Ongc Growth Strategy Case Study Analysis Powerpoint

Presentation on theme: "Business Opportunities"— Presentation transcript:


2 Business Opportunities
ONGC:Future Plan&Business Opportunities

3 Presentation Overview
Glimpses of India.ONGC: Function & infrastructureONGC : Focus on FutureCollaborationCapital Investment10th Plan ( ) CAPEX Plan11th Plan ( ) CAPEX PlanMode 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 WorldWith a total Geographical Area of 3.29 MM sq km.Second most Populous Nation1.05 Billion strong, having the largest pool of qualified & skilled manpower.One of the most Ancient and Living CivilizationsDates 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 SystemThe Supreme Court : Apex Judicial Authority.High Courts in every State & Lower Courts at Town levels.Existence of Arbitration Mechanisms outside the Courts.LanguagesEnglish 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 businessSeismic API, Drilling, Work-over and Well Stimulation, Production, Processing, Engineering & Construction, Refining and Marketing.with interests inE&P, Refining, LNG, Power, Petrochemicals & New sources of energy.… a reliable energy solution providerfor the country

10 ONGC Petro-additions Ltd. (OPaL)
ONGC: Strategic EvolutionOverseas E&PRefineriesValue-chainPowerServices(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)MangalorePetrochemicals Ltd.ONGC Narmada Ltd. (OBBL)

11 ONGC Today Oil plus Oil-equivalent Gas,
ONGC produces : 1 million barrels per day ofOil plus Oil-equivalent Gas,from recoverable reserve of 1.1 Billion MT,selling Crude, Gas and Productswith a turnover of US $11.1 billionin

12 Historical Perspctive
ONGC discovered6 out of the 7 producing Basins of India1889: Assam Shelf *1967: Rajasthan Basin1973: A&AA FB1958: Cambay Basin1980: KG Basin1974: Mumbai Offshore1985: Cauvery Basin* By AR & T Co. - Assam Railways and Trading Company Ltd.

13 Historical Perspective
1956 – 2006330 Discoveries/ FindsOnshore: 212Offshore: 118Discovered6.41 Billion MT of O+OEGin Indian BasinsProduced1.145 Billion MT O+OEG:Oil (0.726) & Gas (0.419)Accretedultimate reserves of2.26 Billion MT of O+OEGDiscovered: 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 billionare the highest.* As of

15 ONGC a State Enterprise
As onPaid-up Share Capital : US $ million

16 ONGC: Infrastructure ONGC has state-of-the-art and globally comparable
exploration facilities in place.FacilityCapabilitiesDRILLING98 drilling rigs (79 owned + 19 C/H)Onshore – 70 rigs (70 owned)Offshore – 28 rigs (9 owned + 19 C/H)WORK OVER66 work over rigs (57 owned + 9 C/H)Onshore – 64 rigs (55 owned + 9 C/H)Offshore – 2 rigsWELL STIMULATION112 well stimulation unitsOnshore – 108 unitsOffshore – 4 stimulation vesselsSEISMIC UNITS25 Seismic crew (+ 1 Off-shore Vessel + 3 VSP)VIRTUAL REALITY CENTRESFive – Mumbai (2), Dehradun (1), Vadodara (1), Chennai (1)REGIONAL COMPUTER CENTRESFive – Mumbai, Vadodara, Chennai, Jorhat, KolkataVSP= Vertical Seismic Profile crew

17 Production Installations
ONGC: InfrastructureProduction InstallationsOnland:Production Installations :Pipelines (Kms.) : 7,900Engineering 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: InfrastructureProcessing FacilitiesHazira, GujaratHandling Capacity: 41 MMSCMDProducts : Gas, LPG, Naphtha, SKO, HSD, ATFUran, MaharashtraHandling Capacity: 20 MMT Oil & 16 MMSCMD GasProducts :Oil, Gas, LPG, Naphtha,C2-C3Ankleshwar and Gandhar, GujaratHandling Capacity: 0.1 MMTPA Oil & 1 MMSCMD GasProducts : LPG, NaphthaLPG- Liquefied Petroleum GasSKO- Superior Kerosene OilC2-C3- Ethane- PropaneHSD- High Speed DieselLSHS- Low Sulphur Heavy StockATF- Aviation Turbine FuelTatipaka Mini-Refinery, GujaratHandling Capacity: 0.1 MMTPA OilProducts : Naphtha, SKO, HSD, LSHSMMTPA- Million Tonnes Per AnnumMMSCMD-Million Standard Cubic Meter per day

