1
33rdrd Strategy Meet Strategy Meet
2
Action Taken Report (ATR)Action Taken Report (ATR)
11stst & 2 & 2ndnd Strategy Meet Strategy Meet
33rdrd
SSTTRRAATTEEGGYY
MMEEEETT
33rd Strategy Meet, July 12-14,2002
Strategic GoalsStrategic Goals
To double To double Reserve AccretionReserve Accretion
To improve To improve Recovery FactorRecovery Factor to 40% to 40%
To bring in 20 MMTpa To bring in 20 MMTpa equity oilequity oil from abroad from abroad
over over 2001-202001-20
43rd Strategy Meet, July 12-14,2002
To Double Reserve AccretionTo Double Reserve Accretion
4 Bmt O+OEG Offshore4 Bmt O+OEG Offshore
DeepwaterDeepwater
2 Bmt O+OEG onshore2 Bmt O+OEG onshore
Frontier BasinsFrontier Basins
Growth areas from established 6 Growth areas from established 6
BasinsBasins
53rd Strategy Meet, July 12-14,2002
63rd Strategy Meet, July 12-14,2002
DeepwaterDeepwater
Suggested ApproachSuggested Approach
In house expertise developmentIn house expertise development
Alliance with leading deep-water playersAlliance with leading deep-water players
Long-term strategic relationshipLong-term strategic relationship
73rd Strategy Meet, July 12-14,2002
DeepwaterDeepwater
DecisionDecision
Formation of Core groups to firm-up time-bound Formation of Core groups to firm-up time-bound
action plan for expertise development in deep water action plan for expertise development in deep water
exploration. exploration.
Contd…
Actions TakenActions Taken
Deepwater core groups formed for integration of Deepwater core groups formed for integration of
activitiesactivities
Plan to bridge gaps in expertise, technology induction Plan to bridge gaps in expertise, technology induction
and skill development etc., to be finalized in July’02and skill development etc., to be finalized in July’02
83rd Strategy Meet, July 12-14,2002
DeepwaterDeepwater
DecisionDecision
Charter hiring of rigs for deepwater operationsCharter hiring of rigs for deepwater operations
Actions TakenActions Taken
Charter hiring of 3 deepwater rigs under finalization.Charter hiring of 3 deepwater rigs under finalization.
Up to 1500m – 1 rigUp to 1500m – 1 rig
Up to 2500m – 1 rigUp to 2500m – 1 rig
Up to 3000m – 1 rigUp to 3000m – 1 rig
Discussions held with drilling companies. Pre-bid Discussions held with drilling companies. Pre-bid conference held. conference held.
BEC under finalization.BEC under finalization.Contd…
93rd Strategy Meet, July 12-14,2002
DeepwaterDeepwater
DecisionDecision
Procurement of one super-deep (>2500m) Procurement of one super-deep (>2500m)
drilling rigdrilling rig
Actions TakenActions Taken
Initially 1 super deep drilling rig being hired.Initially 1 super deep drilling rig being hired.
Acquisition as per success probability.Acquisition as per success probability.
Contd…
103rd Strategy Meet, July 12-14,2002
DeepwaterDeepwater
DecisionDecision
ToTo submit a detailed proposal to MOP&NG for empowering submit a detailed proposal to MOP&NG for empowering
ONGC to formalize Joint Ventures and Alliances for E&D and ONGC to formalize Joint Ventures and Alliances for E&D and
DrillingDrilling
Actions TakenActions Taken
Note put up in Feb’2002Note put up in Feb’2002
Lukewarm response from 17 companies identified for Lukewarm response from 17 companies identified for
alliancing for exploration in 5 deepwater blocksalliancing for exploration in 5 deepwater blocks
Other companies short-listed for possible alliance and Other companies short-listed for possible alliance and
modalities for alliance under finalization.modalities for alliance under finalization.
Discussions with M/S Statoil for drilling Deepwater wells on Discussions with M/S Statoil for drilling Deepwater wells on
turnkey basis.turnkey basis.
Contd…
113rd Strategy Meet, July 12-14,2002
DeepwaterDeepwater
DecisionDecision
To submit a comprehensive note to MOP&NG on To submit a comprehensive note to MOP&NG on
existing CVC guide-lines and proposed deviations existing CVC guide-lines and proposed deviations
required for taking advantage of the technological required for taking advantage of the technological
advancements.advancements.
Actions TakenActions Taken
Comprehensive note submitted in March’2002 Comprehensive note submitted in March’2002
Contd…
123rd Strategy Meet, July 12-14,2002
133rd Strategy Meet, July 12-14,2002
Frontier BasinFrontier Basin
Suggested ApproachSuggested Approach
Short Term Short Term – Focussed exploration – Focussed exploration
Medium Term Medium Term - Prospectivity Assessment for focussed Exploration- Prospectivity Assessment for focussed Exploration
Long Term Long Term - Knowledge building for Prospectivity Assessment - Knowledge building for Prospectivity Assessment
Contd…
143rd Strategy Meet, July 12-14,2002
DecisionDecision
Physical-inputs and resources for frontier basin Physical-inputs and resources for frontier basin
activities to be identified by March’2002.activities to be identified by March’2002.
Action TakenAction Taken
Physical inputs for knowledge building activities Physical inputs for knowledge building activities
and resources required in the frontier basins and resources required in the frontier basins
identified.identified.
