Media Interaction 28 th September 2018
Petchem Refinery E&P ONGC portfolio consists of strong performers Selected portfolio companies Domestic NOC contributes 73% of India s Oil & Gas production Overseas arm contributes equivalent to 20% of India s Oil & Gas production Strong marketing company with 15,000+ retail outlets across India; #1 Company in lube sales 15 MMTPA state-of-the-art Refinery Largest Dual feed cracker in south Asia and 2 nd largest in the world Producing, Refining and Selling 35+ MMT Oil 2
Highlights 12 Oil and Gas discoveries 2P Reserve accretion 67.83 MMtoe; RRR >1 for 12 th consecutive year Standalone production up by 3.3% VAP production up by 4.6%. Revenue from Operations up by 9.1% Profit After Tax (PAT) up by 11.4% 3
Highlights Production up by 10.6%; Highest ever production of 14.16 MMtoe Revenue from Operations up by 3.4% Profit After Tax (PAT) up by 29.6% Acquisition of 4% PI in Lower Zakum Concession, UAE 4
Highlights Highest ever throughput - 18.3 MMT Highest ever Market Sales - 36.9 MMT Gross Refining Margin (GRM) 7.40$/bbl ONGC acquired 51.11% equity shares of HPCL from GoI on January 31, 2018. Sales Revenue up by 13.9% Profit After Tax (PAT) up by 2.4%; Highest ever PAT of 6,357 Cr. 5
Highlights Highest ever throughput - 16.31 MMT Gross Refining Margin (GRM) 7.54$/bbl Turnover up by 6.15% Profit after Tax (PAT) - 2,224 Crore 6
Highlights Average capacity utilisation of 50% during 1 st year of stabilisation Total Income: 5,607 Crore Payment realisation ~ 96% PAT: 125 Crore; Dividend: 9% Plant capacity utilisation: 88% Revenues: 5,561 Crore; EBITDA: 291 Crore 7
Accolades and Global Rankings #1 in E&P in Platts Global 250 # 197 in Fortune Global 500 # 266 in Forbes Global 2000 1 st globally in the E&P category and 11 th overall in Platts Global 250 Energy Rankings 5 th globally in the mining and crude oil production industry category 1 st among Indian National Oil & Gas companies 8
Group E&P Reserves 2P Reserves as on 1st April 2018 = 1,863.45 MMTOE MMtoe Oil Gas Total ONGC 459.22 6,77.51 1,136.73 PSC JV 9.58 5.78 15.36 ONGC Videsh 332.61 378.75 711.36 Group E&P Reserves Total 801.41 1,062.04 1,863.45 2P Reserves Status 1818 1863 1667 1690 1693 601 612 596 704 711 33 27 23 19 15 1,033 1,051 1,074 1,095 1,137 FY'14 FY'15 FY'16 FY'17 FY'18 ONGC JV OVL 9
E&P Revenue and PAT Revenue PAT 95422 8.5% 12.2% 87988 18654 20925 Crore FY'17 FY'18 FY'17 FY'18 Group E&P Performance Group E&P Production 59.20 58.34 57.38 61.60 64.21 4.81 2.87 4.37 3.34 3.41 5.49 5.53 1.57 5.51 8.43 9.35 3.75 1.50 3.68 1.35 1.18 1.13 3.57 3.29 3.13 23.28 22.02 21.18 22.09 23.48 22.25 22.26 22.36 22.25 22.31 FY'14 FY'15 FY'16 FY'17 FY'18 Oil in MMT Gas in BCM ONGC(Oil) ONGC(Gas) PSC-JV(Oil) PSC-JV(Gas) ONGC Videsh(Oil) ONGC Videsh(Gas) 10 Figs above represents only ONGC & ONGC Videsh
Dominant National Oil Company 73 % contribution to production of India 19.0% FY18: Crude oil production in India 35.70 MMT 29% 71% FY18: Natural gas production in India 32.65 BCM 25% 16.0% 75% ONGC OTHERS 79.0% ONGC OTHERS Major Player in Petrochemicals in India; No.2 position in production of HDPE, LLDPE, PP 11
