|Second Largest Indian E&P OVL, Company Declares Impressive Results.|
04 June, 2004
ONGC Videsh Ltd. (OVL), the wholly-owned subsidiary of Oil & Natural Gas Corporation Ltd. (ONGC), produced 3.868 MMT of oil and oil-equivalent gas (O+OEG) during 03-04, (up 1435 % from 0.252 MMT (O+OEG) in 02-03). This makes OVL the second largest Exploration & Production (E&P) Company in India, next to parent ONGC, and ahead of sister PSU, Oil India Ltd. (OIL) with private sector / joint venture entities trailing behind.
The break-up of OVL’s production in 03-04 was 3.323 MMT of crude oil (up 1746 %), and 0.523 billion cubic meters (BCM) of natural gas (up 657 %), plus 0.022 MMT of condensate. OVL earned gross revenue of Rs.3502.28 Crore (up 1400 % over Rs.232.8 Crore). The profit after tax was Rs.428.53 Crore (up 626 % over Rs.58.99 Crore).
OVL was born as Hydrocarbons India Ltd. in 1965, and renamed ONGC Videsh Ltd. (OVL) in 1989. The critical importance of acquisition of overseas oil and gas equity in India’s oil security framework was recognized in the Hydrocarbon Vision 2025 document. In 2000, the Government formulated a fast-track process for review and approval of OVL’s investment proposals. Thanks to this empowerment, unstinted technological, financial and managerial support from parent ONGC, and pro-active support from the Ministry of Petroleum & Natural Gas and the Ministry of External Affairs, OVL’s fortunes blossomed from 01-02.
At the beginning of FY’ 01-02, OVL had only one property. This was a gas block in Vietnam, discovered by OVL in 1992. At the end of the financial year 03-04, OVL owns participating interest in 11 assets in 8 countries plus one more asset (12th) in another country (9th) is under acquisition. The gas property in Vietnam and the oil property in Greater Nile Oil Project, Sudan are in production. The oil and gas property in Sakhalin-I, Russia and the oil property in Block 18 at Angola (under acquisition) are under development. Discovery has already been made in the gas property at Block A, Myanmar in Jan 04. Exploration is in progress in Iran (Farsi offshore block), Iran (Block 8), Syria (Block 24), Libya (Blocks NC 188 & NC 189) and Sudan (Blocks 5A and 5B). In the Farsi offshore block in Iran, OVL has become the operator, for the first time.
During 03-04, OVL added 17.43 million barrels of O+OEG reserves. With this, the proven reserves of OVL went up to 1.453 billion barrels, which, next to ONGC, is the second largest holding of proven oil and gas reserves by any Indian Company.
OVL has so far invested nearly Rs.9690 Crore (up 29% from Rs.7507 Crore) in the overseas projects, with required funding and guarantees being proved by parent ONGC. This makes OVL the biggest Indian corporate investor abroad.
Speaking on the occasion, Shri Subir Raha, Chairman, OVL noted that a corporate strategic goal was set in July 2001 to source 20 MMT oil and oil-equivalent gas per year from overseas assets by 2020. Given the rapid growth in the past three years, it should be possible to achieve this corporate goal by 2011-12, or may be even earlier.