3rd Strategy Meet

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3rd Strategy Meet

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Title: 3rd Strategy Meet

1
3rd Strategy Meet
2
Action Taken Report (ATR)
3rd S T R A T E G Y M E E T

1st 2nd Strategy Meet

3
Strategic Goals

To double Reserve Accretion
To improve Recovery Factor to 40
To bring in 20 MMTpa equity oil from abroad
over 2001-20

4
To Double Reserve Accretion

4 Bmt OOEG Offshore
Deepwater
2 Bmt OOEG onshore
Frontier Basins
Growth areas from established 6 Basins

5
Deepwater
6
Deepwater

Suggested Approach
In house expertise development
Alliance with leading deep-water players
Long-term strategic relationship

7
Deepwater

Decision
Formation of Core groups to firm-up time-bound
action plan for expertise development in deep
water exploration.

Actions Taken
Deepwater core groups formed for integration of
activities
Plan to bridge gaps in expertise, technology
induction and skill development etc., to be
finalized in July02

Contd
8
Deepwater

Decision
Charter hiring of rigs for deepwater operations

Actions Taken
Charter hiring of 3 deepwater rigs under
finalization.
Up to 1500m 1 rig
Up to 2500m 1 rig
Up to 3000m 1 rig
Discussions held with drilling companies. Pre-bid
conference held.
BEC under finalization.

Contd
9
Deepwater

Decision
Procurement of one super-deep (gt2500m) drilling
rig
Actions Taken
Initially 1 super deep drilling rig being hired.
Acquisition as per success probability.

Contd
10
Deepwater

Decision
To submit a detailed proposal to MOPNG for
empowering ONGC to formalize Joint Ventures and
Alliances for ED and Drilling
Actions Taken
Note put up in Feb2002
Lukewarm response from 17 companies identified
for alliancing for exploration in 5 deepwater
blocks
Other companies short-listed for possible
alliance and modalities for alliance under
finalization.
Discussions with M/S Statoil for drilling
Deepwater wells on turnkey basis.

Contd
11
Deepwater

Decision
To submit a comprehensive note to MOPNG on
existing CVC guide-lines and proposed deviations
required for taking advantage of the
technological advancements.
Actions Taken
Comprehensive note submitted in March2002

Contd
12
Frontier Basin
13
Frontier Basin

Suggested Approach
Short Term Focussed exploration
Medium Term - Prospectivity Assessment for
focussed Exploration
Long Term - Knowledge building for Prospectivity
Assessment

Contd
14
Frontier Basin

Decision
Physical-inputs and resources for frontier basin
activities to be identified by March2002.
Action Taken
Physical inputs for knowledge building activities
and resources required in the frontier basins
identified.

Contd
15
Frontier Basin

Decisions
To submit comprehensive notes to MOPNG
requesting for
Fiscal relaxation required for its activity in
Frontier basins as well as in Tripura
Exploration licenses on nomination basis in
frontier basin
To submit proposal to OIDB for grants/ loans for
exploration in frontier basins
Actions Taken
Physical plans along with investment requirement
being submitted to EC
On approval, comprehensive proposal to be put up
to
MOPNG for mentioned dispensations
OIDB for grants/ soft loans for knowledge
building activities

16
Established Basins Improving Recovery Factor
17
Improvement in Recovery Factor

Suggested Approach
To focus on time-bound action plan for 15 major
producing fields including Mumbai High
To initiate actions to improve recovery factor
from other 30 fields
To initiate EOR projects for enhancing oil
recovery
Monetization accelerated development of New
Marginal fields

Contd
18
Improvement in Recovery Factor

Decision
Continuous monitoring of major fields
Actions Taken
Process established for continuous monitoring of
major fields through MDT
Micro detailing for monitoring firmed up through
Project ACCEPT for Assam field
Improved surveillance established at Asset level
IRS as nodal agency along with IOGPT, KDMIPE
monitoring the major fields on continuous basis
Consultants engaged to suggest proactive approach

