1. Summary Information
|
|
|
Country |
|
|
Company Name |
ONGC VIDESH LIMITED |
Principal Name 1 |
Mr. Sudhir Vasudeva |
|
Status |
Good |
Principal Name 2 |
Mr. D.K. Sarraf |
|
|
|
Registration # |
55-004343 |
|
Street Address |
6th Floor, Kailash, 26, K.G. Marg, |
||
|
Established Date |
05.03.1965 |
SIC Code |
-- |
|
Telephone# |
91-11-23730368/ 41291100 |
Business Style 1 |
Exploration |
|
Fax # |
91-11-23730369/ 23721755 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Oil |
|
|
# of employees |
Not Available |
Product Name 2 |
Oil gas |
|
Paid up capital |
Rs.10,000,000,000/- |
Product Name 3 |
-- |
|
Shareholders |
-- |
Banking |
State Bank of |
|
Public Limited Corp. |
No |
Business Period |
47 Years |
|
IPO |
No |
International Ins. |
- |
|
Public |
No |
Rating |
A (68) |
|
Related Company |
|||
|
Relation |
Country |
Company Name |
CEO |
|
Subsidiaries |
-- |
ONGC Nile Ganga B.V., The |
-- |
|
Note |
- |
||
2. Summary Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
39,726,250,000 |
Current Liabilities |
16,069,140,000 |
|
Inventories |
1,578,980,000 |
Long-term Liabilities |
196,963,040,000 |
|
Fixed Assets |
36,628,690,000 |
Other Liabilities |
17,960,820,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
230,993,000,000 |
|
Invest& other Assets |
233,718,150,000 |
Retained Earnings |
70,659,070,000 |
|
|
|
Net Worth |
80,659,070,000 |
|
Total Assets |
311,652,070,000 |
Total Liab. & Equity |
311,652,070,000 |
|
Total
Assets (Previous Year) |
284,984,790,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
55,682,630,000 |
Net Profit |
21,424,600,000 |
|
Sales(Previous yr) |
48,357,270,000 |
Net Profit(Prev.yr) |
11,711,280,000 |
MIRA
INFORM REPORT
|
Report Date : |
07.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
ONGC VIDESH LIMITED |
|
|
|
|
Registered
Office : |
6th Floor, Kailash, 26, K.G. Marg, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
05.03.1965 |
|
|
|
|
Com. Reg. No.: |
55-004343 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.10000.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U74899DL1965GOI004343 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELO01867F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACO1230F0 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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|
|
|
Line of Business
: |
Exploration and
Production of Oil and Gas Properties |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 322640000 |
|
|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
Litigation : |
Clear |
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|
|
Comments : |
Subject is a wholly owned subsidiary of oil and natural gas corporation
limited (ONGC) the flagship national oil company of The company can be considered good for business dealings at usual
trade terms and conditions. It can be regarded as a promising business partner in medium to long
run. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
6th Floor, Kailash, 26, K.G. Marg, |
|
Tel. No.: |
91-11-23730368/ 41291100 |
|
Fax No.: |
91-11-23730369/ 23721755 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Sudhir Vasudeva |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. D.K. Sarraf |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. S P Garg |
|
Designation : |
Director (Finance) |
|
|
|
|
Name : |
Mr. Samarendra Roychaudhury |
|
Designation : |
Director (Operations) |
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|
|
|
Name : |
Mr. Narendra K. Verma |
|
Designation : |
Director (Exploration) |
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|
|
|
Name : |
Mr. Vivek Kumar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Rajesh Kumar Khullar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Arun Ramanathan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A.K. Hazarika |
|
Designation : |
