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 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
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
ONGC Videsh Limited, on 31st 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 10th and 11th 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
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
ओएनजीसी विदेश लिमिटेड में 14 से 28 सितम्बर, 2016 तक हिन्दी पखवाड़े का आयोजन किया गया।
इस पखवाड़े के दौरान प्रबंध निदेशक के संदेश का वैबसाइट पर प्रचार किया गया तथा विभिन्न हिन्दी प्रतियोगिताओं जैसे कार्यालयीन कार्य हिन्दी में करने, निबंध, नारा लेखन, प्रश्नमंच, सुलेख, श्रुतिलेख, कविता पाठ, आशुभाषण एवं अन्य प्रतियोगिताओं का आयोजन किया गया जिसमें कार्मिकों ने उत्साहपूर्वक भाग लिया। कार्यालय में हिन्दी के बैनर लगाए गए। 28 सितम्बर को साँय 4.00 बजे 45 सीटर सम्मेलन कक्ष मे हिन्दी पखवाड़े का भव्य समापन समारोह एवं पुरस्कार वितरण समारोह का आयोजन किया गया जिसमें प्रबंध निदेशक ने सभी कार्मिकों को प्रतियोगिताओ में भाग लेने पर एवं पुरस्कार प्राप्त करने पर बधाई दी । उन्होंने कार्मिकों को संबोधित करते हुए कम्पनी में लागू प्रोत्साहन योजनाओ की जानकारी हासिल करने तथा इन योजनाओं का अधिक से अधिक लाभ उठाने का अनुरोध किया । उन्होंने भारत सरकार की राजभाषा नीति के तहत कार्मिकों के संवैधानिक दायित्त्वो पर भी प्रकाश डाला।
समारोह के मंच का सफलतापूर्वक संचालन श्री अजीत कुमार देशवाल, कार्यकारी निदेशक ने किया ।
हिन्दी दिवस के अवसर पर ओएनजीसी विदेश लिमिटेड के दिल्ली कार्यालय में राजभाषा पखवाड़ा का उद्घाटन किया गया। इस अवसर पर मंच का संचालन करते हुए श्री अजीत कुमार देशवाल, कार्यकारी निदेशक ने मंचासीन अधिकारियों सहित सभी उपस्थित कार्मिकों का स्वागत किया। उन्होंने कार्मिकों को अधिकाधिक हिन्दी में कार्य करने हेतु प्रोत्साहित किया।
हिन्दी पखवाड़े का उद्घाटन करते समय श्री पी. के. राव, निदेशक (प्रचालन) ने कहा कि ओवीएल में हिंदीमय वातावरण बनाने के लिए सभी कार्मिकों का सतत व सराहनीय योगदान है। उन्होंने संसदीय राजभाषा समिति द्वारा उपलब्ध कराई गई प्रश्नावली में तथ्यपूर्ण आंकड़े दिये जाने का सुझाव भी दिया। हम अगर पूरा वर्ष हिन्दी में कार्य करते रहें तो माननीय समिति को उपलब्ध कराई जाने वाली जानकारी में काफी बढ़ोतरी हो सकती है। साथ ही यह भी सुझाव दिया कि हमें हस्ताक्षर हिन्दी में ही करने चाहिए।
श्री सुधीर शर्मा, निदेशक (अन्वेषण) ने इस अवसर पर हिन्दी पखवाड़ा आयोजन के सफल होने तथा अपने कामकाज में अधिकाधिक सरल एवं आम बोलचाल की हिन्दी के प्रयोग को बढ़ाने का सुझाव दिया। श्री सुधीर शर्मा ने इस बात का भी उल्लेख किया कि पहली बार ओएनजीसी विदेश की बोर्ड मीटिंग मे मूल रूप से हिन्दी में एजेंडा प्रस्तुत किया गया।उन्होंने मानव संसाधन विभाग द्वारा बताए जा रहे कॉर्पोरेट ब्रोथर को हिन्दी में भी बनाने का सुझाव दिया।
श्री विवेकानन्द, निदेशक (वित्त) ने अपने उद्गार प्रकट करते हुए कहा कि राजभाषा नीति का कार्यान्वयन किसी एक अधिकारी या कार्मिक का दायित्व नहीं है, इसमें सभी का सहयोग अपेक्षित है। इसके साथ ही श्री विवेकानन्द ने ओएनजीसी विदेश में पहली बार ई-मेल में नाम हिन्दी में किए जाने की सराहना की।
श्री अजीत कुमार देशवाल ने पहली बार ई-मेल में नाम हिन्दी में किए जाने के लिए सुश्री प्रीति चौधरी, राजभाषा अधिकारी की सराहना की।
हिन्दी पखवाड़ा समारोह के उद्घाटन के पश्चात् सुलेख एवं आशुभाषण प्रतियोगिताओं का आयोजन किया गया जिसमें कार्मिकों ने उत्साहपूर्वक भाग लिया।
ONGC Videsh (and its wholly owned subsidiary ONGC Videsh Vankorneft Pte. Ltd., Singapore – OVVL) jointly signed definitive agreements with Rosneft, the national oil company of Russia for acquiring additional 11% shares in JSC Vankorneft, a company organized under the law of Russian Federation which is the owner of Vankor Field and North Vankor license. Earlier, ONGC Videsh had successfully closed the acquisition of 15% shareholding interest on 31st May, 2016. After the closing of the present transaction, ONGC Videsh will raise its participation share in Vankorneft to 26%. The acquisition is subject to relevant Board, Government and Indian and Russian regulatory approvals and is expected to close by end of 2016.
The agreement was signed by Mr. Narendra K. Verma, CEO & Managing Director, on behalf of ONGC Videsh and Mr. Igor Sechin, Chairman Board of Directors, Rosneft in Moscow on 14th September, 2016.
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 421,000 bpd of crude oil on an average and together with earlier acquisition of 15%, ONGC Videsh’s share of daily oil production from Vankor will be about 110,000 bpd. The acquisition of additional 11 % bears significant strategic importance and 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 provides an opportunity to ONGC Videsh to enhance its 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 and has total oil and gas reserves of about 596 MMTOE as on 31st March, 2016. For more information visit: https://www.ongcvidesh.com
About ONGC
ONGC’s market capitalization as on 14th September 2016, was INR 2123 billion (US$ 31.7 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 and total oil and gas reserves were 2,022 MMTOE as on 31st March 2016. For more information visit: http://www.ongcindia.com