Contd
19
Improvement in Recovery Factor

Decision
To develop the fields optimally keeping in view
the sound Reservoir Management Practices.
Actions Taken
19 IOR/ EOR projects underway in 15 major fields
12 IOR/EOR under implementation
14 IOR Studies programmed
11 Feasibility Reports are in process
22 EOR studies in progress at IRS

Contd
20
Improvement in Recovery Factor

Decisions
The proposal for strategic participation with
technology-leaders/ service providers for
best-available technology solutions agreed
in-principle and was desired to be expedited.
ONGC to be operator in all project-based
alliances
Actions Taken
Special assignment to focus on Strategic
Participation/ Alliances
For strategic Project based Alliance with
technology leaders a comprehensive MOU placed on
ONGC website and correspondences held with
leaders in service sector. Response under
submission to ONGC board.

Contd
21
Improvement in Recovery Factor

Decisions
Monetization accelerated development of New
Marginal Fields

Action Taken
Special group formed for development of New
Marginal fields
FR ready for Accelerated development of Vasai
East, D-1 G-1
Dockets for new marginal fields under
preparation
Strategic options and action plan being submitted
in 3rd Strategy Meet.

22
Equity oil
23
Equity Oil Gas
To bring in 20 MMTpa equity oil from abroad by
2020
Suggested Approach To focus on countries -
Indonesia, Russia, Iran, Iraq, Oman, Sudan,
Libya, Kazakhstan, Nepal, Algeria, Venezuela
Contd
24
Equity Oil Gas

Available equity
Vietnam Gas Project to go on stream by end 2002
Sakhalin-1 project progressing on schedule oil
to flow from 2005, Gas from 2007
Available block under exploration
20 equity taken in an offshore Gas exploration
block in Myanmar

Contd
25
Equity Oil Gas

Decision
To explore the possibility to develop matrix
indicating political risk in the countries of
interest and should cover these risks through
International banks
Actions Taken
Government of india has Bilateral Investment
Protection Agreements (BIPA) with 44 countries.
OVL 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 partner approach
Additional safe guard through the insurance
covers and guarantees is also being exercised
wherever it is felt necessary

26
Focussing Responsibilty Accountability
27
Corporate Rejuvenation Campaign

Background
CRC formulated from lessons learnt through Pilots
of Organisational Transformation Project (OTP)
launched in 1997.
CRC implementation decided in 1st Strategy Meet,
July 2001
Launched with the blessings of Honble Minister
(PNG) on 20.8.2001

Contd
28
Corporate Rejuvenation Campaign

Status
CRC roll-out complete Assets, Basins, Services
etc., in place
Each business unit has developed methodology to
function as Virtual Corporates

Contd
29
Corporate Rejuvenation Campaign

Decision
To obtain suggestions on CRC implementation from
E-0 officers and above level officers. To be put
in next EC meeting for corrective actions, if any
Actions Taken
Continued interaction - feedbacks received
Continued Corrective actions

Contd
30
Corporate Rejuvenation Campaign

Decision
Existing gaps in CRC to be plugged
Actions Taken
Necessary modifications in PAR, Cadre
development, Promotion policy etc., under
consideration for alignment as per CRC
Special groups formed for critical areas of
operation
Gas Flaring, Corporate IE, CMT, Fire Services etc.

Contd
31
Corporate Rejuvenation Campaign

Decision
Collectives to be shown existing distortions in
the organogram due to past promotion policy
Actions Taken
Distorted organogram posted on web for wider
appreciation
Modular course being developed for
under-qualified employees in consultation with
ISM, Dhanbad

Contd
32
Corporate Rejuvenation Campaign

Decision
ONGC to submit a proposal on VRS bringing out
constraints and dispensations required from the
Govt.
Actions Taken
Proposal for VRS submitted to the Govt.

33
Empowerment
34
Empowerment

Background
Board approved modifications in BDP-1994 giving
enhanced powers to the
Committee of the Board
Committees of CMD functional Directors
CMD
Functional Directors.
This became effective from 1st August2001.
Powers below Board level was enhanced w.e.f 1st
January2002

Contd
35
Empowerment

Decision
To carry out a quick assessment of the impact of
empowerment on overall functioning of the
organization once the transition is completed.