Contd…
Frontier BasinFrontier Basin
153rd Strategy Meet, July 12-14,2002
DecisionsDecisions
To submit comprehensive notes to MOP&NG requesting forTo submit comprehensive notes to MOP&NG requesting for Fiscal relaxation required for its activity in Frontier basins Fiscal relaxation required for its activity in Frontier basins
as well as in Tripuraas well as in Tripura Exploration licenses on nomination basis in frontier basinExploration licenses on nomination basis in frontier basin
To submit proposal to OIDB for grants/ loans for exploration in To submit proposal to OIDB for grants/ loans for exploration in frontier basinsfrontier basins
Actions TakenActions Taken
Physical plans along with investment requirement being Physical plans along with investment requirement being submitted to EC submitted to EC
On approval, comprehensive proposal to be put up to On approval, comprehensive proposal to be put up to MOP&NG for mentioned dispensationsMOP&NG for mentioned dispensations OIDB for grants/ soft loans for knowledge building OIDB for grants/ soft loans for knowledge building
activitiesactivities
Frontier BasinFrontier Basin
163rd Strategy Meet, July 12-14,2002
173rd Strategy Meet, July 12-14,2002
Improvement in Recovery FactorImprovement in Recovery Factor
Contd…
Suggested ApproachSuggested Approach
To focus on time-bound action plan for 15 major To focus on time-bound action plan for 15 major producing fields including Mumbai Highproducing fields including Mumbai High
To initiate actions to improve recovery factor from To initiate actions to improve recovery factor from other 30 fieldsother 30 fields
To initiate EOR projects for enhancing oil To initiate EOR projects for enhancing oil recoveryrecovery
Monetization & accelerated development of New & Monetization & accelerated development of New & Marginal fieldsMarginal fields
183rd Strategy Meet, July 12-14,2002
DecisionDecision
Continuous monitoring of major fieldsContinuous monitoring of major fields
Actions TakenActions Taken
Process established for continuous monitoring of major Process established for continuous monitoring of major fields – through MDTfields – through MDT
Micro detailing for monitoring firmed up through Project Micro detailing for monitoring firmed up through Project ACCEPT for Assam fieldACCEPT for Assam field
Improved surveillance established at Asset levelImproved surveillance established at Asset level
IRS as nodal agency along with IOGPT, KDMIPE IRS as nodal agency along with IOGPT, KDMIPE monitoring the major fields on continuous basismonitoring the major fields on continuous basis
Consultants engaged to suggest proactive approachConsultants engaged to suggest proactive approach
Improvement in Recovery FactorImprovement in Recovery Factor
Contd…
193rd Strategy Meet, July 12-14,2002
DecisionDecision
To develop the fields optimally keeping in view the To develop the fields optimally keeping in view the
sound Reservoir Management Practices. sound Reservoir Management Practices.
Actions TakenActions Taken
19 IOR/ EOR projects underway in 15 major fields19 IOR/ EOR projects underway in 15 major fields
12 IOR/EOR under implementation12 IOR/EOR under implementation
14 IOR Studies programmed14 IOR Studies programmed
11 Feasibility Reports are in process11 Feasibility Reports are in process
22 EOR studies in progress at IRS 22 EOR studies in progress at IRS
Improvement in Recovery FactorImprovement in Recovery Factor
Contd…
203rd Strategy Meet, July 12-14,2002
DecisionsDecisions
The proposal for strategic participation The proposal for strategic participation with technology-with technology-
leaders/ service providers for best-available technology leaders/ service providers for best-available technology
solutionssolutions agreed in-principle and was desired to be expedited. agreed in-principle and was desired to be expedited.
ONGC to be operator in all project-based alliancesONGC to be operator in all project-based alliances
Actions TakenActions Taken
Special assignment to focus on Strategic Participation/ Special assignment to focus on Strategic Participation/
AlliancesAlliances
For strategic Project based Alliance with technology leaders a For strategic Project based Alliance with technology leaders a
comprehensive MOU placed on ONGC website and comprehensive MOU placed on ONGC website and
correspondences held with leaders in service sector. correspondences held with leaders in service sector.
Response under submission to ONGC board.Response under submission to ONGC board.
Improvement in Recovery FactorImprovement in Recovery Factor
Contd…
213rd Strategy Meet, July 12-14,2002
Action TakenAction Taken
Special group formed for development of New & Special group formed for development of New &
Marginal fieldsMarginal fields
FR ready for Accelerated development of Vasai East, FR ready for Accelerated development of Vasai East,
D-1 & G-1 D-1 & G-1
Dockets for new & marginal fields under preparationDockets for new & marginal fields under preparation
Strategic options and action plan being submitted in Strategic options and action plan being submitted in
33rdrd Strategy Meet. Strategy Meet.
