INTRODUCTION

Not only had India set up her own machinery for Oil exploration and exploitation an efficient
Oil commission had been built where a large number of bright young men and women had been
trained and they were doing good work.
-Pundit Jawaharlal Nehru, Indias first Prime Minister to Lord Mountbatten, on ONGC (1959).
ONGC (Oil and Natural Gas Corporation Limited) the flagship company of India was incorporated on
June 23, 1993, is a public sector petroleum company. It is Indias leading NAVRATNA in the Oil &
Gas sector and Fortune 2000 company, the most valuable company in India(by market capitalization)
contributing 77% of Indias crude Oil production and 81% 0f Indias natural gas production. It is the
highest profit making corporation in India. It was set up as a commission on August 14, 1956.
The first in shore discovery came in 1958 and the offshore discovery was in 1974. Its daily
production is of 1 million barrels of Oil & Natural gas.
ONGC is focused on the key business objectives:

Creating Value
Strengthening Oil security
Maximizing return to Investors
Ensuring best feasible HSE practices, and
Blending prudence of a state enterprise with agility of a Transnational.
It is involved in exploring and exploiting hydrocarbons in 26 sedimentary basins of India. It
produced about 30% of Indias crude Oil.
ONGC has crossed the landmark of earning Net Profit exceeding Rs. 10,000 Cores, the first
to do so among all Indian Corporate, and a remarkable Net Profit to Revenue ratio of 29.8 per cent.

BASIC INFORMATION
Company name

: Oil & Natural Gas Corporation Limited.

ROC registration number

55-54155

Incorporation year

1959

Ownership

Central Govt. Commercial Enterprises.

Main Activity

: Exploration & Production of Oil and Gas

Subsidiary/is

: Mangalore Refinery & Petrochemical Ltd

ONGC Bonny Brahmaputra Ltd.
ONGC Narmada Ltd.
ONGC Videsh Ltd.

ONGC VISION AND MISSION STATEMENT

COMPANYS VISION
To be a world class Oil & Gas Company Integrated in energy business with
dominant Indian leadership and global presence.
Motto
Provide quality services with efficiency and transparency.
MISSION

Dedication towards leveraging competitive advantages in R&D and technology with involved people.
Imbibing high standards of business ethics and organizational values.
Abiding commitment to health, safety and environment to enrich quality of community life.
Fostering a culture of trust, openness and mutual concern to make working a stimulating & challenging
experience for our people.
Striving for customer delight through quality products and services
INTEGRATED IN ENERGY BUSINESS

Focus on domestic and international oil & gas exploration and production business opportunities.
Provide value linkages in other sectors of energy business.
Create growth opportunities and maximize shareholder value.

Dominant Indian Leadership

Retain dominant position in Indian Petroleum sector and enhance India's energy availability.
STRATEGIC VISION: 2001-2020

To focus on core business of E&P, ONGC has set strategic objectives of:
Doubling reserves (i.e. accreting 6 billion tones of O+OEG).
Improving average recovery from 28 per cent to 40 per cent.
Tie-up 20 MMTPA of equity Hydrocarbon from abroad.
The focus of management will be to monetize the money.
COMPETITVE STRENGTH

All crudes are sweet and most (76%) are light, with sulphur percentage ranging from 0.02-0.10,
API gravity ranging from 26-46 and hence attracts a premium in the market.
Strong intellectual property base, information, knowledge, skills and experience.
Maximum number of Exploration Licenses, including competitive NELP rounds.

ONGC owns and operates more than 11000 kilometers of pipelines in India, including nearly
3200 kilometers of sub-sea pipelines. No other company in India operates even 50 per cent of
this route length.
GLOBAL RANKING