Special Invitee Director (Onshore), ONGC |
|
|
|
|
Name : |
Mr. U N Bose |
|
Designation : |
Special Invitee Director ( T and FS), ONGC |
|
|
|
|
Name : |
Mr. S.V. Rao |
|
Designation : |
Special Invitee Director (Exploration), ONGC |
|
|
|
|
Name : |
Mr. K S Jamestin |
|
Designation : |
Special Invitee Director, (HR), ONGC |
KEY EXECUTIVES
|
Name : |
Mr. V. Sreedher |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. D N Narasimha Raju |
|
Designation : |
Special Invitee Joint Secretary (E), MoP&NG |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Not Available
BUSINESS DETAILS
|
Line of Business : |
Exploration and
Production of Oil and Gas Properties |
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|
Products : |
|
PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Actual
Production |
|
Crude Oil * @ |
Tonne |
1738227 |
|
Gas* |
000 M3 |
2664000 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
State Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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|
|
|
Statutory and Auditors : |
|
|
Name : |
GSA and Associates Chartered Accountant |
|
|
|
|
Statutory and Auditors : |
|
|
Name : |
S. Mann and Company Chartered Accountant |
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Subsidiaries : |
|
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Joint Ventures: |
|
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Shares |
Rs.100/- each |
Rs.10000.000 millions |
|
|
|
|
|
Issued, Subscribed and Paid-up
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Shares (The entire share capital is held by Oil and Natural Gas Corporation Limited and its nominees) |
Rs.100/- each |
Rs.10000.000 millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
10000.000 |
10000.000 |
10000.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves and Surplus |
70659.070 |
49485.410 |
49725.840 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
80659.070 |
59485.410 |
59725.840 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
196963.040 |
197956.840 |
206790.130 |
|
|
TOTAL BORROWING |
196963.040 |
197956.840 |
206790.130 |
|
|
DEFERRED TAX LIABILITIES |
3783.020 |
3786.090 |
3482.230 |
|
|
Liability For Abandonment Cost |
13799.580 |
6868.800 |
7760.680 |
|
|
|
|
|
|
|
|
TOTAL |
295204.710 |
268097.140 |
277758.880 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
36628.690 |
29830.510 |
34398.150 |
|
|
Capital work-in-progress |
31696.370 |
30308.460 |
15541.440 |
|
|
|
|
|
|
|
|
Producing Properties |
56707.850 |
45321.420 |
45851.880 |
|
|
Development and Exploratory Wells in Progress |
7389.070 |
9442.670 |
7881.860 |
|
|
|
|
|
|
|
|
INVESTMENT |
137924.860 |
138154.260 |
52812.460 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS and
ADVANCES |
|
|
|
|
|
|
Inventories |
1578.980
|
1919.540 |
25.550 |
|
|
Sundry Debtors |
5940.940
|
4307.900 |
1644.890 |
|
|
Cash and Bank Balances |
6170.910
|
5655.060 |
4839.520 |
|
|
Other Current Assets |
226.670
|
20004.370 |
5431.020 |
|
|
Loans and Advances |
27387.730
|
40.600 |
125188.760 |
|
Total
Current Assets |
41305.230
|
31927.470 |
137129.740 |
|
|
Less : CURRENT
LIABILITIES and PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1519.130
|
1611.140 |
4428.060 |
|
|
Other Current Liabilities |
14550.010
|
14925.690 |
11028.000 |
|
|
Provisions |
378.220
|
350.820 |
400.590 |
|
Total
Current Liabilities |
16447.360
|
16887.650 |
15856.650 |
|
|
Net Current Assets |
24857.870
|
15039.820 |
121273.090 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
295204.710 |
268097.140 |
277758.880 |
|
PROFIT AND LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
55682.630 |
48357.270 |
62610.010 |
|
|
|
Other Income |
2149.080 |
1381.060 |
1459.830 |
|
|
|
TOTAL |
57831.710 |
49738.330 |
64069.840 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Production, Transportation, Selling and Distribution
