Investor Presentation - July 2021 - ONGC
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Investor Presentation
July 2021
1
Disclaimer
• This presentation does not provide individually tailored advice but is an effort to express views that may be considered debatable,
and may not conform to different views on the topic and does not contain any information of strategic nature emerging from the
ONGC group of Companies.
• The Company has prepared this presentation based on information available to it, including information derived from public sources
that have not been independently verified. While reasonable efforts have been made to provide reliable information through this
presentation, no representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness,
completeness or reliability of the information, opinions or conclusions expressed herein. Neither the Company nor anyone else
accepts any liability whatsoever for any loss, howsoever, arising from use or reliance on this presentation or its contents or otherwise
arising in connection therewith.
• This presentation had been prepared without regard to any pressure group, institution/ lobby on international affairs or relations and
is not meant to aim at any individual, institution, group, country, government or political representatives, its ideology, thinking or
prophesy.
• This presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the
investment objectives, financial situation or needs of any investor. The information contained herein does not purport to be all-
inclusive or to contain all of the information a prospective or existing investor may desire. All investors should conduct their own
investigation and analysis of the Company and consider such factors in consultation with a professional advisor of their choosing
when deciding if an investment is appropriate.
• This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations.
While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative
manner.
2
ONGC Group
Integrated energy company
Refinery /
Upstream VAP Power LNG Renewables
Petchem
37 MMTPA /
> 58 MMTOE 4.2 MMTPA
> 3,100 KTA 726 MW 22.5 MMTPA 325 + MW
3
Evolution of ONGC Across Energy Value Chain: Integrated Energy Company
Petro- Marketing
Exploration & Production Gas Refinery Gas
chemicals
1955- 1958- 1974-
1965 1984 2003 2004 2006 2018
59 63 76
1955 : Oil & Natural Gas Hydrocarbon India Gas Authority of India Promoted with 12.5% Acquisition of 51.11%
Directorate set up with Limited (HIL) was Limited (GAIL) formed out equity stake stake in HPCL; Indirect
scientists' pool from GSI established of ONGC Started with 5MMTPA stake in HMEL - joint
1956 : Directorate was HIL rechristened as plant at Dahej in 2004 venture between HPCL &
raised to the status of ONGC Videsh on 15 June Mittal Energy Investments
Currently operates a 17.5
Commission 1989 MMTPA LNG Maharatna CPSE and a
In October 1959, the Has grown to be Second regasification terminal at Forbes 2000 company
Commission was Largest Petroleum Dahej and 5 MMTPA 2nd largest Oil marketing
converted into a statutory Company of India regassification terminal at company, Largest Lube
body by an act of Kochi, Kerala Marketer; 2nd Largest
Parliament Marketer in LPG Sales
Diversification into Petrochemicals
Acquired majority stake in ONGC and MRPL jointly promoted OMPL
First Oil in Cambay, other MRPL and turned it
ONGC, GAIL and GSPC promoted OPaL
Discovered Mumbai High around
Oil & Gas discoveries in
and Bassein Gas field
Gujarat Major Oil Refiner in India Acquired equity stake of 29% in PMHBL
with 15 MMTPA capacity Turned it around
Consolidated holding in 2019 with ~50% stake
362.36 km Petroleum products pipeline 4
ONGC Group: Snapshot
A Maharatna CPSE Vertically Integrated – Refining & Marketing
Production
~ 2 btoe since inception ~ 36 MMTPA of refining
Capacity from HPCL & MRPL
~ 76% of domestic O+OEG - Petchem capacity of 4.2 MMTPA
from OPaL & OMPL
Holds
– Extensive Network of
~ 60% of domestic reserves
18,652 Retail Outlets
Redefining Value Chain through Petrochemicals Beyond E&P
OTPC
OPaL
– 726.6 MW Gas based
– One of the Largest Dual
Power Plant
Feed Cracker in the World
Petronet LNG
OMPL – India’s largest LNG importer
– World-class Aromatic
Petchem Complex Renewables : 325+ MW
– ONGC: 184 MW; HPCL: 134 MW; MRPL: 6MW; OMPL: 2.5MW
5
ONGC Group: Holding Structure of Portfolio Companies
Subsidiaries Joint Ventures Associates
Overseas E&P Refinery Pipeline Power
LNG
(50%)
(* 49.996%, ** HPCL: 49.996%)
Services
(100%) (54.90%) (* 71.63%, ** HPCL: 16.96%) (12.5%)
Petrochemicals Logistics
(49.98%)
SEZ
( MRPL: 100%)
(49%)
(49.36%)
* Directly; ** Indirectly through
HPCL: Hindustan Petroleum Corporation Ltd. MSEZ: Mangalore SEZ Ltd. Rohini Heliport Pvt. Ltd.