19 Centre for Excellence for Well Logging Technology in 2006
ONGC: Institutes1962197819781983KDMIPEIRSIDTIEOT19841987COINIOGPTGEOPIC1982200419891989ONGC AcademySMPINBIGSIPSHEMCentre for Excellence for Well Logging Technology in 2006

20 ONGC: InstitutesKeshava Dev Malviya Institute of Petroleum Exploration, DehradunBasin modelingHydrocarbon Resource AppraisalProspect generationGeological & Geo-chemical ResearchGeodata Processing & Interpretation Centre, DehradunSeismic Data Processing & InterpretationSeismic Software DevelopmentInstitute of Reservoir Studies, AhmedabadOil & Gas Field Development PlanningEnhanced Oil Recovery (EOR) StudiesImproved Oil Recovery (IOR) StudiesInstitute of Drilling Technology, (Dehradun)Drilling TechnologyDrilling Fluid EngineeringCementation EngineeringWell Control School

21 ONGC: Institutes Institute of Oil & Gas Production Technology, Mumbai
Production EngineeringFacility EngineeringWell AnalysisInstitute of Engineering & Ocean Technology, MumbaiGeotechnical EngineeringStructural EngineeringMaterial & Corrosion EngineeringInstitute of Biotechnology and Geo-tectonics Studies, Jorhat, AssamGeo-microbial Hydrocarbon prospectingInstitute of Safety Health & Environment Management, GoaSafety Audit, Inspection & TrainingOccupational HealthEnvironment AuditDisaster ManagementSurvival at Sea Training

22 ONGC: Institutes Technology hub for Logging services
ONGC Academy (Dehradun)Induction TrainingManagement DevelopmentTechnology ProgramsCustomized 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

23 E&P Activities Seismic Survey 17,000 GLK (2D) and 21,000 SKM (3D)
Drilling 325 wells per yearProcess 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 holdingPEL Blocks : 112NELP blocks : 46ML Blocks : 265CBM 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: TodayAwards & accolades

27 #1 #20 Awards & Accolades among Global E&P companies
September 6, 2006among Global E&P companies#20The 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 CompaniesReliance- 30; IOCL- 41; NTPC- 90; BPCL- 110; HPCL-122; GAIL-156;

28 ONGC: Moody’s Credit Rating
RatingsONGC: Moody’s Credit RatingIndicative 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.

29 Awards & Accolades256th in Forbes Global 2000 list (Mar, 2006), Topper from India402nd 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 & AccoladesMoitlal 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 PSUBest 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 FutureMonetizing AssetsAssetizing MoneyStabilizing output from producing fieldsBringing New & Marginal fields into productionNew facilitiesFacility renewalValue additionNew businessAcquisitionsIntegrationClean Coal opportunitiesPower – Tripura Plant, Wind PowerRefinery – MRPL ExpansionPetrochemicals – Dahej, MangaloreSEZ - Dahej, Mangalore,CBM: production from 2007UCG: production from 2008SCG: Collaboration with Shell

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

35 Development of New and Marginal fields
Focus on FutureDevelopment 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 and 13 MMscmd gas expected

36 Focus on Future: E&P Business
Deepwater & Frontier basin thrust areasEarly monetization of new discoveriesTechnology solutions for improving Recovery FactorExpeditious development of small & marginal fieldsRefurbishment of surface facilitiesTechnology inductionDomain Experts