Expenditure |
13035.760 |
12297.960 |
13928.210 |
|
|
|
Financing Costs & Foreign Exchange Fluctuation |
2140.100 |
5452.260 |
6062.980 |
|
|
|
Provisions & Write-Offs (Net) |
2593.340 |
1301.730 |
2877.700 |
|
|
|
Decrease/(increase) due to overlift/ underlift quantity |
(283.320) |
0.000 |
0.000 |
|
|
|
Adjustments relating to Prior Period (Net) |
27.110 |
16.980 |
101.070 |
|
|
|
Increase/(Decrease) in Stocks |
(2.020) |
1.560 |
86.580 |
|
|
|
TOTAL |
17510.970 |
19070.490 |
23056.540 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
40320.740 |
30667.840 |
41013.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
14614.760 |
11727.540 |
15453.920 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
25705.980 |
18940.300 |
25559.380 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
4281.380 |
7229.020 |
11132.580 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
21424.600 |
11711.280 |
14426.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
49163.190 |
39777.240 |
26793.120 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
2142.460 |
1171.130 |
1442.680 |
|
|
|
Transfer to Debenture Redemption Reserve |
4307.640 |
1154.200 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
64137.690 |
49163.190 |
39777.240 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Sales |
56017.350 |
49173.700 |
63409.400 |
|
|
|
Interest |
501.870 |
613.410 |
114.160 |
|
|
|
Dividend |
818.110 |
0.000 |
0.000 |
|
|
|
Others |
1382.350 |
898.020 |
1209.940 |
|
|
TOTAL EARNINGS |
58719.680 |
50685.130 |
64733.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
214.25 |
117.11 |
144.27 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
37.04
|
23.55 |
22.52 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
46.17
|
39.15 |
40.82 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
32.98
|
30.67 |
14.90 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.32 |
0.43 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.65
|
3.61 |
3.73 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.51
|
1.89 |
8.64 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE HIGHLIGHTS
The Company has completed another successful year, which
brought an overall growth in physical and financial performances. Major
performance highlights of the year are as below:
• The Company’s consolidated production of Oil plus
Oil-Equivalent Gas (O+OEG) increased from 8.870 MTOE in 2009-10 to 9.448 MMT in
2010- 11 registering an impressive growth of about 6.5%. This SUBJECT’s highest
ever oil and gas production from its overseas assets.
• The Company’s proved reserves as on 1st April 2011 stood at 202.908 MTOE
(O+OEG), which next to ONGC, is the second largest holding of proved oil and
gas reserves by any Indian Company.
• The Company’s consolidated gross revenue was up by
21%, from ` 153,828 million during 2009-10 to ` 186,832
million during 2010-11.
• The Company’s consolidated net profit was up by 29%,
from `
20,896 million for the year 2009-10 to ` 26,905
million for the year 2010-11.
• The Company achieved an overall rating of “Excellent”
in actual performance as compared to MOU parameters for the year 2009-10.
• The Company’s consolidated networth was ` 145,530
million as on 31st March, 2011
as against ` 116,449 million as on 31st March, 2010.
FINANCIAL RESULTS
NEW ACQUISITION
Satpayev Project
SUBJECT signed agreements with KazMunaiGas (KMG), the
national oil company of
EXISTING PROJECTS
Block 06.1,
Block 06.1 is an offshore Block located 370 km
South–East of Vung Tau on the southern Vietnamese coast with an area of 955 sq
km. The exploration License for Block 06.1 was acquired by The Company in 1988;
later British Petroleum and Petro
Sakhalin-1,
Sakhalin-1 is a large oil and gas field in Far East
Offshore in
The Company acquired stake in the field in July, 2001.