MRPL: Mangalore Refinery & Petrochemicals Ltd. DSL: Dahej SEZ Ltd. (26%) (50%)
(49%)
OPaL: ONGC Petro-additions Ltd. PLL: Petronet LNG Ltd. Pipeline
OMPL: ONGC Managlore Petrochemicals Ltd. PHL: Pawan Hans Ltd.
OTPC: ONGC Tripura Power Company Ltd.
(20%)
OTBL: ONGC TERI Biotech Ltd. 6
2020-21: A year of upheaval and challenges
Realized Crude Price ($/bbl)
80 68.19
FY21 - a challenging year for oil & gas industry in general and
70 58.61
60 50.27
55.19 upstream E&P in particular
42.78
50
40 Oil and Gas Demand plummeted in Q1 and Q2 of FY21.
30 Expected to return to pre-pandemic levels in 2022
20
10
Crude oil prices crashed with Brent below $ 20/bbl and WTI
0
FY'17 FY'18 FY'19 FY'20 FY'21 going into deep negative territory
Realized Gas Price ($/MMBTU) Economies are recovering but Peak oil demand also
4 3.46 approaching
3.21
3.5
2.78 2.69
3 Energy transition has accelerated and competition from
2.5 2.09
substitute energy sources heated up
2
1.5
1
COP21 and environment sustainability are key areas of focus
0.5 going forward
0
FY'17 FY'18 FY'19 FY'20 FY'21
7
Innovative solutions to combat, continue & grow…
Ensuring continuity and sustainability of operations for uninterrupted
availability of oil and gas to the nation
Safeguarding ‘People, Material and Resources’ through early
implementation of COVID appropriate protocols
Every employee served as an Energy Soldier and committed
beyond their mandate to ensure that organization and nation wins
Quantum leap in use of Digital Technologies for enhancing efficiency
and productivity through up-gradation of ERP, setting up Digital
Centre of Excellence, etc.
Innovative solutions like ‘Operation Nishtha’ conceptualized and
executed for crew change (~4,500) in Offshore & Onshore locations
Accelerated exploration and monetization of discoveries to upgrade
Basins and bring additional Basins under production
Significant thrusts and investments made by ONGC Group in new
energy sources like hydrogen, geothermal, solar, bio-fuels, etc.
8
ONGC Group: Resilient Performance in FY’21
2P Reserves Oil & Gas Production
• Estimated 2P O+OEG Reserves • Oil & gas production of
on PRMS basis (excluding 2C Group, including PSC-JVs
Reserves of ~553 MMTOE)
1229.56 58.39 and from overseas Assets
• ONGC : 720.57 MMTOE
MMTOE JV Share : 18.52 MMTOE MMTOE • ONGC contributed 76.7% to
India’s Oil & Gas Production
OVL : 490.47 MMTOE (including JV’s share)
Refinery Throughput Financials
• Revenue from Operations of
• HPCL & MRPL refinery ₹ 3,60,572 crore
27.92 throughputs stood at ₹3,60,572
16.42 MMT and 11.50 MMT • Profit after Tax of
MMT respectively CRORE ₹ 21,343 crore
9
ONGC: Significant Petchem Presence
Paraxylene Benzene HDPE LLDPE PP
900 350 500 600 800
800 450
700
300 500
400
700 600
250 350
600 400
In ‘000 Tons
500
300
500 200
250 300 400
400 150 200
300
300 200
150
100
200
200 100
100
50 100
100 50
0 0 0 0 0
FY'18 FY'19 FY'20 FY'21 FY'18 FY'19 FY'20 FY'21 FY'18 FY'19 FY'20 FY'21 FY'18 FY'19 FY'20 FY'21 FY'18 FY'19 FY'20 FY'21
2nd Rank 2nd Rank 3rd Rank 2nd Rank 3rd Rank
Ranking in India 10Integrated Energy Company: Strong International Credit Ratings
Transformation of ONGC from an upstream oil & gas company into an integrated
