ONGC Videsh to acquire 15% interest in Vankor Field located in East Siberia of the Russian Federation

New Delhi, 4 September, 2015: ONGC Videsh Limited signed definitive agreements to acquire up to 15% shares in CSJC Vankorneft, a company organized under the law of Russian Federation which is the owner of Vankor Field and NorthVankor license. Rosneft Oil Company, NOC of Russia holds 100% shares in Vankorneft. The acquisition is subject to relevant Board, Government and regulatory approvals and is expected to close by mid of 2016.

The agreement was signed by Mr. Narendra K. Verma, CEO & Managing Director, ONGC Videsh and Mr. Igor Sechin, Chairman Board of Directors, Rosneft during the Eastern Economic Forum (EEF) held in Vladivostok today in the presence of H.E. Mr. Vladimir Putin, President of Russian Federation.

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 442,000 bpd of crude oil on an average with ONGC Videsh’s share of daily oil production at about 66,000 bpd.

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.

Citi worked as the sole exclusive financial advisor whereas Dentons worked as legal advisor to ONGC Videsh on this transaction. Ernst & Young were the tax and accounting consultants.

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 36 projects in 17 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Kazakhstan, Libya, Mozambique, Myanmar, Russia, South Sudan, Sudan, Syria, Venezuela, Vietnam and New Zealand. ONGC Videsh is currently producing 167,000 barrels of oil and oil equivalent gas per day and has total oil and gas reserves of about 647 mmtoe as on 31^st March 2015. For more information visit www.ongcvidesh.com

About ONGC

ONGC’s market capitalisation as on 3^rd September 2015, was INR 1,960 Billion (US$ 29.6 Billion). During the financial year ended 31^st March 2015, ONGC Group had produced 59.71 MMTOE (approx..1.2 million of oil equivalent per day); the gross revenue was INR 1,608.95 Billion (US$ 26.31 Billion) and total oil and gas reserves where 2,035 mmtoe as on 31^st March 2015. For more information visit www.ongcindia.com

About Rosneft

Rosneft is the leader of Russia’s petroleum industry and the world’s largest publicly traded petroleum company. Rosneft activities include hydrocarbon exploration and production, upstream offshore projects, hydrocarbon refining, and crude oil, gas and product marketing in Russia and abroad.

The Company is included in the list of strategic companies and organizations of Russia. The main Company shareholder (69.50%) is OJSC ROSNEFTEGAZ, a 100% state-owned company. BP owns another 19.75%, and the remaining 10.75% of shares are publicly traded. Rosneft conducts its exploration and production activities in all key hydrocarbon provinces of Russia including West Siberia, Southern and Central Russia, Timan-Pechora, East Siberia, Far East, and Russian continental shelf including the Arctic region. The Company is also embarking on and implementing a number of projects in Venezuela, Brazil, USA, Canada, UAE, Algeria, Norway, Kazakhstan, Vietnam and Abkhazia.

Mr. Sudhir Sharma takes over as Director (Exploration), ONGC Videsh

Sudhir Sharma has taken over as the Director (Exploration) in the Board of ONGC Videsh, the international petroleum company of India. He brings over three decades of experience in various domestic and overseas capacities to this role.

He was most recently the Country Manager and Legal Representative for Company’s Colombia operations for over a year. Earlier, as Head of Business Development in ONGC Videsh, he managed the global business development activity of the Company with the objective to acquire oil and gas Assets overseas. This was his second stint with ONGC Videsh.

In 2003 consequent upon the acquisition of a stake in Sudan, Mr. Sharma led two Exploration Blocks, comprising multi-disciplinary, multi-nationality teams, in the GNPOC contract acreage. During his tenure, exploration for deeper objects and basement was initiated for the first time in Muglad Basin.

He started his career in 1980 when he joined ONGC’s prestigious Institute of Petroleum Exploration in Dehradun as a young Graduate Trainee after obtaining a Master’s degree in Geology from Lucknow University. He pursued higher studies leading to M.Tech in Petroleum Exploration from Indian School of Mines, Dhanbad during 1983-1984. Known for his varied experience in the domestic and overseas E&P Industry in the fields of Operations, Basin Evaluation, Petroleum Resource, Asset acquisition and Exploration Management, Mr. Sharma has a few scientific research papers to his credit in association with work colleagues.

ONGC Videsh adjudged ‘Best Miniratna’ at Dun & Bradstreet PSU awards 2015

ONGC Videsh received the ‘Best Miniratna’ award at Dun & Bradstreet PSU Excellence Awards 2015 for its stellar management and leadership. The award was received by MD of ONGC Videsh Mr. N.K. Verma. presence of who’s in the corporate world.

