Signing of MOU between ONGC Videsh and Mubadala Petroleum

Mr. N K Verma, Managing Director ONGC Videsh and Mr. Musabeh Al Kabi, CEO Mubadala Petroleum, Abu Dhabi signed a MOU on 6 th February, 2017 for future collaboration between two companies in upstream oil and gas exploration, development and production projects in third countries. The current MOU is an extension of earlier MOU signed between the two companies on 29 th September, 2014. Considering the similar objectives of the two companies mandated by their respective governments and recent resolve of the two governments for increased collaboration, the two companies decided to extend the MOU for a period of another two years till September, 2018. Broad geographical areas for cooperation have also been identified during the meeting.

Mansarovar Energy awarded greenhouse gas emissions certificate

On February 2, 2017, the Colombian Institute of Technical Standards (ICONTEC) certified Mansarovar Energy for its inventory of greenhouse gases.

The official event to certify and recognize Mansarovar effort towards Carbon Footprint Management was presided by Dr. Harvinderjit Singh – CEO of Mansarovar Energy, accompanied by Mr. Carlos Benavides – Vice President of Corporate Affairs and Business, Mr. Leonel Vargas – Vice President of Operations, Directors and Managers of the Organization. ICONTEC was represented by Leonardo Fuquén – Commercial Director, Julio Giraldo – Head of Climate Change, Claudia Vega – Account Executive and Jacobo Carrizales – Auditor of Sustainable Development.

For Mansarovar Energy, document on carbon footprint quantification was made by HSE Management team. This procedure quantifies the emissions in each of the facilities and based on the results obtained, prepare strategies of reduction through policies of energy efficiency, renewable energies and reforestation.

Mr. Leonardo Fuquén, Commercial Director of ICONTEC, acknowledged the work of Mansarovar, “We are proud of you; as a multinational oil-producing company, that works with a great sense of commitment for the protection of the environment and takes steps to contribute not only to the sustainability of the organization but also to the society through a responsible performance of the daily duties,” he said.

The Certification of Greenhouse Gas Inventories is the first step in the accountability of Mansarovar Energy that quantifies the emissions of GHG contributing to global warming and allows to establish a precise roadmap to reduce gradually the emissions and look for some compensation alternatives.

Dr. Harvindjerjit Singh agrees that “the ISO 14064 certification of ICONTEC gave a clear message of Mansarovar Energy’s commitment towards the promotion and protection of the environment and sustainable development. This recognition generates credibility and trust in the Company and above all demonstrates our firm commitment of working towards a healthy environment as per best practices in the industry.”

The ICONTEC certified quantification of the emissions allows the company to develop measures to deal with the new fiscal frameworks related to carbon emissions.

ONGC Videsh leads the way in aligning QHSE Management System

Mr. Narendra K. Verma, MD along with the HSE team received the Integrated Management System (ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 certificate on 7th February, 2017 from Mr. Anand Pal Singh, Regional Manager (North), International Certification Services on behalf of ONGC Videsh.
In the audit report, M/s ICS appreciated Top Management Commitment, Well established management system, effective monitoring and Enterprise Risk Management (ERM) System as per ISO 31000:2009.

Though there is a three-year transition period till September 2018 to move to the 2015 version, ONGC Videsh led the way in aligning its QHSE Management System in line with new standards. In December 2016, M/s International Certification Services Pvt. Ltd. carried out recertification audit from 22nd to 24thas per new standards and no non-conformity or observation was raised.
New standards of ISO 9001 (Quality) and ISO 14001 (Environment) were released in 2015, with some major changes w.r.t. earlier version of 2008 and 2004 respectively. Some salient changes in these two standards w.r.t. earlier versions are:
• Uses simplified language and a common structure (High-Level Structure) and terms, particularly helpful to organizations using multiple management systems
• Focus on risk-based thinking, requires to address organizational risks and opportunities in a structured manner
• Puts greater emphasis on leadership engagement
• Addresses supply chain management more effectively
• The organisation is required to identify needs and expectations of interested parties w.r.t. QMS and any external and internal issues that may impact their EMS´s to deliver its intended outcomes.
• Life cycle thinking about products and services and to carry out a formallife cycle assessment

ONGC Videsh Bond Issuance Awarded the Best Corporate Bond Deal from India 2016

ONGC Videsh Vankorneft’s US$1 billion dual-tranche bond deal has been awarded the “Best Corporate Bond” deal from India at The Asset Triple A Country Awards 2016. This was the first dual-tranche issuance out of India in 2016 and executed swiftly to access a favourable market issuance window.

