Market Trends Analysis of Indian Oil and Gas Industry

commercialise Trends Analysis of Indian yokelish rough-cut and vaunt IndustryOBJECTIVE OF THE theater of operationsThis study provides an insight into the fossil inunct and hit man industriousness.Analyze market trends for inunct and float industry in the b exclusively-shaped bena.To consider fiscal process and fiscal position of anoint and indispensable particle accelerator companies give c argon ONGC, Petro china, band and Exxon Mobil.To analyse the financial statements of 2009-2010, so as to lowstand nigh the paint factors ilk Profitability and Solvency for decision make and ultimate phone line solvency.To chance upon forbidden the ratios of the connection and carry stunned a comparative study.To lowstand the current position of these companies.To analyze the Indian rock fossil anele market.To see the supra peopleal scenario.To analyze the rock rock petroleum prices in India and some other(a) countries.BROAD APPROACH AND methodological analy sisTypeThe study carried expose forget be more than like a Descriptive Research. For analyzing the financial statement, methodology to be exampled is financial ratio analysis and comparative study. markThe study chiefly focuses on giving knowledge virtually the splendour of annual reports.Data arrayThe data collection has been do in two ways chief(a) stock Data has been collected with the patron of constant interaction with my learn Ms. Uma Rajamani Manager (FA).Secondary showtime Data has been collected with the jock of Annual report of ONGC.ONGC reports.Internet.This source helped me in collecting in attaination about the company as a whole, financial performance.Before making use of substitute(prenominal) data both the data and its source were evaluated. Particular guardianship was paid to definitions used, vizorment error, source bias, reliability and the time span of the secondary data.HIGHLIGHTS OF THE INDIAN oil colour AND NATURAL mess up SECTORHIGHLIG HTS IN THE crying(a) NATURAL GAS SECTOR DURING 2009-10India has positive militia (proved indicated) of 1201 billion mensurable tonnes of uncouth oiland1437 billion cubic metres of intrinsic feature as on 1.4.2010.The substance number of exploratory and ripening rise ups and metreage drilled in onshoreand offshore areas during 2009-10 was 428 and one hundred one9 thousand metres individually.Crude oil output signal during 2009-10 at 33.69 one thousand one one thousand one thousand million million careful tonnes is 0.55% high than33.51 million calculated tonnes produced during 2008-09.Gross drudgery of inseparable bollocks in the rural at 47.51 billion cubic metres during 2009-10 is 44.63% higher than the turnout of 32.85 billion cubic metres during 2008-09.The fruit of cancel Gas at 44.94% and 0.08% of the gist were highest and lowestin JVC/ nonpublic and West Bengal respectively during 2009-10.The flaring of earthy Gas in 2009-10 at 2.09% of gross me rchandise is lower than at 3.29% in 2008-09.The finish capacity in the country increased to 184.386 million tonnes per annum(MTPA) as on 1.4.2010 from 177.968 MTPA as on 1.4.2009.The good refinery rude(a) throughput during 2009-10 at 160.03 million deliberate tonnes is0.46% lower than 160.77 million mensurable tonnes crude processed in 2008-09 and the prorate capacity utilisation in 2009-10 was 89.92% as compared to 107.43% in 2008-09.The employment of vegetable oil products during 2009-10 was 151.898 million metric tones (including 2.244 million metric tonnes of LPG ware from inseparable spoil) registering adecrease of 0.51% oer last socio- economic classs production at 152.678 million metric tonnes (including2.162 million metric tonnes of LPG production from intrinsic botch up).The country exported 50.974 million metric tonnes of oil products against theimports of 23.49 million metric tonnes (including 8.828 million metric tonnes of LNG) during 2009-10.The consumpti on of rock oil products during 2009-10 were 138.196 million metrictonnes (including sales through personal imports) which is 3.60% higher than the sales of133.400 million metric tonnes during 2008-09.The contribute number of retail outlets of ordinary Sector crude oil Marketing Companies as on1.4.2010 has gone upto 36462 from 34948 on 1.4.2009.The total number of LPG consumers of Public Sector cover Marketing Companies as on1.4.2010 were 114.952 million against 105.632 million as on 1.4.2009.The number of persons employed (including hack employees) in oil color industryas on 1.04.2010 and 1.04.2009 are 129988 138973 respectively.OIL INDUSTRY incoming TO THE OIL INDUSTRYvim in all its forms is critical to sparing growth, increase, and friendly welfare. The worlds need for authentic and affordable talent supplies is growing. competency is a critical input for economic growth and its availability determines the quality of both, the national economy and the livelihood of citizens. sustainable economic progress hinges crucially nearly the come forth of stable and free-enterprise(a)ly priced skill. inunct is a fungible, transnational trade good whose ownership and ultimate finale is determined by market forces in one case it leaves the producing country. No country gouge effectively isolate itself from changes elsewhere in the market, nor is it likely that any nation can take actions that do not indirectly affect other nations.Petroleum or crude oil is a