SUCCESS STORY OF OIL AND NATURAL GAS CORPORATION OF INDIA

A report submitted to IIMT, Greater Noida as a part fulfillment of full time postgraduate diploma in management

SUBMITTED TO: Dr. D. K. GARG CHAIRMAN IIMT, GREATER NOIDA

SUBMITTED BY: LAVKUSH SHUKLA ENR. 15073

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY 2, KNOWLEDGE PARK 1, GREATER NOIDA GAUTAM BUDH NAGAR (UP)
Website www.ishanfamily.com, E-mail ishan_corporate@yahoo.com

Table of Contents
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1 2 3 4 5 6 7 8 9 10

Origin Background of promoters Foundation of the Company History of Business Product Plannnig & Expansion of Products Business Geography R & D Innovation of the Company Problems Faced by the Company Competitors Present Status of Co and its achievements

3-4 4 4-5 5-9 9-10 10-11 11-13 13-14 14 14-16

Soft Copy verification from IT Department Comment-

NameSignatureDate-

OriginONGC's origin can be traced to the mid-1950s. After India achieved independence, the development of the petroleum industry was an important issue for the Government of India (GoI). It was crucial not only for the industrial development of the country but also for strategic reasons. Till 1955, exploration for hydrocarbon resources within the country's boundaries was mainly undertaken by private oil companies like Assam Oil Company6, Burmah Oil Company7 (both of which operated in Assam), and the Indo-Stanvac Petroleum project8 (in West Bengal). In 1955, the GoI decided to undertake exploration and production activities for oil and natural gas resources in different regions of the country. In the same year, an Oil and Natural Gas Directorate was set up as a subordinate office under the then Ministry of Natural Resources and Scientific Research. In August 1956, the Directorate was elevated to the status of a commission and named the Oil and Natural Gas Commission. In 1959, with the Oil and Natural Gas Commission Act 1959, the Commission became a statutory body. Its main objectives were "to plan, promote, organize, and implement programs for development of petroleum resources and the production and sale of petroleum and petroleum products." In 1991, as part of the liberalization initiatives of the GoI, core sectors like petroleum were deregulated and de-licensed. Consequently, in 1993, the Oil and Natural Gas Commission was converted into a public limited company, ONGC Ltd., under the Company's Act, 1956. During the pre-independence period, the Assam Oil Company in the northeastern and Attock Oil company in northwestern part of the undivided India were the only oil companies producing oil in the country, with minimal exploration input. The major part of Indian sedimentary basins was deemed to be unfit for development of oil and gas resources. After independence, the national Government realized the importance oil and gas for rapid industrial development and its strategic role in defense. Consequently, while framing the Industrial Policy Statement of 1948, the development of petroleum industry in the country was considered to be of utmost necessity. Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources of India. In Assam, the Assam Oil Company was producing oil at Digboi (discovered in 1889) and the Oil India Ltd. (a 50% joint venture between Government of India and Burmah Oil Company) was engaged in developing two newly discovered large fields Naharkatiya and Moran in Assam. In West Bengal, the Indo-Stanvac Petroleum project (a joint venture between Government of India and Standard Vacuum Oil Company of USA) was engaged in exploration work. The vast sedimentary tract in other parts of India and adjoining offshore remained largely unexplored. In 1955, Government of India decided to develop the oil and natural gas resources in the various regions of the country as part of the Public Sector development. With this objective, an Oil and Natural Gas Directorate was set up towards the end of 1955, as a subordinate office under the then Ministry of Natural Resources and Scientific Research. The department was constituted with a nucleus of geoscientists from the Geological survey of India.
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A delegation under the leadership of Mr. K D Malviya, the then Minister of Natural Resources, visited several European countries to study the status of oil industry in those countries and to facilitate the training of Indian professionals for exploring potential oil and gas reserves. Foreign experts from USA, West Germany, Romania and erstwhile U.S.S.R visited India and helped the government with their expertise. Finally, the visiting Soviet experts drew up a detailed plan for geological and geophysical surveys and drilling operations to be carried out in the 2nd Five Year Plan (1956-57 to 1960-61). In April 1956, the Government of India adopted the Industrial Policy Resolution, which placed mineral oil industry among the schedule 'A' industries, the future development of which was to be the sole and exclusive responsibility of the state. Soon, after the formation of the Oil and Natural Gas Directorate, it became apparent that it would not be possible for the Directorate with its limited financial and administrative powers as subordinate office of the Government, to function efficiently. So in August, 1956, the Directorate was raised to the status of a commission with enhanced powers, although it continued to be under the government. In October 1959, the Commission was converted into a statutory body by an act of the Indian Parliament, which enhanced powers of the commission further. The main functions of the Oil and Natural Gas Commission subject to the provisions of the Act, were "to plan, promote, organize and implement programme for development of Petroleum Resources and the production and sale of petroleum and petroleum products produced by it, and to perform such other functions as the Central Government may, from time to time, assign to it ". The act further outlined the activities and steps to be taken by ONGC in fulfilling its mandate.

