ONGC signs MoU with Petroleum Ministry for FY-08

Oil and Natural Gas Corporation Ltd. (ONGC) has signed a Memorandum of Understanding with the Ministry of Petroleum & Natural Gas, agreeing on a set of Performance Parameters and targets for the financial year 2007-08. The MoU was inked by Mr. M S Srinivasan, Secretary, MoP&NG and Mr. R S Sharma, CMD, ONGC in the Ministry on 29th March 2007.

The Performance Targets set for FY-08 mark a significant improvement in corporate deliverables in core business areas, as brought out below:

MoU targets for FY-08

Crude Production target: 29.04 Million Tonnes (MT), 6% higher than 27.35 MT in FY-07 Natural Gas Production: 25.05 Billion Cubic Metres (BCM), 14% higher than 21.97 BCM in FY-07 Value-Added-Products: 32.45 Million Tonnes (MT), 12% up from 29.03 MT in FY-07 Reserve Accretion (Ultimate) target: 55 Million Tonnes of Oil Equivalent (MToe), 5% higher than the target of 52.5 MToe in FY-07

A number of new Performance Parameters have been introduced in this (FY-08) MoU. The significant milestones include:

Third Party Audit of 350 Exploratory Wells,
Formation of three Joint Ventures and Alliances with International majors,
Economic Value Addition of 19.13%,
Undertaking two Clean Development Mechanism Projects,
Restoration of drillsite land before handing over (38).

The FY-08 MoU has also doubled the weightage on subsidiary management (OVL and MRPL) from 2% to 4%.

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 signing the MoU, Mr. 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.

Source : Press Information Bureau

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