Financial results of ONGC Videsh Ltd, the wholly-owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), for the year ended March 31, 2018 were considered and approved by the Board in its meeting held on May 23, 2018. The performance highlights are as under:

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Consolidated Production of Crude Oil and Oil Equivalent Gas during FY’18 was higher by 11% as compared to previous year. The incremental production was mainly from Vankorneft & Sakhalin-1 projects, Russia; BC-10 project, Brazil; an Exploratory Block CPO-5, Colombia and due to acquisition of 4% stake in the Lower Zakum Concession project in UAE during the year.

The Company recorded its standalone profit of ₹ 411 crore during the FY’18 against the profit of ₹ 1,749 crore during the previous financial year and the consolidated profit of ₹ 981 crore during FY’18 against consolidated profit of ₹ 757 crore during FY’17.

The Board of Directors has proposed a final dividend of ₹ 2.00 per share for the year ended March 31, 2018 (previous year: ₹ 1.40 per share) excluding dividend distribution tax to be paid on fully paid equity share of par value of ₹ 100 each. This dividend is subject to approval by the shareholders at the forthcoming Annual General Meeting.

A. New Acquisitions and Alliances

• ONGC Videsh Vankorneft Pte Ltd (OVVL), a wholly-owned indirect subsidiary of ONGC Videsh, has completed the acquisition of 30% Participating Interest in Namibia Petroleum Exploration License 0037 on October 3, 2017 for Blocks 2112A, 2012B and 2113B and related agreements (License), Offshore Namibia from Tullow Namibia Limited (Tullow), a wholly owned subsidiary of Tullow Oil plc. Tullow with its remaining 35% Participating interest shall continue to be the operator of the License. Pancontinental Namibia (Pty) Limited with 30% Participating interest and Paragon Oil and Gas (Pty) Limited with 5% Participating interest are other partners in the License.

• ONGC Videsh led Indian Consortium comprising of ONGC Videsh, Indian Oil Corporation Limited and Bharat Petro Resources Limited acquired 10% Stake in Lower Zakum Concession, Offshore Abu Dhabi. The Concession was awarded by the Supreme Petroleum Council (SPC), on behalf of the Abu Dhabi government, to the Abu Dhabi National Oil Company (ADNOC) and it is the first time that Indian oil and gas companies have been given a stake in the development of Abu Dhabi’s hydrocarbon resources. The Concession, which has a term of 40 years with an effective date of March 9, 2018 was signed by Shri Shashi Shanker, Chairman, ONGC Group of companies on February 10, 2018 at Abu Dhabi. The 10% PI is through the indirect subsidiary FOGBV incorporated in Netherlands on February 6, 2018 with ONGC Nile Ganga BV, subsidiary of ONGC Videsh, holding 40% shares in FOGBV and both Indian Oil Corporation Limited (IOCL) and Bharat Petro Resources Limited (BPRL) holding 30% each, through their respective Dutch subsidiaries. The production from the field is around 419,000 bopd and the share of production to FOGBV is around 42,000 bopd and ONGC Videsh share is around 16,800 bopd.

• An Exploration Block in Israel with License 412/“32” has been awarded by Petroleum Commissioner to Indian Consortium on March 27, 2018 for exploration duration of 3 years. ONGC Videsh is the operator and each Partner of the Indian Consortium, i.e. ONGC Videsh, Bharat Petro Resources Limited (BPRL), Indian Oil Corporation Limited (IOCL) and Oil India Limited (OIL) hold 25% Participating Interest (PI) each in the License.

B. Explorations and Operations

• CPO-5, Colombia
The well Mariposa-1 was drilled to a total depth of 11,556 feet (MD) and log analysis indicated the presence of approximately 121ft of oil saturated net pay in the Lower Sands Unit. The well is currently under testing and activated on self. The well flowed light oil of 40.7 API @ 4523 bopd through 32/64” choke with 0.3% BS&W and gas @ 1,01,260 scfd. The discovery has opened up new play in CPO-5 block. More wells are likely to be drilled for the play.

