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ONGC VIDESH LIMITED (CIN: U74899DL1965GOI004343) DEENDAYAL URJA BHAWAN, PLOT NO. 5A- 5B, VASANT KUNJ, NELSON MANDELA MARG, NEW DELHI – 110070, INDIA
2019 - 2020
"This pa
ge [is]
intent
ionally
left bl
ank."
INDEX OF CONTENTS
Sl. No. PARTICULARS PAGE NO.
1 Vision & Mission of the Company 1
2 Company Information 3
3 Chairman’s Message 9
4 Notice of 55th Annual General Meeting of ONGC Videsh 13
5 Board’s Report 21 6 Management Discussion and Analysis Report 53
7 Corporate Governance Report 67
8 Secretarial Audit Report for the Financial year ended 31st March 2020 86
9 C&AG Comments – Standalone 90
10 Auditors’ Report - Standalone 92
11 Standalone Financial Statement for the year ended March 31,2020 109
12 C&AG Comments – Consolidated 219
13 Auditors’ Report - Consolidated 222
14 Consolidated Ind AS Financial Statement for the year ended March 31,2020 239
15 Route Map 373
Vision
To be a world-class exploration and production company providing energy security to the country.
Mission
By 2030, contribute 60 MMTPA of equity oil & gas.
Annual Report 2019 - 20 1 of 373
"This pa
ge [is]
intent
ionally
left bl
ank."
Annual Report 2019 - 20 2 of 373
COMPANY ONGC Videsh Limited CIN: U74899DL1965GOI004343 Registered Office Deendayal Urja Bhavan, Plot No. 5A-5B, Nelson Mandela Marg, Vasant Kunj, New Delhi 110070, India Website: www.ongcvidesh.com Phone: +91-11-26129344 Fax: +91-11-26129345, 26129346 Email: [email protected]
STATUTORY AUDITORS M/s Thakur, Vaidyanath Aiyar & Co.
Chartered Accountants Firm Reg. No. 000038N
M/s SPMR & Associates Chartered Accountants Firm Reg. No. 007578N
SECRETARIAL AUDITORS M/s SGS Associates Company Secretaries CP No. 1509
COMPANY SECRETARY Sh. Rajni Kant
BANKERS State Bank of India
MAJOR PROJECT’S LOCATIONS Block 06.1, Vietnam Block BM-SEAL-4, Brazil GPOC, South Sudan Block-32, Israel Block 5A, South Sudan Azeri, Chirag, Guneshli, Azerbaijan Sakhalin-1, Russia Block A-1, Myanmar Vankor, Russia Block A-3, Myanmar AFPC , Syria Lower Zakum Concession, UAE Block BC-10, Brazil Farzad - B, Iran Imperial Energy, Russia Block XXIV, Syria San Cristobal, Venezuela Rovuma Area 1, Mozambique Block 128, Vietnam Carabobo-1, Venezuela MECL, Colombia Contract Area 43, Libya Block RC-9, Colombia Block 8 (Renamed Block 20), Iraq Block RC-10, Colombia Block SS 04, Bangladesh Block SSJN-7, Colombia Block SS 09, Bangladesh Block CPO-5, Colombia Block B2, Myanmar Block GUA-OFF-2, Colombia Block EP3, Myanmar Block LLA-69, Colombia SHWE Offshore Pipeline Project, Myanmar Satpayev Block, Kazakhstan Onshore Gas Pipeline Project (SEAGPL), Myanmar BTC Pipeline, Azerbaijan
Annual Report 2019 - 20 3 of 373
(Rup
ees i
n M
illio
ns, U
nles
s oth
erw
ise st
ated
)C
onso
lidat
ed p
erfo
rman
ce a
t a
glan
ceIN
D A
SIN
D A
SIN
D A
SIN
D A
SIN
D A
S
2019
-20
2018
-19
2017
-18
2016
-17
2015
-16
2014
-15
2013
-14
2012
-13
2011
-12
2010
-11
PH
YSI
CA
LCr
ude
oil (
MM
T)(In
cludi
ng c
onde
nsat
e)9.
755
10.0
979.
353
8.43
45.
510
5.53
3
5.
486
4.34
3
6.21
4
6.
756
G
as (B
CM)
5.22
64.
736
4.81
14.
369
3.40
6
3.
341
2.87
1
2.
917
2.
539
2.69
2
FIN
AN
CIA
LIn
com
e fr
om O
pera
tions
(Net
)1,
69,6
54
1,
74,3
62
1,27
,871
1,
16,2
87
1,06
,355
1,
88,8
17
2,
18,2
25
1,
75,5
78
2,23
,473
1,
84,1
11
Oth
er N
on-o
pera
ting
Inco
me
2,17
1
1,
579
1,58
5
2,
144
5,34
1
2,
179
3,05
5
2,
650
1,
990
2,11
1
Tot
al R
even
ue1,
71,8
24
1,
75,9
41
1,29
,456
1,18
,431
1,
11,6
96
1,90
,996
2,21
,280
1,78
,228
2,
25,4
63
1,
86,2
23
Stat
utor
y Le
vies
12,7
71
13,1
49
10
,420
9,57
2
9,
606
28,6
39
42,0
37
36,0
38
65
,672
56,9
47
O
pera
ting
Exp
ense
s37
,755
45
,023
34,8
12
29
,761
31,7
06
55
,312
54
,167
40
,591
63,2
23
34
,948
Exc
hang
e Lo
ss/(
Gain
)5,
143
(4,9
72)
8,37
9
(4
,995
)
2,
756
(7,4
79)
(3,1
20)
(2,9
60)
1,
474
(815
)
Prof
it Be
fore
Inte
rest,
Dep
recia
tion
& T
ax (P
BID
T)1,
16,1
56
1,
22,7
41
75,8
45
84
,093
67,6
27
1,14
,524
1,28
,195
1,04
,559
95
,094
95
,143
Dep
recia
tion,
Dep
letio
n, A
mor
tisat
ion
and
Impa
irmen
t38
,975
40
,212
52,6
03
44
,400
47,1
19
59
,582
55
,204
37
,384
41,8
70
42
,683
Pro
fit
Bef
ore
Inte
rest
& T
ax (
PB
IT)
77,1
81
82,5
29
23,2
42
39,6
93
20,5
09
54,9
42
72,9
92
67,1
75
53
,224
52
,461
Fin
anci
al C
osts
Inte
rest
Paym
ents
13,1
71
17,2
98
17
,003
17,0
50
15
,146
24,7
68
4,06
5
2,
414
2,
970
3,53
1
Rece
ipts
(4,0
10)
(3,0
22)
(2,0
51)
(1,0
58)
(2,0
75)
493
96
2
2,06
5
911
48
8
N
et9,
161
14,2
76
14
,952
15,9
92
13
,072
24,2
75
3,10
3
34
9
2,
058
3,04
3
Pro
fit
bef
ore
Tax
an
d E
xcep
tion
al I
tem
s68
,020
68
,253
8,
290
23,7
02
7,43
7
30
,666
69
,888
66
,826
51,1
66
49
,418
Exc
eptio
nal i
tem
31,2
65
15,7
62
(2
,740
)
10
,063
47,1
67
-
-
-
-
-
Pro
fit
bef
ore
Tax
36,7
55
52,4
91
11,0
31
13
,639
(3
9,73
0)
30,6
66
69,8
88
66,8
26
51
,166
49,4
18
Co
rpor
ate
Tax
32,4
03
35,6
94
1,
234
6,10
1
(3
,329
)
12
,810
25
,571
27
,653
23,6
27
22
,048
Pro
fit
afte
r T
ax4,
352
16,7
97
9,79
6
7,
538
(36,
401)
17
,856
44
,317
39
,172
27,5
38
27,3
69
Pr
ofit
relat
ing
to m
inor
ity18
8-
(26)
(1
8)
(35)
(7
6)
(1,1
86)
(136
)
(119
)
32
7
464
Gro
up P
rofi
t af
ter
Tax
4,54
0
16
,823
9,
815
7,57
3
(3
6,32
5)
19,0
42
44,4
53
39,2
91
27
,212
26
,905
Div
iden
d5,
100
3,00
0
2,
100
-
-
-
-
-
-
-
Tax
on D
ivid
end
1,04
8
61
7
428
-
-
-
-
-
-
-
Sh
are
Capi
tal
1,50
,000
1,50
,000
1,
50,0
00
1,50
,000
1,
00,0
00
1,00
,000
1,00
,000
50,0
00
10
,000
10,0
00
N
et W
orth
(Equ
ity)
4,98
,807
4,87
,542
4,
64,3
04
4,57
,531
4,
42,5
47
4,33
,269
4,15
,488
2,91
,666
1,
99,4
11
1,45
,530
Lo
ng-te
rm B
orro
win
gs3,
71,2
06
3,
70,4
22
4,20
,520
3,
89,2
73
3,44
,790
3,
64,8
60
2,
16,0
81
1,
45,8
71
1,95
,161
2,
04,5
54
Wor
king
Cap
ital
1,43
9
8,
143
24,2
03
(1
7,86
4)
24,4
61
1,
440
(1,4
4,59
9)
18
,801
45,6
14
49
,047
Capi
tal E
mpl
oyed
5,00
,819
4,82
,245
4,
95,2
74
4,73
,925
5,
37,3
95
5,68
,581
3,69
,200
3,23
,859
2,
93,5
62
2,94
,194
In
tern
al Re
sour
ces G
ener
atio
n99
,246
1,
11,4
28
71,2
59
59
,162
78,2
93
1,
00,2
69
1,
29,4
16
68
,848
89,3
07
57
,578
Capi
tal E
xpen
ditu
re54
,349
58
,271
67,9
80
1,
76,1
70
64,7
02
71
,716
3,
53,5
73
1,
08,9
14
79,9
95
56
,502
Exp
endi
ture
on
Em
ploy
ees
2,86
5
2,
780
2,32
9
2,
135
1,89
2
4,
446
3,68
2
3,
193
2,
187
2,20
9
Num
ber o
f em
ploy
ees
290
30
9
319
34
0
339
32
1
313
27
9
24
6
233
FIN
AN
CIA
L P
ER
FO
RM
AN
CE
RA
TIO
SPB
IDT
to T
urno
ver (
%)
68
70
59
.31
72.3
2
63
.59
60.6
5
58
.74
59.5
5
42.5
5
51
.68
PB
DT
to T
urno
ver (
%)
63
62.2
1
47
.62
58.5
6
51
.30
47.8
0
57
.32
59.3
5
41.6
3
50
.02
Pr
ofit
Mar
gin
(%)-
incl.
exc
eptio
nal i
tem
s2.
68
9.65
7.
68
6.51
(3
4.15
)
10
.09
20.3
7
22
.38
12
.18
14.6
1
ROCE
(PBI
DT
to C
apita
l Em
ploy
ed) (
%)
23.1
9
25
.45
15.3
1
17
.74
12.5
8
20
.14
34.7
2
32
.29
32
.39
32.3
4
Net
Pro
fit to
Equ
ity (%
)- in
cl. e
xcep
tiona
l ite
ms
0.91
3.
45
2.11
1.
66
(8.2
1)
4.
40
10.7
0
13
.47
13
.65
18.4
9
-
B
AL
AN
CE
SH
EE
T R
AT
IOS
-
Cu
rren
t Rat
io1.
01
1.08
1.
31
0.83
1.
39
1.02
0.
40
1.17
1.63
1.
92
Deb
t Equ
ity R
atio
0.86
0.
87
0.98
0.
98
0.79
0.
84
0.52
0.
50
0.
98
1.41
D
ebto
rs T
urno
ver R
atio
(Day
s)17
29
44
49
40
57
65
10
4
48
79
-
PE
R S
HA
RE
DA
TA
Basic
Ear
ning
s Per
Sha
re (`
) 3.
03
11.2
2
6.
54
5.34
(3
1.40
)
19
.04
49.4
9
47
.06
76
.99
269.
05
D
ivid
end
(%)
66.0
8%30
.32%
30.5
7%26
.20%
-
-
-
-
-
-
Book
Valu
e Pe
r Sha
re (`
)33
2.54
32
5.03
30
9.54
30
5.02
44
2.55
43
3.27
41
5.49
58
3.33
1,99
4.11
1,
455.
30
-
Annu
al R
epor
t 201
9 - 2
04
of 3
73
(Rup
ees i
n M
illio
ns, U
nles
s oth
erw
ise st
ated
)
Stat
emen
t of
Con
solid
ated
In
com
e &
Ret
ain
ed e
arn
ings
IND
AS
IND
AS
IND
AS
IND
AS
IND
AS
2019
-20
2018
-19
2017
-18
2016
-17
2015
-16
2014
-15
2013
-14
2012
-13
2011
-12
2010
-11
RE
VE
NU
ES
Sale
sCr
ude
Oil
1,26
,613
1,23
,324
82
,546
79,8
35
76
,101
1,64
,932
2,02
,690
1,62
,366
2,
11,6
87
1,74
,081
N
atur
al G
as27
,217
21
,326
19,7
17
18
,905
20,3
47
18
,534
11
,916
11
,394
9,92
4
8,
280
Co
nden
sate
407
71
7
678
62
1
758
1,
445
1,98
8
2,
955
3,
189
2,23
3
Sub-
Tot
al1,
54,2
37
1,
45,3
67
1,
02,9
40
99
,362
97
,206
1,
84,9
11
2,
16,5
93
1,
76,7
15
2,24
,800
1,84
,594
Tr
aded
Pro
duct
s88
16
-
-
-
-
-
-
-
Sh
are
of p
rofit
of e
quity
acc
ount
ed in
veste
es, n
et o
f tax
14,1
82
28,0
26
23
,696
15,4
87
7,
684
-
-
-
-
O
ther
Ope
ratin
g Re
venu
e3,
627
2,37
2
2,
466
2,59
8
2,
582
5,58
9
3,
649
1,19
7
1,24
0
43
4
T
otal
Rev
enue
fro
m O
per
atio
ns (
Gro
ss)
1,72
,134
1,75
,781
1,
29,1
01
1,17
,447
1,
07,4
72
1,
90,5
00
2,
20,2
42
1,
77,9
12
2,26
,041
1,85
,027
L
ess:
VA
T2,
481
1,41
9
1,
230
1,16
0
1,
117
1,68
3
2,
017
2,33
4
2,56
8
91
6
T
otal
Rev
enue
fro
m O
per
atio
ns (
Net
)1,
69,6
54
1,
74,3
62
1,
27,8
71
1,16
,287
1,
06,3
55
1,
88,8
17
2,
18,2
25
1,
75,5
78
2,23
,473
1,84
,111
O
ther
Non
-ope
ratin
g In
com
e2,
171
1,57
9
1,
585
2,14
4
5,
341
2,17
9
3,
055
2,65
0
1,99
0
2,
111
T
otal
Rev
enue
s1,
71,8
24
1,
75,9
41
1,29
,456
1,18
,431
1,
11,6
96
1,90
,996
2,21
,280
1,78
,228
2,
25,4
63
1,
86,2
23
CO
ST &
EX
PE
NSE
SO
per
atin
g, S
ellin
g &
Gen
eral
Stat
utor
y Le
vies
(a) R
oyalt
ies12
,771
13
,130
10,2
899,
493
9,56
125
,372
35,2
1229
,115
57,5
7155
,156
(b) O
ther
Tax
es-
19
131
7845
3,26
76,
825
6,92
38,
101
1,79
1Su
b-to
tal (
a to
b)
12,7
71
13,1
4910
,420
9,57
29,
606
28,6
3942
,037
36,0
3865
,672
56,9
47A
ccre
tion
/ (D
ecre
tion)
in
stock
743
(7
1)
(260
)26
0(1
01)
1,02
4(1
,468
)14
9(6
32)
(121
)Pr
oduc
tion,
Tra
nspo
rtatio
n, S
ellin
g an
d D
istrib
utio
n E
xpen
ditu
re35
,004
31
,956
24,7
8027
,997
29,2
0243
,538
45,0
9235
,828
35,8
6632
,213
Prov
ision
s and
Writ
e-of
fs69
9
10,9
34
11
,709
1,39
83,
361
12,2
978,
210
2,91
227
,929
3,44
8A
djus
tmen
ts fo
r ove
rlift/
(und
erlif
t)(1
25)
(643
)
692
9(6
79)
(553
)50
354
6(4
14)
(283
)A
djus
tmen
ts re
latin
g to
Prio
r Per
iod
(Net
)-
-
-
- -
(1,2
13)
(421
)(5
01)
(73)
(351
)P
rofi
t B
efor
e D
epre
ciat
ion,
Int
eres
t &
Tax
1,22
,732
1,20
,617
82,1
1579
,194
70,3
061,
07,2
651,
27,3
271,
03,2
5697
,115
94,3
70D
epre
ciat
ion,
Dep
leti
on, A
mor
tisa
tion
and
Im
pair
men
t38
,975
40
,212
52,6
0344
,400
47,1
1959
,582
55,2
0437
,384
41,8
7042
,683
Tot
al C
ost
& E
xpen
ses
88,0
67
95,5
3799
,944
83,6
3688
,508
1,43
,313
1,49
,157
1,12
,356
1,70
,218
1,34
,535
Op
erat
ing
Inco
me
Bef
ore
Inte
rest
&T
ax83
,757
80
,405
29,5
1234
,795
23,1
8847
,683
72,1
2365
,872
55,2
4551
,688
Fin
anci
al C
osts
- E
xcha
nge
Loss
/ (G
ain)
5,14
3
(4
,972
)
8,
379
(4,9
95)
2,75
6(7
,479
)(3
,120
)(2
,960
)1,
474
(815
)In
tere
st
Paym
ents
13,1
71
17,2
98
17
,003
17,0
5015
,146
24,7
684,
065
2,41
42,
970
3,53
1Re
ceip
ts4,
010
-
(3,0
22)
(2,0
51)
(1,0
58)
(2,0
75)
493
962
2,06
591
148
8H
edgi
ng C
ost
1,43
4
2,
848
(2,1
09)
96(7
7)22
02,
251
1,65
754
742
N
et15
,738
12,1
5221
,221
11,0
9315
,751
17,0
162,
235
(953
)4,
079
2,27
0P
rofi
t be
fore
Tax
and
Ext
raor
din
ary
Item
s68
,020
68,2
538,
290
23,7
027,
437
30,6
6669
,888
66,8
2651
,166
49,4
18E
xcep
tiona
l ite
m31
,265
15
,762
(2,7
40)
10,0
6347
,167
- -
- -
Pro
fit
befo
re T
ax
36,7
5552
,491
11,0
3113
,639
(39,
730)
30,6
6669
,888
66,8
2651
,166
49,4
18Co
rpor
ate
Tax
( Net
)32
,403
35
,694
1,23
46,
101
(3,3
29)
12,8
1025
,571
27,6
5323
,627
22,0
48P
rofi
t af
ter
Tax
4,35
216
,797
9,79
67,
538
(36,
401)
17,8
5644
,317
39,1
7227
,538
27,3
69Pr
ofit
relat
ing
to m
inor
ity(1
88.2
4)
(26)
(1
8)(3
5)(7
6)(1
,186
)(1
36)
(119
)32
746
4G
roup
Pro
fit
afte
r T
ax4,
540
16,8
239,
815
7,57
3(3
6,32
5)19
,042
44,4
5339
,291
27,2
1226
,905
Prof
it &
Los
s Acc
ount
Bala
nce
b/f
46,6
36
36,9
53
36
,938
47,7
00-
1,22
,532
1,02
,077
Adj
ustm
ents
due
to c
hang
e in
shar
e ho
ldin
g /o
ther
adj
ustm
ent
-
-
-
-
-
-
-
Tran
sfer
to C
apita
l Red
empt
ion
Rese
rve
-
-
-
-
-
-
-
-
-
-
Oth
er c
ompr
ehen
sive
inco
me
arisi
ng fr
om re
mea
sure
men
t of d
efin
ed b
enef
it ob
ligat
ion,
net
of i
ncom
e ta
x
(
73)
(
7)(2
2)
12
-
-
-
-
-
-
D
ispos
al of
Non
-con
trolli
ng in
tere
st-
-
91
-
-
-
-
-
-
-
Tran
sfer
to G
ener
al Re
serv
e12
2
231
18
2
224
3,
547.
07
3,29
0
3,
837
2,64
5
1,87
6
2,
142
Tr
ansf
er to
Leg
al Re
serv
e-
6,
890
9,53
0
58
1
8,08
1.52
-
-
-
-
-
Tr
ansf
er to
Deb
entu
re R
edem
ptio
n Re
serv
e-
-
-
17
,482
6,76
3.42
23
,905
10
,381
4,
308
4,
319
4,30
8
Ret
ain
ed E
arn
ings
For
The
Yea
r50
,939
46
,636
36,9
53
36
,938
(54,
717)
(8
,152
)
30
,235
32
,339
1,43
,549
1,
22,5
32
Annu
al R
epor
t 201
9 - 2
05
of 3
73
(Rup
ees i
n M
illio
ns, U
nles
s oth
erw
ise st
ated
)ST
AT
EM
EN
T O
F C
ON
SOL
IDA
TE
D F
INA
NC
IAL
PO
SIT
ION
IND
AS
IND
AS
IND
AS
IND
AS
IND
AS
2019
-20
2018
-19
2017
-18
2016
-17
2015
-16
2014
-15
2013
-14
2012
-13
2011
-12
2010
-11
RE
SOU
RC
ES
A. O
wn
1. N
et W
orth
(
a) E
quity
i)Sha
re C
apita
l1,
50,0
00
1,
50,0
00
1,50
,000
1,
50,0
00
1,00
,000
1,
00,0
00
1,
00,0
00
50
,000
10,0
00
10
,000
ii)Re
serv
es &
Sur
plus
3,48
,807
3,37
,542
3,
14,3
04
3,07
,531
3,
42,5
47
3,33
,269
3,15
,488
2,41
,666
1,
89,4
11
1,35
,530
Su
b-T
otal
4,98
,807
4,87
,542
4,64
,304
4,57
,531
4,42
,547
4,33
,269
4,15
,488
2,91
,666
1,
99,4
11
1,45
,530
(b)
Les
s Misc
elane
ous E
xpen
ditu
re-
-
N
et W
orth
4,98
,807
4,87
,542
4,64
,304
4,57
,531
4,42
,547
4,33
,269
4,15
,488
2,91
,666
1,
99,4
11
1,45
,530
B
. L
ong-
term
Bor
row
ings
3,71
,206
3,70
,422
4,
20,5
20
3,89
,273
3,
44,7
90
3,64
,860
2,16
,081
1,45
,871
1,
95,1
61
2,04
,554
C
. D
efer
red
Tax
Lia
bili
ty (
Net
)1,
23,7
99
93
,780
65,0
15
71
,161
77,4
77
3,
371
7,50
6
5,
643
4,
983
8,35
3
D
. M
inor
ity
Inte
rest
16,8
79
15,4
78
14
,511
14,2
09
9,
297
7,82
0
8,
864
909
1,00
3
68
2
TO
TA
L R
ESO
UR
CE
S (
A+
B+
C+
D )
10,1
0,69
1
9,
67,2
22
9,
64,3
49
9,
32,1
74
8,
74,1
12
8,09
,319
6,47
,939
4,44
,088
4,
00,5
58
3,
59,1
19
DIS
PO
SIT
ION
OF
RE
SOU
RC
ES
A.
Non
-cu
rren
t as
sets
1.
Fix
ed A
sset
s( N
et)
i)
. Tan
gibl
e as
sets
19,7
10
15,0
66
15
,834
16,7
61
16
,917
1,29
,249
69,9
93
58,6
36
35
,590
42,3
04
ii)
Prod
ucin
g Pr
oper
ties
3,14
,537
3,21
,284
3,
26,6
54
3,38
,918
3,
42,1
28
2,42
,939
2,54
,849
1,80
,988
1,
44,2
36
1,36
,140
iii)
Inta
ngib
le as
sets
223
32
7
466
55
2
344
12
7
94
104
126
37
T
otal
Blo
ck C
apit
al3,
34,4
70
3,
36,6
77
3,
42,9
53
3,
56,2
31
3,
59,3
89
3,72
,315
3,24
,936
2,39
,728
1,
79,9
53
1,78
,480
2
. G
oodw
ill o
n co
nsol
idat
ion
1,33
,141
1,31
,658
1,
32,8
00
1,
32,6
78
1,
44,2
42
1,92
,344
1,80
,614
80,3
24
75
,045
86
,998
3. L
ong-
term
Loa
ns a
nd A
dvan
ces(
Exc
ludi
ng C
apit
al A
dvan
ce)
5,06
2
5,
657
3,80
9
7,
971
11,6
90
15
5
133
13
5
91
7
281
4. D
epos
it w
ith
Ban
k U
nd
er S
ite
Res
tora
tion
Fu
nd
Sch
eme
1,
314
958
72
8
556
39
4
10,9
80
7,72
8
5,
018
2,
927
107
5. O
ther
non
-cu
rren
t A
sset
s (E
xclu
din
g D
RE
)81
,855
48
,239
35
,813
32
,507
32
,041
64,4
20
46,8
14
10,6
19
17
,348
2,65
5
Su
bto
tal (
6)=
(1+
2+3+
4+5)
5,55
,842
5,23
,189
5,16
,102
5,
29,9
42
5,
47,7
55
6,
40,2
14
5,
60,2
26
3,
35,8
25
2,76
,190
2,
68,5
22
7. L
ess
Non
-cu
rren
t L
iabi
litie
s a
. Oth
er L
ong
Term
Liab
ilitie
s20
5
142
156
145
122
88
4
10
8
82
-
b
. Lib
ility
for A
band
onm
ent C
ost
49,9
27
40
,845
37,6
86
35
,791
33,1
99
71
,066
46
,251
30,2
38
27
,609
22,8
61
c
Lon
g Te
rm P
rovi
sions
6,33
1
8,
100
7,
189
2,
217
1,
500
1,
919
172
42
2
55
1
513
Sub
tota
l (7)
56,4
63
49,0
88
45,0
31
38,1
53
34,8
21
73
,072
46
,427
30
,768
28,2
42
23,3
74
N
et N
on C
urr
ent
Ass
et (
A)=
(6)-
(7)
4,99
,379
4,74
,101
4,
71,0
71
4,91
,789
5,12
,934
5,67
,142
5,13
,799
3,05
,057
2,
47,9
48
2,
45,1
47
B.
Net
Wor
king
Cap
ital
1.
Cu
rren
t A
sset
s
ii) I
nven
torie
s9,
345
10,9
54
10
,655
10,1
00
10
,142
8,90
5
8,
716
5,87
6
5,73
3
4,
699
iii)
Trad
e Re
ceiv
ables
8,06
9
13
,635
15,3
48
15
,554
11,5
82
29
,261
38
,604
49
,988
29,6
15
40
,044
iv
) Ca
sh &
Cas
h eq
uiva
lents
40,7
90
33,2
17
13
,882
8,24
0
4,
631
23,8
29
22,3
53
44,5
86
51
,528
36,9
98
v
) Sh
ort-t
erm
Loa
ns &
Adv
ance
s 2,
472
2,26
7
2,
171
1,34
8
97
4,87
6
4,
307
5,57
5
8,22
7
4,
485
v
i) O
ther
s Cur
rent
Ass
ets (
Exc
ludi
ng D
RE)
51,2
57
46,6
12
60
,088
53,6
81
60
,848
26,4
69
23,2
78
25,9
45
22
,497
16,2
61
S
ub-T
otal
1,11
,933
1,06
,686
1,02
,145
88
,922
87
,300
93
,340
97
,258
1,
31,9
69
1,17
,600
1,
02,4
86
Less
2.
Cu
rren
t L
iab
iliti
es
i) S
hort-
term
bor
row
ings
58,7
61
51,5
74
34
,879
60,4
44
5,
136
3,35
5
1,
34,3
93
48
,863
623
33
1
ii) T
rade
pay
ables
24,8
50
23,6
38
21
,610
23,2
25
36
,963
66,2
08
37,8
81
25,8
65
25
,782
19,7
28
iii)
Oth
er c
urre
nt li
abili
ties
24,1
20
20,7
83
18
,345
21,4
11
19
,021
22,2
70
69,4
56
38,2
41
45
,392
33,3
65
i
v) S
hort-
term
pro
visio
ns2,
762
2,54
7
3,
108
1,70
7
1,
719
68
127
19
9
18
9
16
S
ub-T
otal
1,10
,493
98,5
42
77,9
42
1,06
,786
62,8
39
91,9
00
2,41
,857
1,13
,168
71,9
8653
,440
N
et W
orki
ng C
apit
al1,
439
8,14
3
24
,203
(1
7,86
4)
24,4
61
1,44
0
(1
,44,
599)
18,8
0145
,614
49,0
47D
. C
apit
al E
mpl
oyed
5,00
,819
4,82
,245
4,95
,274
4,73
,925
5,37
,395
5,68
,581
3,69
,200
3,23
,859
2,
93,5
62
2,
94,1
94
E I
nves
tmen
ts2,
22,9
85
2,
50,1
65
2,
54,7
63
2,
38,3
15
1,
00,2
41
i)
Non
-cur
rent
Inve
stm
ents
2,22
,985
2,50
,165
2,
54,7
63
2,38
,315
1,
00,2
41
ii)
Cur
rent
Inve
stm
ents
-
-
-
-
-
3
. C
apit
al W
orks
in P
rogr
ess
(In
clu
din
g C
apit
al A
dva
nce
)63
,555
34
,827
27
,540
27
,773
43
,009
1,
87,6
56
2,
35,7
99
88
,588
76,2
56
40,0
18
4
. E
xplo
rato
ry/
Dev
elop
men
t W
ells
in P
rogr
ess
2,23
,333
1
,99,
986
1,8
6,77
2
1
,92,
162
1,9
3,46
7 53
,082
42,9
39
31,6
42
30
,740
24
,907
-
T
OT
AL
DIS
PO
SIT
ION
(A
+B
)10
,10,
691
9,67
,222
9,64
,349
9,32
,174
8,74
,112
8,
09,3
19
6,
47,9
39
4,
44,0
88
4,00
,558
3,59
,119
NE
T PR
OFI
T/N
ET
SALE
S (%
)0.
03
0.12
0.
10
0.08
(0
.38)
0.10
0.