It is Asias best Oil & Gas Company, as per a recent survey conducted by US-based magazine Global
Finance.
It is placed at the top of all Indian Corporate listed in Forbes 400 Global Corporate (rank 133rd) and
Financial Times Global 500 (rank 326th), by Market Capitalization.
It is recognized as the Most Valuable Indian Corporate, by Market Capitalization, Net Worth and Net
Profits, in current listings of Economic Times 500 (4th time in a row), Business Today 500, Business
Baron 500 and Business Week.
It is targeting to have all its installations (offshore and onshore) accredited (certified) by March 2005.
This will make ONGC the only company in the world in this regard.
It owns and operates more than 11000 kilometers of pipelines in India, including nearly 3200 kilometers
of sub-sea pipelines. No other company in India operates even 50 per cent of this route length.
Crossed the landmark of earning Net Profit exceeding Rs.10, 000 Core, and the first to do so among all
Indian Corporate, and a remarkable Net Profit to Revenue ratio of 29.8 per cent. The growth in ONGC's
profits is not solely due to deregulation in crude prices in India, as deregulation has affected all the oil
companies, upstream as well as downstream, but it is only ONGC which has exhibited such a
performance (of doubling turnover and profits).
Has paid the highest-ever dividend in the Indian corporate history.
Its 10 per cent equity sale (India's highest-ever equity offer) received unprecedented Global Investor
recognition. This was a landmark in Indian equity market, establishing beyond doubt, the respect ONGC's
professional management commands among the global investor community. According to a report
published in 'The Asian Wall Street Journal (Hong Kong)', ONGC's Public Issue brought in 20 Foreign
Institutional Investors (FIIs) to India, as (it was reported), 'they could not ignore the company
representing India's energy security'.
The Market Capitalization of the ONGC Group (ONGC & MRPL) constitutes 10 per cent of the total
market capitalization on the Bombay Stock Exchange (BSE). ONGC has an equity weight age of 5 per
cent in Sensex; 15 per cent in the Nifty (the only Indian corporate with a two-digit presence there);
ONGC commands a 7 per cent weight age in the Morgan Stanley Capital International (MSCI) Index.
ONGC has come a long way from the day (a few years back) when India and ONGC did not figure on the
global oil and gas map. Today, ONGC Group has 14 properties in 10 foreign countries. Going by the
investments (Committed: USD 2.708 billion, and Actual: USD 1.919 billion), ONGC is the biggest Indian
Multinational Corporation (MNC).
ONGC ended the sect oral regime in the Indian hydrocarbon industry and benchmarked the globallyestablished integrated business model; it took up 71.6 per cent equity in the Mangalore Refinery &
Petrochemicals Limited (MRPL), and also took up a 23 per cent stake in the 364-km-long Mangalore-Has
an-Bangalore product Pipeline, connecting the refinery to the Karnataka hinterland. By turning around
MRPL in 368 days, ONGC has set standards of public sector companies reviving joint (or private) sector
companies, proving that in business, professionalism matters, not ownership.
Indias Most Valuable Company

With a market capitalization having exceeded Rs 1 trillion, ONGC retains its position as the most
valuable company in India in various listings.
as per 5th Business Today Stern-Stewart study, ONGC was the biggest Wealth Creator during
1998-2003 (Rs 226.30 billion). It was again the highest wealth creator during 1999-2004, as per
MotilalOswal Securities.

ONGCs mega Public Offer (Indias biggest-ever equity offer worth more than Rs 100 billion
was oversubscribed 5.88 times.
The market capitalization of the ONGC group constitutes 8% of the market capitalization of
BSE.
ASSETS/BASINS/PLANTS/INSTITUTES
Assets/Plants
Mumbai High Asset, Mumbai
Neelam&Heera Asset Mumbai
Bassein& Satellite Asset, Mumbai
Uran Plant, Uran
Hazira Plant, Hazira
Ahmedabad Asset, Ahmedabad
Ankleshwar Asset, Ankleshwar
Mehsana Asset, Mehsana
Rajamundry Asset, Rajamundry
Karaikal Asset, Karaikal
Assam Asset, Assam
Tripura Asset, Agartala
Basins
Western Offshore Basin, Mumbi
Western Onshore Basin, Baroda
KG Basin, Rajamundry
Cauvery Basin, Chennai
Assam & Assam Arakan Basin, Jorhat
CBM-BPM Basin, Kolkata
Frontier Basin, Dehradun
Regions
Mumbai Region, Mumbai
Western Region, Baroda
Eastern Region, Nazira
Southern Region, Chennai
Central Region, Kolkata.
Plants
Uran plant, Uran.
Hazira plant, Hazira.
Institutes
Keshava Deva MalaviyaInsitute of Petroleum Exploration, Dehradun

Institute of Drilling Technology, Dehradun

Insititute of Reservior Studies, Ahmedabad
Institute of Oil & Gas Production Technology, Navi Mumbai
Institute of Engineering & Ocean Technology, Navi Mumbai
Geo-Data processing & Interpretation centre, Dehradun
Institute of Management development, Dehradun
Institute of Petroleum Safety, Health & Environment Management, Goa
Institute of biotechnology & Geotectonic studies (INBIGS),Jorhat
School of Maintenance Practices (SMP), Vadodara.
Centre for excellence in Well Logging (CEWL), Vadodara.
Regional Project Institutes, Navi Mumbai, Chennai, Sivasagar& Vadodara.
Services
Drilling Services, Mumbai
Well Services, Mumbai
Geo-Physical, Dehradun
Logging Services, Baroda
Engineering Services, Mumbai