• Sakhalin-1, Russia
o 30 years extension to the Production Sharing Agreement (PSA) of Sakhalin-1 block has been granted from 2021 to 2051.
o Completed World’s Longest Extended Reach Drilling (ERD) well #O5RD with measured depth of 15,000 m on June 30, 2017.

• ACG, Azerbaijan
Consortium partners of the giant ACG Fields in Azerbaijan have entered into an agreement with Azerbaijan Government and State Oil Company of the Azerbaijan Republic (SOCAR) for extension of duration of the Production Sharing Agreement (PSA) for Azeri-Chirag-Deep water portion of Gunashli (ACG) oil fields until December 31, 2049.

• Rovuma Area-1 Project, Mozambique
Government of Mozambique has accorded approval for the Development Plan for Golfinho-Atum natural gas field in the Area 1 block located in the Rovuma Offshore Basin of Mozambique. The plan outlines the integrated development of the Golfinho-Atum field through an initial two-train onshore liquefaction plant with a total processing capacity of 12.88 MMTPA. The approval of the Development Plan is the culmination of several years of progress on technical and commercial aspects of the development. The Golfinho-Atum Project will also supply initial volumes of approximately 100 million cubic feet of natural gas per day for domestic sales for Mozambique’s industrial development which will have significant socio-economic impact.

C. Awards

During the year ended March 31, 2018, following awards and recognitions were conferred upon ONGC Videsh:
o The President of India conferred the prestigious SCOPE award for Excellence and Outstanding Contribution to the Public Sector Management – Institutional Category II (Miniratna-I & II PSEs) for 2014-15 on April 11, 2017.

o Golden Peacock Award for Risk Management 2017 instituted by the Institute of Directors (IOD) during Global Convention on Corporate Ethics & Risk Management.
o The ICICI Lombard & CNBC-TV18 India Risk Management Award in the category of “Best Risk Management Framework & Systems – Risk Technology”.
o Strategic Performance Award in Miniratna-I category at the 5th edition of Governance Now PSU Awards-2017.

D. About ONGC Videsh

ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India, and is India’s largest international oil and gas Company. ONGC Videsh has participation in 41 projects in 20 countries namely Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Israel, Iran, Kazakhstan, Libya, Mozambique, Myanmar, Namibia, Russia, South Sudan, Sudan, Syria, United Arab Emirates, Venezuela, Vietnam and New Zealand. ONGC Videsh maintains a balanced portfolio of 15 producing, 4 discovered/under development, 18 exploratory and 4 pipeline projects. The Company currently operates/ jointly operates 21 projects. ONGC Videsh had total oil and gas reserves (2P) of about 711 MMTOE as on April 1, 2018. For more information visit:  www.ongcvidesh.com.

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Business Partners’ Meet 2018 of ONGC Videsh

The maiden Business Partners’ Meet of ONGC Videsh organized recently was a stupendous success.  The day-long meet provided a platform to the representatives of Indian and foreign vendors to deliberate and discuss their issues and put forth valuable suggestions. The meet was chaired by Mr P.K. Rao, Director (Operations), ONGC Videsh.

Mr C.M. Jain, ED- Head Business Development, Mr Sukant Tiwari, ED- RP Venezuela, Regional Presidents, Project teams and other user departments along with Business Partners from India and overseas attended the meet.

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In his inaugural address, Mr P.K. Rao, Director (Operations) expressed confidence that the meet would help the Business Partners to look for overseas business opportunities. Mr Rao emphasized upon all the Indian Business Partners to come forward and avail the opportunity of participating in tenders invited for overseas projects of ONGC Videsh to strengthen the ‘Make in India’ campaign of the Govt. of India. Mr Rao assured of all possible help and guidance from ONGC Videsh in this regard.

The Commercial team led by Mr D. P. Bagria, Head-Commercial conducted sessions on the current and future business activities, procurement procedures being followed in ONGC Videsh for its Indian office, business development and overseas projects.

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There were sessions focusing on Micro & Small Enterprises, Government e-Marketplace and E-procurement on Central Public Procurement Portal (CPPP). The key procurement initiatives of ONGC Videsh and the tender related general observations for the benefit of Business Partners were also presented.