The award on behalf of OVVL was received by Mr Vivekanand, Director (Finance), ONGC Videsh at a ceremony held at Hong Kong on January 11 2017(Wednesday). The ceremony was attended in large number by senior managements and representatives of corporates, banks and financial institutions.

About the Issue

ONGC Videsh VankorneftPte Ltd (OVVL) is ONGC Videsh’s indirect wholly-owned subsidiary in Singapore and holds 26% shares in JSC Vankorneft.On 19 July 2016, OVVL priced US$ 1 billion Notes comprising of US$ 400 million Senior Unsecured 5.5 years Notes due 2022 and US$ 600 million Senior Unsecured 10 years Notes due 2026 in the international capital markets (the “Notes”). The Notes are guaranteed by ONGC. The Notes have been assigned a rating of Baa2 (Moody’s) and BBB- (S&P).
The transaction was the First Dual tranche issuance from India in 2016. The 5.5-yr and 10-yr Notes were over-subscribed by 2.2 and 2.3 times respectively, across 185 accounts which participated in the landmark issuance.
ONGC and ONGC Videsh Limited conducted a series of investor meetings in key financial centres of Asia (Hong Kong & Singapore) and Europe (London) beginning 14th July 2016. The deal roadshows were successful with over 80 investor meetings across 3 days. 185 investors participated in the landmark issuance.

The 5.5-year Notes were priced at T+ 175 bps, bearing a fixed coupon of 2.875% per annum, equivalent to a price of 100.00 and a yield of 2.875% and the 10-year Notes were priced at T+220 bps, bearing a fixed coupon of 3.750% per annum, equivalent to a price of 99.81 and a yield of 3.773%. OVVL used the Notes proceeds to refinance a part of the bridge loan availed for the acquisition of a 15% equity sharesin JSC Vankorneft, Russia.

The Notes saw a large geographic spread with interested investors from Asia, Europe and Offshore USA accounts. The investors’ base was Fund Managers, Banks, Private Banks and Sovereign Wealth Funds / Insurance companies.

Citigroup and Standard Chartered Bank acted as Joint Global Coordinators.Also Citigroup, Standard Chartered Bank, DBS Bank Ltd, Mizuho Securities, MUFG and SMBC Nikko acted as Joint Bookrunners and Joint Lead Managers for this issuance.

About Triple A Awards

The Asset Triple A Awards are Asia’s preeminent recognition for those that have excelled in their respective industry. With close to 20 years of experience conducing awards programs The Asset Triple A’s has gone from strength to strength distinguishing best in class organizations. AAA awards programs are built upon a stringent methodology that is combined with a rigorous approach in selecting the best institutions operating within Asia. The awards are adjudicated by The Asset’s Board of Editors who collectively have several decades’ worth of evaluating industry awards in Asia.

About ONGC Videsh

ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India and is India’s largest international oil and gas E&P Company. At present, ONGC Videsh has 37 projects in 17 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Russia, South Sudan, Sudan, Venezuela, Vietnam and New Zealand. ONGC Videsh is currently producing about 229,200 barrels of oil and oil equivalent gas per day. For more information visit: www.ongcvidesh.com

About ONGC

ONGC’s market capitalization as on 11 January 2017 was INR 2,535 billion (US$ 37.2 billion). During the financial year ended 31st March, 2016, ONGC Group had produced 57.38 MMT of oil and oil equivalent gas (MMTOE) (approx. 1.2 MMboe per day); the Consolidated Gross Turnover was INR 1,429 billion (US$ 21.83 billion) during FY’16. For more information visit: www.ongcindia.com

विश्व हिन्दी दिवस -2017

Message of Shri Narendra K. Verma, MD and CEO

New Year Greetings from MD & CEO

ONGC Videsh Declares H1 FY’17 Standalone Financial Results

ONGC Videsh Declares H1 FY’17 Standalone Financial Results
New Delhi: 15th December 2016

Financial results of ONGC Videsh Ltd, the wholly-owned subsidiary of ONGC, for the half year ended 30 September 2016 were considered and approved by the Board in its meeting held on 13 December 2016. The performance highlights are as under:

Consolidated Crude Oil and Oil Equivalent of Gas production during H1FY’17 was higher by 22.99% at 5.473 MMTOE mainly due to acquisition of 15% stake in Vankorneft project in Russia during the half year.

