Ongc future plan_and_opportunities

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  • 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.
  • VSP= Vertical Seismic Profile crew
  • 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.
  • Trust Deed for ONGC Energy Centre being executed on 8 th August 2005. 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.
  • Ongc future plan_and_opportunities

    1. 1. 1
    2. 2. ONGC: Future Plan &Business Opportunities 2
    3. 3. Presentation OverviewI. Glimpses of India.II. ONGC: Function & infrastructureIII. ONGC : Focus on FutureIV. CollaborationV. Capital InvestmentVI. 10th Plan (2002-07) CAPEX PlanVII. 11th Plan (2007-12) CAPEX PlanVIII. Mode of Co-operation 3
    4. 4. Glimpses of India 4
    5. 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. 5
    6. 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. 6
    7. 7. Glimpses of India Cont…• Key Advantages of Doing Business with India • 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. 7
    8. 8. ONGC:Function & Infrastructure 8
    9. 9. ONGC today, has evolved into an integrated Oil & Gas CorporateIn-house capability in all with interests in aspects of the E&P business E&P, Refining, LNG, Power,Seismic API, Drilling, Work-over and Well Stimulation, Production, Processing, Petrochemicals & New sources of Engineering & Construction, Refining and energy. Marketing. … a reliable energy solution provider for the country 9
    10. 10. ONGC: Strategic EvolutionOverseas 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%) Mangalore ONGC Bonny Brahmaputra Ltd. (OBBL) Petrochemicals Ltd. ONGC Narmada Ltd. (OBBL) 10
    11. 11. ONGC TodayONGC 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 2005-06. 11
    12. 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 Basin1974: Mumbai Offshore 1985: Cauvery Basin * By AR & T Co. - Assam Railways and Trading Company Ltd. 12
    13. 13. Historical Perspective 1956 – 2006 330 Discoveries/ Finds Discovered Onshore: 212 6.41 Billion MT of O+OEG in Indian Basins Offshore: 118 Accreted Produced ultimate reserves of 1.145 Billion MT O+OEG:2.26 Billion MT of O+OEG Oil (0.726) & Gas (0.419) 13
    14. 14. ONGC Today Among all Indian Companies, our net worth of US $12.043 billion, market capitalization of US $42.109 billion*, and net profit of US $3.25 billion are the highest.* As of 02.01.2007 14
    15. 15. ONGC a State Enterprise As on 31.12.2006 PSUs, 10.47 FIIs, 9.11 Indian Fis, 2.95 Mutual Funds,Govt., 74.14 1.15 Others, 0.38 Public, 1.80 Paid-up Share Capital : US $480.65 million 15
    16. 16. ONGC: Infrastructure ONGC has state-of-the-art and globally comparable exploration facilities in place.Facility CapabilitiesDRILLING 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 rigsWELL STIMULATION 112 well stimulation units  Onshore – 108 units  Offshore – 4 stimulation vesselsSEISMIC UNITS 25 Seismic crew (+ 1 Off-shore Vessel + 3 VSP)VIRTUAL REALITY Five – Mumbai (2), Dehradun (1), Vadodara (1), Chennai (1)CENTRESREGIONAL Five – Mumbai, Vadodara, Chennai, Jorhat, KolkataCOMPUTERCENTRES 16
    17. 17. ONGC: InfrastructureProduction InstallationsOnland:Production Installations : 225Pipelines (Kms.) : 7,900Engineering Workshops : 2Offshore:Well Platforms : 131Process Platforms : 28Well cum Process Platforms : 5Offshore Supply Vessel : 59 (31+28)Multi-purpose Support Vessel : 3 (2+1)Pipelines (Km.) : 3,300 17