Background of promotersOil and Natural Gas Corporation Limited (ONGC) is a state-owned oil and gas company in India. It is a Fortune Global 500 company ranked 152nd, and contributes 77% of India's crude oil production and 81% of India's natural gas production. It is the highest profit making corporation in India. It was set up as a commission on 14 August 1956. Indian government holds 74.14% equity stake in this company. A delegation under the leadership of Mr. K D Malviya, the then Minister of Natural Resources, visited several European countries to study the status of oil industry in those countries and to facilitate the training of Indian professionals for exploring potential oil and gas reserves. Foreign experts from USA, West Germany, Romania and erstwhile U.S.S.R visited India and helped the government with their expertise. Finally, the visiting Soviet experts drew up a detailed plan for geological and geophysical surveys and drilling operations to be carried out in the 2nd Five Year Plan. Government of India promoted and incorporated to this company.

Foundation of the companyIn August 1960, the Oil and Natural Gas Commission was formed. Raised from mere Directorate status to Commission, it had enhanced powers. In 1959, these powers were
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further enhanced by converting the commission into a statutory body by an Act of Indian Parliament. Since its foundation stone was laid, ONGC is transforming Indias view towards Oil and Natural Gas by emulating the countrys limited upstream capabilities into a large viable playing field. ONGC, since 1959, has made its presence noted in most parts of India and in overseas territories. ONGC found new resources in Assam and established the new oil province in Cambay basin (Gujarat). In 1970 with the discovery of Bombay High (now known as Mumbai High), ONGC went offshore. With this discovery and subsequent discovery of huge oil fields in the Western offshore, a total of 5 billion tonnes of hydrocarbon present in the country was discovered. The most important contribution of ONGC, however, is its self-reliance and development of core competence in exploration and production activities at a globally competitive level. ONGC's HAL Dhruv helicopter operating off the coast of Mumbai. Post 1990, the liberalized economic policy was brought into effect, subsequently partial disinvestments of government equity in Public Sector Undertakings were sought. As a result, ONGC was re-organized as a limited company and after conversion of business of the erstwhile Oil & Natural Gas Commission to that of Oil and Natural Gas Corporation Ltd in 1993, 2 percent of shares through competitive bidding were disinvested. Further expansion of equity was done by 2 percent share offering to ONGC employees. Another big leap was taken in March 1999, when ONGC, Indian Oil Corporation (IOC) and Gas Authority of India Ltd.(GAIL) agreed to have cross holding in each others stock. Consequently the Government sold off 10 per cent of its share holding in ONGC to IOC and 2.5 per cent to GAIL. With this, the Government holding in ONGC came down to 84.11 per cent. In 2002-03 ONGC took over Mangalore Refinery and Petrochemicals Limited (MRPL) from Birla Group and announced its entrance into retailing business. ONGC also went to global fields through its subsidiary, ONGC Videsh Ltd. (OVL). In 2009, ONGC discovered up to 1 billion barrel reserves of heavy crude, in the Persian Gulf off the coast of Iran.[4] Additionally, ONGC also signed a deal with Iran to invest US$3 billion to extract 1.1 billion cubic feet of natural gas from the Farzad B gas field. ONGC Videsh ONGC Videsh is the international arm of ONGC. ONGC has made major investments in Vietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from its investment in Vietnam.