The Company recorded its standalone profit of ₹ 512 crore during the first half of the financial year 2016-17 against profit of ₹ 226 crore in the corresponding half year of the previous financial year despite reduced Income from operations by ₹ 319 crore mainly due to reduced depreciation, depletion and amortisation expenses and forex gains.

This is the first time, the Company has prepared its financial results in accordance with the recognition and measurement principles as per Ind AS 34 ‘Interim Financial Reporting’ and the other accounting principles generally accepted in India along with restated comparatives for H1 FY’16. The Company has determined its functional currency to be United States Dollar (USD) and accordingly prepared the financial results in USD and the translated the same in ₹ for submission to NSE & publication as per the reporting requirements.

A. New Acquisitions and Alliances

• ONGC Videsh completed acquisition of 15% interest in Vankor Field located in East Siberia of the Russian Federation on 31 May 2016 from Rosneft Oil Company and subsequently acquired additional 11% interest on 28 October, 2016. Vankor is Russia’s second largest field by production and accounts for 4% of Russian production. The average daily production from the field is around 415,500 barrels per day of crude oil (bopd) since acquisition and ONGC Videsh’s share of daily oil production from Vankor (considering both the acquisitions) will be about 108,030 bopd.

• ONGC Videsh and Petroleos De Venezuela S.A. (PDVSA) through their relevant subsidiaries signed two definitive agreements for facilitating redevelopment of the San Cristobal joint venture project in Venezuela on 4 November 2016. The redevelopment plan aims to increase the current level of production of about 18,000 bbl/day to 27,000 bbl/day by use of water flooding techniques. The agreement also provides for mechanism to liquidate ONGC Videsh’s outstanding dividends from the project and ONGC Videsh to obtain long term finance for the capital investment for implementing the redevelopment plan.

B. Financing

• ONGC Videsh Vankorneft Pte. Ltd., Singapore a step down wholly owned subsidiary of ONGC Videsh raised USD 1 billion financing comprising of US$ 400 million Senior Unsecured Notes due 2022 and USD 600 million Senior Unsecured Notes due 2026 in the international capital markets. The bond issuance was made at competitive rates and well received by the investors.

C. Operations

• New Built Drilling Rig “Krechet” for Sakhalin-1 Project
The stage 2 development of the Odoptu field will be carried out with a new high technology Rig, for drilling nearly 32 wells during and will capture nearly 400 MBO during the rest of the project life.

The rig is similar to Yastreb rig presently drilling in Chayvo but has capability to drill extra long horizontal sections and has superior mobility due to smaller modules, which can be easily dismantled, transported and assembled at site. This feature is useful as the drilling in stage 2 development of Odoptu is planned from two sites (NWS & SWS) around 9 Km apart.

About ONGC Videsh
ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India, and is India’s largest international oil and gas E&P Company. At present, ONGC Videsh has 37 projects in 17 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Russia, South Sudan, Sudan, Venezuela, Vietnam and New Zealand. ONGC Videsh is currently producing about 224,500 barrels of oil and oil equivalent gas per day. For more information visit: https://www.ongcvidesh.com

About ONGC
ONGC’s market capitalization as on 14 December 2016 was INR 2,610 billion (US$ 38.6 billion). During the financial year ended 31st March, 2016, ONGC Group had produced 57.38 MMT of oil and oil equivalent gas (MMTOE) (approx. 1.2 MMboe per day); the Consolidated Gross Turnover was INR 1,429 billion (US$ 21.83 billion) during FY’16. For more information visit: http://www.ongcindia.com

ONGC Videsh and PDVSA sign agreement for payment of Dividend and Financing of San Cristobal Project

ONGC Videsh Limited (ONGC Videsh) and Petroleos De Venezuela S.A. (PDVSA) through their relevant subsidiaries signed two definitive agreements for facilitating redevelopment of the San Cristobal joint venture project in Venezuela on 4th November 2016. The agreements were signed by ONGC Videsh CEO Mr Narendra K Verma and the Hon’ble Minister of Petroleum of Venezuela and President PDVSA, Mr Eulogio Del Pino, in the august presence of Hon’ble President of Venezuela, Mr Nicolas Maduro.

