MIRA INFORM REPORT

Report Date :

04.07.2013

IDENTIFICATION DETAILS

Name :	OIL AND NATURAL GAS CORPORATION LIMITED
Registered Office :	Jeewan Bharti Building, Tower-II, 124 Indira Chowk, New Delhi - 110001
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.06.1993
Com. Reg. No.:	55-054155
Capital Investment / Paid-up Capital :	Rs. 42777.600 Millions
CIN No.: [Company Identification No.]	L74899DL1993GOI054155
TAN No.: [Tax Deduction & Collection Account No.]	MUMO00241D
PAN No.: [Permanent Account No.]	AAACO1598A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The company is engaged in exploration, development and production of crude oil and natural gas.
No. of Employees :	32862 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (79)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 4518000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a Premier Oil and Gas Company in India. It is also a significant producer of value added products such as liquefied petroleum gas, superior kerosene oil and naphtha. It is a well established company having good track record. The government of India is the majority shareholders. Financial strength of the company is strong due to low gearing, large liquid investments and significant sovereign ownership and strategic importance. Trade relations are reported to be trustworthy. Business is active. Payments are reported to be regular and as per commitment. The company can be considered good for any business dealings at usual trade terms and condition.

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities : “AAA”
Rating Explanation	Having the highest degree of safety regarding timely servicing of financial obligation. It carry lowest credit risk.
Date	July, 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Jeewan Bharti Building, Tower II, 124 Indira Chowk, New Delhi - 110001, India
Tel. No.:	91-11-23721756/ 23310156-58/ 23301000/ 23301211/ 23737973
Fax No.:	91-11-23316413/ 23766541
E-Mail :	info@ongcindia.com cmsg@ongcindia.com ent@delhi.ongc.co.in setia_sc@ongc.co.in secretariat@ongc.co.in dir_fin@ongc.co.in
Website :	www.ongcindia.com
Corporate Office :	P. O. Box 55, Tel Bhavan, Dehradun - 248003, Uttarakhand, India
Tel. No.:	91-135-2757121
Fax No.:	91-135-2755298
Factory 1:	ONGC, Dronagiri Bhavan, Uran, District Raigad-400702, Maharashtra, India
Tel. No.:	91-22-27222802
Fax No.:	91-22-27222811
Factory 2 :	Hazira Plant, PO ONGC Nagar, Surat-394518, Gujarat, India
Tel. No.:	91-261-2875600
Fax No.:	91-261-2875575
Regional Offices :	Located at : · Baroda · Nazira · Kolkata · Mumbai · Chennai

DIRECTORS

AS ON 24.09.2012

Name :	Mr. Sudhir Vasudeva
Designation :	Chairman cum Managing director
Date of Birth/Age :	25.02.1954
Qualification :	BE Chemical Engg
Date of Appointment :	01.02.2009
DIN No.:	01594524
Name :	Mr. Ajit Kumar Hazarika
Designation :	Whole-time director
Date of Birth/Age :	30.09.1952
Qualification :	BE Mechanical Engg
Date of Appointment :	09.09.2004
DIN No.:	00748918
Name :	Mr. Udaykrishna Nityanand Bose
Designation :	Whole-time Director
Date of Birth/Age :	07.11.1952
Qualification :	BE Mechanical Engg
Date of Appointment :	27.09.2005
DIN No.:	00793123
Name :	Sham Vyas Rao
Designation :	Whole-time Director
Address :	N-16, Panchsheel Park, New Delhi – 110017, India
Date of Birth/Age :	22.03.1953
Qualification :	MSC-Applied Geology
Date of Appointment :	25.02.2011
DIN No.:	03467068
Name :	Jamestin Kizhakkekuttu Scaria
Designation :	Whole-time Director
Address :	B- 48, Chhota Singh, Block Asiad Games Village, New Delhi – 110049, India
Date of Birth/Age :	16.07.1964
Date of Appointment :	25.05.2011
DIN No.:	03535309
Name :	Mr. Aloke Kumar Banerjee
Designation :	Whole-time Director
Address :	R-4, Nehru Enclave, Kalkaji, New Delhi – 110019, India
Date of Birth/Age :	13.04.1955
Date of Appointment :	22.05.2012
DIN No.:	05287459
Name :	Mr. Chandrasekharam Dornadula
Designation :	Director
Address :	B7/109 A, Safdarjang Enclave, New Delhi – 110016, India
Date of Birth/Age :	14.03.1948
Qualification :	MSC-Applied Geology, Doctorate In Volcanology and Geochemistry
Date of Appointment :	11.03.2011
DIN No.:	00307736
Name :	Mr. Deepak Nayyar
Designation :	Director
Address :	B- 48, Chhota Singh, Block Asiad Games Village, New Delhi – 110049, India
Date of Birth/Age :	25.09.1946
Date of Appointment :	20.06.2011
DIN No.:	00348529
Name :	Mr. Arun Ramanathan
Designation :	Director
Address :	Flat No. B10, ONGC Colony, Sector 39, Noida – 201301, Uttar Pradesh, India
Date of Birth/Age :	25.04.1949
Date of Appointment :	20.06.2011
DIN No.:	00308848
Name :	Mr. Samir Kumar Barua
Designation :	Director
Address :	B-136, Central Area Building, 21 Indian Institute of Technology, Mumbai – 400078, Maharashtra, India
Date of Birth/Age :	23.09.1951
Date of Appointment :	14.12.2011
DIN No.:	00211077
Name :	Mr. Om Prakash Bhatt
Designation :	Director
Address :	5-B, Friends Colony [West], New Delhi – 110066, India
Date of Birth/Age :	07.03.1951
Date of Appointment :	14.12.2011
DIN No.:	00548091
Name :	Mrs. Sushama Nath
Designation :	Director
Address :	Shreyas 6A, Sixth West, Cross Street, Shenoy Nagar, Chennai – 600030, Tamilnadu, India
Date of Birth/Age :	03.03.1961
Date of Appointment :	14.12.2011
DIN No.:	05152061
Name :	Mr. Giridhar Aramane
Designation :	Director
Address :	House No. 601, Indian Institute of Management, Campus Vastrapur, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	12.06.1963
Date of Appointment :	03.08.2012
DIN No.:	00483130
Name :	Shaktikanta Das
Designation :	Director
Address :	3, Seagull Carmichael Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	26.02.1957
Date of Appointment :	28.08.2012
DIN No.:	00400808

KEY EXECUTIVES

Name :	Mr. Naresh Kumar Sinha
Designation :	Secretary
Address :	D 1/69, Rabindra Nagar, New Delhi – 110003, India
Date of Birth/Age :	18.06.1955
Date of Appointment :	01.10.2008
PAN No.:	AUOPS3162M

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	5922546522	69.23
Sub Total	5922546522	69.23
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	5922546522	69.23
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	96860594	1.13
Financial Institutions / Banks	131448631	1.54
Insurance Companies	697216738	8.15
Foreign Institutional Investors	536722527	6.27
Sub Total	1462248490	17.09
(2) Non-Institutions
Bodies Corporate	1019948386	11.92
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	136043126	1.59
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	6940528	0.08
Qualified Foreign Investor	50	0.00
Any Others (Specify)	7763018	0.09
Non Resident Indians	3566383	0.04
Trusts	2190578	0.03
Clearing Members	2004761	0.02
Foreign Nationals	1296	0.00
Sub Total	1170695108	13.68
Total Public shareholding (B)	2632943598	30.77
Total (A)+(B)	8555490120	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	8555490120	100.00

BUSINESS DETAILS

Line of Business :

The company is engaged in exploration, development and production of crude oil and natural gas.

Products :

ITC Code	Product Descriptions
27090000	Crude Oil
27112100	Natural Gas
27111900	Liquified Petroleum Gas

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Unit	Actual Production Quantity
Crude Oil	MT	26,925,348.00
Natural Gas	000 M 3	25,510,346.00
Liquefied Petroleum Gas	MT	1,037,106.00
Ethane/Propane	MT	463,056.00
Naphtha	MT	1,557,049.00
Superior Kerosene Oil	MT	79,033.00
Aviation Turbine Fuel	MT	14,158.00
Low Sulphur Heavy Stock	MT	30,893.00
High Speed Diesel	MT	32,883.00
Mineral Turpentine Oil	MT	887.00

Notes:

1. Production includes internal consumption and intermediary losses.

2. Production of 1,013 MT (Previous year 203,799 MT) Crude Oil and 15,175 TM3 (Previous year 17,059 TM3 ) of Natural Gas is included which is the difference between participating interest and entitlement interest in respect of CB-ON/3, CB-ON/2 and RJ-ON/6 JVs.

3. Crude oil production includes condensate of 1.952 MMT (Previous year 2.042 MMT).

GENERAL INFORMATION

No. of Employees :

32862 (Approximately)

Bankers :

Ø State Bank of India

Ø Citi Bank, UK

Ø Barclays Bank, UK

Facilities :

Secured Loans	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
Short term borrowings
Short Term Loans from Banks (Secured against Fixed Deposits)	45000.000	0.000
Total	45000.000	0.000

Banking Relations :	--
Statutory Auditors :
	Ø Kalyaniwala and Mistry Kalpataru Heritage, 5^th Floor, 127, MG Road, Fort 389, Mumbai – 400001, Maharashtra, India AAAFK7554R Ø Ray and Ray 6, Church Lane, Kolkata – 700001, West Bengal, India AADFR8764R Ø Varma and Varma Chennai, Tamilnadu, India Ø S. Bhandari and Company 51, Nariman Bhawan, 5^th Floor, Nariman Point, Mumbai – 400021, Maharashtra, India AAGFS7543C Ø Mehra Goel and Company New Delhi, India
Cost Auditors :	Ø A.B.K. Associates Mumbai, Maharashtra, India Ø N.D. Birla and Company Mumbai, Maharashtra, India Ø M. Krishnaswamy and Associates Chennai, Tamilnadu, India Ø Bandyopadhyaya Bhaumik and Company Kolkata, West Bengal, India Ø A.C. Dutta and Company Kolkata, West Bengal, India Ø N.L. Mehta and Company Mumbai, Maharashtra, India Ø Ramanath Iyer and Company Delhi, India
Associate :	Pawan Hans Helicopters Limited CIN No.: 62200DL1985GOI022233
Jointly Controlled Entity :	Ø ONGC Mangalore Petrochemicals Limited CIN No.: U40107KA2006PLC041258 Ø Petronet LNG Limited CIN No.: L74899DL1998PLC093073 Ø ONGC Teri Biotech Limited CIN No.: U74120DL2007PLC161117 Ø Mangalore SEZ Limited CIN No.: U45209KA2006PLC038590 Ø ONGC Petro-additions Limited CIN No.: U23209GJ2006PLC060282 Ø ONGC Tripura Power Company Limited CIN No.: U40101TR2004PLC007544 Ø Dahej SEZ Limited CIN No.: U45209GJ2004PLC044779
Subsidiaries :	Ø Mangalore Refinery and Petrochemicals Limited CIN No.: L85110KA1988GOI008959 Ø ONGC Videsh Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
30,000,000,000	Equity Shares	Rs. 5/- each	Rs. 150000.000 Millions