21
0.22
0.12
N
ET
SALE
S/CA
PITA
L E
MPL
OY
ED
(RA
TIO
)0.
30
0.30
0.
21
0.21
0.
18
0.33
0.
59
0.55
0.77
LO
NG
TE
RM D
EBT
/NE
T W
ORT
H (R
ATI
O)
0.74
0.
76
0.91
0.
85
0.78
0.
84
0.52
0.
50
0.
98
SALA
RY &
WA
GE
S TO
SA
LES
TURN
OV
ER
0.02
0.
02
0.02
0.
02
0.02
0.
02
0.02
0.
02
0.
01
EA
RNIN
G P
ER
SHA
RE (I
N `
)3.
03
11.2
2
6.
54
5.34
(3
1.40
)
19
.04
49.4
9
47
.06
76
.99
DE
BT E
QU
ITY
RA
TIO
0.86
0.
87
0.98
0.
98
0.79
0.
84
0.52
0.
50
0.
98
NE
T PR
OFI
T/N
ET
WO
RTH
0.01
0.
03
0.02
0.
02
(0.0
8)
0.
04
0.11
0.
13
0.
14
Annu
al R
epor
t 201
9 - 2
06
of 3
73
PRODUCTION OF OIL AND GAS 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20Crude oil (MMT) (including condensate)Gas (BCM)TOTAL PRODUCTION (MMT) 9.448 8.753 7.260 8.357 8.874 8.916 12.803 14.164 14.833 14.981
CAGR 0% -4% -8% -3% -1% -1% 4% 5% 5% 5%
NET WORTH (EQUITY) 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20Net Worth (` million)
CAGR 0% 17% 26% 30% 24% 20% 18% 16% 14% 13%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20TOTAL INCOME ( ` million)
CAGR 0% 10% -1% 4% 1% -8% -6% -4% -1% -1%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20NET PROFIT ( `̀ million) 26,905 27,212 39,291 44,453 19,042 36,325-
26,905 26,905 26,905 26,905 26,905 26,905 26,905 26,905 26,905 26,905CAGR 0% 1% 13% 13% -7% - -17% -12% -5% -16%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20EPS ( `̀ per Share)
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20Book Value ( `̀ per Share)
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20ROCE (%)
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20Debt/ Equity Ratio
Annual Report 2019 - 20 7 of 373
6.756 6.214 4.343 5.486 5.533 5.510 8.434 9.353 10.097 9.755
2.692 2.539 2.917 2.871 3.341 3.406
4.369 4.811 4.736 5.226
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Crude oil (MMT) (including condensate) Gas (BCM)
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Net Worth (` million)
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
TOTAL INCOME ( ` million)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
NET PROFIT ( ` million)
269.05
76.99 47.06 49.49 19.04
(31.40)5.34 6.54 11.22 3.03
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
EPS ( ` per Share)
1,455.30 1,994.11
583.33 415.49 433.27 442.55 305.02 309.54 325.03 332.54
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Book Value ( ` per Share)
32.34 32.39 32.29 34.72
20.14 12.58
17.74 15.31
25.45 23.19
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
ROCE (%)
1.41
0.98
0.50 0.52 0.84 0.79
0.98 0.98 0.87 0.86
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Debt/ Equity Ratio
Annual Report 2019 - 20 8 of 373
Address of the Chairman at 55th Annual General Meeting of the Company Dear Shareholders, It gives me immense pleasure to welcome you all, on behalf of the Board of Directors, to the 55th Annual General Meeting of ONGC Videsh Limited. The Annual Report of the Company for the Financial Year ending 31st March 2020, along with the Board’s Report, Audited Annual Accounts, Auditors’ Report and Management Discussion & Analysis Report are already in your hands. With your permission, I consider them to be read. To begin with, let me spend a few minutes briefly outlining the global industry environment during the year: Industry Scenario: We are experiencing an unprecedented time in the oil industry. After a sharp fall towards the end of 2018, crude oil prices in 2019 started on a positive note recovering some losses. Brent price increased to above US$60/barrel with many analysts now expecting another year of sustained price volatility driven by a wide uncertainty pertaining to global supply and demand trends. In FY’ 20, this volatility was absent for the major part of the year. Dated Brent, the predominant Industry Benchmark for physical crude east of the Atlantic, averaged US$ 71/barrel in April 2019, and US$ 68/barrel in December 2019; over a period of nine months it displayed a change of a little over 4%, indicating a stability between producer and consumer aspirations, and convergence of demand and supply, that each side strived for. This stability was not disrupted even after attack on the Abqaiq facilities of Saudi Arabia, and markets quickly recovered from the temporary supply disruption. However, some major geopolitical events and the return of previously curtailed U.S. shale production weighed on the price of oil during the year. The start of Coronavirus induced global pandemic during the last quarter impacted oil markets severely because it forced halt industrial production, and stopped people and goods from moving around, dealing a heavy blow to demand for transport fuels.
Despite production caps across OPEC and beyond, and despite the number of production outages, benchmark prices have stayed range-bound below what oil-reliant OPEC economies consider a good price for their product. Markets reaction to the impacts of OPEC+ negotiations and containment measures put in place by countries to curb the Coronavirus outbreak, such as lockdowns across Europe, America, Japan, and Middle East, was to go into a free fall. Prices fell to US$35/barrel by 9th March, to go down to
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US$17/barrel by the first week of April. Oil reached its lowest price in two decades of US$13/barrel on 21st April, with the expiry of May futures pushing prices for a brief moment in negative territory, making headlines around the world.
Though the full impact of COVID-19 manifested itself after the end of the FY’20 fiscal, its overarching impact on future trajectory of the oil and gas industry would be keenly watched.
With countries on lockdown there is significantly less of all activities, and the demand for oil and gas has fallen drastically. The International Energy Agency reported that oil demand is likely to decrease by 23.1 million bpd in Q2 of FY’ 21. The oil and gas sector has seen an imbalance of oversupply and less demand, further exacerbating the price crash. This has trickled down and impacted a number of sectors including the industrial, chemical and automotive sectors.
This has also caused a liquid storage crisis, with many facilities reaching maximum capacity. Oil storage has gotten so bad that around April 2020 producers were literally paying buyers to take the oil deliveries. Oil companies have delayed LNG project constructions.
The imminent impact of this industry crisis is that for oil-producing companies and countries, revenues and cash flows are drying up. With lower revenue generation, capital investment is halted, and companies requiring re-financing of existing debt find themselves countering high yield rate. Companies are delaying new projects and cutting expenditure at existing operations, while dividend payments are being reduced or suspended. Industry-wise capex spends are estimated at US$ 317 billion for 2019; these are expected to reduce by about US$ 85 billion in 2020, in view of deferrals and rationalizations across the boards. Oil majors and shale-focused independents are leading this reduction in capex; however, NOCs and Global independents have also given guidance of capex reduction, and it will be a strong area of emphasis in recalibrating their forward plans in view of pandemic.
From consumption standpoint, the ongoing pandemic also brings about a systemic behavioral change in how consumers and economies approach business. The long-term effects will be change in social interactions pronounced by the dilution of the concept of office, reduced in-person face-to-face business meetings, hence less travel and less demand for public and personal transport, and reorientation of supply chains nearer to the market to reduce dependence on supply disruptions.
However the lockdowns have eased in recent times and business activities are on the path of resumption. Governments have shored up medical infrastructure while simultaneously going in for a calibrated opening of their economies. Many oil and gas
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companies are implementing emergency measures to try and reduce the financial impact. On the oil front, the OPEC plus group of countries reached an agreement on April 12 2020 and pledged to cut their production by 9.7 Million Barrels per day in May and June, 7.7 Million Barrels per day for another six months, and then 5.8 Million Barrels per day for a further 16 months. It is the largest output cut since OPEC was founded 60 years ago. Towards the end of June, the members met again and agreed to extend the production cuts of May and June to July, and also to take a considered view of extending such cuts in August also if required. The combination of the above two factors have helped revive the oil prices, with oil prices averaging US$ 43/ barrel in the first week of July. Rystad Energy estimates an absolute oil demand of 89 Million Barrels per day for 2020 and 96-97 Million Barrels per day for 2021. All this portends towards an ever-tightening oil market throughout 2020, with a balance possible in Dec-20. Your company is aware of this churn in the industry and is critically reviewing value propositions in tandem with the shifting industry dynamics.
Performance: I would now like to take you through your Company’s Results. Significant performance highlights since last Annual General Meeting are as under: Your Company has produced approx. 285,260 barrels of oil and oil equivalent gas per day during FY’20 and has total oil and gas (2P) reserves of about 586.907 MMTOE as on 1st
April 2020. Your Company's share of proved reserves as on 1st April 2020 stood at 340.449 MMTOE as compared to 345.777 MMTOE as against previous year. During FY’20, there has been an increase in overall oil and gas production by 1.0% (where Oil was 3.4% less and Gas was 10.3 % more) as compared to previous fiscal year. On the financial front, your Company has made a profit of ₹ 4,540 million as compared to profit of ₹ 16,823 million during previous year. The decline in profitability was mainly on account of lower crude oil price and impairment. Your Company's consolidated net worth has increased to ₹ 4,98,807 Million as on 31st March, 2020 as compared to ₹ 4,87,542 Million as on 31st March, 2019. Corporate Governance: Your Company is compliant with all applicable provisions of the Companies Act, 2013 and DPE Guidelines on Corporate Governance, 2010. Your Company is implementing the
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tenets of Corporate Governance in letter and spirit. Your Company accords highest importance to transparency, accountability and equity in all facets of its operation. International Alliances: Your Company has entered into significant Memorandum of Understanding (MoU) with Rosneft Russia during the year to strengthen its alliance with other like-minded global partners and shall continue to engage in more such alliances. Acknowledgements: Before I conclude, I express my gratitude to esteemed shareholders, my colleagues on the Board of Directors and to all other stake holders for their valuable support, advice, cooperation and unstinted support and trust placed in the Company and look forward to their continued support. I am also thankful for the whole- hearted support received from ONGC, our parent company and Ministry of Petroleum & Natural Gas, other Ministries, Departments, Regulatory authorities and Agencies of the Government of India and the various State Governments. I place on record our appreciation to our joint venture partners and vendors for their cooperation. I also place on record our appreciation to all the Regulatory authorities in foreign countries who provided support in our efforts. I, on behalf of the entire Board of Directors sincerely place my appreciation for the excellent work done by all the employees at all levels of the Company, and applaud their commitment and hard work that has helped in delivering another successful year for the Company. I look forward to your continued support in this journey and I am confident that with its sustainable track record and global reputation, your Company will achieve new heights of success by effectively harnessing new growth opportunities.
With best compliments,
(Shashi Shanker) Chairman
Dated: 2nd September, 2020 Place: New Delhi
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ONGC Videsh Limited CIN: U74899DL1965GOI004343 Website : www.ongcvidesh.in
Deendayal Urja Bhavan, Plot No. 5A- 5B, Vasant Kunj, Nelson Mandela Marg, New Delhi-110070 NOTICE
NOTICE is hereby given that the 55th Annual General Meeting of the members of ONGC Videsh Limited will be held on Monday, the 07th day of September, 2020 at 17:00 Hours in the Board Room at 5th Floor, Tower B, Deendayal Urja Bhawan, Plot No. 5A – 5B, Vasant Kunj, Nelson Mandela Marg, New Delhi-110070 to transact the following businesses: ORDINARY BUSINESS To consider and, if thought fit, to pass, the following resolutions as Ordinary Resolutions:
1. To receive, consider and adopt the audited financial statements (Standalone and Consolidated) of the Company for the financial year ended 31st March, 2020, together with the Reports of the Board of Directors and Statutory Auditors thereon and comments of the Comptroller & Auditor General of India, in terms of Section 143(6) of the Companies Act, 2013.
2. To declare dividend for the financial year ended 31st March 2020.
3. To appoint Shri Shashi Shanker (DIN: 06447938) under Section 152 of Companies Act 2013, who retires by rotation at the meeting and being eligible offers himself for re-appointment.
4. To authorize Board of Directors of the Company to fix the remuneration of the Joint Statutory Auditors of
the Company for the Financial Year 2020-21 on recommendation of Audit Committee in terms of the provision of Section 142 of the Companies Act, 2013 and to pass the following resolution, with or without modification(s), as Ordinary Resolution:
“RESOLVED THAT the Board of Directors of the Company be and is hereby authorized to decide and fix the remuneration of Joint Statutory Auditors of the Company for the Financial Year 2020-21, as may be deemed reasonable by the Board.”
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BOARD’S REPORT DEAR MEMBERS, It gives me immense pleasure in presenting before you, on behalf of the Board of Directors of your Company, the 55th Annual Report on the business and operations of ONGC Videsh Ltd. (ONGC Videsh) for the financial year ended 31st March, 2020, together with the Annual Financial Statements, the Auditors’ Report thereon and the comments on the Accounts by the Comptroller and Auditor General of India (C&AG). 1. PERFORMANCE HIGHLIGHTS
ONGC Videsh has produced approx. 285,260 barrels of oil and oil equivalent gas per day during FY’20 and has total oil and gas (2P) reserves of about 586.907 MMtoe as on 1st April 2020. During FY’20, there has been an increase in overall oil and gas production by 1.0% (where Oil 3.4% less and Gas 10.3 % more) as compared to previous fiscal year FY’19. ONGC Videsh’s share in production of oil and oil equivalent gas (O+OEG), together with its wholly-owned subsidiaries, ONGC Nile Ganga B.V., ONGC Amazon Alaknanda Limited, Imperial Energy Limited, Carabobo One AB and ONGC Videsh Singapore Pte. Ltd. was 14.981 MMtoe during FY’20 as compared to 14.833 MMtoe during FY’19. The overall oil production decreased from 10.097 MMt during FY’19 to 9.755 MMt during FY’20 (3.4% less) and gas production increased from 4.736 BCM during FY’19 to 5.226 BCM during FY’20 (10.3% more). During FY’20, the Company has made a profit of ₹ 4540.16 million as compared to profit of ₹ 16,822.78 million during previous fiscal year FY’19.
2. FINANCIAL RESULTS A Consolidated Financial Statements
Highlights (₹ in million) Particulars 2019-20 2018-19
Total Income 1,75,834 1,78,964 Expenditure 1,39,079 1,26,473 Profit/ (Loss) before tax 36,755 52,491 Provision for Tax (including deferred and earlier period tax) 32,403 35,694 Share of Profit (minority Interest) (188) (26) Profit/ (Loss) After Tax 4,540 16,823 Paid up Equity Share Capital 1,50,000 1,50,000 Net Worth 4,98,807 4,87,542 Earnings per share of ₹ 100 each (figure in ₹) Basic 3.03 11.22 Earnings per share of ₹ 100 each (figure in ₹) Diluted 3.03 11.22
B Standalone Financial Statements: Highlights (₹ in million)
Particulars 2019-20 2018-19 Total Income 1,33,132 1,25,936 Expenditure 1,70,112 75,048 Profit/ (Loss) before tax (36,980) 50,888 Provision for Tax (including deferred and earlier period tax) 35,664 37,620 Profit/ (Loss) After Tax (72,644) 13,268
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Transfer to General Reserve - - Transfer to Debenture Redemption Reserve* - - Paid up Equity Share capital 1,50,000 1,50,000 Net Worth 3,34,869 3,36,073 Earnings per share of ₹ 100 each (figure in ₹) Basic (48.43) 8.85 Earnings per share of ₹100 each (figure in ₹) Diluted (48.43) 8.85
*Includes transfer from General Reserve
C DIVIDEND Your Directors have recommended dividend of ₹2.00 per share amounting to ₹ 3,000 million for the financial year 2019-20.
D TRANSFER TO RESERVES FOR THE PURPOSE OF DECLARATION OF DIVIDEND The Board of your Company has decided not to transfer any amount to the General Reserves for the purpose of Declaration of dividend for the financial year 2019-20.
E MARKET BORROWINGS 1. Details of debentures issued in the domestic market:
Description Amount (₹) in millions
Drawdown date
Maturity date
Term (Year)
Purpose
8.54% Unsecured non-convertible redeemable Debenture Series II
3,700 6 January 2010
6 January 2020
10 To Partly refinance the Commercial Papers issued to fund the acquisition of Imperial Energy Corporation Plc., United Kingdom.
The Debenture Series was paid along with interest thereon on 6thJanuary 2020. There are no other outstanding borrowings in domestic market as on 31st March 2020. Borrowings of your Company (including subsidiary) from overseas markets:
Description Amount (USD/ Euro/ JPY) in millions
Drawdown date
Maturity date
Term (Year)
Purpose
USD 1,775* million syndicated bank loan facility * Prepayment of USD 1000 Million during the year
775 27 November
2015
27 November
2020
5 Term loan to prepay and refinance USD 1,775 million loan taken in February 2014 to partly finance acquisition of 10% Participating Interest in Rovuma Area-1 Project, Mozambique.
USD 1,000 million syndicated bank loan facility
1000 30 March 2020
30 March 2025
5 Term loan to part prepay and refinance USD 1,775 million loan taken in November 2015 to prepay and refinance USD 1,775 million loan taken in February 2014 to partly finance acquisition of 10%
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Participating Interest in Rovuma Area-1 Project, Mozambique
USD 500 million syndicated bank loan facility
500 12 July 2019
12 July 2024
5 Term loan to partly refinance USD 750 million Bond (matured in July 2019) issued in FY'14 to refinance part of bridge loan taken in FY’14 for acquisition of 6% Participating Interest in Rovuma Area-1 Project, Mozambique.
2.75% EUR 525 million unsecured Euro Bonds
525 15 July 2014
15 July 2021
7 To refinance part of bridge loan taken in FY'14 to partly finance acquisition of 10% Participating Interest in Rovuma Area-1 Project, Mozambique.
2.875% USD 400 million Bonds
400 27 July 2016
27 January 2022
5-1/2 To refinance part of bridge loan taken for acquisition of 15% shares in JSC Vankorneft, Russia.
3.75% USD 500 million Bonds
500 7 May 2013 7 May 2023
10 To refinance bridge loan taken in FY'13 for acquisition of Participating Interest in ACG, Project in Azerbaijan.
4.625% USD 750 million Bonds
750 15 July 2014
15 July 2024
10 To refinance bridge loan taken in FY'14 for acquisition of 6% Participating Interest in Rovuma Area-1 Project, Mozambique.
3.75% USD 600 million Bonds
600
27 July 2016
27 July 2026
10 To refinance part of bridge loan taken for acquisition of 15% shares in JSC Vankorneft, Russia.
USD 500 million Term loan
196.7 26 April 2017
In 5 equal instalments falling 15, 27, 39, 51 and 60 months from the drawdown date
5 To refinance part of bridge loan taken for acquisition of 11% shares in JSC Vankorneft, Russia.
JPY 38 billion Term loan
38000 26 April 2017
In 3 equal instalments falling due at the end of years 5, 6 and 7 from the
7 To refinance part of bridge loan taken for acquisition of 11% shares in JSC Vankorneft, Russia.
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drawdown date.
3. RESERVES
PARTICULARS As on 31st March 2020 As on 31st March 2019 a. 1P Reserves (Proved)* Oil (Including Condensate) (In MMT) 174.037 187.199 Gas (In BCM) 166.412 158.578 Total 1P Reserves (In MMTOE) 340.449 345.777 b. 2P Reserves (Proved + Probable) Oil (Including Condensate) (In MMT) 238.992 340.359 Gas (In BCM) 347.915 335.362 Total 2P Reserves (In MMTOE) 586.907 675.721 c. 3P Reserves (Proved + Probable+ Possible) Oil (Including Condensate) (In MMT) 251.052 355.488 Gas (In BCM) 360.887 351.187 Total 3P Reserves (In MMTOE) 611.94 706.675
*Includes Mozambique (Developing Asset) and CPO-5 – Colombia (Discovered Asset) as compared to Note 51.1 of Notes to the Consolidated financial statements for the year ended March 31, 2019 and 2020.
4. NEW ACQUISITIONS: No new acquisitions have been made during the year.
5. PRODUCING ASSETS
5.1 Block 06.1, Vietnam Block 06.1 is an offshore Block located 370 km southeast of Vung Tau on the southern Vietnamese coast with an area of 955 SKM. The exploration License for Block 06.1 was acquired by your Company in 1988. The present Partners are - ONGC Videsh 45%, Rosneft Vietnam B.V. 35% (Operator) and Petro Vietnam 20%. Commercial production from Lan Tay field in the Block started in January, 2003. Development of Lan Do field in the Block was completed during FY’13 with commencement of first gas production from 2 wells on 7thOctober 2012. Your Company’s share of condensate and oil equivalent gas production from the block was 1.859 MMtoe during FY’20 as compared to 1.566 MMtoe during FY’19. PLD Field Development and Lan Do Infill Project (phase-IV) were completed successfully, as per the schedule and the first gas was achieved on 28th October 2018. A non-binding Memorandum of Understanding (MOU) has been signed among ONGC Videsh, Rosneft Vietnam and PVN relating to further exploration activities in and under Block 06.1 PSC for exploration in Clastics Prospects. Drilling of exploratory well (PLDCC-1X-ST1) in Oct-2019 resulted in gas discovery in T20 and T30.1 reservoirs. Appraisal drilling is planned for 2020. Your Company’s share of cumulative investment in the block was ₹ 28,924.8 million (USD 558.57 million)) till 31st
March, 2020.
5.2 Sakhalin-I, Russia
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Sakhalin-1 is a large oil and gas field in the Far East offshore in Russia, spread over an area of approx. 1,146 sq km. ONGC Videsh acquired 20% stake in the field in July, 2001. Your Company holds 20% PI in the field while ExxonMobil holds 30% PI (Operator); SODECO, a consortium of Japanese companies’ holds 30% and remaining 20% PI is held by Rosneft, the Russian National Oil Company. The project includes three offshore fields - Chayvo, Odoptu and ArkutunDagi. The first phase of Sakhalin-1 Chayvo field was developed and production started in October, 2005. Odoptu first stage production started in September, 2010. First oil from the third field, ArkutunDagi started on 4th January, 2015. After extension, Production Sharing Agreement (PSA) has validity till December 3, 2051. Your Company’s share of oil and oil equivalent gas production from the project was 3.172 MMtoe during FY’20 as compared to 3.111 MMtoe during FY’19. Your Company’s share of investment in the project was ₹ 389,086.0 million (USD 7,508.91 million) till 31st March, 2020.
5.3 Greater Pioneer Operating Company (GPOC), South Sudan Your Company holds 25% PI in the Project comprising Blocks 1,2& 4 in South Sudan through ONGBV, The project is jointly operated by all partners through a Joint Operating Company ‘Greater Pioneer Operating Company’ (GPOC) registered in Mauritius. Other partners in the project are CNPC (40%), Petronas (30%) and Nilepet (5%). Your Company’s share in oil production from GPOC was 0.564 MMT during FY’20 as compared to 0.131 MMT during FY’19. The cumulative investment in the GPOC after bifurcation from GNPOC, Sudan was ₹ 1,628.4 million (USD 26.22 million) till 31st March, 2020.
5.4 Sudd Petroleum Operating Company (SPOC), South Sudan Your Company holds 24.125% PI in Block 5A in South Sudan which was acquired on 12th May, 2004. The other partners in the Block are Petronas (67.875% PI) of Malaysia and Nilepet of South Sudan (8% PI). Block 5A is jointly operated by all partners through a Joint Operating Company-Sudd Petroleum Operating Company (SPOC). Due to security reasons the oil production activities were under shutdown since December 2013. The security and technical assessment was carried out in the year 2019 and resumption activities in the Block are being initiated. The Ministry of Petroleum, South Sudan has granted extension of Block 5A EPSA from the year 2024 to 2037. There was no production from Block 5A, South Sudan during FY’20 due to shut down in the fields. The cumulative investment in the project was about ₹ 20,416.4 million (USD 460.30) million till 31st March, 2020.
5.5 San Cristobal Project , Venezuela Your Company signed an agreement with Corporación Venezolana del Petróleo S.A. (CVP), a subsidiary of Petróleos de Venezuela S.A. (PdVSA) on 8th April, 2008 acquiring 40% PI in San Cristobal Project, Venezuela. San Cristobal project covers an area of 160.18 Sq. Km in the Zuata Subdivision of proliferous Orinoco Heavy Oil belt in Venezuela. The project is operated jointly by your Company and PdVSA through a Joint Venture Company (JVC) named as “PetroleraIndoVenezolana SA” (PIVSA). CVP and “PdVSA Social” jointly hold 60% equity in JVC and your Company holds 40% equity through ONGC Nile Ganga (San Cristobal) BV, a wholly owned subsidiary of ONGC Nile Ganga B.V. Your Company had received its dividend of USD 56.224 million for 2008. ONGC Videsh and PdVSA through their relevant subsidiaries signed two definitive agreements for facilitating redevelopment of the San Cristobal joint venture project in Venezuela on 4th November 2016. The agreements
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provided for mechanism to liquidate the outstanding dividends from PIVSA (USD 537.63 million) while at the same time, your Company needs to obtain long term financing (USD 318 million) for capital investments for implementing the Remediation Plan of the Project. Under these agreements, your Company has received part of the outstanding dividend of USD 124.8 million till 31st March, 2020. During FY’20, your Company’s share of oil and oil equivalent gas production was 0.175 MMtoe as compared to 0.286 MMtoe during FY’19. Your Company’s share of gross investment in the project was ₹28,791.9 million (USD 528.55 million million) till 31st March, 2020.
5.6 Imperial Energy, Russia Your Company acquired Imperial Energy Corporation Plc., on 13th January 2009 at a total cost of USD 2.1 billion. Imperial’s interests currently comprise 10 E&P license blocks in the Tomsk region with a total licensed area of 11,038 square kilometres. The Production licenses were granted to the Company during 2005 to 2017 and are valid till 2027 to 2038. As on 1stApril, 2020, ONGC Videsh’s share of 2P reserves in the project was 49.952 MMtoe. Major parts of Imperial’s reserves are in tight formations that require advanced technology to exploit the reserves economically. Imperial Energy implemented a pilot project by drilling 4 new technology wells with advanced well completion in Snezhnoye field during 2014-15. The pilot wells in tight sand had given successful results and based on their performance, construction of Associated Petroleum Gas Utilization plant and phase wise development of Snezhnoye field are in progress. In 1st phase, two development and one appraisal wells are planned to be drilled during 2020-2021. Pilot testing of new technology in tight formation (Tyumen) of Maiskoye field was carried out. Based on the result of ongoing integrated G&G study of the Maiskoye group of fields and performance of the pilot well, strategy for development of tight formation of Maiskoye group of fields shall be evaluated. It is also planned to extend the technology in phases to carry out pilot tests in other fields having oil in tight reservoirs. During the FY’20, production of Imperial Energy was 0.241 MMtoe as compared to 0.242 MMtoe during FY’19. The cumulative investment in the project was ₹ 134,266.7 million (USD 2,848.18 million) till 31stMarch, 2020.
5.7 Mansarovar Energy Project, Colombia Mansarovar Energy Colombia Limited (MECL), Colombia is 50:50 joint venture company with Sinopec of China. Effective 1st April, 2006, MECL's assets constitute 100% interest in Velasquez fee mineral property and 50% interest in the Nare Association contracts where the Colombian National Oil Company, Ecopetrol holds the remaining 50%. MECL also owns 100% of the 189-km Velasquez-Galan pipeline, connecting the Velasquez property to Ecopetrol's Barrancabermeja refinery. MECL has also acquired another exploration Onshore Block Llanos-69 (LLA-69) in prolific llanos basin of Colombiain the Bid Round 2012 which is in indefinite suspension due to social issues.MECL is reviewing the possibility of transferring commitments to private property assets (i.e. LLA-69 to Velasquez Field) Your Company’s share of oil and oil equivalent gas production from MECL was 0.419 MMtoe during FY’20 as compared to 0.444 MMtoe during FY’19. Your Company’s share of gross investment in the project was approximately ₹ 54,716 million (USD 1,126.21 million) till 31st March, 2020.
5.8 Al Furat Project, Syria
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Your company holds around 36% PI in Al Furat Project Syria through Himalaya Energy Syria B.V. (HESBV), a Joint Venture Company of ONGC Nile Ganga B. V., a wholly owned subsidiary of your Company and Fulin Investments Sarl, a subsidiary of China National Petroleum Company International (CNPCI), holding 50% shares each. The fields were operated by Al Furat Petroleum Company (AFPC), a Joint Venture Company of Syrian Petroleum Company (National Oil Company of Syria), Shell Syria Petroleum Development Company (SSPD) and HESBV. European Union imposed sanctions on Syria since 2011 and also included AFPC and the operations were stopped by foreign partners. There is no information of production from AFPC oilfields due to continued political and security instability in the country and in the oilfield areas. During FY’20, the project remained under shut down situation. The resumption of the operations in the project by your Company is expected on normalization of political and security situation in Syria. Your Company’s share of gross investment in the project was ₹ 12,447.80 million (USD 278.51 million) till 31st March, 2020.
5.9 Block BC-10, Brazil Block BC-10 is deep water offshore Block located in the Campos Basin approximately 120 km southwest from the city of Vitoria off the coast of Brazil with a water depth of around 1800 meters. Your Company presently holds 27% PI (acquired 15% in 2006 and 12% in 2013) in the project. Other partners in the Block are Shell with 50% PI as operator and Qatar Petroleum International with 23% PI. Development of Phase 1, Phase 2 and Phase 3 of the Block has been completed. Infill drilling campaign-1 consisting of two wells- ON-11 and BW-3 wells completed on 10th June 2019. First oil from BW-3 and ON11 received on 31st July and 16th October, 2019 respectively. Infill Campaign-2 of drilling one well OS-2 completed on 14th February, 2020. Hook up work pending to be completed by Q 2 FY’21. Your Company’s share of oil and oil equivalent gas production was 0.577 MMtoe during FY’20 as compared to 0.548 MMtoe during FY’19. Your Company’s share of gross investment in the Project was ₹ 139,385.4 million (USD 2,395.78 million) till 31st
March 2020.
