As Mr Satpal Garg remitted office of Director (Finance), ONGC Videsh on August 31, 2016, the memory lane was inundated with narratives of a career that was illustrious and eventful. Notwithstanding the deluge that brought the capital city to a standstill, ONGC Videsh Delhi office was choc-a-bloc with colleagues who had come to bid adieu to Mr Garg.

The farewell event began with a presentation on the milestones and initiatives in his 34 year long remarkable career.

In his address, Mr Garg recounted with great satisfaction his association with ONGC and ONGC Videsh. He reminisced the same also in his email to all employees of ONGC Videsh, “My association with ONGC Videsh started in September 2008, when I joined as Director (Finance). The crude oil is a very volatile commodity as prices touched peak of US $147/bbl and within 6 months by January 2009, they were about US $33/bbl. The first learning of crest and trough of cash flows that an International Oil Company is subjected to and managing the costs and acquisitions within the resource base with the intention to have a global foot print. We are back to the same level after seeing a high and stable price of above US $100/bbl from 2010 to 2014. Prices started declining in 2014 and touched a low of US $26/bbl. During this period, I am glad to have been part of the vibrant and dynamic team which not only successfully ventured through the tough times but also saw its profit reaching the zenith during 2013-14 and production crossing 200K boepd mark, post-acquisition of Vankor.”

Mr NK Verma, MD, ONGC Videsh, calling him one of the four pillars of ONGC Videsh, said, “Mr SP Garg steered the financial lineup during the period of maximum growth. He scanned, assessed, and sifted the assets like Imperial Energy, Azerbaijan, Mozambique meticulously and contributed immensely. His exemplary performance added another dimension to financial management in ONGC Videsh.”

Mr Verma underlined the difference in the basic tenets of finance and exploration. “We had ample differences on many fronts. It is by training that finance thinks linearly while as an explorationist, we are trained to think laterally. There is a value for both. I wish we had more time for collaboration, “ he rued.

He enjoined upon the finance team, with the new leader Mr Vivekanand at the helm, to work cohesively and in an integrated manner so that ONGC Videsh takes that leap from being a junior partner to a majority operator.

Mr PK Rao, Director (Operations) in his address said, “In the last two years of my association with Mr SP Garg, we had  a great working relationship. His 8-year tenure as the Director Finance saw many mega acquisitions. We will be missing his guidance.”

Speaking on the occasion, Mr Sudhir Sharma, Director (Exploration) highlighted the fact that Mr Garg has been the longest serving director on the board of ONGC Videsh.” He has seen the company transform from a Schedule B company to Schedule A company and many remarkable acquisitions. He joined in 2008 when we closed the Imperial deal and today when this year he will have the satisfaction of closing the Vankor deal,” he said.

Setting the tone for the farewell event, Mr Vivekanad appreciated the support that was always forthcoming from Mr Garg.

Today, Mr Vivekanand  has just assumed the charge as the new Director (Finance) of ONGC Videsh. He brings over three decades of experience as Finance and Accounting professional in the upstream oil and gas industry both in domestic and international operations.

He has handled the whole gamut of finance functions such as Treasury, Taxation, Budgeting, Accounting, Internal Audit, Marketing, Risk Management, Business Process Re-engineering, etc. He has played key roles in financing campaigns of ONGC Videsh raising financing of nearly USD 6 billion in the last three years.

As the business scion Narayan Murthy famously said, “When you run a part of the relay and pass on the baton, there is no sense of unfinished business in your mind. There is just the sense of having done your part to the best of your ability. That is it. The hope is to pass on the baton to somebody who will run faster and run a better marathon.”

ONGC Videsh is geared up for the marathon!

Mr. P.K Rao, Director (Operations), ONGC Videsh visited Moscow and Tomsk of Russian Federation and reviewed the newly acquired Asset Vankorneft and Imperial Energy during 3^rd to 5^th August, 2016. He was accompanied by Mr. K.S. Pandey, Regional President- Russia Business Unit of ONGC Videsh. At Moscow, he met with Mr. Eric Maurice Liron; First Vice President of Rosneft, the major shareholder of JV Vankorneft. This was the first meeting of Director (Operations) with the top management of the company, post-acquisition and important critical issues were discussed to fine-tune the operational modalities of the Asset keeping in view the interest of ONGC Videsh. Vankorneft, with its current production of 440,000 bopd is the biggest contributor to ONGC Videsh production with our share of 15%.

The two days’ meeting with the top management of Imperial Energy at Tomsk was very fruitful, as the Asset is presently going through a phase of rejuvenation. Detailed project planning is more critical in view of harsh climatic conditions and limited logistic support to isolated fields.

