ONGC Exudes Confidence to Withstand Current Volatility; Declares 100% Interim Dividend

 

During the last few days due to sudden and sharp decline in crude oil prices, the share prices of oil sector entities have witnessed a lot of volatility, and particularly the share prices of the upstream companies have been hit hard. In addition, due to failure of talks of OPEC+ to arrive at an agreement on production cut, oil prices declined drastically. Key oil producers have since adopted a strategy of “Fight to Finish” and have besides announcing increase in production, have also offered huge discounts to Asian Markets making capturing of markets as key priority at this juncture.

All these major developments bring in some uncertainty for oil and gas sector and specifically for oil and gas producing companies.  While the decline in oil prices has affected the offtake of the exporting upstream companies, the companies operating in net importing countries like India  have no such issues relating to offtake. Global oil markets are regulated by fundamentals and the prices cannot sustain at such levels for long, as being witnessed today.

Outbreak of Corona virus and its declaration as a pandemic by the UN has exacerbated the demand side and it is apprehended that for the first time over the last two decades oil demand may in fact go down in absolute terms. It is very difficult to separately identify the extent to which the oil price decline is attributable to either of these factors.

ONGC is of firm belief that notwithstanding the recent developments and decline in the crude prices, the right level of prices at which the industry can operate and some sort of equilibrium can be achieved will restore sooner than later.  Historically, in previous instances of sudden oil prices decline, the recoveries have also been sharp and in some cases V shaped.

Given the present situation, it may be stated that ONGC has performed satisfactorily on production as well as on profitability front. The company has sufficient funds to continue its operations.   The decline in crude prices has additionally created a need for us to carry out detailed review of activities to look for opportunities to optimize operating costs to preserve liquidity. The company has already started taking steps to create a detailed strategy to get over this situation if the crisis prolongs.

We also believe, that the time is also right for certain policy measures which are understood to be at different levels of consideration in the Government to move further. If some of the measures are taken at this critical juncture, will address long pending issues being faced by upstream companies and will help domestic companies to contribute towards reducing import dependency in the long term.

As regards ONGC, as a Group it is fully balanced across the value chain i.e. upstream, refining and marketing and is better positioned to face any headwinds. It is felt that while at upstream level, lower oil prices are temporary headwinds, as a Group, in medium term the company will get strong boost through contribution from downstream units. ONGC Group fundamentals continue to be strong and as an integrated group it is far more strongly positioned to face present situation.

ONGC Board deliberated on these matters in its meeting held on 16th March 2020. The Board emphasized on need for close look at emerging scenario and advised to adopt a balanced approach towards capital spending. The board also approved payment of interim dividend @ Rs. 5 per share (i.e. @100% of face value of Rs. 5 per share) to the shareholders.

Vinod Sridhar wins double-title in ITF seniors tennis tournament

Chief Manager (Prog) of Mumbai and former national Tennis champion Mr Vinod Sridhar was on a roll and vowed everyone with his stellar performance in ITF International Federation World Ranking Seniors Tennis tournament. This prestigious championship was held at Raipur on 9-13 March 2020.

With his unmatched zeal and talent, he won both singles and doubles titles of this tournament. In singles, he went on to beat the top seed Mr Deepak Marwah, 6-0, 6-0, without losing a single game and showing his authority. In doubles, he partnered with Mr Rohan Narayan from New Delhi to win 6-2, 6-2 against the second seeded team of Mr Ravindra Pandey and Mr Asif Usmani.

Importantly, the Singles title fetched him 75 points in the Seniors World Ranking Arena and would help him going forward.

Shaurya Chakra for ONGC Energy Soldier CN Rao

ONGCian Challapilla Narasimha Rao has been posthumously awarded the Shaurya Chakra for his act of gallantry in ensuring the safety of lives and protecting the larger interest of the Energy Maharatna during the major fore at Uran. His supreme sacrifice will remain an inspirational narrative in the annals of the Indian Energy industry.

On 3 September 2019, Mr C N Rao rushed to the site after receiving report of a strong hydrocarbon smell near De-mineralized Water Plant in Uran Plant. Nation First – was the thought in the mind. Three CISF colleagues were already present there. Undermining his personal safety, he acted swiftly to mitigate risk to the lives of the people and property of one of the biggest Hydrocarbon processing facilities of ONGC. Unfortunately, while Mr C N Rao along with three CISF soldiers were addressing the problem, a fire broke out. The fire proved fatal to the brave energy soldiers.