DecisionsDecisions
Monetization & accelerated development of New & Monetization & accelerated development of New &
Marginal FieldsMarginal Fields
Improvement in Recovery FactorImprovement in Recovery Factor
223rd Strategy Meet, July 12-14,2002
233rd Strategy Meet, July 12-14,2002
Equity Oil & GasEquity Oil & Gas
To bring in 20 MMTpa equity oil from abroad by 2020To bring in 20 MMTpa equity oil from abroad by 2020
Suggested ApproachSuggested Approach
To focus on countries - Indonesia, Russia, Iran, Iraq, To focus on countries - Indonesia, Russia, Iran, Iraq, Oman, Sudan, Libya, Kazakhstan, Nepal, Algeria, Oman, Sudan, Libya, Kazakhstan, Nepal, Algeria,
Venezuela …Venezuela …
Contd…
243rd Strategy Meet, July 12-14,2002
Equity Oil & GasEquity Oil & Gas
Available equityAvailable equity
VietnamVietnam Gas Project to go on stream by end 2002 Gas Project to go on stream by end 2002
Sakhalin-1Sakhalin-1 project progressing on schedule; oil to project progressing on schedule; oil to flow from 2005, Gas from 2007flow from 2005, Gas from 2007
Available block – under explorationAvailable block – under exploration
20% equity taken in an offshore Gas exploration 20% equity taken in an offshore Gas exploration block in block in MyanmarMyanmar
Contd…
253rd Strategy Meet, July 12-14,2002
DecisionDecision
To explore the possibility to develop matrix indicating political risk in the countries of interest and should To explore the possibility to develop matrix indicating political risk in the countries of interest and should cover these risks through International bankscover these risks through International banks
Actions TakenActions Taken
Government of india has Bilateral Investment Protection Agreements (BIPA) with 44 countries.Government of india has Bilateral Investment Protection Agreements (BIPA) with 44 countries.
OVL refrains from investing in nations which are not covered under BIPAOVL refrains from investing in nations which are not covered under BIPA
Internally OVL takes sufficient risk mitigation through the rate of return , turn around time and strong Internally OVL takes sufficient risk mitigation through the rate of return , turn around time and strong partner approachpartner approach
Additional safe guard through the insurance covers and guarantees is also being exercised wherever it is Additional safe guard through the insurance covers and guarantees is also being exercised wherever it is felt necessaryfelt necessary
Equity Oil & GasEquity Oil & Gas
263rd Strategy Meet, July 12-14,2002
273rd Strategy Meet, July 12-14,2002
BackgroundBackground
CRC formulated from lessons learnt through Pilots CRC formulated from lessons learnt through Pilots
of Organisational Transformation Project (OTP) of Organisational Transformation Project (OTP)
launched in 1997.launched in 1997.
CRC implementation decided in 1CRC implementation decided in 1stst Strategy Meet, Strategy Meet,
July 2001July 2001
Launched with the blessings of Hon’ble Minister Launched with the blessings of Hon’ble Minister
(P&NG) on 20.8.2001(P&NG) on 20.8.2001
Corporate Rejuvenation CampaignCorporate Rejuvenation Campaign
Contd…
283rd Strategy Meet, July 12-14,2002
StatusStatus
CRC roll-out complete – Assets, Basins, Services CRC roll-out complete – Assets, Basins, Services
etc., in placeetc., in place
Each business unit has developed methodology to Each business unit has developed methodology to
function as ‘Virtual Corporates’function as ‘Virtual Corporates’
Corporate Rejuvenation CampaignCorporate Rejuvenation Campaign
Contd…
293rd Strategy Meet, July 12-14,2002
DecisionDecision
To obtain suggestions on CRC implementation from To obtain suggestions on CRC implementation from
E-0 officers and above level officers. To be put in E-0 officers and above level officers. To be put in
next EC meeting for corrective actions, if anynext EC meeting for corrective actions, if any
Actions TakenActions Taken
Continued interaction - feedbacks received Continued interaction - feedbacks received
Continued Corrective actionsContinued Corrective actions
Corporate Rejuvenation CampaignCorporate Rejuvenation Campaign
Contd…
303rd Strategy Meet, July 12-14,2002
DecisionDecision
Existing gaps in CRC to be plugged Existing gaps in CRC to be plugged
Actions TakenActions Taken
Necessary modifications in PAR, Cadre development, Necessary modifications in PAR, Cadre development,
Promotion policy etc., under consideration for alignment Promotion policy etc., under consideration for alignment
as per CRCas per CRC
Special groups formed for critical areas of operationSpecial groups formed for critical areas of operation Gas Flaring, Corporate IE, CMT, Fire Services etc.Gas Flaring, Corporate IE, CMT, Fire Services etc.
Corporate Rejuvenation CampaignCorporate Rejuvenation Campaign
Contd…
313rd Strategy Meet, July 12-14,2002
DecisionDecision
Collectives to be shown existing distortions in the Collectives to be shown existing distortions in the organogram due to past promotion policyorganogram due to past promotion policy
Actions TakenActions Taken
Distorted organogram posted on web for wider Distorted organogram posted on web for wider appreciationappreciation
Modular course being developed for under-qualified Modular course being developed for under-qualified employees in consultation with ISM, Dhanbad employees in consultation with ISM, Dhanbad
Corporate Rejuvenation CampaignCorporate Rejuvenation Campaign
Contd…
323rd Strategy Meet, July 12-14,2002
DecisionDecision
ONGC to submit a proposal on VRS bringing out ONGC to submit a proposal on VRS bringing out constraints and dispensations required from the constraints and dispensations required from the Govt.Govt.
Actions TakenActions Taken
Proposal for VRS submitted to the Govt.Proposal for VRS submitted to the Govt.
Corporate Rejuvenation CampaignCorporate Rejuvenation Campaign
333rd Strategy Meet, July 12-14,2002
343rd Strategy Meet, July 12-14,2002
Background Background
Board approved modifications in BDP-1994 giving Board approved modifications in BDP-1994 giving
enhanced powers to the enhanced powers to the
Committee of the BoardCommittee of the Board
Committees of C&MD & functional DirectorsCommittees of C&MD & functional Directors
C&MDC&MD
Functional Directors. Functional Directors.
This became effective from 1st August’2001.This became effective from 1st August’2001.
