#ONGC restores ‘near normalcy’ after gas leakage in #Mumbai Offshore

Oil and Natural Gas Corp (ONGC) has restored "near normalcy" at its prime Mumbai High oil and gas fields after a minor gas leak reported yesterday.
The western offshore fields of ONGC are producing at a near normal rate of 310,000 barrels per day and all personnel and facilities are unharmed. As a precaution, ONGC had shut gas injection into some of the nearby wells in the Mumbai High North fields. On 19th July 2014 early morning, gas flow was observed. Following this, operation at Mumbai High was stopped for safety reasons. Forty eight persons were evacuated to nearby installations. Five vessels including two Multi Support Vessels (MSVs) were sent to the location for any immediate support. Crisis Management Team (CMT) of ONGC was on site. All preparations were made to plug the leak. International expert from Boots & Coots were mobilised.

Gas leak reported at a well being drilled by #ONGC in #Mumbai High fields

Gas leak reported at a well being drilled by ONGC in Mumbai High fields, off the Mumbai coast.
— Press Trust of India (@PTI_News) July 19, 2014

 Initial reports say that the Coast Guard and Indian Navy have diverted ships to provide assistance in evacuation.
The oil rig is situated 162 kilometres off the coast of Mumbai and is operated by the Oil and Natural Gas Corporation (ONGC).

ONGC shuts well drilling operations; evacuate all non-essential staff.
— Press Trust of India (@PTI_News) July 19, 2014

Operations safe; no loss of life or property reported: ONGC.
— Press Trust of India (@PTI_News) July 19, 2014

#ONGC Videsh signed exploration deal with Russia’s Rosneft

Igor Sechin, President and Chairman of the Management Board, Rosneft and Dinesh Kumar Sarraf, Chairman of the Board of Directors, ONGC Videsh Ltd and Chairman & Managing Director, ONGC signed a Memorandum of Understanding at the St. Petersburg International Economic Forum, in the presence of Mr. Vladimir Putin, President of the Russian Federation. The Memorandum paves the way for the companies’ cooperation in subsurface surveys, exploration and appraisal activities and hydrocarbons production in Russia’s offshore Arctic.
The parties will jointly consider forming a consortium led by Rosneft and involving other partners.
About ONGC:
ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India. It is India’s largest oil and gas exploration and production company outside India. At present, ONGC Videsh has activities in 33 projects spread across 16 countries. ONGC Videsh and Rosneft are partners in the Sakhalin-I oil and gas project in the Russian Federation.
ONGC is India’s largest government-run corporation and produces about 70% of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India with current market capitalization of about USD 60 billion. The Indian government holds a 68.94% stake in ONGC.

Reliance pumped out gas from a reservoir belonging to ONGC in Krishna-Godavari Basin

Clarification by ONGC : ONGC has written to the Ministry of Petroleum and Natural Gas last year requesting for a data-sharing with ONGC to study and evaluate the possibility of a reservoir continuity in the prospective area. Under PSC, DGH has role to play in such situations. However, ONGC was asked to resolve the issue independently with RIL, in the first instance.
Director (Exploration) Mr. N K Verma said in the 4th March Press Conference that some data on overlapping gas pools have been exchanged, but things need to progress from thereon. The recent communication from ONGC to the Ministry was to apprise the status to the administrative Ministry. Mr. Verma also clarified in the Conference that such cases happen in the global hydrocarbon industry and they take time to get resolved either mutually or with the intervention of third party experts.

Average cost of gas production is USD 3-4: ONGC Chairman D K Sarraf

Some gas not viable at even USD 8; average cost of gas production is USD 3-4: ONGC chairman D K Sarraf.
— Press Trust of India (@PTI_News) March 4, 2014

Why Sudhir Vasudeva could not get an extension as CMD of ONGC?

Mr. Sudhir Vasudeva is the Chairperson & Managing Director (CMD) of the Central Government undertaking Oil & Natural Gas Corporation (ONGC) since October 2011. He is retiring tomorrow, i.e. on 28th February 2014.

UPA Government chose Mr. Vasudeva for appointment as CMD of ONGC in October 2010. But then his vigilance clearance was rejected by the Central Vigilance Commission (CVC). Undeterred, the UPA Govt again sought his vigilance clearance for the second time. His clearance was again rejected by the CVC relying upon the reports of the CVO (Annexure C). Despite this, UPA Government appointed Mr. Vasudeva as the CMD of ONGC in October 2011 (either without vigilance clearance or by seeking the clearance for the third time).

It was due to the valuation report given by Mr. Vasudeva that ONGC did not exercise its right of first refusal and allowed the lucrative Rajasthan oil block held by Cairn Energy to be sold to Vedanta. It is now clear that the valuation was rigged & undervalued, and the ONGC ought to have exercised its right.

