ONGC

OIL AND NATURAL GAS CORPORATION LIMITED COMPANY SECRETARIAT CS/ONGC/SE/2022-23 31.05.2022 National Stock Exchange of India Ltd. BSE Limited Listing Department Corporate Relationship Department Exchange Plaza Phiroze Jeejeebhoy Towers Bandra-Kurla Complex, Bandra (E) Dalal Street, Fort Mumbai – 400 051 Mumbai – 400 001 Symbol-ONGC; Series - EQ BSE Security Code No.- 500312 Sub: Presentation - Investors' and Analysts' Meet 2022 Ref.: Related intimation vide even number dt. 27.05.2022 Madam/ Sir, Pursuant to Regulation 46(2) and 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith a copy of the subject presentation. Copy of the said presentation has also been uploaded on the website of the Company. This is for reference and record. Thanking you, Yours faithfully, For Oil and Natural Gas Corporation Ltd RAJNI Digitally signed by RAJNI KANT KANT Date: 2022.05.31 08:22:03 +05'30' (Rajni Kant) Company Secretary & Compliance Officer, End.: As Above (40 Pgs.) Regd. office: Plot No 5A-5B, Nelson Mandela Road, Vasant Kunj, New Delhi-110070 Phone: 011-26754085, 011-26754073 EPABX : 26750111, 26129000 FAX : 011-26129081 CIN: L74899DL1993GOI054155 Website: www.ongcindia.com Email: secretariat@ongc.co.in Investors’ and Analysts’ Meet 2022 30th May 2022, Mumbai Disclaimer • This presentation does not provide individually tailored advice but is an effort to express views that may be considered debatable, and may not conform to different views on the topic and does not contain any information of strategic nature emerging from the ONGC group of Companies. • The Company has prepared this presentation based on information available to it, including information derived from public sources that have not been independently verified. While reasonable efforts have been made to provide reliable information through this presentation, no representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. Neither the Company nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from use or reliance on this presentation or its contents or otherwise arising in connection therewith. • This presentation had been prepared without regard to any pressure group, institution/ lobby on international affairs or relations and is not meant to aim at any individual, institution, group, country, government or political representatives, its ideology, thinking or prophesy. • This presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. The information contained herein does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. All investors should conduct their own investigation and analysis of the Company and consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. • This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. 2 ONGC : Setting New Standards ₹ 1,10,345 cr 3 Women ₹ 40,306 cr Directors ₹ 2,736 Crores in last ~ ₹1,80,000 Cr. Highest Ever ~ ₹ 2,00,500 Most Gender Diversified 5 years Revenue & Profit Crores Maharatna Board Leader in CSR spending Highest Market Cap Among CPSEs 25% of Total Networth among all CPSEs of all Maharatna CPSEs 3 Presentation Overview 1. ONGC Group 2. Standalone Performance 3. Growth Pursuits 4. Subsidiaries & JVs 5. Responsible Corporate ONGC Group Integrated Energy Company: Expanding Footprints in Energy Business Refinery* / Services / Upstream VAP LNG Power Renewables Petchem Others 38 MMTPA / ~ 56 MMTOE ~ 3,100 KTA 22.5 MMTPA 726 MW ~ 348 MW 4.2 