Powers below Board level was enhanced w.e.f 1st Powers below Board level was enhanced w.e.f 1st
January’2002January’2002
EmpowermentEmpowerment
Contd…
353rd Strategy Meet, July 12-14,2002
DecisionDecision
To carry out a quick assessment of the impact of To carry out a quick assessment of the impact of empowerment on overall functioning of the empowerment on overall functioning of the organization once the transition is completed.organization once the transition is completed.
Actions TakenActions Taken
Quick assessment carried outQuick assessment carried out
HR BDP approved by Board in May’2002HR BDP approved by Board in May’2002
EmpowermentEmpowerment
Contd…
363rd Strategy Meet, July 12-14,2002
DecisionDecision
To give suitable powers to the location managers to To give suitable powers to the location managers to carry time bound activities.carry time bound activities.
Actions TakenActions Taken
Delegation gaps identifiedDelegation gaps identified
Comprehensive agenda for revision of BDP to give Comprehensive agenda for revision of BDP to give suitable powers to operational managers under suitable powers to operational managers under submission to Boardsubmission to Board
EmpowermentEmpowerment
373rd Strategy Meet, July 12-14,2002
383rd Strategy Meet, July 12-14,2002
Focus AreasFocus Areas
Non-flowing wells Non-flowing wells
Gas flaringGas flaring
Exploratory drilling backlog Exploratory drilling backlog
TechnologyTechnology
OOR SchemesOOR Schemes
InfocomInfocom
Offshore Services Offshore Services
Process SimplificationProcess Simplification
393rd Strategy Meet, July 12-14,2002
Non-flowing wellsNon-flowing wells
GoalGoal
Number of non-flowing wells to be reduced to Number of non-flowing wells to be reduced to
15% in onland & 5% in offshore by 31.3.200315% in onland & 5% in offshore by 31.3.2003
Suggested ApproachSuggested Approach
Proactive workover operationsProactive workover operations
Augmentation of ResourcesAugmentation of Resources
Contd…
403rd Strategy Meet, July 12-14,2002
DecisionDecision
An agenda to be put up to Executive Committee to An agenda to be put up to Executive Committee to
review the decision of reducing non- flowing wells.review the decision of reducing non- flowing wells.
Action TakenAction Taken
Action plan to reduce the number of non-flowing Action plan to reduce the number of non-flowing
wells discussed in ECwells discussed in EC
Non-flowing wellsNon-flowing wells
Contd…
413rd Strategy Meet, July 12-14,2002
DecisionsDecisions
IRS and IOGPT in consultation with Assets & Basins to review categorization of non-flowing wells and bring a paper to ECIRS and IOGPT in consultation with Assets & Basins to review categorization of non-flowing wells and bring a paper to EC
Sick wells to be reviewed on priority to make achievable progress.Sick wells to be reviewed on priority to make achievable progress.
Actions TakenActions Taken
MDT from IRS, IOGPT & Assets constituted for MDT from IRS, IOGPT & Assets constituted for
Categorization of non-flowing wells submitted Categorization of non-flowing wells submitted
report report
Sick wells being reviewed on continuous basisSick wells being reviewed on continuous basis
Non-flowing wellsNon-flowing wells
Contd…
423rd Strategy Meet, July 12-14,2002
DecisionDecision
To float tenders for charter-hire of 30 Work-over rigs (25 for To float tenders for charter-hire of 30 Work-over rigs (25 for
onshore and 5 for offshore) for 3 yearsonshore and 5 for offshore) for 3 years
Actions TakenActions Taken
OnshoreOnshore
22 onshore workover rigs of different capacity planned to be 22 onshore workover rigs of different capacity planned to be
charter hired during 2002-03charter hired during 2002-03
Approval accorded to augment 7 workover rigs as per existing Approval accorded to augment 7 workover rigs as per existing
contracts on immediate basiscontracts on immediate basis
Tender for charter-hiring of 4 additional rigs under processTender for charter-hiring of 4 additional rigs under process
OffshoreOffshore
Charter hiring of 4 additional Cantilever J/Up rigs under processCharter hiring of 4 additional Cantilever J/Up rigs under process
Non-flowing wellsNon-flowing wells
433rd Strategy Meet, July 12-14,2002
Gas FlaringGas Flaring
GoalGoal
To minimise Gas FlaringTo minimise Gas Flaring
Suggested ApproachSuggested Approach
Focus on assets where consumer base existsFocus on assets where consumer base exists
Creation of necessary infrastructure on fast-track Creation of necessary infrastructure on fast-track
Contd…
443rd Strategy Meet, July 12-14,2002
Gas FlaringGas Flaring
DecisionDecision
To minimize gas flaring.To minimize gas flaring.