ABOUT ONGC
The search for oil in India began way back in 1866 in Upper Assam. While oil was struck at Digboi in
1889 marking the beginning of oil production in India, discoveries were made in Nahorkatiya and Moran
oilfields in the late 1950s and early 60s in the northeastern region. In view of the growing demand of
crude oil, the Government formed Oil & Natural Gas Commission (ONGC) in 1956 to boost the
exploration of oil and gas in the country. ONGC made the first discovery in 1958 in the Cambay onshore
basin in Gujarat. During the 1960s, oil production in the country was confined to only Assam and Gujarat.
The discovery of oil and gas in the offshore region was made by ONGC in 1974 in Mumbai High which
opened up a new vista for oil and gas exploration and production in India. Subsequently, more discoveries
were made in the Krishna-Godavari, Cauvery and Rajasthan sedimentary basins. While the responsibility
of carrying out exploration and production activities in the country was entrusted to the national oil
companies (NOCs) almost till the beginning of 1990s, wherein they used to be granted the Petroleum
Exploration License (PEL) on nomination basis, the Centers liberalized economic measures opened up a
few acreages to private and joint venture companies through various exploration bidding rounds for
development of discovered fields.
The seeking and production of the crude oil and natural gas are generally referred to as exploration and
production phase of the total grant of function of the petroleum industry. A divide has thus been made in
the petroleum industry between the function relating to exploration and production of crude oil and
natural gas which is referred to as up-stream, and refining transportation and marketing to the end
consumer which are referred to as down-stream.
Oil and Natural Gas Corporation Limited (ONGC) (incorporated on June 23, 1993) is an Indianpublic
sector petroleum company. It is a Fortune Global 500 company ranked 335th, and contributes 77% of
India's crude oil production and 81% of India's natural gas production. It is the highest profit making

corporation in India. It was set up as a commission on August 14, 1956. Indian government holds 74.14%
equity stake in this company.
ONGC is one of Asia's largest and most active companies involved in exploration and production of oil. It
is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India. It produces
about 30% of India's crude oil requirement. It owns and operates more than 11,000 kilometers of pipelines
in India.

Oil and Natural Gas Corporation Limited (ONGC) was set up as a Commission on August 14,
1956 at Dehradun - with strategic national objective to explore and exploit hydrocarbon
resources of the country. ONGC which is Indias number one corporate with significant
contribution in industrial and economic growth of the country, has been a leading National oil
company of India engaged mainly in exploration, development and production of crude oil,
natural gas and some value added products. ONGC explores and produces oil and natural gas,
both on land and offshore in diverse logistic condition, from rugged mountains to deserts and
deep oceans.
The company became a corporate on June 23, 1993 and now it has grown into a full-fledged horizontally
integrated petroleum company. Today, ONGC is a flagship public sector enterprise and Indias highest
profit making corporate, achieving the record of being the first Indian corporate to register a five digit
profit figure of Rs. 10,529 Crores in the year 2002-03. Since its inception, ONGC has produced more than
600 million metric tonnes of crude oil and supplied more than 200 billion cubic metres of gas. Currently,
ONGC is the most valuable company in India, contributing 77 percent of Indias crude oil production and
81 per cent of Indias natural gas production.

ONGC today, is endeavoring to become a world-class oil and gas company in pursuit of E&P
business in both domestic and international arena and related opportunity specific energy
business.
ONGC is Indias largest producer of crude oil, natural gas and LPG. The principal activities of
ONGC include acquisition of mineral interests in properties, exploration (including prospecting),
development, production, transportation and marketing crude oil and natural gas. It also produces
several value added products (VAP) like Liquefied Petroleum Gas (LPG), Natural Gas Liquid
(NGL), Naphtha (including Aromatic Rich Naphtha), Superior Kerosene Oil (SKO), EthanePropane (C2-C3), High Speed Diesel (HSD), Sulphur, Low Sulphur Heavy Stock (LSHS) at their
crude & gas processing facilities
To sustain its growth, ONGC has drawn up ambitious strategic objectives, which include
doubling the oil and gas reserves. Having accreted six billion tonnes oil and oil equivalent
reserves in its first 45 years of operation, ONGC now aims to double these reserves by 2020. The
second strategic objective is to augment the global recovery factor from the existing 28 per cent
to the global norm of 40 per cent in next 20 years.
Out of the six billion tones of oil and gas reserve accretion, four billion tonnes is expected to
come from Offshore and Deep Waters. To improve the recovery factor from the existing fields,
ONGC is investing Rs. 2,000 Crores in 15 re-development schemes.