    18. 18. ONGC: InfrastructureProcessing 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 GasLPG- Liquefied Petroleum Gas Products : LPG, NaphthaSKO- Superior Kerosene OilC2-C3- Ethane- PropaneHSD- High Speed Diesel Tatipaka Mini-Refinery, GujaratLSHS- Low Sulphur Heavy StockATF- Aviation Turbine Fuel Handling Capacity: 0.1 MMTPA Oil Products : Naphtha, SKO, HSD, LSHSMMTPA- Million Tonnes Per AnnumMMSCMD-Million Standard Cubic Meter per day 18
    19. 19. ONGC: Institutes 1962 1978 1978 1983 KDMIPE IRS IDT IEOT 1984 1987 IOGPT GEOPIC COIN 1982 2004 1989 1989ONGC Academy SMP INBIGS IPSHEM Centre for Excellence for Well Logging Technology in 2006 19
    20. 20. ONGC: InstitutesKeshava Dev Malviya Institute of Petroleum Exploration, Dehradun Basin modeling Hydrocarbon Resource Appraisal Prospect generation Geological & Geo-chemical ResearchGeodata Processing & Interpretation Centre, Dehradun Seismic Data Processing & Interpretation Seismic Software DevelopmentInstitute of Reservoir Studies, Ahmedabad Oil & Gas Field Development Planning Enhanced Oil Recovery (EOR) Studies Improved Oil Recovery (IOR) StudiesInstitute of Drilling Technology, (Dehradun) Drilling Technology Drilling Fluid Engineering Cementation Engineering Well Control School 20
    21. 21. ONGC: InstitutesInstitute of Oil & Gas Production Technology, Mumbai Production Engineering Facility Engineering Well AnalysisInstitute of Engineering & Ocean Technology, Mumbai Geotechnical Engineering Structural Engineering Material & Corrosion EngineeringInstitute of Biotechnology and Geo-tectonics Studies, Jorhat, Assam • Geo-microbial Hydrocarbon prospectingInstitute of Safety Health & Environment Management, Goa Safety Audit, Inspection & Training Occupational Health Environment Audit Disaster Management Survival at Sea Training 21
    22. 22. ONGC: InstitutesONGC Academy (Dehradun) Induction Training Management Development Technology Programs Customized Functional TrainingSchool of Maintenance Practices (Vadodara) •Certified training courses of Oil Field Equipment maintenanceCentre for Excellence for Well Logging Technology (Vadodara) •Technology hub for Logging servicesRegional Training Institutes (RTI) •Training institutes for staff 22
    23. 23. E&P ActivitiesSeismic Survey 17,000 GLK (2D) and 21,000 SKM (3D)Drilling 325 wells per yearProcess 60 MMm3 of liquid production to separate 26MMT (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. 23
    24. 24. E & P ActivitiesONGC’s current holding PEL Blocks : 112 NELP blocks : 46 ML Blocks : 265 CBM Blocks : 9 with 601076 sq. KM of lease area. 24
    25. 25. ONGC accounts for more than 80% of domestic oil & gas productionDomestic Crude Oil Production (2005-06) Domestic Natural Gas Production (2005-06) OIL OIL ONGC ONGC 7.0% 10.0% 79.2% 81.5% Pvt./JV Pvt./JV 13.8% 8.5% Includes ONGC’s share of production from production-sharing contracts 25
    26. 26. ONGC: TodayAwards & accolades 26
    27. 27. Awards & AccoladesSeptember 6, 2006 #1 among Global E&P companies #20 among Global Energy Companies Reliance- 30; IOCL- 41; NTPC- 90; BPCL- 110; HPCL-122; GAIL-156; 27
    28. 28. 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: StableHighest ever credit ratings assigned by Moody’s to any Indian Corporate. 28