Actions TakenActions Taken
Focused group for – Gas Flaring ControlFocused group for – Gas Flaring Control
Required infrastructure identifiedRequired infrastructure identified
Compressor procurement in processCompressor procurement in process
Time-bound action plan to achieve Zero Gas Time-bound action plan to achieve Zero Gas
FlaringFlaring
453rd Strategy Meet, July 12-14,2002
GoalGoal
To remove backlog in exploratory wellsTo remove backlog in exploratory wells
Suggested ApproachSuggested Approach
Activity driven resource mobilizationActivity driven resource mobilization
Exploratory drilling BacklogExploratory drilling Backlog
Contd…
463rd Strategy Meet, July 12-14,2002
DecisionDecision
To initiate time-bound plan for procurement/up-To initiate time-bound plan for procurement/up-
gradation of the state-of- the-art Drilling Rigsgradation of the state-of- the-art Drilling Rigs
Actions TakenActions Taken
MOU with BHEL signed on 15.4.2002. Initially MOU with BHEL signed on 15.4.2002. Initially
contract awarded to BHEL for upgradation of 12 contract awarded to BHEL for upgradation of 12
onshore rigsonshore rigs
Proposal submitted for acquisition of 3 offshore Proposal submitted for acquisition of 3 offshore
jack up rigsjack up rigs
Exploration drilling BacklogExploration drilling Backlog
473rd Strategy Meet, July 12-14,2002
TechnologyTechnology
GoalGoalTechnology for efficiencyTechnology for efficiency
Suggested ApproachSuggested Approach
Adoption of best-in-class technologyAdoption of best-in-class technology
Monetization of idle Assets with technology Monetization of idle Assets with technology
Strategic participation with technology Strategic participation with technology leadersleaders
Contd…
483rd Strategy Meet, July 12-14,2002
TechnologyTechnology
DecisionDecision
Employing state-of-the-art and cost-effective Employing state-of-the-art and cost-effective
technologies.technologies.
Action TakenAction Taken
Technology needs worked out in various areas of Technology needs worked out in various areas of
operationoperation
Contd…
493rd Strategy Meet, July 12-14,2002
TechnologyTechnology
DecisionDecision
Improving operational efficiency using best-in-class Improving operational efficiency using best-in-class
equipment and facilities and continuous up-gradation of equipment and facilities and continuous up-gradation of
skillsskills
Action TakenAction Taken
Technology induction plan through alliances discussed in Technology induction plan through alliances discussed in
Board in May’2002. MOU under finalization.Board in May’2002. MOU under finalization.
Contd…
503rd Strategy Meet, July 12-14,2002
Technology - SeismicTechnology - Seismic
DecisionsDecisions
Procurement of additional state-of-the-art Seismic Survey Procurement of additional state-of-the-art Seismic Survey
vesselvessel
State-of the-art data acquisition, supported with high State-of the-art data acquisition, supported with high
computing capability for G&G activitiescomputing capability for G&G activities
Actions TakenActions Taken
Under ProcurementUnder Procurement 1- Vessel for offshore Seismic survey1- Vessel for offshore Seismic survey 10 - Seismic Data Acquisition system 10 - Seismic Data Acquisition system
Upgradation of facilities at GEOPIC under processUpgradation of facilities at GEOPIC under process
‘‘Virtual Reality Centre’ (Third Eye) to be commissioned in Virtual Reality Centre’ (Third Eye) to be commissioned in July’ 2002 at MumbaiJuly’ 2002 at Mumbai
513rd Strategy Meet, July 12-14,2002
Technology - DrillingTechnology - Drilling
DecisionDecision
ONGC to leverage state-of the-art technology like – Premium Bits, ONGC to leverage state-of the-art technology like – Premium Bits,
use of Drilling fluid technology etc., for improving overall efficiency.use of Drilling fluid technology etc., for improving overall efficiency.
Actions TakenActions Taken
Premium bits under use in all major fields – 42 to 64%Premium bits under use in all major fields – 42 to 64%
Efforts being made to augment drilling fluid technologyEfforts being made to augment drilling fluid technology
Discussions with industry leadersDiscussions with industry leaders
523rd Strategy Meet, July 12-14,2002
Technology - DrillingTechnology - Drilling
DecisionDecision
To put in place a process to ensure quality To put in place a process to ensure quality
cementationcementation
Actions TakenActions Taken
IDT has developed light weight and ultra heavy IDT has developed light weight and ultra heavy
weight cement slurry for Mumbai high & Cachar weight cement slurry for Mumbai high & Cachar
project respectivelyproject respectively
Project specific cementation technology worked outProject specific cementation technology worked out
533rd Strategy Meet, July 12-14,2002
DecisionDecision
To send a delegation to Sasol for firming up GTL technology To send a delegation to Sasol for firming up GTL technology
induction for utilization of Tripura Gas.induction for utilization of Tripura Gas.
Actions TakenActions Taken
Sasol not interested to license on arms-length basisSasol not interested to license on arms-length basis
Desires participation in profitable venturesDesires participation in profitable ventures
Conditions for participationConditions for participation
Uncommitted gas reserve – 20 TCF gas over 30 yearsUncommitted gas reserve – 20 TCF gas over 30 years
Gas price – US$0.50 per MMBTUGas price – US$0.50 per MMBTU
Capacity – 100,000 bpdCapacity – 100,000 bpd
Project benchmark for SasolProject benchmark for Sasol
ICB being floated to invite prospective partners for setting up ICB being floated to invite prospective partners for setting up GTL projectGTL project
Technology - GTLTechnology - GTL
543rd Strategy Meet, July 12-14,2002
OOR SchemeOOR Scheme
GoalGoal
Improved management of the existing AssetsImproved management of the existing Assets
Suggested ApproachSuggested Approach
Close MonitoringClose Monitoring
De-bottlenecking & revamping of facilitiesDe-bottlenecking & revamping of facilities
Contd…
553rd Strategy Meet, July 12-14,2002
OOR SchemeOOR Scheme
DecisionDecision
To work-out time-bound action plan for “SCADA” To work-out time-bound action plan for “SCADA”
implementation. implementation.
