SINGALE 1-24.cdr - ONGC

Sustainability goals and setting of action
plans
Our Board of Directors regularly communicates with the key stakeholders to discuss the strategic matters and
sustainability issues are central to the discussion agenda. The issues are translated into long-term, medium-term and
short-term action plans consequently.
Long-term action plans: Keeping in mind the above sustainability issues in view, long-term plans related to resource
mobilisation, manpower and financials are worked out for business units in a bottom-down approach. Long-term plans are
broken down in five years time-frame coinciding with the Five Year Plans of the Govt. of India.
Medium-term action plans: Medium-term action plans are driven by the strategic goals and long-term action plans.
Keeping in view the resources, prospectivity of the E&P assets, unit wise five year plans are firmed up and communicated to
the Government for integrating the plan with the National five year plan. Mid-course review and suitable corrective
measures are deliberated in Asset Review Meetings.
Short-term action plans: ONGC signs a Memorandum of Understanding (MOU) with the administrative ministry-Ministry
of Petroleum and Natural Gas (MOP&NG) every year. This MOU sets the financial, operational and enterprise specific
efficiency targets related to management of the organization in quantitative terms. Each of the business units firms up its
respective targets which are moderated keeping in view the medium/ long-term plans. The short term action plan is
deliberated in the Executive Committee (EC) comprising CMD and the functional Directors. The EC recommends the shortterm
action plan to the Board of Directors for approval. From 2010-11 (next reporting period), this MOU will also evaluate
our performance specifically on sustainability development.
Performance governing mechanism: We have a well defined system of ‘Performance Contracts’ that are agreed between
the key executives with their respective Directors where clear and measurable Key Performance Indicators (KPIs) and Key-
Result Areas (KRAs) are identified. We have Service Level Agreements with our service providers with a robust mechanism
for performance measurement and monitoring.
MOU targets with respective performance
levels for FY 2010-11
Sustainable Production Average cost of production (US$/BBLOE) – 14.84
No of HSE audits (installations) – 200
No of surveillance audits for sustaining ISO/OSHAS
accreditation (installations) – 365
No of registered CDM projects – 2
GHG accounting (installations) – 59
Sustainable Technology and Field Services Productivity per employee (BOE/employee) – 11285
No of Technical audits (equipments/systems) – 470
Sustainable Exploration Reserve accretion 3P (MTOE) – 76.9
Average finding cost (US$/BBLOE) – 3.92
No of R & D projets – 7
Sustainable Finance Economic Value Added (EVA) – 20.29
Sustainable Human Resources Training man days - 85000
HR initiatives – coaching and mentoring, HR audit,
engagement survey
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