I write this message at the onset of a new year, with new hopes that we have left behind a once-a-lifetime viral pandemic and things will move towards normalcy as we progress in the 2021. The oil & gas industry has been an underperformer for the second half of the decade and the unprecedented social and economic upheavals caused by the pandemic, just epitomizes the seriousness of the situation for oil industry and going forward oil demand. The consequential oil price collapse has tested the revenue and cash flow position of all global oil companies.
As oilmen, we are mindful that the oil and gas industry operates through elongated megacycles of shifting supply and demand, which is accompanied by price and supply shocks. Companies with people able of respond efficiently
and adapt changes quickly, survive and excel in the prevailing volatile and uncertain market. We, in ONGC Videsh, also need to become more adept to the changing dynamics. We have to conduct our business in a manner to maintain our financial viability and global competitiveness in every possible cyclic turn-ups.
During FY 2019-20 we have produced 14.98 MMTOE of oil and oil equivalent gas which is the historic peak in the long journey of this company. The peak production synchronized with peaking of production of our key assets. The
potential Assets that can add capacities at affordable costs, in the ensuing year, are CPO-5, Colombia and SPOC, S. Sudan.
In the newer landscape, our Board mandated task is of revisiting the business strategy of ONGC Videsh. Our business planning process needs to tested for portfolio and capital allocation choices against a wide range of price and production scenarios. I have asked the team to incorporate input from all stakeholders, including Regional Presidents, and Finance and come out with the determinants of overall broader strategic direction for the company.
The exercise would help in establishing the priorities based on assessment of existing & going forward business risk and our competitive advantages & strengths, in which I expect serious indulgence of all.
I do appreciate the perseverance and hard work of colleagues, during the specific situations presented by the pandemic throughout last year. We, nevertheless, have to continue to leverage our existing strengths & freshly
learnt flexibilities, to accomplish our goals & objectives, both on personal & organizational fronts.
Let me also express great joy in congratulating the executives who have been elevated on promotion. Your hard work and determination got you the promotion you have long deserved. Good luck to all. And for those who could not make it this year, my sincere advice would be not to lose heart and continue giving your best. Acknowledgement of employee’s hard work and accomplishments will always be there and would eventually stand you out.
I wish the New Year 2021 mark the brightest beginning of a wonderful year for all the colleagues and their families and bring success and lasting happiness.
Alok K Gupta
MD & CEO
ONGC Videsh Limited