Issued and Subscribed Capital :

No. of Shares	Type	Value	Amount
8,555,528,064	Equity Shares	Rs. 5/- each	Rs. 42777.640 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
8,555,490,120	Equity Shares	Rs. 5/- each	Rs. 42777.450 Millions
	Add: Forfeited Shares		Rs. 0.150 Millions
	Total		Rs. 42777.600 Millions

Reconciliation of the equity shares outstanding at the beginning and at the end of the reporting period

Particulars	31.03.2012
	No. in million	Rs. In Millions
Outstanding at the beginning of the year	8555.490	42777.450
Conversion of face value of Rs10 to face value of Rs 5	--	--
Issued During the Year – Bonus Share	--	--
Outstanding at the end of the year	8555.490	42777.450

Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Details of shareholders holding more than 5% shares in the company are as under

Particulars	31.03.2012
	No. in million	% holding
President of India	5922.550	69.23
Life Insurance Corporation of India	664.450	7.76
Indian Oil Corporation Limited	657.920	7.69

Pursuant to the approval of the members dated 28.01.2011, during the financial year 2010-11, one Equity share having face value of Rs.10/- each had been sub-divided into two Equity shares of Rs.5/- each and bonus shares in proportion of one new Equity bonus share of in million Rs.5/- each for every one fully paid up equity share of Rs.5/- each held on 09.02.2011(record date) had been allotted. Company has issued total 4277.750 million (Previous Year 4277.750 million) Equity shares of face value of Rs.5 each issued as fully paid up by way of bonus shares during the period of five years immediately preceding the reporting date

Shares reserved for issue under option: Nil

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	42777.600	42777.600
(b) Reserves & Surplus	1086789.710	932266.720
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	00.000
Total Shareholders’ Funds (1) + (2)	1129567.310	975044.320
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	111978.680	99503.940
(c) Other long term liabilities	5619.920	5824.620
(d) long-term provisions	213130.600	208235.090
Total Non-current Liabilities (3)	330729.200	313563.650
(4) Current Liabilities
(a) Short term borrowings	45000.000	0.000
(b) Trade payables	52612.420	52252.960
(c) Other current liabilities	136941.190	130055.330
(d) Short-term provisions	22425.930	9257.830
Total Current Liabilities (4)	256979.540	191566.120
TOTAL	1717276.050	1480174.090
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	215678.150	184816.680
(ii) Producing Properties	463768.280	435756.570
(iii) Intangible Assets	1123.280	1578.770
(iv) Capital work-in-progress	182980.560	139769.020
(v) Exploratory/Development Wells in Progress	85812.340	77472.120
(b) Non-current Investments	43643.370	51827.450
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	254498.080	239938.540
(e) Deposit under Site Restoration Fund Scheme	91825.720	81155.060
(f) Other Non-current assets	12102.140	8624.340
Total Non-Current Assets	1351431.920	1220938.550
(2) Current assets
(a) Current investments	8519.070	0.500
(b) Inventories	51654.350	41189.840
(c) Trade receivables	61948.160	39946.790
(d) Cash and cash equivalents	201245.650	144810.890
(e) Short-term loans and advances	31237.080	26733.860
(f) Other current assets	11239.820	6553.660
Total Current Assets	365844.130	259235.540
TOTAL	1717276.050	1480174.090

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		21388.870
2] Share Application Money		0.000
3] Reserves & Surplus		851437.150
4] (Accumulated Losses)		0.000
NETWORTH		872826.020
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		49.750
TOTAL BORROWING		49.750
DEFERRED TAX LIABILITIES		89182.130
OTHER LIABILITIES		164006.680
TOTAL		1126064.580
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		156485.020
Capital work-in-progress		157910.370
INVESTMENT		57720.330
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	46785.720
	Sundry Debtors	30586.370
	Cash & Bank Balances	182310.350
	Other Current Assets	6333.050
	Loans & Advances	271697.740
Total Current Assets		537713.230
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	63925.600
	Other Current Liabilities	56950.030
	Provisions	74124.020
Total Current Liabilities		194999.650
Net Current Assets		342713.580
MISCELLANEOUS EXPENSES		8413.160
OTHER ASSETS		402822.120
TOTAL		1126064.580

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2012	31.03.2011	31.03.2010
	SALES
		Income		765150.940	683389.210	599862.770
		Other Income		44529.770	34068.460	41866.860
		TOTAL (A)		809680.710	717457.670	641729.630
Less	EXPENSES
		Purchases of Stock-in-Trade		24.820	138.350
		Production, Transportation, Selling and Distribution Expenditure		303906.040	275326.610
		Exploration Costs written off - Survey Costs		12409.390	16674.390
		Exploration Costs written off -Exploratory well Costs		80924.970	65815.260
		Provisions and Write-offs		3096.760	6114.270
		(Increase)/ Decrease in inventories		(913.440)	(129.110)
		Adjustments relating to Prior Period (Net)		(95.480)	336.250
		Exceptional items		(31405.470)	0.000
		TOTAL (B)		367947.590	364276.020	245315.090
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			441733.120	353181.650	396414.540
Less	FINANCIAL EXPENSES (D)			348.300	251.070	144.230
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			441384.820	352930.580	396270.310
Less/ Add	DEPRECIATION/ AMORTISATION (F)			74959.150	76766.880	146431.880
	PROFIT BEFORE TAX (E-F) (G)			366425.670	276163.700	249838.430
Less	TAX (H)			115196.450	86923.680	82162.870
	PROFIT AFTER TAX (G-H) (I)			251229.220	189240.020	167675.560
	EARNINGS IN FOREIGN CURRENCY
			Interest	0.000	5.060	0.000
			Services	9.410	2.720	27.250
			FOB value of Sales	63106.210	47105.490	45832.400
			Others	37.110	2.230	11.280
	TOTAL EARNINGS			63152.730	47115.500	45870.930
	IMPORTS
			Capital Goods	188428.870	182974.340	55433.810
			Stores and Spare Parts	21779.280	6648.040	7548.870
	TOTAL IMPORTS			210208.150	189622.380	62982.680
	Earnings Per Share (Rs.)			29.36	22.12	19.60

FINANCIAL PERFORMANCE

(Rs. In Billion)

Particulars	FY’ 13
Sales Turnover	825.52
Add: Other Operation Income	7.38
Less: Statutory Levies	223.59
Operating Revenue net of Levies	609.31
Add: Other Income	55.76
Add : Execeptional Item	0.00
Less: Operating Exp. (Incl Provisions and Write off)	174.92
Less: Exploration cost Written off (Survey and Dry Wells)	100.89
Less : Variation in Stock	(0.22)
PBDIT	389.48
DD and I	83.74
Interest	0.29
Profit Before Tax	305.45
Provision for Tax	96.19
Profit After Tax	209.26

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	31.03	26.38	26.13
Net Profit Margin (PBT/Sales)	(%)	47.89	40.41	41.65
Return on Total Assets (PBT/Total Assets}	(%)	26.08	22.80	35.99
Return on Investment (ROI) (PBT/Networth)		0.32	0.28	0.29
Debt Equity Ratio (Total Debt/Networth)		0.04	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.42	1.35	2.76

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last four years	Yes
12]	Profitability for last four years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CHARGES

ENTITY	PERSON	COMPETENT AUTHORITY	REGULATORY CHARGES	REGULATORY ACTION(S) / DATE OF ORDER	FURTHER DEVELOPMENTS
OIL AND NATURAL GAS CORPORATION LIMITED		EPFO	Exempted and unexempted establishments defaulted with epfoincluding provident fund, pension and edli contribution, administration charges and penal damages of Rs.126.104 millions	Among other actions, names of defaulters put on the EPFO website 30-Jun-2010	Advocate has been requested to move application for early hearing
OIL AND NATURAL GAS CORPORATION LIMITED		NSE	Highest number of complaints pending as on 08-may-2008	Put up on NSE website for public notice 04-Aug-2005	Not appearing in list as on 04-June-2008
OIL AND NATURAL GAS CORPORATION LIMITED		NSDL	High pending demat requests	Put up on NSDL website for public notice 22-Apr-2005	Not Appearing In The List Dated 15/04/2011

CORPORATE INFORMATION

Subject is a public limited company domiciled in India and incorporated under the provisions of Companies Act, 1956. Its Shares are listed and traded on Stock exchanges in India. The Company is engaged in exploration, development and production of crude oil and natural gas.

PHYSICAL PERFORMANCE: 2011-12

EXPLORATION

The Company has made 23 discoveries in domestic fields (operated by ONGC); 15 new prospects and eight new pool discoveries. Out of the 15 new prospect discoveries 7 are in NELP blocks. The new prospect discoveries are- East Linch (Oil) and Uber (Gas) in Cambay basin; North Patheria (Gas) and Nohta-2 in Vindhyan Basin; GS-70 (Oil and gas). Alankari (Gas) aid Chandrika South (Gas) from Krishna Godavari offshore basin; B-127E (Oil) and BH-67 (Gas) in Mumbai Offshore basin. GK-42 (Gas) and GS-OSN-2004/1 (Gas) in Kutch offshore basin; MDW-13 (Gas) in the deepwater of Mahanadi offshore and ANDW-1 (Gas) in deepwater Andaman offshore. Hortoki discovery is the first hydrocarbon discovery in Mizoram. Outer 23 discoveries, 15 discoveries are in nomination blocks. Seven onland discoveries have already been put on production and other four discoveries in the offshore nomination blocks have the possibility of cluster development with nearby existing infrastructure. Two onland discoveries are in the process of appraisal/delineation. Total 8 discoveries (two onland and six offshore) are in NELP blocks which are governed by the PSC guidelines and appraisal/development activities will be taken upon keeping in view the time-lines of the respective blocks.