History of businessThe Oil and Natural Gas Commission (ONGC), India's largest petroleum exploration and production entity, is organized as a state statutory body rather than a public company, but is run on a profit-making basis with these revenues flowing to the Indian Exchequer. In 19891990 ONGC claimed to have posted the biggest profit in "India's corporate world." ONGC and the state-owned company, Oil India Ltd., are responsible for most of the exploration and production of crude oil and gas in the country. A separate state-owned company, the huge Indian Oil Corporation, is predominant in refining, trading, and marketing.

The ONGC and other state-owned oil companies trace their origins back to a 1948 resolution by India's newly independent government. The Industrial Policy Resolution of 1948 specified that all new units in the Indian oil industry would be government-owned, unless specifically authorized. In December 1955 an Oil and Natural Gas Directorate was set up within the Ministry of Natural Resources and Scientific Research to specialize in exploration. Early in 1956 its status was changed to a commission. In October 1959 the ONGC was made a statutory body by an act of parliament. The decision to create ONGC as a state-controlled body and, eventually, to bring most of the rest of the oil industry under government control, was based not just on ideology, but on the need to prevent a drain on foreign exchange and control by a group of foreign-owned oil companies that were predominant in the country. Before independence and immediately afterward foreign companies exercised a powerful control over the production and supply of petroleum substances vital to the country's industrial development. Prior to independence, it was widely believed that India lacked large-scale commercial deposits of oil and gas. Many of India's needs were supplied by other parts of the British Empire, Persia, the Dutch East Indies, and Russia. Kerosene was the most important petroleum product in a country with few cars. Burma, then an administrative part of India, was known to have significant deposits, which sometimes derived from shallow, hand-dug wells. In 1947 both Burma and Pakistan--the latter with one discovered field--went their own ways. India was left with only one major producing field--Digboi, Assam--which had been discovered in 1890. Despite extensive surveys throughout Assam, no other fields of any significance had been discovered. Digboi and its local refinery had been of profound strategic significance after the fall of Burma in 1942. It had furnished oil to Allied air bases from which supplies were flown to China. It would take several years for India's new leaders to learn the strategic and economic importance of domestic oil supplies. During World War II, petroleum supplies were regulated by a committee in London, and prices were set in India by a committee chaired by Burmah-Shell. Wartime rationing continued until 1950, and a shortage of oil products continued to be exacerbated by the limited domestic production and refining facilities. Relations with Burmah-Shell and other foreign companies continued to sour after independence in 1947. They advised India against building its own refinery on the grounds that it could only be run at a financial loss. India's vulnerability to the pressures of the international oil market became clear after 1950, when the Iranian political leader Mussadegh nationalized a huge refinery at Abadan that BurmahShell had previously used to supply much of India's needs. Iran was in the sterling area, and when this source was cut off India was forced to use its scarce doll r reserves to buy oil a elsewhere. The foreign companies were then persuaded to build two refineries, but the government remained skeptical about the costs of oil exploration. After the war, the Assam Oil Company, a subsidiary of British-owned Burmah Oil, had resumed exploration with little success. Assam finally achieved a major find at Nakhortiya in 1953, but a row ensued between Burmah and the government. The government refused Burmah any right to refine or market this oil and would only allow the company joint ownership in production. As a result Burmah
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refused to undertake further exploration. Soon afterward, the government claimed BurmahShell and other foreign companies were charging excessive prices for imported oil. A controversy ensued over the companies' refusal to refine imported Soviet oil. These controversies helped lead to the creation of ONGC. Burmah retained control of Digboi but development in the other Assam fields was taken over by a new company, Oil India Ltd., of which the government owned one-third and Assam Oil held two-thirds. By 1981, the Indian government had acquired 100% of Oil India. Burmah and Oil India were originally confined to the Assam fields, where ONGC was excluded. After 1956 no new concessions were granted to foreign companies for onshore exploration. ONGC became the principal exploration company in India. A Soviet consultant and several Soviet geophysicists were engaged. At first, exploration and drilling with equipment provided by the Soviet and Romanian governments yielded disappointing results. The Indian financial press criticized ONGC and the government for wasting the taxpayers' money. But this attitude began to change after an important find at Cambay, Gujurat, in 1958. A chain of new finds followed. Soviet and Romanian experts became enthusiastic about India's potential reserves. They estimated that 42% of the country's land area was composed of oil-yielding sedimentary rock with even more lucrative possibilities