energy company:
Diversification across value chain reducing earnings volatility and increasing
financial strength
Reflected in credit ratings
ONGC and OVL’s existing USD bonds now benefit from ratings by all three major
rating agencies:
Fitch rating also initiated for existing USD Notes of ONGC/OVL/OVVL
SACP by S&P as well as Fitch: bbb+
Accorded rating and outlook constrained by sovereign credit rating (Baa3/BBB-)
Negative outlook assigned by Moody’s and Fitch reflects that of the sovereign
11Robust consolidated performance amid the pandemic
Parameter FY ’20 FY’21
(₹ Cr) (₹ Cr)
Total Income 4,34,038 3,69,895
(Revenue + Other Income)
EBITDA 61,182 58,789
PAT 11,456 21,343
Total Debt 1,16,302 1,19,061
Total Equity (includes minority interest) 2,23,510 2,42,597
Total Capitalisation 3,39,813 3,61,658
Debt / Total capitalisation 34.2% 32.9%
Debt/EBITDA 1.9X 2.0X
12ONGC - Standalone
13Oil and Natural Gas Corp Ltd (ONGC)
An integrated energy company operating along the hydrocarbon value chain
- 8th producing Basin of India (Bengal Basin) dedicated to the nation
Exploration - 10 new discoveries; 12 discoveries monetized, including 2 made during year
- Bagged 7 blocks in OALP V bidding rounds out of 11 blocks on offer
- 480 wells (100 Exploratory & 380 Development) drilled despite logistic
Drilling challenges due to pandemic
- Drilling Non Productive Time (NPT) reduced to 11.9 % from 13.2 %
FY’21 Production
- Standalone O+OEG production of 45.35 Mmtoe
- Onshore oil production increased by 3.4% during last 5 years
Highlights - Value Added Products (VAP) production of 3.12 MMT
- 3 major projects costing around ₹ 3,720 Crore completed.
Projects
- Redevelopment of Nandasan Field (Onshore): Investment approval ₹ 445 Cr
- India’s maiden Geothermal Field Development Project in Ladakh taken up
- Acquired 5% equity in Indian Gas Exchange Ltd (IGX)
Beyond E&P - MOU signed with NTPC to set up Joint Venture for Renewable Energy Business
- ONGC Board approved creation of wholly owned subsidiary for Gas & LNG business 14ONGC: Physical Performance
2P Reserves (MMTOE) Drilling (Number of wells)
ONGC migrated its reporting of reserves to PRMS w.e.f. 01.04.2019
1095.45 1136.73 516
1200.00 600 501 503 500 480
500
747.67 751.72 720.57
800.00 630.83 677.51 400
300 401 384 411 394 380
402.87 406.76 394.37
400.00 200
464.62 459.22 100
344.80 344.96 326.20 100 119 105 106 100
0
0.00
FY'17 FY'18 FY'19 FY'20 FY'21
FY'17 FY'18 FY'19 FY'20 FY'21
Exploratory Development
Oil Gas
As on 01.04.2021, Total 2P Reserves : 720.57 ; 2P CR : 447.93
Standalone Oil and Gas Production (incl. JV) Value Added Products Production
60
48.80 48.84 50.04 48.25 3,641
50
45.35 4000
3,235 3,386 3,548
3,120
3000
40
23.27 24.61 25.81 24.90 22.82
30 2000
20 1000
25.53 24.23 24.23 23.35 22.53
10
0
FY'17 FY'18 FY'19 FY'20 FY'21
0 Naptha SKO HSD LPG C2-C3 Others*
FY'17 FY'18 FY'19 FY'20 FY'21
Oil (MMT) Gas (BCM)
15ONGC : Standalone Financial Performance
Gross Revenue (₹ Crore) PAT (₹ Crore)
109,655
26,765
96,214
85,004
77,908 19,945
17,900
68,141
13,464
11,246
FY'17 FY'18 FY'19 FY'20 FY'21 FY'17 FY'18 FY'19 FY'20 FY'21
Net profit impacted due to low oil & gas prices and impairment considering future outlook on prices