So far, the Company has made 26 discoveries in NELP blocks (up to 31st March, 2012). Out of which, DOC (Declaration of Commerciality) has already been submitted for 13 discoveries; including the Significant discoveries in KG-DWN-98/2 in KG basin and Mahanadi basin. Rest of the discoveries are under assessment/ appraisal.

RESERVE ACCRETION and RRR

The Company accreted 242.53 million metric tonnes of oil equivalent (mmtoe) of in-place volume of hydrocarbon in domestic basins (operated by ONGC). The ultimate reserves accretion has been 84.13 mmtoe. Total ultimate reserve accretion in domestic basins including ONGC's share in PSC JVs has been 85.44 mmtoe. This fiscal also the Company maintained Reserve Replacement Ratio (RRR) more than one with RRR of 1.79 (with 3P reserves).

PRODUCTION OF OIL AND GAS

The combined production of oil and oil equivalent gas (O OEG) for ONGC, including OVL and ONGC's share in PSC-JVs. in FY'12 has been 61.18 mmtoe, marginally lower by 1.4% compared to the production in FY'11 (62.05 mmtoe). The major reason for lower production during FY'12 has been the unrest in Sudan, South Sudan and Syria fields and natural decline in domestic fields (operated by ONGC).

Out of total production of 33.13 MMT of crude oil, 71 % production came from the ONGC operated domestic fields. 19% from the overseas assets and balance 10% from ONGCs share in domestic joint ventures. As far as natural gas production is concerned, majority of production (83%) came from ONGC operated domestic fields and balance 9% from overseas assets and 8% from domestic joint ventures.

PRODUCTION FROM OVERSEAS ASSETS

ONGC Videsh Limited (OVL), the wholly owned subsidiary of the company, has ten producing assets in eight countries - Venezuela (1), Brazil (1), Colombia (1), Sudan (1), South Sudan (2), Syria (1), Vietnam (1) and Russia (2). Total production from these assets during FY'12 has been 8.75 mmtoe of O OEG (Crude oil: 6.21 MMT and Gas: 2.54 BCM).

NEW PROJECTS

The Board of the Company approved development of two discovered fields i.e. B-127 cluster and C-26 cluster in FY'12, with an investment of Rs. 46,518 million. Besides this, phase-2 redevelopment of Heera and South Heera as also approved with an investment of Rs. 56,084 million. B-173A field has also been taken up for additional development with and investment of Rs. 3,525 million.

NEW SOURCES OF ENERGY

SHALE GAS

After establishing the presence of Shale gas in the country in Durgapur, the Company is planning to explore for shale gas in the identified basins such as - Cambay, Krishna Godavari, Cauvery and Bengal basins. A landmark alliance has been linked with ConocoPhillip to explore for stale gas in India and abroad. The Company has also entered into Shale gas research consortium agreement with Energy and Geoscience Institute (EGI), University of Utah. USA. At the same time a project has been sponsored in Indian School of Mines, Dhanbad for shale gas research.

COAL BED METHANE (CBM)

The company is currently operating in four CBM blocks i.e., Jharia, Bokaro, North Karanpura and Raniganj. In all Blocks, Phase-l activities have been completed. In two blocks i.e., Bokaro and North Karanpura, Development Plan has been submitted after completion of Phase-II activities Development Plan of Bokaro block has been approved in February, 2012, while approval for the development plan of North Karnapura block is awaited. In remaining two blocks i.e. Jharia and Raniganj, Phase-II activities are nearing completion and development plans will be submitted. The Company is also looking for farm-in opportunities for expeditious exploration of the CBM resources.

UNDERGROUND COAL GASIFICATION (UCG)

The company has selected Vastan Mine block in Sural district, Gujarat for UCG Pilot project. Environmental clearance for the project has been obtained from Ministry of Environment and Forest, Government of India and request has been submitted to Ministry of Coal for award of mining lease which is awaited.

ALTERNATE SOURCES OF ENERGY

The Company, through ONGC Energy Centre (OEC), a trust set up by the Company, is actively pursuing alternate energy opportunities. The Energy Centre is poised to contribute significantly towards the Company endeavours to have a healthy portfolio of alternate energy. Some of the significant initiatives in this regard are:

- Generation of hydrogen through Thermo-chemical processes: First phase of work on Cu-Cl (Copper-Chlorine) cycle has been successfully completed and the second stage i.e. Laboratory Scale Closed Loop studies of Cu-Cl is being pursued with Institute of Chemical Technology (ICT), Mumbai.

- Geothermal Power Project in Cambay Basin: OEC has planned a pilot scale Geothermal Pilot Project in Cambay Basin, which has high geothermal gradient. M/s. Talboom, Belgium will be the technology partner in this project. Through this collaborative project OEC aims to explore the possibilities of harnessing Geothermal Energy in Sedimentary Basins of India.

- Kinetic Hydro Power Project: ONGC Energy Centre has entered into an agreement with M/s. Natural Power Concepts (NPC), Hawaii, USA for the project on "Kinetic Hydro Power Generation in Rivers/Water Channels/Tail Races of Dams'.

- Wind Power Generation Project at Offshore Installations: The company has already installed wind energy farm of 51 MW and another 102 MW wind farm project is under progress. As the Company has vast experience in offshore and has more than 200 offshore installation for production of oil and gas, the possibility of installation of suitable wind generation facilities at these Installations is being explored for harnessing wind energy in offshore.

- Uranium exploration: The Company has successfully completed two parametric wells for Uranium exploration in Tamil Nadu.

DISINVESTMENT

One of the major highlights of the year that passed was that the Govt. of India divested 420,416,170 number of equity shares (4.91%) of ONGC on 1st March, 2012 using the "offer for sale through Stock Exchange Mechanism". With this, the Govt. holding of ONGC has come down from 74.14% to 69.23%, In the process Govt. has raised a sum of Rs. 127,668 million resulting in an average price of Rs. 303.67 per share against the floor price of Rs. 290 per share. LIC came out as the latest buyer acquiring 377,107,488 no. of shares (4,408% out of the total divestment of 4.91% of the paid up share capital of ONGC) raising its total holding to 810,617,088 shares (9.475% as on 1st March, 2012).

SUBSIDIARIES

ONGC VIDESH LIMITED (OVL)

OVL, the wholly-owned subsidiary of the Company for EandP activities outside India, achieved the highest-ever total revenue of Rs. 226,374 Million for the financial year (FY) 2011-12, an increase of 21.2% as compared to the total revenue of Rs. 186,711 Million for the FY 2010-11. OVL's share in production of oil and oil equivalent gas (O OEG) together with its wholly-owned subsidiaries ONGC Nile Ganga B.V., ONGC Amazon Alaknanda Limited and Jarpeno Limited was 8.753 MTOE during the FY 2011-12 as compared to 9.448 MTOE during the FY 2010-11. The Production has decreased in FY 2011-12 mainly due to geopolitical problems in Sudan and Syria. Post secession of South Sudan from Sudan w.e.f. 9th July, 2011, Blocks 1, 2 and 4 straddle between the two countries and Stock 5A is now entirely in South Sudan. Company's operations in South Sudan are temporarily under shutdown with effect from 23rd January, 2012 because of non-resolution of various issues between the Governments of South Sudan and Sudan for use of processing, transportation and port facilities in Sudan for crude oil produced in South Sudan Also, the current geo-political situation in Syria including EU sanction and the resulting restrictions on Contractors has created a difficult situation in AI Furat Petroleum Company (AFPC) project since December 2011. Excluding Syria and Sudan, the production during FY 2011-12 was almost at the level as that of FY 2010-11.

The Profit after tax (PAT) (or the FY 2011 -12 was marginally up by 1.1% from Rs. 26,905 Million during the FY 2010-11 to Rs. 27,212 Million during the FY 2011-12 mainly due to a provision made for Impairment of Rs. 19,534 Million in respect of subsidiary, Jarpeno Limited. as the 'Value In use' computed for the asset as on 31st March, 2012 was lower than its carrying value. During the year, the company has acquired 25% Participating Interest (PI) In Satpayev Block, Kazakhstan and the exploration activities have started in the block. The remaining 75% PI is held by KMG, the National Oil Company of Kazakhstan.

ONGC Videsh presently has participation in 30 projects in 15 countries. Out of 30 projects, OVL is operator in nine projects and joint operator in six projects. The producing projects in OVL are Greater Nile Oil Project in Sudan, Greater Pioneer Operating Company and Block 5A in South Sudan, Block 06.1 in Veitnam, AI Furat Project in Syria, Sakhalin-I Project and imperial Energy in Russia, Mansarovar Energy Project in Colombia, San Cristobal Project in Venezuela and Block BC-10 in Brazil. Exploration Block XXIV. Syria is on extended production testing. OVL currently has three projects under development namely Carabobo 1, in Venezuela, where first oil is expected in December 2012 and Blocks A1 and A3 in Myanmar, which are likely to commence production in May 2013. Farsi Block, Iran has discoveries and further work is being earned out. One Pipeline Project was executed and completed by OVL and handed over to Government of Sudan in October, 2005 and is currently under lease. The remaining projects are in exploration phase.

DIRECT SUBSIDIARIES OF ONGC VIDESH LIMITED:

A) ONGC NILA GANGA B.V. (ONGBV):

ONGBV, a subsidiary of OVL, is engaged in E&P activities in Sudan, South Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25% Participating Interest (PI) in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 1.324 MMT during 2011-12. Post secession of South Sudan from Republic of Sudan effective from 9th July 2011, about 60% of fields are in South Sudan. However, major processing facilities, pipeline and port facilities are in Republic of Sudan. A new Joint Operating Company (JOC) Greater Pioneer Operating Company (GPOC) has been registered in Mauritius for petroleum operations of Block 1, 2 and 4 in Republic of South Sudan. The shareholding of ONGBV in GPOC is 25% in accordance with PI and project is jointly operated by all partners.

ONGBV holds 16.66% to 18.75% PI in four Production Sharing Contracts in AI Furat Project (AFPC), Syria with its share of oil and gas production of about 0.503 MTOE during 2011-12 ONGBV holds 40% PI in San Cristobal Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal) BV with its share of oil production of about 0.894 MMT during 2011-12 ONGBV holds 15% PI in BC-10 project Brazil through its wholly owned subsidiary ONGC Campos Limited. with its share of oil and gas production of about 0.465 MTOE during 2011-12.