5.10 ACG Project, Azerbaijan On 28th March 2013, your Company had acquired 2.72% participating interest (PI) from Hess in Azeri, Chirag and deep water portion of the Guneshli (ACG) fields in the Azerbaijan sector of the Caspian Sea. Production Sharing Agreement (PSA) for ACG fields signed in 1994 and valid till 2024 was extended till December 2049 during 2017. The amended and restated ACG PSA was signed by all the partners and SOCAR on 14thSeptember 2017 according to which the PI of ONGC Videsh was changed to 2.31% effective from 1st January 2017. The other partners in the Project are BP ~ 30.37% (Operator-on behalf of AIOC, the operating company), AzACG (SOCAR) – 25%, Chevron~ 9.57%, INPEX~ 9.31%, Equinor(Statoil)~ 7.27%, Exxon Azerbaijan Ltd.~ 6.79%, TPAO~ 5.73%, and Itochu~ 3.65%. ACG field discovered in the 1970s and 1980s, are the largest oil and gas field of Azerbaijan located in the South Caspian Sea; about 95 km off the coast of Azerbaijan. Operations at the ACG field started in November 1997 with the start-up of production from the Chirag-1 platform. Later on 5 more production platforms were added and currently the fields are producing through 6 platforms. Average oil production from the ACG fields during FY’20 was around 523,005 BOPD.
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Installation of the new offshore platform (ACE) having processing and modular drilling rig has been approved by all partners. The execution phase of ACE project has been started in April 2019 and is scheduled to deliver first oil in the year 2023 and envisages cumulative incremental production of 300 MMBBLS. Your Company’s share of oil and oil equivalent gas production from ACG field was 0.679 MMtoe for FY’20 as compared to 0.740 MMtoe during FY’19. Your Company’s share of gross investment in the project ACG was ₹70,826.9 million (USD 1,225.93million) till 31st March, 2020.
5.11 Block A-1 and A-3, Myanmar Block A-1 and A-3 are located around 110 Km west of Ramree Island in Rakhine state in a water depth ranging up to 1500 meters near the maritime border with Bangladesh. Daewoo International Corporation (now POSCO International Corporation) was awarded Block A1 in the year 2000 and Block A-3 in the year 2004. Subsequently other partners - Myanma Oil and Gas Enterprise (MOGE), ONGC Videsh Limited, GAIL and KOGAS farmed-in in these two blocks. POSCO International Corporation is the Operator of the blocks. After completion of exploration and appraisal of Blocks A-1 and A-3, the consortium made 4 discoveries of gas fields (two in each block namely Shwe&ShwePhyu in Block A-1 and Mya North & Mya South in Block A-3). Shwe and ShwePhyu were discovered in January 2004 and March 2005 respectively. Mya North & Mya South were discovered in January 2006. Your Company holds 17% PI in Blocks A-1 and A-3 and other Partners are POSCO International Corporation(51%), GAIL and KOGAS (8.5% each) and Myanma Oil & Gas Enterprise i.e. MOGE (15%). MOGE is the National Oil Company and Regulatory wing of Myanmar under the Ministry of Energy. Blocks A-1 & A-3 are under Combined Development consequent to declaration of commerciality on 1.11.2009 and approval of FDP (Shwe Project). Shwe Project consists of two components; (i) field development of Blocks A1 and A3, (ii) offshore pipeline transportation commencing from the delivery point of the offshore platform to the gas sales point in Ramree Island. Commercial gas production from Blocks A-3 and A-1 commenced from 15th July 2013 and 10th January, 2014 respectively, after completion of Phase-I. Phase-II development is underway since July 2018 and includes drilling of 4 wells in Shwe and ShwePhyu each. Production tie in from Shwe and ShwePhyu is expected in April 21 and April 22 respectively.. Your Company’s share of combined gas production from Blocks A-1 and A-3 was 1.056 BCM during FY’20 as compared to 0.697 BCM during FY’19. Your Company’s share of gross investment in the project was ₹ 19,965.2 million (USD 369.32 million) and ₹ 7,171.8 million (USD 143.9 million) for Blocks A-1 and A-3 respectively till 31st March, 2020.
5.12 Vankorneft, Russia ONGC Videsh Vankorneft Pte. Limited (OVVL), a wholly owned subsidiary of ONGC Videsh Singapore Pte. Limited (OVSL), which is in turn a wholly owned subsidiary of your Company, acquired total 26% Shares in JSC Vankorneft in two separate transactions carried out during FY’17. 15% share was acquired on 31stMay 2016 for a consideration of USD 1,268 million and additional 11% share was acquired on 28th October 2016 for a consideration of USD 930 million.
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Rosneft, the National Oil Company of Russia continues to hold the majority (50.1%) shares while the balance 23.9% shares are held by the consortium of Indian Oil PSUs comprising Oil India Limited, Indian Oil Corporation Limited and Bharat Petro Resources Limited. Vankor is Russia’s one of the largest fields by production. Average production from the field was around 273,025 barrels of oil per day (bopd) in 2019-20. Your company has received cumulative dividend of USD 959.36 million till date. Your Company’s share of oil and oil equivalent gas production from the project was 4.981 MMtoe during FY’20 as compared to 5.80 MMtoe during FY’19. Your Company’s share of gross investment in the project was ₹143,738.2 million (USD 2145.39 million) till 31st
March, 2020.
5.13 Lower Zakum Concession, Abu Dhabi – UAE Your Company holds 4% PI in Lower Zakum field, Abu Dhabi through M/S. Falcon Oil and Gas B.V. (FOGBV), a joint venture company comprising of ONGBV, IndOil Global B.V. and BPRL International Ventures B.V. The Concession has a term of 40 years w.e.f. 9th March 2018.ADNOC Offshore is the operator of Lower Zakum field. The shareholders in Lower Zakum concession are ADNOC: 60%, FOGBV: 10%, INPEX (JODCO): 10%, CNPC: 10%, Total: 5%, and ENI: 5%. Your Company’s share of production during FY’20 was 0.8 MMT of oil as compared to 0.757 MMT in FY 19. The cumulative investment in the project was₹ 19,056.7 million (USD 290.87 million) till 31st March 2020.
6. DISCOVERED ASSETS/ ASSETS UNDER DEVELOPMENT
6.1 Project Farzad B, Iran Farsi is an offshore exploration Block spread over 3,500 sq. km in Persian Gulf Iran with a water depth of 20-90 meters. The Exploration Service Contract (ESC) for the Block was signed on 25th December, 2002. Your Company holds 40% PI and is the Operator and the remaining PI is held by Indian Oil Corporation Limited (40% PI) and Oil India Limited (20% PI). Pursuant to the discovery of gas made by the Consortium led by your Company in FB (later rechristened as Fazad-B) structure, commerciality of the block was declared by National Iranian Oil Company (NIOC), Iran on 18thAugust 2008. The exploration phase of the ESC expired on 24th June, 2009. The Master Development Plan (MDP) of Farzad-B gas field was submitted in April, 2011 to Iranian Offshore Oil Company (IOOC) – the then designated authority by NIOC for development of Farzad-B gas field. Subsequently, the Development Service Contract (DSC) of Farzad-B Gas Field, though negotiated till November, 2012, could not be finalized due to difficult terms in the DSC and international sanctions on Iran. Since April, 2015, negotiations restarted with Iranian Authorities to develop the Farzad-B gas field under a new, Iran Petroleum Contract (IPC). NIOC introduced Pars Oil and Gas Company (POGC)- as their representative for negotiations. Since April, 2016, both sides negotiated to develop Farzad-B gas field under an integrated contract covering upstream and downstream including monetization/marketing of the processed gas, however negotiations remained inconclusive. Meanwhile, on the basis of new G&G studies, a revised Provisional Master Development Plan (PMDP) was submitted to POGC in March’2017. In April 2019, NIOC proposed development of the gas field under the DSC and offtake of raw gas by NIOC at landfall point(s). However, due to imposition of US sanctions on Iran w.e.f. 5th November, 2018, technical studies could not be concluded which is a precursor for commercial negotiations.
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Recently, in February, 2020, NIOC informed its intention to conclude the contract for Farzad B development with an Iranian company. IC has requested the terms and conditions of the proposed contract for its evaluation Response is awaited. Your Company’s share of gross investment was ₹ 1,612.1 million (USD 35.74 million) till 31st March, 2020.
6.2 Rovuma Area 1, Mozambique Your Company holds 16% net PI in the Block Rovuma Area 1 Offshore Mozambique (Area 1) of which 10% PI is held through ONGC Videsh Rovuma Limited (OVRL), a wholly owned subsidiary incorporated in India and 6% PI through Beas Rovuma Energy Mozambique Limited (BREML), a Mauritius company jointly owned by ONGC Videsh and OIL in the ratio of 60:40. BREML holds 10% PI in Area-1. The other partners in Area-1 are TOTAL E&P Mozambique Area 1, Limitada, Emprasa Nacional de Hidrocarbonetos E.P., BPRL Ventures Mozambique B.V., PTTEP Mozambique Area-1 Ltd and Mitsui E&P Mozambique Area 1 Ltd. Second and final exploration phase for Area-1 ended on 31st January, 2015 and have resulted in discovery of five areas viz. Prosperidade, Golfinho-Atum, Orca, Tubarao & Tubarao-Tigre. As a result of a successful exploration and appraisal, Area -1 today represents one of the largest natural gas discoveries in offshore East Africa with estimated recoverable resources of 64 trillion cubic feet (mean) and has the potential to become one of the world’s largest LNG producing hubs. Area-1 plans to develop initially two LNG trains of capacity 6.44 MMTPA each (total 12.88 MMTPA capacity) from the Golfinho - Atum Field. The consortium has executed long-term LNG offtake agreements with major Asian and European customers totaling more than 11.1 million tonnes per annum exceeding the threshold target to achieve FID. Consortium has taken Final Investment Decision (FID) on 18th June 2019. Your Company’s share of gross investment in the project was about ₹ 2,94,217.4 Million (USD 4,796.29 million) till 31st March, 2020.
6.3 Carabobo Project, Venezuela Your Company along with Indian Oil Corporation Limited (IOCL), Oil India Limited (OIL), Repsol YPF (Repsol) and Petroliam Nasional Berhad (PETRONAS) (collectively, the “Consortium”), was awarded by the Government of the Bolivarian Republic of Venezuela 40% ownership interest in an “EmpresaMixta” (or “Mixed Company") for developing the Carabobo-1 North (203 sq.km.) and Carabobo-1 Central (180 sq.km.) blocks located in the Orinoco Heavy Oil Belt in eastern Venezuela. Your Company holds 11% PI in Carabobo-I project through its subsidiary Carabobo One AB. Repsol holds 11% PI, IOCL and OIL holds 3.5% PI each in the project. The CorporaciónVenezolana del Petróleo (CVP), a subsidiary of Petróleos de Venezuela S.A. (PdVSA), Venezuela's state oil company, holds the remaining 71% PI. The Mixed Company was incorporated as Petro Carabobo S.A. (PCB). First oil from the field as per Accelerated Early Production (AEP) Plan was achieved on 27th December 2012 and the field has produced average 13,023 BOPD in FY’20 with 76 development wells in production. Your Company’s share of oil and oil equivalent gas production was 0.094 MMtoe during FY’20 as compared to 0.127 MMtoe during FY’19.
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Your Company’s share of gross investment in the project was ₹12,832.2 million (USD 241.18 million)) till 31st March, 2020.
6.4 Block XXIV, Syria Your Company holds 60% PI in the Block 24, Syria with IPR Mediterranean Exploration Ltd. (Operator) and Tri Ocean Mediterranean holding 25% PI and 15% PI respectively. The exploration phase for the block expired on 28th September, 2011. Government of Syria granted development rights for additional areas of three formations in Abu Khashab area. The project went under shutdown due to deteriorated law and order situation in the country since 2011. Your Company did not produce any oil from the project during FY’20. Your Company’s share of gross investment in the project was ₹ 3,234.4 million (USD 70.09 million) till 31st March, 2020.
7. EXPLORATORY ASSETS
7.1 Block SSJN-7, Colombia The block SSJN-7 was awarded to Pacific Rubiales Energy (PRE) in 2008 bid round of Colombia. In 2017, PRE transferred its Participating Interest to Canacol Energy Limited (CNE). The block has an area of 2707 sq. km located in the South Western part of onshore Sinu San Jacinto basin of Colombia. Your Company holds 50% PI and CNE is the Operator with 50% PI. 2D seismic survey of 332 LKM was completed in the Eastern part of the block. Further acquisition of 157 SKM 3D seismic data in the Western part of the block and drilling of one well is to be carried out to fulfill MWP of exploration period. Progress on activities has been affected by COVID-19 pandemic and Regulator ANH has granted an extension of current Exploration Phase upto 18th December 2021 without any additional financial obligation. Your Company’s share of gross investment in the project was ₹537.3 million (USD 10.03 million) till 31st March 2020.
7.2 Block CPO-5, Colombia The block was awarded to your Company in 2008 bid round of Colombia. This block has an area of 1,992.47 sq km located in the South Western part of the prolific oil & gas onshore Llanos basin of Colombia. In June 2010, your Company divested 30% PI to Petrodorado Energy (PDSA) retaining the operatorship of the block. After completing 2D & 3D seismic data API in South Eastern part of the block and other G&G studies, 2 exploratory oil wells were drilled in 2012 and 2013 respectively. The MWP of Phase-1 has been successfully completed and your Company has entered in Exploration Phase-2 of the Block w.e.f. 11th April, 2013. MWP of Phase-2 consists of drilling four A3 category Exploratory wells, 435 Sq. km 3D Seismic API and reprocessing of 500 LKM 2D Seismic. Drilling of four exploratory wells and Acquisition & Processing of 254 Sq. KM 3D seismic data in NW part of the block has been completed. End date of exploration phase-II is 9th July 2021. Progress on activities has been affected because of COVID-19 pandemic and Regulator ANH has been requested for extension of current Exploration Phase under notification "Acuerdo 02 of 2020" issued by them. Currently, Long term testing (LTT) of wells Mariposa-1 and Indico-1X is underway. Mariposa-1 well is flowing approximately @ 2690 BOPD and has produced 2.654 MMBBL of oil till Mar-2020. The well Indico-1X proved to be a huge discovery in the block, and is flowing Oil @ avg. 5,125 BOPD with cumulative production of 1.970 MMBBL till Mar-2020. Well Calao-1X was spudded on 1st Feb 2019, however, due to discouraging results, well was
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temporarily abandoned. Another well Sol-1 was spudded on 11th May 2019 and flowed Oil under STT (Short Term Testing) at rate of 250 BOPD through ESP (Electrical Submersible Pump). The STT completed on 15th July 2019 and the well is closed till approval of ANH to start the LTT operations. DOC (Document of Commerciality) for Mariposa Evaluation Area (MEA) has been submitted to ANH on 21st November 2018 and subsequently Initial Development Plan & Annual Program of Operations of Mariposa Production area was also submitted on 21st February 2019. Meanwhile M/S GEOPARK has acquired the total stake of M/S PDSA and has become the new Partner in the CPO-5 block since January 2020. Your Company’s share of oil and oil equivalent gas production from the project was 0.267 MMtoe during FY’20 as compared to 0.127 MMtoe during FY’19 Your Company’s share of gross investment in the project was ₹6,307.3 million (USD 105.35 million)) till 31stMarch 2020.
7.3 Block RC-9, Colombia The block was awarded to Ecopetrol in 2007 bid round of Colombia. This block with water depth ranging from 40-160 m has an area of 1060 Sq. km located near Chuchupa and Ballena Gas fields in the North Western part of offshore Guajira basin of Colombia. Ecopetrol has 50% PI with Operatorship and your Company holds remaining 50% PI in the block. Acquisition of 3D seismic data and necessary G&G studies have been carried out in the block fulfilling the commitment of the first and second phase of the exploration period. Three year extension was granted by the Regulator for Exploration Phase-2 i.e. upto 25th April, 2018 with commitment of one Well. One exploratory location, Mollusco-1 was released and spudded on 20th September 2017. The well reached target depth on 31st October, 2017. The logs recorded in the well and the sidewall cores did not give encouraging results from hydrocarbon point of view. Based on the results of the well and as decided by the consortium, the well was plugged and abandoned. In view of the results of the well Mollusco-1, the Consortium decided for the initiation of necessary procedure for the relinquishment of the block before the expiry of the current exploration phase. The Block is under process of relinquishment. Your Company’s share gross of investment in the project was ₹2,278 million (USD 36.41 million till 31st March 2020.
7.4 Block RC-10, Colombia The block was awarded to your Company in 2007 bid round of Colombia. This block is in water depth ranging from 200-2600m with an area of 1340 Sq. km and is located in the North Western part of offshore Guajira basin of Colombia. Your Company is the operator with 50% PI. Remaining 50% PI is held by Ecopetrol. 2D and 3D seismic data were acquired and G&G studies have been carried out in the block which fulfilled the commitment of the first and second phase of the exploration period. Three year extension was granted by the Regulator for Exploration Phase-2 till 28th November 2016 with commitment of one Well. Your Company applied for 9 months extension under new agreement released by ANH which was subsequently granted by the Regulator (ANH), revising the block expiry to 28th August 2017. Subsequent studies pointed to adverse prospectivity of the block. Accordingly, procedure for relinquishment of the block and transfer of its minimum financial commitment to other blocks was initiated. In regard with same, part MFC (Minimum Financial Commitment) transfer from RC-10 Block for a total value of USD 3.47 Million against the additional commitment of drilling of well Indico-1X in CPO-5 Block was approved by Regulator. Extension of
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Exploration Phase-2 by additional six months followed by another six months were requested from ANH for transfer of Balance MFC, which was granted by ANH. Subsequently, transfer of the entire balance MFC of the block amounting to USD 14.53 Million against commitment of additional exploration activities in Block CPO-5 has been approved by ANH. The block is currently under relinquishment which would be finalized after settlement of pending legal cases. Your Company’s share of gross investment in the project was ₹798.3 million (USD 15.70 million) till 31st March 2020.
7.5 Block Gua Off-2, Colombia The block was awarded to your Company in 2012 bid round of Colombia. This block is in water depth ranging from 1500-2700m has an area of 1171 Sq. km and is located in the North Western part of offshore Guajira basin of Colombia. Your Company holds 100% PI in the block. 3D seismic data and piston cores data were acquired against the MWP of first phase of exploration period. Your Company applied for 9 months extension to the Regulator (ANH) under new agreement released by ANH which was subsequently granted by ANH, hence revising the block expiry to 15th November 2016 which was further extended till 25th January, 2017. However, considering adverse prospectivity of the RC-10 block, on the prospectivity of which GUA-Off 2 was acquired, procedure for relinquishment of the block and transfer of its minimum financial commitment (MFC) to other blocks was initiated. In regard with same, the MFC transfer of USD 1.43 Million from GUA Off-2 Block for the additional activity of drilling the well in CPO-5 Block has been approved by Regulator ANH and procedure for the closure of E&P contract by ANH is underway. Your Company’s share of gross investment in the project was ₹133.8 million (USD 2.15 million)) till 31st March 2020.
7.6 Block Llanos-69 (LLA-69), Colombia The block was awarded in 2012 bid round of Colombia to Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture of your Company and SINOPEC. This block has an area of 226 Sq. km and is located in the Foothill, North Western part of the prolific Llanos basin of Colombia. MECL is the operator of the block. For completion of MWP of the ongoing first phase of exploration period, 3D seismic survey of 75 SKM has been acquired processed and interpreted. Concurrently, ANH approved 9 months extension and MECL signed the respective amendment for extending the phase I till 12th September, 2017. Further extension was applied, however, due to the community issues faced in the Block, the contract has been suspended indefinitely by ANH. Considering the indefinite suspension of the block, initiation of negotiation with ANH is currently under consideration to transfer the pending obligation (Minimum Financial Commitment) with an attempt to realize the past sunk cost of LLA-69. MECL is reviewing the possibility of transferring commitments to private property assets (i.e. LLA-69 to Velasquez Field). Your Company’s share of gross investment was ₹ 373.2 million (USD 5.74 million) till 31st March, 2020.
7.7 Satpayev Project, Kazakhstan Your Company signed agreements with JSC NC KazMunaiGas (KMG), the National Oil Company of Kazakhstan for acquisition of 25% PI in Satpayev exploration block on 16th April, 2011 at Astana, Kazakhstan in the presence of Hon’ble Prime Minister of India and the President of Kazakhstan. This transaction marked the entry of your Company in hydrocarbon-rich Kazakhstan. Satpayev exploration block, located in the Kazakhstan sector of the North Caspian Sea, covers an area of 1481 sq. km at a water depth of 4-9 mts. Your Company carries KMG for its 75% PI and therefore bears the entire 100% expenditure during the exploration and appraisal phase of the Project. All G&G
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contractual commitments have been fulfilled including drilling of two exploration wells without any commercial Hydrocarbon success. As the prominent prospects in the block have been probed without any commercial Hydrocarbon success, ONGC Videsh has decided to exit from the Satpayev E&P Contract after the expiry of 1st extension of exploration phase on 15th June 2018. The Block was relinquished on 13th June, 2019 and the settlement post relinquishment is under progress.
Your Company’s share of gross investment in the project was ₹ 17,074.8 million (USD 296.74 million) till 31st March, 2020.
7.8 Block BM-SEAL-4, Brazil Your Company farmed into the Block in June, 2007 as part of swap agreement between Petrobras and your Company. Petrobras as operator has 75% PI and your Company as partner holds 25% PI in BM-Seal-4 block. Your Company entered in Exploration Phase-2 with a Minimum Work program of drilling of 2 wells. Two exploratory wells, Japartuba-1 (Dry & Abandoned) and Poco Verde (thin oil and gas pays), have been drilled thereby accomplishing the MWP. At the end of the Exploration Phase-2 in June 2013, the operator has proposed two appraisal plans viz. Poco Verde and Moita Bonita. Your Company decided to withdraw from Poco Verde PAD and to participate in Moita Bonita PAD (Discovery Appraisal Plan) which covers an area of about 1020 sq.km spread over NW part of BM-SEAL-4 block (320 sq. km) and SE part of BM-SEAL-10 block (700 sq. km) concessions. The committed work program for BM-SEAL-4 part of the PAD in Moita Bonita PAD is 3D seismic of 320 SKM, drilling of one well and one formation test. Your Company agreed to operator’s proposal for drilling two wells in the block. The first well MB-2 encountered oil and gas and during Testing (DST), the well flowed approx. 600,000 m³/d of gas and 475 m³/d of condensate. The second well MB-9, additional exploratory well over MWP, encountered oil & water in different sand columns. Currently, all discoveries made in Moita Bonita PAD are being evaluated by Operator for an Integrated Development Project. ANP (Govt. Regulator) had previously agreed for submission of Declaration of Commerciality (DoC) of Moita Bonita Appraisal Plan to 1st December 2020. However, due to Covid-19 pandemic, Regulator ANP has recently granted an extension of 9 months upto 1st September, 2021 for submission of DoC as per the terms of ANP resolution no. 815/2020. Your Company’s share of gross investment was ₹6627.8 million (USD 107.14 million) in the Block till 31st March, 2020.
7.9 Contract Area 43, Libya Your Company acquired 100% PI in Contract Area 43, Cyrenaica offshore basin of Libya in the Mediterranean Sea in 2007 and holds the operatorship of the block. The acquisition, processing and interpretation of 1011 LKM 2D and 4000 Sq. Km. 3D seismic data was completed as per the MWP of the license. The exploration phase of Contract Area 43 was extended corresponding to Force Majeure/ Security situations up to 21st July 2013. Requests have been made with the National Oil Company, Libya for granting of extension of exploratory period from 21st July 2014. As no extension has been granted till date and due to continuing geo-political issues in Libya, your Company is in the process of exiting the Block.
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Your Company’s share of gross investment in the project was ₹1,953.60 million (USD 42.19 million) till 31st March, 2020.
7.10 Block-8 (Now renamed as Block 20), Iraq Your Company was the sole licensee of Block-8 (now Block 20), a large on-land exploration Block in Western Desert, Iraq spread over 10,600 sq. km. The Exploration & Development Contract (EDC) for the Block was signed on 28th
November, 2000. The contract was ratified by the Government of Iraq on 22nd April, 2001 and was effective from 15th May 2001. Since then, the work relating to archival, reprocessing and interpretation of the existing seismic data has been completed. However, your Company had to notify the force majeure situation to the Ministry of Oil, Iraq in April, 2003 due to prevailing conditions in Iraq. In 2008, your Company was informed that Government of Iraq had decided to re-negotiate the Block-8 contract in-line with the provisions of the new oil and gas law which was expected to be promulgated soon. In 2018, Government of Iraq has adopted a new Business Model, however, re-negotiation could not be commenced. Your Company’s share of gross investment in the project was ₹ 48.70 million (USD 1.03 million) till 31stMarch, 2020.
7.11 Block 128, Vietnam Your Company signed PSC with Petro Vietnam for deep water exploratory Block- 128 having an area of 7058 Sq.km in Offshore PhuKhanh Basin, Vietnam in May 2006. Ministry of Petroleum & Industries (MPI), Vietnam issued investment license on 16th June 2006, being the effective date of the PSC. Your Company is the operator with 100% PI. The water depth is ranging from 200-2000m. During the exploration period, acquisition of 3D seismic data and reprocessing of 2D seismic data and G&G studies were carried out fulfilling a part of MWP of the 1st Phase of exploration period. Further G&G studies are being carried out. One commitment exploratory well is to be drilled as a part of MWP of 1st Phase of exploration period. A two-year extension of the block from 16th June 2019 to 15th June 2021 has been granted by Petro Vietnam on 29th October 2019. Request for sharing geological data of the adjoining blocks is being negotiated with Petro Vietnam for Petroleum System Modelling and other related studies for better geological understanding. Your Company’s share of gross investment in the project was ₹ 2,220.9 million (USD 50.89 million) till 31st March, 2020.
7.12 Block SS-09, Bangladesh The block was awarded to your Company in consortium with Oil India Ltd (OIL) in Bangladesh bid round 2012. The PSC was signed on 17th February 2014 between Government of People’s Republic of Bangladesh, Bangladesh Oil and Gas & Mineral Corporation (PETROBANGLA) and consortium of your Company with OIL and Bangladesh Petroleum Exploration and Production Company Limited (BAPEX). Your Company is the Operator with 45% PI, while the partners OIL and BAPEX have 45% and 10% PI respectively in the block. BAPEX’s 10% PI is being carried by your Company and OIL in proportion to their respective interests for all expenditure up to the date of first commercial discovery. The Block SS-09 covers an area of 7,026 sq. km. located in offshore Bengal Basin. As per Minimum Work Program (MWP), during the first phase of exploration, acquisition of 2850 LKM of 2D Seismic data and drilling of one well were planned. Seismic commitment has been fulfilled. Based on in-house interpretation of newly acquired Seismic data, one drillable prospect has also been identified and approved by the Regulator. Pre-drilling preparations for well Maitri-1X are in progress.
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Covid-19 pandemic has affected the progress of activities and a request to Regulator for 2 year extension to current Exploration Phase has been submitted. Your Company’s share of gross investment in the project was ₹ 217.5 million (USD 3.28 million) till 31st March, 2020.
7.13 Block SS-04, Bangladesh The block was awarded to your Company in consortium with Oil India Limited (OIL) in Bangladesh bid round 2012. The PSC was signed on 17th February 2014 between Government of People’s Republic of Bangladesh Oil and Gas & Mineral Corporation (PETROBANGLA) and consortium of your Company with OIL and Bangladesh Petroleum Exploration and Production Company Limited (BAPEX). Your company is the Operator with 45% PI, while the partners OIL and BAPEX holds 45% and 10% PI respectively in the block. BAPEX’s 10% PI is being carried by ONGC Videsh and OIL in proportion to their respective interests for all expenditure up to the date of first commercial discovery. The Block SS-04 covers an area of 7,269 sq. km. and located in offshore Bengal Basin. As per Minimum Work Program (MWP), during the first phase of exploration, acquisition of 2700 LKM of 2D Seismic data and drilling of two wells were planned. Seismic commitment has been fulfilled. Based on G&G study of old vintage seismic data a drillable location has been identified and released in onshore area of the block. Construction of approach road and drill site preparation have been completed. Additionally, based on in-house interpretation of newly acquired OBC Seismic data, one another drillable location has been identified and approved for drilling and pre-drilling preparations for the well are in progress. Covid-19 pandemic has affected the progress of activities and a request to Regulator for 2 year extension to current Exploration Phase has been submitted. Your Company’s share of gross investment in the project was ₹ 485.5 million (USD 7.27 million) till 31st March, 2020.
7.14 Block B2, Myanmar The block was awarded to your Company in the Myanmar Onshore Bid Round 2013. The PSC was signed on 8th August 2014 with “MOGE” (Regulator) by your Company as an Operator having 97% PI and M&S (local partner) with 3% (carried) PI in the block. The Block is located in the Zebyutaung–Nandaw area and geologically in the Northern part of the Chindwin Basin. The approximate size of block is 16,996 Sq. Km. Acquisition of 555 LKM Full Fold 2D seismic data and drilling of two exploratory wells are to be completed for fulfilling of Minimum Work Program (MWP) of the 1st Phase of ongoing Exploration Period which commenced from 1st January 2016. MOGE has granted two year extension of Initial Exploration Phase for the Block. Acquisition and processing of 681.25 LKM of Full Fold Seismic data has been completed. G&G evaluation of the data resulted into identification of one drilling location, which is under approval of MOGE. Specialized re-processing of acquired seismic data for improved imaging of sub-surface is under progress. Progress of activities has been affected by COVID-19 pandemic situation and Regulator MOGE has granted an extension of 1 year to current Exploration Phase up to 31st December, 2021 without any additional financial obligation.
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Your Company’s share of gross investment in the project was ₹359.7 million (USD 5.51 million) till 31st March, 2020.