16ONGC: Growth Pursuits
Intensify exploration, monetize discoveries & maximize recovery from existing fields
Aggressive Investment in Major Projects
Upstream KG-DWN-98/2 Cluster –II Development
• E&P expenditure of about ₹ 1,50,000
Development of R-Series Fields including Revival of R-12 (Ratna)
Crore in last 5 years
Cluster-8 Marginal Fields (WO 24-3, D-30 and B-192) development
Development of Madanam NELP-IV Block CY-ONN-2002/2
16 Major Projects (> ₹ 100 Crore)
under execution Mumbai High South Redevelopment Phase-IV
• 10 Development & 6 Infrastructure Mumbai High North Redevelopment Phase-IV
Projects: Investment of ~ ₹ 61,000 Cr
Heera Re-development Phase-III
• Envisaged lifecycle Gain of 112 Redevelopment of Nandasan Field
MMTOE
Redevelopment of Santhal Field
17ONGC: Short Term Action Plan
Oil Production Projections Gas Production Projections
30 40
25.26 27.06 27.35 35.76
35 33.46 34.35
24.01 23.35
25 22.33
22.81 32.16
30 27.36
20.41
24.79
20 26.37
25 23.90
15 20
in BCM
15
in MMT
10
10
5
5
0 0
FY'22 FY'23 FY'24 FY'25 FY'22 FY'23 FY'24 FY'25
JV$ Production (ONGC Share) JV$ Production (ONGC Share)
Quoted Incremental profiles in 6 CA under 64 MNF Quoted Incremental profiles in 6 CA under 64 MNF
Through Additional PS Conversion*, Contingent Resources to Reserves conversion* & New Discoveries Through Additional PS Conversion*, Contingent Resources to Reserves conversion* & New Discoveries
With Additional Inputs With Additional Inputs
Oil- Upside# Gas-Upside#
Oil- Firm Gas- Firm
Oil- Base Gas-Base
#Upside includes Concept-1, Concept-2, Indicative & YTF * Additional resources & CAPEX will be expended based on the feasibility of early exploitation $ JV figure as provided by operator/ DGH 18Subsidiaries & Joint Ventures
19ONGC Videsh
Presence across 35 projects in 15 countries*
Exploration: 14 Development: 4 Producing: 14 Pipeline: 3
CIS & Russia
Azerba 1 1
ijan
Africa
Russia 3
Libya 1
South East Asia
South Sudan 2 Vietnam 1 1
Myanmar 2 2 2
Mozambique 1
Bangladesh 2
Latin America
Venezuela 1 1 Middle East
Syria 1 1
Colombia 6 1
Iraq 1
Brazil 1 1
Iran 1
UAE 1
*As on 01.04.21 20ONGC Videsh: Performance
2P Reserves (MMTOE) Oil and Gas Production
711 676 14.83 14.98
587 14.16 13.04
490*
378.75 335.36 4.81 4.73 5.23
347.915 4.53
300.01
332.61 340.36 10.10 9.75
238.99 190.46 9.35 8.51
FY'18 FY'19 FY'20 FY'21
FY'18 FY'19 FY'20 FY'21
Oil (MMT) Gas (BCM)
* PRMS adopted from FY’21; 2P-490, 2C 105 Oil (MMT) Gas (BCM)
Turnover (₹ Crore) PAT (₹ Crore)
1,891
14,632 15,498 1,682
11,956
10,418
981
454
FY'18 FY'19 FY'20 FY'21
FY'18 FY'19 FY'20 FY'21
21ONGC Videsh: FY’21 Highlights
Continued with Drill-bit success in exploratory project CPO-5 in Colombia; producing
@13,000 bopd in FY 21; planning for further exploratory and appraisal drilling
31 BD opportunities evaluated / under evaluation distributed evenly across the three
broad geographies of Americas, AFME and CIS-AP
Overall borrowing of ONGC Videsh Group reduced by USD 272 million through
internal accruals: USD 75 Million by Company and Prepayment of USD 196.71 million
22Hindustan Petroleum Corporation Ltd. (HPCL)
A Maharatna Schedule “A” CPSE
Ambitious plans for expansion and diversification