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ONGC Videsh Limited (ONGC Videsh)- a wholly owned subsidiary of ONGC, the National Oil Company of India, announces that the Government of Mozambique has accorded approval for the Development Plan for Golfinho-Atum natural gas field in the Area 1 block located in the Rovuma Offshore Basin of Mozambique. The plan outlines the integrated development of the Golfinho-Atum field through an initial two-train onshore liquefaction plant with a total processing capacity of 12.88 MMTPA. The approval of the Development Plan is the culmination of several years of progress on technical and commercial aspects of the development.The Golfinho-Atum Project will also supply initial volumes of approximately 100 million cubic feet of natural gas per day for domestic sales for Mozambique’s industrial development which will have significant socio-economic impact.

This foundational project paves the way for significant future expansion of up to 50 MMTPA from Offshore Area 1. The Area 1 block located in the deep-water Rovuma Basin offshore Mozambique is one of the largest gas discoveries in offshore East Africa with estimated recoverable resources of approximately 75 trillion cubic feet.

ONGC Videsh holds 16% net interest in the Mozambique Rovuma Area-1 Offshore Project out of which 10% PI is held directly by ONGC Videsh and another 6% interest is held through its 60% shareholding in ‘Beas Rovuma Energy Mozambique Limited’ (“BREML”) while the remaining 40% shares in BREML are held by Oil India Limited (“OIL”). Anadarko Petroleum Corporation is the Operator of the project with 26.5% PI and the other partners in the project are Mitsui (20%), ENH (15%), BPRL (10%) and PTTEP (8.5%).

With the approval of major legal and contractual framework agreements and the start of resettlement implementation activities & site preparation, the approval of the development plan is a significant milestone in the further progress of the Mozambique Rovuma Area-1 Offshore Project towards achieving FID.

About ONGC Videsh
ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India, and is the largest international oil and gas E&P Company of India. At present, ONGC Videsh has 39 projects in 18 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Russia, South Sudan, Sudan, Venezuela, Vietnam and New Zealand. ONGC Videsh is currently producing about 267,000 barrels of oil and oil equivalent gas per day and has total oil and gas reserves (2P) of about 704 MMTOE as on 1st April 2017. For more information visit: http://www.ongcvidesh.com.

About ONGC
ONGC is a major integrated National Oil and Gas Company of India and is India’s largest producer of crude oil and natural gas, contributing around 70 percent of Indian domestic production. During the financial year ended 31st March 2017, ONGC Group had produced 61.60 MMT of oil and oil equivalent gas (MMTOE) (approx. 1.23 MMboe per day); the Consolidated Gross Turnover was INR 1,421 billion (US$ 21 billion) during FY’17 and total consolidated oil and gas reserves were 1,818 MMTOE as on 31st March 2017. For more information visit: http://www.ongcindia.com

Disclaimer:
The information, statements, forecasts, and projections contained herein reflect the Company’s current views based on reasonable assumptions. No assurance, however, can be given on the future events and projections. A number of factors can cause actual results to differ materially from those envisaged.

ONGC Videsh led Indian Consortium has been awarded 10% Stake in Lower Zakum Concession, Offshore Abu Dhabi. The Concession award by the Supreme Petroleum Council (SPC), on behalf of the Abu Dhabi government, to the Abu Dhabi National Oil Company (ADNOC) and the Indian Consortium, is the first time that Indian oil and gas companies have been given a stake in the development of Abu Dhabi’s hydrocarbon resources. The Indian Consortium comprising of Indian Petroleum Sector Public Enterprises is led by ONGC’s international arm ONGC Videsh and includes Indian Oil Corporation Limited and the international arm of Bharat Petroleum Corporation Limited (Bharat PetroResources Limited). The Indian Consortium would contribute a sign-up bonus of USD 600 million to enter the concession for a 10% stake.

