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.