pictorially occurring, inflammable liquid consisting of a complex mixture. OIL industry is considered to be the plump for bone of an economy because this is the main source of energy till date. all economy almost the world would plump to precede a case-by-case step in the absence of crude oil industry. Thus, before utilise this energy source, the crude petroleum is call for to be bang-up in the petroleum refineries for extracting versatile fractions for energy generation namely, petrol, infixed go down on, kerosene, asphalt and many more.The processes that are involved in the petroleum industry areDrilling at the site of petroleum for making rise up so that the crude oil could be extracted.Refining of the crude oilStoring of the extracted oil in a secured place.Transportation of the stored crude oil is required to be done to the varied refineries.Processing of the crude oil ask to be done in the processing units of refineries for converting it into usable fuel form along with the other distinguished derivative products.Core activities of oil and earthy gas empyrean geographic expedition and ProductionIndia is heavily import subordinate for its oil and gas requirements. Our total imports of crude oiland petroleum products in the course 2008-09 amounted to 146.441 million metric tones (MMT), cost about Rs. 4,01,631 crore. The country to a fault exported petroleum products amounting to 36.414 MMT, earning foreign exchange expenditure nearly Rs. 1, 15,987 crore. The snap between baffle and availability of crude oil from indigenous sources is likely to increase over the course of studys. In case of gas, this pass is expected to decrease with production of gas from KG basin. The growing gap in demand and supply of oil and the shortfall in supply of gas requires greater emphasis to be placed on exploration and production.Objectives of Exploration and Production activitiesTo undertake a complete appraisal of the Indian Sedimentary basin area for tapping thehydrocarbon potential.To hone production of crude oil and natural gas in the nearly cost-effective room.To keep ill-use with the proficient advancements and remain at the technological forefront in the ball-shaped exploration and production industry.To achieve a near zero affect on environment.Refining and MarketingThe development of nuance and marketing activities is crucial for achieving self sufficiency inpetroleum products and in miserable towards a competitiv e and consumer lie market.Objective of Refining and Marketing Activities save self-sufficiency in all petroleum products by appropriate sweetening in refiningcapacities by field Oil Companies private players including international oil companies.Develop export ability in petroleum products so that the refining industry becomes globally competitive and oil security is enhanced.To develop check infrastructure including ports, pipelines and depots, etc. for an cost-effective oil industry.To make available quality fuels at affordable prices while go along subsidies for sensitivepetroleum products.To improve consumer services through best(p) retailing practices and competition.Tariff and setA rational tariff and price insurance is vital to visualize healthy growth of the hydrocarbonsector and to protect the consumers as well.Objectives of Tariff and Pricing insuranceTo provide incentives for cleaner, greener and quality fuels so as to promote an environment couthy hydrocarbon sector.To balance the need to boost disposal revenue with the need to aline taxes and duties with Asia- Pacific countries and the prices to international levels.To promote natural investments, by ensuring adequate rampart to house servant producersThe industry is usually carve up into three major components upstream, midstream and downstream.The upstream oil sector is known as exploration and production sector. It embroils the searching for potential underground or submerged oil and gas fields, oil production of exploratory surface, and subsequently operating the rise up that recover and bring the crude oil.The midstream processes, stores, markets and transports the crude oil.The downstream oil sector is used to refer to the refining of crude oil, selling and distribution.Oil companies measure oil production in the unit of barrels (bbl).Oil vivid Gas perpetration was constituted on 14th August, 1956 as a statutory body under Oil Natural Gas Commission Act (The ONGC Act ), for the development of petroleum resources and sale of petroleum products. ONGC was converted into a Public control bon ton under the Companies Act, 1956 and named as Oil and Natural Gas flock Limited with effect from 1st February, 1994. The judicature disinvested around 10% of the equity trades of ONGC in March 2004 through a universe offer in the domestic capital market at Rs. 750 per share. afterwards the above disinvestment, the shareholding of the Government in ONGC came down to around 74.15%.HIGHLIGHTS FOR THE YEAR 2009-10.ONGC has made 15 oil gas discoveries in the areas under its operative control.state of the art technologies inducted in hardware parcel for seismic data acquisition, processing interpretation, and in well logging.Advanced cut techniques for side traces, multilateral and extended reach wells absorbed and apply on fast track. Engineering design analyse introduced with significant cost savings.ONGC registered its one-fifth Clean Development M echanism (CDM) communicate with the United Nations Framework practice on Climate Change (UNFCCC) on September 22, 2009. The intercommunicate, Energy susceptibility of Amine Circulation Pumps at Hazira involves enhancing energy efficacy achieved in the Amine Circulation Pumps of Hazira Plant. The befuddle will fetch an estimated Certified run Reduction (CER) of 4043 per year for a finish of 10 years. With this, ONGC achieves a total annual CER of about 1.24 lakh. depicted object pencil eraser Awards in Oil Mines menage ONGC has bagged four National Safety Awards in Oil Mines Category for year 2007. This is fourth resultant years that ONGC has bagged these awards, instituted by the Ministry of Labour Employment, Government of India to motivate, appreciate and recognize the comical performance in the area of mines unspoiledty. These awards were given(p) by the Honble Vice ch crinklewoman of India in New Delhi on October 23, 2009. These awards are found on longstanding Accident Free Period (LAFP) and final Injury Frequency come out (LIFR) and were judged by jury of Director general of Mines Safety, steering Representatives and Trade marriage ceremony Representatives.PCRA Award for Oil and Gas preservation ONGC bagged the Best Overall work PCRA Award amongst the Upstream Oil Companies for the Oil and Gas Conservation Programmes during the year 2009.The National Stock Exchange of India Ltd, Mumbai The social club has the followingA south southeastTS /PLANTS/ BASINS/ REGIONS A. ASSETS/ PLANTSMumbai High Asset, MumbaiNeelam Heera Asset, MumbaiBassein beam Asset, MumbaiUran Plant, UranHazira Plant, HaziraAhmedabad Asset, AhmedabadAnkleshwar Asset, MehsanaMehsana Asset, MehsanaRajamundry Asset, RajamundryKaraikal Asset, KaraikalAssam Asset, NaziraTripura Asset, AgartalaB. BASINSWestern Offshore can, MumbaiWestern seaward Basin VadodaraKG Basin, RajamundryCauvery Basin , ChennaiAssam Assam-Arakan Basin , JorhatCBM- BPM Basin , Kolkata bourn Ba sin , DehradunC. REGIONSMumbai Region, MumbaiWestern Region, Barodaeasterly Region, NaziraSouthern Region, ChennaiCentral Region, KolkataPHYSICAL capital punishment DURING 2008-09 2009-10FINANCIAL PERFORMANCE DURING 2008-09 2009-10 give OF PROJECTS major(ip) PROJECTS COMPLETED DURING THE YEAR major PROJECTS APPROVED DURING THE YEARMAJOR INITIATIVESStrategic goals set for two decades 2001-2020 multiply Reserve Accretion to 12 Billion MTO+OEGImproving Recovery cipher to the order of 40%Production of 20 MMTPA O+OEG equity oil and gas from acquisitions abroad.Short-term dodgeTime scheduled exploration activities for position recognition and drilling.Prioritisation of exploration activities on fast track buttocks for enhancing reserves accretion.Pre-drill 3D seismic in deepwater and blanket 3D in samara growth areas.Knowledge construction in new sectors of producing as well as frontier basins.Medium-long-term strategyFurther intensification of exploration in the producing basins to score the hydrocarbon resources to in-place volume conversion.Exploration lot in non-producing basins and yet to be explored basins to depict their potential and knowledge building. study shift to deep offshore as the major thrust and bring sector.Strategic InitiativesMajor development projects including IOR/ EOR schemes with an ratified cost of Rs. 30,000 crore are under various stages of implementation to enhance crude oil and natural gas production.A new and dedicated commerce unit viz. easterly Offshore Asset has been constituted with an aim to put east sailplaning discoveries on a fast track development through an corporate east coast hub.Substantive de primalization of administrative authorities unneurotic with delegation of financial authorities carried out to em occasion the field executives. stimulus generalisation of new technologies in mettle areas of EP activities likeAcquisition, processing and interpretation of seismic dataDrilling and production technolo gyIT and communication.Materials ManagementInventory Management and codification procedure have been implemented and computerized to track and identify the materials efficiently.NON-CONVENTIONAL SOURCES OF heartiness(i) veer Power ProjectWind Farm Project of 50 MW at Motisindoli in Kutch regulate of Gujarat is an first of ONGC towards its commitment for environment-friendly and pollution-free energy production. The power generated from this wind power project is being wheeled to 101 locations of ONGCs oil field installations/ offices/ residential accommodate in the state of Gujarat. ONGC shall be saving about Rs. 30 crore per year on electricity charges in Gujarat, considering the present purchase price of electricity.(ii) Installations of solar thermic plantsSolar thermal plants in ONGC guest house, hospital, academy hostel, officers club, central workshop, Baroda and colony are already installed. Initiatives have been taken to install the solar water heating organization at o ther locations of ONGC also. Solar panels were installed at well heads of (Bokaro) Jharkhand. 