MMTPA (49%) (49.996%) (71.63%) (12.5%) (50%) (50%) (49.36%) (100%) * (26%) (49.98%) (54.9%) Consolidated Turnover : ₹ 5,31,762 Crore (US $ 69 Billion) (20%) *Amalgamated with MRPL w.e.f01.04.2021 5 Assets & Basins: Exploration & Production ONGC has cumulatively produced ~2,000,000,000 tons of Oil and Gas in India RKOEA Asset Assam Asset Bokaro Asset Mehsana Asset (CBM) Jorhat Asset Assam & Western Ahmedabad Assam Arakan Onshore Asset Basin Basin Silchar Asset Ankleshwar Asset Tripura Asset Rajahmundry Cambay Asset Asset KG–PG Basin Eastern Offshore Mumbai Offshore Asset MH, NH, B&S Assets (Western Offshore Basin) Karaikal Asset HPHT Asset (Cauvery Basin) (acquired from GSPC) 6 ONGC Group: Resilient Performance in FY’22 2P Reserves Oil & Gas Production • Oil & Gas production of • Estimated 2P O+OEG Reserves on Group, including PSC-JVs and PRMS basis 1,221.48 55.72 from overseas Assets MMTOE ONGC : 710.19 MMTOE MMTOE • ONGC contributed ~68% to JV Share : 16.42 MMTOE India’s Oil & Gas Production OVL : 494.87 MMTOE (including JV’s share) Refinery Throughput Financials • Revenue from Operations of • HPCL & MRPL refinery ₹ 5,31,762 crore 29.02 5,31,762 ₹ throughputs stood at 13.97 MMT MMT and 15.05 MMT Crore • Profit after Tax of respectively ₹ 49,294 crore 7 Resilient Consolidated Performance Parameter FY ’21 (₹ Cr) FY’22(₹ Cr) Total Income 3,69,796 5,39,200 (Revenue + Other Income) EBITDA 58,805 87,311 PAT 21,360 49,294 Total Debt 1,19,061 1,07,775 Total Equity (includes minority interest) 2,42,597 2,83,328 Total Capitalisation 3,61,658 3,91,104 Debt / Total capitalisation 32.9% 27.56% Debt / EBITDA 2.0X 1.2X 8 Robust Capital Structure Consolidated Total Debt to Equity Ratio 0.52 0.49 0.48 0.46 0.38 2017-18 2018-19 2019-20 2020-21 2021-22 Debt to Equity Ratio Standalone Borrowings Came Down From Peak of ₹ 25,593 Cr. in FY18 To ₹ 6397 Cr. in FY22 9 Strong Credit Ratings DOMESTIC Long Term AAA AAA AAA Short Term A1+ A1+ A1+ INTERNATIONAL Baa3 BBB- BBB- 10 Presentation Overview 1. ONGC Group 2. Standalone Performance 3. Growth Pursuits 4. Subsidiaries & JVs 5. Responsible Corporate Highlights of FY 2021-22 Added one more basin : Commercial potential of Vindhyan Basin through Hatta#3 Exploration Accelerated Exploration : Bagged 85% of blocks in OALP Round VI & VII : 43,494 Sq. km Notified four new discoveries, Monetized 6 discoveries including two of current year • Wells drilled : 434 wells (78 Exploratory & 356 Development) • Drilling cycle speed : 102% Wells drilled : 434 wells (78 Exploratory & 356 Development) Drilling Drilling cycle speed : 102% O+OEG production : 43.387 MMTOE Production Onshore oil production for last 5 years : 6 MMT level despite natural decline KG-DWN-98/2 : One Gas Field (U) monetized 02 Major projects completed : ₹ 3,807 Cr Projects 06 Projects approved : ₹ 5,740 Cr Boost to WO-16 : Sagar Samrat (MoPU) Positioned Partnership : MoU signed with SECI to develop renewable energy Beyond E&P Group Synergy : Naphtha Exchange between MRPL and OPaL New hydrocarbon Initiative : Agreement signed with IOC for Gas Hydrates New Marketing Avenues: ONGC Commenced Domestic Gas Trading on IGX on 23.05.2022 12 ONGC : Physical Performance 2P Reserves (MMTOE) Oil and Gas Production incl. of JV (MMTOE) 748 752 721 710 50.04 48.25 45.35 43.39 403 407 25.81 24.90 394 383 22.82 21.68 345 345 326 327 24.23 23.35 22.53 21.71 FY'19 FY'20 FY'21 FY'22 FY'19 