ONGC Videsh Limited New Delhi July 2018
2 Presentation Overview 1 2 3 4 5 6 Introducing ONGC Videsh Global Footprint & Project details Reserves and Production Financials Growth plans Our Global Partners
Presentation Overview 1 2 3 4 5 6 Introducing ONGC Videsh Global Footprint Reserves and Production Financials Growth plans Our Global NOC/IOC Partners 3
Introduction Wholly-owned subsidiary of ONGC, engaged in international E&P business Incorporated as Hydrocarbons India Pvt. Ltd. Rechristened ONGC Videsh Ltd March 5, 1965 June 15, 1989 Oil and Gas Assets 41 Global Presence 20 Countries Production (FY 2017-18) 2P/3P reserves (@01.04.2018) Cumulative Investment (ITD Mar 2018) 269 kboepd 711/ 738 MMTOE US$ 28.45 Billion ` 151.41 thousand crore 4
Board of Directors Shashi Shanker Chairman Narendra K. Verma Managing Director Non-Executive Part Time Directors (Govt. Nominees) Functional Directors (Whole-time) Non-Executive Part Time Independent Directors Dr. K V Pratap JS, DEA, MoF P K Rao Director (Operations) Rakesh Kacker IAS (Retd.) Sunjay Sudhir JS (IC) Sudhir Sharma Director (Exploration) Ajai Malhotra IFS (Retd.) Vivekanand Director (Finance) B.N. Srivastava Professor, IIM Calcutta Note: Director (BD)* 1) Functional Directors of ONGC are Special Invitee (s) to the Board. 2) *New post of Director (BD) has been sanctioned by the GOI. Kiran Oberoi Vasudev Chairperson, QRB, ICSI 5
Organogram Managing Director Corp Planning & Strategy, Strategic HR and CC Head HSE General Counsel EC / CSR /RTI Company Secretary Director (Finance) Director (Exploration) Director (Operations) Risk & Insurance Cell Internal Audit Mgmt & Technical Cell Mgmt & Technical Cell Comm IT Corporate Finance & OIL/GAS sales E&D incl. E&P IT Business Development Corporate Support Services Engineering & Operations Corporate Centres President LAC BU President ASIA BU President CIS BU President RUSSIA BU President VNZ BU President MENA BU President MZM BU 6
Presentation Overview 1 2 3 4 5 6 Introducing ONGC Videsh Global Footprint & Project Details Reserves and Production Financials Growth plans Our Global NOC/IOC Partners 7
Growth Of ONGC Videsh 1965 Hydrocarbons India Ltd.- India s first overseas venture in Iran 1975 PI in Exploratory block Abu Khema, Iraq 1976 PI in Exploratory block off the coast of Dar-es- Salam in Tanzania 1988 Three exploration blocks: Block 6, Block 12E and Block 19 in Vietnam 2001 20% PI in Sakhalin-1, Russia 2002 17% PI in exploratory Block A1, Myanmar 40% PI in exploratory Block Farsi, Iran 2003 25% PI in GNOP, Sudan 24.125% PI in SPOC, South Sudan 2004 60% PI in exploratory Block 24 Syria 2006 16.67-18.75% PI in AFPC, Syria 17% PI in exploratory Block A3, Myanmar 15% PI in BC-10, Brazil 50% PI in MECL, Colombia 2008 40% PI in San Cristobal, Venezuela 2009 100% PI in Imperial Energy, Russia 2010 11% PI in Carabobo- 1, Venezuela 2013 2.7213% PI in ACG, Azerbaijan 2.36% stake in BTC pipeline Addl. 12% PI in BC-10, Brazil 2014 16% PI in Rovuma Area 1, Mozambique 2016 26% equity in Vankorneft, Russia 2017 30% PI in Exploration Blocks 2112A, 2012B & 2113B in Namibia 2018 4% PI in LZC, UAE 25% PI in exploratory Block 32, Israel