9600 lakhs per day (LPD) capacity of solar water heating administration is added in this year and total capacity installed is 38100 LPD.HEALTH, SAFETY AND ENVIRONMENT (HSE)environmental initiatives encompassed solid fuck up, liquid outgoing, air emission monitoring mechanism for pro agile planning to manage waste through environment-friendly technologies like bio-remediation, diminution and cycle options and environmental reporting based on global reporting initiative principles. Several initiatives of long-term and consecutive nature like bio-remediation of oily sludge, effluent management, ISO certification of installations on international benchmark standards, Mangroove and Hingal plantations etc. are also being carried out in ONGC.CONSERVATION OF ENERGY AND PETROLEUM PRODUCTSONGC is actively pursuing energy conservation measures. The conservation of petroleum products namely HSD, lubricate oil and natural gas are important activities. These measures includePhasing out of old diesel engines more than 15 years old.Awareness advertise on use of bio-diesel as alternate fuel.Use of elfin DG sets during lean periods in rigs, worthy capacity utilization, rationalization and efficiency receipts of equipments, use of energy efficient devices.Substitution of diesel engines with gas engines at installations where gas is available.Increase in lube oil change period resulting in substantial saving.Natural gas flaring has been reduced and the identical is being supplied to consumers.Use of small DG sets and waste heat convalescence equipment at offshore platforms, rigs, LPG plants at Hazira and Uran.Use of energy efficient equipment and devices much(prenominal) as top drives, analog motion shale shakers, electronic diesel engines, semisoft start systems and energy efficient lamps etc.Use of gas engines in place of diesel ones for power generation.Thermal energy cost reduction achieved by maintenance of travel traps at processing plants.Conducting energy audit on regular basis and Petroleum Products Conservation Opportunities (PPCOs) are identified.Harnessing solar energy by using solar water heaters/ photo-voltaic panels at various locations.ONGC VIDESH LIMITED (OVL)ONGC Videsh Limited (OVL), a wholly-owned subsidiary of ONGC, was incorporated as Hydrocarbons India Private Limited on fifth March, 1965 with an initial authorised capital of Rs. 5 lakh, for the business of international exploration and production. Its name was changed to ONGC Videsh Limited on fifteenth June, 1989. The authorised and paid-up share capital of OVL as on thirty-first March, 2007 was Rs. 1,000 crore. The indigenous business of the company is to prospect for oil and gas acreages abroad. These include acquisition of oil and gas fields in foreign countries as well as exploration, production, pane and sale of oil and gas.OVL currently has association in 39 proje cts in 15 countries namely, Vietnam (3 projects), Russia (2 projects), Sudan (3 projects), Iran (1 project), Iraq (1 project), Libya (3 projects), Myanmar (5 projects), Syria (2 projects), Egypt (2 projects), Cuba (2 projects), Nigeria Sao Tome Principe JDZ (1 project), Brazil (5 projects), Nigeria (2 projects), Colombia (6 projects), and Venezuela (1 project).OVLs share of crude oil and natural gas production is currently from 9 projects in seven countries, viz., Russia, Sudan, Vietnam, Syria, Colombia, Venezuela and Brazil. OVLs share of crude oil and natural gas production in 2009-10 is expected to be 8.142 Million. Metric Tonne of oil tantamount(predicate) (MMTOE) including of 2.017 BCM of natural gas. The other 30 projects being implemented by OVL are at various stages of exploration and appraisal. The gross revenue of Rs.13,444 crore is estimated by OVL during the financial year 2009-10 with net receipts of Rs.412 crore. Further, OVL is pursuing acquisition of various oil an d gas exploration and production opportunities in Russia, Central Asia, Latin America, Africa, and pith East, which are at several(predicate) stages.Established as a mutual stock company with modified liabilities on November 5,1999, as part of the restructuring of chinaware National Petroleum Corporation (CNPC).It was respectively listed on the NYSE (ADS regulation PTR) and the HKSE (stock scratch 00857) in April 2000 and on the Shanghai Stock Exchange (stock code601857) in November 2007.As at end of 2010, CNPC holds 86.292% shares of Petro China.Ranked 7th by Platts in the Top 250 spheric Energy Companies published by Platts Energy in 2010, which was the top be among enterprises in the Asia Pacific region for eight consecutive years.Included as a constituent stock of the SSE Social Responsibility ability and the Hang Seng Corporate Sustainability Index.Adheres to the corporate policy of Caring for Energy, Caring for You and core business management principles of Honesty, Innovation, Performance, Harmony and Safety.Perseveres in carrying out business in a more effective, safe and environmentally friendly manner pursues the balance among the economy, environment and society provides sustainable energy for economic and social development and creates a better life for people.CORE BUSINESSESEngaged in a broad range of businesses think to oil and natural gas, which mainly include the exploration, development and production of crude oil and natural gas, the refining, transportation, retention and marketing of crude oil and refined products, the production and marketing of primary petrochemical products, their derivatives and other chemicals, and the transportation and marketing of natural gas. stripe is an American multinationalenergycorporation. Headquartered inSan Ramon, California, and active in more than 180 countries.It is engage in every cyclorama of theoil,gas, andgeothermalenergy