FY'20 FY'21 FY'22 Oil Gas Oil (MMT) Gas (BCM) Value Added products (KT) Drilling (No. of Wells) 3,641 3,548 514 500 480 3,120 3,089 434 105 106 100 78 409 394 380 356 FY'19 FY'20 FY'21 FY'22 FY'19 FY'20 FY'21 FY'22 Naptha SKO HSD LPG C2,C3,C2-C3 Others* Exploratory Development 13 ONGC: Financial Performance Gross Revenue (₹ Crore) PAT (₹ Crore) 40,306 1,09,655 1,10,345 26,765 96,214 68,141 13,464 11,246 FY'19 FY'20 FY'21 FY'22 FY'19 FY'20 FY'21 FY'22 EPS (₹ ) Dividend Per Share (₹ ) 10.50 32 7 21 5 3.60 11 9 FY'19 FY'20 FY'21 FY'22 FY'19 FY'20 FY'21 FY'22 Highest Ever Dividend of ₹13,210 Crores 14 Presentation Overview 1. ONGC Group 2. Standalone Performance 3. Growth Pursuits 4. Subsidiaries & JVs 5. Responsible Corporate ONGC Discovered 7 out of 8 Producing Basins of India 1889: Assam Shelf* 1958: Cambay Basin 1973: A&AA FB 1967: Rajasthan Basin 1980: KG Basin 1974: Mumbai Offshore 1985: Cauvery Basin 2022: Vindhyan Basin # 2018: Bengal Basin Focus On Bringing More Basins On Production Map Of India In Next 3 - 4 Years * By AR & T Co. -Assam Railways and Trading Company Ltd. 16 # 9th Basin : New Discovery in March 2022 Accelerated Exploration : Acreage Expansion ❖Committed to acquisition of ~31,000 skm of No go area Area in Sq. Km. in Western Offshore will add acreages across all categories of up basins with focus on expanding exploration in unexplored cat-II & III basins & DW ❖Envisaged to add around 1,00,000 Sq. Km of new exploration area annually up to 2024-25 ❖Increase of acreage holding likely to further establish the resource Future Rounds potential of undiscovered plays and realization of YTF Note: Figure is excluding 31,640 Sq. Km of area which has been proposed for relinquishment ₹ 31,000 Cr. ($ 4 Billion) to further intensify Exploration Campaign During FY 2022-25 17 ONGC: Short Term Action Plan 18.2% Growth in O+OEG Envisaged in Next three years 40.453 26.124 24.387 20.907 21.097 21.588 21.701 19.545 19.88 Oil: MMT Gas: BCM O+OEG: MMTOE 2021-22 2022-23 2023-24 2024-25 Crude Oil Gas Projections (Excluding JVs) 18 Projects Under Implementation Intensify Exploration, Monetize Discoveries & Maximize Recovery ❖ KG-DWN-98/2 Cluster –II 20 Major Projects (> ₹ 100 Crore) under ❖ Cluster-8 Marginal Fields (WO 24-3, D-30 and B-192) implementation e ❖ Mumbai High South Redevelopment Phase-IV r o ❖ Mumbai High North Redevelopment Phase-IV h 14 Development & 6 Infrastructure Projects: s ❖ Heera Re-development Phase-III f Investment of ~ ₹ 59,000 Cr f ❖ Conversion of Sagar Samrat to MOPU O ❖ Pipeline Replacement Project – VI & VII Aggressive Investment ❖ Redevelopment of Santhal Field ❖ Redevelopment of Nandasan Field ONGC Cumulative Capex : ₹ 4.92 Lakhs Cr. ❖ Redevelopment of Sobhasan Complex ❖ Redevelopment of Linch Field E&P expenditure of about ₹ 1,50,000 Cr. in ❖ Development of CBM Bokaro last 5 years ❖ Development of Madanam NELP Block CY-ONN-2002/2 e r o ❖ Gas Assisted Gravity Drainage Scheme, Kasomarigaon h ❖ Commercial Polymer Flooding Project in Bechraji field s n ❖ Gas Compressor Project at Ankleshwar Asset O Envisaged lifecycle Gain of 85.5 ❖ Development of Jharia CBM Block (Phase-1) ❖ Creation of Gas Dehydration Facilities MMTOE 19 Technology Initiatives To improve Operational Technology Technology Technology Collaboration Efficiency and maximise Substitution + Upgradation + Integration & Partnerships Production • Managed Pressure