7.15 Block EP3, Myanmar The block was awarded to your Company in the Myanmar Onshore Bid Round 2013. The PSC was signed on 8th August 2014 with “MOGE” (Regulator) by your Company as an Operator having 97% PI and M&S (local partner) with 3% (carried) PI in the block. The block EP-3 is located in the Central Burma Basin (BagoYoma Sub Basin) with an area of approximately 1,650 sq.km Acquisition of 420 LKM 2D seismic data and drilling of two exploratory wells are to be completed for fulfilling MWP of the 1st Phase of Exploration Period which commenced from 1st January 2016. MOGE has granted two year extension of Initial exploration phase for the Block. ONGC Videsh has completed acquisition, processing and interpretation of 563 LKM of Full Fold 2D Seismic data in the Block. Two prospective locations have been approved for drilling by MOGE and pre-drilling activities are in progress. Progress of activities has been affected by COVID-19 pandemic situation and Regulator MOGE has granted an extension of 1 year to current Exploration Phase up to 31st December, 2021 without any additional financial obligation. Your Company’s share of gross investment in the project was ₹428.5 million (USD 6.61 million)till 31st March, 2020
7.16 Block 32, Israel The block was awarded to your Company in consortium with Bharat Petro Resources Limited (BPRL), Indian Oil Corporation Limited (IOC) & Oil India Limited (OIL) in 1st Israel Offshore Bid Round 2016. Your Company is the Operator with 25% PI in the block through Indus East Mediterranean Exploration Ltd. (IEMEL), a 100% subsidiary of your Company in Israel, while the partners BPRL, IOC & OIL each hold 25% PI in the block. The Block 32 has an area of 356.98 sq.km and is located in offshore Israel with water depth ranging between 1500-1800m. The Consortium has completed all the tasks as per the MWP of the License. Detailed analyses brought out that no economically viable prospect could be identified within the block area. Currently process is underway for relinquishment of the Block. Your Company’s share of gross investment in the project was₹1.8 million (USD 0.03 million) till 31st March, 2020.
8. PIPELINE PROJECTS
8.1 BTC Pipeline Project Your Company had acquired 2.36% PI in Baku-Tbilisi-Ceyhan (BTC) pipeline held by Hess along with ACG fields. BTC Pipeline is operated by BP (30.1% PI) and other shareholders are AzBTC (SOCAR)-25%, Chevron-8.9%, INPEX-2.5%, Equinor (Statoil)-8.71%, TPAO-6.53%, Itochu-3.4%, TOTAL-5%, ENI-5% and Exxon Azerbaijan Ltd. -2.5%. Oil produced from ACG fields is received at the onshore Sangachal oil terminal located at 50 km southwest of Baku. The BTC pipeline commences from Sangachal terminal, runs through Azerbaijan, Georgia and Turkey and terminates at Ceyhan terminal at Mediterranean in Turkey with a total length of 1,768 km and diameter of 42”- 46” having transportation capacity of 1.2 million barrels per day. The majority of ACG oil is evacuated through BTC pipeline to the Mediterranean terminal at Ceyhan for further export. BTC pipeline was built primarily to serve ACG oil and is operational since June 2006. Condensate from Shah Deniz Gas Field, crude oil from SOCAR owned field and some other third party volumes is also dispatched through the pipeline. BTC Co. operates the BTC pipeline in
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Azerbaijan and Georgia Section and BOTAS International Limited, a Turkish Government company, operates the pipeline in the Turkish sector. During FY’20, 231.19 million barrel of crude was transported through BTC pipeline with average throughput of 6,31,667 BOPD. Your Company’s share of gross investment in the BTC pipeline was ₹ 3,811 million (USD 70.07 million) till 31st March, 2020.
8.2 SHWE Offshore Project, Myanmar The SHWE pipeline is a part of the combined development of Blocks A-1 and A-3, Myanmar and is an unincorporated joint venture amongst the consortium members.. As a part of this project, the 110 Km long 32” diameter gas trunk transportation pipeline of ultimate capacity of 960 MMSCFD has been constructed and is being used for transportation of gas from Shwe Offshore Platform (SHP) to land fall point at Ramree Island. The onshore gas terminal (OGT), supply base and jetty have been constructed through an EPCIC contract. Your Company has 17% PI in the Offshore Pipeline Project. Your Company’s share of gross investment in the project was ₹ 3,739.4 million (USD 72.87 million) till 31st March, 2020.
8.3 SEAGP Onshore Gas Transportation Pipeline, Myanmar To export the gas production from blocks A-1 & A-3 of Myanmar to China, a Gas Sales Agreement (GSA) was signed between the POSCO International-led consortium (partners of blocks-A-1 & A-3) and China National United Oil Corporation (CNUOC) in December 2008. A joint operating pipeline company named South East Asia Gas Pipeline Company Limited (SEAGP) was incorporated in Hong Kong on 25th June, 2010 by the consortium with the objective of laying trans-country gas pipeline from land fall point at Ramree Island to Ruilli at Myanmar-China border. CNPC is the major stake holder in the pipeline company with 50.90% share. Your Company is participating in the project through its subsidiary arm ONGC Nile Ganga B.V (ONGBV) and holds 8.347 % share. The other stake holders in the pipeline project are CNPC (50.9%), POSCO (25.041 %), MOGE (7.365 %), GAIL (4.1735%), and KG-SEAGP (4.1735 %). The joint venture company has laid pipeline of 792.5 km, 40” diameter and has 3 distribution stations and 2 compressor stations along the route and has a design pressure of 10 Mpa (101.5 kg/cm2) and a design capacity of 12 BCM per year (1160 MMSCFD). Your Company’s share of gross investment in the project was ₹ 8,426.2 million (USD 154.98 million) till 31st March, 2020.
9. PROJECTS RELINQUISHED DURING THE FINANCIAL YEAR 2019-20 : 04
9.1 Greater Nile Oil Project (GNOP), Sudan, exited w.e.f. 31st August 2019 Your Company had 25% PI in the Block 2A&4 in, Sudan through its wholly owned subsidiary ONGC Nile Ganga BV (ONGBV) since, 2003. As the Government of Sudan (GOS)was consistently overlifting ONGBV’s share of crude oil since 2011, Your Company terminated the , Exploration and Production Sharing Agreement (EPSA) with GOS w.e.f 31st Aug 2019. The company has initiated arbitration proceedings against GoS for its outstanding dues of USD 430.69 Million on account of invoices for Over lifting of ONGBV’s share of crude oil by GoS. Your Company’s share in oil production from GNOP, Sudan was 0.097 MMT during FY’20, exited w.e.f. 31.08.2019 as compared to 0.257 MMT during FY’19. Your Company’s share of gross investment in the project was ₹ 110,865.5 million (USD 2,299.47 million) till 31st March, 2020.
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9.2 Block PEP-57090, New Zealand, relinquished w.e.f. 03rd February 2020
The block was awarded to your Company in the New Zealand Bid Round 2014 on 9th December, 2014 for a term of 12 years commencing from 1st April, 2015. Your Company held 100% PI and was the Operator. The block PEP-57090 has an area of 2120.761 sq. km and is located in the offshore Taranaki Basin with water depth ranging between 300-400m. MWP for exploration phase I comprises Acquisition, Processing and Interpretation (Structural Mapping and seismic attribute study) of 1400 SKM of full fold 3D. 1862 LKM of 3D Marine Seismic Data was acquired, processed and interpreted. Special studies like 2D and 3D Petroleum System Modelling were also carried out. However, because of low prospectivity, the block has been surrendered in February 2020. Your Company’s share of gross investment in the project was ₹ 335.9 million (USD 5.05 million) till 31st March, 2020.
9.3 Block PEL-0037, Namibia, relinquished w.e.f. 27th March 2020 Your Company acquired Block PEL-0037 in offshore Namibia under a Petroleum Agreement effective from 1st January, 2017 and valid up to 27th March 2020. Your Company held 30% participating Interest (PI) in the block and the other partners were, Tullow having 35% PI, and Pancontinental & Paragon having 30% & 5% respectively. Tullow is the Operator in the said block. The block PEL-0037 has an area of 17,295 sq.km and is located in the Walvis Basin of offshore Namibia. Your company acquired the block during Exploration Phase – I and subsequently applied for extension of Exploration Phase – II up to 27th March 2020 which was granted by the Ministry of Mines & Energy, Government of Namibia. MWP for Exploration Phase II comprises of drilling of one exploratory well up to 3830m. One well (Cormorant-1) was spudded-in on 4th September, 2018 and drilled up to the target depth of 3855. The primary interpretation and absence of hydrocarbon shows indicated that it was water bearing. Subsequently, Your company served the Notice of Complete Withdrawal from the block in January 2020 and exited the project w.e.f 27th March 2020. Your Company’s share of gross investment in the project was ₹ 1,695 million (USD 25.23 million) till 31st March, 2020.
9.4 Sudan Multi Product Pipeline, exited w.e.f 31st August 2019 ONGC Videsh entered into a Pipeline Contract Agreement (PCA) with the then Ministry of Energy & Mining (MEM), Government of Sudan (GOS) on 30th June 2004 for construction of a 741 Km. long 12”diameter Khartoum to Port Sudan multi-product pipeline on EPC basis. The project was financed by ONGC Videsh & Oil India to the extent of 90% and 10% respectively. The project was completed on 31st August 2005, 2 months ahead of the contractual completion schedule of 31st October 2005 and the Pipeline System was commissioned by MEM on 15th October 2005. Total amount including lease rental of the Project to be paid by GOS was USD 254 million, payable in 18 half yearly equated instalments of USD 14.135 million each starting from 30th December 2005. So far a total of 11 instalments amounting to USD 155.48 million has been received from GOS up to 30th December 2010. The balance 7 instalments amounting to USD 98.94 million due from June 2011 to June 2014 is yet to be received from GOS. ONGC Videsh has been making efforts including through diplomatic channels to realise the outstanding instalments.
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Lately, ONGC Videsh has served the Commercial and Legal Notices followed by Notice Invoking Arbitration to the GOS for payment of outstanding dues. The arbitration process is ongoing. Your Company’s share of gross investment (P) in pipeline was ₹ 6952.5 million (USD 158.01 million) till 31st March, 2020.
10. DIRECT SUBSIDIARIES OF ONGC VIDESH LIMITED
10.1 ONGC Nile Ganga BV (ONGBV) - ONGBV, a subsidiary of ONGC Videsh, is engaged in E&P activities directly or through its subsidiaries in Sudan,
South Sudan, Syria, Venezuela, Brazil and Myanmar. - ONGBV holds 25% PI in the Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about
0.097 MMT during FY’20. The EPSA of GNOP, Sudan was terminated on 31st August 2019. ONGBV also holds 25% PI in Greater Pioneer Operating Company (GPOC), South Sudan with its share of production of 0.564 MMT during FY’20.
- ONGBV holds 27% PI in BC-10 Project in Brazil through its wholly owned subsidiary ONGC Campos Ltda. with its share of oil and gas production of about 0.577MMtoe during FY’20.
- ONGBV holds 40% PI in San Cristobal Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal) BV with its share of oil & oil equivalent gas production of about 0.175 MMtoe during FY’20.
- ONGBV holds 8.347% PI in South East Asia Gas Pipeline Co. Ltd., (SEAGP) for Pipeline project, Myanmar. - ONGBV holds 16.66% to 18.75% PI in four Production Sharing Contracts in Al Furat Project (AFPC), Syria. Due
to force majeure adverse security condition in Syria, there was no production in AFPC project during FY’20. - ONGBV also holds 25% PI in Block BM-SEAL-4 located in deep-water offshore, Brazil through its wholly owned
subsidiary ONGC Campos Ltda. - ONGBV holds 40% shares in Falcon Oil and Gas B.V. (FOGBV), Abu Dhabi with IOC and BPRL which hold
30% shares each through their respective Dutch subsidiaries. 10.2 ONGC Amazon Alaknanda Limited (OAAL)
OAAL, a wholly-owned subsidiary of ONGC Videsh, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China. During FY’ 20, ONGC Videsh’s share of oil and oil equivalent gas production in MECL was about 0.419MMtoe.
10.3 ONGC Narmada Limited (ONL) ONL, a wholly owned subsidiary of ONGC Videsh, has been retained for acquisition of future E&P projects in Nigeria.
10.4 Imperial Energy Limited (IEL) IEL, a wholly-owned subsidiary of ONGC Videsh incorporated in Cyprus, has its main activities in the Tomsk region of Western Siberia, Russia. During FY’20, Imperial Energy’s oil and oil equivalent gas production was about 0.241 MMtoe.
10.5 Carabobo One AB Carabobo One AB, a wholly owned subsidiary of ONGC Videsh incorporated in Sweden, indirectly holds 11% PI in Carabobo-1 Project, Venezuela. During FY’20, Carabobo’s oil and oil equivalent gas production was about 0.094 MMtoe.
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10.6 ONGC BTC Limited ONGC (BTC) Limited, based in Cayman islands, a wholly owned subsidiary of ONGC Videsh andholding 2.36% participating interest in the Baku-Tbilisi-Ceyhan Pipeline (“BTC”) owns and operates 1,768 km oil pipeline running through Azerbaijan, Georgia and Turkey. The pipeline mainly carries crude from the ACG fields from Azerbaijan to the Mediterranean Sea.
10.7 Beas Rovuma Energy Mozambique Limited (BREML) BREML is a subsidiary incorporated in Mauritius jointly owned by ONGC Videsh and OIL in the ratio of 60:40. BREML holds 10% PI in Rovuma Area 1, Mozambique.
10.8 ONGC Videsh Atlantic Inc.(OVAI) ONGC Videsh Atlantic Inc. a wholly owned subsidiary of ONGC Videsh, was incorporated in Texas, United States of America, to provide technical and administrative support in United States of America. A G&G Centre of Excellence has also been established by OVAI in Houston with required infrastructure and manpower to provide specialized G&G service to your Company.
10.9 ONGC Videsh Rovuma Limited (Mauritius) ONGC Videsh Rovuma Limited a wholly owned subsidiary of ONGC Videsh, was incorporated in Mauritius for the proposed structuring of 10% PI in ONGC Videsh’s Rovuma Area 1, Mozambique. Subsequent to the transfer of 10% PI directly held by ONGC Videsh in the Area 1 to ONGC Videsh Rovuma Limited (OVRL) incorporated in India, the process of winding up the subsidiary with effect from 24th March 2020 has been initiated.
10.10 ONGC Videsh Singapore Pte. Ltd. (OVSL) ONGC Videsh Singapore Pte. Ltd., a wholly owned subsidiary of ONGC Videsh was incorporated on 15th April 2016 in Singapore. Through its 100% subsidiary ONGC Videsh Vankorneft Pte. Ltd. (OVVL), it holds 26% shares inJSC Vankorneft in Russia and PEL-0037 block in Namibia. OVVL submitted notice of complete withdrawal from PEL-0037 block in Namibia in January 2020.
10.11 Indus East Mediterranean Exploration Ltd. (IEMEL) Indus East Mediterranean Exploration Ltd., a wholly owned subsidiary of ONGC Videsh was incorporated on 27th February 2018. It is engaged in E&P activities in Israel.
10.12 ONGC Videsh Rovuma Limited ONGC Videsh Rovuma Limited, a wholly owned subsidiary of ONGC Videsh, was incorporated on 15th April, 2019 in India. Subsequent to corporate and regulatory approvals, the 10% PI directly held by ONGC Videsh in the Area 1 Mozambique has been transferred to ONGC Videsh Rovuma Limited with effect from 1st January 2020.
11. JOINT VENTURES & ASSOCIATE COMPANIES
11.1 ONGC Mittal Energy Limited (OMEL) ONGC Videsh along with Mittal Investments Sarl (MIS) promoted OMEL, a joint venture company incorporated in Cyprus. ONGC Videsh and MIS together hold 98% equity shares of OMEL in the ratio of 49.98:48.02. Balance 2% share is held by SBI Capital Markets Ltd. OMEL also holds 1.20% of the issued share capital of ONGBV by way of its Class-C shares issued exclusively for AFPC Syrian Assets.
11.2 SUDD Petroleum Operating Company (SPOC) SUDD Petroleum Operating Company is a Joint Operating Company of partners for operations of Block 5A, South Sudan. Your Company holds 24.125% PI in Block 5A in South Sudan Other partners in the Block are Petronas (67.875% PI) of Malaysia and Nilepet of South Sudan (8% PI).
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11.3 Mansarovar Energy Colombia Limited (MECL) Mansarovar Energy Colombia Limited was created in September, 2006 by merging the technologies and capitals of ONGC Videsh and SINOPEC of China (Shareholders). MECL, incorporated in Bermuda, is a 50:50 Joint Venture between ONGC Amazon Alaknanda Limited and Sinopec International Petroleum E&P Hong Kong Overseas Limited from China. All the company's operations are conducted through its branch at Bogota (Colombia).
11.4 Himalaya Energy Syria B.V. Himalaya Energy Syria B.V. (“HESBV”) is a Joint Venture Company of ONGC Nile Ganga B.V., (a wholly owned subsidiary of ONGC Videsh Limited) and CNPC Coop, an affiliate of China National Petroleum Company International, each holding 50% shares of HESBV. HESBV acquired the entire share capital of Petro-Canada Nina GmbH from Petro-Canada Nina GmbH, Germany, on 31st January 2006. HESBV in turn holds the entire share capital of HES Nina GmbH (“HESN”) and HESN through three German entities i.e. HES Sham, HES Dez and HES Gas Syria holds 33.33% to 37.5% Participating Interest (PI) in four Production Sharing Contracts (PSCs) in Syria.
11.5 Petro Carabobo S. A. In 2010, a Joint Venture (JV) company namely ‘PetroCarabobo S. A. (PCB) was formed for developing the Carabobo-1 North (203 sq.km.) and Carabobo-1 Central (180 sq.km.) blocks located in the Orinoco Heavy Oil Belt in eastern Venezuela. ONGC Videsh holds 11% PI in Carabobo-I project through its subsidiary Carabobo One AB. Repsol holds 11% PI, IOCL and OIL holds 3.5% PI each in the project. The CorporaciónVenezolana del Petróleo (CVP), a subsidiary of Petróleos de Venezuela S.A. (PdVSA), Venezuela's state oil company, holds the remaining 71% PI. The Mixed Company was incorporated as Petro Carabobo S.A. (PCB) in 2010
11.6 Carabobo Ingenieria Y Construcciones, S.A. (CICsa) CICsa is a special purpose company incorporated on January 21, 2011, by Minority Shareholders (MSH) of Carabobo -1 Project in order to execute the activities delegated as per Annex K of the mixed company Contract for the management, coordination, and supervision of facilities owned by Mixed Company PCB from construction to commissioning & obtaining third party financing. ONGC Videsh hold 37.9 % participating Interest in CICsa along with Repsol 37.9 % PI and INDOIL 24.2 % PI. ONGC videsh was the operator of CICsa from January 2017 to 20th January 2020 for period of three year and accordingly operatorship was handed over to Repsol w..e..f. 21stJanuary 2020 for a period of three year.
11.7 PetroleraIndovenezolana S.A.(PIVSA) In 2008, a Joint Venture (JV) company PIVSA was formed for the development of San Cristobal field. The JV Company (Mixed Company) was registered on 8th April 2008 in which PDVSA holds 60% equity through its subsidiary CVP and ONGC Videsh Ltd holds 40% equity through ONGC Nile Ganga (San Cristobal) BV (ONGSCBV), the Netherlands. ONGSCBV is wholly-owned subsidiary of ONGC Nile Ganga BV (ONGBV), the Netherlands, which in turn is a subsidiary of ONGC Videsh Ltd.
11.8 South East Asia Gas Pipeline Company Ltd. ONGC Nile Ganga B.V. incorporated a wholly owned subsidiary (June 2010) ONGC Caspian E&P BV (OCEBV) to participate in South East Asian Gas Pipeline Company Limited (SEAGP) with 8.3417% participating interest. The shareholders in SEAGP (South East Asian Gas Pipeline Company Limited) are CNPC (China National Petroleum Corporation) (50.9%), MOGE (7.365%), PIC (POSCO INTERNATIONAL) (25.041%), OCEBV (8.347%), GAIL and KOGAS (KOREA GAS CORPORATION) 4.1735 % each. OCEBV has since merged with ONGBV in FY 2019-20.
11.9 Tamba B.V. ONGBV is a wholly-owned subsidiary of ONGC Videsh which holds 27% Shareholding in Tamba B.V. Tamba B.V. is a Dutch company incorporated in 2006, and based in Hague, Netherlands, whose Shareholders are ONGBV (27%), Shell (50%) and QP (23%). The business of Tamba B.V. is to acquire, charter or lease equipment and sell, charter or lease these assets to facilitate the development and production of hydrocarbons in the BC10 concession in the Campos Basin area in Brazil.
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11.10 JSC Vankorneft, Russia ONGC Videsh holds 26% equity in JSC Vankorneft through its indirect wholly owned subsidiary ONGC Videsh Vankorneft Pte Limited (OVVL), Singapore. Other equity holders in JSC Vankorneft are Rosneft (Operator) – 50.1% and Indian consortium (IOCL, OIL & BPRL) – 23.9%. JSC Vankorneft holds the license for Vankor field in Russia.
11.11 MozLNG1 Holding Company Ltd. ONGC Videsh, through its wholly-owned Indian subsidiary ONGC Videsh Rovuma Limited (OVRL) holds 10% direct shareholding in MozLNG1 Holding Company Ltd incorporated in Abu Dhabi Global Market (ADGM) by the Area 1 Concessionaires as part of the project financing structure for initial two train LNG development of Area 1 Mozambique. ONGC Videsh also holds 6% indirect shareholding in MozLNG1 Holding Company Ltd through BREML. MozLNG1 Holding Company Ltd (HoldCo) holds 100% shares of both Mozambique LNG1 Company Pte Ltd incorporated at Singapore and Moz LNG1 Financing Company incorporated ADGM (UAE).
11.12 Falcon Oil & Gas B.V. (FOGBV) Falcon Oil & Gas B.V. was incorporated in Netherlands by your Company, to acquire the 10% interest in the Lower Zakum Concession of ADNOC Offshore, UAE with BPRL and IOC. Your company holds 40% equity in FOGBV through ONGBV. Other shareholders in FOGBV are IOC (30%) and BPRL (30%) through their respective Dutch Subsidiaries.
12. OVERSEAS OFFICES AND REGISTERED OFFICES The overseas offices of your Company are located in Ho Chi Minh City (Vietnam), YuzhnoSakhalinsk (Russia), Tehran (Iran), Tripoli (Libya), Caracas & Puerto la Cruz (Venezuela), Astana &Atyrau (Kazakhstan), Bogota (Colombia), Damascus (Syria), Baku (Azerbaijan), Dhaka (Bangladesh), Yangon (Myanmar), Wellington (New Zealand) and Maputo (Mozambique). ONGC Nile Ganga BV has its registered office in Amsterdam (Netherlands), offices in Khartoum (Sudan), Juba (South Sudan) and its subsidiaries have offices in Rio de Janeiro (Brazil) and Nicosia (Cyprus). ONGC Narmada Limited, ONGC Amazon Alaknanda Limited and ONGC Videsh Atlantic Inc. have their registered offices in Lagos (Nigeria), Hamilton (Bermuda) and Houston (Texas, USA) respectively. Imperial Energy Limited has its registered office in Cyprus and its subsidiaries have offices in Cyprus, Moscow, Tomsk and Raduzhny(Russia). Carabobo One AB has its registered office in Sweden. ONGC BTC Limited has its registered office in Cayman Island. ONGC Videsh Singapore Pte. Ltd., ONGC VideshVankorneft Pte. Ltd., and Mozambique LNG 1 Company Pte. Ltd. have their registered office in Singapore. Indus East Mediterranean Exploration Ltd. has its registered office in Israel.
13. INFORMATION TECHNOLOGY Your Company keeps itself abreast of the latest advancements in the field of information technology so as to adopt the same to the extent required in its pursuit of achieving operational excellence and incorporating industry best practices in IT area. Your company exercises financial and business control over its overseas operations through a common ERP software and maintains state-of-the-art video conferencing system across several projects and subsidiaries. During the last year, following further initiatives have been successfully implemented by your company:-
- New G&G Data Center based on Hyper Coverage private cloud virtual compute platform for virtualization of G&G applications. The new system has replaced old Workstations with virtual workstations to provide anywhere anytime global secure access to G&G applications and facilitate multi-location collaboration.
- Achieved ISO 27001 certification for its Data Centers including IT Operations & Services, Infrastructure, and maintenance.
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- During COVID19 lockdown, processes and systems were implemented at short notice to enable smooth and successful transition to securely Work From Home and support business operations with minimal disruptions.
- Integrated Govt. e-Marketplace (GEM) with the Company’s ERP system for smooth procurement transactions on the portal.
- ERP and Email Servers at Disaster Recovery Site Mumbai were linked successfully to facilitate utilization of data link redundancy between the two independent servers.
Several other digital initiatives are in pipeline for business excellence of your company. These include implementation of advanced IT Security technologies like Data Leak Prevention (DLP), Advanced Threat Persistence (ATP), Network Access Control (NAC), Mobile Device Management (MDM), etc.
14. HUMAN RESOURCE DEVELOPMENT A. Your Company has been operating with pool of highly skilled manpower provided by the Parent Company
ONGC, in the core areas of E&P globally. Your Company calibrates its manpower levels and quality with its expanding requirements and challenges in various parts of the world. The total manpower of your Company as on 31st March, 2020 was 225 employees posted in Headquarters Delhi. In addition, global manpower of your Company employed by overseas projects in foreign locations was 1769 (including 65 employees of ONGC Videsh posted abroad) as on 31st March 2020 (based on proportionate PI of your Company in overseas projects).
B. Disclosure under the sexual harassment of women at workplace (Prevention, prohibition and Redressal)
Act, 2013: Your Company has complied with the provisions under the Sexual Harassment of women at workplace (Prevention, Prohibition and Redressal) Act, 2013 including constitution of Internal Complaints Committee (ICC) for dealing with complaints on sexual harassment of women at workplace. One case received in the year 2017 is currently sub-judice before Hon’ble High Court, Delhi.
The following is a summary of sexual harassment complaint received and disposed off during the year 2019-20: Sl. No. Year No. of complaints received No. of complaints disposed off
1. 2019-20 NIL NIL
15. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY Your Company continues to make concerted efforts to spread and promote Official Language. During the year, Hindi Fortnight was organized from 14th to 28th September, 2019 In the Hindi fortnight, large number of employees participated in Hindi competitions and successful ones were awarded. Your Company's In-house magazines "Aadharshila", Hindi fortnight awardees compilation, Corporate Brochure and Annual Reports were also printed in Hindi. Official Language Implementation Committee meetings are held regularly. Statutory advertisements are also released in Hindi. Quarterly Hindi Progress Reports of the Company are sent and Hindi workshops are organized. Your Company was represented by its senior officials in the Town Official Language Implementation Committee Meetings and officials also participated in Rajbhasha Sammelan and workshops organized by NARAKAAS. Your company was inspected by Official Committee of Parliament on Official Language, on Feb 26, 2019 and your Company has received compliments for doing good work during this inspection.
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16. BOARD OF DIRECTORS
16.1 Details of changes in Directors since 1st April 2019: Shri Shashi Shanker, Chairman has been entrusted with additional charge of Managing Director upto 31st
January, 2021 by Ministry of Petroleum & Natural Gas. Shri Alok Kumar Gupta has been appointed as Director (Operations) on 04th September, 2019. Shri Ajai Malhotra, ceased to be a Director with effect from 20th November, 2019. The Board places on record its appreciation for his contribution during his tenure. Dr. Kumar V. Pratap ceased to be a Director with effect from. 31st March, 2020. The Board places on record its appreciation for his contribution during his tenure. Shri B. Purushartha has been appointed as Govt. Nominee Director with effect from 22nd April.2020.
16.2 None of the Directors of your Company is disqualified under the provisions of section 164(2) of the Companies Act 2013 read with Rule 14 of the Companies (Appointment and Qualification of Directors) Rules 2014.
17. AUDITORS M/s Thakur, Vaidyanath Aiyar & Co. and M/s SPMR & Associates, Chartered Accountants were appointed as Joint Statutory Auditors of your Company by the Comptroller & Auditor General (C&AG) of India for the financial year 2019-20.
18. AUDITORS’ REPORT ON THE ACCOUNTS The comments of the Comptroller & Auditor General of India (C&AG) form part of this Report and are attached as Annexure ‘B’. There is no qualification in the Auditors Report on the Financial Statements of the Company.
18A REPORTING OF FRAUDS: There have been no instances of fraud reported by the Statutory Auditors under Section 143 (12) of the Act read with relevant Rules framed thereunder.
19. SECRETARIAL AUDITOR The Board has appointed M/s S.G.S. Associates, Company Secretary in practice to conduct Secretarial Audit for the financial year 2019-20. Secretarial Audit report for the financial year ended 31st March, 2020 is annexed to this report.
20. SECRETARIAL STANDARDS: The Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.
21. COST AUDIT In terms of para 7 of Companies (Cost Records and Audit) Rules, 2014 and Para 4 (3) of the Companies (Cost Records and Audit) Amendment Rules, 2014, the requirement for cost audit do not apply to ONGC Videsh. Accordingly such accounts and records are not maintained.
22. DETAILS OF MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY OCCURRING BETWEEN THE DATE OF FINANCIAL STATEMENTS AND BOARD REPORTS There are no material changes and commitments affecting the financial position of the Company occurring between the date of financial statements and Board’s Report.
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23. IMPACT OF CORONAVIRUS PANDEMIC The outbreak of coronavirus (“COVID-19”) continues to spread across the globe including India, resulting in significant volatility in Oil & Gas prices and a significant decrease in global demand. The global coronavirus (“COVID-19”) pandemic has caused significant economic and social disruption worldwide. In view of the nationwide lockdown announced by the Government of India as also the various host counties where projects of the Company are located to control the spread of COVID-19, some of the business operations of the Company were temporarily disrupted. The Company has resumed its affected operations in a phased manner as per government directives of the host countries. The Company has ensured safety and sanitization measures across its various locations and is following increased protocols to ensure all involved are safe and secure. The Company is following the directives from Government of India on the subject. We anticipate that company’s physical & financial performance in FY’21 may be impacted due to low prices caused by demand destruction and production cut under OPEC+ agreement.
24. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS/ COURTS, IF ANY. There are no significant or material orders passed by the Regulators or Courts or Tribunals which would impact the going concern status of your Company and its future operations.
25. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 Your Company is engaged in the business of Exploration & Production of crude oil and natural gas, which is covered under the exemption provided under Section 186(11) of the Company Act, 2013. Accordingly, the details of loans given, investment made or guarantee or security given by your Company to its subsidiaries and associates are not required to be reported.