in tandem with increasing energy demand, technological upgradation and environment management
• 18,634 retail outlets, # 1 Lube Marketer & # 2 LPG marketer of India
• Share Buy-back program successfully completed; 10.52 Crore
Equity Shares bought back utilizing ₹ 2954 Crore
• Acquired balance 50% stake of M/s SP Ports Pvt. Ltd. in JV
Company HPCL Shapoorji Energy Pvt Ltd ( HSEPL). Construction
work for Chhara LNG regasification terminal in full swing
• Commissioned 2,158 new retail outlets, highest ever in a year, 112
new LPG distributorships, CNG dispensing facilities at 203 retail
outlets, EV Charging facilities: 84 and Mobile Dispensers: 387
• 44 patents for new products/ technologies developed
• 51st LPG bottling plant at Rayagada in Odisha with 60 TMTPA
capacity commissioned. augmented capacity by ~ 270 TMTPA at
other plants
23HPCL: Performance
Throughput (MMT) GRM ($/BBL)
18.44 17.18 5.01
16.42
3.86
1.02
FY'19 FY'20 FY'21 FY'19 FY'20 FY'21
Gross Sales (₹ Crore) PAT (₹ Crore)
10,664
295,713 286,250
269,243
6,029
38.7 MMT 39.6 MMT 36.6 MMT
2,637
FY'19 FY'20 FY'21 FY'19 FY'20 FY'21
24HPCL: Growth Pursuits
Chartering growth for stakeholders
Major projects in progress:
• Visakh Refinery Modernization Project (VRMP)
• Mumbai Refinery Expansion Project (MREP)
• Wind Power Project under Phase – II
• VVSPL Capacity Expansion and OSTT-SS Jetty Sub-sea Pipeline Project
• MDPL Capacity Expansion & Palanpur Vadodara Pipeline Extension Project
• Greenfield Refinery cum Petrochemical Complex at Pachpadra, Barmer District,
Rajasthan (9 MMTPA capacity) through a joint venture company, HPCL Rajasthan
Refinery Limited (HRRL)
• 5 LPG Bottling Plants
• CGD Network and LNG Regasification Terminal
25Mangalore Refinery & Petrochemicals Ltd. (MRPL)
A Category 1 Miniratna CPSE
• Acquired shares in OMPL held by ONGC, thereby
making OMPL, a wholly owned subsidiary of MRPL
• Board has approved the merger of MRPL and OMPL
• 11 new Retail Outlets commissioned. With this,
MRPL has 18 operating outlets
• Implementation of the project to set up marketing
terminal in Devangounti (near Bengaluru) is
underway
26MRPL: Performance
Throughput (MMT) GRM ($/BBL)
16.43 4.06
14.14 3.71
11.50
-0.23
FY'19 FY'20 FY'21
FY'19 FY'20 FY'21
Gross Sales (₹ Crore) PAT (₹ Crore)
72,315 332
60,752
51,019 FY'19 FY'20 FY'21
-240
FY'19 FY'20 FY'21 -2,740
27MRPL: Growth Pursuits
Major projects
Multiple New initiatives to improve
revenue from marketing margins 1. BS VI quality specifications for MS and HSD: Includes new
units - FGTU (FCC Gasoline Treatment Unit) and SRU (Sulphur
Recovery Unit) and its associated offsite and utilities
2. Desalination Plant of 30 MLD: To reduce dependence on river
water
• Domestic sales of petroleum
products increased by entering into
3. Railway Siding: Dispatch of Petcoke by Railway Wagons
new agreements with OMCs
• To capture retail margins, MRPL is
4. CCR-1 Revamp
focused on setting up and
expediting own retail outlets
6. Natural Gas conversion in Gas Turbine-1
28ONGC Mangalore Petrochemicals Ltd. (OMPL)
Aromatic Petrochemical Complex producing Paraxylene & Benzene
• Now a wholly owned subsidiary of MRPL
• Overall capacity utilisation for FY’21 was 63%.
