04
Drill Bits
7.24
6.71
7.75
Chemicals Incl.Mud
33.27
39.23
35.26
P.O.L.
143.06
144.14
137.39
Tubing Pipes Fitting
14.70
12.00
11.50
Other Stores
62.16
41.13
33.97
Total
260.43
243.22
225.88

60. Consumption of Spares in Last Three Years (US $ Million)
Equipments
05-06
04-05
03-04
Drilling Equipments
19.42
16.04
15.18
Production Equipments
25.33
31.63
15.72
Geophysical Equipments
4.09
3.06
4.01
BOP Elevators
6.84
4.88
6.24
Production Platforms
4.64
4.91
3.69
Other Spares
11.67
12.56
10.71
Total
72.01
73.10
55.55
Total Stores & Spares
332.44
316.31
281.42

61. Improving recovery factor
Completed Projects
Project
Project Cost
(US$ Million) 1
IOR-Neelam ( ) 78 2
IOR-Heera Part-1 ( ) 69 3
IOR-Gandhar ( )
156 4
Sanand Polymer ( )
6.8 5
EOR-Balol ( ) 27 6
EOR-Santhal ( ) 75 7
IOR-Jotana ( ) 12 8
IOR-Santhal ( )
8.7
Total
432.5

62. Improving recovery factor
IOR/ EOR Projects under implementation (US$ 2.7 Billion)
Sl.
Projects
Revised Cost
(US$ Million) 1
MHN Redev.
728 2
MHS Redev.
1478 3
IOR-Kalol 22 4
IOR-North Kadi Ph-I 14 5
IOR-Sobhasan 16 6
IOR-Rudrasagar 49 7
IOR-Geleki
188 8
IOR-Lakwa 96 9
IOR-North Kadi Ph-II 10
IOR-Heera Ph-II
128
Total
2726
25 IOR Projects identified in other medium fields

63. 11th Plan CAPEX

64. Indian Petroleum Sector :11th PLAN BREAK UP (US $ Million)
Up Stream
Refining
Gas
Marketing
Crude Pipeline/Terminal
950.56
R&D (Incl. Up Stream)
318.65
Other (Incl. RGIPT)
794.60
Total

65. ONGC:11th Plan CAPEX

66. Initial Inplace (MMToe)
11th Plan E & P Programme
Physical Programme
11th Plan
Proposals
Firm
Upside
Seismic survey
2D (GLK)
54359
46664
3D (SKM)
76398
45904
Drilling
Exploratory (Nos.)
651
Development (Nos.)
1000
Reserves
Initial Inplace (MMToe)
Ultimate (MMToe)
340
Production
Crude Oil (MMT)
140.06
Natural Gas (BCM)
112.39
VAP (KT)
16346
Gas sales (BCM)
82.912

67. ONGC Plan outlay: 11th Plan
(US$ Million)
Activities
11th Plan*
Seismic surveys
1704
Exploratory Drilling
2381
Development Drilling
3189
CBM
667
Capital
7534
R&D/ Institutes
187
PSC JVs
1074
Domestic acquisition/ Integration
941
Total
18577
*Note: 11th Plan outlay is Proposed

68. Projects Approx. Project cost (US$ Million)
Major Projects: E&P
Projects
Approx. Project cost
(US$ Million)
For Direct Production
Marginal fields
2702
G-1 & GS-15 Development
269
East Coast Hub Development*
1170
D-1 Development
108
Vasai (East) Development
359
Addl. Dev. Bassein field
625
Dev. of SB-11, Bassein 52
Addl. Dev A-1 layer in MHN
194
For Producing Facilities
Assam Renewal Plan*
547
Other Revamping Projects
743
Total
6769

69. XI Plan : Investment plan- Integration & Diversification
Projects
Investment
( US$ Million)
Petrochemical
266
Power Plant
433
Equity Participation
293
Retail marketing
5.5
Total
1010

70. Mode of Co-operation

71. Mode of Co-operation Turnkey assignment Work Association Consultancy
Empanelment as Domain Expert on retainership basis
Transfer of technology
Technological Alliancing
Any other, based on the organizational need

72. Mode of Selection
Alliances and MOU
Joint Venture
Production Sharing Contract
Outright Purchase
Farm in/Farm Out

73. Process of Selection
Nomination basis (Proprietary items)
Limited Tender (inviting short-listed parties)
Open Tender

74. Thank You

75. Courage to Explore, Knowledge to Exceed, Technology to Excel