ONGC is an organization which has joint ventures domestic as well International like:a. Domestic Joint Venture:- ONGC Tripura Power Company (P) Ltd. (OTPC)
Petro net LNG Limited
Petro net MHB Limited
Pawan Hans Helicopters Limited
b. Overseas Joint Venture: -ONGC - Mittal Energy Ltd. (OMEL)
ONGC - Mittal Energy Services Ltd. (OMSEL)

ONGC HISTORY
1947-1960
During the pre-independence period, the Assam Oil Company in the northeastern and Attack Oil company
in northwestern part of the undivided India were the only oil companies producing oil in the country, with
minimal exploration input. The major part of Indian sedimentary basins was deemed to be unfit for
development of oil and gas resources.
After independence, the national Government realized the importance oil and gas for rapid industrial
development and its strategic role in defense. Consequently, while framing the Industrial Policy Statement
of 1948, the development of petroleum industry in the country was considered to be of utmost necessity.
Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources of India. In
Assam, the Assam Oil Company was producing oil at Digboi (discovered in 1889) and the Oil India Ltd.
(a 50% joint venture between Government of India and Burmah Oil Company) was engaged in
developing two newly discovered large fields Naharkatiya and Moran in Assam. In West Bengal, the
Indo-Stanvac Petroleum project (a joint venture between Government of India and Standard Vacuum Oil
Company of USA) was engaged in exploration work. The vast sedimentary tract in other parts of India
and adjoining offshore remained largely unexplored.
In 1955, Government of India decided to develop the oil and natural gas resources in the various regions
of the country as part of the Public Sector development. With this objective, an Oil and Natural Gas
Directorate was set up towards the end of 1955, as a subordinate office under the then Ministry of Natural
Resources and Scientific Research. The department was constituted with a nucleus of geoscientists from
the Geological survey of India.
A delegation under the leadership of Mr. K D Malviya, the then Minister of Natural Resources, visited
several European countries to study the status of oil industry in those countries and to facilitate the Project
of Indian professionals for exploring potential oil and gas reserves. Foreign experts from USA, West
Germany, Romania and erstwhile U.S.S.R visited India and helped the government with their expertise.
Finally, the visiting Soviet experts drew up a detailed plan for geological and geophysical surveys and
drilling operations to be carried out in the 2nd Five Year Plan (1956-57 to 1960-61).
In April 1956, the Government of India adopted the Industrial Policy Resolution, which placed mineral oil
industry among the schedule 'A' industries, the future development of which was to be the sole and
exclusive responsibility of the state. Soon, after the formation of the Oil and Natural Gas Directorate, it
became apparent that it would not be possible for the Directorate with its limited financial and
administrative powers as subordinate office of the Government, to function efficiently. So in August,
1956, the Directorate was raised to the status of a commission with enhanced powers, although it
continued to be under the government. In October 1959, the Commission was converted into a statutory
body by an act of the Indian Parliament, which enhanced powers of the commission further. The main

functions of the Oil and Natural Gas Commission subject to the provisions of the Act, were "to plan,
promote, organize and implement programs for development of Petroleum Resources and the production
and sale of petroleum and petroleum products produced by it, and to perform such other functions as the
Central Government may, from time to time, assign to it ". The act further outlined the activities and steps
to be taken by ONGC in fulfilling its mandate.
1961-1990
Since its inception, ONGC has been instrumental in transforming the country's limited upstream sector
into a large viable playing field, with its activities spread throughout India and significantly in overseas
territories. In the inland areas, ONGC not only found new resources in Assam but also established new oil
province in Cambay basin (Gujarat), while adding new petroliferous areas in the Assam-Arakan Fold Belt
and East coast basins (both inland and offshore).
ONGC went offshore in early 70's and discovered a giant oil field in the form of Bombay High,
now known as Mumbai High. This discovery, along with subsequent discoveries of huge oil and gas fields
in Western offshore changed the oil scenario of the country. Subsequently, over 5 billion tonnes of
hydrocarbons, which were present in the country, were discovered. The most important contribution of
ONGC, however, is its self-reliance and development of core competence in E&P activities at a globally
competitive level.
After 1990
The liberalized economic policy, adopted by the Government of India in July 1991, sought to deregulate
and de-license the core sectors (including petroleum sector) with partial disinvestments of government
equity in Public Sector Undertakings and other measures. As a consequence thereof, ONGC was reorganized as a limited Company under the Company's Act, 1956 in February 1994.
After the conversion of business of the erstwhile Oil & Natural Gas Commission to that of Oil &
Natural Gas Corporation Limited in 1993, the Government disinvested 2 per cent of its shares through
competitive bidding. Subsequently, ONGC expanded its equity by another 2 per cent by offering shares to
its employees.
During March 1999, ONGC, Indian Oil Corporation (IOC) - a downstream giant and Gas
Authority of India Limited (GAIL) - the only gas marketing company, agreed to have cross holding in
each other's stock. This paved the way for long-term strategic alliances both for the domestic and overseas
business opportunities in the energy value chain, amongst themselves. Consequent to this the Government
sold off 10 per cent of its shareholding in ONGC to IOC and 2.5 per cent to GAIL. With this, the
Government holding in ONGC came down to 84.11 per cent.
In the year 2002-03, after taking over MRPL from the A V Birla Group, ONGC diversified into
the downstream sector. ONGC will soon be entering into the retailing business. ONGC has also entered
the global field through its subsidiary, ONGC Videsh Ltd. (OVL). ONGC has made major investments in
Vietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from its investment in Vietnam.