Actions Taken
Quick assessment carried out
HR BDP approved by Board in May2002

Contd
36
Empowerment

Decision
To give suitable powers to the location managers
to carry time bound activities.

Actions Taken
Delegation gaps identified
Comprehensive agenda for revision of BDP to give
suitable powers to operational managers under
submission to Board

37
Operational Efficiency
38
Focus Areas

Non-flowing wells
Gas flaring
Exploratory drilling backlog
Technology
OOR Schemes
Infocom
Offshore Services
Process Simplification

39
Non-flowing wells

Goal
Number of non-flowing wells to be reduced to 15
in onland 5 in offshore by 31.3.2003
Suggested Approach
Proactive workover operations
Augmentation of Resources

Contd
40
Non-flowing wells

Decision
An agenda to be put up to Executive Committee to
review the decision of reducing non- flowing
wells.

Action Taken
Action plan to reduce the number of non-flowing
wells discussed in EC

Contd
41
Non-flowing wells

Decisions
IRS 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.

Actions Taken
MDT from IRS, IOGPT Assets constituted for
Categorization of non-flowing wells submitted
report
Sick wells being reviewed on continuous basis

Contd
42
Non-flowing wells

Decision
To float tenders for charter-hire of 30
Work-over rigs (25 for onshore and 5 for
offshore) for 3 years
Actions Taken
Onshore
22 onshore workover rigs of different capacity
planned to be charter hired during 2002-03
Approval accorded to augment 7 workover rigs as
per existing contracts on immediate basis
Tender for charter-hiring of 4 additional rigs
under process
Offshore
Charter hiring of 4 additional Cantilever J/Up
rigs under process

43
Gas Flaring

Goal
To minimise Gas Flaring
Suggested Approach
Focus on assets where consumer base exists
Creation of necessary infrastructure on
fast-track

Contd
44
Gas Flaring

Decision
To minimize gas flaring.
Actions Taken
Focused group for Gas Flaring Control
Required infrastructure identified
Compressor procurement in process
Time-bound action plan to achieve Zero Gas Flaring

45
Exploratory drilling Backlog

Goal
To remove backlog in exploratory wells
Suggested Approach
Activity driven resource mobilization

Contd
46
Exploration drilling Backlog

Decision
To initiate time-bound plan for
procurement/up-gradation of the state-of- the-art
Drilling Rigs
Actions Taken
MOU with BHEL signed on 15.4.2002. Initially
contract awarded to BHEL for upgradation of 12
onshore rigs
Proposal submitted for acquisition of 3 offshore
jack up rigs

47
Technology

Goal
Technology for efficiency
Suggested Approach
Adoption of best-in-class technology
Monetization of idle Assets with technology
Strategic participation with technology leaders

Contd
48
Technology

Decision
Employing state-of-the-art and cost-effective
technologies.
Action Taken
Technology needs worked out in various areas of
operation

Contd
49
Technology

Decision
Improving operational efficiency using
best-in-class equipment and facilities and
continuous up-gradation of skills
Action Taken
Technology induction plan through alliances
discussed in Board in May2002. MOU under
finalization.

Contd
50
Technology - Seismic

Decisions
Procurement of additional state-of-the-art
Seismic Survey vessel
State-of the-art data acquisition, supported with
high computing capability for GG activities
Actions Taken
Under Procurement
1- Vessel for offshore Seismic survey
10 - Seismic Data Acquisition system
Upgradation of facilities at GEOPIC under process
Virtual Reality Centre (Third Eye) to be
commissioned in July 2002 at Mumbai

51
Technology - Drilling

Decision
ONGC to leverage state-of the-art technology like
Premium Bits, use of Drilling fluid technology
etc., for improving overall efficiency.
Actions Taken
Premium bits under use in all major fields 42
to 64
Efforts being made to augment drilling fluid
technology
Discussions with industry leaders