37 Focus on Future :Technology
Technology InductionSeismic Acquisition, Processing & InterpretationDrilling & related servicesLogging, Well Stimulation, Well ControlInfo-com applicationsFacilities & LogisticsTrust Deed for ONGC Energy Centre being executed on 8th August Four of the six Trustees are from ONGCC&MDDirector (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 TechnologyQ-Marine, GXT, Sea bed loggingSeismic Vessel - MV Sagar SamikshaMulti-component Seismic surveyEM Pulse source, Virtual DrillingRTOC ( Real time Operation Control), Air Borne Electromagnetic survey4C-4D ProjectDigital oil field monitoringDigital GeophoneAccelerated Weight DropMTEM( Multi Transient Electro Magnetic)

39 Exploration Technology required for
Focus on FutureExploration Technology required forImproving subsurface mapping through quality seismicMapping below BasaltSubsurface mapping below thrust and highly folded areaMapping of thin reservoirDrilling below thrust and tightly folded areaKnowledge ManagementDeepwater exploration techniquesReduction of Risk capital & improving success Ratio through Direct Detection of hydrocarbon

40 Domain Experts for Seismic interpretation process validation
Basin modelingPetroleum system analysisAdvance reservoir characterizationSequence stratigraphy

41 Drilling & Field Services
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)

42 Focus on Future :Technology
ProductionFPSOIntelligent well completions, segmented completionOnshore control room for offshore operationsDispersible smart plugNew generation PWC-CFUProduced water re-injectionCustody transfer meterIntelligent platform

43 Production Technology required for
Production 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-pressure reservoirsCost effective production of Natural Gas from super deep waterLight platform to cut costs & improving return specially from marginal fields.

44 Exploration and production of CBM
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 under ground coal seams.ONGC is looking for the other state and Central PSU and a foreign backup to join hands with.Coal Bed MethaneExploration and production of CBM

45 Possible Area of Co-operation
Preferential Access to the latest technology expertiseManagement process and practicesNew Areas viz. CBM, UCG, Surface Coal GasificationJoint bidding for acreages abroadRefinery and Petrochemicals

46 Collaboration

47 Collaborations: E&PCollaboration withEnte Nazionale Idrocarburi (ENI), ItalyDeepwater E&P in IndiaThird country opportunitiesTechnical cooperation

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

49 Roxar Software Solutions, Norway
Collaborations: E&PCollaboration withRoxar Software Solutions, NorwayGeosteering software for geological & drilling eventsLog forward modeling using High resolution Logs based on 3D reservoir models

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

51 Collaborations: Services
Collaboration withSINTEF, NorwayCo-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

Presentation on theme: "Investor Presentation"— Presentation transcript:

1 Investor Presentation
Oil India LimitedInvestor PresentationNovember | Strictly Private & Confidential

2 Asset and reserve overview 3. Strategic strengths 4.
Table of Contents1.Company background 2.Asset and reserve overview3.Strategic strengths4.Operating and Financial Highlights5.Growth Strategy

3 Company background 

4 Oil India: An Introduction
Rich HeritageOver 5 decades of experience in oil & gas sectorCredited with creation, operation and maintenance of a fully- automated crude oil pipelineStrong Parentage with Government of India (GoI)GoI ownership of 67.6%Awarded ‘Navratna’ status in 2010Second1 largest national oil and gas company in IndiaIntegrated and fully serviced Oil & Gas (O&G) PlayerPresence across Oil & Gas Value ChainIntegrated infrastructure and In-house expertiseDominant India and Expanding Global PresenceDomestic: 55 blocks; 86,194 sq. kmInternational: 13 blocks; 74,721 sq. kmStrong Reserve BaseTotal 2P2 reserves: 909 mmboeReserve replacement ratio of well over 100% in past 5 yearsExperienced Management TeamSenior management team with strong in-house technical expertise in our core businessConsistent Growth and Robust Balance SheetH1 FY15 Revenue: Rs. 5,555 crore PAT:1,460 croreFY14 Revenue: Rs. 11,241 crore, PAT:2,981 croreOil India is a leading O&G ‘Navratna’ Company engaged in the Exploration, Development, Production and Transportation of Crude Oil and Natural GasNote: 1.Based on total proved plus probable oil and natural gas reserves and production2.Proved plus probable reserves