B) ONGC NARMADA LIMITED (ONL)

ONL, a wholly-owned subsidiary of OVL held 13.5% PI in deep water exploration Block-2, Nigeria-Sao Tome and Principe. Joint Development Zone (JDZ). OVL has communicated its intention of not continuing the block to the Operator and Joint Development Authority (JDA) of Joint Development Zone Nigeria-Sao Tome and Principe as the development of the project is not commercially viable.

C) ONGC AMAZON ALAKNANDA LIMITED (OAAL):

OAAL, a wholly-owned subsidiary of OVL, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China During 2011-12, OVL's share of oil production in MECL was about 0.561 MMT.

D) JARPENO LIMITED:

Jarpeno Limited, a wholly-owned subsidiary of OVL incorporated in Cyprus, acquired Imperial Energy Corporation plc., a UK listed upstream oil exploration and production entity with its main activities in Tomsk region of Western Siberia in Russia, in January 2009. During 2011-12, Imperial Energy's oil production was about 0.771 MMT.

E) CARABOBO ONE AB:

Carabobo One AB, a wholly-owned subsidiary of OVL Incorporated in Sweden, holds 11% PI in Carabobo-I Project, Venezuela, The upstream production facilities are expected to produce about 400,0Q0 barrels per day of which approximately 200,000 barrels per day would be upgraded into light crude oil in a facility to be located in the Soledad area. Anzoategui state. The license term is for 25 years with the potential for a further extension of 15 years. Four stratigraphic wells and six slant wells were drilled for collection of samples and study of petro physical properties for drilling development wells was carried out for Accelerated Early Production of first oil in 4th quarter of 2012. Presently, Basic Engineering and feed for Upgrader and Downstream facilities and 3D-Seismic study, civil works for well pads have been awarded and awarding of drilling contract for Development of the Field is in progress.

JOINT VENTURE OF OVL

F) ONGC MITTAL ENERGY LIMITED (OMEL)

OVL along with Mittal Investments Sari (MIS) promoted OMEL, a joint venture company incorporated in Cyprus. OVL and MIS holds 98% equity shares of OMEL, in the ratio of 51 (OVL):49(MIS) with balance 2% shares held by SBI Capital Markets Limited, OMEL held 45.5% PI In exploration block OPL 279, Nigeria and holds 64.33% PI in exploration Block OPL 285, Nigeria. OMEL also holds 1.11% of the issued share capital of ONGBV by way of Classic shares issued by ONGBV exclusively for AFPC Syrian Assets; such investment being financed by Class-C Preference Shares issued by OMEL in the ratio of 51:49 to OVL and MIS respectively.

MANGALORE REFINERY AND PETROCHEMICALS LIMITED (MRPL)

The Company continues to hold 71.62% equity stake in MRPL, a Category I Mini Ratna, which is single location 15 MMTPA Refinery at the west coast.

JOINT VENTURES/ASSOCIATES

I. ONGC TRIPURA POWER COMPANY LIMITED (OTPC)

The company has promoted OTPC with envisaged equity stake of 50% along with Govt. of Tripura (0.5%) and IL&FS (26%) to set-up 726.6 MW (2 x 363.3 MW) gas based Combined Cycle Power Plant (CCPP) at Palatana in Tripura to monetize its idle gas assets in Tripura. The generation project is in the advanced stage of implementation by Bharat Heavy Electricals Limited, as the turnkey EPC contractor. The financial closure of the project has been achieved and various linkages like gas supply from ONGC and power off-take by NE states have already been tied up. The company has successfully accomplished, riding on the back of a breakthrough transport agreement with the Government of Bangladesh, the highly challenging task of transporting the heavy and over dimensional project equipment to the site through multi-modal transportation route through Bangladesh. In view of the enormous challenges involved in setting up the project at such a remote location, the project timelines have been revised. The commissioning of Unit-I is expected in August 2012, and that of Unit II in December 2012. The total approved cost of the project is Rs. 34,290 million and the financial progress in terms of expenditure incurred till 30th April 2012 is Rs. 23,210 million.

II. ONGC PETRO-ADDITIONS LIMITED (OPAL)

The Company has promoted a JV company OPaL with envisaged equity stake of 26% along with GAIL (15%) and Gujarat State Petroleum Corporation Limited (GSPCL) (5%) to Implement a mega petrochemical complex comprising 1.1 MMTPA ethylene Cracker and global scale polymer units within Dahej SEZ, as a step towards downstream integration at a total revised cost of Rs. 213,960 million. Project Implementation is in full swing with 95% of contracts awarded and overall progress of the project is 53.2% as on 30th April, 2012.

III. MANGALORE SPECIAL ECONOMIC ZONE LIMITED (MSEZ)

ONGC with envisaged equity stake of 26% in MSEZ along with KIADB (23%) and IL and FS KCCI (51%) is promoting an SEZ in coastal Mangalore. Ministry of Commerce and Industry has formally notified to set up a Petro-chemical Specific SEZ in 1830 acres of land. Total land in possessions 2323 acres which includes 1543 acres of land for MSEZ and other Domestic Tariff Area (DTA) land for Resettlement and Rehabilitation (R&R) for MRPL etc. MSEZ has already allotted land to OMPL and lease agreement for 441 acres signed. Commercial terms have also been finalized with ISPRL for land. Infrastructure development for river water conveyance, water treatment plants, corridor development, power supply etc. is in progress. Development of R& R colony is undergoing with allotment of 931 pots to Project Displaced Family (PDF) out of total 951 plots planned. Other R&R package is also under implementation. The company has started earning operating revenue from FY 2011-12 with revenue of Rs. 1.90 million.

IV. ONGC MANGALORE PETROCHEMICALS LIMITED (OMPL)

ONGC has promoted OMPL with envisaged equity participation of 46%. along with MRPL (3%) for setting up manufacturing facilities for 0.92 MMTPA Para-Xylene and 0.270 MMTPA Benzene from MRPL's aromatic streams in Mangalore SEZ, as a value added project Around 97% of the project cost has been awarded which includes I major contracts relating to project management, technology licensor and LSTK contract for process packages etc. The project Implementation is in full swing. The total approved cost of the project is Rs. 57,500 million and total expenditure is Rs.25.920 million, till 30th April, 2012.

V. ONGC TERI BIOTECH LIMITED (OTBL)

OTBL is a Joint Venture company of ONGC, incorporated on 26th March, 2007, with The Energy Research Institute (TERI) with shareholding of 49% each and balance 2% equity held by the Financial Institution. The J V has been promoted for addressing the requirement of Bioremediation of oily sludge. Microbial Enhanced Oil Recovery, prevention of wax deposition in tubular and solution for other oil field problems. The turnover of OTBL in FY 2011-12 is Rs. 129 .96 million and Profit after Tax is Rs. 32.78 million as against turnover of Rs. 129 .54 million and PAT of Rs. 27.48 million in FY 2010-11.

VI. PETRONET MHB LIMITED (PMHBL)

PMHBL is a JV company of ONGC (28.766%). HPCL (28.766%) and PIL (7.898%). Balance 34.57% of equity is held by the leading banks. It owns and operates a multi-product pipeline to transport MRPL's products to hinterland of Karnataka. Throughput in FY 2011-12 is 2.771 MMT against total throughput of 2.576 MMT last year. As per un-audited results for the year 2011-2012,the turnover and PAT of PMHBL are Rs. 8,602 million and Rs. 3.650 million respectively.

VII. PETRONET LNG LIMITED (PLL)

The company has 12.5% equity staked PIL, identical to similar stake by other Oil PSU co-promoters viz., IOCL. GAIL and BPCL. Dahej LNG terminal of PLL which was expended to 10 MMTPA capacities in June 2009 is currently meeting around 20% of the total gas demand of the country. A new LNG terminal of capacity 5 MMTPA is under construction at Kochi and is expected to be completed by 2^nd quarter of FY 2012. The turnover of PLL during 2011-12 is Rs.226959.000 million (previous year Rs.131973.000 millions) and net profit Rs. 10575.000 millions).

VIII. DAHEJ SEZ LIMITED (DSL)

The Company with envisaged equity stake of 23 % along with Gujarat Industrial Development Corporation (26%), is developing a multi-product SEZ at Dahej in coastal Gujarat. Dahej SEZ covers the total land area of 1732 Hectares where in 1717 Hectares is processing area and 15 Hectares is non-processing area. 90% of the leasable land has already been alloted to 65 units and 13 units have already started export from the SEZ. The SEZ is operational audits turnover during FY 11-12 is Rs.484 million and profit after tax is Rs.198.000 millions against the turnover of Rs.651.000 millions in FY 10-11 and profit after tax of Rs.412 million.

IX. PAWAN HANS HELICOPTERS LIMITED (PHHL)

ONGC has 49% equity stake in PHHL, Balance 51% equity is held by the Government of India. PHHL is one of Asia's largest helicopter operators with a well balanced operational fleet of 40 helicopters. It provides helicopter support for ONGC's offshore operations. PHHL was successful in providing all the 12 Dauphin N and N3 helicopters fully compliant with AS-4 as per the new contract with ONGC.

MANAGEMENT DISCUSSION AND ANALYSIS

THE ECONOMY

The global economy has weakened and became more uneven in 2011. A barrage of shocks compounded the reeling economies. Japan was struck by a devastating earthquake and tsunami resulting in a massive nuclear disaster. The "Arab Spring" in MENA region led to turmoil, unrest and interruptions in flow of oil. The US economy still seems to be weighed down by the after-effects of the housing bust and 2008 financial crisis. However, recent data offers encouragement. The Eurozone encountered major financial turbulence, though it gave way to a cautious optimism, thanks to the completion of Greece`s debt restructuring and continued efforts by the European Central Bank (ECB) to keep credit flowing.

Owing to these factors, the world economic growth slowed to about 3.9% in 2011, after rising to 5.3% in 2010.

The emerging markets felt the pain of a weak and reduced demand from the reeling west. China, is feeling the effects of economic weakness in Europe and the US, but most likely would manage to avoid a hard landing. However, more worrying signs emanated from India which faces a slower economic growth.

India`s Real GDP growth slowed considerably during 2011; although still high (especially in the context of the rest of the global economy), at 6.5%. Inflation, which is finally easing, has remained stubbornly high over the past two years, hovering around double-digits, while the rupee dropped to new lows against the dollar during 2011. This coupled with the slowdown in advanced countries and the European macro-economic scenario has further dampened the Indian growth story in FY`12. In addition to worsening of Eurozone economic prospects, lack of fiscal space to provide direct stimulus to the economy and lack of consensus on domestic policy reforms have further affected India`s growth story. But the fact remains that Indian economy is multidimensional. Despite a disappointing year for the Indian economy, the economy may pick up from here. Inflation has started showing the signs of easing. Foreign investment, which dropped off considerably, is returning, pushing both the rupee and equities.