    29. 29. Awards & Accolades256th in Forbes Global 2000 list (Mar, 2006), Topper fromIndia402nd in Fortune Global 500 (July, 2006)PFC Energy 50: 18th among top 50 publicly traded GlobalOil & Gas Companies (Jan, 2006)Financial Times Global 500: 158th among the world’slargest companies (June, 2006), topper from India 29
    30. 30. Awards & AccoladesMoitlal Oswal CNBC: Biggest Wealth Creator among IndianCompanies (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 respectedPSUBest PSU: People’s Award for Excellence in Business &Economy 2006, by Planman Media (June 2006) 30
    31. 31. Awards & AccoladesGolden Peacock Global Award 2005 for CorporateSocial Responsibility (May, 2006)Amity Corporate Excellence Award (Feb, 2006)National Award for Excellence in Cost Management (Dec2005)Enterprise Excellence Award by Indian Institution ofIndustrial Engineers (May, 2006)All India Public Sector Sports Promotion Board: the bestsports promoter among all PSUs (24.06.2006). 31
    32. 32. ONGC : Focus on Future 32
    33. 33. Focus on Future Monetizing Assets Assetizing Money• Stabilizing output from • New facilities producing fields • Facility renewal• Bringing New & Marginal fields • Value addition into production • New business • Acquisitions Integration Clean Coal opportunities• Power – Tripura Plant, Wind Power • CBM: production from 2007• Refinery – MRPL Expansion • UCG: production from 2008• Petrochemicals – Dahej, Mangalore • SCG: Collaboration with Shell• SEZ - Dahej, Mangalore, 33
    34. 34. Focus on Future Development of New and Marginal fieldsTotal marginal fields : 153 Fields Monetized : 39 Offshore : 74 Offshore : 2 Onshore : 79 Onshore : 37 Fields under process of monetization : 90 Offshore : 55 Onshore : 35 Fields to be monetized: 24 Offshore : 17 Onshore :7 34
    35. 35. Focus on Future Development of New and Marginal fieldsMarginal fields to monetize 169 MMt of O+OEG ( 95 %of UR: 177 MMT)At the end of XI plan, production of 75,000 bopd and13 MMscmd gas expected 35
    36. 36. Focus on Future: E&P BusinessDeepwater & Frontier basin thrust areasEarly monetization of new discoveriesTechnology solutions for improving RecoveryFactorExpeditious development of small & marginalfieldsRefurbishment of surface facilitiesTechnology inductionDomain Experts 36
    37. 37. Focus on Future :TechnologyTechnology Induction Seismic Acquisition, Processing & Interpretation Drilling & related services Logging, Well Stimulation, Well Control Info-com applications Facilities & Logistics 37
    38. 38. Focus on Future :TechnologyG&G TechnologyQ-Marine, GXT, Sea bed loggingSeismic Vessel - MV Sagar SamikshaMulti-component Seismic surveyEM Pulse source, Virtual DrillingRTOC ( Real time Operation Control), Air BorneElectromagnetic survey4C-4D ProjectDigital oil field monitoringDigital GeophoneAccelerated Weight DropMTEM( Multi Transient Electro Magnetic) 38
    39. 39. Focus on Future Exploration Technology required forImproving subsurface mapping through qualityseismic Mapping below BasaltSubsurface mapping below thrust and highly foldedareaMapping of thin reservoirDrilling below thrust and tightly folded areaKnowledge ManagementDeepwater exploration techniquesReduction of Risk capital & improving successRatio through Direct Detection of hydrocarbon 39
    40. 40. Domain Experts for Seismic interpretation process validation Basin modeling Petroleum system analysis Advance reservoir characterization Sequence stratigraphy 40