5 Our vision Fastest Growing Energy Company with Highest Profitability
Delight Customers with Quality Products and Services at Competitive PricesTeam, Committed to Honesty, Integrity, Transparency and Mutual Trust creating Employee PrideFully Committed to Safety, Health and EnvironmentLearning Organization, Nurturing Initiatives, Innovations and Aspirations with Best PracticesResponsible Corporate Citizen Deeply Committed to Socio-economic Development in its Areas of Operations“The Fastest Growing Energy Company With a Global PresenceProviding Value to Stakeholders”5

6 Key HighlightsObtained International Credit Ratings : ‘Baa2’ by Moody's and BBB- by FitchMaiden Foreign Currency Bond Issue of US$ 1 billionAcquisition of gas assets in Rovuma Offshore Block in MozambiqueAcquired producing property in License 1 Block in RussiaRaised first External Commercial Borrowings of USD 250 millionAcquired 5% equity stake in IOCReceived award of ‘Platts Top 250 Global Energy Company’5

7 Shareholding Structure
GOI67.6%Others14.8%DII8.0%FII9.6%Listed on BSE / NSENumber of shares: mnKey shareholders% ShareholdingIndian Oil Corporation4.45%Bharat Petroleum Corporation2.23%Hindustan Petroleum CorporationHSBC Bank (Mauritius) Ltd.                              1.99%HDFC Standard Life Insurance Co. Ltd.1.01%Life insurance Corporation of India0.93%HDFC Trustee Co. Ltd. - Top 200 Fund0.90%HDFC Trustee Co. Ltd.- HDFC Equity Fund0.88%ICICI Prudential Life Insurance Co. Ltd.0.76%Dividend FY14Dividend/Share: Rs.21.5Share price (52 Week High / Low) : Rs.670 / Rs.438Market Cap: Rs.35,365 crore(1) Market cap as on77

8 Oil India: Milestones and Track Record
Formed as a JV with Burmah Oil CompanyParticipates first time in NELPIPO –RaisedRs.2777 crore.Listed in Stock ExchangesAwarded Navratna Status‘Baa2’ Credit Rating by Moody's and BBB-by FitchAcquisition in Rovuma Offshore Block in Mozambique and License 61 Block in Russia19591981199920092010201220132014Q) Please provide us the details of recent Contracts that has been won:Signed MoU with Beijing West Industries (ex-Delphi) for four wheelers brake system.EMM received order for Rs. 120 cr. P.a. for four wheeler rear shock absorbers from 2012Q) What is the significance of QS 9000 and ISO 9001 certificates and TS Certification ?Became wholly owned Government of India enterpriseCompletes fifty years“Company of the Year Award” by Indian Chamber of Commerce10% OFS by GoI(Rs.3,145 crore)Raised offshore FCBof US$ 1 billionOver 50 Years of Experience in the Oil & Gas Sector88

9 Strong Parentage and Experienced Management Team
Strong Parentage of GoIBest In-Class Management Team2nd Largest Public Sector E&P companySunil K. SrivastavaChairman & MDOver 37 years of experience in O&G IndustryAppointed Chairman & Managing Director in May 2012Former Director General, Directorate General of HydrocarbonsAs head of explorations in NE, he was credited with several oil & gas discoveries and setting up of state of the art G&G interpretation centerN K BharaliDirector (HR & BD)35 years of experience in O&G IndustryAppointed Director (HR & BD) in September 2010Worked in different areas relating to oil & gas production, corporate planning and HRMSatchidananda RathDirector (Operations)Appointed Director (Operations) in March, 2011Responsible for exploration, development, resource management, oil, gas and LPG production and pipeline businessR S BorahDirector (Finance)Over 29 years of experience in O&G IndustryAppointed Director (Finance) in October, 2013Experience in diverse fields of financial management, audit and strategic planningSudhakar MahapatraDirector (Expl. & Dev.)Over 33 years of experience in O&G IndustryAppointed Director (E&D) in August, 2014Experience in diverse fields exploration management under PSC/JV regimes, E&P business development processBecame a Public Sector Undertaking in 1981GoI owns 67.6% and Central Public Sector Enterprises (IOCL, BPCL & HPCL) own 8.9%2 Government nominees on the BoardAwarded ‘Navratna’ Status in 2010Status accords complete autonomy to the Company in its operations except;M&A or equity investment in a single JV / Wholly owned subsidiaryDomestic: Up to Rs.1,000 crore or 15% of net worthInternational: Up to Rs.3,000 crore or 25% of net worthAwardsForbes Global 20001,638th Rank2013BT StarBest PSUIndian Chamber of CommerceCompany of the Year2012NDTV Business Leadershipaward in Oil & Gas SectorGolden Peacock AwardCorporate GovernancePlatts Top 250 Global Energy Company Rankings’2014