26. DETAIL RELATING TO DEPOSITS COVERED UNDER CHAPTER V OF THE COMPANIES ACT, 2013 Particulars Amount (in ₹) Deposits accepted during the year ‘Nil’ Deposits remaining unpaid or unclaimed as at the end of the year ‘Nil’ Default in repayment of deposit or payment of interest thereon during the year ‘Nil’
27. PARTICULARS OF RELATED PARTY TRANSACTIONS All the related party transactions entered during the year were in the ordinary course of business and on an arm’s length basis except the transaction between ONGC Videsh and ONGC Videsh Rovuma Limited for transfer of Participating Interest (PI) in Area 1 Mozambique from ONGC Videsh to ONGC Videsh Rovuma Limited. The related party transactions were placed before the Audit Committee for omnibus approval specifying the nature, value and any other related terms and conditions of the transactions. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large. Transactions to be reported in Form AOC-2 in terms of Section 134 of the Act read with Companies (Accounts) Rules, 2014 is placed at Annexure - A. Further the details of the transactions with related parties are provided in the Company’s financial statements in accordance with the Indian Accounting Standards under note - 42 of the Standalone Financial Statement and note - 46 of the Consolidated Financial Statements. The Related Party Transactions Policy as approved by the Board of Directors of the Company has been uploaded on the website of the Company at http://www.ongcvidesh.com/investor-page/
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28. IMPLEMENTATION OF VIGIL MECHANISM ONGC Videsh, being a PSU has Vigilance set-up, which facilitates an environment enabling people to work with integrity, efficiency and in a transparent manner, upholding highest ethical standards for the organization. To achieve this objective, the Vigilance Department carries out preventive, proactive and punitive actions with greater emphasis in the preventive and proactive functions. ONGC Videsh has provided ample opportunities to encourage the employees to become whistle blowers (employees who voluntarily and confidentially want to bring the unethical practices, actual or suspected fraudulent transactions in the organization to the notice of the competent authority for the greater interest of the organization and the Nation). It has also ensured a robust mechanism within the same framework to protect them (whistle blowers) from any kind of harm. It is hereby affirmed that no personnel has been denied access to the Audit Committee. Disciplinary action under applicable Conduct, Discipline and Appeal Rules, 2008 (Amended’ 2014) and Certified Standing Orders were taken by the Company for irregularities/ lapses. The numbers of disciplinary matters related to vigilance cases disposed-off during the year 2019-20 were 02. The number of such cases pending at the end of year 2019-20 were 02. The aforesaid cases pertain to irregularities such as indiscipline, dishonesty, negligence in performance of duty or neglect of work etc. The Company continuously and regularly endeavors to ensure fair and transparent transactions through technology interventions and system/ process review in consultation with Central Vigilance Commission and Internal Vigilance set-up. An executive of General Manager level with direct reporting to Chief Vigilance Officer, ONGC has been deputed from ONGC to ONGC Videsh to look after the vigilance matter.
29. STATUTORY DISCLOSURES
29.1 Number of meetings of the Board Nine meetings of the Board of Directors were held during the year. For further details, please refer Report on Corporate Governance.
29.2 Number of meeting of Independent Directors Two meeting of Independent Directors was held during FY’20. The Independent Directors have submitted declaration that they meet the criteria of Independence as per Section 149(6) of the Companies Act, 2013.
29.3 Declaration by Independent Directors During the year, all the Independent Directors have met the requirements specified under Section 149 (6) of the Companies Act, 2013 for holding the position of ‘Independent Director’ and necessary declaration from each Independent Director under Section 149 (7) was received.
29.4 Annual Return In terms of the requirement of Section 92(3) of the Companies Act, 2013, Annual Return in prescribed Form MGT 7 is placed on website of the Company at http://www.ongcvidesh.com/investor-page/
29.5 Particulars of Employees and related disclosures Your Company being a Government Company, the provisions of Section 197(12) of the Companies Act, 2013 and relevant Rules issued thereunder do not apply in view of the Gazette notification dated 5thJune, 2015 issued by Government of India, Ministry of Corporate Affairs The terms and conditions of the appointment of Functional Directors are subject to the applicable guidelines issued by the Department of Public Enterprises, Government of India. The salary and terms and conditions of the
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appointment of Company Secretary, a Key Managerial Personnel of the Company, is in line with the parameters prescribed by the Government of India.
29.6 Disclosure of a report on the performance and financial position of each of the subsidiaries, associates and joint venture companies included in the consolidated financial statement Disclosure of a report on the performance and financial position of each of the subsidiaries, associates and joint venture companies included in the standalone financial statement in the form AOC-1 forms part of the Financial Statements.
29.7 Conservation of energy, Technology absorption and Foreign exchange earnings and Outgo for the year 2019-20 Information required under Section 134(3)(m) of Companies Act 2013, read with Rule 8(3) of the Companies (Accounts) Rules 2014, regarding Conservation of energy, Technology Absorption and Foreign Exchange earnings and earnings and outgo during the Financial year 2019-20 is given below: A. Steps Conservation of energy: Your Company does not have operations in India and as such the clauses are
not relevant/ applicable. a. Steps taken or impact on conservation of energy: Not Applicable; b. Steps taken by the Company for utilizing alternate sources of energy: Not Applicable; c. Capital investment on energy conservation equipment: NIL
B. Foreign exchange earnings and outgo:
a. Foreign Exchange earning in terms of actual inflows (on accrual basis) during the year: ₹ 133,987.83 Million. b. Foreign Exchange expenditure during the year: ₹ 128,014.95 Million.
30. CORPORATE GOVERNANCE REPORT
Your Company strives to attain highest standards of corporate governance. A separate section on Corporate Governance is annexed and forms part of the Board’s Report.
31. BUILDING A HEALTHY COMMUNITY Your Company has always encouraged inculcating a culture of healthy and active lifestyle to its employees and spreading the same in the society at large. In this endeavor, your Company organized various programs during the financial year 2019-20 such as World Environment day on 5th June 2019, Swachh Bharat Pakhwada from 15th September to 2nd October, 2019, International Day of Yoga on 21st June 2019 and National Safety Week from 4th to 11th March 2020. Employees and their family members including overseas offices actively participated in these programmes.
32. IMPLEMENTATION UNDER THE RIGHT TO INFORMATION ACT, 2005 (RTI ACT) A mechanism has been set up in the organization to deal with the requests received under the RTI Act. There is one Central Public Information Officer (CPIO) & One First Appellate Authority (FAA) based at Registered Office, in Delhi to redress the issues under the RTI Act. No RTI application was carried forward from the year 2018-19. Further 16 RTI applications were received during the period from April 2019 to March 2020. All these RTI applications were replied. One application was replied in April 2020. During the year, no RTI applications were transferred from CPIO- ONGC Videsh to other Public authorities. 03 RTI matter came up for First Appeal. All of these 03 matters were attended by the Company and follow-up action was taken, to dispose off by First Appellate Authority (FAA) of ONGC Videsh Limited.
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33. AWARDS AND RECOGNITIONS: During the financial year 2019-20, your Company was conferred with ICICI Lombard & CNBC-TV18 “India’s Risk Management Award” in Public sector unit of the year category.
34. ENTERPRISE RISK MANAGEMENT AND HEALTH, SAFETY AND ENVIRONMENT
34.1 Enterprise Risk Management (ERM) Your Company has well established Enterprise Risk Management System in line with ISO 31000:2018, a globally recognized Standard on Risk Management. Risks along with their risk drivers and mitigating factors have been mapped and Risk registers are in place. Your company has established SAP GRC-Risk module alongwith Risk dashboard for optimal decision making and compliance.
34.2 Health, Safety and Environment (HSE) Your Company strives to ensure safe operations that protect people, environment, communities and material assets. During the year QHSE management system was re-certified for next three years for ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018. No fatal accident reported from any of the Project in last three years and Loss time injury frequency (LTIF) is also below the international statistics. Sustainability report of ONGC Group for FY’19 (1st April 2018 to 31st March 2019) is based on GRI G4 guidelines with Oil & Gas Sector Supplement and is externally assured ‘Core’ report.
35. CORPORATE SOCIAL RESPONSIBILITY (CSR) Your Company, having overseas operations, understands its responsibility to contribute to the communities and economies of the countries in which it operates. Your Company has been achieving a fine balance of economic, environmental and social imperatives based on the factors implemented into the policy structure and decisions of CSR Committee. Your Company makes valuable contribution in many ways such as payment of tax revenues to governments; by investing in education and training and improving employment opportunities for nationals; providing medical/ sports/ agricultural facilities to the local community, etc. In terms of requirements of the Companies Act, 2013, your Company constituted a Corporate Social Responsibility and Sustainability Committee and the Chairman of the Committee is Govt. Nominee Director. As the entire E&P operations of ONGC Videsh are located outside India, the scope of the Corporate Social Responsibility & Sustainability (CSR&S) Policy is governed by the contractual obligations/ project requirements and the international conduct regulations of the host countries for undertaking welfare programs in local areas of operations. Since no business activity of ONGC Videsh is carried out in India, the eligible “Net Profit” for the purpose of CSR is Nil for FY’20. Accordingly, the Annual Report on CSR activities may be treated as ‘Nil’.
36. COMPLIANCE OF MINISTRY OF MICRO SMALL AND MEDIUM ENTERPRISES (MSME) REGULATION 1. During FY 2019-20, ONGC Videsh has complied with the annual procurement target of 25% from
MSEs. However, the sub-target of 4% procurement from MSEs owned by SC/ ST entrepreneurs and 3% from MSEs owned by Women Entrepreneur could not be achieved due to lack of participation in the tenders invited in spite of considerable efforts.
2. ONGC Videsh Indian Office awarded about 56.93% of the total annual procurement to MSEs, out of which 1.48% procurement was made from MSEs owned by Women Entrepreneurs and 0.80% procurement was made from MSEs owned by SC/ ST.
37. DIRECTORS RESPONSIBILITY STATEMENT Pursuant to Section 134(3) (c) of the Companies Act 2013, your Director(s) confirm the following in respect of the audited Annual Accounts for the financial year ended 31st March 2020:
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1. That in the preparation of annual accounts, the applicable accounting standards have been followed and that there are no material departures;
2. That Directors have selected such accounting policies as described in the Notes to the Accounts of the Financial statements and applied them consistently as stated in the annual accounts and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March 2020, and of the profit of the Company for the year ended on that date;
3. That Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities;
4. That Directors have prepared the annual accounts on a “going concern” basis; 5. That Directors have laid down internal financial controls to be followed by the Company and such internal
financial controls are adequate and are operating effectively; and 6. That Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and
that such systems are adequate and are operating effectively.
38. COMMITTEE(S) The details of Committees are given separately in the Corporate Governance Report.
39. AUDIT COMMITTEE In compliance with Section 177(8) of the Companies Act, 2013, the details regarding Audit Committee is provided under the Corporate Governance Report, which forms part of the Annual Reports. There has been no instance where the recommendations of the Audit Committee have not been accepted by the Board of Directors.
40. INTERNAL FINANCIAL CONTROL SYSTEM Your Company has put in place adequate Internal Financial Controls by laying down policies and procedures to ensure the efficient conduct of its business; the safeguarding of its assets; the prevention and detection of frauds and errors; the accuracy and completeness of the accounting records; and the timely preparation of reliable financial information, commensurate with the operations of the Company. Effectiveness of Internal Financial Controls is ensured through management reviews, control self-assessment and independent testing by the Internal Audit Team appointed by your Company indicating that your Company has adequate Internal Financial Controls over Financial Reporting in compliance with the provisions of the Companies Act, 2013 and such Internal Financial Controls were operating effectively. The Audit Committee reviews the Internal Financial Controls to ensure their effectiveness for achieving the intended purpose. Independent Auditors Report on the Internal Financial Controls of the Company in terms of Clause (i) of Sub-Section 3 of Section 143 of the Companies Act, 2013 by the Statutory Auditors is attached along with the Financial Statements.
41. FINANCIAL ACCOUNTING The Financial Statements have been prepared in compliance with Indian Accounting Standards (Ind-AS) issued by the Institute of Chartered Accountants of India (ICAI) effective from 1st April, 2016 and applicable provisions of the Companies Act, 2013.
42. DETAILS OF OTHER KEY MANAGERIAL PERSONNEL AS PER RULE 8 (5) (III) OF THE COMPANIES (ACCOUNTS) RULES, 2014 Upon the cessation of Shri Narendra K. Verma as Managing Director, the Ministry of Petroleum & Natural Gas vide its communication no. CA-31012/1/2018-CA-PNG (27854) dated 26th February, 2019 entrusted the additional charge of the post of Managing Director, ONGC Videsh to Shri Shashi Shanker, CMD, ONGC for a period of 3 months from 1st February, 2019 to 30th April, 2019 which was further extended upto 31st January, 2021.
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43. REDEMPTION OF DEBENTURES
The Company had issued 8.54% 10 Years Unsecured Non- Convertible Redeemable Debentures Series II of ₹ 370 crore on 6th January, 2010 and the Debenture were listed in Debt Market segment of National Stock Exchange of India Limited. The Debenture Series II was due for redemption alongwith interest thereon, on 6th January 2020. Accordingly, the Company has paid in full principal amount together with interest thereon to Debenture holders and informed to National Stock Exchange and Debenture Trustee. Thus, presently the Company is an Unlisted Public Company.
44. PERFORMANCE EVALUATION The provisions of Section 134(3)(p) of the Companies Act, 2013 relating to evaluation of Board/ Directors do not apply to your Company since necessary exemptions are provided to all government companies. The Company being a Government Company, the provisions relating to Performance Evaluation of Directors stand exempted.
45. COMPANY'S POLICY ON DIRECTORS'APPOINTMENT AND REMUNERATION Your Company has constituted the Nomination and Remuneration Committee as required under Section178 (1) of the Companies Act, 2013. Being a Central Public Sector Enterprise (CPSE), Director’s appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under Sub-Section 3 of Section 178 of the Companies Act, 2013 are made/fixed by the Government of India. The Appointment and Remuneration Policy is also exempted vide MCA notification No. G.S.R. 463(E) dated 5th June, 2015 for Government Companies.
46. ACKNOWLEDGEMENT Your Directors acknowledge with deep appreciation the valuable guidance and support extended by the Government of India, especially the Ministry of Petroleum & Natural Gas, Ministry of Finance, Ministry of External Affairs, Department of Public Enterprises, Indian Embassies/ High Commissions abroad and the Reserve Bank of India etc. Your Directors’ acknowledge the constructive suggestions received from Auditor(s) and the Comptroller & Auditor General of India and are grateful for their continued support and cooperation. Your Directors also wish to place on record their deep sense of appreciation for the dedicated services by the employees of the Company. Your Directors recognize that the achievements of your Company would not have been possible without the unstinted and total support from the Parent Company Oil and Natural Gas Corporation Limited.
On behalf of the Board of Directors
Sd/- (Shashi Shanker)
Chairman Place: New Delhi Date: 2nd September, 2020
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73
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
1. INTRODUCTION ONGC Videsh Limited (ONGC Videsh) is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the flagship National Oil Company and a Central Public Sector Enterprise/ Undertaking (CPSE/ CPSU) of the Government of India, under the administrative control of the Ministry of Petroleum & Natural Gas (MoP&NG). ONGC Videsh is engaged in prospecting for and acquisition of oil and gas acreages outside India for exploration, development, production and transportation of oil and gas. ONGC Videsh was incorporated as Hydrocarbons India Private Limited, on 5th March 1965 with registered office in New Delhi to perform international exploration and production business. The Company was rechristened as ONGC Videsh Limited on 15th June 1989. With widening of the gap between the energy demand and domestic production, participation in overseas oil and gas assets for equity oil was considered as an option towards augmenting energy security of the country. In January, 2000, ONGC Videsh was granted special empowerment by the Government of India. This empowerment facilitated better and smooth functioning of the Company and enhanced the company’s ability to compete in the international environment. This resulted in a string of successful acquisitions post January, 2000. Your Company has participation in 37 oil and gas projects in 17 countries either directly or through wholly owned subsidiaries/ joint venture companies viz. Azerbaijan (2 projects), Bangladesh (2 Projects), Brazil (2 projects), Colombia (7 projects), Iran (1 project), Iraq (1 project), Israel (1 project), Kazakhstan (1 project), Libya (1 project), Mozambique (1 Project), Myanmar (6 projects), Russia (3 projects), South Sudan (2 projects), Syria (2 projects), UAE (1 project), Venezuela (2 projects), and Vietnam (2 projects). Out of these 37 projects, ONGC Videsh is Operator in 13 projects; Joint Operator in 6 project and remaining 18 are non-operated projects. Your Company has adopted a balanced portfolio approach and has a combination of 14 producing, 4 discovered, 16 exploration and 3 pipeline projects. Your Company exited from two projects in Sudan, viz., Greater Nile Oil Project (GNOP) and Sudan Pipeline Project in FY 2019-20. Your Company has also relinquished its stake in two exploratory projects, Viz., PEL0037, Namibia, and PEP57090 New Zealand. Highlights
ONGC Videsh achieved the highest ever production of 14.981 MMTOE in FY2019-20. ACG, Azerbaijan: The execution of Azeri Central East (ACE) project, involving engineering, fabrication and installation of processing and drilling rig platform, commenced in April 2019. The project is scheduled to deliver first oil in the year 2023 and envisages cumulative incremental production of 300 MMBBLS. Sakhalin 1, Russia : During 2019-20, Sakhalin-1 Consortium decided to build 6.2 MT/year Russian Far East (RFE) LNG plant as a part of Chayvo Phase-2 gas development. Phase 2 development envisages to monetize huge gas reserves, in excess of 6 TCF, pending for long due to lack of suitable monetization option. Sakhalin-1 project achieved highest ever yearly average production of 258.5 KBOPD. Rovuma Area-1, Mozambique:
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Area 1 Concessionaires have taken Final Investment Decision (FID) for the initial two-train Golfinho/Atum Project on 18th June 2019. EPC contract for construction of onshore facilities and EPCI contract for construction of offshore facilities were executed with CCS JV (consortium of Saipem, McDermott and Chiyoda) and MTV (consortium of Technip and Van Oord) respectively. Area-1 has executed LNG Sale Purchase Agreements (SPAs) for a significant volume. Area-1 consortium obtained First Mover status with approval of the Shared Facilities Construction Proposal by Govt. of Mozambique (GoM) on 20th March 2019. This enables Area-1 to lead the construction of the onshore facilities shared by Area-1 and Area-4.
GPOC, South Sudan: First oil after commencement of operations was achieved from El-Nar and El-Toor field of Block 1, 2 & 4 on 30th April 2019 and 30th May 2019 respectively. Presently the Block is producing crude oil @60,000 bbl/day (approx). SPOC, South Sudan: Block 5A EPSA extension has been offered by Government of South Sudan up to the year 2037 along with the extension of exploration period for 54 months i.e. till July 2024. The resumption activities are underway in the field, while execution of addendum to EPSA is awaited. CPO-5, Colombia: The Block is currently producing from two wells. Further 3D seismic API and drilling of exploration and appraisal wells has been planned. BM SEAL-4, Brazil:
Two wells were drilled during the year, and initial results are encouraging. Further studies are in progress. The first well MB-2 was drilled up to 5500m (TD) at a water depth of 2630m and encountered 31.6m net gas column in Campanian-22 sand and ~10m net oil column in Campanian-21 sand. During Testing (DST) of Campanian-22 reservoir, the well flowed approx. 600,000 m3/d of gas and 475 m³/d of condensate at choke size of 40/64”. The second well MB-9, additional exploratory well above MWP, was drilled up to 5630 m (TD) at a water depth of 2656m and encountered oil in 52.7 m net in Campanian-13 sand.
A1, A3 Myanmar: Under new Exploration Program in Block A-3, drilling of 3 exploratory wells commenced on 24th November, 2019. Drilling of first well Kissapanadi was completed on 26.12.2019, with insignificant gas show. Second well, Mahar-1 has been established as a new gas discovery with an estimated GIIP of 1,056 BCF (2C). Well flowed gas at 38 MMSCFD with 12 m net pay interval Drilling of third exploratory well Yan Aung Myin-1 was completed on 04.04.2020, with insignificant gas show.
Block 06.1, Vietnam: Drilling of exploratory well PLDCC-1X-ST1 has achieved success with the discovery of PLDCC field. Plan is in progress for an appraisal well drilling in 2020. PSC Extension for the block 06.1, in view of discovery in PLDCC, is under process.
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5 year Notes of USD750 million which were due for redemption on 15th July 2019 were duly redeemed by raising a syndicated loan facility of USD 500 million from international commercial banks and the balance requirements were met from internal accruals.The 8.54% Unsecured Non-Convertible redeemable Bonds in the nature of Debentures of Rs. 370 crores which were listed on National Stock Exchange were duly redeemed on 6th January 2020. The Company refinanced USD 1,000 million during March-20 out of USD 1,775 million falling due in Nov-20. ONGC Videsh won The India Risk Management Award constituted by ICICI Lombard & CNBC-TV18, second time in a row in the category of Best Risk Management Framework and Systems – PSU.
2. INDUSTRY SCENARIO The Oil & Gas industry began on a relatively stable note this fiscal. Oil prices demonstrated a stability for the major part of the year, a stark contrast from the earlier fiscal, when oil prices which were at about USD 70/barrel in March 2018 increased to over USD 85 / barrel in October 2018 (21% increase from April), and then nosedived to USD 50/barrel by December 2018 (43% decrease from October) and then reversing again to reach to USD 73/ barrel by April 2019 (46% increase again), a see- saw movement indicating a volatility hitherto unseen in the recent past. In FY ‘19-20, this volatility was absent for the major part of the year. Dated Brent, the predominant Industry Benchmark for physical crude east of the Atlantic, averaged USD 71/barrel in April 2019, and USD 68/barrel in December 2019; over a period of nine months it displayed a change of a little over 4%, indicating a stability between producer and consumer aspirations, and convergence of demand and supply, that each side strived for. This stability was not disrupted even after an attack on the Abqaiq facilities of Saudi Arabia, and markets quickly recovered from the temporary supply disruption. However, an emerging pandemic disrupted this stability.
Brent prices fell to USD 56/barrel by the end of January through February 2020, as the true scale of demand destruction brought about by ongoing and anticipated governmental responses to the global pandemic of COVID-19 became increasingly evident to the market. Markets awaited OPEC+ interventions to stabilize prices and provide a structured response to the looming crisis over the industry. OPEC+ is a group of 24 oil-producing nations, made up of the 14 members of the Organization of Petroleum Exporting Countries (OPEC), and 10 other non-OPEC members, including Russia. The OPEC bloc is nominally led by Saudi Arabia, the group’s largest oil producer, while Russia is the biggest producer among the non-OPEC countries. The OPEC+ format was born in 2017 with a view to coordinate oil production among the countries in a bid to stabilize prices.. OPEC accounts for around one-third of the world’s oil supply, with the non-OPEC members bringing the total share of global oil covered by the coalition to just under half. The world’s largest energy producer, the U.S., is not part of the coalition, nor other leading Western producers such as the U.K., Canada and Norway.
The OPEC+ meeting took place in 1st week of March, to agree on production cuts to stabilize a rapidly deteriorating price scenario. OPEC ministers negotiated with Russia to join them in production cuts, and further emphasized that if it does not join them in cutting production by another 1.5 million barrels a day to offset the economic impact of the coronavirus, then OPEC could abandon its cuts altogether. Russia was of the view that “oil producers cannot fight
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a falling demand situation”*, and the talks failed. Markets reaction to the twin impacts of failed OPEC+ negotiations, and containment measures put in place by countries to curb the coronavirus outbreak, such as lockdowns across Europe, America, Japan, and Middle East, was to go into a free fall. Prices fell to USD35/barrel by 9th March, to go down to USD17 by the first week of April. Oil would reach its lowest price in two decades of USD13/barrel on 21st April, with the expiry of May futures pushing prices for a brief moment in negative territory, making headlines around the world.
Thus, though the full impact of CoVId-19 manifested itself on the Oil & gas industry only after the end of the FY19-20 fiscal, its overarching influence in shaping the future trajectory of the industry would make it the critical factor of discussion in management analysis. On the demand side, large scale demand destruction being witnessed , with more than half the world population under lock down, coupled with the ongoing concerns on climate change, carbon taxation, environmental governance, and the inexorable growth of EVs and Renewables, would lead to oil demand contracting for the first time since the financial crisis of the last decade. On the supply side, consistent growth in US shale with US production at 13 mmbpd even in March 2020, the OPEC+ breakdown, and a market awash with supplies with bottled supply from sanction-hit countries such as Iran, Venezuela , Libya , Sudan , over and above inventory overhang, crushed demand. The combination of these factors, coupled with COVID 19 and the OPEC+ breakdown, created a perfect storm, generating a classic Black Swan event for the industry.
The effects have been far-reaching. Rystad Energy estimates that about 4 billion barrels will be removed from Global demand in 2020. More than half of this decline could come from outside the main demand areas of North America, Europe and East Asia. Accenture analysis expects a 10-15% contraction in transportation, leading to a 6 million bopd contraction in overall demand. Industry was well into disruption even without the perfect storm with returns increasingly under pressure, capital outflow to more lucrative sectors, and decarbonization headwinds. The extant situation has led the industry to be one of the most affected sectors, with market cap erosion being the highest among all sectors. McKinsey & company estimates that Oil & gas has seen erosion of shareholder returns through loss of market capitalization by up to 45%, more than -Banking, Real Estate and Automobiles, and only marginally behind Commercial Aerospace.
The immediate impact of this industry crisis is that for oil-producing companies and countries, revenues and cash flows are collapsing. As low prices persist, high-cost producers will exit the market; the process has already started with the high-profile bankruptcy of a pioneer on US Shale in June. More broadly, less money will be available for investment, and companies requiring re-financing of existing debt suddenly find themselves staring at high yield rate. Companies are delaying new projects and cutting expenditure at existing operations, while dividend payments are being reduced or suspended. Capex deferrals are becoming the norm, as companies look to tighten their belts and preserve cash in view of continued uncertainty on demand revival. Industry-wise capex spends are estimated at USD 317 billion for 2019; these are expected to reduce by about USD 85 billion in 2020, in view of deferrals and rationalizations across the board. Oil majors and shale-focused independents are leading this reduction in capex; however, NOCs and Global independents have also given guidance of capex reduction, and it will be a strong area
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of emphasis in recalibrating their forward plans in view of pandemic. Your Company by virtue of its footprint across various countries and fiscal systems, is also conscious of the fact that falling oil and gas prices will mean lower take from the upstream industry for various host governments. Fiscal changes for increased protection of domestic cash flows may be an amplified focus for the host governments, as some estimates expect a 55% reduction (upto USD700 billion) in upstream cash flows to governments from 2019 levels.
There are also long-term implications of the pandemic to consider on the world economy. The IMF in its latest World Economic Outlook speaks of the devastating impact of the global lockdown. It believes that the world is heading into a much worse decline than in the financial crisis of 2008-09, with global GDP shrinking by 3% this year. It is forecasting a sharp bounce-back in 2021, with growth of 5.8%, but acknowledges that “the risks for even more severe outcomes, however, are substantial”. Its outlook shows a more pessimistic scenario, in which shutdowns last longer this year, and there is a second outbreak in 2021. In that scenario, the IMF expects world GDP to be almost 8% lower next year than in its base case. The IMF described the drop-off in oil demand as unprecedented, and highlighted the impact on oil-exporting countries, warning that it would be a particularly severe blow for those with high production costs and undiversified revenues. From a global consumption standpoint, the impact of the pandemic also brings about a systemic behavioral change in how consumers and economies approach business. Its immediate effect was demand destruction due to lockdowns and industrial shutdowns. The long-term effects will be change in social interactions pronounced by the dilution of the concept of office, reduced in-person face-to-face business meetings, hence less travel and less demand for public and personal transport, and reorientation of supply chains nearer to the market to reduce dependence on supply disruptions. The first will affect passenger transportation, with aviation industry facing the brunt, and the other would impact global transportation of low-cost finished goods. Both have the potential to impact several sectors, including oil and gas. On the other hand, with a global recession now looming, electric vehicle sales are expected to take a major hit. Consumers may be more averse to the risk of adopting new technologies and many will postpone vehicle purchases altogether. Global EV sales could see a 43% drop, while battery raw materials markets face major disruption.
However, the first green shoots of revival are visible. Globally, lockdowns are easing and business is looking up, as major economies in Europe open up after observing a flattening of the curve on new cases. Even as the outbreak spreads to Africa and Asia, especially India, governments are realizing that indefinite lockdowns are more harmful in the longer run, and are shoring up their medical infrastructure while simultaneously going in for a calibrated opening of their economies. On the oil front, the OPEC+ group finally reached an agreement on April 12 2020; its members pledged to cut their production by 9.7 million barrels per day in May and June, 7.7 million b/d for another six months, and then 5.8 million b/d for a further 16 months. It is the largest output cut since OPEC was founded 60 years ago. Towards the end of June, the members met again and agreed to extend the production cuts of May and June to July, and also to take a considered view of extending such cuts in August also if required. The combination of the above two factors have helped revive the oil prices, with oil prices averaging USD 43/ bbl in the first week of July. Rystad
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Energy estimates an absolute oil demand of 89 million bpd for 2020 and 96-97 million bpd for2021. All this portends towards an ever-tightening oil market throughout 2020, with a balance possible in Dec-20. Your company is aware of this churn in the industry and is thinking critically about potential sources of value and shifting industry dynamics in an uncertain pandemic scenario. .
3. STRENGTH AND WEAKNESSES Your Company has, established itself as a credible player in the international E&P market with a sound acquisition strategy to acquire attractive developing and producing assets to expeditiously ramp up production volumes while remaining focused on sustaining exploration efforts through effective allocation of internal resources. Your Company’s experience in international M&A business and global Oil & Gas operations over several decades has helped it in building strong working relations with reputed bankers, advisors and service providers. This will stand your company in good stead as it looks at the market to acquire high-value assets at competitive valuations in an uncertain industry environment.