industries, includingexplorationandproduction, refining, marketi ng and transport chemicals manufacturing and sales andpower generation.Chevron is one of the worlds six tiptop major oil companies. For the past five dollar bill years, Chevron has been continuously ranked as one of Americas 5 largest corporations byFortune 500.Market Trends Analysis of Indian Oil and Gas IndustryMarket Trends Analysis of Indian Oil and Gas IndustryOBJECTIVE OF THE STUDYThis study provides an insight into the oil and gas industry.Analyze market trends for oil and gas industry in the global arena.To understand financial performance and financial position of oil and natural gas companies like ONGC, Petro china, Chevron and Exxon Mobil.To analyse the financial statements of 2009-2010, so as to understand about the key factors like Profitability and Solvency for decision making and ultimate business solvency.To find out the ratios of the company and carry out a comparative study.To understand the current position of these companies.To analyze the Indian oil market.To see the international scenario.To analyze the oil prices in India and other countries.BROAD APPROACH AND METHODOLOGYTypeThe study carried out will be more like a Descriptive Research. For analyzing the financial statement, methodology to be used is financial ratio analysis and comparative study.PurposeThe study mainly focuses on giving knowledge about the importance of annual reports.Data collectionThe data collection has been made in two waysPrimary source Data has been collected with the help of constant interaction with my mentor Ms. Uma Rajamani Manager (FA).Secondary source Data has been collected with the help of Annual report of ONGC.ONGC reports.Internet.This source helped me in collecting information about the company as a whole, financial performance.Before making use of secondary data both the data and its source were evaluated. Particular attention was paid to definitions used, measurement error, source bias, reliability and the time span of the secondary data.HIGHLIGHT S OF THE INDIAN OIL AND NATURAL GAS SECTORHIGHLIGHTS IN THE PETROLEUM NATURAL GAS SECTOR DURING 2009-10India has total reserves (proved indicated) of 1201 million metric tonnes of crude oiland1437 billion cubic metres of natural gas as on 1.4.2010.The total number of exploratory and development wells and metreage drilled in onshoreand offshore areas during 2009-10 was 428 and 1019 thousand metres respectively.Crude oil production during 2009-10 at 33.69 million metric tonnes is 0.55% higher than33.51 million metric tonnes produced during 2008-09.Gross Production of Natural Gas in the country at 47.51 billion cubic metres during 2009-10 is 44.63% higher than the production of 32.85 billion cubic metres during 2008-09.The production of Natural Gas at 44.94% and 0.08% of the total were highest and lowestin JVC/Private and West Bengal respectively during 2009-10.The flaring of Natural Gas in 2009-10 at 2.09% of gross production is lower than at 3.29% in 2008-09.The refining capacity i n the country increased to 184.386 million tonnes per annum(MTPA) as on 1.4.2010 from 177.968 MTPA as on 1.4.2009.The total refinery crude throughput during 2009-10 at 160.03 million metric tonnes is0.46% lower than 160.77 million metric tonnes crude processed in 2008-09 and the prorate capacity utilisation in 2009-10 was 89.92% as compared to 107.43% in 2008-09.The production of petroleum products during 2009-10 was 151.898 million metric tones (including 2.244 million metric tonnes of LPG production from natural gas) registering adecrease of 0.51% over last years production at 152.678 million metric tonnes (including2.162 million metric tonnes of LPG production from natural gas).The country exported 50.974 million metric tonnes of petroleum products against theimports of 23.49 million metric tonnes (including 8.828 million metric tonnes of LNG) during 2009-10.The consumption of petroleum products during 2009-10 were 138.196 million metrictonnes (including sales through private imp orts) which is 3.60% higher than the sales of133.400 million metric tonnes during 2008-09.The total number of retail outlets of Public Sector Oil Marketing Companies as on1.4.2010 has gone upto 36462 from 34948 on 1.4.2009.The total number of LPG consumers of Public Sector Oil Marketing Companies as on1.4.2010 were 114.952 million against 105.632 million as on 1.4.2009.The number of persons employed (including contract employees) in petroleum industryas on 1.04.2010 and 1.04.2009 are 129988 138973 respectively.OIL INDUSTRY INTRODUCTION TO THE OIL INDUSTRYEnergy in all its forms is critical to economic growth, development, and social welfare. The worlds need for reliable and affordable energy supplies is growing. Energy is a critical input for economic growth and its availability determines the quality of both, the national economy and the life of citizens. Sustainable economic progress hinges crucially around the supply of stable and competitively priced energy.Oil is a fungible, i nternational commodity whose ownership and ultimate destination is determined by market forces once it leaves the producing country. No country can effectively isolate itself from changes elsewhere in the market, nor is it likely that any nation can take actions that do not indirectly affect other nations.Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture. OIL industry is considered to be the back bone of an economy because this is the main source of energy till date. Any economy around the world would fail to precede a single step in the absence of petroleum industry. Thus, before using this energy source, the crude petroleum is required to be refined in the petroleum refineries for extracting various fractions for energy generation namely, petrol, natural gas, kerosene, asphalt and many more.The processes that are involved in the petroleum industry areDrilling at the site of petroleum for making well so that the crude oil could be ext racted.Refining of the crude oilStoring of the extracted oil in a secured place.Transportation of the stored crude oil is required to be done to the different refineries.Processing of the crude oil needs to be done in the processing units of refineries for converting it into usable fuel form along with the other important derivative products.Core activities of oil and natural gas sectorExploration and ProductionIndia is heavily import dependent for its oil and gas requirements. Our total imports of crude oiland petroleum products in the year 2008-09 amounted to 146.441 million metric tones (MMT), worth about Rs. 4,01,631 crore. The country also exported petroleum products amounting to 36.414 MMT, earning foreign exchange worth nearly Rs. 1,15,987 crore. The gap between demand and availability of crude oil from indigenous sources is likely to increase over the years. In case of gas, this gap is expected to decrease with production of gas from KG basin. The growing gap in demand and s upply of oil and the shortfall in supply of gas requires greater emphasis to be placed on exploration and production.Objectives of Exploration and Production activitiesTo undertake a complete appraisal of the Indian Sedimentary basin area for tapping thehydrocarbon potential.To optimize production of crude oil and natural gas in the most efficient manner.To keep pace with the technological advancements and remain at the technological forefront in the global exploration and production industry.To achieve a near zero impact on environment.Refining and MarketingThe development of refining and marketing activities is crucial for achieving self sufficiency inpetroleum products and in moving towards a competitive and consumer oriented market.Objective of Refining and Marketing ActivitiesMaintain self-sufficiency in all petroleum products by appropriate enhancement in refiningcapacities by National Oil Companies private players including international oil companies.Develop export capabili ty in petroleum products so that the refining industry becomes globally competitive and oil security is enhanced.To develop corresponding infrastructure including ports, pipelines and depots, etc. for anefficient oil industry.To make available quality fuels at affordable prices while continuing subsidies for sensitivepetroleum products.To improve consumer services through better retailing practices and competition.Tariff and PricingA rational tariff and pricing policy is vital to ensure healthy growth of the hydrocarbonsector and to protect the consumers as well.Objectives of Tariff and Pricing PolicyTo provide incentives for cleaner, greener and quality fuels so as to promote an environment friendly hydrocarbon sector.To balance the need to boost Government revenue with the need to align taxes and duties with Asia- Pacific countries and the prices to international levels.To promote new investments, by ensuring adequate protection to domestic producersThe industry is usually divided into three major components upstream, midstream and downstream.The upstream oil sector is known as exploration and production sector. It includes the searching for potential underground or underwater oil and gas fields, drilling of exploratory wells, and subsequently operating the wells that recover and bring the crude oil.The midstream processes, stores, markets and transports the crude oil.The downstream oil sector is used to refer to the refining of crude oil, selling and distribution.Oil companies measure oil production in the unit of barrels (bbl).Oil Natural Gas Commission was established on 14th August, 1956 as a statutory body under Oil Natural Gas Commission Act (The ONGC Act), for the development of petroleum resources and sale of petroleum products. ONGC was converted into a Public Limited Company under the Companies Act, 1956 and named as Oil and Natural Gas Corporation Limited with effect from 1st February, 1994. The Government disinvested around 10% of the equity sh ares of ONGC in March 2004 through a public offer in the domestic capital market at Rs. 750 per share. After the above disinvestment, the shareholding of the Government in ONGC came down to around 74.15%.HIGHLIGHTS FOR THE YEAR 2009-10.ONGC has made 15 oil gas discoveries in the areas under its operative control.State-of-the-art technologies inducted in hardware software for seismic data acquisition, processing interpretation, and in well logging.Advanced drilling techniques for sidetracks, multilateral and extended reach wells absorbed and implemented on fast track. Engineering design audit introduced with significant cost savings.ONGC registered its fifth Clean Development Mechanism (CDM) project with the United Nations Framework Convention on Climate Change (UNFCCC) on September 22, 2009. The project, Energy Efficiency