Globally, improved activity in the United States during the second half of 2011 and better policies in the Euro-area in response to its deepening economic crisis have reduced the threat of a sharp global slowdown. But, the recent improvements are very fragile. As per the World Economic Outlook-2012, global growth is projected to drop from about 4 percent in 2011 to about 3.5 per cent in 2012. The euro area is still projected to go into a mild recession in 2012. Real GDP growth in the emerging and developing economies is projected to slow from 6.25 per cent in 2011 to 5.75 per cent in 2012, with China`s growth rate projected to decline to 8.20 per cent and that of India`s to 6.90 per cent.

While the Economist Intelligence Unit`s (EIU) forecast for global growth is little changed from April 2012, the rising risk of an oil shock tied to tensions over Iran has replaced the euro crisis as their main global economic concern.

OIL AND GAS INDUSTRY DEVELOPMENTS:

LIQUID SUPPLIES:

Despite the slowdown, the world has so far avoided another economic crisis, and many economists believe that a full-scale global recovery will be underway by 2013. The slowdown, though, did not dampen the Oil prices which topped $100/bbl for most of the year, much of this was driven by a drop in Libyan production as a result of political uprising. There was also disruption of supply from South Sudan (due to its conflict with Sudan); Syria and Yemen, where EU has imposed sanctions.

Despite these outages, the global liquid supply rose to 86.9 million barrels per day (mbpd) in 2011 from 86.7 mbpd in 2010 (Source: EIA). This is primarily due to renaissance of domestic liquid fuel production in America. The growth in American crude oil production, which stood at 8.1mbpd in 2011, is being augmented by rising output of natural gas liquids and liquids derived from biomass.

Taken together, the output of domestic liquid fuels reached 8.8 mbpd in 2011, America`s highest level in two decades. Most analysts also believe shale oil to be transformational and oil production in the Bakken shale in North Dakota would aid the upward trend in domestic liquid fuel production in USA in the coming years.

On the back of a 14% supply increase from Saudi Arabia, OPEC contributed 29.99 mbpd and a further 5.78 mbpd of NGLs and condensate supply in the year 2011. This marked an increase of 2.6% over the last year`s OPEC production; its snare in global oil production also increasing to 41.3% in 2011 from 40.7% in 2010. In 2011, production from OECD countries, excluding USA, declined by almost 3% to 10.79 mbpd. Non-OECD countries almost maintained their production at 29.81 mbpd. The fact remains that the world is producing more oil and other liquid fuels than it needs and supply fears have eased up.

Now, the focus for geopolitical risks has shifted to Nigeria, Iraq and most pressingly, Iran. At least a portion of Iran`s 2.5 mbpd of crude exports will likely be denied to OECD refiners from July 2012. Besides, India and other countries are reducing imports from Iran. However, present surplus capacity and increasing unconventional oil production may provide the required relief.

CRUDE OIL PRICES

Crude oil price (Dated Brent) stayed strong all through in FY`12 and averaged US$ 114.29/bbl against the average of US$ 86.52/bbl during FY`11.

The last quarter of FY`12 has been the most volatile and oil price averaged US$118.81/bbl with a peak of US$ 126.40/bbl on 16th March 2012. The major reason for higher prices has been the perception that US economy is recovering based on the indicator that showed accelerated pace of job creation in US private sector. Also hopes that Greece debt restructuring will go through created better bargains for oil buyers and fanning interest in riskier trades.

However, benchmark crude prices continued to soften through most of April`12. From around $125/bbl at the beginning of the month, Brent prices slid to around $118/bbl by month end. Crude oil prices in May`12 continued to decline and averaged US$ 110.73/bbl; almost US$14/bbl less than the peak price in March`12.

The continuing surge in US domestic oil production, combined with relatively weak oil demand in North America and Europe helped to create a surplus of light low sulphur crudes in the Atlantic Basin. The price of medium and heavy sour crude is presently being supported by many crude oil importers seeking to replace the sanctioned Iranian crude.

Saudi Arabia`s assertion that higher oil price is not conducive for healthy oil market also helped the prices to cool down. Saudi Arabia continued to produce @10 mbpd resulting in easing the market. On 22nd June`12 it touched

a low of US$ 90.37/bbl. There is growing perception that oil industry will pose a situation of "balanced uncertainty" between the Iranian issues on the one hand and weak demand fundamentals on the other. The current global oil balance is tilted toward surplus; however, in the near term, due to completion of spring maintenance, rising refinery runs will support the prices. At the same time lingering fears over Iran may also help oil prices to be strong.

NATURAL GAS PRICE

Natural Gas prices (Henry Hub) witnessed steep fall during FY`12 as US has been facing a supply surplus of natural gas since last year. The price declined from US$ 4.92/mmbtu (on 9th June`2011) to the lowest price of US$ 1.84/mmbtu on 20^th April 2012. The excess availability (including production and imports) of natural gas increased in USA from 0.77tcf in 2007 to 2.1 tcf in 2011. However, from end of April, 2012 price rallied up and in June, 2012 (22 days) it averaged to US$ 2.36/mmbtu.

The low prices have prompted E&P companies engaged in shale gas production in the US to shift their operations to liquid-rich areas, considering better and sustained oil prices. This move by the E&P companies is expected to bring down the natural gas output of the country over next one to two years.

Furthermore, low natural gas prices in the US have encouraged its usage in power generation and petrochemical industries, which is expected to increase along with the country`s gas consumption in the near term. This has also encouraged the use of natural gas as a substitute of coal and naphtha. This rebalancing in the supply-demand scenario of natural gas in the US is expected to check the fall in gas prices in the near term.

INDIAN OIL AND GAS INDUSTRY

CRUDE OIL AND NATURAL GAS PRODUCTION

Crude Oil production during FY`12 in India has been 38.09 MMT; one percent higher than the production in FY`11 (37.68 MMT).Increase in production from Mangala field in RJ-ON-90/1 block in Rajasthan (in which the Company has a 30% stake) and Oil India Limited operated fields helped in maintaining the production levels despite natural decline in matured fields operated by the Company.

Natural Gas production during FY`12 has been 47.56 BCM against 52.22 BCM during FY`11; a decline of 9% over FY`11. Less natural gas production has been mainly due to lower production from East Coast field of a private consortium. (Source: MoP&NG and ONGC data). The Company maintained its position as the largest producer of oil and oil equivalent gas (O+OEG) in the country with its share of 61% in O+OEG (Crude oil: 71% and Natural gas 54%).

INCREASING CONSUMPTION; HIGHER DEPENDENCE ON IMPORTS

India has now a refinery capacity of over 213 MMTPA (against 198 MMTPA at the end of FY`11). Total refinery throughput during FY`12 (along with fractionators) has been 204 MMTPA against 196 MMTPA in FY`11; an increase of 4%. Out of this, 60 MMT of petroleum products was exported and total exports increased by 1.8% over the previous year.

Total consumption of the petroleum products in the country has been 148 MMTPA; an increase of 4.9% compared to the previous year. Consumption of three major petroleum products - Motor Spirit (MS), High Speed Diesel (HSD) and Liquefied Petroleum Gas (LPG) (which constitute 64% of petroleum products` basket), increased by 45%, 36% and 28% respectively in the last five years. However, consumption of Superior Kerosene Oil (SKO) decreased by 12% in the same period.

CRUDE OIL PRICE INDIAN BASKET

Indian crude basket remained strong throughtout the year (FY`12) with an average price of US$ 111.89/bbl compared to US$ 85.09/bbl during FY`11; an increase of 31 %. During March`2012 it was at peak with average price of US$ 124/bbl. Higher oil prices along with depreciating rupee proved to be spoiler for the country as well as oil companies.

The gains arising from oil (Dated brent) dropping below $ 90 a barrel (on 25.06.2012) for the first time since December 2010, were more or less wiped away by the Rupee depreciating to an all-time low of Rs.57.01 (on 25.06.2012) to a US dollar.

OPERATIONAL PERFORMANCE OF ONGC

The Company maintained its production levels from domestic as well as overseas field through innovative solutions. The total production during FY`12 has been 61.18 MMtoe of oil and oil equivalent gas; marginally lower than the production during FY`11 (62.05 MMtoe) mainly on account of lower production from Sudan and South Sudan fields due to geo-political reasons. At the same time production from Syria was affected due to European Union`s sanctions.

As far as domestic fields (ONGC operated) are concerned, due to continuous capital and technology infusion, in 15 major fields (which contribute about 73% of oil production of ONGC), production levels could be maintained. Seven of these fields registered more production than the previous year. Rudrasagar; their oldest field (discovered in 1960), registered more than 18% increase in its production as compared to the previous year.

OUTLOOK

A. EXPLORATION ACREAGE

Exploratory efforts of the Company focus on expeditious conversion of Petroleum Exploration License`s (PEL) to Mining Lease (ML). The number of MLs held as on 01.04.2011 were 330 (area: 27,891 sq km) which have (as on 01.06.2011) now increased to 338 (30,633 sq km). Presently (as on 01.06.2012) the Company`s exploration activities are spread in 29 nomination blocks and 77 NELP blocks covering total area of 433,235 sq km and 4`CBM blocks covering an area of 875 sq km. Besides that the Company holds participative interest in 13 blocks awarded to in consortium under various NELP rounds. However during the same period the number of PELs decreased from 62 (area: 80,982 sq km) to 40 (area: 73,840 sq km).

B. EXPLORATION PROGRAMME

The Company has submitted detailed exploration programme for 12th Plan period (FY`12 to FY`17) to the Ministry of Petroleum and Natural Gas which is under approval. Keeping in view the existing acreage portfolio, plan has been submitted for acquisition of 28,170 LKM of 2D and 25,713 Sq.Km of 3D data. 610 exploratory wells have also been planned during the period. The Company envisages accreting more than one billion tones of O+OEG of initial in-place volume of hydrocarbon and 360 MMTOE of ultimate reserves. There is also a plan to drill 1120 development wells for monetizing discoveries and development of the fields.

C. NELP DISCOVERIES

The Company has so far (as on 31.03.2012) made 26 discoveries (13 in deepwater, 5 in shallow water and 8 in onland) 15 NELP blocks. Commencement of production from these discoveries is governed by stipulations laid down in the respective PSCs.