Your Company is the first and the most prominent Indian E&P company to have international presence with a diverse portfolio of 37 Oil & Gas Projects spread over 5 Continents and 17 Countries.. Your Company manages its business risk through strategic balancing of its portfolio of exploratory, development and producing oil & gas assets. Your Company’s firm focus on business excellence while aggressively pursuing expansion of its global footprint has helped it in developing strong relations with most of the National Oil Companies (NOCs) such as Rosneft, ADNOC, SOCAR, Petrobras, PetroVietnam, CNPC, Sinopec, Ecopetrol, Petronas, MOGE, KazMunayGas and PDVSA, and International Oil Companies (IOCs) such as Exxon, Shell, BP, TOTAL, Chevron, ENI and Repsol.
Your Company, being pivotal in securing energy security of the Country through overseas expansion, is receiving great support from the Government of India. India’s strategic relations with many of the oil producing nations continue to provide the Company with great competitive advantage in acquiring attractive Oil & Gas assets. While the Company is committed to developing a world class in house technical expertise, it also derives great strength from the technical and financial standing of its parent company ONGC.
However, being a Public Sector Undertaking, the Company is subject to certain limitations which often slows down the decision making process. Currently the empowerment of the Company’s Board is sometime insufficient even for carrying out the Minimum Work Program in exploratory assets. Your Company has been actively pursuing with MoP&NG for the enhancement of empowerment of its Board for a more effective decision making process.
4. OPPORTUNITIES AND THREATS Your Company represents India in the international E&P arena, and most analysts expect India to be a major driver of future demand growth for petroleum and petroleum products. Hence, India’s emergence as a focus area for most of the large producers globally provides a significant advantage to the Company while striking partnerships with
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industry leaders. Your Company endeavors to bring its equity oil to India and contribute directly to the energy security of the nation. The demand destruction brought about by the pandemic and the consequent destruction of oil price and allied asset economics, provide an opportunity for oil and gas players to unlock value in the sector. Your Company remains cognizant of the opportunities thrown up at reasonable valuations due to this unique industry scenario, while being conscious of the need to conserve cash and optimize capex. Besides having a balanced portfolio strategy, Your Company has established itself as a credible and reliable partner in its projects. The strength of the Company’s performance over the years along with the management of strategic alliances with international partners will help us in pursuing targets providing the best strategic fit for the company. While tapering off of world economic growth has been predicted by IMF and multiple agencies such as IEA have predicted subdued oil prices in the near term, we expect the global economy to weather out the present demand loss as nations come out of lockdowns and economies revive, and demand for Oil and Gas to continue to grow at a decent rate in near future. It is expected that reducing uncertainty and a more settled view about the future price outlook shall substantially improve both the qualitative and quantitative aspects of the inorganic growth opportunities in coming years. E&P business remains a cyclic business and your Company is not immune from the nature of the industry. Also, it must be acknowledged that E&P business is inherently a risk prone business and despite all our efforts to develop a robust Risk Management capabilities, some residual risks are difficult to be eliminated. Recent international focus on oil and gas companies to lower their carbon footprint post Paris agreement puts the onus on the Company to continue its operations in a responsible and sustainable manner. Your Company is completely focused to minimize the impact of its operations on local society and environment. Your Company continues to invest in latest technology and engage local community to ensure positive impact of its sustainable operations in all the geographies it operates in. Your Company is cognizant of the advent of renewables and clean technologies as a disruption to conventional energy business. Renewables along with Electric Vehicles are growing at a fast pace and appear to have a promising future, but they can achieve economies of scale and profitability of operations only after overcoming several technical, financial and infrastructural challenges to penetrate the mass market. Your Company is closely monitoring the renewables sector for any synergies that may emerge in the years going forward.
5. OUTLOOK Your Company has witnessed an increasingly prominent role in the ONGC group and consequently has set an ambitious target of raising its production substantially. Your Company has adopted both organic and inorganic means to increase production to meet the challenging targets. Your Company has a presence in various geographies and is
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always in the lookout for attractive E&P assets across the globe. It has earned a credit worthy global reputation in the international E&P arena and therefore it receives substantial number of offers for its consideration. Your company periodically engages in rationalization of its portfolio. Towards that end, it exited from two assets in Sudan, viz., Greater Nile Operating Project (GNOP) and Sudan Pipeline Project in FY 2019-20. With these exits, Your Company has exited Sudan fully. It also relinquished its stake from two exploratory projects, Viz., PEL0037, Namibia, and PEP57090 New Zealand. Portfolio optimization remains a continuous focus area for your Company, and we are also on a continuous look out for acquiring high impact exploration acreages which, upon successful exploration, can contribute in meeting the long term targets. Additionally, the focus of the Company is on acquiring mid-size (about 1 million ton working interest production) to large size near term producing and/or discovered assets, across the world with material oil and gas reserves which are accessible. Striving towards the targets, resumption of production from Greater Pioneer Operating Company (GPOC), South Sudan and exploration success at Block CPO-5, Colombia have provided a boost to the organic growth of the Company. On the Mozambique front, Area 1 Concessionaires have taken Final Investment Decision (FID) for the initial two-train Golfinho/ Atum Project on 18th June 2019. EPC contract for construction of onshore facilities and EPCI contract for construction of offshore facilities were executed, and Area-1 has executed LNG Sale Purchase Agreements (SPAs) for a significant volume. Area-1 consortium obtained First Mover status with approval of the Shared Facilities Construction Proposal by Govt. of Mozambique (GoM) on 20th March 2019. This enables Area-1 to lead the construction of the onshore facilities shared by Area-1 and Area-4. The future outlook of the Company remains bright with focus on stable portfolio of production, development and exploratory assets. Going forward, growth will involve substantial fund requirement and your Company intends to judiciously use the headroom of balance sheet of ONGC and ONGC Videsh to finance new acquisitions coupled with equity and project financing. Your Company remains dedicated to acquiring, retaining and training of manpower with specific skill sets, revamping of internal processes and dynamically evolving business development strategy to keep pace with the fast changing and volatile global E&P industry.
6. INTERNATIONAL ALLIANCES FOR BUSINESS GROWTH DURING THE YEAR Your Company has entered into followings significant Memorandum of Understandings (MoUs) during the year to strengthen its alliance with other like-minded global partners:
Rosneft Russia: Eastern Cluster Cooperation Agreement (ECCA) was signed on 17th September, 2019 between Rosneft, Russia and Indian Consortium consisting of ONGC Videsh, BPRL, IOCL and OIL to widen the scope of cooperation between India and Russia in E&P sector
Your Company shall continue to increasingly engage in such alliances through agreements and Joint Ventures.
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7. RISKS AND CONCERNS
Your Company participates and operates in politically, geographically and technologically challenging environments. In the projects and countries where your Company has large investments, the risks of expropriation, change in fiscal regime, additional taxes and increase in Government share or restrictions on exports of oil could materially affect the performance. However, due to importance of oil and gas industry to the local economies, host Governments in their own interest would not like to de-stabilize the oil companies.
A large proportion of our international investments so far had been in the form of joint ventures, where Your Company is not the operator. In the course of such investments, Your Company is to an extent dependent on the operating partner. However, a thorough due diligence of operators/ partners, is done while entering in to such projects and investments are being made only in the projects with reputed and reliable Operators. Your Company is also increasingly starting to take up a more proactive role by taking operatorship in projects.
Some of our projects are in the countries where there are unresolved conflicts, unrests, larger issues of governance and territorial/ ethnic divisions; some also face terrorism and reactionary protests on continued basis. Your Company’s operations in some of the countries like Syria, Libya, South Sudan and Sudan have been affected due to some of these factors and this may continue to remain a challenge in future also. Further, the oil and gas business involves high exploration and technology risks and there are inherent HSE risks in the oil & gas business, particularly in offshore.
Volatility in oil and gas prices during the past few years has also emerged as a major risk which not only affects financials of existing projects but also makes it difficult to evaluate new opportunities. There is also emerging threat for traditional E&P industry from the advent of advanced technologies in renewables and Electric Vehicles space. The unique global economic situation brought about by the corona pandemic remains an ongoing risk for recoupment of demand and recovery of oil prices, in the near term.
Your Company is closely monitoring the emerging risks for the enterprise and industry and calibrating the strategy for mitigation on regular basis. Significant initiatives have been taken in Enterprise Risk Management to enhance the governance and sustainability practices. In recognition of our efforts, we were awarded The India Risk Management Award constituted by ICICI Lombard & CNBC-TV18 in the category of Best Risk Management Framework and Systems – PSU.
8. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY Your Company’s internal control systems are commensurate with the nature of its business as well as the size and complexity of its operations. Your Company has put in place adequate systems to ensure that assets are safeguarded against loss from unauthorized use or disposition and all transactions are authorized, recorded and reported.
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During the year 2019-20, internal audit was carried out by M/s BDO India LLP in a phased manner, which had independently evaluated adequacy of internal control system. The controls were tested and no reportable material weakness in the design or operation was observed. Significant audit observations of internal auditors and follow up actions thereon have been reported to the Audit Committee.
9. PHYSICAL PERFORMANCE – A. Reserves
ONGC Videsh’s share of total reserves (3P) of oil and oil equivalent gas as on 1st April, 2020 was 611.94 MMTOE and the Reserves-to-Production (R/P) Ratio considering proved reserves was 22.93.
B. Production The Crude Oil Production (including condensate) was 9.755 MMT during 2019-20 as compared to 10.097 MMT during 2018-19. Production of natural gas was 5.226 BCM during 2019-20 as compared to 4.736 BCM during 2018-19. Thus, total oil and gas production during FY’20 was 14.981 MMToE as compared to 14.833 MMToE during FY’19. The details of production during the last twelve years are given below:
PARTICULARS Crude Oil (MMT)* Gas (BCM) Total(O+OEG) (MMTOE) FY’20 9.755 5.226 14.981 FY’19 10.097 4.736 14.833 FY’18 9.353 4.811 14.164 FY’17 8.434 4.369 12.803 FY’16 5.510 3.406 8.916 FY’15 5.533 3.341 8.874 FY’14 5.486 2.871 8.357 FY’13 4.343 2.917 7.260 FY’12 6.214 2.539 8.753 FY’11 6.756 2.692 9.448 FY’10 6.513 2.357 8.870 FY’09 6.556 2.220 8.776
* including Condensate
10. FINANCIAL PERFORMANCE (₹ in million)
Particulars Audited for the Year ended % Variance 31st March 2020 31st March 2019
A INCOME i Revenue from Operations 155,383.07 146,319.79 6.19 ii Interest Income 4,009.73 3,022.34 32.67
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The position of major items in the consolidated balance sheet as at 31st March, 2020 and 31st March 2019 is given below:
(₹ in million)
Particulars As at 31st March 2020
As at 31st March 2019
% Variance
A. ASSETS
1 NON-CURRENT ASSETS
(a) Property, plant and equipment (i) Oil and gas assets 314,537.08 321,284.01 (2.10) (ii) Other property, plant and equipment 11,809.75 15,066.10 (21.61)
iii Other Income 2,258.88 1,595.65 41.56 iv Share of profit of equity accounted investees, net of tax 14,182.29 28,025.99 (49.40) TOTAL REVENUE (A) 175,833.97 178,963.77 (1.75) B EXPENSES i Production, Transportation, Selling and Distribution
Expenditure 47,774.76 45,104.47 5.92
ii Change In Inventories of Finished Goods 743.29 (70.88) - iii Other Expenses (including Exploration Costs written off) 4,137.63 3,423.27 20.87 iv Decrease/ (Increase) due to Overlift/ Underlift Quantity (124.93) (643.29) - v Provisions, Write Off and Other Impairment 698.81 10,934.05 (93.61) TOTAL EXPENSES (B) 53,229.56 58,747.62 (9.39) C EARNING BEFORE INTEREST, TAX,
DEPRECIATION & AMORTISATION (EBITDA) (A-B)
122,604.41
120,216.15 1.99
i Finance Costs 18,699.50 16,350.90 14.36 ii Depreciation, Depletion and Amortisation 35,885.35 35,612.39 0.77 D PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX 68,019.56 68,252.86 (0.34) E Exceptional (Income )/ Expense 31,265.00 15,762.16 98.35 F TAX EXPENSE i Current Year 20,428.15 18,860.70 8.31 Ii Earlier Years Tax 3.01 (721.17) - iii Deferred Tax 11,971.48 17,554.49 (31.80) TOTAL TAX EXPENSES (F) 32,402.64 35,694.02 (9.22) G LESS: SHARE OF PROFIT OR (LOSS)- Non-
controlling interests (188.24) (26.10) -
H GROUP PROFIT/ (LOSS) AFTER TAX (D-E-F-G) 4,540.16 16,822.78 (73.01)
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(b) Right-of-use assets 7,900.57 - - (c) Capital work in progress (i) Oil and gas assets 1) Development wells in progress 6,679.02 3,876.36 72.30 2) Oil and gas facilities in progress 63,454.41 34,810.52 82.29 (ii) Others 100.70 16.32 517.03 (d) Goodwill 133,140.70 131,657.73 1.13 (e) Other intangible assets 222.75 327.16 (31.91) (f) Intangible assets under development (i) Exploratory wells in progress 44,818.20 35,553.34 26.06 (ii) Acquisition cost 171,835.66 160,555.96 7.03 (g) Financial assets (i) Investments 222,984.52 250,164.88 (10.86) (ii) Trade receivables 23,740.97 20,572.16 15.40 (iii) Loans 5,062.33 5,656.87 (10.51) (iv) Deposits for site restoration fund 1,313.83 958.21 37.11 (v) Other financial assets 36,420.74 33,762.24 7.87 (h) Non-current tax assets (net) 1,658.39 6,579.73 (74.80) (i) Deferred tax assets (net) 14,427.86 17,310.58 (16.65) (j) Other non-current assets 20,034.92 15,896.12 26.04 Total non-current assets 1,080,142.40 1,054,048.29 2.48
2 CURRENT ASSETS (a) Inventories 9,345.22 10,953.93 (14.69) (b) Financial Assets (i) Trade receivables 8,068.63 13,635.29 (40.83) (ii) Cash & cash equivalents 40,790.25 30,379.10 34.27 (iii) Loans 2,471.63 2,267.25 9.01 (iv) Other financial assets 47,953.52 17,770.02 169.86 (c) Other current assets 3,303.27 3,101.04 6.52 (d) Total current assets 111,932.52 78,106.63 43.31 TOTAL ASSETS 1,192,074.92 1,132,154.92 5.29 B. EQUITY AND LIABILITIES
1 EQUITY (a) Equity share capital 150,000.00 150,000.00 - (b) Other equity 348,807.10 337,541.94 3.34 (c) Non-controlling interests 16,879.30 15,477.65 9.06 Total Equity 515,686.40 503,019.59 2.52 LIABILITIES
2 NON-CURRENT LIABILITIES
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(a) Financial Liabilities (i) Borrowings 365,876.51 361,044.23 1.34 (ii) Lease liability 5,329.57 5,670.17 (6.01) (iii) Other financial liabilities 6,330.69 8,100.24 (21.85) (b) Provisions 49,927.07 40,845.18 22.23 (c) Deferred tax liabilities (net) 138,226.72 111,091.03 24.43 (d) Other non-current liabilities 204.90 142.30 43.99 Total non-current liabilities 565,895.46 526,893.15 7.40
3 CURRENT LIABILITIES (a) Financial liabilities (i) Borrowings 57,757.71 55,274.39 4.49 (ii) Trade payables a) Total outstanding dues of micro enterprises and
small enterprises - - -
b) Total outstanding dues of creditors other than micro enterprises and small enterprises
24,850.29 23,637.68 5.13
(iii) Lease liability 1,003.27 982.28 2.14 (iv) Other financial liabilities 16,677.44 10,549.51 58.09 (b) Other current liabilities 5,358.92 6,010.36 (10.84) (c) Provisions 2,762.21 2,546.69 8.46 (d) Current tax liabilities (net) 2,083.22 3,241.27 (35.73) Total current liabilities 110,493.06 102,242.18 8.07 Total liabilities 676,388.52 629,135.33 7.51 TOTAL EQUITY AND LIABILITIES 1,192,074.92 1,132,154.92 5.29
*Previous year figures have been regrouped / reclassified, wherever necessary.
11. HUMAN RESOURCE/ INDUSTRIAL RELATIONS ONGC Videsh follows the HR policies of its parent company ONGC. In addition, the Company provides training and conducts development programmes to imbibe the necessary skills required to operate in international environment. Further, the Company deputes its personnel along with other international experts in joint venture projects with major oil and gas companies, which enables them to upgrade their skills, adapt to new technology applications, working in multi-cultural international environment, etc. The Company has been operating mainly with manpower provided by the parent company. Your Company calibrates its manpower levels and quality with its expanding requirements and challenges in various parts of the world. The total manpower of your Company as on 31st March, 2020 was 225 employees posted in Headquarters Delhi. In addition, global manpower of your Company employed by overseas projects abroad was 1769 (including 65 employees of ONGC Videsh posted abroad) as on 31st March 2020 (calculated based on proportionate PI of your Company in overseas projects). Your Company achieved its targets in smooth industrial relations environment and no man-day was lost on account of any Industrial Relations issue.
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12. ENVIRONMENT
Your Company is committed to comply with all applicable environmental legal requirements, wherever it operates, in line with its policy. It is committed to prevention of pollution, injury & hazards. ONGC Videsh is bringing out its Sustainability Report through ONGC group of companies, which shows its commitment to its stakeholders to conduct business in an economically, socially, environmentally sustainable manner that is both transparent and ethical. Sustainability report of ONGC Group for FY’19 (1st April 2018 to 31st March 2019) is based on GRI G4 guidelines with Oil & Gas Sector Supplement and is externally assured ‘Core’ report.
13. CORPORATE SOCIAL RESPONSIBILITY Your Company, having overseas operations, understands its responsibility to contribute to the communities and economies of the countries in which it operates. Your Company has been achieving a fine balance of economic, environmental and social imperatives based on the factors implemented into the policy structure and decisions of CSR Committee. Your Company makes valuable contribution in many ways such as the paying of tax revenues to governments; investing in education and training, improving employment opportunities for nationals and providing medical/sports/agricultural facilities to the local community. In terms of requirements of the Companies Act, 2013, your Company constituted a Corporate Social Responsibility and Sustainability Committee and one of the members of the Committee is an Independent Director. As the entire E&P operations of ONGC Videsh are located outside India, the scope of Corporate Social Responsibility & Sustainability (CSR&S) Policy is governed by the contractual obligations/ project requirements and the international conduct regulations of the host countries for undertaking welfare programs in local areas of operations. Since no business activity of ONGC Videsh is carried out in India, the eligible “Net Profit” for the purpose of CSR was Nil for FY’20.
14. CAUTIONARY STATEMENT Statements in this Management Discussion and Analysis may be ‘forward looking’ within the meaning of the applicable Laws and Regulations. Actual performance may deviate from the explicit or implicit expectations.
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CORPORATE GOVERNANCE REPORT
ONGC Videsh Limited continues to make efforts towards achieving highest standards of corporate governance and responsible management practices and is all about maintaining a valuable relationship and trust with all stakeholders. The details of compliance of Guidelines on Corporate Governance by the Company are provided in the following sections. 1. COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE
The Company’s vision is to be a world-class exploration and production company providing energy security to the country. Its philosophy on Corporate Governance is to conduct business in an efficient, transparent, ethical and responsible manner. The Company believes that good corporate governance goes beyond legal compliances and therefore embedded in the system all across.
2. BOARD OF DIRECTORS
2.1 Composition of the Board: The Company is managed by the Board of Directors, which formulates strategies & policies and reviews its performance periodically. As per Articles of Association (AOA) of the Company, the number of Directors shall not be less than three and not more than fifteen. As per AOA, Oil and Natural Gas Corporation Limited (ONGC), the parent company, appoints the Chairman and all part-time Directors and the President of India appoints all whole-time Directors, including Managing Director on the Board of the Company.
Presently, the Board of your Company comprises Three Whole time Directors and six non-executive Directors (one non-executive Chairman; two part-time official Govt. nominee Directors and three Independent Directors).
Shri Shashi Shanker, Chairman has been entrusted with additional charge of Managing Director upto 31st
January, 2021 by Ministry of Petroleum & Natural Gas. Further, Shri Alok Kumar Gupta was appointed as Director (Operations) on the Board of the Company w.e.f. 4th September, 2019.
The Chairman of ONGC is also the Chairman of the Company. Three whole-time Directors i.e. Director (Finance), Director (Exploration), and Director (Operations) manage the business of the Company under the overall supervision, control and guidance of the Board. In addition, Joint Secretary (International Cooperation), Ministry of Petroleum and Natural Gas (MoP&NG), Government of India and Joint Secretary, Department of Economic Affairs, Ministry of Finance (MoF) are part-time Directors on the Board of the Company. To get benefits of broader domain expertise, all Functional Directors on the Board of ONGC are Special Invitees to the Board meetings. Present composition of the Board of Directors of the Company is as follows:
Non-Executive Chairman: Shri Shashi Shanker Chairman & Managing Director (Also holding the additional
charge of Managing Director upto 31st January,2021) Whole-time Directors: Shri Vivekanand Director (Finance) {Also holding the additional charge of
Director (Operations) upto 3rd September 2019} Shri Girija Shankar Chaturvedi Director (Exploration) Shri Alok Kumar Gupta Director (Operations) (w.e.f. 4th September 2019)
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Part-time Official Nominee Directors: Shri B. N. Reddy, Joint Secretary (IC) Director Shri B. Purushartha, Joint Secretary (IP&F) Director (w.e.f. 22nd April,2020) Dr. Kumar V. Pratap, Joint Secretary (IP&F) Director (upto 31st March, 2020) Part-time Non-Official Directors: Shri Bharatendu Nath Srivastava Independent Director Smt. Kiran Oberoi Vasudev Independent Director Shri Rakesh Kacker Independent Director Shri Ajai Malhotra Independent Director (upto 19th November 2019) Special Invitee: Shri Subhash Kumar Special Invitee Shri Rajesh Kakkar Special Invitee Dr. Alka Mittal Special Invitee Shri R. K. Srivastva Special Invitee (w.e.f. 2nd August, 2019) Shri O. P. Singh Special Invitee (w.e.f. 1st April,2020) Shri Anurag Sharma Special Invitee (w.e.f.1st June, 2020) Shri A. K. Dwivedi Special Invitee (upto 31st July 2019) Shri Navin Chandra Pandey Special Invitee (upto 31st March, 2020) Shri Sanjay Kumar Moitra Special Invitee (upto 31st May, 2020)
2.2 Recording of minutes of proceedings at the Board/ Committee Meeting: The Company Secretary records minutes of the proceedings of each Board/ Committee meeting(s). Draft minutes are circulated to all the members of Board/ Committee(s) and approved by the Chairman of the Board/ Committee(s). These minutes are noted in the subsequent meeting of the Board/ Committee(s) upon finalization. The approved Minutes of the proceedings of the meetings are entered in the Minutes Book.
2.3 Follow-up mechanism: The guidelines for the Board/ Committee meetings facilitate an effective post-meeting follow-up, review and reporting process for the action taken on decisions of the Board and Committee. The Action Taken Report (ATR) on the decisions/ instructions/ directions of the Board and Board’s Committees is submitted to the Board and respective Board’s Committees.
2.4 Compliance: Section 134(5) (f) of the Companies Act, 2013, inter-alia, provides for devising proper systems to ensure compliance with the provisions of applicable laws. ONGC Videsh has compliance reporting system in place based on applicable legal compliances of various applicable Acts/ Laws/ Rules/ Regulations/ Secretarial Standards/ Guidelines as applicable in India. Reporting was initially started on yearly basis and gradually improved to half-yearly and thereafter on quarterly basis. Further to strengthen the compliances reporting system, the Company voluntarily provides compliance status of its overseas offices, projects held by the Company and compliance status of Indian subsidiary, overseas subsidiaries and projects held thereunder.
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2.5 Training and Evaluation of Board members:
A. Training of Board Members: The Department of Public Enterprise (DPE) has issued Guidelines on Corporate Governance, 2010 which requires that the Company shall undertake training programs for its Board members viz. Functional, Government Nominee and Independent Director(s) in the business model of the company including risk profile of the business of the company, responsibility of respective Directors and the manner in which such responsibilities are to be discharged. They shall also be imparted training on Corporate Governance, model code of business ethics and conduct applicable for the respective Directors. SEBI (LODR) Regulations, 2015 inter-alia provides that the Board of Directors shall encourage continuing Directors training to ensure that the members of Board of Directors are kept up to date. In compliance with DPE Guidelines, ONGC Videsh has adopted a Policy on training of Directors, which provides for three tier training policy for Directors:
Induction Training; External Training; and Board Presentation.
The non-executive Board members are eminent personalities having wide experience in the field of administration, taxation, education, industry and commerce. Their presence on the Board has been advantageous and fruitful in taking business decisions.
As and when a Director joins the Board of ONGC Videsh, the incorporation documents, code of conduct applicable for Board members and Annual Report of the Company are provided to apprise about the business and operations of ONGC Videsh. Further, a detailed presentation covering history of ONGC Videsh, its global footprints, physical and financial performance etc. is made for acquainting the new Director with the operations of ONGC Videsh.
Shri B.Purushartha, Govt. Nominee Director was provided a brief presentation on activities of ONGC Videsh alongwith interaction with whole- time Directors.
B. Policy on Performance Evaluation of Directors
ONGC Videsh being a Government Company, the provisions of section 134(3)(e) and (p), 149(6)(a) and (c), and 178(2),(3) and (4) of the Companies Act, 2013 with regard to appointment, Performance Evaluation of Directors etc. have been exempted by the Government of India, Ministry of Corporate Affairs vide Gazette notification dated 5th June 2015.
2.6 Board Meetings: 1. Submission of Agenda for Board and Committee meetings:
ONGC Videsh has launched a secured web portal for distribution and easy access of Agendas/ Presentation/ other Information of Board and Committee meetings materials. The portal can only be accessed through User ID protected by Password with an OTP on their registered/ personal mobile number as additional layer of security. The Portal is an additional facilitation to members/ invitees to disseminate materials relating to Board/ Committee meetings. It facilitates easy access to materials at all locations.
2. Board meetings held during the financial year: Eight Board Meetings were held during the financial year 2019-20 on the following dates:
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9 May 2019 23 May 2019 9 August 2019 25 September 2019
30 September 2019 8 November 2019 14 January 2020 & 15 January 2020 (Adjourned
Board Meeting)
10 February 2020
The minimum and maximum interval between any two Board meetings was 4 days (25th September 2019 – 30th September, 2019) and 77 days (23rd May 2019 – 9th August 2019) respectively.
2.7 Board Attendance: The details of attendance, directorship held in other companies etc. during the financial year 2019-20 were as under:
Name of Directors No. of Board Meetings held during the Tenure
No. of Board Meetings attended
Attendance at the last AGM
Details of Directorships held in other Companies*
Memberships held in Committees, including ONGC Videsh**
Shri Shashi Shanker 8 7 Yes 7 - Shri Vivekanand 8 8 No 1 - Shri Girija Shankar Chaturvedi 8 6 Yes 1 - Shri Alok Kumar Gupta (w.e.f. 4th September, 2019)
5 5 No - -
Dr. Kumar V. Pratap 8 4 No 3 Shri B. N. Reddy 8 5 No 2 - Shri Ajai Malhotra (upto 19th November, 2019)
6 6 Yes - -
Shri Bharatendu Nath Srivastava
8 8 Yes - 1
Smt. Kiran Oberoi Vasudev 8 7 Yes - 1 Shri Rakesh Kacker 8 7 No 4 3
* Does not include Directorships of companies incorporated outside India, Section 8 companies and Private Limited companies (not being holding/ subsidiary of Public company). **Chairmanship/ Membership of the Audit Committee and Shareholders’ Grievance Committee of Public Limited companies (including ONGC Videsh). Notes: 1. The Company being a Government Company, all Directors are appointed/ nominated by the Government of
India/ Parent Company. 2. Directors are not related to each other. 3. Directors do not have any pecuniary relationships or transactions with the Company. 4. The Directorships/ Committee memberships are based on the latest disclosure received from Directors. 5. None of the Director is a Member of more than 10 Committees or Chairman of more than 5 Committees, across
all the companies in which he is a Director.
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2.8 Resume of Directors proposed to be appointed/ re-appointed: The brief resume of Directors including nature of their experience in specific functional areas and names of companies in which they hold directorship and membership/ chairmanship of Board/ Committee, who have been appointed after the date of the last report, is as below: 1. Directors to be appointed:
Name Shri Alok Kumar Gupta Date of Birth & Age June 22, 1962 & 58 Year Date of Appointment 04th September, 2019 Qualification B .Tech (Mechanical Engineer) and MBA No. of Shares held Nil Experience in specific Functional Areas
Shri Alok Kumar Gupta has over three and half decades of experience in various capacities in domestic and overseas operations and has experience of entire value chain of upstream Petroleum Industry particularly in Project Management. Before, joining ONGC Videsh had a long and multi-faceted experience in various positions, including at the corporate level, with ONGC Ltd., a flagship Public Sector Undertaking and fully integrated NOC. Possess an extensive experience in business development both as Head of New businesses in Marketing in ONGC and Head Business development in ONGC Videsh, both in the domestic and international markets, and in handling commercial negotiations with alliance partners, regulators, customers and National Oil Companies. Instrumental in implementing projects from concept to commissioning, have executed projects in Myanmar, both on land and offshore, in Vietnam in Asia Pacific, Brazil, Colombia and Venezuela in Latin America, some of them under very trying circumstances. The key skills include strategy planning, collaborations and identifying new business opportunities. Having worked in diverse geographies, he has forged alliances and led negotiation teams to trouble shoot critical issues and acquired oil & gas properties. The last position held was Asset Manager – Designate for Assam Asset at Nazira and prior to that as Asset Manager Silchar, where he solved the vexed problems of idling of rigs and expediting of exploratory and development efforts in the area.