Domestic E&P FY 18: 12 discoveries (Onland: 6, Offshore: 6) 2 discoveries already monetized FY 18: 12 Oil & Gas discoveries New Prospects Discovery: 5 New Pool Discovery :7 Offshore 1 SW-WO-24/ WO-24-E Oil 2 GD-10 / GD-10-AA Gas Onshore 3 West Matar/ MRAS Oil Exploration Offshore 1 GS-29/ GS-29-AL Oil 2 G-1 / G-1-AC Gas 3 GS-29/ GS-29-AI SUB Oil 4 ANOR / ANOR-A Oil 5 Mattur West / MTAN Oil 4 GS-71 / GS-71-AB Oil Onshore 5 Kunjaban/ KUAF Gas Discoveries monetized during the year 6 Mandapeta/ VED-AA Gas 7 Bhubandar / BUAF Gas 12
Ultimate Reserves (Mmtoe) Reserve Replacement Ratio (RRR) Domestic E&P 2P Reserve Accretion (MMtoe) 67.83 MMtoe 80 70 60 1.24 1.37 1.51 1.45 1.48 1.6 1.4 1.2 FY 18: 2P Reserve Accretion 50 1 40 0.8 Highest accretion during last 5 years 30 56.26 61.06 65.58 64.32 67.83 0.6 RRR > 1 for 12 th consecutive year 20 10 0.4 0.2 0 FY'14 FY'15 FY'16 FY'17 FY'18 2P Reserve Accretion RRR 0 13
No. of Wells Meter/ Rig-month Drilling Domestic E&P Number of wells Cycle Speed 600 1200 503 Wells Drilled during FY 18; highest in last 27 years 500 400 389 501 503 1000 800 821 985 991 119 Exploratory wells & 384 Development wells drilled during FY 18; highest exploratory wells in last 6 years 300 200 100 401 384 297 92 100 119 600 400 200 0 FY'16 FY'17 FY'18 Exploratory Development 0 FY'16 FY'17 FY'18 14
Production Domestic E&P Crude oil production (MMT) 22.25 22.26 22.36 22.25 22.31 Natural gas production (BCM) 23.28 23.48 22.02 21.18 22.09 Standalone Production increased by 3.3% Standalone Gas production increased by 6.3% 3.75 3.68 3.56 3.29 3.13 FY'14 FY'15 FY'16 FY'17 FY'18 ONGC PSC-JV 1.57 1.50 1.35 1.18 1.13 FY'14 FY'15 FY'16 FY'17 FY'18 ONGC PSC-JV Value Added Product (VAP) increased by 4.6% 3017 VAP production ( 000 Tons) 2723 2955 3235 3386 Others* C2-C3 LPG HSD SKO Naptha FY'14 FY'15 FY'16 FY'17 FY'18 15
Domestic E&P Aggressive Investment in Upstream: E&P Spends of 148,937 Cr in last 5 years 4 Projects completed during FY 18 Growth Pursuits 24 Major Projects* 16 Development Projects 8 Infrastructure Projects Investment involved ~ 77,000 Crore Envisaged Lifecycle Gain ~ 175 MMtoe Projects already completed during FY 19: 8 Highest ever investment in a single project Four Blocks Focus on Deep Water Focus on Coal Bed Methane (CBM) * Major projects Valuing more than 100 crore; as on 27.09.2018 Development of KG-DWN-98/2 Cluster-II 4 Deep/Ultradeep water rigs deployed; 6 wells drilled; First Gas by Dec 2019 and First Oil by Mar 21 Bokaro, North Karanpura, Jharia, Raniganj Bokaro & North Karanpura Blocks: Development scheme under implementation 16
ONGC CAPEX Domestic E&P 72902 (. Crore) 36915 HPCL 1,93,485 Crore Capex in last 5 years GSPC 7481 32470 29997 30110 28006 28506 32077 E&P FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 (PLAN) Exploratory Drilling 23% Survey 5% Domestic JV 2% R&D 2% Capital Projects 36% Planned Capex FY 19: 32,077 Crore Development Drilling 32% 17
FY18: Gross Revenue 85,004 Crore; PAT 19,945 Crore Domestic E&P 84203 83093 77742 77908 85004 ONGC: Financials 22095 17733 16140 17900 19945 Consistent Value Creator FY'14 FY'15 FY'16 FY'17 FY'18 Gross Revenue PAT FY18: Dividend 132 percent; total payout.8,470 Crore Plus Dividend Tax of 1,728 Crore 8128 8128 7272 7764 8470 43.04% 55.00% 54.22% 52.20% 51.13% 36.79% 45.84% 45.06% 43.37% 42.47% 1381 1626 1480 1579 1728 FY'14 FY'15 FY'16 FY'17 FY'18 Dividend Tax on Dividend FY'14 FY'15 FY'16 FY'17 FY'18 Payout % with Tax Payout % without Tax 18