    41. 41. TechnologyDrilling & Field ServicesDrilling Hi-Tech, Multilateral, ERD & Side Track wellsNon-damaging fluidLow Toxicity Synthetic Oil Based Mud (LTSOBM)Hydraulic Stage CollarsRiser-less drillingExpandable casingMedium Radius Drain Hole (MRDH) 41
    42. 42. Focus on Future :TechnologyProduction• 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 42
    43. 43. Production Technology required forProduction from tight reservoirProduction from thin ReservoirTechnology for water shut off & Sand cut packersImproving Recovery factor (IOR/EOR Techniques)Production from multiple reservoirs in same areaBetter stimulation methodology & techniquesDetection & Exploitation of bypassed oilExploitation from sub-pressure & sur-pressurereservoirsCost effective production of Natural Gas fromsuper deep waterLight platform to cut costs & improving returnspecially from marginal fields. 43
    44. 44. Gas HydrateMOPNG initiated a National Gas Hydrate ProgrammeONGC, GAIL & OIL participating.Programme envisages resource estimation through actual sampling.Under Ground Coal GasificationThis is a proven technology to harness energy from underground coal seams.ONGC is looking for the other state and Central PSU and aforeign backup to join hands with. Coal Bed MethaneExploration and production of CBM 44
    45. 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 45
    46. 46. Collaboration 46
    47. 47. Collaborations: E&PCollaboration withEnte Nazionale Idrocarburi (ENI), Italy Deepwater E&P in India Third country opportunities Technical cooperation 47
    48. 48. Collaborations: E&PCollaboration withNorsk Hydro, Norway Deepwater E&P in India Third country opportunities (Cuba) Technical cooperation for thin oil recovery 48
    49. 49. Collaborations: E&PCollaboration withRoxar Software Solutions, Norway Geosteering software for geological & drilling events Log forward modeling using High resolution Logs based on 3D reservoir models 49
    50. 50. Collaborations: E&POther collaborations in E&P IPR Int. Ltd. Schlumberger Asia Services Ltd. Baker Hughes Singapore Pte. Halliburton Offshore Services Inc 50
    51. 51. Collaborations: ServicesCollaboration withSINTEF, Norway Co-operation on Env. Mgmt, Safety, Occupational Health etc. 51
    52. 52. Capital Investment : 52
    53. 53. Capex analysis (2005-06) 99.7% on E&P JVC Projects 7.2% E&P Acquisition 35.0% 6.1% Downstream 0.3% Survey 13.1%R&D0.9% Dev. Drilling Expl. Drilling 16.4% 20.9% 53
    54. 54. 10th Plan Capex 54
    55. 55. Petroleum Sector in India (US $ Million)Investment NELP (2000-06) 1451.1810th Plan Likely InvestmentE&P Sector ONGC : 11581.91 OVL : 5483.37 OIL : 1075.461. E&P CAPEX in India 12657.382. Refinery & Marketing 5921.803. Petrochemicals 1712.354. Engineering 13.03Total 10th Plan CAPEX 20304.49 55
    56. 56. ONGC Plan outlay: 10th Plan (US$ Million)Activities 10th PlanSeismic surveys 1493Exploratory Drilling 2404Development Drilling 2024CBMCapital 3984R&D/ Institutes 183PSC JVs 680Domestic acquisition/ Integration 814Total 11582 56
    57. 57. Contractual Expenditure in Last Three Years (US $ Million)Activities 05-06 04-05 03-04Dlrg. 32.10 60.09 48.02Logging 57.72 41.44 66.472D/3D Seismic 142.92 113.73 108.29Offshore Supply Vessels 54.53 56.98 82.82Data Acq.Program 79.94 0 0Drlg. H&M-Lat. Wells 19.23 11.36 0Route Survey 16.16 20.65 0Others 200.57 200.07 101.23Total 603.18 504.32 406.83 57