Actions TakenActions Taken
Offshore SCADA system scheduled to be Offshore SCADA system scheduled to be
upgraded by June’2004 under project PROMISEupgraded by June’2004 under project PROMISE
Onshore SCADA system (GGS/ CTF level) Onshore SCADA system (GGS/ CTF level)
planned under Project PROMISE by June’2003planned under Project PROMISE by June’2003
Contd…
563rd Strategy Meet, July 12-14,2002
OOR SchemeOOR Scheme
DecisionDecision
De-bottlenecking & revamping of facilities De-bottlenecking & revamping of facilities
Actions TakenActions Taken
Assets identified the facilities requiring de-bottlenecking. Assets identified the facilities requiring de-bottlenecking. Structured approach being adopted to revamp the facilities.Structured approach being adopted to revamp the facilities.
Recommendations of the consultant M/S Mckinsey under Recommendations of the consultant M/S Mckinsey under project ACCEPT being implemented in Assam Asset.project ACCEPT being implemented in Assam Asset.
De-bottlenecking & revamping of facilities defined as KPA in De-bottlenecking & revamping of facilities defined as KPA in Performance Contract signed with Assets and BasinsPerformance Contract signed with Assets and Basins
Compliance of internal safety audits and third party audit Compliance of internal safety audits and third party audit ensures phased de-bottlenecking and revamping of facilities.ensures phased de-bottlenecking and revamping of facilities.
573rd Strategy Meet, July 12-14,2002
InfocomInfocom
GoalGoal
Integrated IT solutions for efficiencyIntegrated IT solutions for efficiency
Projects under implementationProjects under implementation
Project ICEProject ICE
Project PROMISEProject PROMISE
Project EPINETProject EPINET
Contd…
583rd Strategy Meet, July 12-14,2002
InfocomInfocom
Present StatusPresent Status
Approval accorded to award contract on Approval accorded to award contract on nomination basis to M/S SAP India for nomination basis to M/S SAP India for implementation implementation
30 Projects identified under Project 30 Projects identified under Project PROMISE under various stages of PROMISE under various stages of implementation.implementation.
First phase of Project EPINET implementedFirst phase of Project EPINET implemented
593rd Strategy Meet, July 12-14,2002
GoalGoal
To improve and optimise offshore servicesTo improve and optimise offshore services
Suggested ApproachSuggested Approach
Outsourcing of offshore services Outsourcing of offshore services
through Joint Venture (JV)through Joint Venture (JV)
Optimization of Offshore ServicesOptimization of Offshore Services
Contd…
603rd Strategy Meet, July 12-14,2002
Optimization of Offshore ServicesOptimization of Offshore Services
DecisionsDecisions
To select JV partner (s)To select JV partner (s)
To prepare Feasibility ReportTo prepare Feasibility Report
MOP&NG, Ministry of Shipping & Surface Transport and MOP&NG, Ministry of Shipping & Surface Transport and Ministry of Defence to be informed about the ONGC’s need Ministry of Defence to be informed about the ONGC’s need and policy regarding formation of JV for Floating Services.and policy regarding formation of JV for Floating Services.
Actions TakenActions Taken
Core team discussed JV formation withCore team discussed JV formation with SCI, GE Shipping, SEMAC, HSL, MDL, CSL, ICICISCI, GE Shipping, SEMAC, HSL, MDL, CSL, ICICI
Consultant being appointed for preparing Feasibility Consultant being appointed for preparing Feasibility Report.Report.
Action in HandAction in Hand
613rd Strategy Meet, July 12-14,2002
GoalGoal
To Streamline tender and contract processes & procedures for To Streamline tender and contract processes & procedures for
expeditious resource mobilizationexpeditious resource mobilization
Suggested ApproachSuggested Approach
To carry out Changes aiming atTo carry out Changes aiming at
reduction in number of tendersreduction in number of tenders
selection of quality biddersselection of quality bidders
transparent bidding processtransparent bidding process
Process SimplificationProcess Simplification
Contd…
623rd Strategy Meet, July 12-14,2002
DecisionsDecisions
Position specific empowerment from top to grass root level, with an in-built system of reviews at appropriate level.Position specific empowerment from top to grass root level, with an in-built system of reviews at appropriate level.
Tender information to be put on the web-site for transparency and appropriate publicity.Tender information to be put on the web-site for transparency and appropriate publicity.
Organization of proactive pre-bid conferences.Organization of proactive pre-bid conferences.
Actions TakenActions Taken
Proposed revision in material procurement provisions in BDP submitted for considerationProposed revision in material procurement provisions in BDP submitted for consideration
Web-site ongctendersonline.com launched. Tender information being put on web.Web-site ongctendersonline.com launched. Tender information being put on web.
Pre-bid conferences being organized on regular basisPre-bid conferences being organized on regular basis
Process SimplificationProcess Simplification
Contd…
633rd Strategy Meet, July 12-14,2002
DecisionsDecisions
Annual Maintenance Contract (AMC) on life-cycle concept basis Annual Maintenance Contract (AMC) on life-cycle concept basis be in-placebe in-place
Payment within 15 days, LD levied strictly as per the contract Payment within 15 days, LD levied strictly as per the contract
Post contract issues should be appropriately addressed at the Post contract issues should be appropriately addressed at the Director’s levelDirector’s level
Actions TakenActions Taken
AMC on life-cycle concept being incorporated as standard AMC on life-cycle concept being incorporated as standard clause in BEC.clause in BEC.
Instructions issued to make payment within 15 days and Instructions issued to make payment within 15 days and imposition of LD as per contract. Agenda under consideration of imposition of LD as per contract. Agenda under consideration of Executive Purchase Committee (EPC) for further clarificationsExecutive Purchase Committee (EPC) for further clarifications
Circular issued specifying authority dealing with post contract Circular issued specifying authority dealing with post contract issues. issues.