offshore. Soviet-supplied exploration and production technology, however, was widely regarded as inferior, and the government looked for other sources of assistance, especially after a 1963 offshore exploration revealed promising structures beneath the Gulf of Cambay. In 1959, the government had revised legislation to make it easier for foreign companies to undertake exploration work in some areas without the participation of ONGC. However, the government's preference for agreements in which explorers accepted a majority government stake in the crude-producing company was known. The government launched a campaign to persuade foreign companies to undertake exploration. The French Institute of Petroleum provided some assistance, and some contracts were given to French and Italian firms. Press reports indicated that Shell, Caltex, Gulf, and Esso were interested, but in the end there were no major deals. There were more lucrative fields elsewhere, with fewer government conditions made. With limited technology and Soviet help, ONGC's progress in developing new wells and in production was slow during the 1960s. The government's inability to attract foreign investment came under frequent criticism. More promising offshore geological structures were found during systematic surveys by the Soviet ship Akademic Arkhangeleisky during the period 1964-1967. Finally, in 1974, ONGC discovered the major Bombay High offshore field with a strike from the advanced Japanese-built Sagar Samrat drilling platform. The strain on foreign exchange caused by the 1973 Arab oil boycott brought a redoubling of exploration efforts. Further offshore oil and gas was discovered at Godavari and gas off Portonovo and the Andaman islands in 1980. The importance of ONGC's new gas discoveries was underscored by the government's decision in 1984 to set up the separate Gas Authority of India Ltd. (GAIL) to process, market, and distribute all forms of natural gas. After the government acquired the remaining foreign interests of Burmah in the Assam Oil Company in 1981, Oil India Ltd. was given an
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expanded role as the second public sector undertaking engaged in oil exploration and production. Previously, Oil India had been restricted to eastern areas of the country. ONGC seeks to help the country achieve self-reliance in oil-related equipment, materials, and services. ONGC has tried to speed up this indigenization by working with a consortium of Indian firms that includes Hindustan Shipyard Ltd., Burn Standard Company Ltd., Confederation of Engineering Industry, and Larsen & Toubro. The company reports that this progress has resulted in the domestic industry supply of over 50% of the oil industry's equipment and materials requirements. In its early days, ONGC experienced difficulties in obtaining up-to-date petroleum technology. It has assigned a high priority to research and technology, which the company states are now on a level with that used in explorations anywhere in the world. ONGC's research efforts date back to the founding of its Kashava Malaviya Institute of Petroleum Exploration in Dehra dun in 1963. The Malaviya Institute is responsible for applied research in petroleum geology, geophysics, and well logging techniques. ONGC has six other research bodies. ONGC's policy is to run these institutes as profit centers. Exploration efforts have been expanded to many new areas including Krishna-Godavari, Cauvery, Tripura, Cachar, Dhansiri Valley, and Ravasan. The number of active rigs grew from 41 in 1981 to 144 in 1990. Future plans include the Ganges Valley, Himalayan foothills, Bengal, Kerala, and Konikan. Offshore, the firm's deep water unit has been formed to function as the central agency for planning, programming, and implementing exploration in deep water along India's coasts. As the government's agency, ONGC has presided over an increasingly liberalized policy of encouraging foreign oil companies to explore offshore and they have responded with increasing interest. In 1987, the Indian government invited foreign oil companies to bid for 27 offshore exploration blocks in the third round of initiatives to encourage foreign investment in India's offshore industry. This effort was made more successful than the previous rounds in which many companies refused to participate because they alleged that the government had reserved the most favorable sites for ONGC and Oil India. Twelve bids for nine blocks covering a total of 121,000 square kilometers were received from seven companies. Chevron, Texaco, Broken Hill Proprietary of Australia, and International Petroleum of Canada eventually signed deals allowing them to put 40% equity in a joint venture or to pull out if seismic data were not promising. In 1990, the government announced plans for a fourth round. Private Indian companies would be allowed to acquire concessions for the first time, but there are no current plans to privatize ONGC itself. In 1989 ONGC signed a joint exploration agreement in the Gulf of Thailand, signed drilling contracts with National Iraqi Oil Company, and raised money in the Tokyo and Swiss bond markets. In 1981-1982, the ONGC redefined its goals and objectives and prepared a corporate plan spanning 20 years from 1985 to 2005; more recently, this plan has been updated to 2015. The emphasis is on accelerated exploration and production strategies. From 1990 production levels of about 30 million tons of crude oil it envisages by 2015 production of 75 million tons. Over the 1980s and early 1990s, ONGC has shown steady growth in crude oil and gas production, rig counts, profits, and contributions to India's exchequer. India hopes to achieve