Late Mr Challapilla Narasimha Rao, General Manager (Production), was born in Kuddigam Srikakulam in Andhra Pradesh. After completing initial schooling from St Joseph High school Jamshedpur in Jharkhand, he completed his engineering degree from KREC Surathkal (1985-1989) in Mechanical engineering and did his Masters in Human Resource from IGNOU.

He was an avid footballer, joyful, caring and a wonderful personality. His pleasant nature helped him to gel with all levels of employees. Eagerness to learn new things and enthusiasm towards physical fitness was his quality.

He Joined ONGC in 1991 at Uran. After spending 14 years in mastering the Plant operations as one of the best Production Engineers, he was transferred to Mehsana Asset in 2004. At Mehsana Asset, he was assigned the work of well services, where he continued to leave his footprints. In 2011, he got transferred to Rajahmundry Asset, where he was posted in Crisis Management Team for four years. His inquisitiveness to learn new things and quick-learning abilities forced another transfer to Tripura Asset at Agartala and he was posted as In-charge technical services.

In the year 2018, he got an opportunity to come back at Uran plant, to the place where he had started his journey in ONGC. Due to his dynamic nature, work attitude and leadership quality he was given the important assignment of Resident Plant Superintendent (RPS).

The commitment of Mr Rao and exceptional work abilities earned him many accolades and merit awards in the company. To name a few, he received CMD group awards as a member of Corporate Crisis Management team for commendable contribution in controlling Blow-out in & around Well Balol #45 & Well SK#12, merit award for speedy inspection of safe operations of 248 wells post GAIL pipeline blast and many more.

He is survived by his parents Mr C S N Murthy (84 years) and Mrs Suryakantam (79 years), wife Mrs Padmalata and two sons Shivapraveen (24 years) and Satya Praneet (19 years).

Message of Minister of Petroleum & Natural Gas and Steel on International Women’s Day

Indian women are excelling and leading in varied endeavours, Venturing in to uncharted territories and creating new landmarks, they are reshaping our society and economy. They will play an important role in driving India's march towards becoming a $5 trillion economy.

It is with this thought that Hon'ble Prime Minister has launched campaign #ShelnspiresUs to spread stories of women who through their work serve our nation and inspire others. I appeal to you to actively participate in the campaign and share your stories of triumph, service to the society and efforts which contribute towards building a New India.

I am proud to note that in the petroleum sector, women are discharging critical responsibilities. During my visits, I have had the opportunity to interact with several women employees involved in our sector. Their dedication and determination reinforced my belief that the next wave of growth will be driven by our women. As energy and achieving energy justice for all, your contribution to the team makes it stronger.

This Women's Day is an opportunity to celebrate your spirit to excel, serve and inspire. All gloss ceilings that come your way are meant to be shattered, all forms of discrimination are bound to be demolished.

I wish you a "Happy International Women's Day"

Jai Hind
Dharmendra Pradhan - Minister of Petroleum & Natural Gas Steel Govemment of India, New Delhi.

ONGC Institute of Drilling Technology Trained 33800 Drillers, Including Over 13000 Foreigners Since Inception

The most acute labor pain that ONGC experianced at its birth in 1956 was the non-availability of drillers. ONGC's founding father Mr KD Malviya and his his two chief lieutenants Mr AMN Ghosh and Mr MBR Rao were at their wits's end as how and from where to find drillers. It was easier to find qualified chemists, physicists, geologists and even mathematicians, but where was the only prfession that one learned 'on-the-job'. Almost all of those earlier 'pioneer-drillers in ONGC were promptly sent to Assam Oil Company (AOC) for on-the-job training. When they came back after six months, they were promoted as assistant drillers, and sent to Russia for two years to get trained in drilling technology in the baku oil fields.

 

This heart-felt gap was filled 22 years later in 1978 when the Institute of Drilling Technology (IDT) was set up in Dehradun in the vicinity of Keshava Deva malaviya Institute of Petroleum Exploration (KDMPIE). Its founder-director was no other than mr AK Mitra, the veteran driller who had joined ONGC at its very inception. Today, IDT has emerged as a premier R&D Center, fully equipped and competent in the designing of critical and complex wells for exploratory and development fields across ONGC.