Mr. P.K. Rao chairing the meeting at Imperial Energy

Director (Operations) visited Tomsk Regional Home for Children, which is partially supported by Imperial Energy under its CSR activity.  He donated household appliances for the children. This social institution, the only one of its kind in Tomsk region, provides home and care for orphan children up to four years old suffering from organic damage of central neural system. Director (Operations) was greatly impressed by the efforts of the team to create a home away from home for these children.

Distributing toys at the children’s home in Tomsk

On the occasion of 70^th Independence Day, CMD ONGC conferred upon the project ACG, Azerbaijan with a Commendation Certificate for “Runner up Best Performing Asset” of ONGC Videsh for 2015-16. The commendation has been conferred for excellence in performance and significant contribution to overall growth of the Organization.

Team Azerbaijan receives the award from CMD

Mr KB Moon, GM (P) and Dr Ravi Misra DGM (G) received the award on behalf of Mr Balbir Singh Regional President (CIS) and entire BU-CIS team.

ONGC Videsh, on 28th March 2013, acquired 2.7213% participating interest in ACG PSA under which the giant Azeri-Chirag-Deep Water Gunashli oil Field of Azerbaijan are operated and 2.36% PI in BTC Pipeline.

Director (Exploration) Mr Sudhir Sharma with team Azerbaijan ONGC Videsh

ACG Field is the largest oil and gas field complex of Azerbaijan operated by BP and is located in the South Caspian Sea with water depth ranging from 120-180m and about 95 km off the coast of Azerbaijan.

The Citation

In 2015-16 ACG has produced 231mmbbls of oil at an average rate of about 632 Kbopd. During the year ONGC Videsh’s share of production is 6.29mmbbl (0.847MMT) of oil and 0.118bcm of gas.

Block 06.1 of Vietnam, which was conferred CMD ONGC commendation Certificate for “Best performing Asset of ONGC Videsh” for FY 2014-15, has once again repeated its exemplary performance, bagging the CMD’s commendation Certificate for “Best performing Asset of ONGC Videsh” for FY 2015-16 as well.

Ofshore Platform at Lan Tay Field

 Last year, ONGC Videsh was awarded “Certificate of Merit” by the Prime Minister of Vietnam, for its contribution to Petroleum Industry of Vietnam.

Block 06.1 is an offshore Block located 370 km southeast of Vung Tau on the southern Vietnamese coast with an area of 955 SKM. The exploration License for Block 06.1 was acquired in 1988 (PSC signed on 19 May 1988). The present Partners are – ONGC Videsh 45%, TNK Vietnam 35% (Operator) and Petro Vietnam 20%. In 1992-93, Hydrocarbon Discoveries (Gas with Condensate) were made in Lan Do &LanTay. Lan Tay field was first to be developed and the commercial production of gas from Lan Tay started in January, 2003. Lan Do field Development was completed in FY 2013 and first gas production commenced on 7^th October 2012.

Rig Hakuryu 5, flaring gas produced during production testing

 ONGC Videsh’s share of production from the Block during FY 2016 was 1.659 BCM of gas and 0.029 MMT of condensate, compared to 1.774 BCM of gas and 0.030 MMT of condensate during FY 2015.

Further, there was an upward revision of GIIP of Lan Do, field from 19.00 BCM to 23.00 BCM,with the approval of Prime Minister, Socialist Republic of Vietnam, on 6^th Aug 2015.

Drilling campaign of PhongLan Dai Deep exploration well (PLDD-1X) was successfully carried out during 8^th March – 11^th April 2016, with gas discovery in T85 Carbonates.

Block 0 6.1 gas serves as a feed stock for about 12% of electricity generation of Socialist Republic of Vietnam.

Independence Day Message of MD, ONGC Videsh

Mansarovar Energy Colombia Limited (MECL) which is a joint venture of India’s ONGC Videsh Limited and China’s SIPC (SINOPEC International Exploration and Production Corporation) conducted its 32^nd Board and 9^th Shareholder meet in Delhi recently. During the meeting crucial issues including company’s performance, strategic plans and growth were discussed and deliberated.

The four-day meet started with MECL Board meeting from 26^th to 28^th July which was attended by Mr. Sudhir Sharma, Director (Exploration), Mr. Sanjiv Nath, Regional President, Latin American Countries and project team from ONGC Videsh and Mr. Zhang Jianqiang, Mr XouLunfrom SIPC side. The meet was successfully concluded with vital deliberations by active participation of representatives from ONGC Videsh, SIPC and MECL, Colombia.

Mr Sudhir Sharma complimented MECL on good financial performance. He emphasized that the Mansarovar team should be focused on planningand implementation of key strategic initiatives on which future growth of Mansarovar is dependent. He encouraged Mansarovar to keep looking for upsides and possibilities to increase production from existing asset.

Mr Zhang, Director (Business Strategy)-SIPC congratulated the MECL team for achieving good performance in terms of OPEX reduction & satisfactory financial results. He also advised that Mansarovar should build good relationship with stakeholders for smooth running of the project. He stressed Mansarovar to focus on building technical capabilities while operating in the existing asset.