10 Integrated and Diversified Oil & Gas Player
ExplorationProductionTransportationDownstreamNon ConventionalEnergyDomestic: 56 E&P blocks (including 1 CBM block)International: Presence in US, Mozambique, Bangladesh, Gabon, Libya, Nigeria, Yemen, Venezuela, Russia and MyanmarDiscoveries: 29 Small to Medium1 size discoveries during last four yearsCrude oil41 installations1,602km pipelinesNatural gas29 installations730km pipelinesAdvanced Recovery techniques to maximize productionCrude Oil1,157 km pipeline; Over 44 mmbbls capacityMulti-product660 km pipeline; MMT capacityOverseas pipeline10% stake in 741 km pipeline (Sudan)Natural Gas23% stake in 192km DNPL2 in North-eastRefining and marketing petroleum products26% equity stake in NRL35% equity stake in IOCL4Gas cracker project10% equity stake in BCPL5Wind EnergyCapacity: 67.6 MWSolar PowerCapacity: 5.23 MWShale Oil / GasAcquired 20% stake in Niobrara Liquid Shale asset in USA in October 2012UpstreamOil & GasDownstreamNote:1. Small to Medium size discoveries: Estimated proved plus probable reserves size of less than 30mn barrels of oil and oil equivalent gas.2. DNPL – Duliajan-Numaligarh Pipeline Limited.3. NRL – Numaligarh Refinery Limited.4. IOCL – Indian Oil Corporation Limited5. BCPL – Brahmaputra Cracker and Polymer LimitedFully serviced E&P Company and diversifying into non-conventional energy

11 Asset and reserve overview

12 Domestic Asset Overview
BlocksNoArea (sq. km.)NELP – Operator1218,463NELP – Non-Operator1561,296PML – Nomination214,995PEL – Nomination51,239JV / PSC2201Total5586,194ASSAM +APAA-ONN-2010/240%ASSAM +APAA-ONN-2009/450%AA-ONN-2004/2100%AA-ONN-2005/130%60%RJ-ONN-2004/230%AA-ONN-2002/3Kharsang40%75%RJ-ONN-2005/2AA-ONN-2009/350%16%AAP-ON-94/1RAJASTHANAA-ONN-2004/185%WB-ONN-2005/425%AA-ONN-2010/240%30%GK-OSN-2010/1MN-OSN-2000/220%AA-ONN-2001/315%KG-DWN-2009/115%MZ-ONN-2004/185%KG-ONN-2004/190%MB-OSN-2010/250%AA-ONN-2002/410%KG-DWN-2004/510%+KG-OSN-2009/430%NELPPML / PEL - NominationJVJoint Operator+Oil India as OperatorAN-DWN-2005/110%Strong Presence in Prospective East Coast10%KG-DWN-2004/640%AN-DWN-2009/3AN-DWN-2009/130%+CY-OSN-2009/250%AN-DWN30%AN-DWN-2009/240%Significant India Presence in Regions with Demonstrated Commercial Production or Known Accumulation of HydrocarbonsNote: NELP: New Exploration Licensing Policy, PML – Petroleum Mining Lease, PEL – Petroleum Exploration License, JV – Joint Venture, PSC – Production Sharing Contract