Global Footprints of ONGC Videsh 41 projects in 20 countries Producing: 15 Discovered/ Developing: 4 Exploration: 18 Pipeline: 4 CIS & Russia Azerbaijan 1 1 Russia 3 Kazakhstan 1 Africa Libya 1 Sudan 1 1 South East Asia Vietnam 1 1 South Sudan 2 Myanmar 2 2 2 Mozambique 1 Bangladesh 2 Namibia 1 Latin America Venezuela 1 1 Colombia 6 1 Brazil 1 1 Latest Acquisitions 4% PI in Lower Zakum Concession, Abu Dhabi 25% PI in exploratory Block 32, Israel Middle East Syria 1 1 Iraq 1 Iran 1 Israel 1 UAE 1 Australia-New Zealand New Zealand 1 9 Details
Presentation Overview 1 2 3 4 5 6 Introducing ONGC Videsh Global Footprint & Project Details Reserves and Production Financials Growth plans Our Global NOC/IOC Partners 10
Reserves - Growth 738 MMTOE of 3P Reserves in 19 assets in 12 countries 800 700 600 Proven Probable Possible 637 647 633 37 35 37 743 738 39 27 500 400 300 200 100 0 214 225 230 241 243 280 36 27 13 19 13 16 18 22 26 83 406 398 36 41 435 425 432 33 33 37 199 180 199 199 171 433 424 393 409 397 271 287 187 199 198 207 195 161 190 186 203 193 196 207 203 199 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 Reserves 1P 2P 3P 96.3% of reserves in P1 & P2 Category Total (MMToE) 287.131 711.362 738.404 11
Production in MMTOE Production Performance 16.00 14.00 12.00 12.80 14.16 4.81 10.00 8.00 6.00 4.00 2.00 0.00 0.25 3.87 5.06 6.34 8.80 8.78 8.87 7.95 1.96 2.22 2.36 2.15 2.70 2.53 2.92 1.76 9.47 8.75 8.87 8.92 8.36 7.26 2.87 3.34 3.41 1.35 0.52 6.84 6.56 6.51 6.77 5.80 6.22 4.58 4.34 3.35 3.71 5.49 5.53 5.51 4.37 9.35 8.43 FY '03 FY '04 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 FY '13 FY '14 FY'15 FY'16 FY'17 FY'18 Oil Gas 12
MMTOE MMT Production of ONGC Videsh to National Production Oil 40.00 30.00 20.00 10.00 0.00 FY 08 FY 09 FY 10 FY 11 FY '12 FY '13 FY'14 FY '15 FY '16 FY'17 India - Domestic 34.12 33.51 33.69 37.71 38.09 37.86 37.78 37.46 36.90 36.00 35.70 ONGC Videsh 6.84 6.56 6.49 6.76 6.21 4.34 5.49 5.53 5.51 8.43 9.35 ONGC Videsh Production (%) 20.0 19.6 19.3 17.9 16.3 11.5 14.5 14.8 14.9 23.4 26.2 FY'18 (P) Oil & Gas 100.00 75.00 50.00 25.00 0.00 FY 08 FY 09 FY 10 FY 11 FY '12 FY '13 FY'14 FY '15 FY '16 FY'17 India - Domestic 66.54 66.36 81.20 89.93 85.64 78.54 73.17 71.12 69.20 67.90 68.30 ONGC Videsh 8.80 8.78 8.87 9.45 8.75 7.26 8.36 8.87 8.92 12.80 14.16 ONGC Videsh Production (%) 13.2 13.2 10.9 10.5 10.2 9.2 11.4 12.5 12.9 18.9 20.7 FY'18 (P) Source : MoPNG 13
Presentation Overview 1 2 3 4 5 6 Introducing ONGC Videsh Global Footprint & Project details Reserves and Production Financials Growth plans Our Global NOC/IOC Partners 14
Cumulative Plan Expenditure 30 25 Cumulative Investment ITD Mar 2018 US $ 28.45 Billion 24.81 23.77 22.60 27.39 28.45 20 15 16.75 14.75 13.08 11.83 10.78 10 5-0.58 Upto FY'02 1.62 2.16 3.14 4.57 6.15 7.27 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 15
Turnover 5,000 4,728 In US $ Million 4,500 4,187 4,009 4,102 4,000 3,675 3,500 3,243 3,318 3,131 3,000 2,605 2,500 2,000 1,823 1,950 2,040 1,759 1,781 1,500 1,331 1,000 757 500-48 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'16 (Ind AS) FY'17 (Ind AS) FY'18 (Ind AS) 16
Net Profit 1,000 In US $ Million 800 600 595 611 591 568 723 735 400 200-12 93 169 203 367 440 311 113 152 (200) (400) (600) -555 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 (Ind AS) (Ind AS) (Ind AS) 17
Financing of Investments 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 Internal Accruals Equity - ONGC Loans - ONGC Loans - Market 30% 0% 10% 60% Investments largely financed from internal accruals As on 31.03.2018 ` 1,51,413 crore (US $ 28.45 Billion) 18
