ONGC signs MoU with Petroleum Ministry, sets higher targets for oil, gas production

Oil and Natural Gas Corporation Ltd. (ONGC) has signed a Memorandum of Understanding with the Ministry of Petroleum and Natural Gas, agreeing on a set of performance parameters and targets for the financial year 2007-08.

The MoU was inked by Petroleum Secretary M S Srinivasan and ONGC CMD R S Sharma.

The performance targets set for 2007-08 mark a significant improvement in corporate deliverables in core business areas, as brought out below:

The crude production target: has been set at 29.04 million tons, six percent higher than the 27.35 metric tons set for 2006-07.

Natural Gas Production has been set at 25.05 Billion Cubic Metres (BCM), which is 14 percent higher than the 21.97 BCM set in 2006-07.

Value-Added-Products have been set at 32.45 million tons, which is 12 percent up from 29.03 million tons set in 2006-07.

The Reserve Accretion (Ultimate) target: has been set at 55 million tons of Oil Equivalent (MToe), which is five percent higher than the target of of 52.5 MToe set in 2006-07

Under the MoU, a number of new performance parameters have also been introduced for 2007-08. They include: Third party audit of 350 exploratory wells, formation of three joint ventures and alliances with international majors, economic value addition of 19.13 percent, undertaking two clean development mechanism projects and restoration of drillsite land before handing over (38).

The FY-08 MoU has also doubled the weightage on subsidiary management (OVL and MRPL) from two to four percent.

Since the introduction of the MoU concept in 1997-98, ONGC has consistently performed well in its score card and has been rated 'Excellent' thrice during the last five years. It secured a Composite MoU score of 1.43 in the MoU Performance Evaluation in FY-06 based on audited results.

Speaking on the occasion after the signing of the MoU, R S Sharma, ONGC CMD, said that the higher MoU targets signify higher business growth - and are aimed to address the expectations of all stakeholders of ONGC. (ANI)

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