 

IDT carries out extensive applied R&D activities in the field of drilling, cementing technology, drilling fluid engineering and completion fluid engineering withobjective of providing quality, eco friendly, cost effective and timely services to ONGC's numerous Assets and Basins. it also provides customized solutions for field-related problems such like drilling complication diagnosis and how to sort those out. it also prepares comprehensive well plans and technological support for deep sort exploratory, high pressure, high temperature, high angle, horizontal and ERD wells. Among its other functions are designing and devloping drilling fluids, cement slurry and their additives besides completion fluid etc.

 

It is an integrated ISO Certified Institute for Quality, Health, Safety and Environment (QHSE) Management System. A systemic research carried out on various aspects of drilling technology at the Institute goes a long way in meeting the future challenges in drilling health wells and maximizing output of oil and gas by ONGC Group of Companoes in its march towars self-reliance in hydrocarbon resources of India. Apart from undertaking its stated functions in the field of drilling technology, IDT has also brought within its purveiew pan India promotion of deucation and training in the field of drilling technology, IDT has also brought within its purview pan India promotion of education and training in the field of drilling technology. It has thrown open its campus to intern from petroleum engineering educational institutions in the country. It has also enterd into R&D collaboration projects with the Indian Institute of technology, Guwahati, IIT Madras and IIT Roorkee in a variety of fields.

 

IDT had also signed a Memorandum of Understanding (MOU) with the National Institute of Rock Mechanics (NIRM), Kolar Gold Fields in August 2013 for five years. it has now been renewed until 31 March 2021. the MOU aims at determining the rock properties of shale samples like uniaxial compressive strength, tensile strength, Poission' sratio, cohesion and friction angles that helps in designing geo-mechanical model of particular area of intrest. Another collaborative project is with Indion Oil Corpoation in the development of base oils suitable for drilling fluids development of lubricity additives. There is also an arrangement with the National Institute of Oceanography, Goa for toxicological studies.

 

The Institute has been fortunate in having had at its helm drillers of exceptional abolity. In the beginning, its heads wre known as directors, and the dictinction of being the first director righttly belonged to Mr AK Mirta - ONGC's senior most driller by all accounts. He had to separate tenures - first one of four years and the second for three years. Thus Mr Mitra could in reality be called the (Founding-Father of the IDT).

 

Mr LN sarin succeeded Mr Mitra and remained its director for four years. Mr PS bais, who followed Mr sarin, also had a long tenure, lasting six years. The designation changed in 1995 when the Institute's director was designated as the Head of Institute's director was designated as the 'Head of Institute and Mr JC Rastogi became its first Head. Mr RK Gang had the shortest term of five months and Mr VK Gupta just six moths.

 

Crrently, IDT has on its rolls 101 staffers including 35 drillers, 23 chemists, nine technical and 34 non-technical personnel. it has since its inception trained 33,800 personnel. it has since its inception trained 33,800 personnel in diverse drilling operations. As an integrated training center, IDT regulary exchanges the knowledge gained via the studies carried out at the Institute. More than 13,000 participants from all over the world have been trained at the Institute.

 

The incumbent Head of the Institute Mr Pradeep Kumar Mishra brings to his new post more than 35 years of rich experince in diverse fields. He has held various key appointments such as the Head of the Drilling Services, Location Manager and In-charge at different locations. He has also had field exposure in Deep Water for offshore field operations. Prior to his current posting, Mr Mishra was the Head, Drilling Services (Deep Water) Mumbai, where he was instrumental in bringing about substantial saving in the drilling of 19 development wells in the prestigious KG-DWN-98/2 Field. Under his astute leadership, the Deep Water Group achieved more than 100% commercial speed in both Exploratory (123%) as well as Development wells (129%) in 1019-19, and that was a record of sorts.

 

In just over nine months as the head of IDT, Mr Mishra has intiated an exclusive training Course, "Offshore Drilling Operations", for training offshore personnel and completed revision of SOPs and manuals on Drilling, Cementing, Completion fluids etc. He has also been responsible for erecting a new training Rig E-760-8 at the IDT campus that is used as a showpiece for ONGC's inductees and visitors. It has replaced the earlier NAT #55 Rig.

 

Group General Manager Mr G Venkateshwaranm will take over on 1 April as Head of Institute upon the suerannuation of Mr Mishra.