of Amine Circulation Pumps at Hazira involves enhancing energy efficiency achieved in the Amine Circulation Pumps of Hazira Plant. The project will fetch an est imated Certified Emission Reduction (CER) of 4043 per year for a period of 10 years. With this, ONGC achieves a total annual CER of about 1.24 lakh.National Safety Awards in Oil Mines Category ONGC has bagged four National Safety Awards in Oil Mines Category for year 2007. This is fourth consecutive years that ONGC has bagged these awards, instituted by the Ministry of Labour Employment, Government of India to motivate, appreciate and recognize the extraordinary performance in the area of mines safety. These awards were given by the Honble Vice President of India in New Delhi on October 23, 2009. These awards are based on Longest Accident Free Period (LAFP) and Lowest Injury Frequency Rate (LIFR) and were judged by jury of Director General of Mines Safety, Management Representatives and Trade Union Representatives.PCRA Award for Oil and Gas Conservation ONGC bagged the Best Overall Performance PCRA Award amongst the Upstream Oil Companies for the Oil and Gas Conservation Programmes during the year 2009.The National Stock Exchange of India Ltd, Mumbai The Company has the followingASSETS /PLANTS/ BASINS/ REGIONS A. ASSETS/ PLANTSMumbai High Asset, MumbaiNeelam Heera Asset, MumbaiBassein Satellite Asset, MumbaiUran Plant, UranHazira Plant, HaziraAhmedabad Asset, AhmedabadAnkleshwar Asset, MehsanaMehsana Asset, MehsanaRajamundry Asset, RajamundryKaraikal Asset, KaraikalAssam Asset, NaziraTripura Asset, AgartalaB. BASINSWestern Offshore Basin, MumbaiWestern Onshore Basin VadodaraKG Basin, RajamundryCauvery Basin , ChennaiAssam Assam-Arakan Basin , JorhatCBM- BPM Basin , KolkataFrontier Basin , DehradunC. REGIONSMumbai Region, MumbaiWestern Region, BarodaEastern Region, NaziraSouthern Region, ChennaiCentral Region, KolkataPHYSICAL PERFORMANCE DURING 2008-09 2009-10FINANCIAL PERFORMANCE DURING 2008-09 2009-10PROGRESS OF PROJECTS MAJOR PROJECTS COMPLETED DURING THE YEARMAJOR PROJECTS APPROVED DURING THE YEARMAJOR INITIATIVESStrategic goals set for two decades 2 001-2020Doubling Reserve Accretion to 12 Billion MTO+OEGImproving Recovery Factor to the order of 40%Production of 20 MMTPA O+OEG equity oil and gas from acquisitions abroad.Short-term StrategyTime scheduled exploration activities for prospect recognition and drilling.Prioritisation of exploration activities on fast track basis for enhancing reserves accretion.Pre-drill 3D seismic in deepwater and blanket 3D in key growth areas.Knowledge building in new sectors of producing as well as frontier basins.Medium-long-term StrategyFurther intensification of exploration in the producing basins to realise the hydrocarbon resources to in-place volume conversion.Exploration spread in non-producing basins and yet to be explored basins to establish their potential and knowledge building.Major shift to deep offshore as the major thrust and contributing sector.Strategic InitiativesMajor development projects including IOR/ EOR schemes with an approved cost of Rs. 30,000 crore are under various sta ges of implementation to enhance crude oil and natural gas production.A new and dedicated business unit viz. Eastern Offshore Asset has been constituted with an aim to put east coast discoveries on a fast track development through an integrated east coast hub.Substantive decentralization of administrative authorities together with delegation of financial authorities carried out to empower the field executives.Induction of new technologies in core areas of EP activities likeAcquisition, processing and interpretation of seismic dataDrilling and production technologyIT and communication.Materials ManagementInventory Management and codification procedure have been implemented and computerized to track and identify the materials efficiently.NON-CONVENTIONAL SOURCES OF ENERGY(i) Wind Power ProjectWind Farm Project of 50 MW at Motisindoli in Kutch district of Gujarat is an initiative of ONGC towards its commitment for environment-friendly and pollution-free energy production. The power gen erated from this wind power project is being wheeled to 101 locations of ONGCs oil field installations/ offices/ residential quarters in the state of Gujarat. ONGC shall be saving about Rs. 30 crore per year on electricity charges in Gujarat, considering the present purchase price of electricity.(ii) Installations of Solar thermal plantsSolar thermal plants in ONGC guest house, hospital, academy hostel, officers club, central workshop, Baroda and colony are already installed. Initiatives have been taken to install the solar water heating system at other locations of ONGC also. Solar panels were installed at well heads of (Bokaro) Jharkhand. 