self-sufficiency in fuel by the year 2005. As the company most active in the western offshore, India's most important oil and gas area, ONGC is essential to this task.

Product Plannnig & Expansion of ProductsONGC plans to set up two new refineries in India besides raising the capacity of its Mangalore refinery in the west coast to 300,000 barrels per day (bpd). "I have asked my group to work out the financials (for the refinery project). We don't want to carry on with uncertainties," ONGC chairman R. S. Sharma told reporters. He said the proposal would affect the Mangalore refinery's expansion plans and raised "big question mark" on its planned new units -- 300,000 bpd unit at Kakinada in the east coast, and another one in the desert state of Rajasthan. The budget proposal, awaiting legislative approval, seeks to end a seven-year tax holiday for refineries commissioned after April 1, 2009, and will affect all proposed new refineries except that of Reliance Petroleum Ltd RPET.BO. Reliance Petroleum's 580,000 bpd unit in western India is expected to be commissioned in the second quarter of 2008. India aims to add 2.14 million bpd to its existing 2.98 million bpd nameplate capacity by 2012 as it seeks to become a global refining hub. Among the refineries, which would be hit by the proposed change, are those of Indian Oil Corp (IOC.BO), Bharat Petroleum Corp (BPCL.BO), Essar Oil (ESRO.BO) and the one planned by steel magnate Lakshmi Mittal in a tie-up with state-run Hindustan Petroleum Corp <HPCL.BO. While HPCL-Mittal's 180,000 bpd Bhatinda refinery would come on stream in 2010, BPCL's 120,000 bpd Bina plant in central India will be completed by Dec 2009. Officials at IOC and BPCL said they had written to the ministry of petroleum for restoration of benefits. "It is not good for refineries particularly Bhatinda and Bina which are going to come up a year or so after the tax incentive ends. Both have assumed the tax incentives or concessions in their financial viability," said Amrit Pandurangi, executive director at Price water House Coopers. He said this would slow down the pace of refinery expansion in the country. "In general the government is giving a signal that it doesn't want more refinery capacity to be set up on the basis of tax incentives." Sharma said the proposed law if applied to exploration activities will reduce rate of return from the projects, but hoped the tax benefits would be restored for future projects. "Memorandum note cannot have effect of changing the law. Whatever agreements have been signed can not be diluted. They are sacrosanct," he said, referring to the contract for blocks that have already been awarded. "This seems to be an inadvertent aberration and should be corrected before the finance bill is passed," he said. (Reporting by Nidhi Verma; editing by James Jukwey).

Envisaged Growth Crude oil production likely to go up 28 MMT by 2012-13 from current production of 24.67 MMT (2009-10). Natural gas production likely to be 72 mmscmd by 2012-13 and envisaged to be 100 mmscmd by 2015-16 from present production level of about 62mmscmd.

