ONGC Signs MoU with Ministry of P&NG for FY 2007-08

Oil & Natural Gas Corporation Ltd (ONGC) has announced that the Company has signed a Memorandum of Understanding (MoU) 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 March 29, 2007.

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

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ONGC MoU Targets for 2007-08 vis-a-vis Actual performance for 2006-07
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					2006-07		2007-08		% Increase /				
					Actuals*	MoU Targets	Decrease
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1.	Oil Production	ONGC		26.05		27.16	
	(MMT)		JV Share**	1.84		1.88			
			Total		27.89		29.04		104.12
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2.	Gas Production	ONGC		22.22		22.10	
	(BCM)		JV Share**	2.47		2.95			
			Total		24.69		25.05		101.47
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3.	Gas Dispatch	ONGC		18.02		17.26	
	(BCM)		JV Share**	2.33		2.66			
			Total		20.35		19.92		97.87
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4.	Value Added	ONGC		3.24		3.25		100.22	
	Products(MMT)
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* Figures are Provisional, subject to reconciliation
** ONGC Share of JV

A number of new Performance Parameters have been introduced in this (FY 2007-08) 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 2007-08 MoU has also doubled the weightage on subsidiary management (OVL and MRPL) from 2% to 4%.

Since the introduction of the MoU, the Company 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 2006-07 based on audited results.

Source : Equity Bulls

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