Directorship held in other Companies*
Nil
Membership/ Chairmanship of Committees, including ONGC Videsh Limited**
Nil
2. Directors to be re-appointed:
Name Shri Shashi Shanker Date of Birth & Age March 2, 1961 & 59 Years Date of Appointment October 12, 2017 Qualification Petroleum Engineering from Indian School of Mines (ISM), Dhanbad, MBA –
Finance and received Executive Education from prestigious institutes like IIM, Lucknow and ISB, Hyderabad
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Experience in specific Functional Areas
Shri Shashi Shanker is the Chairman and Managing Director of one of the biggest Mahartna PSU - Oil and Natural Gas Corporation Ltd (ONGC) and also the Chairman of ONGC Group of Companies He is an industry veteran with over 38 years of experience in diverse E&P activities. He is a Petroleum Engineer from Indian School of Mines (ISM), Dhanbad. He also holds a MBA degree with specialization in Finance. He has also received Executive Education from prestigious institutes like IIM, Lucknow and ISB, Hyderabad. He has progressed through senior management roles in various work centers viz. Institute of Drilling Technology, Dehradun; West Bengal Project; Assam Project and Deep Water group at Mumbai. He was acclaimed for his performance in spearheading the deep/ ultra-deep water campaign of ONGC which was christened ‘Sagar Samriddhhi’. Under his leadership, ONGC drilled the deepest deep water well covering a water depth of 3174m - a world record till date. He also led the team to one of the finest Drilling performance in FY’17 when ONGC set a new record of drilling over 500 wells. Under his guidance, ONGC led the delivery of cutting-edge IT solutions that drive growth, streamline performance and promote efficiency. Various path breaking initiatives were taken to strengthen the IT platforms like SCADA, ERP (ICE), EACS etc. During his tenure, ONGC conceptualized and implemented an ambitious companywide project called “DISHA” for creation of a paperless office platform. He is a member of the High Powered Steering Committee for the flagship initiatives of Govt. of India viz. “Make-in-India” and “Start-Up-India”. As Chairman ONGC Videsh, he signed a landmark Concession agreement for award of 10% Participating Interest in one of Abu Dhabi’s biggest offshore oil concessions (Lower Zakum). Shri Shashi Shanker successfully spearheaded the HPCL acquisition of 51.11% Govt. stake within the financial year as committed. He is also the Chairman of MRPL, OTPC, OMPL, MSEZ, OPaL. Besides various other bodies like FIPI, GCNI etc. He is also on the Board of PLL. His vision and dynamic attributes have helped in making numerous operational and policy initiatives and steering the company though many milestones. As CMD of ONGC, he has set his priority towards developing the East Coast discoveries, rejuvenating the mature fields of Western Offshore and Onshore and improvement in reservoir management.
Directorship held in other Companies*
1. Oil and Natural Gas Corporation Limited 2. Mangalore Refinery and Petrochemical Ltd. 3. ONGC Petro-additions Limited 4. ONGC Mangalore Petrochemicals Limited 5. Mangalore Sez Limited 6. ONGC Tripura Power Company Limited
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7. Petronet LNG Limited Membership/ Chairmanship of Committees, including ONGC Videsh Limited**
Nil
* Does not include Directorships of Companies incorporated outside India, Section 8 Companies and Private Limited Companies (not being holding/ subsidiary of Public Company). **Chairmanship/ Membership of the Audit Committee and Shareholders’ Grievance Committee of Public Limited Companies (including ONGC Videsh).
3. BOARD COMMITTEES Your Company has constituted the following committees of the Board:
3.1 AUDIT COMMITTEE 1. Composition of the Audit Committee:
The composition of the Audit Committee during the financial year 2019-20 was as follows: Shri Rakesh Kacker, Member and Chairman Smt. Kiran Oberoi Vasudev, Member Shri Bharatendu Nath Srivastava, Member
All members of the Audit Committee have requisite financial and management experience. All Whole time Directors, Head of Corporate Accounts and Auditors are the Permanent Invitees to Committee’s meetings. Representatives of Statutory Auditors are invited to attend and participate in meetings. Executives of Finance and other departments are invited on need basis.
Company Secretary acts as the Secretary to the Committee.
2. Role of the Audit Committee:
The role of the Audit Committee includes the following: 1. Oversee of the company’s financial reporting process and the disclosure of its financial information to
ensure that the financial statements are correct, sufficient and credible. 2. Recommending for appointment, remuneration and terms of appointment of auditors of the Company. 3. Approval of payment to statutory auditors for any other services rendered by the statutory auditors except
prohibited services under the Companies Act, 2013. 4. Reviewing Management Discussion and Analysis of financial condition and results of operations. 5. Examining and reviewing, with the management, the annual financial statements and auditor’s report
thereon, before submission to the Board for approval, with particular reference to: a) Matters required to be included in the Directors’ Responsibility Statement and in the Director’s Report
in terms of clause (c) of sub section (3) of section 134 of the Companies Act, 2013; b) Changes, if any, in accounting policies and practices and reasons for the same; c) Major accounting entries involving estimates based on the exercise of judgment by management; d) Significant adjustments made in the financial statements arising out of audit findings; e) Compliance with listing and other legal requirements relating to financial statements; f) Disclosure of any related party transactions; and g) Qualifications in the draft audit report, if any.
6. Reviewing, with the management, the quarterly/ half yearly financial statements as may be required before submission to the Board for approval.
7. Reviewing, with the management, performance of statutory and internal auditors and adequacy of the internal control systems.
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8. To call for the comments including observations of the auditors about internal control systems, the scope of Audit and review of the financial statements before their submission to the Board and may also discuss any related issues with the internal and statutory auditors and the Management of the company.
9. Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit.
10. Discussion with internal auditors and/ or auditors any significant findings and follow up there on. 11. Reviewing & discuss internal control weaknesses with the internal auditors. 12. Reviewing of Management letters/letters of internal control weaknesses issued by the statutory auditors. 13. Reviewing the findings of any internal investigations by the internal auditors/ auditors/ agencies into matters
where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.
14. Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern.
15. To review and monitor the auditor’s independence, performance and effectiveness of audit process. 16. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders,
shareholders (in case of non-payment of declared dividends) and creditors. 17. To scrutinize inter-corporate loans and investments. 18. To review & monitoring with the Management, the end use of funds raised through public offers and related
matters. 19. To review and oversee the Whistle Blower Mechanism. 20. To review the follow up action on the audit observations of the C&AG audit. 21. Review/ check the contracts on nomination basis as per CVC guidelines. 22. To review the follow up action taken on the recommendations of Committee on Public Undertakings (COPU)
of Parliament. 23. Provide an open avenue of communication between the independent auditor, internal auditor and the Board
of Directors. 24. Review and approve all related party transactions and any subsequent modifications of transactions with
related parties as reported by the Management in the Company. For this purpose, the Audit Committee may designate a member who shall be responsible for reviewing related party transactions.
25. Review with the independent auditor the co-ordination of audit efforts to assure completeness of coverage, reduction of redundant efforts, and the effective use of all audit resources.
26. Consider and review the following with the independent auditor and the management: - The adequacy of internal controls including computerized information system controls and security, and - Related findings and recommendations of the independent auditor and internal auditor, together with
the management responses. 27. To evaluate internal financial control and Risk Management systems/framework. 28. Consider and review the following with the management, internal auditor and the independent auditor :
- Significant findings during the year, including the status of previous audit recommendations. - Any difficulties encountered during audit work including any restrictions on the scope of activities or
access to required information. 29. To consider the valuation of undertakings or assets of the company, wherever it is necessary.
3. Minutes of the Audit Committee:
Minutes of the meetings of the Audit Committee are approved by the Chairman of the Audit Committee, noted in the subsequent Audit Committee meeting and are also noted by the Board of Directors.
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4. Meetings: Seven meetings of the Audit Committee were held during the financial year 2019-20 on the following dates:
29 April 2019 23 May 2019 9 August 2019 25 September 2019 30 September 2019 08 November 2019 10 February 2020
5. Attendance:
Members Meetings held during the tenure
Meetings attended
Shri Rakesh Kacker, Member and Chairman 7 7 Ms. Kiran Oberoi vasudev, Member 7 7 Shri Bharatendu Nath Srivastava, Member 7 7
3.2 PROJECT APPRAISAL & HSE COMMITTEE 1. Composition of Project Appraisal & HSE Committee (PAC):
The composition of the PAC during the financial year 2019-20 was as follows: Shri Rakesh Kacker, Member and Chairman ( w.e.f. 2nd December,2019) Shri B. N. Reddy, Member (w.e.f. 19th April,2019); Shri Bharatendu Nath Srivastava, Member Shri Vivekanand, Member; Shri Girija Shankar Chaturvedi, Member; Shri Alok Kumar Gupta, Member (w.e.f. 4th September,2019); and Shri Ajai Malhotra, Member and Chairman (upto 19th November 2019) Company Secretary acts as the Secretary to the Committee.
2. Role of the Project Appraisal & HSE Committee: The role of the PAC includes the following: 1. Periodical review and finalize all the bid parameters for Business Development Projects; 2. Review/ Appraisal of exploration, discovered and producing projects before being considered by the
Board of Directors; 3. Review and recommend approval for additional investments in existing project(s); 4. Periodical review of the activities and operating performance of project(s); 5. Periodical review of production performance of projects; and 6. Review of policy, processes and systems on Safety, Health, Environment and Ecology aspects.
3. Minutes of the Project Appraisal & HSE Committee:
Minutes of the meetings of the PAC are approved by the Chairman of the Committee, noted in the subsequent meeting of the Committee and the Board.
4. Meetings: 9 (Nine) meetings of the PAC were held during the financial year 2019-20 on the following dates:
9 May 2019 23 May 2019 8 August 2019 25 September 2019 30 September 2019 8 November 2019 14 January 2020 15 January 2020 10 February 2020
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5. Attendance: Members Meetings held
during the tenure Meetings attended
Shri Ajai Malhotra, Member and Chairman (upto 19th November 2019) 6 6 Shri Rakesh Kacker Member and Chairman (w.e.f 2nd December, 2019) 3 3 Shri B. N. Reddy, Member (w.e.f. 19th April 2019) 9 4 Shri Bharatendu Nath Srivastava, Members 9 9 Shri Vivekanand, Member 9 9 Shri Girija Shankar Chaturvedi, Member 9 7 Shri Alok Kumar Gupta, Member (w.e.f.4th September 2019) 6 5
3.3 FINANCIAL MANAGEMENT COMMITTEE
1. Composition of Financial Management Committee (FMC): The composition of the FMC during the financial year 2019-20 was as follows:
Smt. Kiran Oberoi Vasudev, Member and Chairperson; Shri Bharatendu Nath Srivastava, Member; Shri Vivekanand, Member; Shri Girija Shankar Chaturvedi, Member; Shri Alok Kumar Gupta, Member (w.e.f. 04th September, 2019);and Shri Ajai Malhotra, Member (upto 19th November 2019)
Company Secretary acts as the Secretary to the Committee. 2. Role of the Financial Management Committee:
The role of the FMC includes consideration of Budget, Delegation of Powers (empowerment), Commercial issues, Forex and Treasury management, Capital Structure, short and long term loans, periodical performance review of subsidiaries.
3. Minutes of the Financial Management Committee:
Minutes of the meetings of the FMC are approved by the Chairman of the Committee, noted in the subsequent meeting of the Committee and the Board of Directors.
4. Meetings: 05 (Five) meetings of the FMC were held during the financial year 2019-20 on the following dates:
23 May 2019 8 August 2019 8 November 2019 14 January 202010 February 2020
5. Attendance:
Members Meetings held during the tenure
Meetings attended
Smt. Kiran Oberoi Vasudev, Member & Chairperson 5 4 Shri Ajai Malhotra, Member (upto 19th November 2019) 3 3 Shri Bharatendu Nath Srivastava, Member 5 5 Shri Vivekanand, Member 5 5 Shri Girija Shankar Chaturvedi, Member 5 4
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Shri Alok Kumar Gupta, Member (w.e.f. 04th September 2019) 3 3
3.4
HUMAN RESOURCE MANAGEMENT AND REMUNERATION COMMITTEE
1. Composition of Human Resource Management and Remuneration (HRM&R) Committee:
The composition of the HRM&R Committee during the financial year 2019-20 was as follows: Shri Bharatendu Nath Srivastava, Member and Chairman; Shri Rakesh Kacker, Member (w.e.f. 2nd December,2019) Smt. Kiran Oberoi Vasudev, Member; Shri Vivekanand, Member; Shri Girija Shankar Chaturvedi, Member; and Shri Alok Kumar Gupta, Member (w.e.f. 4th September,2019); and Shri Ajai Malhotra, Member (upto 19th November 2019);
Company Secretary acts as the Secretary to the Committee.
2. Role of the Human Resource Management and Remuneration Committee:
The role of the HRM&R Committee includes the following: 1. Consideration of all issues/areas concerning Human Resource Planning and Management, HR policies and
Initiatives and promotions for direct recruitees, if any at the level of GGM and ED; 2. To decide the annual bonus/ variable pay pool and policy for its distribution across the executives and non-
unionized supervisors, within the prescribed ceilings; 3. Consideration of various aspects of remuneration payable to Executive and non-Executive Directors and
recommendation thereon to the Board of Directors; 4. Consideration of sitting fees payable to Independent Directors and recommendations thereon to the Board
of Directors as per the provisions of the Companies Act, 2013; and 5. As per extant DPE guidelines, the Remuneration Committee should comprise only part-time Directors
(Nominee Directors or Independent Directors) and therefore the Board decided that the whole time Directors would not participate in the discussions when the Committee considers agenda item(s) pertaining to Remuneration Committee.
3. Minutes of the Human Resource Management & Remuneration Committee: Minutes of the meetings of the HRM&R Committee are approved by the Chairman of the Committee, noted in the subsequent meeting of the Committee and the Board of Directors.
4. Meetings: 4 (Four) meetings of the HRM&R Committee were held during the financial year 2018-19 on the following dates:
23 May 2019 8 August 2019 8 November 2019 10 February 2020 5. Attendance:
Members Meetings held during the tenure
Meetings attended
Shri Bharatendu Nath Srivastava, Member & Chairman 4 4 Shri Ajai Malhotra, Member (upto 19th November 2019) 3 3
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Smt. Kiran Oberoi Vasudev, Member 4 4 Shri Vivekanand, Member 4 4 Shri Girija Shankar Chaturvedi, Member 4 3 Shri Alok Kumar Gupta, Member 2 2 Shri Rakesh Kacker, Member (w.e.f. 2nd December,2019) 1 1
3.5 CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABILITY COMMITTEE ONGC Videsh, having overseas operations, understands its responsibility to contribute to the communities and economies of the countries in which it operates. It has been achieving a fine balance of economic, environmental and social imperatives based on the factors included into the policy structure and decisions of CSR Committee. The Company is making valuable contribution in many ways such as payment of tax revenues to governments; by investing in education and training and improving employment opportunities for nationals; providing medical/ sports/ agricultural facilities to the local community etc. In terms of requirements of the Companies Act, 2013, ONGC Videsh had constituted a Corporate Social Responsibility and Sustainability Committee and the Chairman of the Committee is a Govt. nominee Director. As ONGC Videsh has all its operations outside India, the eligible “Net Profit” for the purpose of CSR was ‘Nil’ for FY’19 and expected to be the same in future years also. However, ONGC Videsh has been undertaking community development projects in and around its project locations (i.e. outside India) as per local requirements/ guidelines/ practices prevailing in the countries of operations.
1. Composition of Corporate Social Responsibility & Sustainability Committee:
ONGC Videsh constituted Corporate Social Responsibility & Sustainability (CSR&S) Committee as approved by the Board in its 381st meeting held on 21st August 2013. The composition of CSR&S Committee during the financial year 2019-20 was as follows:
Shri B. N. Reddy, Member & Chairman (w.e.f. 19th April,2019); Smt. Kiran Oberoi Vasudev, Member (w.e.f. 2nd December, 2019); Shri Vivekanand, Member; Shri Girija Shankar Chaturvedi (w.e.f. 19th April, 2019); and Shri Ajai Malhotra, Member (upto 19th November,2019);
Company Secretary acts as the Secretary to the Committee.
2. Role of the Corporate Social Responsibility & Sustainability Committee: The terms of reference of the Corporate Social Responsibility & Sustainability Committee are to oversee the implementation of the CSR & Sustainability activities.
3. Minutes of the Corporate Social Responsibility & Sustainability Committee: Minutes of the meeting of the CSR&S Committee are approved by the Chairman of the Committee, noted in the subsequent meeting of the Committee and the Board.
4. Meetings: During the year under review, No meeting of Corporate Social Responsibility & Sustainability (CSR&S) was held.
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4. MEETINGS OF INDEPENDENT DIRECTORS Two separate meetings of Independent Directors during the year 2019-20 were held on 09th May, 2019 and 10th February, 2020 without the attendance of non-independent directors and members of management as per the requirement of the Companies Act, 2013.
5. OTHER FUNCTIONAL COMMITTEE(S) Apart from the above, the Board from time to time also constitutes Functional Committees with specific terms of reference as it may deem fit and accordingly meetings of such Committees are held as and when the need for discussing the matter arises. Time schedule for holding the meetings of such Committees is finalised in consultation with the Committee members.
6. EQUITY SHARES HELD BY DIRECTORS (AS ON 31ST MARCH, 2020) Shri Shashi Shanker and Shri Vivekanand hold one share each of the Company as nominee of Oil and Natural Gas Corporation Limited.
7. CODE OF CONDUCT FOR MEMBERS OF THE BOARD AND SENIOR MANAGEMENT The Company is committed to conduct its business in accordance with the highest standards of business ethics and comply with applicable laws, rules and regulations. A code of conduct, evolved in line with the parent Company ONGC was adopted by the Board which is applicable to all Members of the Board and Senior Management who have confirmed compliance with the Code of Conduct for the year under review. A copy of the Code is available on the Company’s website https://www.ongcvidesh.com/investor-page A declaration signed by Chairman of the Company is given below: “I hereby confirm that:
The Company has obtained from the Members of the Board and Senior Management, affirmation that they have complied with the Code of Conduct for Directors and Senior Management during the financial year –2019-20.” Dated: 2nd September, 2020
Sd/- (Shashi Shanker)
Chairman
8. SUBSIDIARIES 1. SUBSIDIARY MONITORING FRAMEWORK
All subsidiaries of the Company, except one subsidiary in Brazil, are managed by their respective Boards having the duties to manage such companies in the best interest of their stakeholders. Brazilian company is managed through administrators as permitted under the local laws. Being 100% shareholder, the Company nominates its representatives on the Boards of subsidiaries and monitors the performance of its subsidiaries periodically. ONGC Videsh had twenty eight subsidiaries (comprising twelve direct subsidiaries and sixteen indirect subsidiaries) as on 31st March 2020. Details of Subsidiaries are as under:
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Sl. No.
Name of the Subsidiary Date of Acquisition / Incorporation
Country in which Incorporated
Direct Subsidiaries of ONGC Videsh Ltd. 1. ONGC Nile Ganga B.V. 12.03.2003 Netherlands 2. ONGC Narmada Limited 07.12.2005 Nigeria 3. ONGC Amazon Alaknanda Limited 08.08.2006 Bermuda 4. Imperial Energy Limited 12.08.2008 Cyprus 5. Carabobo One AB 05.02.2010 Sweden 6. ONGC (BTC) Limited 28.03.2013 Cayman Islands 7. Beas Rovuma Energy Mozambique Limited 07.01.2014 Mauritius 8 ONGC Videsh Atlantic Inc. 14.08.2014 Texas, USA 9. ONGC Videsh Rovuma Limited 16.03.2015 Mauritius 10. ONGC Videsh Singapore Pte. Ltd. 15.04.2016 Singapore 11. Indus East Mediterranean Exploration Ltd. 27.02.2018 Israel 12. ONGC Videsh Rovuma Limited 15.04.2019 India Indirect Subsidiaries (Subsidiaries of ONGC Nile Ganga B.V.) 13. ONGC Campos Ltda. 16.03.2007 Brazil 14 ONGC Nile Ganga (San Cristobal) B.V. 29.02.2008 Netherlands Indirect Subsidiaries ( Subsidiaries of Imperial Energy Limited) 15 Biancus Holdings Limited 13.01.2009 Cyprus 16 Imperial Energy Tomsk Limited 13.01.2009 Cyprus 17 Imperial Energy (Cyprus) Limited 13.01.2009 Cyprus 18 Imperial Energy Nord Limited 13.01.2009 Cyprus 19 Imperial Frac Services (Cyprus) Limited 13.01.2009 Cyprus 20 Redcliffe Holdings Limited 13.01.2009 Cyprus 21 San Agio Investments Limited 13.01.2009 Cyprus 22 LLC Sibinterneft 13.01.2009 Russian Federation 23 LLC Allianceneftegaz 13.01.2009 Russian Federation 24 LLC Nord Imperial 13.01.2009 Russian Federation 25 LLC Rus Imperial Group 13.01.2009 Russian Federation 26 LLC Imperial Frac Services 13.01.2009 Russian Federation Indirect Subsidiaries ( Through Carabobo One AB) 27 Petro Carabobo Ganga B.V. 26.02.2010 Netherlands Indirect Subsidiaries (Through ONGC Videsh Singapore Pte. Ltd.) 28 ONGC Videsh Vankorneft Pte. Ltd. 18.04.2016 Singapore
2. COMPANIES WHICH HAVE BECOME/ CEASED TO BE COMPANY’S SUBSIDIARIES, JOINT VENTURES
AND ASSOCIATES COMPANIES DURING THE YEAR A. Companies which have become subsidiaries during the financial year 2019-20: 1
(i) ONGC Videsh Rovuma Limited B. Companies which have ceased to be subsidiaries during the financial year 2019-20: 1
(i) ONGC Caspian E&P B.V, Netherland (Merged with ONGC Nile Ganga BV) C. Companies which have become to be a joint venture or associate during the financial year 2019-20: Nil D. Companies which have ceased to be a joint venture or associate during the financial year 2019-20: Nil
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9. ANNUAL GENERAL MEETINGS (AGMs)
A. Location, date and time, where the AGMs were held during the preceding three years: Year Location Date Time
(IST) Whether any Special Resolution(s) passed in the previous AGM(s)
2016-17 5th Floor, Oil and Natural Gas Corporation Ltd. Deendayal Urja Bhavan, 5, Nelson Mandela Marg, Vasant Kunj, New Delhi – 110070
28th September,
2017
09:30 AM No
2017-18 5th Floor, Oil and Natural Gas Corporation Ltd. Deendayal Urja Bhavan, 5, Nelson Mandela Marg, Vasant Kunj, New Delhi – 110070
07th September,
2018
05:00 PM No
2018-19 5th Floor, Oil and Natural Gas Corporation Ltd. Deendayal Urja Bhavan, 5, Nelson Mandela Marg, Vasant Kunj, New Delhi – 110070
29th August, 2019
04.30 PM Yes
B. Extra-Ordinary General Meeting (EGM) during the financial year 2019-20: Nil
10. DISCLOSURES
1. DIRECTORS’ REMUNERATION ONGC Videsh Limited being a Government Company, appointment and terms and conditions of remuneration of Executive Directors (whole-time functional) are determined by the Government through administrative Ministry - the MoP&NG. Non-executive part-time official Director do not draw any remuneration. The part-time non-official Director received sitting fees of ` 40,000/- and ` 30,000/- for attending each Board and Committee meeting(s) respectively. Remuneration of Directors for the year ended 31st March, 2020 was as follows:
A. Directors (Executive Whole-time) (`̀ in Million)
SI No.
Names Salary Including DA
Other benefits &
perks
Performance Incentives
Contribution to PF & other
Funds
Grand Total
1 Shri Vivekanand 3.73 1.42 1.14 0. 78 7.07 2 Shri G. S. Chaturvedi 4.15 - 2.20 0.80 7.15 3 Shri Alok Kumar Gupta 3.55 0.24 1.63 0.65 6.07
B. Non-Executive Directors (Part-time non-official)
The details of sitting fees paid to Non-Executive non-official Directors during the year 2019-20 are as follows:
Sl. No. Name Sitting fees (`̀ in Million) 1 Shri Ajai Malhotra (upto 19th November 2019) 0.60 2 Shri Bharatendu Nath Srivastava 1.07 3 Smt. Kiran Oberoi Vasudev 0.73 4 Shri Rakesh Kacker 0.61
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2. DETAILS OF ADMINISTRATIVE AND OFFICE EXPENSES AS A PERCENTAGE OF TOTAL EXPENSES
AND REASONS FOR INCREASE: (`̀ in Million)
Particulars 2019-20 2018-19 Reasons for variation Total expenses * 28,651.07 29,587.48 The slight decrease in administrative and
office expenses is mainly due to provision relating to actuarial valuation of employee benefits.
Administrative and office expenses** 2,445.55 2,533.04 Administrative and office expenses as a percentage of total expenses
8.54% 8.56%
* Production, Transportation, Selling & Distribution Expenditure of Standalone Financial Statements. ** Staff Expenditure, Insurance, Rent and Repairs & Maintenance of Standalone Financial Statements.
3. The Company has not incurred any expenditure during the year 2019-20, which was not for the purpose of the
business of the Company or which was personal in nature and incurred for the members of the Board of Directors and Senior Management personnel.
11. COMPLIANCES
The Company has complied with applicable rules and the requirement of regulatory authorities and no penalties or strictures were imposed on the Company on any matter related to any guidelines issued by Government during last three years. No Presidential Directives have been issued during the financial year 2019-20.
12. MEANS OF COMMUNICATION Half-Yearly/ Annual Results : Pursuant to listing of the debt securities on the National Stock Exchange of India Ltd., the Company intimated half-yearly financial results during the financial year 2019-20 to the Stock Exchange immediately after being taken on record and approved by the Board. These financial results were published in terms of requirements of the SEBI (LODR) Regulations 2015. The results were also sent to Debenture Trustee M/s IDBI Trusteeship Services Limited and displayed on the website of the Company www.ongcvidesh.com. News Release, Presentation etc.: The official news releases are displayed on the Company’s website www.ongcvidesh.com.
Website: The Company’s website is www.ongcvidesh.com. Annual Report and Audited financial statements are also available on the website at https://www.ongcvidesh.com/investor-page.
Annual Report: Annual Report containing inter-alia, the Audited Standalone and Consolidated Financial Statements, Board’s Report, Auditors’ Report, and other important information is circulated to the members and others entitled thereto. The Management Discussion and Analysis (MD&A) Report and Corporate Governance Report form part of the Board’s Report in the Annual Report.
Compliance Officer: The Company has designated Shri Rajni Kant, Company Secretary as Compliance Officer for debentures listed in India. The email id [email protected] has been created exclusively for addressing the queries of debenture investors.
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13. ANNUAL GENERAL MEETING Date : 07th September, 2020 Time : 17:00 hours Venue : Board Room, 5th Floor, Deendayal Urja Bhawan, Plot No. 5A-5B, Nelson Mandela Marg,
Vasant Kunj, New Delhi – 110 070.
14. SHAREHOLDING PATTERN AS ON 31ST MARCH, 2020 Category No. of shares held of `̀ 100 each Percentage of shareholding ONGC Ltd. and its nominees 1,500,000,000 100%
15. RISK MANAGEMENT The Enterprise Wide Risk Management (ERM) framework has been implemented in the Company and risk reporting structure has been put in place.
16. CEO/ CFO CERTIFICATION In terms of Department of Public Enterprises Guidelines on Corporate Governance, the certification by the CEO/ CFO on the financial statements and internal controls relating to financial reporting for the financial year 2019-20 was submitted to the Audit Committee/ Board of Directors on 18th June, 2020.
17. CREDIT RATING OF SECURITIES: Details of the Credit Rating of Debt Securities during the year obtained by the Company.
Sl. No. Particulars Details 1 Name of Debt Security Long term Bond Program - INR 370 Crore Debenture 2 Credit Rating obtained [ICRA] AAA
3 Name of the credit rating agency ICRA Limited
4 Date on which the credit rating was obtained Nov 2009 and annual surveillance thereon every year. Surveillance report was issued in May 2019. Debenture has been fully redeemed on 6th Jan 2020 and accordingly rating has been withdrawn.
5 Revision in the credit rating Not Applicable 6 Reasons provided by the rating agency for a
downward revision, if any. Not Applicable
18. SECRETARIAL AUDIT REPORT The Companies Act, 2013 inter-alia provides that every listed company and companies belonging to prescribed class or classes of companies shall annex a Secretarial Audit Report given by a Company Secretary in practice with its Board’s report. Accordingly, the Board has appointed M/s SGS Associates, Company Secretary in practice to conduct Secretarial Audit for the financial year 2019-20 Secretarial Audit report for the financial year ended 31st March, 2020 is annexed to this report. M/s S.G.S. Associates, Company Secretaries has carried out Secretarial Audit on compliances of various applicable provisions of the Companies Act, 2013 & Rules made under the Act; the Depository Act, 1996; the SEBI (Listing
Annual Report 2019 - 20 83 of 373
Obligations and Disclosure Requirements) Regulations 2015 and Debt Listing Agreement; the Foreign Exchange Management Act, 1999 & other laws applicable on the Company. Further M/s S.G.S. Associates, Secretariat Auditors has also conducted audits and examined the compliances of DPE Guidelines on Corporate Governance 2010. The Secretarial Audit Report confirming compliance to the applicable provisions of Companies Act, 2013, Listing Regulation-2015, SEBI guidelines, DPE Guidelines and all other related rules and regulations relating to capital market was issued from a practicing Company Secretary and was noted by the Board and forms part of the Board’s Report.
19. AUDIT QUALIFICATION ON STANDALONE AND CONSOLIDATED FINANCIAL STATEMENTS There has not been any observation by the Statutory Auditors on Standalone and Consolidated financial statements for the year 2019-20. Further, your Company has received “Nil” comments of Comptroller & Auditor General of India (C&AG) and the same form the part of the Board’s report.
20. WHISTLE BLOWER POLICY A Whistle Blower Policy has been implemented by our parent company ONGC and is functional from 1st December, 2009. The policy ensures that a genuine Whistle Blower is granted due protection from any victimization.
21. FEE TO STATUTORY AUDITORS The total fee paid/ payable to the Statutory Auditors for the financial year 2019-20 was ` 8.52 million (Including GST) (previous year ` 7.84 million).
22. DEMATERIALIZATION OF SHARES AND LIQUIDITY (As on 31st March, 2020) During the year 2019-20, the shares of the Company were in depository system of National Securities Depository Limited (NSDL).