San Cristobal project (Project) is located in the Zuata Subdivision of proliferous Hugo Chavez Fria Orinoco Heavy Oil belt, in the Junin Norte Block in eastern Venezuela. The joint venture was incorporated in April 2008 consequent to a Memorandum of Understanding (MOU) signed in March 2005 at New Delhi to jointly develop Oil and Gas Exploration and Production Projects in Venezuela. ONGC Videsh has an equity interest of 40% in the Project with PDVSA holding the balance 60%.

The agreements provide for mechanism to liquidate ONGC Videsh’s outstanding dividends from the Project while at the same time, ONGC Videsh needs to obtain long term financing for the capital investments for implementing the Remediation Plan of the Project. The Remediation Plan aims to invigorate the field from its current production level of about 18,000 bbl/day to 27,000 bbl/day by the use of water flooding technique.

Earlier on 1st August 2015 ONGC Videsh and PDVSA had entered into a Memorandum of Cooperation on Training and Education under which ONGC Videsh has sponsored training for a batch of petroleum engineers from PDVSA in masters programs at the premier petroleum institute of India – Indian School of Mines, Dhanbad. The petroleum engineers upon completion of their specialized course shall be posted in the joint ventures of ONGC Videsh with PDVSA.

The ONGC alliance with PDVSA in the upstream sector is strategic in nature and will continue to build and grow with strong cooperation, in order to achieve corporate goals.

About ONGC:
ONGC’s market capitalization as on 4th November 2016 was INR 2,305.70 billion (USD 34.56 billion). During the financial year ended 31st March, 2016, ONGC Group had produced 57.38 MMT of oil and oil equivalent gas (MMTOE) (approx. 1.2 MMboe per day); the Consolidated Gross Turnover was INR 1,429 billion (US$ 21.83 billion) during FY’16.
ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India, and is India’s largest international oil and gas E&P Company. At present, ONGC Videsh has 37 projects in 17 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Russia, South Sudan, Sudan, Venezuela, Vietnam and New Zealand. ONGC Videsh is currently producing about 237,000 barrels of oil and oil equivalent gas per day.

For more information on ONGC visit: http://www.ongcindia.com. For more information on ONGC Videsh visit: https://www.ongcvidesh.com

ONGC Videsh completes acquisition of 11% additional interest in Vankor Field located in East Siberia of the Russian Federation

Press release

ONGC Videsh completes acquisition of 11% additional interest in Vankor Field located in East Siberia of the Russian Federation
ONGC Videsh Limited (ONGC Videsh), a wholly owned subsidiary of Oil and Natural Gas Corporation Ltd. completed on 28th October, 2016, the acquisition of additional 11% equity from Rosneft Oil Company, in JSC Vankorneft (Vankorneft), a company organized under the law of Russian Federation which is the owner of Vankor Field and North Vankor license for a consideration of US$ 930 million, thus increasing its equity to 26%. Rosneft, the national oil company of Russia continues to hold the majority (50.1%) shares of Vankorneft while the balance 23.9% equity is held by the Indian consortium of Indian oil PSUs comprising Oil India Limited, Indian Oil Corporation Limited and Bharat Petro Resources Limited.

Earlier on 31st May, 2016, ONGC Videsh had completed the acquisition of 15% equity in Vankorneft, for a consideration of US$ 1,268 million. The agreement for acquisition of 11% additional equity subject to satisfaction of several Conditions including approvals from the Russian and Indian government authorities was signed by Mr. Narendra K. Verma, CEO & Managing Director, on behalf of ONGC Videsh and Mr. Igor Sechin, CEO, Rosneft in Moscow on 14th September, 2016. The Completion within very short period of the binding agreement reflects the speed and cooperation with which both ONGC Videsh and Rosneft have moved and the support that the investments by Indian companies in Russia’s Oil sector enjoy with the Russian and Indian governments. CEOs of ONGC Videsh and Rosneft signed an agreement to this effect in the sidelines of BRICS Goa summit.