52
Technology - Drilling

Decision
To put in place a process to ensure quality
cementation
Actions Taken
IDT has developed light weight and ultra heavy
weight cement slurry for Mumbai high Cachar
project respectively
Project specific cementation technology worked out

53
Technology - GTL

Decision
To send a delegation to Sasol for firming up GTL
technology induction for utilization of Tripura
Gas.
Actions Taken
Sasol not interested to license on arms-length
basis
Desires participation in profitable ventures
Conditions for participation
Uncommitted gas reserve 20 TCF gas over 30
years
Gas price US0.50 per MMBTU
Capacity 100,000 bpd
Project benchmark for Sasol
ICB being floated to invite prospective partners
for setting up GTL project

54
OOR Scheme

Goal
Improved management of the existing Assets
Suggested Approach
Close Monitoring
De-bottlenecking revamping of facilities

Contd
55
OOR Scheme

Decision
To work-out time-bound action plan for SCADA
implementation.
Actions Taken
Offshore SCADA system scheduled to be upgraded by
June2004 under project PROMISE
Onshore SCADA system (GGS/ CTF level) planned
under Project PROMISE by June2003

Contd
56
OOR Scheme

Decision
De-bottlenecking revamping of facilities
Actions Taken
Assets identified the facilities requiring
de-bottlenecking. Structured approach being
adopted to revamp the facilities.
Recommendations of the consultant M/S Mckinsey
under project ACCEPT being implemented in Assam
Asset.
De-bottlenecking revamping of facilities
defined as KPA in Performance Contract signed
with Assets and Basins
Compliance of internal safety audits and third
party audit ensures phased de-bottlenecking and
revamping of facilities.

57
Infocom

Goal
Integrated IT solutions for efficiency
Projects under implementation
Project ICE
Project PROMISE
Project EPINET

Contd
58
Infocom

Present Status
Approval accorded to award contract on nomination
basis to M/S SAP India for implementation
30 Projects identified under Project PROMISE
under various stages of implementation.
First phase of Project EPINET implemented

59
Optimization of Offshore Services
Goal To improve and optimise offshore
services Suggested Approach Outsourcing of
offshore services through Joint Venture (JV)
Contd
60
Optimization of Offshore Services

Decisions
To select JV partner (s)
To prepare Feasibility Report
MOPNG, Ministry of Shipping Surface Transport
and Ministry of Defence to be informed about the
ONGCs need and policy regarding formation of JV
for Floating Services.
Actions Taken
Core team discussed JV formation with
SCI, GE Shipping, SEMAC, HSL, MDL, CSL, ICICI
Consultant being appointed for preparing
Feasibility Report.
Action in Hand

61
Process Simplification

Goal
To Streamline tender and contract processes
procedures for expeditious resource mobilization
Suggested Approach
To carry out Changes aiming at
reduction in number of tenders
selection of quality bidders
transparent bidding process

Contd
62
Process Simplification

Decisions
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.
Organization of proactive pre-bid conferences.
Actions Taken
Proposed revision in material procurement
provisions in BDP submitted for consideration
Web-site ongctendersonline.com launched. Tender
information being put on web.
Pre-bid conferences being organized on regular
basis

Contd
63
Process Simplification

Decisions
Annual Maintenance Contract (AMC) on life-cycle
concept basis be in-place
Payment within 15 days, LD levied strictly as per
the contract
Post contract issues should be appropriately
addressed at the Directors level
Actions Taken
AMC on life-cycle concept being incorporated as
standard clause in BEC.
Instructions issued to make payment within 15
days and imposition of LD as per contract. Agenda
under consideration of Executive Purchase
Committee (EPC) for further clarifications
Circular issued specifying authority dealing with
post contract issues.