SWOT ANALYSIS OF ONGC

1) STRENGTHS
O.N.G.C LTD is perceived to be the leader in oil production industry.
It has a very efficient and professional management team.
Being an international company has sufficient resources and capital to invest.
O.N.G.C has ISO-9001 & ISO 14001 registration.

2) WEAKNESS
O.N.G.C is facing difficulties to produce oil from aging reservoirs.

3) OPPURTUNITY
Energy utilization of buried coal resource (700 -1700M), estimated 63BT Equivalentto 15000 BCM.
4) THREATS

Security of personnel & property especially crude oil continues to be a cause of concern in certain area.
Some exploration Campaign Company involves high technology, high technology, high investment and

high risks.

ONGC OFFICES ALL OVER INDIA

ORGANOGRAM
Here Asset Manager is the Head of the Asset and Executive Director. All the departments of Asset are
under him. All the Department Heads directly reports to him.
Sub-surface team is responsible for all the pre-production Geological and Exploration work required for
discovery of reserves or for a particular well.
Surface team is responsible for all the work required for getting the oil or gas from the surface of the well
to GGS/ CPF/ CTF.
Support team has various sub departments like Finance, HR/ER, Infocomm, Logistics, MM etc.

Business Need
ONGC decided to implement SAP R/3 and mySAP.com solution components to enable them to work
seamlessly across boundaries as a single entity and integrate their sales and manufacturing processes,
project related activities and maintain their assets to gain a competitive advantage. To maintain all the
documents and document versions, ONGC has decided to implement SAPLifecycle Data Management
module. My SAP Business Suite with tailored functionality helps the company across the globe to lower
costs, increase profitability and improve competitiveness

Benefits

The user can plan and request changes to manuals / drawings and these can be accessed across
the organization.
Availability and accessibility to latest version of documents / drawings across the organization at
any point of time.
Viewing capability of documents across the organization.
As the drawings / specification can be viewed by many users, their comments / suggestions can
be taken and saved into versions The documents can be searched quickly with respect to the
technical parameters Linking of documents, drawings, specification sheets, charts to other SAP
objects.
CLASSIFICATION OF ACTIVITIES
For working out activity wise outlays, the activities have been classified under two categories:A. Final Activities
1. Survey
2. Exploratory Drilling
3. Development Drilling
4. Capital
5. R&D
6. JVs
7. Operating Expenditure (OPEX)

Budget will ultimately lie under these activities after running of all budget allocation cycles as budget is
approved by the Board and the Govt. under these heads.
B. Intermediate Activities
It is anticipated that budget for services cannot be identified with the main activities at the time of feeding
line item wise budget data. As such following intermediate activities have also been classified in the
budget software:
1. Drilling Services
2. Cementing Services
3. Mud Services
4. Work over Services
5. WSS Services
6. Well Completion Services
7. Logging Services
8. Engineering Services
9. Logistics Services
10. Geophysical Service
11. Project Over heads
12. Regional & Headquarter Overheads
Budget for services is first captured under these intermediate activities and then allocated to Final
activities through cost allocation sheets. Accordingly, while linking the cost centers to activities for these
services, cost centers will be linked to the relevant intermediate activities and not to the final activities.
C. Sub Activities
Each of the Final Activity and Intermediate Activity has been further been classified under sub activities
to capture further details of activity wise expenditure. These sub activities are mainly Offshore-Deep
Water, Offshore-Shallow Waters and On Shore. In case of OPEX, sub activity codes have been defined in
line with Schedule 21 as adopted in Balance Sheet heads of OPEX. to facilitate capturing of OPEX
expenditure under Schedule 23 heads .