Out of the eight discoveries made in the onshore blocks, commerciality has been declared in case of three and remaining five discoveries are under appraisal/ assessment for submission of commerciality or Field Development Plan (FDP).

Five discoveries made in the shallow water blocks are relatively recent and are being assessed for further appraisal/ development as per the stipulations laid down in the PSCs.

As far as the discoveries made in the deep water blocks are concerned, commerciality in respect of discoveries made in blocks KG-DWN-98/2, MN-OSN-2000/2 (MDW-2A) and MN-DWN-98/3 (MDW-4,5) has been submitted. However, ONGC has requested MoPNG to consider restructuring of timelines for appraisal (blocks covered under Rig Holiday Policy) for completion of remaining/ additional appraisal drilling to firm up the development plans for bringing them on production.

Appraisal programme in respect of MDW-10 discovery in MN-OSN-2000/2 has been submitted on 26.12.2011 in accordance with PSC stipulations. MDW-13 discovery in NEC-DWN-2002/2 is under assessment to evaluate its potential commerciality. The appraisal programme is required to be submitted by 27.10.2012 as per PSC. The discovery made in Andaman is under assessment.

CONTINGENT LIABILITIES:

(Rs. in millions)

Claims against the Company/ disputed demands not acknowledged as debt:-	31.03.2012	31.03.2011
In respect of Company
Income Tax	17697.920	11192.710
Excise Duty	6407.220	4924.110
Custom Duty	1452.760	1447.470
Royalty	66123.540	19484.600
Cess	6.570	6.570
AP Mineral Bearing Lands (Infrastructure) Cess	1694.820	1470.220
Sales Tax	38177.940	29465.430
Service Tax	4362.000	1039.920
Octroi	66.890	66.890
Specified Land Tax ( Assam )	2860.570	2526.400
Claims of contractors in Arbitration / Court	36981.110	34199.710
Others	16807.050	17921.720
Total (A)	192638.390	123745.750
Income Tax	8.910	8.910
Excise Duty	0.000	0.000
Custom Duty	3620.120	3457.810
Cess	0.000	0.000
Sales Tax and Service Tax	3125.390	3116.460
Claims of contractors in Arbitration / Court	299.920	9798.450
Others	5023.970	4542.000
Total (B)	12078.310	20923.630
TOTAL (A + B)	204716.700	144669.380

WEBSITE DETAILS

PRESS RELEASE

ONGC ANNOUNCES USD 2.5 BN DEAL, WITHDRAWS HOURS LATER

New Delhi, Jun 10 2013

State-owned ONGC today committed a blooper when it jumped its own embargo to announce a USD 2.5 billion buyout of Videocon Industries' stake in a giant Mozambique gas field but hours later withdrew that statement.

ONGC at 1751 hours today issued a statement saying said its overseas arm, ONGC Videsh Limited, together with Oil India Limited have "signed a definitive agreement with Videocon Mauritius Energy Limited to acquire 100 per cent of (its) shares in Videocon Mozambique Rovuma 1 Limited for USD 2475 million."

The statement came as a rude shock to OVL officials who said a deal was in works and had not been "fully" concluded and so the announcement was premature.

OIL too felt such an announcement was at least a couple of days away and should have been done only when the requisite agreements had been signed.

Officials at both OVL and OIL said no event had happened which deserved such an announcement. The deal in works and an announcement was due only when all parties had signed the agreements.

Nearly three hours later, ONGC withdrew that statement saying the press release "was inadvertently issued."

D K Sarraf, head of OVL, which in normal course does not issue any statements and all its public affairs or media statements are handled by its parent ONGC, was travelling abroad.

ONGC Chairman and Managing Director and OVL Chairman Sudhir Vasudeva did not answer several calls seeking comments.

Interestingly, the first statement carried a quote of Vasudeva hailing the acquisition as "a significant step" towards "the energy security of our country."

In the third acquisition in 10 months, OVL-OIL is to buy Videocon Mozambique Rovuma 1 Limited's 10 per cent stake in the Rovuma-1 field for USD 2.475 billion, the first statement said.

Rovuma field may hold as much as 65 Trillion cubic feet (Tcf) of inplace gas reserves, more than 10 times the reserves in Reliance Industries' eastern offshore KG-D6 fields.

The statement even detailed the understanding between OVL and OIL on the acquisition. The two firms will form a new venture to acquire Videocon's unit. OVL will hold 60 per cent of the venture and OIL the remaining 40 per cent, it said.

OIL INDIA TO INVEST RS 120000.000 MILLIONS IN NORTH EAST BY 2017

2 Jul, 2013

Oil India Limited BSE -2.10 % said today it plans to invest Rs 120000.000 millions in the North East by 2017 on projects, including expansion of exploration work and diversification of business.

"We have set a capex target of Rs 190000.000 millions for the 12^th Five-Year Plan till 2017. Out of this, Rs 120000.000 millions will be invested in the North East," Oil India Limited (OIL) Chairman and MD Sunil Kumar Srivastava told reporters here.

The state-run company will spend Rs 19820.000 millions in the North East out of the total investment of Rs 35810.000 millions planned for the current financial year.

The company will use the money on activities such as exploring new blocks, diversification, upgrading infrastructure and general corporate purposes, he said.

OIL, which has wind energy projects in Rajasthan, plans to expand its presence in the sector by setting up units in the North East.

"We are conducting a feasibility study in the North East to see the potential of this business. Once we are done with the study and get a positive feedback, we will set up the plants," Srivastava said.

He declined to share details about the time frame and the investment proposed for starting wind projects in the region.

The company has two wind energy plants in Rajasthan with capacities of 13.6 MW and 54 MW.

"As part of our diversification strategy, we are also looking to enter the natural gas segment. We have appointed a global consultant to see the potential of LNG business in India," Srivastava said.

OIL is investing Rs 8710.000 millions to upgrade its pipelines from Duliajan in Assam to Barauni in Bihar.

"We are upgrading and revamping our pipelines. By mid-2015, we replace all our old fuel pumps from Duliajan to Barauni," Srivastava said.

The North East accounts for OIL's entire crude oil output and a majority of its gas production, according to the company's website.

OIL and Oil and Natural Gas Corporation (ONGC) said on June 25 they agreed to jointly buy Videocon Industries' 10 per cent stake in a Mozambique gas field for USD 2.5 billion.

OIL has said it will raise up to USD 900 million in overseas debt by October to pay for its acquisition of a 4 per cent interest in the Rovuma Area 1 offshore block in Mozambique.

OIL TO TAP OVERSEAS MKTS TO FUND MOZAMBIQUE BLOCK BUY

State-run explorer Oil India  expects to raise 80-90 percent of the $1 billion it has agreed to pay for a stake in a Mozambique offshore gas block through overseas debt, its chief financial officer said on Monday.

The company has not yet decided the instruments it will tap to raise the debt, TK Ananth Kumar told reporters.

Last week, state oil firms ONGC  and Oil India agreed to buy a 10 percent stake in Rovuma Area 1 block off Mozambique's coast from India's Videocon Group for $2.48 billion.

Oil India will pay $1 billion for a 4 percent stake, while ONGC Videsh will hold the balance.

OIL INDIA TO RAISE UPTO $900 MN DEBT TO FUND MOZAMBIQUE BUY

Jul 02, 2013

OIL is already "gearing up" for meeting the formalities around the fund raising - which would be through loans or issue of bonds - as it has to pay Videocon, from whom it is jointly acquiring 10 percent interest in the giant gas field in Rovuma Area 1 offshore block, by September or October

State-run Oil India today said it will raise up to USD 900 million debt from overseas markets by October to pay for its acquisition of 4 percent interest in a gas field in Mozambique.

"The total cost of our acquisition is around USD 1 billion and we will fund up to 80-90 percent of it through overseas markets," OIL Director (Finance) TK Ananth Kumar told reporters here while announcing the company's annual numbers.

The company is already "gearing up" for meeting the formalities around the fund raising - which would be through loans or issue of bonds - as it has to pay Videocon, from whom it is jointly acquiring 10 percent interest in the giant gas field in Rovuma Area 1 offshore block, by September or October, he said.

The 10 percent stake will be split 60:40 between ONGC Videsh (OVL) and OIL India . Oil India would like to leverage on its current debt-free status and also on lower interest rate offerings available overseas, Kumar said.

ONGC Videsh, the dedicated overseas subsidiary of the state-run oil exploration giant ONGC, and Oil India, had last week announced to jointly buy Videocon's 10 percent interest in the gas field for USD 2.48 billion. The field covers about 2.6 million acres of deepwaters in the Rovuma Basin, with an estimated recoverable resources of between 35 and 65 trillion cubic feet.

Apart from raising money to fund its acquisition, the company has also applied to raise USD 250 million through the external commercial borrowing route for its ongoing domestic capital expenditure plans, which stands at Rs 35810.000 millions for FY14, Chairman and Managing Director SK Srivastava said. Just like its larger peer ONGC  , Oil India has decided to form a dedicated unit for overseas operations, he said.

The company will have to pump USD 1.66 billion over the next five years, or USD 400 million a year, towards the development of the gas field and building of an LNG plant there, Srivastava said, adding, production from the facility will start from 2018.

Being a state-run firm, Oil India is always in talks for acquiring more interests to secure the country's energy requirements, he said, adding, it is currently scouting for two blocks in Africa. He declined to offer details about them. Srivastava welcomed the Cabinet decision to hike natural gas price, saying it will have the desired impact of increasing investments in oil and gas exploration. He said the move will boost Oil India's bottom line by Rs 10000.000 millions per annum.

ONGC STAKE BUY IN KASHAGAN OILFIELD WILL RAISE DEBT BY $5 B: MOODY’S

New Delhi, Nov 29:  

Rating agency Moody’s has said ONGC’s acquisition of ConocoPhillips’ 8.4 per cent stake in Kazakhstan’s Kashagan oilfield will be ‘credit negative’ as the state-owned firm’s debt will rise by $5 billion.

“The acquisition would be funded with debt and would increase ONGC’s consolidated net debt by at least $5 billion, a credit negative,” it said in a note today.

Oil and Natural Gas Corp (ONGC) has been struggling to generate positive free cash flows given its already high capital expenditure programme (about $7.5 billion in the current year) and projected rise in its fuel subsidy outgo to Rs 600000.000 millions from Rs 500000.000 millions last year, it said.

“For the 12 months ended March 31, ONGC generated free cash flow of $145 million and had $3.2 billion of debt and nearly $5 billion of cash.

“We expect ONGC to increase its net borrowings by approximately $5 billion to fund this acquisition,” it said.

