ONGC achieves second consecutive success in an onshore well Indico-1X, Colombia
ONGC Videsh Limited (OVL), the wholly owned subsidiary and overseas arm of Oil and Natural Gas Corporation Ltd. (ONGC), the National Oil Company of India has registered a significant discovery of oil in its onshore block CPO-5, Colombia, in Llanos Basin. OVL, which is Operator, holds 70% stake in the block along with its Partner Petrodorado South America S.A. Sucursal (PDSA), Colombia (30%).
The well Indico-1 was spudded on 7th November 2018 and completed the drilling on 15th December 2018. The well Indico-1 encountered Lower Sands (LS-3) of Une Formation (Cretaceous) at a depth of 9833 feet (MD) found to be oil bearing, before terminating the drilling at 10,602 feet (MD) in Paleozoic. The well was successfully logged and found to have 284 feet of gross thickness and 241 feet net pay, single hydrodynamically connected reservoir with no indication of OWC. A 40 ft interval of the upper part of LS-3 reservoir was perforated and completed for production in self-flow. During the test, the well flowed at self-flow rate of appx. 4,000 BOPD at bean size 40/64” and THP of 241 psi with oil of 35.9° API, BS&W – 0.3/0.4% and negligible gas. Currently the Well is under Short Term Testing with multi bean study for further evaluation.
Importantly, OVL had earlier discovered commercial oil of 40° API in LS-3 sands in the well Mariposa-1 in 2017, which is located 6.5 km from Indico-1, and the continuation of same play is confirmed in the recent well. The Company now plans to drill more exploratory wells to chase this important Cretaceous clastic corridor in immediate future. OVL is also embarking on acquiring additional 3D Seismic data to map more drillable prospects in the other sectors of the block.
OVL has a significant presence in Colombian Oil & Gas sector and holds PI in 6 exploratory blocks in addition to a producing 50% joint venture company, Mansarovar Energy Colombia Ltd (MECL).
ONGC Videsh Declares H1 FY’19 Financial Results
Financial results of ONGC Videsh Ltd, the wholly-owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), for the half year ended September 30, 2018 were considered and approved by the Board in its meeting held on November 14, 2018. The performance highlights are as under:
Standalone and consolidated production of Crude Oil and Oil Equivalent of Gas together during H1 FY’19 was higher by 8.8% and 1.4% respectively as compared to H1 FY’18 mainly due to increased production from Sakhalin-1, Russia and addition of production of Lower Zakum Concession, UAE acquired in March’2018.
The Company recorded its standalone profit of ₹ 432 crore during H1 FY’19 as against profit of ₹ 134 crore in H1 FY’18 and consolidated profit of 1,384 Crore during H1 FY’19 as against consolidated profit of ₹ 142 crore of H1 FY’18, mainly due to higher production, higher prices and exchange variation.
A. Highlights
- Production from Greater Pioneer Operating Company (GPOC), South Sudan project of ONGC Videsh has resumed after prolonged shutdown since December 2013. The Minister of Petroleum, Republic of South Sudan and Minister of Petroleum and Gas, Republic of Sudan in the presence of Ministry and related companies’ officials on 25th August 2018, officially declared pumping of first crude oil from Toma South field of South Sudan to Heglig in Sudan. Presently the field is flowing crude oil at ~15000 bbl/day.
- The first equity cargo of Das Blend crude produced from Lower Zakum Concession, ADNOC Offshore, UAE arrived at New Mangalore port on 08th June 2018. This equity crude of ONGC Videsh was refined at MRPL, and is another step in ensuring India’s energy security needs. Total Das Blend equity oil purchased by MRPL during June to October’2018 is 2.38 MMBBL.
- Memorandum of Understanding (MoU) was signed on 18th April 2018 amongst ONGC Videsh, Rosneft Vietnam BV (Operator) and PetroVietnam relating to further exploration activities in Block 06.1, Vietnam for exploration in deeper Clastic prospect.
- ONGC Videsh has entered into a Cooperation Agreement with UzbekNefteGaz on 28th Sept 2018 to jointly explore the possibilities to assess the potential opportunities in exploration blocks, under-development assets and producing fields/blocks located within the Republic of Uzbekistan and third countries pertaining to upstream sector.