The Company holds 20% PI in the field; Exxon Neftegas Limited, a subsidiary of
Exxon-Mobil, as Operator, holds 30% PI; Sodeco, a consortium of Japanese
companies holds 30% PI and balance 20% PI is held by two subsidiaries of
Rosneft, the Russian Government entities. The Company’s maximum net cash sink
for investment in this project was approved at USD 1,556 million (excluding
carry finance). With the start of exports of
Exploration Block-8,
The Company is the sole licensee of Block-8, a large on
land exploration Block in
Blocks A-1 and A-3,
Block A-1 presently extends over an area of 2,129 sq. km
of
Myanmar Oil and Gas Enterprise (MOGE), the State Company
of
SUBJECT is participating in the complete hydrocarbon
exploration, production and transportation chain comprising combined Upstream
Field development of A-1 and A-3 Blocks, Offshore Pipeline Unincorporated JV
and Onshore Pipeline Incorporated Company. The Company’s share of investment
was USD 91.82 million and USD 67.90 million for Block A-1 and A-3 respectively
till 31st March, 2011.
Shwe Offshore
Mid-Stream
SUBJECT is participating in the Offshore mid-stream
project with a participating interest of 20%. The other partners are Daewoo
(Operator) having PI of 60%, GAIL and KOGAS having PI of 10% each. Government
of
Onshore Gas
Transportation
Subject is participating in the Onshore Gas Pipeline
Transportation project under construction through an incorporated joint venture
Company in which The company stake is 8.347%. The Onshore Pipeline Company was
formed and registered in Hong Kongon 25TH June 2010 as South-East
Asia Gas Pipeline Company Limited (SEAGP). The shareholding of other partners
is CNPC-South-East Asia Pipeline Company Limited (SEAP), China-50.9%,
Daewoo-25.041%, MOGE, Myanmar-7.365 %, GAIL and KOGAS-4.1735% each. The Company
will lay an on-land pipeline of 793 Km X 40” from land fall point at
Farsi Offshore
Exploration
Farsi is an Offshore exploration Block spread over 3,500
sq. km in Persian Gulf
Exploration Block
NC-189,
The Company acquired a 49% stake in the on land Block
NC-189 measuring 2,088 sq. km located in west-central part of the Sirte Basin
in Libya in June, 2003. Turkish Petroleum Overseas Company (TPOC), a subsidiary
of National Oil Company of
Block-XXIV currently measuring about 1927 sq km is an
on-land Block located in the central eastern part of
Block 5A,
Block 5A is located in the prolific Muglad basin in
North Ramadan
North Ramadan Block (Block 6) is an Offshore Block
located in the
Block 81-1,
Block 81-1 measuring 1,809 sq km is an onshore
exploration Block located in
Blocks 25, 26, 27,
28, 29 and 36,
Blocks 25, 26, 27, 28, 29, 35A and 36 are deep water
offshore exploration Blocks located in
Block 128,
Block 128 is an offshore deepwater Block, located at
water depth of more than 400 metres with 7,058 sq km area in
Block 34 and 35,
Blocks 34 and 35 are deep water offshore exploration
Blocks located in
Contract Area 43,
The Contract Area 43 located in Cyrenaica Offshore basin
in the
Pipeline
The Company (90% PI), along with Oil India Limited(10%
PI), had financed and constructed a 12”, 741-km multi product pipeline from
Khartoum refinery to Port Sudan at a base lump sum price of USD 194 million.
The pipeline was handed over to Govt. of Sudan (GOS) in October, 2005. The
lease amount is payable to the Company in 18 equal half yearly instalments
effective form December 2005. Eleven half-yearly repayments due till December,
2010 have been received by the company from GOS. M/s Dodsal, the EPC contractor
has invoked arbitration against SUBJECT staking claim of USD 28.70 million plus
interest and cost towards alleged additional work carried out in the project.
The arbitral proceedings in the matter between SUBJECT and Dodsal are currently
in progress. The company in turn has given a pre-arbitral notice to Ministry of
Justice, Government of Sudan.