N.K. Verma receiving the award

ONGC Videsh shared the stage with leading corporate houses of India like SAIL, GAIL, PFC, EIL, Hindustan Aeronautics, Container Corporation of India Ltd among many others. There were stringent yardsticks and tough competition in all the sectors as the awards were decided by eminent jurists on various parameters of performance and best practices across the industry.

N.K. Verma with the ‘Best Miniratna’ award

ONGC Videsh’s success at Imperial Energy, Russia

A far-flung location. Punishing weather conditions. Thick snow covers the expansive landscape. Sub-zero temperatures compounded by bitter winds. In this backdrop of harsh environs, a critical campaign took off, a first of its kind in Western Siberia.

The hard-to-recover reserves from tight reservoirs of Snezhnoye field in the Tomsk region of Siberia presented many challenges. Non-availability of experienced contractors did not deter the dedicated team of Imperial Energy. New Technology Induction brought exciting results and two horizontal wells of 1500m horizontal length each drilled in Naunak Formation of Snezhnoye field produced 58,000 m3/d of gas, 2313 bbl/d of liquid and 1037 bopd. The oil production is expected to reach 1200 barrels per day. Well is currently under stabilization. Earlier, single stage fracturing in horizontal wells in these tight formations yielded a maximum of 150 bopd and the rate was declining very fast.

Leading the campaign from the front were NK Verma, MD and PK Rao, Director (Operations), ONGC Videsh who visited the field along with CEO- Imperial Energy, S. Durga Prasad to review the activities. In the very exacting Siberian winter when the field temperature was as low as minus 35 degree Celsius, their presence gave the much needed impetus. Their guidance during the course of planning and execution was of great inspiration to team Imperial.

Review of Imperial Energy & Snezhnoye field visit

Around 80% of the reserves of Imperial Energy are locked up in low permeability tight reservoirs with very low permeability (hard-to-recover) and are difficult to exploit profitably with conventional methods. After due diligence, Liberty Resources, a Denver, USA based company having wide experience in exploitation of hard-to-recover reserves through multistage fracturing in horizontal wells, was engaged as technology partner.

Imperial Energy is a fully owned subsidiary of ONGC Videsh Ltd., an international arm of Oil and Natural Gas Corporation Ltd. Imperial Energy assets are located in Tomsk region, Russia, which is a part of West Siberian petroliferous Basin. The imperial acreages are located around Ob River. A cornerstone for Imperial Energy, this breakthrough will bring much desired turnaround and pave way for future successes.

$Photograph-4 Overview of Hydrofracturing operation$

Hydro-Fracturing Fleet at Well SN#520, Snezhnoye Field

The CEO Business Leadership Forum strengthens Indo-Canadian partnership

The CEO Business Leadership Forum on Energy Partnerships was organised by ONGC Videsh on 4^th July, 2015 in downtown Calgary, Canada.

Mr Dharmendra Pradhan, India’s Minister of State (Independent Charge) Petroleum and Natural Gas presented the overall energy scenario of India and the various avenues available for the Indo-Canadian partnership. The minister exhorted the Canadian CEOs to come and invest in India. This was followed by presentations by the CEO of Indian Oil Corporation, CEO of ONGC Videsh and EIL.

Mr Pradhan averred that one has to visit India to see the extent of things that are changing. He said that his government under the visionary leadership of Prime Minister Mr Narendra Modi has taken upon itself to overhaul the way the business is done in India. He emphasized that the government aspires to create a business context rooted in transparency.

Representatives from TD, Scotia Waterous, BMO, Blakes, Delloite, PWC, HIS shared their own capabilities and offered their services to Indian companies to help them pursue good business opportunities in the country. Rick Orman, Former Energy Minister of Alberta complimented the Minister for taking Canada-India business relationship to greater heights.

The Indian side led by Mr. Dharmendra Pradhan was accompanied by senior officers from the Ministries of Petroleum, Coal and Power. Mr. Jay Park of Park Energy presented a hat, a gift representing Canada’s cultural heritage, to the Minister and CEO of ONGC Videsh, Mr NK Verma.

A confluence of business leaders, CEOs and think tanks from Canadian business community with existing and potential partnerships with India in energy sector, the forum was a great success.