East Coast Hub - Eastern Offshore Asset has been put in place with an aim of putting East Coast discoveries on a fast track basis through an integrated East Coast hub. The oil discoveries in G-4-6, GS-29-1 and G-4-5 discoveries in KG-DWN-98/2 planned to be put on production in 2012-13. Exploration Acreage - ONGC has been awarded 17 NELP blocks (including 3 as nonoperator and 1 as joint-operator) in NELP-VIII round of bidding for which the contracts were signed on 30th June 2010. ONGC maintains its position as the largest acreage holder in the country. Alternate Sources of Energy - ONGC has approved setting up a 102 MW Wind Farm in Rajasthan, in addition to a 51 MW Unit already working successfully in Bhuj, Gujarat. It is also planning to establish a Photo-voltaic Solar Plant. Three Solar Thermal Engines, have been commissioned by ONGC at the Solar Energy Centre (SEC), Ministry of New and Renewable Energy (MNRE) campus at Gurgaon. ONGC Energy Centre which is pursuing a number of alternate energy source projects generates lot of hope in this regard. Value-multiplier Projects - Two petrochemical plants being implemented by ONGC promoted SPVs, ONGC Petro-additions Limited (OPaL) at Dahej in Gujarat at the estimated investment of 19,500 crore and ONGC Mangalore Petrochemicals Limited (OMPL) at Mangalore at the estimated investment of 5,750 crore, are progressing well and are expected to become operational in 2013. Both of these plants are unique in terms of their size and investment. These plants have been located in Dahej SEZ and Mangalore SEZ respectively, which are also being co-promoted by ONGC. A gas based Combined Cycle Power Plant (CCPP) of 726.6 MW, being set up by ONGC Tripura Power Company Limited (OTPC), an SPV promoted by ONGC, at Palatana, Tripura, at an estimated investment of 3,500 crore, aims to monetize ONGCs idle gas assets in the state of Tripura. This plant is schedule to be operational in 2011-12.

Business GeographyONGC Head Office Tel Bhavan, Dehradun - 248 003 Uttarakhand, India Tel: 0135-2759561-67, 2752161-65 Website: http://www.ongcindia.com

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Registered office-New Delhi Jeevan Bharti, Tower-2,124 Indira chowk, new Delhi 110001 Tel-011-23310156 Regional offices1)Nazira Po-Nazira, dist. Sivasagar, assam 785685 Tel-0376-2252356 2)varodara Makarpura road, varodara-390009 Tel-0265 2641266 3)mumbai Tel-022-26562000,26563000 4)southern reginal office,chennai No-1, gandhi-irwin road ,egmere,chennai-600008 4)kolkata regional office 41, JL Nehru road Kolkata-700071 Tel-033-22887476

R & D Innovation of the Companystate-owned navratna exploration major Oil and Natural Gas Corporation (ONGC) has asked the government to grant R&D status to two petroleum exploration licence blocks in Madhya Pradesh for five years. The blocks identified are Damoh-Jabera-Katani and ampurPachmarhi-Anhoni blocks. This will help our concerted efforts in putting Vindhyan and Satpura basins on to the oil map of India It will go miles in nations endeavour of hydrocarbon exploration in Madhya Pradesh, ONGC has stated in a letter to the petroleum ministry. ONGC proposes to conduct drilling and seismic data acquisition as well as robust age detection of the oil blocks. The studies with the help of low frequency seismic data and gravity-magnetic and seismic will enable it to reach a better assessment of the oil and gas prospects. Explaining the rationale for seeking R&D status for the two blocks, ONGC has pointed out that hydrocarbon exploration in Category IV basin is a high risk-low reward venture. Grey

