SINGALE 1-24.cdr - ONGC

From the desk of Chairman and
Managing Director
Dear Stakeholders,
R.S. Sharma
I am pleased to share with you this First Sustainability Report of Oil and Natural Gas Corporation Limited (ONGC).
ONGC, the flagship Exploration & Production (E & P) company of India, owes its existence to the dream of Pandit
Jawaharlal Nehru, the first Prime Minister of India and Sri Keshava Dev Malaviya, the then Minister of Natural Resources
and Scientific Research who had immense faith in the potential of this industry. ONGC was built to achieve the vision of
energy security for India.
In 54 years of our existence, it has been an enriching and transformational journey for us, from the very first oil discovery at
Cambay, Gujarat in 1958 to becoming a premier oil and gas exploration and production company in the world, today.
Through years, our company has retained its leadership position in E&P business in India. Our exploratory efforts have
resulted in converting erstwhile frontier areas into new hydrocarbon provinces and helped to discover six of the seven
producing basins in India, which has the largest hydrocarbon reserve base and the largest hydrocarbon exploration
acreage in India.
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We have been ranked as the 3 E & P Company in the world as per Platt’s 250 Global Energy Companies List for the year
2009. We have added over 7.14 billion tonnes of in-place oil and gas volume of hydrocarbons in the last 54 years, a
significant contribution to the energy security of India, a nation that otherwise depends on imports for about 77% of its oil
requirements.
Macroeconomic scenario
With the increasing demand of all forms of energy, globally, and volatile oil price regime, we have to keep contributing
towards ensuring uninterrupted supply of petroleum products in India to support the steady economic growth of the
country. Our strategic goals of increasing reserves, enhancing recovery factor and securing oil and gas equity abroad are
aligned to achieve our country’s current and future energy needs.
Economic performance
During the concluding financial year 2009-10, we achieved a turnover of INR 1,085.79 billion and net profit amounted to INR
194.04 billion. The net worth of ONGC Group of companies crossed INR 1 trillion marks registering an increase of 10%
increase over last year.
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Our present oil reserves (as on 31 March 2010) (3P), including joint ventures and overseas assets, is 1,619.25 MTOE. Our
company has achieved a reserve replacement ratio of more than 1 during the last five successive years (a key overall
sustainability metric for an upstream oil and gas company).
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