Presentation Overview 1 2 3 4 5 6 Introducing ONGC Videsh Global Footprint Reserves and Production Financials Growth plans Our Global NOC/IOC Partners 19
Acquisitions in last five years Acquired in PI% Assets December, 2013 12 BC-10, Brazil January, 2014 6 Area 1, Mozambique February, 2014 10 Area 1, Mozambique May, 2016 15 Vankorneft, Russia October, 2016 11 Vankorneft, Russia February, 2018 4 Lower Zakum Concession, UAE 7 Exploratory Blocks: 2 each in Myanmar and Bangladesh, and 1 in New Zealand 30% PI in Namibia PEL 0037 for Blocks 2112A, 2012B and 2113B 25% PI in Block 32, Israel Signed definitive binding agreements with Tullow Namibia Ltd. on 20 November 2017 for acquiring 15% PI in Namibia PEL 0030 for Block 2012A. 20
ONGC Videsh - Gaining reputation & stature Working in several assets as a credible operator / joint-operator Producing Discovered/D eveloping Exploration Pipeline Total Operator 1 1 12 0 14 Jointoperator Nonoperator 5 1 1 0 7 9 2 5 4 20 Total 15 4 18 4 41 21
Past Performance: foundation for future growth ONGC Videsh has cumulatively produced 128.517 MMToE of crude oil and gas since inception till FY 18. ONGC Videsh has made cumulative investment of Rs.1,51,413 crores till FY 18, of which equity, parent loans and overseas borrowings stand at Rs. 60,540 crores. The remaining Rs. 90,873 crores i.e. about 60% has been generated through internal resources, reflecting the growth and profitability of the company in the last decade. The value of reserves held by company in its books as of 31.03.18 ~711 MMToE of 2P reserves is much larger than the investments and will facilitate sustained growth ahead. 22
Presentation Overview 1 2 3 4 5 6 Introducing ONGC Videsh Global Footprint & Project Details Reserves and Production Financials Perspective Plan 2030 Our Global Partners 23
Our Partner 24
Recognitions and Awards SCOPE Award for Excellence and Outstanding Contribution to the Public Sector Management for 2009-10. India s Most International Company based on the Transnationality Index (TNI) as per survey by ISB, Hyderabad and Fundacao Dom Cabral (FDC), Brazil for 2011-12 and 2012-13. India Pride Awards 2013-14 as the best PSU in oil and gas sector. Best Employer Brand Organization in Oil and Gas in 2013 by Asia Oil & Gas Congress. Best Miniratna at Dun & Bradstreet PSU Excellence Awards 2015 Conferred with ICICI Lombard & CNBC-TV18 India Risk Management Awards 2016 in Public Sector Unit of the year category, at the third edition of The India Risk Management Awards. OVVL s US$1 billion dual-tranche bond deal awarded, the Best Corporate Bond deal from India at The Asset Triple A Country Awards 2016. Environmental sustainability, ICT Initiative and Employee Productivity award in Miniratna-I category at the 4 th edition of Governance Now PSU Awards-2016. SCOPE Award for Excellence and Outstanding Contribution to the Public Sector Management Institutional Category II (Miniratna-I & II PSEs) for 2014-15. Golden Peacock Award for Risk Management 2017 Best Risk Management Framework & Systems Risk Technology at the 4th edition of The India Risk Management Awards 2018. Strategic Performance Award in Miniratna-I category at the 5 th edition of Governance Now PSU Awards-2017. 25
Thank You Strategy and Corporate Planning ONGC Videsh Ltd. July 2018 26