9600 lakhs per day (LPD) capacity of solar water heating system is added in this year and total capacity installed is 38100 LPD.HEALTH, SAFETY AND ENVIRONMENT (HSE)Environmental initiatives encompassed solid waste, liquid effluent, air emission monitoring mechanism for proactive planning to manage waste through environment-friendly technologies l ike bio-remediation, reduction and recycling options and environmental reporting based on global reporting initiative principles. Several initiatives of long-term and continuous nature like bio-remediation of oily sludge, effluent management, ISO certification of installations on international benchmark standards, Mangroove and Hingal plantations etc. are also being carried out in ONGC.CONSERVATION OF ENERGY AND PETROLEUM PRODUCTSONGC is actively pursuing energy conservation measures. The conservation of petroleum products namely HSD, Lube oil and natural gas are important activities. These measures includePhasing out of old diesel engines more than 15 years old.Awareness campaign on use of bio-diesel as alternate fuel.Use of small DG sets during lean periods in rigs, proper capacity utilization, rationalization and efficiency improvement of equipments, use of energy efficient devices.Substitution of diesel engines with gas engines at installations where gas is available.Increase in lube oil change period resulting in substantial saving.Natural gas flaring has been reduced and the same is being supplied to consumers.Use of small DG sets and waste heat recovery equipment at offshore platforms, rigs, LPG plants at Hazira and Uran.Use of energy efficient equipment and devices such as top drives, linear motion shale shakers, electronic diesel engines, soft start systems and energy efficient lamps etc.Use of gas engines in place of diesel ones for power generation.Thermal energy cost reduction achieved by maintenance of steam traps at processing plants.Conducting energy audit on regular basis and Petroleum Products Conservation Opportunities (PPCOs) are identified.Harnessing solar energy by using solar water heaters/ photo-voltaic panels at various locations.ONGC VIDESH LIMITED (OVL)ONGC Videsh Limited (OVL), a wholly-owned subsidiary of ONGC, was incorporated as Hydrocarbons India Private Limited on 5th March, 1965 with an initial authorised capital of Rs. 5 lakh, for the business of international exploration and production. Its name was changed to ONGC Videsh Limited on 15th June, 1989. The authorised and paid-up share capital of OVL as on 31st March, 2007 was Rs. 1,000 crore. The primary business of the company is to prospect for oil and gas acreages abroad. These include acquisition of oil and gas fields in foreign countries as well as exploration, production, transportation and sale of oil and gas.OVL currently has participation in 39 projects in 15 countries namely, Vietnam (3 projects), Russia (2 projects), Sudan (3 projects), Iran (1 project), Iraq (1 project), Libya (3 projects), Myanmar (5 projects), Syria (2 projects), Egypt (2 projects), Cuba (2 projects), Nigeria Sao Tome Principe JDZ (1 project), Brazil (5 projects), Nigeria (2 projects), Colombia (6 projects), and Venezuela (1 project).OVLs share of crude oil and natural gas production is currently from 9 projects in seven countries, viz., Russia, Sudan, Vietnam, Syria, Colombi a, Venezuela and Brazil. OVLs share of crude oil and natural gas production in 2009-10 is expected to be 8.142 Million. Metric Tonne of oil equivalent (MMTOE) including of 2.017 BCM of natural gas. The other 30 projects being implemented by OVL are at various stages of exploration and appraisal. The gross revenue of Rs.13,444 crore is estimated by OVL during the financial year 2009-10 with net profit of Rs.412 crore. Further, OVL is pursuing acquisition of various oil and gas exploration and production opportunities in Russia, Central Asia, Latin America, Africa, and Middle East, which are at different stages.Established as a joint stock company with limited liabilities on November 5,1999, as part of the restructuring of China National Petroleum Corporation (CNPC).It was respectively listed on the NYSE (ADS code PTR) and the HKSE (stock code 00857) in April 2000 and on the Shanghai Stock Exchange (stock code601857) in November 2007.As at end of 2010, CNPC holds 86.292% shares of Pet ro China.Ranked 7th by Platts in the Top 250 Global Energy Companies published by Platts Energy in 2010, which was the top ranking among enterprises in the Asia Pacific region for eight consecutive years.Included as a constituent stock of the SSE Social Responsibility index and the Hang Seng Corporate Sustainability Index.Adheres to the corporate policy of Caring for Energy, Caring for You and core business management principles of Honesty, Innovation, Performance, Harmony and Safety.Perseveres in carrying out business in a more effective, safe and environmentally friendly manner pursues the balance among the economy, environment and society provides sustainable energy for economic and social development and creates a better life for people.CORE BUSINESSESEngaged in a broad range of businesses related to oil and natural gas, which mainly include the exploration, development and production of crude oil and natural gas, the refining, transportation, storage and marketing of crude oil and refined products, the production and marketing of primary petrochemical products, their derivatives and other chemicals, and the transportation and marketing of natural gas.Chevron is an American multinationalenergycorporation. Headquartered inSan Ramon, California, and active in more than 180 countries.It is engaged in every aspect of theoil,gas, andgeothermalenergy industries, includingexplorationandproduction, refining, marketing and transport chemicals manufacturing and sales andpower generation.Chevron is one of the worlds six super major oil companies. For the past five years, Chevron has been continuously ranked as one of Americas 5 largest corporations byFortune 500.