B. 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 Company. ONGC Videsh has participation in 41 projects in 20 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Namibia, Russia, South Sudan, Sudan, United Arab Emirates, Venezuela, Vietnam and New Zealand. ONGC Videsh maintains a balanced portfolio of producing, discovered/under development, exploratory and pipeline projects. The Company currently operates/ jointly operates 21 projects. ONGC Videsh had total oil and gas reserves (2P) of about 711 MMTOE as on April 1, 2018. For more information visit: www.ongcvidesh.com.
c. About ONGC:
ONGC’s market capitalization as on November 13, 2018 was ₹ 2.01 trillion (USD 27.57 billion). During the financial year ended March 31, 2018, ONGC Group had produced 64.21 MMTOE oil and oil equivalent gas and the consolidated gross turnover was ₹ 3,622.46 billion (USD 55.8 billion) during FY’18. For more information visit: www.ongcindia.com
Press Release
“A Sudanese Ministerial delegation comprising H.E. Dr. Awad Ahmed Mohammed Elgaz, Assistant to the President of the Republic of the Sudan; H.E. Azhari Abdalgadir Abdalla Abdalgadir, Minister of Petroleum; H.E. Mr. Osama Faisal Elsayed Ali, State Minister of Foreign Affairs; H.E. Mr.Tarig Hassan Ali Shalabi, State Minister of Finance; H.E. Mr. Sirajuddin Hamid Yousif, Ambassador of the Republic of the Sudan to India, and other Sudanese officials visited ONGC Videsh Corporate Office at New Delhi on August 7, 2018 and held discussions with ONGC Videsh officials led by Shri Narendra K Verma, Managing Director and CEO.
The Ministerial delegation informed that the Government of Sudan is making sincere efforts to mitigate the issue of default on payment dues to ONGC Videsh. It was informed that the Government of Sudan is hopeful that its economic situation shall be improving henceforth with the recent agreement it reached with the Government of South Sudan on resumption of crude oil transportation from South Sudan territory through the Heglig-Port Sudan pipeline. The visiting delegation requested ONGC Videsh to withdraw the Arbitration process instituted against the Government of Sudan.
ONGC Videsh expressed its happiness for the positive response from Sudan and stated that it is always ready to work with Sudan to find a workable solution to clear the pending dues in a time bound manner. It was further informed by ONGC Videsh that keeping the legal intricacies in view, the arbitration process can continue while both sides work together on suitable mechanism of resolving the issues. On the request of the visiting delegation, ONGC Videsh agreed to depute a team of senior level officials to Sudan for initiating techno-commercial discussions afresh so as to workout way forward for settlement of past dues. Subsequently, the ONGC Videsh team arrived at Khartoum on August 13, 2018 and discussions with the Sudanese side are presently ongoing”.
GST rolls out seamlessly
On 10th July 2018 at 1100 hours, Director Finance Shri Vivekanand chaired a meeting to roll out GST in the SAP system of ONGC Videsh. Head Project Finance Shri J.B. Bansal , Head Corporate Finance Smt. Rekha Misra along with the SAP team and Corporate Finance team were present in the event. Shri Arun Fotedar, Head IT welcomed the gathering. Shri Ravindra Dulam Sai, CM (MM) elaborated the challenges faced and the changes made in the system. He congratulated the team from Oasys Tech Solutions Pvt. Ltd. and ONGC Videsh for a successful implementation of GST at the midnight stroke of 9th July 2018. Director (Finance) launched GST changes in SAP. He also appreciated the efforts by the team during the implementation phase and emphasized on the need for user training during the transition period.
The entire activity of implementation was completed in a period of around five months. The roll out of GST will now enable the users to record the GST transactions in the system along with generation of invoices through SAP where applicable. Further the SAP system is capable of generating reports for filing of GST returns.
GST rolls out seamlessly
ONGC Videsh Limited (ONGC Videsh) – a wholly owned subsidiary of ONGC, the National Oil Company of India, announces the arrival of its first equity cargo of Das blend crude oil to New Mangalore. The Das blend crude oil originates from the Lower Zakum (LZ) oilfield in Abu Dhabi, which currently produces approximately 400,000 barrels per day. ONGC Videsh led Indian Consortium acquired 10% PI in Lower Zakum Concession through its Dutch Joint Venture Company- Falcon Oil & Gas BV. The Indian Consortium led by ONGC Videsh include BPRL and IOCL. Other shareholders in the LZ concession are ADNOC (60%), CNPC and JODCO (10% each) and TOTAL and ENI (5% each). It was the first time that Indian oil and gas companies have been given a stake in the development of Abu Dhabi’s hydrocarbon resources and the agreements were signed in Abu Dhabi on 10th February 2018 in the presence of Hon. Prime Minister of India. The commencement date of the concession agreement was from 9th March 2018 and is for a period of 40 years.