Drilling (MPD) & Radial Drilling with CTU • Plunger Lift for water unloading from Gas Wells in Tripura • Mutli-stage Hydro-fracturing (Ahmedabad, Gamij, Malleswaram) & Micro-seismic for HF Technology Monitoring Initiatives • Tubing Rotator to mitigate SRP Rod failures. (Mehsana & Ahmedabad) • Heavy Oil Operating System (HOOS) Technology (Nawagam & Gamij) • Hydraulic Pumping System (Mehsana) • High Efficiency Chemical Free Tiny-Bubble Technology- for effluent water treatment (Cambay) Tiny Bubble Flotation System - Cambay Hydraulic Pumping System - Mehsana HOOS -Ahmedabad Plunger Lift System - Tripura 20 International Outreach Initiative at Highest Level Reached out at highest level to Global E & P majors for collaborations ❖ CMD-CEO Meetings / Interactions held ❖ MoU with Exxon ❖ MoU with Saudi Aramco ❖ MOU with Equinor ❖ Data sharing under progress with major IOC’s 21 Presentation Overview 1. ONGC Group 2. Standalone Performance 3. Growth Pursuits 4. Subsidiaries & JVs 5. Responsible Corporate ONGC Videsh Limited Presence across 15 countries in 35 projects Exploration: 14 Development: 4 Producing: 14 Pipeline: 3 CIS & Russia Azerbaijan Africa Russia South East Asia Libya Vietnam South Sudan Myanmar Mozambique Bangladesh Latin America Venezuela Middle East Syria Colombia Iraq Brazil Iran UAE 23 ONGC Videsh: Performance 2P Reserves (MMTOE) Oil and Gas Production (MMTOE) 676 14.98 587 14.83 13.04 495 12.33 490 335.36 4.73 5.23 4.53 347.915 4.23 300.01 302.05 10.10 9.75 340 8.51 8.10 239 190 193 FY'19 FY'20 FY'21 FY'22 FY'19 FY'20 FY'21 FY'22 Gas Oil Gas (BCM) Oil (MMT) *PRMS adopted from FY’21 Turnover (₹ Crore) PAT (₹ Crore) 17,322 1,891 15,498 1,682 14,632 1,589 11,956 454 FY'19 FY'20 FY'21 FY'22 FY'19 FY'20 FY'21 FY'22 24 ONGC Videsh : FY’22 Highlights CPO-5 Block (Colombia) : Total of 11 exploratory wells drilled, with 5 wells commercially producing hydrocarbons. CPO-5 block ended the year with a production of 21,000 bopd, making it a significant exploratory success for ONGC Videsh BM SEAL-4 (Brazil) : Declaration of Commerciality (DoC) has been submitted to Regulator on 30/12/2021. Currently working with Petrobras (Operator) for formulation of Field Development Plan Lower Zakum Concession (UAE) : To achieve production of 450 KBD by 2025 and 500 KBD by 2028, Gas handling capacity being augmented by laying a new 34” New Main Gas Line Overall consolidated external Borrowings reduced by about USD 716.75 million (Rs 5,430 crore) Fresh borrowings (to refinance existing loans upon maturity and/or to reduce borrowing costs and extend maturity date) of USD 1,200 million raised during FY’22 25 Hindustan Petroleum Corporation Ltd. (HPCL) A Maharatna Schedule “A” CPSE 20,025 retail outlets, # 1 Lube Marketer & # 2 LPG marketer of India Commissioned: • 1,391 new retail outlets • 2 New LPG plants • 51 new LPG distributorships • CNG dispensing facilities at 413 retail outlets • 927 EV charging facilities and 273 Mobile Dispensers • Battery Swapping Stations set up at 8 Retail Outlets Received authorization for CGD network in 3 Geographical Areas in FY22, taking total to 23 GAs in 48 districts across 12 states 33 patents for new products/ technologies developed during the year Expansion & Diversification 26 HPCL: Performance Throughput (MMT) GRM($/BBL) 7.19 17.18 16.42 13.97 3.86 1.02 FY20 FY21 FY22 FY20 FY21 FY22 Gross Sales (₹ Crore) PAT (₹ Crore) 3,72,642 2,86,250 