During his tenure he favoured RIL by allowing them to extend into ONGC fields and extract natural gas (Annexure D). A petition in Delhi HC is also pending regarding the favours extended by Mr. Vasudeva to the KG basin gas block.

Now the UPA Government (particularly petroleum minister Mr. Veerappa Moily) wanted to further extend his tenure by at least one year.

His file for vigilance clearance was submitted to CVC. CVC stated that there are 6 cases pending against him in the Ministry that have not been taken to their logical conclusion. CVC has also pointed out that Dr. Furquan’s petition is pending in Delhi HC relating to KG Basin and that CVC itself has sought a response from the Ministry on these issues.

But Mr. Moily over ruled the CVC and sought to give him the extension against the said recommendation without a vigilance clearance (Annexure E). Mr. Moily wrote to the Prime Minister stating “I therefore strongly recommend him (Mr. Vasudeva) to continue in the office at least for one more year” (Annexure F).

Mr. Moily forgot that it is absolutely illegal to make an appointment or grant extension for a senior position like that of a CMD of ONGC without a proper vigilance clearance from the CVC. After negative reports appeared in the media yesterday, it is now learnt that the Cabinet Committee has overruled Mr. Moily and has not extended the term of Mr. Vasudeva.

This development shows the extent to which Mr. Moily can go to appoint tainted officers in key positions, in order to serve the vested interests of this government and its favoured companies like Reliance.

The views expressed are of  Aam Aadmi Party (AAP).

D K Sarraf appointed as new Chief of ONGC

D K Sarraf appointed as new Chief of ONGC

Mr Dinesh Kumar Sarraf has been appointed as the new Chairman and Managing Director of Oil and Natural Gas Corporation Ltd (ONGC) by the Government of India, in place of Mr Sudhir Vasudeva who is superannuating on Friday.

The appointments committee of the union cabinet approved the appointment of Mr Sarraf, who at present is the Managing Director of ONGC Videsh Ltd, the overseas arm of ONGC. The Public Enterprises Selection Board (PESB) had recommended Mr Sarraf for the top job on August 30, 2013.

Mr. D.K. Sarraf (56) holds a graduate degree in Commerce from the prestigious Shri Ram College of Commerce, Delhi University and holds a post graduate degree in Commerce from the same University. He is an associate member of the Institute of Cost and Works Accountants of India and the Institute of Company Secretaries of India.

Mr Sarraf assumed the charge of Managing Director and CEO of ONGC Videsh in September 2011. As Managing Director, ONGC Videsh Limited, he institutionalized systems and processes to ensure attainment of the committed targets. He has introduced ‘zero-based risk review’ mechanism for risk assessment in major acquisitions and mitigations of the risks. He laid emphasis on capability building and creating systems-based approach to OVL’s activities in general and business development in particular. , He accepted the challenge to grow current production of ONGC Videsh from 8MMToe to 20 MMToe by 2017-18 and to 60 MMToe by 2029-20 – unprecedented in the global E&P industry.

To accomplish this daunting task, he actively participated in the financial due diligence and price negotiations for company’s major acquisitions, like Block BC-10 Brazil, NEMED Block Egypt, AFPC Project Syria, MECL Project Columbia, Rovuma Area I Block in Mozambique offshore etc.; and guided the negotiating team for other acquisitions, resulting in substantial savings. He was awarded the CEPM-PMA fellowship on December 2, 2013 by the Project Management Associates – India (PMA – India).

Mr. Sarraf earlier worked in ONGC Videsh Limited as Director (Finance) during February 2005 to December 2007. During this period, ONGC Videsh made significant acquisitions in Syria, Brazil, Colombia, Venezuela, Cuba, Egypt and Myanmar. Mr Sarraf played key roles in negotiation and conclusion of these transactions. During this period, the Company saw significant increase in its activities, production, revenue and profits. In December 2007, he joined ONGC as Director (Finance).

ONGC allots additional 15000 SCMD gas to SEIL

Upstream oil major ONGC Limited has now allocated additional 15000 SCMD (standard cubic metres per day) of gas to Steel Exchange India Limited (SEIL, BSE Scrip Code - 534748) which is one of the largest steel manufacturers in the private sector in Andhra Pradesh for its Captive Power Plant at Kothapeta.

The gas will be supplied from Kammapalem field, Rajahmundry Asset on fall-back basis in pursuant to Ministry of Petroleum & Natural Gas (MoP&NG) guidelines for allocation of gas from small/isolated fields & Marginal fields.