This first equity cargo of approx. 690,000 bbls which was loaded onto the vessel MT Wafrah on 2nd June 2018, was sold by ONGC Videsh for refining to MRPL, an ONGC Group company in the downstream business which operates one of India’s most modern and complex refineries. This sale to MRPL further demonstrates the commitment of the ONGC Group in enhancing the energy security for the nation.
Das blend crude with approx. 39.200 API is best positioned among the ONGC Videsh portfolio of equity crudes to flow to India. It is a grade of crude which is regularly bought by several Indian refiners. Also the shipping distance/voyage time to the west coast is short and can be lifted in a wide range of parcel sizes.
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 Company. ONGC Videsh has participation in 41 projects in 20 countries namely Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Israel, Iran, Kazakhstan, Libya, Mozambique, Myanmar, Namibia, Russia, South Sudan, Sudan, Syria, United Arab Emirates, Venezuela, Vietnam and New Zealand. ONGC Videsh maintains a balanced portfolio of 15 producing, 4 discovered/under development, 18 exploratory and 4 pipeline projects. The Company currently operates/ jointly operates 21 projects. ONGC Videsh had total oil and gas reserves (2P) of about 711 MMTOE as on April 1, 2018. For more information visit: www.ongcvidesh.com
About ONGC
ONGC’s market capitalization as on 6th June 2018 was INR 2,186 billion (US$ 32.61 billion). During the financial year ended 31st March, 2018, ONGC Group had produced 64.21 MMTOE of oil and oil equivalent gas (approx. 1.29 MMboe per day); the Consolidated Gross Turnover was INR 3,622 billion (US$ 54 billion) during FY’18 and total consolidated oil and gas reserves were 1,863 MMTOE as on 31st March 2018. For more information visit: www.ongcindia.com
Financial results of ONGC Videsh Ltd, the wholly-owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), for the year ended March 31, 2018 were considered and approved by the Board in its meeting held on May 23, 2018. The performance highlights are as under:
Consolidated Production of Crude Oil and Oil Equivalent Gas during FY’18 was higher by 11% as compared to previous year. The incremental production was mainly from Vankorneft & Sakhalin-1 projects, Russia; BC-10 project, Brazil; an Exploratory Block CPO-5, Colombia and due to acquisition of 4% stake in the Lower Zakum Concession project in UAE during the year.
The Company recorded its standalone profit of ₹ 411 crore during the FY’18 against the profit of ₹ 1,749 crore during the previous financial year and the consolidated profit of ₹ 981 crore during FY’18 against consolidated profit of ₹ 757 crore during FY’17.
The Board of Directors has proposed a final dividend of ₹ 2.00 per share for the year ended March 31, 2018 (previous year: ₹ 1.40 per share) excluding dividend distribution tax to be paid on fully paid equity share of par value of ₹ 100 each. This dividend is subject to approval by the shareholders at the forthcoming Annual General Meeting.
A. New Acquisitions and Alliances
• ONGC Videsh Vankorneft Pte Ltd (OVVL), a wholly-owned indirect subsidiary of ONGC Videsh, has completed the acquisition of 30% Participating Interest in Namibia Petroleum Exploration License 0037 on October 3, 2017 for Blocks 2112A, 2012B and 2113B and related agreements (License), Offshore Namibia from Tullow Namibia Limited (Tullow), a wholly owned subsidiary of Tullow Oil plc. Tullow with its remaining 35% Participating interest shall continue to be the operator of the License. Pancontinental Namibia (Pty) Limited with 30% Participating interest and Paragon Oil and Gas (Pty) Limited with 5% Participating interest are other partners in the License.