Block NEMED,
The Company acquired 33% Participating Interest (PI) in
the North East Mediterranean Deep water Concession (NEMED), in Egypt
Mediterranean Sea. The acquisition was completed on 23rd June, 2007
with effective date of PI holding as 1st October, 2006. Shell was
Operator of the, block and held PI of 51% and Petronas held the remaining PI of
16%. The third and final phase of exploration period for the Block ended in
March 2011. Four wells were drilled in the second exploration phase out of
which two wells were hydrocarbon bearing and two wells were dry. The discovered
volume of Gas Initially in Place (GIIP) has been estimated to be approx. 1.407
TCF. The Operator has explored various feasibility options for development of
the discovered gas. On conclusion of these studies, Shell the Operator of NEMed
had recommended that: (a) Development lease application is not to be submitted
for the discoveries in NEMed as the discovered volumes are inadequate for a
feasible commercial development; (b) No further exploration or appraisal
activities to be conducted in the Concession; (c) The NEMed Concession be
relinquished at the end of the third and final exploration period in March
2011. The Company carried out an independent in house study which also
concluded that a feasible development of the project is not commercially viable
due to inadequate volumes of discovered gas. This has been further impacted by
the worldwide gas prices which have undergone significant downturn. The Company
has relinquished the Block at the end of the final phase of exploration period
which ended on 16th March 2011. The Company has written off
exploration costs of ` 2,816.99 million and carry finance
amounting to ` 6,156.23 million during the year
2010-11. 5.17 Blocks RC-8, RC-9 and RC-10,
Blocks AD-2, AD-3 and
AD-9,
The Company acquired three offshore deepwater
exploration Blocks i.e. AD-2, AD-3 and AD-9 on 23rd September, 2007 in
The exploration period spread over four phases extends
to 5 years for AD-2; and 7 years for AD-3 and AD-9. 2D Seismic and G-M data
acquisition and processing have been completed. During the year, the Company
completed the reprocessing of 2,677 LKM of 2D data and made a complete
reassessment of hydrocarbon potential of these blocks. The blocks are found to
be high risk with uncertain rewards and after due consideration the Company has
relinquished the Blocks at the end of the First Exploration Period in case of
AD-2 and after Study Period in blocks AD-3 and AD-9 which ended on22nd
December, 2010. The Company has written off the acquisition cost of the block
AD-2 amounting to ` 392.70 million.
Blocks SSJN-7 and
CPO-5,
The Company participated in the Bidding Round 2008 in
SUBSIDIARIES
Greater Nile Oil
Project (GNOP),
Greater Nile Oil Project (GNOP),
Al
ONGC Nile Ganga BV (ONGBV) and Fulin Investments Sarl, a
subsidiary of China National Petroleum Company International (CNPCI), hold
33.33% to 37.5% PI in four Production Sharing Contracts (PSCs) comprising 36
producing fields in
Block BC-10,
Block BC-10 is a deepwater offshore Block located in the
Campos Basin approximately 120 km South-West from the city of Vitoria off the
coast of Brazil with a water depth of around 1800 meters spread over 600 sq km.
ONGBV acquired 15% PI in the project on 25th
April, 2006 through its wholly owned subsidiary ONGC Campos Ltda. Other
partners in the Block are Shell with 50% PI as operator and Petrobras with 35%
PI. Subject’s net maximum cash sink for investment in this project was approved
at USD 548 million. The Phase-1 of the Block has been developed using sub-sea
wells which connects via sub-sea manifolds, flow lines, and risers to a
Floating Production, Storage and Offloading Vessel (FPSO). Drilling of 11 wells
planned for phase-1 has been completed and 9 producers and 1 gas injector wells
are put on production. The oil production from the project commenced on 12th
July 2009 The Company’s share of oil and gas production was 0.573 MMT and 0.013
BCM respectively during 2010-11 as compared to oil production of 0.192 MMT during
2009-10.
