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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
Production (Standalone)
Crude Oil MMT 1.292 1.254 3.03%
Natural Gas BCM 1.421 1.576 (9.84)%
Total Oil and Oil Equivalent Gas MMTOE 2.713 2.830 (4.13)%
Production (Consolidated)
Crude Oil MMT 3.604 2.794 28.99%
Natural Gas BCM 1.869 1.656 12.86%
Total Oil and Oil Equivalent Gas MMTOE 5.473 4.450 22.99%
Financial (Standalone)
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.

B. Financing

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.

C. Operations

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

About ONGC

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/