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areas in the exploration still exist in various aspect that influence hydrocarbon entrapment in the basin, it stated. Various exploration challenges necessitate more time for each phase of data acquisition, processing , interpretation and special studies for developing a more viable geological model utilizing state-of-the-art techniques as projected for five years. Validating and authenticiating the model warrant drilling of deep exploratory well down to basement which in turn in needs additional time, the letter states. ONGC has contended that as a colossal gap exists between demand and supply of energy, towering crude prices, bygone days of easy to find oil in structural traps are over. There is a pressing need to pay more critical attention to frontier areas for finding oil and gas. The company board has given its approval to set aside Rs500 crore for research and development activities (in these segments), R.S. Sharma, chairman and managing director of the firm, told reporters on the sidelines of the India Economic Summit in New Delhi on Monday. In a related development, the hydrocarbon explorer announced that it has studied the log data of 900 wells and has identified pilot projects to explore uranium together with Uranium Corp. of India Ltd (UCIL). ONGC already has a uranium exploration agreement with UCIL. According to existing guidelines, atomic energy is the exclusive preser ve of the Union government. While nuclear power plants can be set up only by theNuclear Power Corp. of India Ltd (NPCIL), another public-sector firm under the department of atomic energy, uranium can be mined only by UCIL. NPCIL estimates Indias uranium reserves to be some 78,000 tonnes, around 0.8% of the worlds reserves. Sharma was also part of a panel that debated Indias future energy needs at the summit. The other panel members were Tulsi Tanti, chairman and managing director, Suzlon Energy Ltd; Tejpreet Singh Chopra, national executive for India, General Electric Co.; Madhu Koneru, executive director,Trimex Group; and Baba N. Kalyani, chairman and managing director ofBharat Forge Ltd. Participating in the debate, Sharma said, Coal consumption for power generation is leading to carbon emissions. There is a huge potential for gas to contribute to the Indian energy basket. However, he was quick to defend Indias current emissions and said, Indian emission levels are one-third of that of global emissions. Sharma also spoke about the fuel pricing regime in the country and said that it needs to be addressed. The government subsidises consumers in India by regulating the pricing of petroleum products. Sharma also told reporters that speculation has led to volatility in the international crude oil prices. Kalyani and Tanti spoke about the need for raising power generation capacity.
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If we need to grow at 10-12%, the power sector needs to grow, Tanti said. India has a power generation capacity of 150,000MW and aims to add 78,577MW in the five years to 2012. The country faces a 12% peak power shortage.

Problems Faced by the Company In bengalMisfortune struck ONGC once again at Bengal offshore. This time it has not only impacted the fate of oil hunt in the Sunderbans delta, but also in the Mahanadi basin on the coasts of Orissa. ONGC sources said that the jack-up drilling rig Transocean Nordic, which was slated to be re-deployed from Bengal offshore to the Mahanadi basin, got one of its legs stuck under the sea bed. All efforts to free the rig had failed for the last two months. The loss is estimated at $74,000 per day only on the hiring charges of the rig alone. Already subject to criticism from the Directorate General of Hydrocarbons (DGH) for the slow pace of exploration activities, the loss is more prominent in terms of time over-run, especially in the Mahanadi basin where drilling could not be initiated for more than a year due to non-availability of environmental clearances. The NELP-I block MN-OSN-97/3 is held jointly by ONGC (85 per cent) and GAIL (15 per cent). "As things stand now, we have no drill ship to carry out exploration at the Mahanadi basin. Even if the same could be arranged, which itself is a difficult proposition, the sea conditions would be extremely unfavourable for carrying out drilling activities during the monsoon between May and September," a company official said.The drilling at Bengal offshore (WBOSN-2000/1) is already facing inordinate delay due to recurrence of technical pro blems. Commenced in March 2005, ONGC could complete drilling and testing the first well, which proved to be dry, six months behind the schedule.The drilling of the other three wells could not be taken up as the drill ship found the locations identified as unsuitable for carrying out such operations. The NELP-II block WB-OSN-2000/1 is held jointly by ONGC (85 per cent) and IOC (15 per cent). In mumbaiState-owned drilling firm ONGC has reported a more than 50 per cent decline in oil production at its fields off the Mumbai Coast due to the officers' strike, which entered the third day on Friday. "Crude oil production from Bombay High and the Neelam, Heera and South Bassein fields is just over 1,70,000 barrels today against the normal day output of about 3,50,000 barrels per day," a company official said.
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Natural gas production from the fields was almost nil, impacting supply to industry and city gas operations. Bombay High and its adjoining fields on normal days produce 12.8 million standard cubic metres of gas per day but on Friday the production was negligible. The gas from these fields is send to Uran in Maharashtra for processing and onward distribution. Against a normal day sale of 10.5 mmscmd, the company could give only marginal quantities to Mahanagar Gas Ltd, which distributes CNG in Mumbai.

CompetitorsThere are lots of competitors of ONGC. The major competitior is GAIL,which is having 63,988.34 crore market capital with respect to2,87,432.38 crore of ONGC. The net profit of GAIL is 3,139.84 crore with respect to16,126.31 crore of ONGC. And on the second position PETRNET LNG is there, which is competiting to the ONGC. In the list of competitors of ongc there are many players comeslike as- Caim India, Oil India, Gujrat state petro, Reliance naturals, Guj Gas, Indraprastha gas. These are the major competitots of ONGC.