ONGC has been a trendsetter amongst PSUs in CSR & innovative contests Solar Chulha: An energy efficient electric cooking stove CSR spend has been continuously increasing CSR Spend ( Crore) with well defined focus areas Environment Sustainability +28% 421 526 503 Rural Development Healthcare and Sanitation 183 216 Education and Creation of Livelihood Promoting Sports FY'14 FY'15 FY'16 FY'17 FY'18 Women Empowerment 19
Presence in 20 countries ONGC Videsh International E&P arm : Wholly owned subsidiary of ONGC 2P Reserves of 711 MMtoe as on 01.04.2018 Overseas investment of USD 28 Bn till FY18 CAGR of 14% in production during last 5 years Highest-ever production of 14.16 MMtoe in FY18 20
Strong International Presence: With 41 projects globally, ONGC, through ONGC Videsh, has established strong E&P presence across 20 countries outside India Africa Libya 1 Sudan 1 1 South Sudan 2 Mozambique 1 CIS & Russia Azerbaijan 1 1 Russia 3 Kazakhstan 1 South East Asia Vietnam 1 1 Myanmar 2 2 Bangladesh 2 2 Producing: 15 Discovered/ Developed: 4 Namibia 1 Latin America Australia-New Zealand Exploration: 18 Venezuela 1 1 Colombia 6 1 Middle East Syria 1 1 N. Zealand 1 Brazil 1 1 Iraq 1 Iran 1 Pipeline: 4 UAE 1 Israel 1 21
FY18: Highest-ever production of 14.16 MMtoe (increase of 11%) Incremental production mainly from Vankorneft & Zakum Concession project in UAE during the year. ONGC Videsh: Overseas Production 8.36 8.87 8.92 12.80 14.16 14% 4.37 4.81 FY18: Country wise production Vietnam 12% Azerbaija n 7% 2.87 3.34 3.41 Myanmar 7% 5.49 5.53 5.51 8.43 9.35 Russia 56% Brazil 5% Colombia 4% FY'14 FY'15 FY'16 FY'17 FY'18 Oil (MMT) Gas (BCM) Venezuel a Sudan 5% 4% 22
Total Income & PAT ONGC Videsh: Financials 22,224 19,149 9,862 10,080 10,418 4,445 1,904 757 981 FY'14 FY'15 FY'16 FY'17 FY'18 (3,633) Turnover (Rs Crore) PAT (Rs Crore) Revenue from FY16 onwards has been accounted on Equity method (Ind AS) 23
Largest Dual feed cracker in South Asia and 2 nd largest in the world (1.1 MMTPA Ethylene Cracker) C2, C3 and C4 gas feed from ONGC Dahej Plant & Naphtha from ONGC Hazira plant ONGC Petro Additions Limited (OPAL) Focused petrochemical arm Key products: Polypropylene, HDPE, LLDPE, Butadiene & Benzene Polymer grades accepted well both domestically and in export market Domestic Capacity Share: HDPE & LLDPE (20%), PP (7%) Plant Capacity 50% during FY18; Expected 100% by FY20 FY18 Total Income: 5,607 Crore; EBIDTA: 359 Crore 24
Aromatic Petrochemical Complex producing Paraxylene & Benzene Capacity utilization: 88%, being further augmented by sourcing heavy Naptha from other oil companies ONGC Mangalore Petrochemicals Ltd. (OMPL) Key products with FY18 production in KT: Paraxylene (684), Benzene (194), Paraffinic Raffinate (207) and Hydrogen (20) Niche presence globally 78% products exported JV focused on special petchem Financials: FY 18 Revenues: 5,561 Crore; EBITDA: 291 Crore Integration of OMPL and MRPL planned to unlock value 25
Combined Cycle Gas Turbine Thermal Power Plant 726.6 MW (363.3x2) Combined cycle power plant Average Plant load factor (PLF) for the year FY18 was 63%. ONGC Tripura Power Company Ltd.(OTPC) First Dividend paying standalone gas based power generation company in India Meets 35% power requirement of North Eastern states. Regional thermal power plant Largest CDM approved project from India with 1.6mn registered CERs. Financials: Total Income: 1,252 Crore; PAT: 125.13 Crore; Dividend of 9% 26
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