ONGC Videsh Limited, the overseas arm of the state explorer, had earlier this week said it will pay about $5 billion from ConocoPhillips for the Kashagan stake.

The deal, which is subject to relevant regulatory approvals, priority rights and consortium preemption rights, is to close in the first half of 2013.

The acquisition would mark ONGC’s entry into the oil-proven North Caspian Sea of Kazakhstan. According to the company, the acquisition would likely add an average annual production of about 7.3 million barrels for more than 25 years, with a peak of about 11.7 million barrels.

ONGC produced nearly 450 million barrels of oil and gas for the year ended March 31, and the acquisition would add less than 2 per cent to its annual production.

“The acquisition also bears significant strategic importance to India in terms of contributing to the country’s energy security. India imports nearly 80 per cent of its crude annually, and this acquisition is a step toward reducing its reliance on imports,” Moody’s said.

The Kashagan Field, located in the shallow waters (about five to eight meters) of the Kazakh North Caspian Sea, is one of the world’s largest development projects. “The acquisition exposes ONGC to the project’s execution risk: there have been multiple delays and cost overruns over the past decade,” it said.

Moody’s said ONGC’s expectation of the first production from the field next year “somewhat mitigates the execution risk.”

“Nonetheless, subsequent phases of the project could face similar delays or cost overruns,” it said.

In addition to the $5 billion acquisition cost, ONGC will also need to make its share of investments in the subsequent phases of the project, with those costs based on future discoveries and sums that could be as high or higher than this $5 billion investment, it said.

MOODY'S DOWNS ONGC, GAIL CURRENCY RATINGS

NEW DELHI, April 13, 2012

Moody's, on Thursday, downgraded the local currency rating of Oil and Natural Gas Corporation (ONGC) and GAIL (India).

While the rating of ONGC has been downgraded to Baa1 from A2, in the case of GAIL India, it has downgraded to Baa2 from A3. The rating is now aligned with GAIL's Baa2 foreign currency rating, which has been affirmed by Moody's. However, it said, the outlook for the rating of GAIL and ONGC was stable, according to a press note put on the website of the rating agency.

Giving the rationale for the ratings, it said the actions reflected Moody's view that ONGC and GAIL ultimately could not be completely de-linked from the credit quality of the Indian Government (Baa3, stable), and, thus, their ratings need to more closely reflect the risk that they shared with the sovereign.

“Moody's believes that there has been no deterioration in the intrinsic credit quality of either ONGC or GAIL. Both companies are still viewed as government-related issuers and Moody's continues to assess the expectation of support from the sovereign as strong for GAIL and high for ONGC,'' the statement said.

It said a weaker sovereign had the potential to create a ratings drag, and, therefore, it was appropriate to limit the extent to which these issuers were rated higher than the sovereign, in line with the Moody's Rating Implementation Guidance. It said both issuers (ONGC and GAIL) remained rated above the sovereign as a reflection of their stronger credit quality, but the gap was smaller than before. Moody's stressed that the rating actions were not an indication of deteriorating sovereign risk; the sovereign rating remained unchanged at Baa3 with a stable outlook.

ONGC LOSES $5 BN BID FOR KASHAGAN OIL FIELD TO CHINA

July 02, 2013

New Delhi: India's ONGC has lost the giant Kashagan oilfield to the Chinese after Kazakhstan blocked its USD 5 billion deal to buy US energy major ConocoPhillips' stake in the Caspian Sea oilfield.

ONGC Videsh, the overseas investment arm of state-owned Oil and Natural Gas Corp (ONGC), had in November last year struck a deal to buy ConocoPhillips' 8.4 percent stake in Kazakhstan's biggest oilfield, Kashagan for USD 5 billion.

As per Kazakh law, the Central Asian nation had the right of first refusal or pre-emption rights that allowed it an option to step in and buy the stake at the price agreed between the Indian firm and ConocoPhillips.

The Kazakh government has decided to exercise its ROFR and acquire the stake held by ConocoPhillips, sources with direct knowledge of the development said.

The Central Asian country's Oil and Gas Ministry has informed ConocoPhillips its national oil company KazMunaiGaz will buy the US oil company's 8.4 percent interest in the world's largest oil find in five decades for about USD 5 billion. This stake will then be sold to China National Petroleum Corp (CNPC) for a reported USD 5.3-5.4 billion.

Kashagan, a Caspian Sea field set to produce 370,000 barrels of oil a day, is to start output by September, eight years later than initially planned and with costs nearing USD 48 billion, double the early estimates.

According to Kazakh law, the government has the right to buy any oil asset for sale in the country at the price agreed on by the buyer and seller.

While ONGC got nod of the partners for acquisition of ConocoPhillips stake at end of January, Kazakh government had time till July to approve the transaction.

Exxon Mobil, Royal Dutch Shell, Italy's Eni, Total of France and KazMunaiGaz each hold 16.8 percent of Kashagan. Japan's Inpex Corp has 7.56 percent.

India has lost at least USD 12.5 billion of deals to China in past years.

CNPC beat India by agreeing to pay USD 4.18 billion in August 2005 for PetroKazakhstan, then China's biggest overseas oil deal. At that time, Oil Minister Mani Shankar Aiyar had stated that India's bid for PetroKazakhstan was thwarted as the "goalposts were changed after the game began."

The Chinese firm had trailed ONGC and its partner Lakhsmi N. Mittal's USD 4 billion bid at the close of bidding on August 15, 2005. But post-close of bidding, it was allowed to raise the offer price to USD 4.18 billion, which saw PetroKazakhstan, a Canadian oil firm operating in Central Asia, go to CNPC.

A month later, CNPC against outbid ONGC in buying assets of Encana Corp in Ecuador for USD 1.42 billion.

In March 2010, ONGC lost out on acquisition of oil Block 1 and 3A in Uganda oilfields to China's Cnooc who offered as much as USD 2.5 billion for the 50 percent stake.

In May 2011, ONGC lost a bid to buy Exxon Mobil Corp's 25 percent stake in an Angolan oil field. ONGC had offered about USD 2 billion for the stake in Block 31 off Angola's coast.

Kazakhstan, home to 3 percent of the world's recoverable oil reserves, has moved in recent years to exert greater management control and secure bigger revenues from foreign-owned oil and gas projects.

Kazmunaigas entered the Kashagan consortium as a shareholder in 2005 and has since then doubled its stake to 16.81 percent.

Kashagan, with reserves estimated at 35 billion barrels of oil in place, is expected to produce its first oil in September.

PRESIDENT INAUGURATES 1ST UNIT OF ONGC'S TRIPURA POWER PROJECT

June 21, 2013

President Pranab Mukherjee today inaugurated the first unit of state-owned Oil and Natural Gas Corp's (ONGC) mega power project built at a cost of Rs 38040.000 millions.

The first unit of the 726.6 MW gas-based power plant at Palatana near here has started generating electricity and the second 363.3 MW unit is expected to commence operation in August.

Speaking on the occasion, Mukherjee said the power plant will pave the way for effective utilisation of natural gas discovered in Tripura.

He expressed hope that this power plant would meet the requirements of power deficient states in the region and open up avenues for industrialization in Tripura.

Besides constituting the largest investment in the North East, the power plant is also the largest project in the world registered under the Clean Development Mechanism of the United Nations Framework Convention on Climate Change (UNFCCC). It would earn India over a million of carbon credits, he said.

Oil Minister M Veerappa Moily said the total investment in Tripura after including the gas field development cost and an transmission line for evacuation of power, will be in excess of Rs 100000.000 millions

The 2x363.3 MW combined cycle gas turbine based power project has been built by ONGC through a special purpose vehicle, ONGC Tripura Power Company (OTPC).

ONGC holds 50% stake in the company while Infrastructure Leasing and Financial Service Limited (IL&FS) has 26%. Government of Tripura has 0.5% equity while the balance is yet to be tied-up.

The project has been financed in a debt to equity ratio of 3:1.

ONGC supplies 2.65 million standard cubic metres per day of gas to the power plant under a 15 year Gas Sale and Purchase Agreement, an official statement said.

OTPC has entered into a long-term PPA with the beneficiary States in the Northeast for approximately 87% of the total project capacity as per the allocation decided by Ministry of Power.

A 400 KV Double Circuit 661 km long transmission line from the project site in Palatana to Bongaigaon is being implemented by North East Transmission Company Limited (NETCL), a JV company of OTPC, to evacuate the power generated from the project.

The laying of the Palatana-Silchar-Byrnihat section has been completed while the balance portion upto Bongaigaon is expected to be completed matching with the commissioning of Unit-II, the statement added.

OVL-OIL TO BUY VIDEOCON STAKE IN MOZAMBIQUE FIELD FOR $2.5 BN

New Delhi, Jun 25 2013

In the third acquisition in 10 months, state-owned Oil and Natural Gas Corp (ONGC) and Oil India Limited (OIL) will buy Videocon Industries' 10 per cent stake in a giant Mozambique gas field for about USD 2.5 billion.

The acquisition of the stake in Mozambique's offshore Area 1, which may hold as much as 65 Trillion cubic feet (Tcf) of gas resources, will be done through a joint venture of OVL and OIL, the two firms announced.

OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC) will hold 60 percent stake in the joint venture while OIL will have the remaining 40 per cent.

OVL and OIL have signed a definitive agreement with Videocon Mauritius Energy Limited to acquire 100 per cent of (its) shares in Videocon Mozambique Rovuma 1 Limited for USD 2475 million, the statements said.

ONGC TO SET UP RS. 100000 MILLIONS GAS PROCESSING PLANT IN MAHARASHTRA

Hyderabad, May 28, 2013

State-run oil company ONGC is setting up an integrated gas processing plant in Maharashtra with an investment of nearly Rs. 100000.000 millions.

According to a senior ONGC official, the plant will have processing capacity of 10 mmscmd and a 30 megawatt captive power plant as part of the project.

“The Ministry of Environment and Forest (MoEF) has prescribed Terms of Reference for preparation of the environmental impact assessment report and environment management plan for the gas processing plant,” the official told PTI.

“Experts Appraisal Committee also said the draft environmental impact assessment report should be submitted to the Maharashtra Pollution Control Board for public hearing,” the official said.

A site near Kelwa- Mahim has been selected, based on a study of four alternative sites. “Cost of the project is expected to be Rs. 99800.000 millions,” the official added.

In case of non-availability of fresh water from surface water for the project, the oil and gas major may also think of setting up a desalination plant with an output of 14000 m3/day, the official indicated.