• New intermediate product of 152 KT Reformate added to
revenue
• Commenced sale of Benzene in the domestic market since
Oct 2020 through gantry loading facility
• Commissioned energy savings scheme of 850kW through
conversion of motor driven Boiler Feed Water (BFW) Pump
to Turbine driven BFW Pump
• Commissioned Natural Gas facility in Feb 2021 replacing
HSD in both gas Turbines and all liquid fuels in the Complex
29ONGC Petro Additions Ltd. (OPaL)
A Joint venture with GAIL & GSPC
1.1 MMTPA Feedstock integration project of ONGC
(Utilizing C2, C3 and C4 gas feed and Naphtha produced by ONGC)
Q4-FY’21 PAT : ₹ 274.1 Crore ; Strong performance continues in FY’22
• Overall capacity utilisation during FY’21 was 89.5%.
• Introduced PP Fibre & Filament grade "OPaLene RH38"
for mask/PPE kits application during the beginning of
the pandemic
• Commissioned Hydrogen generation unit
• Sold 1.82 Million tons of Polymers and Chemicals
• Revenue from Operation: ₹ 11,486 Crore
One of the Largest Dual Feed Crackers in the world
30ONGC Tripura Power Company Ltd. (OTPC)
A Joint venture with Govt. of Tripura
726.6 MW (363.3x2) Combined Cycle Gas Turbine (CCGT) Thermal Power Plant
• 5,090 Million Units of power generated
• Plant Availability Factor at 81%
• Revenue from Operation: ₹ 1,646 Crore; PAT: ₹ 221 crore
• Major Job of GTG rotor replacement carried out on Unit-
2 through planned shutdown from 16th Mar-22nd Apr 2021
• Major inspection of Unit -1 in progress
Only dividend paying standalone gas based power generation company in India
31Petronet MHB Limited (PMHBL)
Mangalore – Hassan – Bengaluru JV pipeline (362.3 Km) transporting products from MRPL to OMCs hinterland of
Karnataka in cost effective and environment friendly manner.
FY’21 performance:
Throughput 2.139 MMTPA
Revenue: ₹ 111 Crore
PAT: ₹ 52 Crore
32Indradhanush Gas Grid Limited (IGGL)
A Joint venture with IOCL, GAIL, OIL & NRL :-Shareholding: ONGC-20%; IOCL-20%; GAIL-20%; OIL-20%; NRL-20%
Indradhanush Gas Grid Limited (IGGL) was incorporated on
10th August 2018
IGGL is implementing prestigious Northeast Gas Grid
(NEGG), an approx. 1,656 Km long natural gas pipeline grid
spanning across all North-Eastern states, at an estimated cost
of INR 9,265 crores
CCEA, chaired by Hon’ble Prime Minister, has approved VGF/
Capital Grant of INR 5,559 Crore for NEGG project
The gas grid is planned to connect from upcoming Barauni-
Guwahati natural gas pipeline as part of Urja-Ganga scheme
3-phase implementation with expected completion by 2024:
Phase-1: 647 kms (in 5 sections)
Phase-2: 621 kms (in 7 sections)
Phase-3: 304 kmd (in 2 sections)
Physical progress of project is ~18%
33Long Term Growth Strategy
34ONGC Portfolio - 2040
As laid out in ONGC Energy Strategy 2040
Upstream Production 2x; refining capacity 3x; renewable 10 GW and $1B corpus for new
frontier opportunities
ONGC
Upstream: Upstream: Downstream &
Domestic International Petrochemicals
Renewables
Vision
New Frontiers
Production
(mmtoe/year)
Production
(mmtoe/year)
Refining Capacity
(MMTPA / year)
Capacity (GW)
2040 Venture fund
corpus ($M)
80 45
70 40 120 12 1200
70 1000
40 100 10
100 10 1000
60 35
50
50 30 80 8 800
40 25
60 6 600
20
30 15
15 40 35 4 400
20
10
10 20 2 200
5
0.2 16
0 0 0 0 0
2019 2040 2019 2040 2019 2040 2019 2040 2019 2040
35ONGC: ESG Journey
Sustainable Development – The overarching working template in ONGC
Pillars of Sustainability in ONGC
• Dedicated Carbon
Management & Sustainability
Group at Corporate level with
designated Sustainable
Development Officers at work
centres to drive sustainability
across the organization
• GRI based, Independently
assured Sustainability Report
being published since FY’10
36ONGC: ESG Practices
Commitment towards Climate, Society and Ethical work practices
ENVIRONMENT SOCIAL GOVERNANCE