Process SimplificationProcess Simplification
Contd…
643rd Strategy Meet, July 12-14,2002
DecisionsDecisions
Sampling/ Bonding of Chemicals to be streamlinedSampling/ Bonding of Chemicals to be streamlined
Charter-hiring of the Vessels on long-term basis Charter-hiring of the Vessels on long-term basis
ONGC to put up a proposal to MOP&NG for entering into long-ONGC to put up a proposal to MOP&NG for entering into long-term contracts, wherever felt necessaryterm contracts, wherever felt necessary
Actions TakenActions Taken
Agenda related to streamline sampling/ bonding of chemicals Agenda related to streamline sampling/ bonding of chemicals under consideration of Executive Purchase Committee (EPC)under consideration of Executive Purchase Committee (EPC)
BEC approved by EPC for hiring of vessels for 3 years term. BEC approved by EPC for hiring of vessels for 3 years term. Tender being invitedTender being invited
DGS&D is proposed to be appointed as consultant for DGS&D is proposed to be appointed as consultant for suggesting modalities for long-term contract. Based on suggesting modalities for long-term contract. Based on suggested approach proposal shall be submitted to MOP&NGsuggested approach proposal shall be submitted to MOP&NG
Process SimplificationProcess Simplification
Contd…
653rd Strategy Meet, July 12-14,2002
DecisionDecision
Effective vendor rating systems be evolved. Effective vendor rating systems be evolved.
Termination or Holiday in case of defaulting vendors.Termination or Holiday in case of defaulting vendors.
Action TakenAction Taken
Vendor rating system establishedVendor rating system established
Process SimplificationProcess Simplification
663rd Strategy Meet, July 12-14,2002
673rd Strategy Meet, July 12-14,2002
Direct MarketingDirect MarketingDecisionDecision
To prepare a comprehensive paper for direct marketing of hydrocarbon produced from isolated fields and in the To prepare a comprehensive paper for direct marketing of hydrocarbon produced from isolated fields and in the other areas where GAIL is not in a position to provide marketing support to ONGC. other areas where GAIL is not in a position to provide marketing support to ONGC.
Actions TakenActions Taken
Comprehensive note put up to MOP&NG in Feb’2002Comprehensive note put up to MOP&NG in Feb’2002
Issue discussed by Gas Linkage Committee(GLC) on 22.5.2002Issue discussed by Gas Linkage Committee(GLC) on 22.5.2002
GLC formed a committee to review guidelines for allocation of such gas.GLC formed a committee to review guidelines for allocation of such gas.
683rd Strategy Meet, July 12-14,2002
Indian Flag VesselsIndian Flag Vessels
DecisionDecision
The issues related to Indian Flag Vessels including The issues related to Indian Flag Vessels including payment in foreign currency was discussed and it payment in foreign currency was discussed and it was decided that a note be submitted to the was decided that a note be submitted to the MOP&NGMOP&NG
Action TakenAction Taken
Action in HandAction in Hand
693rd Strategy Meet, July 12-14,2002
Refinery productsRefinery products
DecisionDecision
To put up details regarding non-upliftment of To put up details regarding non-upliftment of
products from Tatipaka Refinery to the Additional products from Tatipaka Refinery to the Additional
Secretary (MOP&NG) for taking up the matter in the Secretary (MOP&NG) for taking up the matter in the
sales meeting with refineries, scheduled for 18th sales meeting with refineries, scheduled for 18th
Feb. 2002. Feb. 2002.
Action TakenAction Taken
Comprehensive note put up to MOP&NG in Feb’2002Comprehensive note put up to MOP&NG in Feb’2002
703rd Strategy Meet, July 12-14,2002
Price & Purchase PreferencePrice & Purchase Preference
DecisionDecision
A proposal to be submitted to MOP&NG to review the instructions regarding Price & Purchase preference to the PSUs. A proposal to be submitted to MOP&NG to review the instructions regarding Price & Purchase preference to the PSUs.
Actions TakenActions Taken
Comprehensive note submitted in Feb’2002Comprehensive note submitted in Feb’2002
As per decision of the Board on 16.5.2002 comprehensive agenda under submission to Govt.As per decision of the Board on 16.5.2002 comprehensive agenda under submission to Govt.
Notification issued by the Govt. in June’2002 restoring Purchase Preference.Notification issued by the Govt. in June’2002 restoring Purchase Preference.
713rd Strategy Meet, July 12-14,2002
ILiTesILiTes
DecisionsDecisions
To form disaster Management team at National level - To form disaster Management team at National level -
Indian Life Saver Teams (ILiTes) Indian Life Saver Teams (ILiTes)
Issue of tax exemption be examined for creating ILiTes Issue of tax exemption be examined for creating ILiTes
and modalities to flag the name of ONGC with disaster and modalities to flag the name of ONGC with disaster
management team be finalized.management team be finalized.
Actions TakenActions Taken
Consultant appointedConsultant appointed
Action in handAction in hand
723rd Strategy Meet, July 12-14,2002
Project SaraswatiProject Saraswati
DecisionDecision
A proposal for exploitation of aquifers in areas A proposal for exploitation of aquifers in areas covering the ancient Saraswati River be covering the ancient Saraswati River be brought to the EC.brought to the EC.