2,69,243 10,663 6,383 37.45 MMT 39.6 MMT 35.20 MMT 2,637 FY20 FY21 FY22 FY20 FY21 FY22 27 Mangalore Refinery & Petrochemicals Ltd. (MRPL) 14 new Retail Outlets commissioned in 2021-22 and further 2 in the current fiscal. With this, MRPL has 35 outlets in operation BS-VI facilities and Desalination Plant commissioned in 2021-22 Marketing Terminal in Devangonti (near Bengaluru) under implementation Augmentation of Power Import Facility from 14MW to 85 MW, Renewable Energy Project & ENCON Projects to reduce Energy Intensity CCR-1 Revamp for greater value addition A Category 1 Miniratna CPSE 28 MRPL : Performance Throughput (MMT) GRM ($/BBL) 15.05 13.95 8.72 11.5 3.71 -0.23 FY'20 FY'21 FY'22 FY'20 FY'21 FY'22 Gross Sales (₹ Crore) PAT (₹ Crore) 86,064 60,752 2,958 50,796 FY'20 FY'21 FY'22 FY'20 FY'21 FY'22 -2,708 -765 29 ONGC Mangalore Petrochemicals Ltd. (OMPL) Aromatic Petrochemical Complex producing Paraxylene & Benzene Amalgamated with MRPL with effect from April 1, 2021 Overall capacity utilization for FY’22 was 72% Ministry of Corporate Affairs vide its order dated 14-04-2022 sanctioned the scheme of amalgamation of OMPL and MRPL Necessary filings had been made in RoC on 01-05-2022 for concluding the merger Synergy of OMPL and MRPL will maximize margins of refinery and petrochemicals in tune with market dynamics Pursuant to the scheme of Amalgamation approved by MCA vide Order dated 14.04.22, OMPL has been amalgamated with MRPL with effect from April 1, 2021 (the appointed date') 30 ONGC Petro Additions Ltd. (OPaL) A Joint venture with GAIL & GSPC Overall capacity utilisation during FY’22 : 95%. Sold 1.82 Million tons of Polymers and Chemicals Revenue from Operation in FY 22 : ₹ 16,048 Crore EBIDTA for FY 22 : ₹ 2,561 crore One of the Largest Dual Feed Crackers in the world 1.1 MMTPA Feedstock integration project of ONGC (Utilizing C2, C3 and C4 gas feed and Naphtha produced by ONGC) 31 ONGC Tripura Power Company Ltd. (OTPC) A Joint venture with Govt. of Tripura 4,124 Million Units of power generated Plant Availability Factor at 65% (unit I under planned shutdown for annual inspection for 104 days) Revenue from Operation: ₹ 1,263 Crore; PAT: ₹ 107 crore 726.6 MW (363.3x2) Combined Cycle Gas Turbine (CCGT) Thermal Power Plant 32 Petronet MHB Limited (PMHBL) FY 22 : Throughput 2.841 MMTPA Revenue : ₹ 128 Crore PAT : ₹ 60.28 Crore Mangalore – Hassan – Bengaluru JV pipeline (362.3 Km) transporting products from MRPL to OMCs hinterland of Karnataka in cost effective and environment friendly manner. 33 Indradhanush Gas Grid Limited (IGGL) A Joint venture with Shareholding - ONGC-20%, IOCL-20%, GAIL-20%, OIL-20%, NRL-20% Indradhanush Gas Grid Limited (IGGL) incorporated on 10th August 2018 Implementing Northeast Gas Grid (NEGG), 1,656 Km long natural gas pipeline grid spanning across all North-Eastern states, at an estimated cost of INR 9,265 crores CCEA approved VGF/ Capital Grant of INR 5,559 Crore for NEGG project Gas grid shall connect from Barauni-Guwahati natural gas pipeline as part of Urja-Ganga scheme 3-phase implementation with expected completion by 2024: Phase-1: 557 kms (in 5 sections) Phase-2: 719 kms (in 7 sections) Phase-3: 304 kms (in 2 sections) Physical progress of project is 43% as on 31.03.2022 34 Presentation Overview 1. ONGC Group 2. Standalone Performance 3. Growth Pursuits 4. Subsidiaries & JVs 5. Responsible Corporate ONGC: ESG Practices Commitment towards Climate, Society and Ethical work practices ENVIRONMENT SOCIAL GOVERNANCE Committed for conserving Climate Committed to Social welfare & inclusion Committed to Integrity and ethical practices • Regular Greenhouse Gas (GHG) inventory • One of the first companies to issue separate • 1stsignatory in India totheIntegrityPact accounting and disclosures on scope-1 and CSR Guidelines in 2009 which prepared base scope-2 emissions; Implemented number of for DPE Guidelines in 2010 & Companies Act • IT enabled with SAP integration in most GHG mitigation projects across the value 2013 functions, including e-procurement, intranet, chain for GHG abatement paperless office etc; minimizing human • CSR activities aligned with needs of intervention • Implemented 15 Clean Development community in respective geographies: Mechanism (CDM) Projects including OTPC, Initiativesimplementedin projectmode. • The Board not only institutionalizes and 2.2 million Certified Emission Reductions with reviews polices, but also focuses on overall OTPC having emission reduction potential of • CSR programs mainly in areas of Healthcare, organizational practices, awareness creation 16 lakh ton CO e per annum. 3 new projects 2 Education, Environment, Women and monitoring. under validation. Empowermentand Heritagepreservation • Strong and effective Whistle Blower • Renewable energy projects, Installation of • Every CSR project is benchmarked to UN mechanism, Dedicated Vigilance Department energy efficient lighting, Paperless office and SustainableDevelopmentGoals (SDGs). headed by CVO, who holds rank of elimination of single useplastics Functional Director and reports to CVC, • AverageCSR spendof ~ ₹500 Crore peryear Government of India • Fresh water conservation: Water Foot printing, Rainwater Harvesting, Sewage TreatmentPlants & Desalination 36 Corporate Social Responsibility Leader in CSR Spending Average CSR Expenditure ~ 500 Crore every year ₹ CSR Spend ( Crore) ₹ 700 615 607 553 503 525 458 350 ONGC promotes healthcare, preventive 175 healthcare, education & skill development, women empowerment& reducing inequality , 0 environment sustainability initiatives FY'18 FY'19 FY'20 FY'21 FY'22 37 Championing Sports in the Country ONGCian H S Prannoy part of Thomas Cup winning Indian Badminton Team 7 ONGCians (including 3 hockey players) represented India at Tokyo Recognitions and Awards in 2020 & 2021  Rashtriya Khel Protsahan Puruskar for ONGC  5 Arjuna Awards  1 Dhyanchand Award ONGC Sportspersons have won 60 National Awards till date • Pankaj Advani won 23rd World Title by winning IBSF World 6 Red Snooker Championship • Also won 12th Asian Title by winning Asian Snooker Championship at Doha in Sep’2021 38 National and International Recognitions #25 in Platts Top 250 # 243 globally and # 228 globally and #404 in Forbes Worlds, Certified as a Great Place Global Energy Company # 4 in India in Fortune # 5 in India in Forbes Best Employers List 2021 to Work : 3rd year in 2022 Rankings 2021 Global 500 List 2021 Global 2000 list 2022 ❑ Golden Peacock National Training Award 2021 (ONGC Academy) India's Best Employers ❑ FIPI: Oil & Gas – Exploration Company of the Year 2021 Among Nation - Builders - 2022 ❑ Golden Peacock Environment Management Award 2021 ❑ AIMA Award in CSR (Siu-Ka-Pha Multi-Speciality Hospital) ❑ SAKSHAM 2021: Best Overall Performance Award 39