Present Status of Co and its achievementsFinancial Results (Rs. in million) 2009-10 Gross Revenue Gross Profit 619,832 396,054 2008-09 651,455 378,292

Companies total revenue was 65049 crore in financial year 2008-09 and it become 61983 crore in financial year 2009-10. And the net profit was 16126 crore in the financial year 2008-09 and it increases with the variance of 3.98% and it becomes 16768 crore in 2009-10. AchievementsThe first was the discovery of oil in Cambay in September 1958. This was followed by discovery of oil in a well at Hazat, 16 kilometers from Ankleshwar, on 14 May 1960. These two discoveries exploded the myth about the non-existence of oil in the Cambay Basin and happily brought Gujarat forward on the country's oil map.

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This was followed by discovery of oil near Rudrasagar in Assam in December 1960 much to the anguish of the doubting Thomas, who had predicted gloomy prospects. However, the most significant of the achievements was the discovery of Bombay High on 19th February 1974, which, in reality, was the turning point in ONGC's history. The rig Sagar Samrat (self-propelled jack-up), was purchased at a cost of Rs. 12.7 crore from Mitsubishi. ONGC achieved the distinction of becoming zero debt corporate by pre-paying the bulk of its foreign loans. If Raha succeeds in making ONGC a top-class global oil major, much of the credit should go to his practice of consulting people at all levels, from former chairmen and directors (earlier designated members) to middle level executives in ONGC. His "Vichar" series, Vichar "Manthan", Vichar "Dhara" and Vichar "Vishleshan" have generated much interest in ONGC and have brought to the fore a flurry of new ideas, which are then fine-tuned and implemented. The difference in these Vichar series is the level of participating executives. In short, the 46th year in the chequered history of ONGC has been one of great changes and achievements. And much of the credit should go to Raha and directors on the ONGC Board, besides of course, to the hundreds and thousands of executives working all over the country. Accolades Global Rankings: ONGC has been ranked as number 3 E&P Company in the world and 26th among leading global energy majors as per Platts Top 250 Global Energy Rankings 2009 announced in November 2009. It is ranked 24th among the Global publicly-listed energy companies as per PFC Energy 50 list (Jan 2010). It is also ranked number 1 Top Blue Chip of India in the Finance Asia 100 list for 2009 with the highest aggregate net profit and ranked at 155 in the Forbes Global 2000 list 2010 (April 2010). Indian Rankings: ONGC has been ranked as the Best Company to work for in the Core Sector. ONGC scores high at 13th place in overall ranking amongst all the Indian Companies, including public and private (Feb 2010). SCOPE Meritorious Awards: ONGC won the Gold Trophy for SCOPE Meritorious Award for Corporate Social Responsibility and Responsiveness for the year 2007-08 and Gold Trophy for R&D, Technology Development & Innovation for the year 2008-09 (awarded in April 2010). Dainik Baskar India Pride Awards: ONGC bagged the Gold Award in the Corporate Social Responsibility category in 2010 at the Dainik Bhaskar India Pride Awards for Excellence in PSUs instituted by the Dainik Bhaskar group for its CSR project Ashadeep-Shiksha Ki Jyoti on girl child education. DSIJ Award: ONGC Clinched two DSIJ-PSU awards 2010, one for excellent overall performance in the category of Heavy Weights and the other for Highest Market capitalization amogst PSUs in the category of Wealth Builders (April 2010).

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Sports Arjuna Awards: ONGCians Ms Sinimole Poulose and Shri Gautam Gambhir were conferred with Arjuna Award in 2009 in recognition of their achievements in athletics and cricket respectively. Shri Gautam Gambhir was also ranked No. 1 batsman in ICC Test world rankings. Badminton: Shri Chetan Anand won the Dutch Open Grand Prix badminton tournament in October, 2009 and also the Gold medal in SAF Games held at Dhaka,Bangladesh in February, 2010. Shri Rupesh Kumar finished Runners up in Australia Open Grand Prix badminton tournament held in July, 2009. Cycling: Ms. Koneru Humpy won the 1st place in Fide World Womens Grand Prix Chess cycle event at Turkey in March, 2010.

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