Blocks BM-S-73 and
Block BM-ES-42,
ONGBV holds 43.5% PI and 100% PI in the deepwater
offshore Blocks BM-S-73 and BM-ES-42 respectively in
San
The Company signed an agreement with Corporation
Venezolana Del Petroleum S.A. (CVP) on 8th April, 2008 and acquired
40% Participating Interest (PI) in San Cristobal Project,
Blocks BM-SEAL-4 and
BM-BAR-1,
The Company acquired PI in exploration blocks BMSEAL- 4 and
BM-BAR-1 in
Block BM-S-74,
OCL holds 43.5% PI in BM-S-74 Brazil offshore block covering
an area of 165.4 sq km. Other partners in the block are Petrobras and Ecopetrol
with 43.5% and 13%PI respectively. Petrobras is the operator of the block.
Seismic data acquisition, processing and GandG studies have been completed and
one exploratory well is planned to be drilled in 2011. Further ONGC Nile Ganga
(
ONGC Narmada Limited
– Wholly owned
SUBSIDIARY
Block-2, Nigeria-Săo
Tomé and
Block-2 is a deep water exploration Block located in
Nigeria-Săo Tomé and Principe Joint Development Zone (JDZ) with an area of
approx. 1,034 sq km. ONGC Narmada Limited (ONL), Company’s 100% subsidiary
incorporated in
ONGC AMAZON
ALAKNANDA LIMITED – WHOLLY OWNED SUBSIDIARY
Mansarovar Energy
Mansarovar Energy Colombia Limited (MECL),
JARPENO LIMITED –
WHOLLY OWNED SUBSIDIARY
Imperial Energy
The company acquired Imperial Energy Corporation Plc.,
an independent upstream oil Exploration and Production Company having its main
activities in the
CARABOBO ONE AB –
WHOLLY OWNED
SUBSIDIARY
Carabobo-1 Project
The Company along Indian Oil Corporation Limited (IOC),
Oil India Limited (OIL), Repsol YPF (Repsol) and Petroliam Nasional Berhad
(PETRONAS) (collectively, the “Consortium”), was awarded by the Government of
the Bolivarian Republic of Venezuela 40% ownership interest in an “Empresa
Mixta” (or “Mixed Company") which will develop the Carabobo 1 North (203
sq.km.) and Carabobo 1 Central (180 sq.km.) blocks located in the Orinoco Heavy
Oil Belt in eastern Venezuela. SUBJECT holds 11% in Carabobo-I project through
its subsidiary Carabobo One AB. Repsol and Petronas holds 11% PI each and IOC
and Oil India Limited holds 3.5% PI each in the project. The Corporación
Venezolana del Petróleo (“CVP”), a subsidiary of Petroleum de Venezuela S.A.
(“PDVSA”),
JOINT VENTURE
COMPANY – ONGC MITTAL
ENERGY LIMITED
The Company along with Mittal Investments Sarl (MIS)
promoted ONGC Mittal Energy Limited (OMEL), a joint venture company
incorporated in
Block OPL 279,
OPL 279 is a deepwater Offshore exploration Block in
Block OPL 285,
OPL 285 is a deepwater Offshore exploration Block in
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INTRODUCTION
ONGC Videsh Limited (SUBJECT) is a wholly owned
subsidiary of Oil and Natural Gas Corporation Limited (ONGC), a Central Public
Sector Enterprise/Undertaking (CPSE/CPSU) of the Government of India, under the
administrative control of the Ministry of Petroleum and Natural Gas (MoPandNG).
Subject is engaged in exploration and production of oil and gas outside
In January, 2000, Subject was granted special
empowerment by the Government. The special empowerment facilitated better and
smooth functioning of the Company in the international environment as evidenced
by a string of successful acquisitions post January, 2000. SUBJECT presently
has participation either directly or through wholly owned subsidiaries/joint
Venture Company in 33 E and P projects in 14 countries namely Vietnam (2
projects), Russia (2 projects), Sudan (3 projects), Iran (1 project), Iraq (1
project), Libya (1 project), Myanmar (2 projects), Syria (2 projects), Cuba (2
projects), Brazil (6 projects), Nigeria (2 projects), Colombia (6 projects),
Venezuela (2 projects) and Kazakhstan (1 project) and is actively seeking more
opportunities across the world. Out of 33 projects, SUBJECT is operator in 11
projects and joint operator in 6 projects.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
There has been a strong rebound of global energy
consumption in 2010, following the global recession of 2008 and 2009.