Actions TakenActions Taken
Proposed approach paper discussed in EC on Proposed approach paper discussed in EC on 25.4.200225.4.2002
Process of identifying agencies/institutions for Process of identifying agencies/institutions for engagement of consultant being finalized engagement of consultant being finalized
733rd Strategy Meet, July 12-14,2002
Dry wellsDry wells
DecisionDecision
Option to hand over existing dry wells which can’t Option to hand over existing dry wells which can’t be put on use to the Ground Water Boards be be put on use to the Ground Water Boards be examined. examined.
Actions TakenActions Taken
Feasibility w.r.t double casing, well availability Feasibility w.r.t double casing, well availability with ONGC, cost & water requirement in the area with ONGC, cost & water requirement in the area to be studied to be studied
743rd Strategy Meet, July 12-14,2002
753rd Strategy Meet, July 12-14,2002
Jatar Committee ReportJatar Committee Report
BackgroundBackground
G-345 Well in Gandhar got fire on 30.10.2001 due G-345 Well in Gandhar got fire on 30.10.2001 due to theft attemptto theft attempt
Expert Committee constituted by MOP&NG under Expert Committee constituted by MOP&NG under the Chairmanship of Maj.Gen (Retd.) S C N Jatar the Chairmanship of Maj.Gen (Retd.) S C N Jatar to enquire the accidentto enquire the accident
Interim report was submitted by the Committee in Interim report was submitted by the Committee in January’2002January’2002
Findings of the report discussed in the 2Findings of the report discussed in the 2ndnd Strategy Meet, Feb 1-3, 2002.Strategy Meet, Feb 1-3, 2002.
Contd…
763rd Strategy Meet, July 12-14,2002
Jatar Committee ReportJatar Committee Report
DecisionsDecisions
Promotion of the under-qualified people to E-4 Promotion of the under-qualified people to E-4 level and designating them as Engineers be re-level and designating them as Engineers be re-looked. looked.
14 days on/off pattern be reviewed with one rule 14 days on/off pattern be reviewed with one rule applicable to all work centers of ONGC. However, applicable to all work centers of ONGC. However, a distinction be made between onshore and a distinction be made between onshore and offshore operations.offshore operations.
Actions in handActions in hand
Contd…
773rd Strategy Meet, July 12-14,2002
Jatar Committee ReportJatar Committee Report
DecisionDecision
A comprehensive review of Crisis Management Team in terms of A comprehensive review of Crisis Management Team in terms of reporting, equipment, efficiency, audit, training in a time bound reporting, equipment, efficiency, audit, training in a time bound mannermanner
Actions TakenActions Taken
Review of CMT carried outReview of CMT carried out
RCMT at different locations establishedRCMT at different locations established
CMT equipment identified and sourcing plannedCMT equipment identified and sourcing planned
To get services at the time of crisis - Rate contract being finalized To get services at the time of crisis - Rate contract being finalized with a reputed companywith a reputed company
Training & exposure to CMT & Operational crewTraining & exposure to CMT & Operational crew
Floating Crisis Management Facility at MumbaiFloating Crisis Management Facility at Mumbai
Contd…
783rd Strategy Meet, July 12-14,2002
Jatar Committee ReportJatar Committee Report
DecisionDecisionAll the well sites be fenced. However, if the present design All the well sites be fenced. However, if the present design of fencing is inadequate a review be made.of fencing is inadequate a review be made.
Head-Performance Management and Benchmarking be Head-Performance Management and Benchmarking be asked to study measurement and accounting practices.asked to study measurement and accounting practices.
Actions in HandActions in Hand
793rd Strategy Meet, July 12-14,2002
803rd Strategy Meet, July 12-14,2002
Agenda – 3Agenda – 3rdrd Strategy Meet Strategy Meet
Action Taken Report (ATR) Action Taken Report (ATR)
Monetization - Service Contract for Marginal FieldsMonetization - Service Contract for Marginal Fields
Monetization – Farm-out of Deep-water nomination BlocksMonetization – Farm-out of Deep-water nomination Blocks
Monetization – Departmental ProjectsMonetization – Departmental Projects
FPSO/ EPSFPSO/ EPS
Gas Business – Marketing IssuesGas Business – Marketing Issues
Gas Business – Under recoveriesGas Business – Under recoveries
Onshore ProductionOnshore Production
Value Addition – Oil & GasValue Addition – Oil & Gas
12.7.200212.7.2002
Contd…
813rd Strategy Meet, July 12-14,2002
Agenda – 3Agenda – 3rdrd Strategy Meet Strategy Meet
OOR – Non-Flowing WellsOOR – Non-Flowing Wells
OOR – Gas CompressionOOR – Gas Compression
Security Manning PolicySecurity Manning Policy
Offshore ProductionOffshore Production
Financials – Negative RevenuesFinancials – Negative Revenues
Financials – OutstandingsFinancials – Outstandings
Financials – Cash-flow projectionsFinancials – Cash-flow projections
HRD – Transfer & Promotion; Policy ApproachHRD – Transfer & Promotion; Policy Approach
Community Development PolicyCommunity Development Policy
13.7.200213.7.2002
Contd…
823rd Strategy Meet, July 12-14,2002
Agenda – 3Agenda – 3rdrd Strategy Meet Strategy Meet
PY-3 Case StudyPY-3 Case Study
Environmental ProtectionEnvironmental Protection
SHE – Crisis Management Team (CMT)SHE – Crisis Management Team (CMT)
SHE – Learning from Safety AuditsSHE – Learning from Safety Audits
14.7.200214.7.2002
833rd Strategy Meet, July 12-14,2002
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