Vankor is Rosneft’s (and Russia’s) second largest field by production and accounts for 4% of Russian production. The daily production from the field is around 410,000 barrels per day of crude oil (bopd) on an average and together with earlier acquisition of 15%, ONGC Videsh’s share of daily oil production from Vankor will be about 107,000 bopd. The acquisition of additional 11% would add about 30% to the existing ONGC Videsh’s production at the current rate and approximately 2.2 MMt of oil and 1.0 BCM of gas annually.

The present transaction strengthens ONGC Videsh presence in Russia and is consistent with its stated strategic objective of adding high quality international assets to its existing E&P portfolio. This acquisition also has significant strategic importance to India, both in terms of augmentation of India’s Energy Security as well as enhancing India’s stature in the global political and economic arenas.

About ONGC Videsh
ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India, and is India’s largest international oil and gas E&P Company. At present, ONGC Videsh has 37 projects in 17 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Russia, South Sudan, Sudan, Venezuela, Vietnam and New Zealand. ONGC Videsh is currently producing about 215,000 barrels of oil and oil equivalent gas per day. For more information visit: https://www.ongcvidesh.com

About ONGC
ONGC’s market capitalization as on 27th October 2016 was INR 2,488 billion (US$ 37.2 billion). During the financial year ended 31st March, 2016, ONGC Group had produced 57.38 MMT of oil and oil equivalent gas (MMTOE) (approx. 1.2 MMboe per day); the Consolidated Gross Turnover was INR 1,429 billion (US$ 21.83 billion) during FY’16. For more information visit: http://www.ongcindia.com

Narendra K Verma, Managing Director, ONGC Videsh Visits Vankor Field, Russia

ONGC Videsh Limited, on 31^st May, 2016, completed the acquisition of 15% equity from Rosneft Oil Company, in CSJC Vankorneft, owner of Vankor Field and North Vankor license. ONGC Videsh is also in the process of acquiring additional 11% stake in Vankorneft. Vankor is Rosneft’s (and Russia’s) second largest field by production and accounts for 4% of Russian crude oil production. The daily peak production from the field is around 421,000 barrels of oil per day (bopd).

Mr. Narendra K Verma, Managing Director alongwith other officials from ONGC Videsh visited the Vankor field on 10^th and 11^th October 2016. Mr. Verma was warmly received at the Kransnoyarsk airport by Vankor Team led by General Director Arakady Vladimirovich Kuznetsov.

General Director Arakady Vladimirovich Kuznetsov welcoming MD at Kransnoyarsk airport

Later the ONGC Videsh team was taken to a small town called Igarka, around 2 hours by flight north from Kransnoyarsk. Thereafter the team was taken to Vankor by Helicopter. Due to the terrain and weather conditions, there are no road linkages from Vankor fields to mainland Russia.

The ONGC Videsh team alongwith General Director Arakady Vladimirovich Kuznetsov, Chief Engineer Dmitry Viktorovich Filimonov and Chief Geologist Aleksandr Valerievich Sorokin took an aerial tour of Vankor facilities and Vankor clusters.

Aerial Survey of Vankor fields

To the north of Vankor is Suzun cluster where around 42 active well are producing 75000 bopd. Lodochnoye which is to the south of Vankor is under development and plan is to start production in 2018. Tagul also south to Vankor is also under advanced development where multiple pads are under preparation and drilling is ongoing with first production expected in 2017. The team also saw the Vankor – Purpe pipeline. Thereafter, the team took an aerial tour of Vankor facilities.

MD with Vankor Team at Vankor Helibase

Later in the evening, the team visited the south free water knock out facilities, followed by a visit to a well pad number 4 with 9 producers and 5 injectors. The delegation was then taken to the Central Processing Facilities and the main pumping station.

MD with Vankor Team at a Vankor Well Pad

In the evening, a detailed presentation was made by the Vankor management team to Mr. Verma which was followed by discussions on the various facets of field operations.

MD with Vankor Management in Vankorneft Board Room in field

On the way back the delegation visited town of Igarka along with Oleg Degtyaryov, Head of Regional Government Relations Department, who accompanied the delegation to the Museum of Permafrost in Igarka and also discussed Vankor’s community development activities to support local population.

MD recording his views at Igarka