13 International Asset Overview
20%USColoradoJulesburg Basin60 sq.km25% (Sonatrach)LibyaArea 95/96Ghadames Basin6,629sq.km50%RussiaLicense 614,991sq. km17.5% (Suntera)NigeriaOPL 2051,295sq.km10%SudanPipeline741 km3.5%VenezuelaCarabobo 1 NorthCarabobo 1 Central203sq.km180sq.km45%(OVL)BangladeshSS-04SS-097,269sq.km7,026sq.km60%MyanmarM-04YEB10, 21,380sq.km45%GabonShakti3,761sq.kmTotal No of Blocks: 13Total Area: 74,721 sq.km12.75% (Medco)YemenBlock 821,853sq.km4% (Anadarko)MozambiqueRovuma Area-19,653sq.kmOperatorOil India’s Participating Interest (%)Area (Sq. km)Non-OperatorSolid International Footprint with Balanced Presence in Exploration Acreages & Producing Properties

14 Large and Diversified Reserve Base
Large Reserve Base with an Attractive Oil & Gas MixCrude Oil (mmbl)Natural Gas (bcm)Reserve Replacement RatioSignificant reserve base, with a track record of Reserve Replacement Ratio >1.0x

15 Downstream Operations
OIL intends to continue an active strategy of vertical integration into downstream sectors such as refining, processing, distribution and retailing, cracking and fractionation of gasThis vertical integration strategy is aimed at achieving following objectives:Diversification of revenue sourcesImproving profitability by extending operations into higher-margin segments of the product value chainRefining and MarketingGas cracker ProjectRenewable Energy/LNG projects26% equity stake in Numaligarh Refinery Limited (NRL).The other equity holders in NRL are BPCL and the Government of Assam10% equity stake in Brahmaputra cracker and Polymer Limited (Assam)Process natural gas, naphtha or any other petroleum productDistribute and market petrochemical products in India and abroadCommissioned Wind Energy Project in Rajasthan.LNG: MOU with Kakinada Seaports

16 Strategic strengths 

17 Solid Infrastructure Base with Strong In-House Capabilities
Vertically Integrated E&P Operations with Solid InfrastructureIn-House ExpertiseSeismic API (2D and 3D)DrillingWireline LoggingField DevelopmentProductionTransportationIOR/EORField/Reservoir ManagementRecovery Techniques (IOR/EOR)Drilling & Oil Field ServicesReservoir ManagementSeismic (2D,3D)Vertical IntegrationOil & Gas AssetsE&P Value ChainExplorationDiscovery & AppraisalDevelopment & ProductionInfrastructure to Support E&P ActivitiesProduction and Storage FacilitiesOne 2D and two 3D Seismic crew6 Logging Units70 Production Installations16 Work-over Rigs16 Drilling Rigs5,000km O&G Pipelines~150k KL Crude StorageIn-house Expertise and Integration across Oil & Gas InfrastructureNote: IOR/EOR stands for Improved Oil Recovery/Enhanced Oil Recovery

18 Attractive Cost Structure
OIL has the Advantage of Low Finding and Development CostsOIL's integrated oil and gas infrastructure enables the company to manage costs efficiently by optimizing manpower costs, using in- house services, adapting cost-saving technology, effectively using geological data and expertiseFinding & Development Cost (USD/BOE)Crude Oil Production Cost (USD / bbl)Natural Gas Production Cost (USD/ MMBTU)F&D cost in FY 14 includes cost of production facilities