    58. 58. Addition in Plant & Machinery in Last Three Years (US $ Million)Materials 05-06 04-05 03-04Dlrg. Rigs Accessories 24.55 19.92 24.38Casing Pipes 61.33 47.86 52.26Prod. Equip. 9.62 6.24 28.47Prod. Installations 339.93 102.94 130.30Process Platforms 265.62 28.58 164.10Data Processing Equip. 22.02 16.67 23.19Trunkline-Oil&Gas 484.86 5.57 0Flowlines 51.29 55.81 0Other items 52.88 85.09 19.13Total Additions 1312.09 368.68 441.83 58
    59. 59. Consumption of Stores in Last Three Years (US $ Million)Items 05-06 04-05 03-04Drill Bits 7.24 6.71 7.75Chemicals Incl.Mud 33.27 39.23 35.26P.O.L. 143.06 144.14 137.39Tubing Pipes Fitting 14.70 12.00 11.50Other Stores 62.16 41.13 33.97Total 260.43 243.22 225.88 59
    60. 60. Consumption of Spares in Last Three Years (US $ Million)Equipments 05-06 04-05 03-04Drilling Equipments 19.42 16.04 15.18Production Equipments 25.33 31.63 15.72Geophysical Equipments 4.09 3.06 4.01BOP Elevators 6.84 4.88 6.24Production Platforms 4.64 4.91 3.69Other Spares 11.67 12.56 10.71Total 72.01 73.10 55.55Total Stores & Spares 332.44 316.31 281.42 60
    61. 61. Improving recovery factor Completed Projects Project Cost Project (US$ Million)1 IOR-Neelam (11.1.01) 782 IOR-Heera Part-1 (11.1.01) 693 IOR-Gandhar (16.12.00) 1564 Sanand Polymer (14.8.00) 6.85 EOR-Balol (26.10.95) 276 EOR-Santhal (16.10.95) 757 IOR-Jotana (28.2.01) 128 IOR-Santhal (14.8.00) 8.7 Total 432.5 61
    62. 62. Improving recovery factor IOR/ EOR Projects under implementation (US$ 2.7 Billion) Revised CostSl. Projects (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 710 IOR-Heera Ph-II 128 Total 2726 25 IOR Projects identified in other medium fields 62
    63. 63. 11th Plan CAPEX 63
    64. 64. Indian Petroleum Sector :11th PLAN BREAK UP (US $ Million)Up Stream 35766.50Refining 18324.70Gas 2939.10Marketing 1366.29Crude Pipeline/Terminal 950.56R&D (Incl. Up Stream) 318.65Other (Incl. RGIPT) 794.60Total 60460.40 64
    65. 65. ONGC:11th Plan CAPEX 65
    66. 66. 11th Plan E & P Programme 11th Plan Physical Programme Proposals Upside Firm Seismic survey 2D (GLK) 54359 46664 3D (SKM) 76398 45904 Drilling Exploratory (Nos.) 651 Development (Nos.) 1000 ReservesInitial Inplace (MMToe) 1000 Ultimate (MMToe) 340 Production Crude Oil (MMT) 140.06 Natural Gas (BCM) 112.39 VAP (KT) 16346 Gas sales (BCM) 82.912 66
    67. 67. ONGC Plan outlay: 11th Plan (US$ Million)Activities 11th Plan*Seismic surveys 1704Exploratory Drilling 2381Development Drilling 3189CBM 667Capital 7534R&D/ Institutes 187PSC JVs 1074Domestic acquisition/ Integration 941Total 18577 *Note: 11th Plan outlay is Proposed 67
    68. 68. Major Projects: E&P Approx. Project Projects cost (US$ Million) For Direct Production Marginal fields 2702 G-1 & GS-15 Development 269East 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 68 Total 6769
    69. 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 69
    70. 70. Mode of Co-operation 70
    71. 71. Mode of Co-operationTurnkey assignmentWork AssociationConsultancyEmpanelment as Domain Expert onretainership basisTransfer of technologyTechnological AlliancingAny other, based on the organizationalneed 71
    72. 72. Mode of SelectionAlliances and MOUJoint VentureProduction Sharing ContractOutright PurchaseFarm in/Farm Out 72
    73. 73. Process of SelectionNomination basis (Proprietary items)Limited Tender (inviting short-listedparties)Open Tender 73
    74. 74. Thank You 74
    75. 75. Courage to Explore, Knowledge to Exceed, Technology to Excel 75

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