Consumption growth reached 5.6%, the highest rate since 1973. It increased
strongly for all forms of energy and in all regions. Total consumption of
energy in 2010 easily surpassed the pre-recession peak reached in 2008. While
consumption in emerging economies continued to rise rapidly, OECD countries
also saw growth well above average. Globally, energy consumption grew more
rapidly than the economy, meaning that the energy intensity of economic
activity increased for a second consecutive year.
These facts pose important questions for our industry
and the countries where we produce. They demonstrate the need to redouble
efforts to reduce energy intensity and pursue a sustainable mix for the future.
They also point to the need for continuing investment to provide the increasing
volumes of energy that the world requires – all the time making sure that
safety is of utmost priority, following last year’s tragedy in the
Encouragingly, last year, the strong recovery in energy
consumption was accompanied by strong growth in production. However, energy
prices diverged: oil pricesrebounded globally, while natural gas prices varied
by region. Not surprisingly, higher prices meant that oil saw the weakest
consumption growth among fossil fuels last year. OPEC production cuts,
instituted during the global recession, remained in effect throughout 2010 (and
so far this year) and informal production increases were not sufficient to
avoid higher prices in the face of the strong recovery in consumption.
Natural gas prices remained weak in North America –
where production of shale gas continued to climb – and were on average lower in
continental
Oil prices remained in the $70-80 range for much of the
year 2010 before rising in the fourth quarter. With the OPEC production cuts
implemented in 2008/09 were still in place, average oil prices for the year as
a whole were the second-highest on record. Dated Brent averaged $79.50 per
barrel in 2010, an increase of 29% from the 2009 but still nearly $18 per
barrel below the 2008 record level. Other benchmark crudes registered similar
increases. Very strong consumption growth and continuing OPEC production
restraint helped to push prices higher late in the year, with prices reaching a
peak near $94 at yearend. After falling for two consecutive years, global oil
consumption soured by 2.7 million barrels per day (b/d), or 3.1%, to reach a
record level of 87.4 million b/d this was the largest percentage increase since
2004 but still the weakest global growth rate among fossil fuels.
Global Upstream M and A transaction value achieved an
all-time record by crossing USD 200 billion in 2010. This is more significant
considering that the great recession of 2008 had virtually paralyzed the global
MandA market liquidity.
The record transaction value was more due to assets
deals rather that corporate consolidation. Most Majors and other International
Oil Companies (IOCs) restructured their global portfolios, while National Oil
Companies (NOCs) driven by their thirst for energy expanded their footprint
into new regions to obtain resources to fuel their growing economies. M and A
activity was also boosted by improved capital market access and demand for
world class assets.
Strong crude prices resulted in robust oil deal pricing.
However, continued weakness in natural gas prices dampened the deal prices in
conventional gas properties and increased the risk of purchases of undeveloped
unconventional gas reserves.
A Comprehensive Peace Agreement (CPA) was signed between
the GOS and Sudan People Liberation Movement (SPLM) in 2005 ending the longest
civil war in
2011 and according to referendum results declared in
February 2011, the South Sudan separated from
OUTLOOK
The Company has registered presence in various oil
provinces of the world and continues to look for attractive assets. It has
earned a high reputation for itself and therefore multiple opportunities keep
coming for its consideration.
FIXED
ASSETS
- Land
- Building
- Plant and Machinery
- Vehicles
- Furniture and Fixture
- Furniture and Fitting and Equipment
- Intangible Software
CMT REPORT (Corruption, Money Laundering and Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered
forfeited for violation of money laundering or international anti-terrorism
laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.07 |
|
|
1 |
Rs.78.09 |
|
Euro |
1 |
Rs.65.15 |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
68 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial and operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.