Committed for conserving Climate Committed to Social welfare & inclusion Committed to Integrity and ethical practices
• Regular Greenhouse Gas (GHG) inventory • One of the first companies to issue • 1st signatory in India to the Integrity Pact
accounting and disclosures on scope-1 separate CSR Guidelines in 2009 which
and scope-2 emissions; Implemented large prepared base for DPE Guidelines in 2010 • IT enabled with SAP integration in most
number of GHG mitigation projects across & Companies Act 2013 functions, including e-procurement,
the value chain for GHG abatement intranet, paperless office etc; thus,
• CSR activities aligned with needs of minimizing human intervention
• Implemented 15 Clean Development community in respective geographies:
Mechanism (CDM) Projects including Initiatives implemented in project mode. • The Board not only institutionalizes, and
OTPC: 2.2 million Certified Emission reviews polices, but also focuses on
Reductions with OTPC having emission • CSR programs mainly in areas of overall organizational practices, awareness
reduction potential of 16 lakh ton CO2e per Healthcare, Education, Environment, creation and monitoring.
annum. 3 new projects under validation. Women Empowerment and Heritage
preservation • Strong and effective Whistle Blower
• Renewable energy projects, Installation of
mechanism, Dedicated Vigilance
energy efficient lighting, Paperless office
• Every CSR project is Benchmarked to UN Department headed by CVO, who holds
and elimination of single use plastics
Sustainable Development Goals (SDGs). rank of Functional Director and reports to
CVC, Government of India
• Fresh water conservation: Water
Footprinting, Rainwater Harvesting, • CSR spend of ~ ₹ 500 Crore per year
Sewage Treatment Plants & Desalination
37ESG: Other Ongoing Initiatives
Global Methane Initiative (GMI):
• Global Methane Initiative (GMI) is an action-oriented initiative from United States Environmental Protection Agency (US-
EPA). ONGC was first non-American Oil & Gas company to enter into MoU. Under this program, fugitive methane
emissions are identified through Hi-tech IR Camera and corrective actions taken to repair leakages/emissions. Till date
could prevent approximately 20.48 MMSCM of methane gas leakages into atmosphere with environmental benefit of
approximately 3,06,250 ton CO2 Equivalent (TCO2e)
Introduction of Dynamic Gas Blending technology in large Diesel Engines:
• The results shows that it replaced HSD consumption up to 50%, fuel cost up to 70% and reduced SO2, NO2 and PM
emissions by 49%, 28% and 78% respectively, apart from Carbon Emissions
Introduction of Micro Turbine technology for power generation at remote locations of ONGC:
• Micro-turbines are small gas turbines of capacity from 25 KW to 500 KW, used for stationary power generation. These
use low pressure gas, for power generation, which would otherwise be flared
Carbon Capture, Utilisation and Storage (CCUS) for CO2 Sequestration:
• ONGC signed an MoU with IOCL for a proposed CCSU project. Under this MOU, it is proposed to capture CO2 from the
IOCL’s Koyali refinery and inject into specially prepared well(s) in depleted oil fields of ONGC in Gandhar, Ankleshwar
Asset for Enhanced Oil Recovery from depleted fields. The project has the potential for oil gain of 10% and the estimated
cumulative sequestrated quantity is 5 to 6 million ton of CO2 by the year 2040
38ESG : Status & Work Plan
Reducing Carbon Footprints and planning for Greener Future
• Verification of Scope-1 & Scope-2 emissions
through Independent Assurer
0.234
• Accounting of Scope-3 emissions and strategies
for Net Zero emission
• Launching of Integrated Report of ONGC in place
(TCO2e/Ton of O+OEG)
Emission Intensity
of Annual Report from FY’22 onwards
0.230
• Business Responsibility & Sustainability Report
(BR&SR) from FY’22 as per revised guidelines