• ONGC Videsh led Indian Consortium comprising of ONGC Videsh, Indian Oil Corporation Limited and Bharat Petro Resources Limited acquired 10% Stake in Lower Zakum Concession, Offshore Abu Dhabi. The Concession was awarded by the Supreme Petroleum Council (SPC), on behalf of the Abu Dhabi government, to the Abu Dhabi National Oil Company (ADNOC) and it is the first time that Indian oil and gas companies have been given a stake in the development of Abu Dhabi’s hydrocarbon resources. The Concession, which has a term of 40 years with an effective date of March 9, 2018 was signed by Shri Shashi Shanker, Chairman, ONGC Group of companies on February 10, 2018 at Abu Dhabi. The 10% PI is through the indirect subsidiary FOGBV incorporated in Netherlands on February 6, 2018 with ONGC Nile Ganga BV, subsidiary of ONGC Videsh, holding 40% shares in FOGBV and both Indian Oil Corporation Limited (IOCL) and Bharat Petro Resources Limited (BPRL) holding 30% each, through their respective Dutch subsidiaries. The production from the field is around 419,000 bopd and the share of production to FOGBV is around 42,000 bopd and ONGC Videsh share is around 16,800 bopd.
• An Exploration Block in Israel with License 412/“32” has been awarded by Petroleum Commissioner to Indian Consortium on March 27, 2018 for exploration duration of 3 years. ONGC Videsh is the operator and each Partner of the Indian Consortium, i.e. ONGC Videsh, Bharat Petro Resources Limited (BPRL), Indian Oil Corporation Limited (IOCL) and Oil India Limited (OIL) hold 25% Participating Interest (PI) each in the License.
B. Explorations and Operations
• CPO-5, Colombia
The well Mariposa-1 was drilled to a total depth of 11,556 feet (MD) and log analysis indicated the presence of approximately 121ft of oil saturated net pay in the Lower Sands Unit. The well is currently under testing and activated on self. The well flowed light oil of 40.7 API @ 4523 bopd through 32/64” choke with 0.3% BS&W and gas @ 1,01,260 scfd. The discovery has opened up new play in CPO-5 block. More wells are likely to be drilled for the play.
• Sakhalin-1, Russia
o 30 years extension to the Production Sharing Agreement (PSA) of Sakhalin-1 block has been granted from 2021 to 2051.
o Completed World’s Longest Extended Reach Drilling (ERD) well #O5RD with measured depth of 15,000 m on June 30, 2017.
• ACG, Azerbaijan
Consortium partners of the giant ACG Fields in Azerbaijan have entered into an agreement with Azerbaijan Government and State Oil Company of the Azerbaijan Republic (SOCAR) for extension of duration of the Production Sharing Agreement (PSA) for Azeri-Chirag-Deep water portion of Gunashli (ACG) oil fields until December 31, 2049.
• Rovuma Area-1 Project, Mozambique
Government of Mozambique has accorded approval for the Development Plan for Golfinho-Atum natural gas field in the Area 1 block located in the Rovuma Offshore Basin of Mozambique. The plan outlines the integrated development of the Golfinho-Atum field through an initial two-train onshore liquefaction plant with a total processing capacity of 12.88 MMTPA. The approval of the Development Plan is the culmination of several years of progress on technical and commercial aspects of the development. The Golfinho-Atum Project will also supply initial volumes of approximately 100 million cubic feet of natural gas per day for domestic sales for Mozambique’s industrial development which will have significant socio-economic impact.
C. Awards
During the year ended March 31, 2018, following awards and recognitions were conferred upon ONGC Videsh:
o The President of India conferred the prestigious SCOPE award for Excellence and Outstanding Contribution to the Public Sector Management – Institutional Category II (Miniratna-I & II PSEs) for 2014-15 on April 11, 2017.
o Golden Peacock Award for Risk Management 2017 instituted by the Institute of Directors (IOD) during Global Convention on Corporate Ethics & Risk Management.
o The ICICI Lombard & CNBC-TV18 India Risk Management Award in the category of “Best Risk Management Framework & Systems – Risk Technology”.
o Strategic Performance Award in Miniratna-I category at the 5th edition of Governance Now PSU Awards-2017.
D. 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 Company. ONGC Videsh has participation in 41 projects in 20 countries namely Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Israel, Iran, Kazakhstan, Libya, Mozambique, Myanmar, Namibia, Russia, South Sudan, Sudan, Syria, United Arab Emirates, Venezuela, Vietnam and New Zealand. ONGC Videsh maintains a balanced portfolio of 15 producing, 4 discovered/under development, 18 exploratory and 4 pipeline projects. The Company currently operates/ jointly operates 21 projects. ONGC Videsh had total oil and gas reserves (2P) of about 711 MMTOE as on April 1, 2018. For more information visit: www.ongcvidesh.com.