The Concession, which has a term of 40 years with an effective date of 9th March 2018, was signed by Shri Shashi Shanker, Chairman, ONGC Group of companies and His Excellency Dr Sultan Ahmed Al Jaber, ADNOC Group Chief Executive Officer, and member of Abu Dhabi’s Supreme Petroleum Council in the presence of Honourable Prime Minister of India Shri Narendra Modi and His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces. ADNOC is finalizing the potential partners for the remaining 30% of the available 40% stake in the Lower Zakum Concession earmarked for international oil and gas companies.

The current production of this field is about 400,000 bopd and Indian Consortium annual share shall be about 2 MMT. The field profile is to set to achieve plateau target of 450,000 bopd by 2025.

Commenting on the Concession award, Shri Shashi Shanker said: “We are delighted to partner with ADNOC in this important offshore concession. We are hopeful that this historic agreement will lead to further opportunities for Indian oil and gas companies to participate in the UAE’s energy sector. The agreement reflects the vision of the Honourable Prime Minister of India towards strengthening hydrocarbon linkages with the UAE on a win-win basis.”

H.E. Dr Al Jaber said: “Our strategic partnership with ONGC, and the other members of the Consortium, marks a new chapter in the strategic economic relationship between the UAE and India. This mutually beneficial partnership will create opportunities for ADNOC to increase its market share, in the fast-growing Indian market. By delivering high quality crude to India’s expanding refining industry, it will help India meet its growing energy demand.

“This agreement supports ADNOC’s strategy to maximise economic value and recovery from its offshore oil and gas resources. This is an attractive and strategic agreement for both parties that will deliver competitive returns and long term growth opportunities.”

The present transaction marks entry of ONGC Videsh in highly prospective UAE region and is consistent with its stated strategic objective of adding high quality producing assets to its existing E&P portfolio.

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About ONGC Videsh
ONGC Videsh is a wholly owned subsidiary and International arm of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India, and is India’s largest international oil and gas E&P Company. At present, ONGC Videsh has 39 projects in 18 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Russia, South Sudan, Sudan, Namibia, Venezuela, Vietnam and New Zealand. ONGC Videsh is currently producing about 277,000 barrels of oil and oil equivalent gas per day and has total oil and gas reserves (2P) of about 704 MMTOE as on 1st April, 2017. For more information visit: http://www.ongcvidesh.com

About ONGC
ONGC’s market capitalization as on 9th February 2018 was INR 2404 billion (US$ 37.35 billion). During the financial year ended 31st March, 2017, ONGC Group had produced 61.60 MMT of oil and oil equivalent gas (MMTOE) (approx. 1.23 MMboe per day); the Consolidated Gross Turnover was INR 1,421 billion (US$ 21 billion) during FY’17 and total consolidated oil and gas reserves were 1,818 MMTOE as on 31st March 2017. For more information visit: http://www.ongcindia.com

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ONGC Videsh receives Golden Peacock Award for Risk Management

ONGC Videsh received Golden Peacock Award for Risk Management 2017 instituted by the Institute of Directors (IOD) on 14th December 2017 during Global Convention on Corporate Ethics & Risk Management held at Singapore.

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(Executive Committee with Risk management team during Award trophy and Citation handover)

A presentation on the Enterprise Risk Management system at ONGC Videsh bringing out its major initiatives and distinguished features was presented in the Global Convention at Singapore by Mr. Arun Mittal, Head – Risk.

Mr. Narendra Kumar Verma, Managing Director, while complimenting Team ONGC Videsh on this achievement, exhorted to keep momentum and achieve greater heights in risk management and sustainability practices, leading to improved organizational performance.

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(Mr. Arun Mittal receiving award from H.E. Jawed Ashraf, High Commissioner of India to Singapore on 14th December 2017)

Enterprise Risk Management system was established in ONGC Videsh in April 2012 with in-house efforts and was further aligned with ISO 31000:2009, an international standard on Risk Management. The system has matured over the years and well integrated into business processes of the company. It is underpinned by a set of principles and includes the exercise of identification, assessment and prioritization of risks followed by coordinated application of resources to monitor, control and minimize the probability and impact of unexpected events.

The receipt of award is a recognition that ONGC Videsh has taken significant initiatives in Enterprise Risk Management to enhance its governance and sustainability practices.