Mann Ki Baat

ONGC Videsh celebrates International Yoga Day

The statuesque ashoka, arjuna and saptparni trees looked on with interest, as all roads and their tributaries led to India Gate this Sunday in Delhi, where thousands of yoga enthusiasts headed to celebrate the first International Yoga Day and be a part of a historical moment.

The ONGC Videsh team reached early at the atrium of Kailash building, on KG Marg. The morning was hot and humid but the energy did not dissipate. Gradually a gusty wind picked up speed, as if in appreciation of the early morning big turnout, and the champa trees in the courtyard did some amazing yoga postures. Lightening pierced the pallid sky and rain drops descended in a rhythm. The atrium by now was full and yoga experts Mr JK Sahni and Mr Shankar Thakur, who had kindly agreed to conduct the workshop, commenced the session.

The high ceiling of Kailash building resonated with the Om chant of the capacity crowd. The placid lake of ink blue, the vibrant colour representing ONGC Videsh, moved in unison. Leading from the front were Mr SP Garg, Director (Finance), Dr. Anil Bhandari, Director (Exploration), Mr PK Rao, Director (Operations), and senior officials of ONGC Videsh.

With many poses that aimed to relax body and mind, the session ended with shavasana.

Outside the grey skies opened at seams. Delhi that was reeling under the heat wave got some respite as the rain seemed to bestow blessings from the heaven. A befitting finale to a lovely morning of the Summer Solstice.

Hindi Workshop Organised in ONGC Videsh Ltd

World Environment Day observed at ONGC Videsh

Demonstrating the spirit and ethos of a responsible global corporate, ONGC Videsh observed World Environment Day 2015 on June 5 on the theme ‘Seven Billion Dreams, One Planet, Consume with Care’ by emphatically reiterating its commitment to environmental sustainability and sustainable development.

Mr. Narendra K. Verma, Managing Director, who was overseas, through his message called upon every employee to improvising further to meet society’s expectations for environmental and social performance from oil & gas sector.

Speaking on the occasion Mr. S.P. Garg, Director (Finance) & Officiating MD stressed upon the need of individual efforts by following the principle of ‘Reduce-Reuse-Recycle’ to arrest the rapid environmental decline. He stressed that the environmental drive should not be limited just for one day but should spread throughout the year in various areas like use of energy efficient equipment, use of LED in place of incandescent bulbs, using public transport, avoiding use of plastic bags, switching off equipment when not in use etc.

Mr. Anil Bhandari, Director (Exploration) explained the global climatic changes in terms of geological timeline and impact. He referred to 3D modeling of Himalayas to show the effect of global warming on the glaciers and its likely impact on the mankind. He implored all to contribute towards environment protection, whether it was through planting a sapling or reducing waste.

Mr. P.K Rao, Director (Operation) highlighted the imperatives of sound environmental practices in the E&P industry as environmental clearance norms are becoming stringent day by day. He referred to some of the best practices adopted by our projects like drilling cluster wells (even upto 20) from same well pad, using reed plantation for treating produced water etc.

World Environment Day program in progress

HSE group carried out week-long activities, which included awareness drive (mailing awareness presentations on daily basis), competitions for employees and their family members on the theme ‘Seven Billion Dreams, One Planet, Consume with Care’. An online quiz was also conducted. All these activities evoked great response, not only from those posted at HQ, but also from those posted overseas.

Informative short videos highlighting pressing environmental issues were also screened on this day. Through a brief presentation, Head HSE highlighted the theme and environmental issues being faced by oil and gas industry. Few case studies, where innovative techniques were deployed to mitigate environmental impacts in ONGC Videsh overseas operations, were shared with the jam-packed house.

EC members releasing memorabilia and giving away the prizes to the winners

Oil Minister Dharmendra Pradhan leads the Indian delegation at the 6th OPEC international seminar

Dharmendra Pradhan, Minister of State (Independent Charge) of Petroleum and Natural Gas visited Vienna, Austria to address the 6th OPEC international seminar. During his visit from June 2 – 4, the minister met top world leaders and held bilateral consultations with Secretary General of the OPEC. The minister was accompanied by CMD, ONGC Group of companies and MD, OVL during this high profile meet.

The meeting of the minister with Mr. Abdalla Salem El-Badri, Secretary General, OPEC on the sidelines of the 6th OPEC International Seminar and also with the Oil and Gas Ministers of various countries like Russia, Iran, Iraq, Kuwait, Bahrain, Angola and UAE is an indication of India’s emergence as one of the world’s biggest energy consumers. This comes at a time when India, which features among top-five oil refiners, is looking to diversify its crude sourcing to Latin America.