On 29^thJuly, MD, ONGC Videsh, Dir (Expl), Regional President-LAC, Project team from ONGC Videsh and President – SIPC, Director from SIPC along with MECL team participated in the MECL Shareholder meet. The one-day long Shareholder meet concluded with detailed discussion concerning MECL present performance and future growth.

Mr  Feng, President-SIPC expressed his satisfaction with the progress of the Company and also co-operation between India& China. He advised Mansarovar to find a balance between profitable and sustainable development. He also suggested that MECL should pursue opportunities for its growth, but each opportunity should add value to the shareholder.

Mr N.K Verma, MD, ONGC Videsh emphasized that MECL has become a role model for cooperation and collaboration between Indian and Chinese companies. The Joint Venture has been performing nicely and has a good reputation. He suggested Mansarovar team for optimization of expenditure and going for cost control in current market condition. He supported SIPC view on inorganic growth with value creation for the shareholder. He opined that this is a good time for both shareholders to look forward for more collaboration inside and outside Colombia.

Mansarovar was acquired in 2006 and this year marks 10 years of its operations in E&P business in Colombia. The occasion was commemorated through a book release ceremony organized on evening of 29^th July. MECL Coffee table book was released by MD, ONGC Videsh and President, SIPC in the presence of Directors on MECL Board and team from MECL. Mr N.K Verma and Mr Feng complimented MECL on its decade long potent presence in the E&P business and wished them good fortune in the times to come.

ONGC Videsh has signed MoU with ONGC recently in which targets for 2016-17 are set higher than the 2015-16 performance of the company. Oil and gas production excellent target for 2016-17 is 7.939 MMT and 4.056 BCM respectively and includes production from recently acquired 15% stake in Vankorneft, Russia. For 2015-16, the excellent target was 5.550 MMT and 3.325 BCM and actual production was 5.510 MMT and 3.406 BCM respectively. Revenue excellent target for 2016-17 is Rs. 15,375 Crores against the actual sales turnover of Rs. 12,543 crores in 2015-16. CAPEX (including new acquisitions) excellent target for 2016-17 is Rs. 14,843 crore against the provisional CAPEX of Rs. 6,783 crore in 2015-16.

Mr. D K Sarraf, CMD, ONGC and Mr. N K Verma, MD & CEO, ONGC Videsh exchanging MoU document.

Some parameters in the MOU 2016-17 will be evaluated on the improvement made by the company in 2016-17 over 2015-16. These include Reduction in production decline rate over previous year, Reduction in Claims against the Company not acknowledged as debt, over the previous year, raised by others and Reduction in Direct Lifting cost over previous year and Reduction in Total expenses per MMTOE as per audited consolidated Balance Sheet over previous year.

Some project related parameters are also included in the MOU 2016-17 like projects undertaken for technology up-gradation and % projects CAPEX completed during the year without time and cost overrun to total value of projects CAPEX, for which the excellent target is set at 100%.

Other parameters include 1P reserves net addition, Trade Receivables as percentage of Revenue from Operations and PBT as percentage of revenue from operations.

A delegation of five students from Mozambique arrived recently in Delhi under the CSR initiative of ONGC Videsh. They are here to pursue a 5 year B. E. program in Petroleum Engineering at Indian School of Mines, Dhanbad starting from the current session 2016-17. ONGC Videsh is sponsoring 15 students (five from Mozambique and 10 from South Sudan) for pursuing this prestigious course.

The 5 year Degree Course has been specially structured for these foreign students sponsored by ONGC Videsh. It has a one year foundation course to sharpen the skills of students in various subjects including English language followed by a four year regular degree course. These students have been selected by ONGC Videsh in consultation with the Indian Embassies at Mozambique and South Sudan.

The students visited the office of the High Commissioner of Mozambique at Delhi and also visited ONGC Videsh office for a brief interaction with Mr PK Rao, Director (Operations) and Team Mozambique. Two of them are employees of INP (the regulatory body) of Mozambique.

Mr PK Rao, Director (Operations) and the Mozambique team with students from Mozambique

 Director (O) underscored to them the huge opportunity offered by ONGC Videsh. The prominence of Indian School of Mines, Dhanbad, the premier institute of petroleum engineering in India, was explained to them.

Team Mozambique headed by Mr Akhil Verma and consisting of Mr AK Ray, Mr S Shukla, Mr Sujay Sinha and Mr Abhitesh Ranjan had a detailed interaction with the students. The contribution of ONGC Videsh towards the development of Rovuma Area-1 Basin of Mozambique and the significant upside this project would have on the economy of Mozambique was explained. It was also highlighted that the students after their graduation can contribute significantly to the development of the project and their nation.

The Director (O) and Team Mozambique wished the students good luck before their departure to Dhanbad accompanied by Mr A K Ray for the formal admission.