0.228
• Engaging leading ESG Rating agency
• Formulation of Human Rights Policy in line with UN
Principles of Human Rights
2018-19 2019-20 2020-21
• Greening of Vendor Chain
~ 12% Cut in Emission Intensity since 2015-16 • GRI based ESG report introduced from FY’20
39ONGC: Catalysing SDG Initiatives in India
Global Compact Network India (GCNI), under the
aegis of UNGC and leadership of ONGC, has
emerged as the largest corporate sustainability
initiative in the country with a pan-India
membership of over 500 leading business and
non-business entities
CMD-ONGC as President of GCNI is catalysing a
huge movement across the country for taking the
UN Agenda on SDGs forward, by way of
businesses embracing the Ten Principles into
their strategies, policies, procedures and
establishing a culture of integrity
GCNI engaging with sister United Nations (UN)
agencies, and locally at country-level within the
government, the corporates, NGOs, civil societies
& the academia - providing guidance to put their
sustainability commitments into action, manage
ESG reporting and thus creating long-term value
40ONGC Group: Transitioning to Clean Energy…
Setting up of wholly owned subsidiary for Gas Business approved by
ONGC Board
ONGC acquired 5% equity in Indian Gas Exchange Ltd (IGX)
HPCL expands CGD business to 20 GAs in 34 districts across 9 states
HPCL has 84 EV Charging Stations. Plans to setup pan-India network of
public EV charging points at retail outlets
41A Responsible Corporate
42Response to COVID-19
Proactive all-inclusive response to protect People-Material-Resources and ensure continuity of oil and gas production for nation
Multi-layered, complex and evolving challenges on a daily basis –
a situation that is unprecedented for our times
ONGC RESPONSE
43COVID-19: Contribution towards Society
ONGC donated ₹ 300 crore to PM CARES Fund & voluntary employee contribution ~ ₹ 30 crore
CSR initiatives worth ₹ 30 Crore in FY 2020-21 and ₹ 50 Crore in FY 2021-22 for the benefit of 45
lakh people in the operational areas
Funding for Covid care Centres, creation of ICU beds, ventilators, Distribution of Food / Ration
kits / Masks / PPE kits / Sanitizers
Procurement of one lakh oxygen concentrators on behalf of Government of India out of PM
Cares Fund of ₹ 500 Cr
Procurement of 10,000 oxygen concentrators worth ₹ 65 Cr out of CSR funds of Oil PSEs.
ONGC’s contribution for 2,000 oxygen concentrators worth ₹ 13 Cr.
Medical grade oxygen generation plants in 11 government hospitals in 4 states of India at a cost
of ₹ 15.69 Cr
Provisioning of 6,000 oxygen cylinders worth ₹ 10.86 Cr
Vaccination camps at various work locations across the country for employees and secondary
workforce; Supported COVID vaccine logistics supply chain equipment in Tripura, Nagaland, Gujarat
and Uttarakhand
Setting up COVID Centers and support for conversion of oxygenated beds to ICU beds
44
44Corporate Social Responsibility
A leader in CSR Spending
CSR Expenditure ~ ₹ 500 Crore every year
CSR Spend (₹ Crore)
700
615 607
553
526 503
525
350
ONGC promotes healthcare, preventive 175
healthcare, education & skill development,
women empowerment& reducing inequality ,
environment sustainability initiatives 0
FY'17 FY'18 FY'19 FY'20 FY'21
Includes ₹ 14 crores carried forward in FY’21 45Rankings & Awards
National and International Recognitions
#11 in Platts Top 250 # 190 globally and # 665 globally and #377 in Forbes Worlds, Certified as a Great Place
Global Energy Company # 3 in India in Fortune # 13 in India in Forbes Best Employers List 2020 to Work for the second
Rankings 2020 Global 500 List 2020 Global 2000 list 2021 time in 2021
FIPI Oil & Gas – Best Project Management Company of the Year 2020
PCRA- Best Overall Performance for Upstream Sector -2020
46Thank You
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