ONGC outlines its future plans to focus on monetizing existing assets and acquiring new assets through development of marginal fields, facility upgrades, and partnerships. It discusses ongoing E&P activities including drilling and production operations. The presentation also provides an overview of ONGC's infrastructure, institutes, and awards as the largest national oil and gas company in India.

1. 1

2. ONGC:
Future Plan
&
Business Opportunities
2

3. Presentation Overview
I. Glimpses of India.
II. ONGC: Function & infrastructure
III. ONGC : Focus on Future
IV. Collaboration
V. Capital Investment
VI. 10th Plan (2002-07) CAPEX Plan
VII. 11th Plan (2007-12) CAPEX Plan
VIII. Mode of Co-operation
3

4. Glimpses of India
4

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. 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. 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. ONGC:
Function & Infrastructure
8

9. ONGC today,
has evolved into
an integrated Oil & Gas Corporate
In-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. 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%) Mangalore
ONGC Bonny Brahmaputra
Ltd. (OBBL) Petrochemicals Ltd.
ONGC Narmada Ltd. (OBBL)
10

11. ONGC Today
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 2005-06.
11

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. 12

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. 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. 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. 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 Five – Mumbai (2), Dehradun (1), Vadodara (1), Chennai (1)
CENTRES
REGIONAL Five – Mumbai, Vadodara, Chennai, Jorhat, Kolkata
COMPUTER
CENTRES 16

17. ONGC: Infrastructure
Production Installations
Onland:
Production Installations : 225
Pipelines (Kms.) : 7,900
Engineering Workshops : 2
Offshore:
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. 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
LPG- Liquefied Petroleum Gas Products : LPG, Naphtha
SKO- Superior Kerosene Oil
C2-C3- Ethane- Propane
HSD- High Speed Diesel Tatipaka Mini-Refinery, Gujarat
LSHS- Low Sulphur Heavy Stock
ATF- Aviation Turbine Fuel
Handling Capacity: 0.1 MMTPA Oil
Products : Naphtha, SKO, HSD, LSHS
MMTPA- Million Tonnes Per Annum
MMSCMD-Million Standard Cubic Meter per day 18

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

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
20

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
21

22. ONGC: Institutes
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
22

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.
23

24. E & P Activities
ONGC’s current holding
PEL Blocks : 112
NELP blocks : 46
ML Blocks : 265
CBM Blocks : 9
with 601076 sq. KM of lease area.
24

25. ONGC accounts for more than 80% of
domestic oil & gas production
Domestic 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. ONGC: Today
Awards & accolades
26

27. Awards & Accolades
September 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. 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.
28

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
29

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) 30

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 (24.06.2006).
31

32. ONGC : Focus on Future
32

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. Focus on Future
Development of New and Marginal fields
Total 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. 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
35

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
36

37. Focus on Future :Technology
Technology Induction
Seismic Acquisition, Processing & Interpretation
Drilling & related services
Logging, Well Stimulation, Well Control
Info-com applications
Facilities & Logistics
37

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)
38

39. 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
39

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

41. 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)
41

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
42

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.
43

44. 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
44

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. Collaboration
46

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

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

49. 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
49

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

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

52. Capital Investment :
52

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&D
0.9%
Dev. Drilling Expl. Drilling
16.4% 20.9%
53

54. 10th Plan Capex
54

55. Petroleum Sector in India
(US $ Million)
Investment NELP (2000-06) 1451.18
10th Plan Likely Investment
E&P Sector ONGC : 11581.91
OVL : 5483.37
OIL : 1075.46
1. E&P CAPEX in India 12657.38
2. Refinery & Marketing 5921.80
3. Petrochemicals 1712.35
4. Engineering 13.03
Total 10th Plan CAPEX 20304.49
55

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
56

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 0 0
Drlg. H&M-Lat. Wells 19.23 11.36 0
Route Survey 16.16 20.65 0
Others 200.57 200.07 101.23
Total 603.18 504.32 406.83 57

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 0
Flowlines 51.29 55.81 0
Other items 52.88 85.09 19.13
Total Additions 1312.09 368.68 441.83
58

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
59

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
60

61. Improving recovery factor
Completed Projects
Project Cost
Project
(US$ Million)
1 IOR-Neelam (11.1.01) 78
2 IOR-Heera Part-1 (11.1.01) 69
3 IOR-Gandhar (16.12.00) 156
4 Sanand Polymer (14.8.00) 6.8
5 EOR-Balol (26.10.95) 27
6 EOR-Santhal (16.10.95) 75
7 IOR-Jotana (28.2.01) 12
8 IOR-Santhal (14.8.00) 8.7
Total 432.5 61

62. Improving recovery factor
IOR/ EOR Projects under implementation (US$ 2.7 Billion)
Revised Cost
Sl. 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 7
10 IOR-Heera Ph-II 128
Total 2726
25 IOR Projects identified in other medium fields 62

63. 11th Plan CAPEX
63

64. Indian Petroleum Sector :11th PLAN BREAK UP
(US $ Million)
Up Stream 35766.50
Refining 18324.70
Gas 2939.10
Marketing 1366.29
Crude Pipeline/Terminal 950.56
R&D (Incl. Up Stream) 318.65
Other (Incl. RGIPT) 794.60
Total 60460.40
64

65. ONGC:11th Plan CAPEX
65

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
Reserves
Initial 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. 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
67

68. Major Projects: E&P
Approx. Project
Projects 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
68
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
69

70. Mode of Co-operation
70

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
71

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

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

74. Thank You
74

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