ONGC, which is in the process of setting up a 2200 megawatt gas-based combined cycle thermal in the same area, was recently advised by the MoEF to approach the Ministry of Petroleum and Natural Gas and the Ministry of Power for necessary clearances as the country witnesses a worse scenario as far as gas availability is concerned.

ONGC currently has two gas processing plants at Hazira in Gujarat and Uran near Mumbai.

While the Gas Processing Complex Hazira Plant at Surat processes only gas, Uran plant can handle both gas and oil, the official explained, adding that it will take nearly one year to get all the necessary permissions.

ONGC has indicated the assured gas supply from C-24 field and B-12 fields in Tapti Daman Block of Western Offshore Basin for the upcoming project in Maharashtra.

OVL TO RAISE $3 BILLION FOR KAZAKH ACQUISITION

May 28, 2013

NEW DELHI: ONGC Videsh Limited, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), plans to raise at least USD 3 billion in debt to part-fund acquisition of US energy giant ConocoPhillips' stake in a Kazazkhstan oilfield.

"We can take USD 1.5 billion loan from our parent company (ONGC)... may be even USD 2 billion. The rest USD 3 billion will be raised in overseas debt," OVL managing director Dinesh K Sarraf said here.

OVL in November last year agreed to buy ConocoPhillips' 8.4 per cent stake in Kazakhstan's biggest oilfield, Kashagan, for USD 5 billion.

Sarraf, who has steered OVL out of slumber the company had gone into post-Imperial Energy acquisition debacle, said borrowings will not be an issue as was demonstrated when the company raised USD 800 million for an acquisition in Azerbaijan at lowest cost ever.

OVL raised USD 300 million through a 5-year tenor unsecured bond and USD 500 million through a 10-year Note. The 10-year bond bears fixed coupon of 3.756 per cent per annum while the 5-year note will bear 2.574 per cent per annum.

"We have tested the markets and we are confident of raising funds for Kazakh acquisition," he said.

OVL, which earlier this month got government approval for the Kashagan acquisition, is awaiting nod from Kazakhstan government to close the deal.

Kazakhstan has publicly stated that it will convey its decision by July.

OVL had gone into a shell after its January 2009 acquisition of Russia-focused Imperial Energy for USD 2.12 billion was severely criticised by many, including the Comptroller and Auditor General ( CAG), as output and reserves lagged projections. Output at about 12,000 barrels per day was short of 35,000 bpd projected at the time of acquisition.

Sarraf after taking over as managing director in September 2011 turned around OVL into an aggressive acquirer, clinching a USD 1.001 billion deal to buy US energy major Hess Corp's stake in an Azerbaijan oilfield and USD 5 billion acquisition of ConocoPhillips' stake in a Kazakhstan oilfield.

Kashagan, a Caspian Sea field set to produce 370,000 barrels of oil a day, is to start output by September, eight years later than initially planned and with costs nearing USD 46 billion, double the early estimates.

While OVL got nod of the parters for acquisition of ConocoPhillips stake at end of January, Kazakh government has time till July to approve the transaction.

Exxon Mobil, Royal Dutch Shell, Italy's Eni, Total of France and KazMunaiGaz each hold 16.8 per cent of Kashagan. Japan's Inpex Corp has 7.56 per cent.

ONGC FOR LARGE ACQUISITIONS AND TIE-UPS TO DOUBLE OUTPUT BY 2030

May 17, 2013

KOLKATA: State-owned energy major Oil and Natural Gas Corporation (ONGC) today said it is open to large-ticket acquisitions and technical tie-ups to double production by 2030.

"This is all broad-based. We plan to double our production by 2030 and to do so we have to go for large-ticket acquisition and technical collaboration. We are talking to many companies," ONGC Chairman and Managing Director Sudhir Vasudeva said here today when asked about possible tie-up with global oil and gas major Anglo-Dutch multinational Royal Dutch Shell.

Vasudeva did not rule out possible joint venture and tie-ups with Shell, but said talks were at a very preliminary stage.

Speaking at a seminar on shale gas at the Bengal Chamber, he said: "If mind and synergy meets then there will be JV."

When asked whether ONGC was ready to offer stake to Shell Vasudeva said, "Of course, if they are interested we will take them."

"Yes," he said when asked if ONGC was in talks. There have been reports that ONGC was looking to form a strategic alliance with Shell for upstream and downstream operations.

If a deal was signed, it would mark the re-entry of Shell in India after a gap of 16 years, following the sale of its Rajasthan assets to Cairn.

Asked whether ONGC realisation would be impacted during the quarter if gas price was not revised, Vasudeva said that in a regime when subsidies were being reduced, realisation of the company was unlikely to decline.

ONGC'S FIRST POWER PLANT IN TRIPURA TO BE OPENED

May 13, 2013

Agartala: President Pranab Mukherjee will inaugurate the ONGC's first commercial power project in Tripura next month, an official said here Monday.

"The president would likely inaugurate the thermal power project at Palatana (in southern Tripura) on June 21," a Tripura government official said.

"During his two-day (June 21-22) visit, the president would address the convocations of the Tripura University and National Institute of Technology, Agartala," the official said.

State-owned Oil and Natural Gas Corporation's (ONGC) 726 MW gas-based power plant at Palatana, 60 km south of here, has begun generating electricity on a trial basis from its first 363 MW unit since Oct 22 last year.

The second 363 MW unit would likely start operations by August this year.

To set up the Rs.100000.000 millions power plant, including transmission lines, ONGC Tripura Power Company (OTPC) was floated by ONGC, the Tripura government and Infrastructure Leasing and Financial Service Limited (IL&FS), an infrastructure and financial service organisation.

"Due to some technical hiccups, commissioning of the giant power plant was delayed by almost one year," the official added.

The official said that getting forest clearance from the union forest and environment ministry and building long transmission lines, besides setting up the power sub-stations, transmission towers and lines in Tripura, Assam and Meghalaya, are all gigantic tasks.

The Palatana project is a hallmark of cooperation between India and Bangladesh, which ensured smooth passage of heavy project equipment and turbines to Palatana through its territory by road and waterways, from Haldia port in West Bengal.

The gas-based power project will resolve the power crisis of Assam, Meghalaya, Manipur, Nagaland, Mizoram and Tripura, as the electricity from the Palatana power plant would be transmitted to these power-starved northeastern states.

Prime Minister Manmohan Singh laid the foundation stone of the power project in October 2005.

ONGC TO GIVE 10-25% STAKE IN CBM BLOCKS TO DART ENERGY

June 05, 2013

New Delhi: State-owned Oil and Natural Gas Corp (ONGC) will give 10 to 25 percent stake in its four coal-bed methane (CBM) blocks to Brisbane-based Dart Energy Limited as it looks to expedite production.

ONGC has finalised partners for producing gas from below coal seams, called CBM, in the Jharia, Bokaro, North Karanpur and Raniganj blocks, a company official said.

The company is farming out 35 percent stake in the four blocks to expedite gas production with the help of private sector firms. It had faced land acquisition problems and rig availability issues that has delayed production.

The official said Dart will get 25 percent in the Jharia, North Karanpur and Bokaro block while in Raniganj it will get 10 percent. In Raniganj, London-listed Great Eastern Energy Corp Limited (GEECL) will be the lead partner with 25 percent interest.

CCLE, Prabha Energy and MMS would take 10 percent in Jharia, North Karanpur and Bokaro blocks, where Dart would be the lead partner, he said.

CBM is natural gas trapped within coal formations, which is extracted by drilling holes into the seams.

ONGC, which has so far spent about Rs 5100.000 millions on the four blocks, had last year offered to give out up to 35 percent stake through a tender. However, the Oil Ministry asked the company to cancel the tender as only three players bid.

The company invited fresh international bids in November and has now finalised the farm-out arrangement, he said.

ONGC is the operator in the Raniganj north block with a 74 percent stake, while state-run Coal India Limited (CIL) holds the remaining stake.

At Jharia, it holds a 90 percent stake, while CIL has 10 percent. At Bokaro and north Karanpura, it is the operator with 80 percent each. The remaining stake in the two blocks are held by state-owned Indian Oil Corp (IOC).

According to ONGC estimates, the Jharia block holds 85 billion cubic meters (bcm) of in place gas reserves. North Karanpura holds 62 bcm, Bokaro holds 45 bcm and Raniganj North holds 43 bcm.

Of these, the company has established 76 billion cubic meters of in place reserves and it is now awaiting regulatory approval for field development plan it had submitted recently.

ONGC UPGRADED TO 'NEUTRAL' ON SUBSIDY GAINS: CREDIT SUISSE

May 27, 2013

International brokerage house Credit Suisse has upped its rating on state-run ONGC  to "Neutral" from its earlier "Underperform", surprised by the oil major's FY13 subsidy estimates.

Credit Suisse has raised its target price from Rs 239 to Rs 339.

" ONGC will pay Rs 494 billion in subsidies for FY13 compared with Rs 534 billion we had in our model. Combined with a surprise at ONGC Videsh Limited (OVL) —FY13 PAT was up 44 percent y-o-y (on the resumption in sales at Sudan) and lower non-cash costs (at least for 9M FY13)—ONGC is likely to deliver FY13 EPS materially better than our estimate, which we now raise to Rs 30.6 (from Rs 24.9)," the broking firm said in its note. 

However, it says FY13 volumes were worse than forecast with domestic oil production falling 2 percent y-o-y, led by declines at Bombay High, which fell 4 percent.

"In the near term, a revision in gas prices can be taken positively, though we expect ONGC may not be able to retain all upside. With government likely to bear increased fertiliser/power costs, it may look at ways to extract the increased EBITDA from ONGC (through higher taxes, subsidies, etc.). While the arrangement between the finance and oil ministries remains unclear, the subsidy payments that the oil ministry asks of ONGC for 1Q FY14 will be important. If upstream reverts to a percentage model (33/40 percent), it could be taken positively by the market. If, however, upstream continues to pay a fixed USD per barrel amount then investors may be disappointed in the near term," the note said.

At 12:56 hrs Oil and Natural Gas Corporation was quoting at Rs 322.40, down Rs 2.55, or 0.78 percent.

FIXED ASSETS:

· Land Freehold

Land Leasehold

Building and Bunk

Houses

Plant and Equipment

Furnitures and Fixtures

Vehicles

Office Equipment

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No 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 proeeding 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. 60.10
UK Pound	1	Rs. 91.07
Euro	1	Rs. 77.95

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		79

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 & 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	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.