The total gas allocation now stands at 75,000 SCMD per day. SEIL has facility to generate upto 12 MW of power at its Kothapeta plant. Presently SEIL is supplying the unutilized power upto 9 MW to APTRANSCO.

Expressing his views on this allocation Mr. B. Satish Kumar - Managing Director, Steel Exchange India Limited said, " We are very happy and take pride to note ONGC has approved our bid and allocated the gas. We have recently upgraded our gas engines for efficient working and We will be able to reach our full potential of power generation at Kothapeta with this allocation."


About Steel Exchange India Limited

Steel Exchange India Limited was incorporated in Feb'1999 as Pyxis Technology Solutions Limited (PTSL). The Company is promoted by first generation enterpreneurs and technocrats. Pyxis Technology Solutions was a software Company focused on development of business to business specific online solutions. The promoters were originally into trading of steel & steel related products under the banner of Vizag Profiles a well known group in Vishakhapatnam. After gaining substantial experience in steel trading, the promoters decided to launch a portal based steel trading platform. In December 1999 M/s Steel Exchange India Limited (SEIL) was incorporated as a 100% subsidiary of PTSL. M/s Pyxis approached the Capital Markets with its maiden Initial Public Offering in June 2000.

CAPEX Investment Plans of Central Public Sector Enterprises (CPSEs) Performance for Q1 FY 13-14

The Prime Minister’s Office has been monitoring the CAPEX and investment plans of selected Central Public Sector Enterprises (CPSEs) since FY 12-13. The purpose of this exercise was to enhance investment in the economy and use CPSEs to drive economic growth.

The CAPEX target set for FY – 2013-14 is Rs. 141,912 crores. This covers 23 CPSEs, including major investors such as ONGC, Oil India, GAIL, Indian Oil, MRPL, SAIL, NMDC, Powergrid, NHPC, NTPC, Coal India, Neyveli Lignite Corp., CONCOR, NALCO, BHEL, BEL, Rashtriya Ispat Nigam, Satluj Jal Vikas Nigam and Nuclear Power Corporation.

At the end of the first quarter, (Q1, FY13-14), the overall capital investment by all these CPSEs is Rs 23,635 crores as against the Q1 target of Rs. 25,131 crores. This is an achievement of 94%. It was also noted that six CPSEs, viz, NMDC, PGCIL, NLC, BEL, RINL and HAL had surpassed their first quarter targets.

In a review meeting of the lagging CPSEs, i.e., NTPC, SJVNL, Coal India, CONCOR and NPCIL, the individual CPSEs assured that they would exceed targets by Q2 or latest by Q3.

PESB recommended D K SARRAF for the post of Chairman & Managing Director, ONGC Limited

The Public Enterprises Selection Board (PESB) has recommended D K SARRAF for the post of Chairman & Managing Director, ONGC Limited.
The following persons were interviewed in the selection meeting:
S/Shri
1. SHASHI SHANKER, DIR (T&FS), ONGC
2. D K SARRAF, MD, OVL
3. R MOHAN DAS, DIR (P&IR), CIL
4. ASHWANI LOHANI, CME, MOR

Mr. D.K. Sarraf (54) holds a graduate degree in Commerce from the prestigious Shri Ram College of Commerce, Delhi University and holds a post graduate degree in Commerce from the same University. He is an associate member of the Institute of Cost and Works Accountants of India and the Institute of Company Secretaries of India.
Mr. Sarraf has experience of almost three decades in the oil and gas industry, having started his oil and gas career in India’s second largest upstream oil company – Oil India Limited and worked there till 1991 where he inculcated the experience in various facets of E&P at oil field level. He joined ONGC in 1991 and handled various key assignments at corporate offices. These included, restructuring ONGC from a statutory commission into a commercial corporation, including its financial restructuring and valuation. This led to partial divestment of ONGC by the Government of Indiain tranches where he played a major role. His services were seconded by ONGC to the Oil Coordination Committee of MoP&NG for studying the petroleum pricing system in the country which resulted in partial deregulation of prices. He also worked as Chief, Commercial of ONGC.
Mr. Sarraf earlier worked in ONGC Videsh Limited as Director (Finance) during February 2005 to December 2007. During this period, ONGC Videsh made significant acquisitions in Syria, Brazil, Colombia, Venezuela, Cuba, Egypt and Myanmar. Mr. Sarraf played key roles in negotiation and conclusion of these transactions. During this period, the Company saw significant increase in its activities, production, revenue and profits. In December 2007, he joined ONGCas Director (Finance).In recognition of his achievements, he was given the Best CFO Award in Oil & Gas sector in Indiaby CNBC in 2009 and 2011. Mr. Sarraf has assumed the charge of Managing Director and CEO of ONGC Videsh in September, 2011