19 Growth Focus on Key International Projects
Rovuma Basin, Offshore, MozambiqueProject 1, Carabobo, Onshore, VenezuelaIn-place gas resources up to 84 tcf and recoverable resources of tcfFirst production and revenue is expected in FY201915 development well drilled.15 wells are on production with current average total production of 8,600 boepd (OIL’s share 300 boepd)Participating Interest(4%)(26.5%)(20%)Participating Interest(3.5%)(71%)(11%)(16%)(15%)(10%)(8.5%)(11%)(3.5%)Area 95 / 96, Onshore, LibyaCarrizo Shale Asset, USADrilling of four wells has been completedResulted in light oil discoveries in one well and gas discoveries in three wells109 wells on production with average daily production of 700 bopd (Oil India’s share)Participating InterestParticipating Interest(25%)(50%)(25%)(20%)(10%)(60%)(10%)Block Shakthi, Onshore GabonLicense 61,Onshore, RussiaRecent discovery in the block marks Oil India’s first overseas discovery as a operator29 wells on production with average production is 1817 bopd.(OIL’s share 909 bopd)Participating InterestParticipating Interest(50%)(50%)(50%)(50%)Production from international assets is expected to support growth in production going forwardNote: tcf = trillion cubic feet, boepd – barrel oil equivalent per day

20 Operating and Financial Highlights

21 Crude Oil and Natural Gas Production
Crude Oil Production (mn. bbl)Natural Gas Production (mm scm)21

22 Earnings Per Share (Rs.)
Financial highlightsRevenue (Rs. crore)EBITDA (Rs. crore)Net Profit (Rs. crore)Earnings Per Share (Rs.)

23 Financial highlights Dividend Payout (% of PAT)
Book Value Per Share (Rs.)Dividend Payment (Rs. Crore)Net Worth (Rs. Crore)

24 Sharing of Subsidy and Crude Price Realisation
Rs. crore% SharingFY10FY11FY12FY13FY14H1 FY15ONGC115542489344,46549,42156,38426,841OIL154932937,35278928,7374,085GAIL132721113,18326871,9001,000Total144303029755,00060,00067,02131,926FY10FY11FY12FY13FY14H1 FY15ONGC80%82%81%84%OIL11%13%14%GAIL9%7%6%5%3%Total100%Realised Price (USD/Barrel)Gross Realized Price Realized Price after Subsidy/Discount Realized Price after levies24

25 Contribution to Exchequer
Central Government(Rs.crore)State Government(Rs.crore)

26 Growth Strategy

27 Robust Strategy in Place
Balanced growth of assetsGrow assets by acquiring exploration acreages, discovered blocks and producing properties domestically and internationallyImprove rate of recoveryImplement a number of IOR1 and EOR1 techniques to develop maturing fields and to improve the recovery of crude oil reservesAccelerate exploration and developmentInvest in exploration and appraisal activitiesMonetize natural gas resourcesFocus on early commercialization of natural gas resources through new market opportunitiesVertical IntegrationDiversify selectively into downstream sectors such as refining, petrochemicals, city gas distribution, etc.Diversify into non-conventional energyInstalled and developed wind energy, solar power and shale oil2Note: 1. IOR/EOR stands for Improved Oil Recovery/Enhanced Oil Recovery2. Oil India has participating interest in shale oil assets in USA

28 Enhanced production from IOR/EOR initiatives
Improvement in Production (mn. bbl)Investment in IOR/EOR (Rs. Crore)OIL has made investments of ~ Rs.3,300 crorein IOR/EOR initiatives during last five years28

29 Significant Investment Lined Up
Annual Plan : Rs.3,632 crorePlan Expenditure (Rs. Crore)* Plan expenditure for FY14 excludes investments in Mozambique acquisitionXII 5 year Plan: Rs.19,003 croreExploratory & Development Drilling(Rs.crore)Substantial Increase in Exploratory and Development Drilling Planned29

30 Guidance: FY’15 2014-15 (Target) Crude oil production 3.63 MMT
Natural gas production2,840 mmscm32

31 Conclusion Steady and sustained Growth Sound Financial Health
Strong operating track recordMore than 5 decades of E&P expertiseSpreading wings: NE - Pan India - GlobalLarge prospective E&P acreagePioneer in Pipeline transportationEntry into Offshore/ Deep Water BlocksEntry into discovered and producing assets. Acquisition thrust continuesDiversifying into new areas. Core Focus remains in E&P

32 Thank You

0 thoughts on “Ongc Growth Strategy Case Study Analysis Powerpoint”


Leave a Comment

Your email address will not be published. Required fields are marked *