Contd
64
Process Simplification

Decisions
Sampling/ Bonding of Chemicals to be streamlined
Charter-hiring of the Vessels on long-term basis
ONGC to put up a proposal to MOPNG for entering
into long-term contracts, wherever felt necessary
Actions Taken
Agenda related to streamline sampling/ bonding of
chemicals under consideration of Executive
Purchase Committee (EPC)
BEC approved by EPC for hiring of vessels for 3
years term. Tender being invited
DGSD is proposed to be appointed as consultant
for suggesting modalities for long-term contract.
Based on suggested approach proposal shall be
submitted to MOPNG

Contd
65
Process Simplification

Decision
Effective vendor rating systems be evolved.
Termination or Holiday in case of defaulting
vendors.
Action Taken
Vendor rating system established

66
Other issues
67
Direct Marketing

Decision
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.
Actions Taken
Comprehensive note put up to MOPNG in Feb2002
Issue discussed by Gas Linkage Committee(GLC) on
22.5.2002
GLC formed a committee to review guidelines for
allocation of such gas.

68
Indian Flag Vessels

Decision
The issues related to Indian Flag Vessels
including payment in foreign currency was
discussed and it was decided that a note be
submitted to the MOPNG
Action Taken
Action in Hand

69
Refinery products

Decision
To put up details regarding non-upliftment of
products from Tatipaka Refinery to the Additional
Secretary (MOPNG) for taking up the matter in
the sales meeting with refineries, scheduled for
18th Feb. 2002.
Action Taken
Comprehensive note put up to MOPNG in Feb2002

70
Price Purchase Preference

Decision
A proposal to be submitted to MOPNG to review
the instructions regarding Price Purchase
preference to the PSUs.
Actions Taken
Comprehensive note submitted in Feb2002
As per decision of the Board on 16.5.2002
comprehensive agenda under submission to Govt.
Notification issued by the Govt. in June2002
restoring Purchase Preference.

71
ILiTes

Decisions
To form disaster Management team at National
level - Indian Life Saver Teams (ILiTes)
Issue of tax exemption be examined for creating
ILiTes and modalities to flag the name of ONGC
with disaster management team be finalized.
Actions Taken
Consultant appointed
Action in hand

72
Project Saraswati

Decision
A proposal for exploitation of aquifers in areas
covering the ancient Saraswati River be brought
to the EC.
Actions Taken
Proposed approach paper discussed in EC on
25.4.2002
Process of identifying agencies/institutions for
engagement of consultant being finalized

73
Dry wells

Decision
Option to hand over existing dry wells which
cant be put on use to the Ground Water Boards be
examined.
Actions Taken
Feasibility w.r.t double casing, well
availability with ONGC, cost water requirement
in the area to be studied

74
Jatar Committee Report
75
Jatar Committee Report

Background
G-345 Well in Gandhar got fire on 30.10.2001 due
to theft attempt
Expert Committee constituted by MOPNG under the
Chairmanship of Maj.Gen (Retd.) S C N Jatar to
enquire the accident
Interim report was submitted by the Committee in
January2002
Findings of the report discussed in the 2nd
Strategy Meet, Feb 1-3, 2002.

Contd
76
Jatar Committee Report

Decisions
Promotion of the under-qualified people to E-4
level and designating them as Engineers be
re-looked.
14 days on/off pattern be reviewed with one rule
applicable to all work centers of ONGC. However,
a distinction be made between onshore and
offshore operations.
Actions in hand

Contd
77
Jatar Committee Report

Decision
A comprehensive review of Crisis Management Team
in terms of reporting, equipment, efficiency,
audit, training in a time bound manner
Actions Taken
Review of CMT carried out
RCMT at different locations established
CMT equipment identified and sourcing planned
To get services at the time of crisis - Rate
contract being finalized with a reputed company
Training exposure to CMT Operational crew
Floating Crisis Management Facility at Mumbai

Contd
78
Jatar Committee Report

Decision
All the well sites be fenced. However, if the
present design of fencing is inadequate a review
be made.
Head-Performance Management and Benchmarking be
asked to study measurement and accounting
practices.
Actions in Hand

79
3rd Strategy Meet Agenda Items
80
Agenda 3rd Strategy Meet
12.7.2002