Financial results of ONGC Videsh Ltd, the wholly-owned subsidiary of ONGC, for the half year ended 30 September 2016 were considered and approved by the Board in its meeting held on 13 December 2016. The performance highlights are as under:
|Particulars||Unit||H1 FY’17||H1 FY’16||% Variation|
|Total Oil and Oil Equivalent Gas||MMTOE||2.713||2.830||(4.13)%|
|Total Oil and Oil Equivalent Gas||MMTOE||5.473||4.450||22.99%|
|Income from operations||₹ crore||3,457||3,776||(8.45)%|
|Net profit after tax||₹ crore||512||226||126.55%|
Consolidated Crude Oil and Oil Equivalent of Gas production during H1FY’17 was higher by 22.99% at 5.473 MMTOE mainly due to acquisition of 15% stake in Vankorneft project in Russia during the half year.
The Company recorded its standalone profit of ₹ 512 crore during the first half of the financial year 2016-17 against profit of 226 crore in the corresponding half year of the previous financial year despite reduced Income from operations by 319 crore mainly due to reduced depreciation, depletion and amortisation expenses and forex gains.
This is the first time, the Company has prepared its financial results in accordance with the recognition and measurement principles as per Ind AS 34 ‘Interim Financial Reporting’ and the other accounting principles generally accepted in India along with restated comparatives for H1 FY’16. The Company has determined its functional currency to be United States Dollar (USD) and accordingly prepared the financial results in USD and the translated the same in ₹ for submission to NSE publication as per the reporting requirements.
A. New Acquisitions and Alliances
ONGC Videsh completed acquisition of 15% interest in Vankor Field located in East Siberia of the Russian Federation on 31 May 2016 from Rosneft Oil Company and subsequently acquired additional 11% interest on 28 October, 2016. Vankor is Russia’s second largest field by production and accounts for 4% of Russian production. The average daily production from the field is around 415,500 barrels per day of crude oil (bopd) since acquisition and ONGC Videsh’s share of daily oil production from Vankor (considering both the acquisitions) will be about 108,030 bopd.
ONGC Videsh and Petroleos De Venezuela S.A. (PDVSA) through their relevant subsidiaries signed two definitive agreements for facilitating redevelopment of the San Cristobal joint venture project in Venezuela on 4 November 2016. The redevelopment plan aims to increase the current level of production of about 18,000 bbl/day to 27,000 bbl/day by use of water flooding techniques. The agreement also provides for mechanism to liquidate ONGC Videsh’s outstanding dividends from the project and ONGC Videsh to obtain long term finance for the capital investment for implementing the redevelopment plan.
ONGC Videsh Vankorneft Pte. Ltd.,Singapore a step down wholly owned subsidiary of ONGC Videsh raised USD 1 billion financing comprising of US$ 400 million Senior Unsecured Notes due 2022 and USD 600 million Senior Unsecured Notes due 2026 in the international capital markets. The bond issuance was made at competitive rates and well received by the investors.
New Built Drilling Rig “Krechet” for Sakhalin-1 Project
The stage 2 development of the Odoptu field will be carried out with a new high technology Rig, for drilling nearly 32 wells during and will capture nearly 400 MBO during the rest of the project life.
The rig is similar to Yastreb rig presently drilling in Chayvo but has capability to drill extra long horizontal sections and has superior mobility due to smaller modules, which can be easily dismantled, transported and assembled at site. This feature is useful as the drilling in stage 2 development of Odoptu is planned from two sites (NWS & SWS) around 9 Km apart.
About ONGC Videsh
ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India, and is India’s largest international oil and gas E&P Company. At present, ONGC Videsh has 37 projects in 17 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Russia, South Sudan, Sudan, Venezuela, Vietnam and New Zealand. ONGC Videsh is currently producing about 224,500 barrels of oil and oil equivalent gas per day. For more information visit: http://www.ongcvidesh.com
ONGC’s market capitalization as on 14 December 2016 was INR 2,610 billion (US$ 38.6 billion). During the financial year ended 31st March, 2016, ONGC Group had produced 57.38 MMT of oil and oil equivalent gas (MMTOE) (approx. 1.2 MMboe per day); the Consolidated Gross Turnover was INR 1,429 billion (US$ 21.83 billion) during FY’16. For more information visit: http://www.ongcindia.com/