23. GENERAL INVESTOR (DEBENTUREHOLDERS) INFORMATION: 1. Listing on Stock Exchange:
The Company had issued 8.54% 10 Years Unsecured Non - Convertible Redeemable Debentures Series II of ₹ 370 crore on 6th January, 2010 and the Debentures were listed in Debt Market segment of National Stock Exchange of India Limited (NSE). The Debenture Series II was due for redemption alongwith interest payment on 6th January 2020. The Company has paid in full principal amount together with interest thereon to Debenture holders and informed NSE and the Debenture Trustees.
2. The Company issued USD Bonds in May 2013 and USD and EURO Bonds in July 2014 in international debt
capital markets. USD Bonds are listed on the Official List of the Singapore Exchange Securities Trading Limited and Euro Bonds are listed on open market (Freiverkehr) segment of Frankfurt Stock Exchange (Frankfurter Wertpapierbörse).
3. Payment of listing Fees:
Annual listing fee till the financial year 2019-20 has been paid by the Company to the NSE and no further listing fee is payable. The applicable upfront listing fee for the Bonds has been paid to the Singapore Exchange Securities Trading Limited as well as to the Frankfurt Stock Exchange. No further listing fee is payable.
Annual Report 2019 - 20 84 of 373
Registrars and Share Transfer Agents (For Shares) Alankit Assignment Ltd. Alankit Heights, 1E/13, Jhandewalan Extension, New Delhi-110055 Phone : 91-11-4254 1234/1960, Fax : 91-11-42541201/ 23552001 Website : www.alankit.com Email : [email protected]
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Standalone Financial StatementsFor the year endedMarch 31, 2020
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"This pa
ge [is]
intent
ionally
left bl
ank."
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
Standalone Balance Sheet as at March 31, 2020
Particulars Note No.
As at March 31, 2020 As at March 31, 2019
I. ASSETS (1) Non-current assets
(a) Property, plant and equipment(i) Oil and gas assets 5 275,193.24 268,093.88(ii) Other property, plant and equipment 6 11,609.58 14,868.49
(b) Right-of-use assets 7 3,455.33 -(c) Capital work in progress 8
(i) Oil and gas assets1) Development wells in progress 3,421.14 1,173.582) Oil and gas facilities in progress 5,942.40 19,509.09
(ii) Others 100.70 16.32(d) Intangible assets 9 182.21 243.97(e) Intangible assets under development 10
(i) Exploratory wells in progress 4,947.23 18,875.26(ii) Acquisition cost - 160,554.95
(f) Financial assets(i) Investments 11 291,146.16 298,932.63(ii) Trade receivables 12 - -(iii) Loans 13 191,782.93 10,469.30(iv) Deposits for site restoration fund 14 1,313.83 958.21(v) Finance lease receivables 15 - -(vi) Other financial assets 16 44.44 156.12
(g) Non-current tax assets (net) 17 1,641.18 6,459.23(h) Other non-current assets 18 1,055.83 7,084.97Total non-current assets 791,836.20 807,396.00
(2) Current assets(a) Inventories 19 7,202.40 6,674.61(b) Financial assets
(i) Trade receivables 12 7,577.22 11,042.44(ii) Cash and cash equivalents 20 12,724.33 22,018.95(iii) Loans 13 2,720.67 2,422.79(iv) Other financial assets 16 21,829.33 5,564.28
(c) Other current assets 18 1,761.76 1,030.68Total current assets 53,815.71 48,753.75Total assets 845,651.91 856,149.75
II. EQUITY AND LIABILITIES (1) Equity
(a) Equity share capital 21 150,000.00 150,000.00(b) Other equity 22 184,868.77 186,072.75Total equity 334,868.77 336,072.75
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
Particulars Note No.
As at March 31, 2020 As at March 31, 2019
LIABILITIES (2) Non-current liabilities
(a) Financial liabilities(i) Borrowings 23 249,148.71 247,943.80(ii) Lease liability 7.2 369.78 369.78(iii) Other financial liabilities 24 6,330.39 8,100.24
(b) Provisions 25 44,071.65 37,641.26(c) Deferred tax liabilities (net) 26 121,823.32 142,014.10Total non-current liabilities 421,743.85 436,069.18
(3) Current liabilities(a) Financial liabilities
(i) Borrowings 23 57,757.71 55,274.39(ii) Trade payables 27
a) Total outstanding dues of micro enterprises and small enterprises - -
13,040.82 10,884.01
(iii) Lease liability 7.2 - -(iv) Other financial liabilities 24 10,062.67 8,273.62
(b) Other current liabilities 28 3,016.71 3,430.21(c) Provisions 25 1,887.00 1,730.25(d) Current tax liabilities (net) 17 3,274.38 4,415.34Total current liabilities 89,039.29 84,007.82Total liabilities 510,783.14 520,077.00Total equity and liabilities 845,651.91 856,149.75
See accompanying notes to the standalone financial statements 1-55
Sd/- Sd/- Sd/-(Rajni Kant) (Vivekanand) (Shashi Shanker)Company Secretary Director (Finance) Chairman
(DIN: 07566552) (DIN: 06447938)
For SPMR & Associates For Thakur, Vaidyanath Aiyar & Co.Chartered Accountants Chartered AccountantsFirm Regn No. 007578N Firm Regn No. 000038N
Sd/- Sd/-Place: New Delhi (Harish Kumar) (K K Upadhyay)Date: June 18, 2020 Partner (M No. 086315) Partner (M No. 096584)
b) Total outstanding dues of creditors other than micro enterprises and small enterprises
As per our report of even date attached
For and on behalf of the Board of Directors of ONGC Videsh Limited
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
Standalone Statement of Profit and Loss for the year ended March 31, 2020
Particulars Note No.
Year ended March 31, 2020
Year ended March 31, 2019
I Revenue from operations 29 121,921.15 115,858.61II Other income 30 11,210.41 10,077.46III Total income (I+II) 133,131.56 125,936.07
IV EXPENSESChanges in inventories of finished goods 31 (1.65) 8.86Decrease / (increase) due to Overlift / underlift quantity 75.49 (344.36)Production, transportation, selling and distribution expenditure 32 28,651.07 29,587.48Exploration costs written off
(a) Survey costs 1,424.22 722.13(b) Exploratory well costs 1,036.04 1,703.48
Depreciation, depletion & amortisation 33 23,164.54 21,204.96Finance costs 34 9,536.43 7,138.31Provisions, Write off and Impairment 35 340.35 (474.83)Other expenses 36 1,032.62 (260.34)Total expenses (IV) 65,259.11 59,285.69
V Profit before exceptional items and tax (III-IV) 67,872.45 66,650.38VI Exceptional (income) / expense 37 104,852.93 15,762.16
VII Profit/(loss) before tax (V-VI) (36,980.48) 50,888.22
VIII Tax expense:(a) Current tax relating to: 38
- current period 20,219.04 18,579.97- earlier periods - (667.13)
(b) Deferred tax 15,445.31 19,707.63Total tax expense (VIII) 35,664.35 37,620.47
IX Profit/(Loss) for the year (VII-VIII) (72,644.83) 13,267.75X Other comprehensive income
(a) Items that will not be reclassified to profit or loss(i) Remeasurement of the defined benefit obligations 72.97 7.03
- Income tax relating to above - -(b) Items that will be reclassified to profit or loss
(i) Exchange differences in translating the financial statements of foreign operations 16,586.77 22,554.68
- Income tax relating to above (5,796.08) (7,881.51)Total other comprehensive income 10,863.66 14,680.20
XI Total comprehensive income/ (loss) for the period (IX+X) (61,781.17) 27,947.95
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
Particulars Note No.
Year ended March 31, 2020
Year ended March 31, 2019
XII Earnings per equity share: (face value of ₹100 each) 39Basic (₹) (48.43) 8.85Diluted (₹) (48.43) 8.85
See accompanying notes to the standalone financialstatements 1-55
Sd/- Sd/- Sd/-(Rajni Kant) (Vivekanand) (Shashi Shanker)Company Secretary Director (Finance) Chairman
(DIN: 07566552) (DIN: 06447938)
For SPMR & Associates For Thakur, Vaidyanath Aiyar & Co.Chartered Accountants Chartered AccountantsFirm Regn No. 007578N Firm Regn No. 000038N
Sd/- Sd/-Place: New Delhi (Harish Kumar) (K K Upadhyay)Date: June 18, 2020 Partner (M No. 086315) Partner (M No. 096584)
For and on behalf of the Board of Directors of ONGC Videsh Limited
As per our report of even date attached
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
(i) Equity share capital
Particulars Amount
Balance as at March 31, 2019 150,000.00Issue of equity share -Balance as at March 31, 2020 150,000.00
(ii) Other equity
Capital reserve
Debenture redemption
reserve
General reserve
Retained earnings
Balance as at March 31, 2019 4,345.87 174.08 64,591.57 19,219.62 17,402.51 80,339.10 186,072.75Profit for the year - - - - (72,644.83) - (72,644.83)Remeasurement of defined benefit obligation, net of income tax - - - - 72.97 - 72.97
Other comprehensive income for the period, net of income tax - - - - - 23,332.77 23,332.77
Total comprehensive income for the period - - - - (72,571.86) 23,332.77 (49,239.09)Dividends - - - (5,100.00) - - (5,100.00)Dividend distribution tax - - - (1,048.32) - - (1,048.32)Fair valuation of financial guarantee from holding company
747.12 - - - - 747.12
Adjustment of Retained Earnings on Transfer of Mozambique Business (refer note:52 )
- - - - 65,978.39 - 65,978.39
Reclassification of accumulated FCTR to P&L on disposal of Foreign Operations (refer note: 52) - - - - - (12,542.08) (12,542.08)
Transfer from Debenture Redemption Reserve - - (2,585.55) 2,585.55 - - -Balance as at March 31, 2020 5,092.99 174.08 62,006.02 15,656.85 10,809.04 91,129.79 184,868.77
Sd/- Sd/- Sd/-(Rajni Kant) (Vivekanand) (Shashi Shanker)Company Secretary Director (Finance) Chairman
(DIN: 07566552) (DIN: 06447938)
For SPMR & Associates For Thakur, Vaidyanath Aiyar & Co.Chartered Accountants Chartered AccountantsFirm Regn No. 007578N Firm Regn No. 000038N
Sd/- Sd/-Place: New Delhi (Harish Kumar) (K K Upadhyay)Date: June 18, 2020 Partner (M No. 086315) Partner (M No. 096584)
Particulars
Deemed capital
contribution from holding
company
Reserves and Surplus Exchange differences on
translating the financial statements of
foreign operations
Total
As per our report of even date attached
For and on behalf of the Board of Directors of ONGC Videsh Limited
Annual Report 2019 - 20 115 of 373
ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
Standalone Statement of Cash Flows for the year ended March 31, 2020
Particularsi) CASH FLOWS FROM OPERATING ACTIVITIES:Net Profit after tax (72,644.83) 13,267.75Adjustments For:- Interest income (4,494.39) (2,535.30)- Profit on sale of investment - -- Dividend Income (4,785.71) (5,474.95)- Exploratory Well Costs Written off 1,036.04 1,703.48- Depreciation, Depletion, Amortisation and Impairment 23,164.54 21,204.96- Finance Cost 9,536.43 7,138.31- Provisions, write off and other impairment 340.35 (474.83)- Unrealized Foreign Exchange Loss/(Gain) 1,032.62 (260.34)- Exceptional Items 104,852.93 15,762.16- Income tax expense 35,664.35 37,620.47- Remeasurement of Defined benefit plans 72.97 166,420.13 7.03 74,690.99Operating Profit before Working Capital Changes 93,775.30 87,958.74Adjustments for- Receivables 4,195.53 (482.06)- Loans and advances 37.26 (16.24)- Other assets (15,409.83) 511.70- Inventories (261.17) (75.53)- Trade payable and other liabilities 1,761.70 (9,676.51) 443.58 381.45Cash generated from Operations 84,098.79 88,340.19Income Taxes Paid (Net of tax refund) (15,165.90) (18,924.12)Net cash generated by operating activities “A” 68,932.89 69,416.07
ii) CASH FLOWS FROM INVESTING ACTIVITIES:Payments for Property, Plant and Equipment (including Application software and capital work in progress)
(15,964.18) (14,013.85)
Proceeds from disposal of Property, Plant and Equipment (including Application software and capital work in progress)
6.51 108.35
Exploratory and Development Drilling (18,418.74) (13,469.38)Investment in mutual funds (2,140.38) (2,246.15)Investment in Joint Controlled Entities/Associates (7.09) -Investment - Subsidiaries (10,419.76) (1,568.10)Loan to Subsidiaries (1,860.56) 815.88Deposit in Site Restoration fund (252.55) (184.46)Dividends received from subsidiaries 4,786.76 5,535.73Interest received 1,340.82 569.17Net cash (used in)/generated by Investing Activities “B” (42,929.17) (24,452.81)
Year ended March 31, 2020 Year ended March 31, 2019
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ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
iii) CASH FLOWS FROM FINANCING ACTIVITIES:Change in Equity - -Repayment of long term/Short term borrowings including lease liability (net)
(23,067.03) (20,983.74)
Dividends paid on equity shares (5,100.00) (2,913.19)Tax paid on Dividend (1,048.32) (594.28)Interest paid (7,569.39) (5,950.93)Net Cash Used in Financing Activities “C” (36,784.74) (30,442.14)Net increase / (decrease) in cash and cash equivalents (A+B+C) (10,781.02) 14,521.12
Cash and cash equivalents at the beginning of the period 22,018.95 7,492.69Effect of exchange difference during the year 1,486.40 5.14Cash and cash equivalents at the end of the period 12,724.33 22,018.95
- -
Reconciliation of liabilities arising from financing activities:
Borrowings (including Lease Liability) 303,587.97 (21,500.99) 25,189.22 307,276.20Other financial liabilities - Interest accrued 3,995.19 (7,569.39) 7,203.35 3,629.15Other financial liabilities - Net Derivative Contracts 1,867.52 (1,566.04) 1,586.52 1,888.00Net liabilities from financing activities 309,450.68 (30,636.42) 33,979.09 312,793.35
Sd/- Sd/- Sd/-(Rajni Kant) (Vivekanand) (Shashi Shanker)Company Secretary Director (Finance) Chairman
(DIN: 07566552) (DIN: 06447938)
For SPMR & Associates For Thakur, Vaidyanath Aiyar & Co.Chartered Accountants Chartered AccountantsFirm Regn No. 007578N Firm Regn No. 000038N
Sd/- Sd/-Place: New Delhi (Harish Kumar) (K K Upadhyay)Date: June 18, 2020 Partner (M No. 086315) Partner (M No. 096584)
For and on behalf of the Board of Directors of ONGC Videsh Limited
As per our report of even date attached
Cash and cash equivalents includes bank balances held by overseas branches in in respective local currencies which are restricted for use as at31 March 2020 ₹ 10.25 Million (as at 31 March 2019: ₹ 9.40 Million).
ParticularsAs at March
31, 2019Cash flows Non Cash
ChargesAs at March
31, 2020
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
1
2
3
3.1
3.2
Notes to the Standalone Financial Statements for the year ended March 31, 2020
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
As the operating cycle cannot be identified in normal course due to the special nature of industry, the same has been assumed to haveduration of 12 months. Accordingly, all assets and liabilities have been classified as current or non-current as per the Company’soperating cycle and other criteria set out in Ind AS-1 ‘Presentation of Financial Statements’ and Schedule III to the Companies Act,2013.
The standalone financial statements have been prepared in accordance with Ind AS notified under the Companies (Indian AccountingStandards) Rules, 2015 (as amended) and Guidance Note on Accounting for Oil and Gas Producing Activities (Ind AS) issued by theInstitute of Chartered Accountants of India.
The functional currency of the Company is United States Dollar (‘USD’) (Refer note 4.1(a)). The standalone financial statements arepresented in Indian Rupees (‘₹’) (Refer note 3.18) and all values are rounded off to the nearest two decimal million except otherwisestated.
Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between marketparticipants at the measurement date under current market conditions.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision toan existing accounting standard requires a change in the accounting policy hitherto in use.
Statement of compliance
Basis of preparation and presentation
The standalone financial statements have been prepared on the historical cost basis except for certain financial instruments that aremeasured at fair values at the end of each reporting period, as explained in the accounting policies below.
The standalone financial statements, except for cash flow information are prepared using the accrual basis of accounting.
Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards. There is no such notificationwhich would have been applicable from April 1, 2020.
ONGC Videsh Limited (‘ONGC Videsh’ or ‘the Company’) is a public limited company incorporated in India (with a CIN:U74899DL1965GOI004343) having its registered office at Deendayal Urja Bhawan, Tower B, Plot No. 5A-5B, Nelson Mandela Marg,Vasant Kunj, New Delhi – 110070. ONGC Videsh is a wholly owned subsidiary and overseas arm of Oil and Natural Gas CorporationLimited (‘ONGC’).
The Company is mainly engaged in prospecting for and acquisition of oil and gas acreages outside India for exploration, developmentand production of crude oil and natural gas.
Corporate Information
Standards issued but not yet effective
Significant accounting policies
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
(a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
(b)
( c)
3.3 (a)
3.3 (b) Deemed Investment
3.4
The Company records the investments in subsidiaries, associates and joint ventures at cost less impairment loss, if any.
Interest free loan and advances to foreign subsidiaries for which settlement is neither planned nor likely to occur in the foreseeablefuture, The management intent has accounted the same as ‘net investment in foreign operations’ and presented as part of ‘Investment insubsidiaries’.
A joint operation is a joint arrangement whereby the parties that have the joint control of the arrangement have rights to the assets, andobligations for the liabilities relating to the arrangement.
The Company has overseas Joint Operations with various body corporates and/or host country government for exploration, developmentand production activities.
The Company’s share, as per arrangement, in the assets and liabilities along with attributable income and expenditure of the JointOperations is merged on line by line basis with the similar items in the standalone financial statements of the Company, along with theCompany’s income from sale of its share of output and any liabilities and expenses that the Company has incurred in relation to the jointoperations except in case of leases, depreciation, Overlift / underlift, depletion, survey, dry wells, decommissioning liability, impairmentand side-tracking in accordance with the accounting policies of the Company.
The hydrocarbon reserves in such areas are taken in proportion to the participating interest of the Company.
Gain or loss on sale of interest in a joint operation, is recognized in the standalone statement of profit and loss, except that no gain isrecognized at the time of such sale if substantial uncertainty exists about the recovery of the costs applicable to the retained interest or ifthe Company has substantial obligation for future performance.
After initial recognition, the Company determines whether there is any objective evidence of impairment as a result of one or moreevents that occurred after the initial recognition of the net investment in a subsidiary or a joint venture or an associate and that event (orevents) has an impact on the estimated future cash flows from the net investment that can be reliably estimated. If there exists such anobjective evidence of impairment, then impairment loss is recognized with respect to the Company’s investment in a subsidiary or ajoint venture or an associate. When necessary, the cost of the investment is tested for impairment in accordance with Ind AS 36‘Impairment of Assets’ as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs ofdisposal) with its carrying amount, any impairment loss recognized forms part of the cost of the investment. Any reversal of thatimpairment loss is recognized in accordance with Ind AS 36 ‘Impairment of Assets’ to the extent that the recoverable amount of theinvestment subsequently increases.
On disposal of investment in subsidiary, associate and joint venture, the difference between net disposal proceeds and the carryingamounts are recognized in the standalone statement of profit and loss.
Interests in joint operations
The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputsemployed in their measurement which are described as follows:
Investments in subsidiaries, associates and joint ventures
Level 2 inputs are inputs that are observable, either directly or indirectly, other than quoted prices included within level 1 for the asset or liability.
Level 3 inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Company’s assumptions about pricing by market participants.
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
3.5
3.6
Depreciation
Description YearsBuilding 3 to 60Plant and equipment 3 to 40Furniture and Fixtures 3 to 10Vehicles 5 to 20Office Equipment 3 to 15
PPE other than oil & gas assets held for use in the production or supply of goods or services, or for administrative purposes, are statedin the standalone balance sheet at cost less accumulated depreciation and impairment losses, if any. Freehold land is not depreciated.
Depreciation of these PPE commences when the assets are ready for their intended use.
Depreciation is provided on the cost of PPE (other than land, oil and gas assets and properties under construction) less their residualvalues, using the written down value method over the useful life of PPE as stated in Schedule II of the Companies Act, 2013 or based onthe technical assessment by the Company. The management believes that the useful lives as given below best represent the period overwhich management expects to use these assets. In case of PPE pertaining to blocks where the license period is less than the useful lifeof PPE, the company writes off the PPE in the financial year in which the license is expired or the block is surrendered, if no futureeconomic benefits from the PPE are expected. Estimated useful lives of these assets are as under:
The estimated useful lives, residual values and depreciation method are reviewed on an annual basis and if necessary, changes inestimates are accounted for prospectively.
Non-current assets or disposal groups classified as held for sale are measured at the lower of carrying amount and fair value less costs tosell.
Non-current assets or disposal groups are classified as held for sale if their carrying amounts will be recovered principally through a saletransaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset ordisposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of suchassets. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within oneyear from the date of classification as held for sale, and actions required to complete the plan of sale should indicate that it is unlikelythat significant changes to the plan will be made or that the plan will be withdrawn.
Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
Property, plant and equipment (other than Oil and gas assets)
Property, plant and equipment (PPE) in the course of construction for production, supply or administrative purposes are carried at cost,less any recognised impairment loss. The cost of an asset comprises its purchase price or its construction cost (net of applicable taxcredits), any cost directly attributable to bring the asset into the location and condition necessary for it to be capable of operating in themanner intended by the Management and decommissioning cost as per note 3.13. It includes professional fees and, for qualifying assets,borrowing costs capitalised in accordance with the Company’s accounting policy. Such properties are classified to the appropriatecategories of PPE when completed and ready for intended use. Parts of an item of PPE having different useful lives and significant valueand subsequent expenditure on Property, plant and equipment arising on account of capital improvement or other factors are accountedfor as separate components. PP&E which is not ready for its intended use is classified as capital work-in-progress.
Non-current assets held for sale
In case of joint operations, the long term employee benefits are recognised in accordance with the laws of the their respectivejurisdiction.
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
3.7
(i)
(ii)
An item of PPE is de-recognised upon disposal or when no future economic benefits are expected to arise from the continued use of theasset. Any gain or loss arising on the disposal or retirement of an item of PPE is determined as the difference between the net salesproceeds and the carrying amount of the asset and is recognised in the standalone statement of profit and loss.
Intangible assets
Depreciation on additions/deletions to PPE (other than of oil and gas assets) during the year is provided for on a pro-rata basis withreference to the date of additions/deletions except low value items not exceeding USD 100* which are fully depreciated at the time ofaddition.
* USD 100 = ₹ 7,548.00 as on March 31, 2020
Depreciation on subsequent expenditure on PPE (other than of oil and gas assets) arising on account of capital improvement or otherfactors is provided for prospectively over the remaining useful life.
Depreciation on refurbished/revamped PPE (other than of oil and gas assets) which are capitalized separately is provided for over thereassessed useful life.
Depreciation on PPE (other than oil and gas assets) including support equipment and facilities used for exploratory/ developmentdrilling is initially capitalised as part of drilling cost and expensed/depleted as per note 3.11. Depreciation on equipment/ assetsdeployed for survey activities is charged to the standalone statement of profit and loss.
Intangible assets acquired separatelyIntangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation andaccumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives notexceeding five years from the date of capitalisation. The estimated useful life is reviewed at the end of each reporting period andthe effect of any changes in estimate being accounted for prospectively.
Intangible assets are derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains orlosses arising from derecognition of an intangible asset are determined as the difference between the net disposal proceeds andthe carrying amount of the asset and recognised in the standalone statement of profit and loss when the asset is derecognised.
Intangible assets under development - Exploratory wells in progress
All exploration and evaluation costs incurred in drilling and equipping exploratory and appraisal wells are initially capitalized asIntangible assets under development - Exploratory wells in progress till the time these are either transferred to oil and gas assetsas per note 3.11 on completion or expensed as and when determined to be dry or of no further use, as the case may be.
Cost of drilling exploratory type stratigraphic test wells are initially capitalized as Intangible assets under development -Exploratory wells in progress till the time these are either transferred to oil and gas assets as per note 3.11 or expensed whendetermined to be dry or the field / project is surrendered.
Costs of exploratory wells are not carried over unless it could be reasonably demonstrated that there are indications of sufficientquantity of reserves and sufficient progress has been made in assessing the reserves and the economic and operating viability ofthe project. All such carried over costs are subject to review for impairment as per the policy of the Company.
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
3.8
3.9
(i)
(ii) Acquisition cost
Exploration and development stage
Production stage
If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount ofthe asset (or cash generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the statementof profit and loss.
An assessment is made at the end of each financial year to see if there are any indications that impairment losses recognized earlier mayno longer exist or may have come down. The impairment loss is reversed, if there has been a change in the estimates used to determinethe asset’s recoverable amount since the previous impairment loss was recognized. If it is so, the carrying amount of the asset isincreased to the lower of its recoverable amount and the carrying amount that have been determined, net of depreciation, had noimpairment loss been recognized for the asset in prior years. After a reversal, the depreciation charge is adjusted in future periods toallocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. Reversals ofimpairment loss are recognized in the standalone statement of profit and loss.
Impairment testing during exploratory phase is carried out at field / project level when further exploration activities are not planned innear future or when sufficient data exists to indicate that although a development in the specific field/project is likely to proceed, thecarrying amount of the exploration asset is unlikely to be recovered in full from successful development or by sale. Impairment loss isreversed subsequently, to the extent that conditions for impairment are no longer present.
Exploration and Evaluation, Development and Production costs
Pre-acquisition costExpenditure incurred before obtaining the right(s) to explore, develop and produce oil and gas are expensed off as and when incurred.
Acquisition costs cover all costs incurred to purchase, lease or otherwise acquire a property or mineral right proved or unproved in case of acquiring participating interest in oil and gas assets and are accounted as follows:-
Acquisition cost relating to projects under exploration or development are initially accounted as Intangible Assets under development or Capital work in progress - Oil and gas assets respectively. Such costs are capitalized by transferring to oil and gas assets when a well in field/project is ready to commence commercial production. In case of abandonment/relinquishment, such costs are written off.
Acquisition costs of producing oil and gas assets are capitalized under oil and gas assets and amortized using the unit of production method over proved reserves of underlying assets
Impairment of tangible and intangible assets
The Company reviews the carrying amount of its tangible (Oil and gas assets, Development wells in progress (DWIP), and Property,plant and equipment (including Capital Works in Progress) and intangible assets of a ‘Cash Generating Unit’ (CGU) at the end of eachreporting period to determine whether there is any indication that these assets have suffered an impairment loss. If any such indicationexists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is notpossible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generatingunit to which the asset belongs.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cashflows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value ofmoney and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
(iii) Survey cost
(iv) Oil and gas asset under development - Development wells in progress
(v) Production costs
3.10
3.11
Depletion
3.12
Oil and gas assets are depleted using the ‘Unit of Production Method’. The rate of depletion is computed with reference to afield/project/amortisation base by considering the related proved developed reserves and related capital costs incurred includingestimated future decommissioning costs net of salvage value (except acquisition cost). Acquisition cost of oil and gas assets is depletedby considering the proved reserves. These reserves are estimated annually by the Reserve Estimates Committee (‘REC’) formed by theparent company ONGC, which follows the International Reservoir Engineering Procedures.
Side tracking
In the case of an exploratory well, cost of side-tracking is treated in the same manner as the cost incurred on a new exploratory well. Thecost of abandoned portion of side tracked exploratory wells is expensed as ‘Exploration cost written off.’
In the case of development wells, the entire cost of abandoned portion and side tracking is capitalized.
For the purposes of impairment testing, acquisition cost is allocated to each of the Company’s CGUs (or groups of CGUs) that isexpected to benefit from the synergies of the combination.
A CGU to which acquisition cost has been allocated is tested for impairment annually when there is an indication that the CGU may beimpaired. If the recoverable amount of the cash generating unit is less than its carrying amount, the impairment loss is allocated first toreduce the carrying amount of any acquisition cost allocated to the unit and then to the other assets of the CGU pro rata based on thecarrying amount of each asset in the unit. An impairment loss recognized for acquisition cost is not reversed in subsequent periods.
On disposal of the relevant CGU, the attributable carrying amount of acquisition cost is included in the determination of the profit orloss on disposal.
Oil and gas assets
Oil and gas assets are stated at historical cost less accumulated depletion and impairment losses. These are created in respect of field /project having proved developed oil and gas reserves, when the well in the field / project is ready to commence commercial production.Oil & Gas assets which is not ready for its intended use is classified as capital work-in-progress.
Impairment of acquisition costs relating to participating rights
Cost of Survey and prospecting activities conducted in the search of oil and gas are expensed as exploration cost in the year in which these are incurred.
All costs relating to development wells are initially capitalized as development wells in progress and transferred to oil and gas assets on completion.
Production costs include pre-well head and post-well head expenses including depreciation and applicable operating costs of support equipment and facilities.
Cost of temporary occupation of land, successful exploratory wells, all development wells (including service wells), allied facilities,depreciation on support equipment used for drilling and estimated future decommissioning costs are capitalised and classified as oil andgas assets.
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
3.13
3.14
Crude oil in unfinished condition in flow lines up to GGS/platform is not valued as the same is not measurable. Natural Gas is notvalued as it is not stored.
Inventory of stores and spare parts is valued at weighted average cost or net realisable value, whichever is lower. Provisions are madefor obsolete and non-moving inventories.
Unserviceable and scrap items, when determined, are valued at estimated net realisable value.
Any change in the present value of the estimated decommissioning expenditure other than the periodic unwinding of discount isadjusted to the decommissioning provision and the carrying value of the corresponding asset. In case reversal of provision exceeds thecarrying amount of the related asset, the excess amount is recognized in the standalone statement of profit and loss. The unwinding ofdiscount on provision is charged in the statement of profit and loss as finance cost.
Provision for decommissioning cost in respect of assets under joint operations is considered as per participating interest of the Company
Inventories
Crude oil and condensate including inventories in pipelines / tanks are valued at cost or net realisable value whichever is lower. Cost offinished goods is determined on absorption costing method. The value of inventories includes royalty (wherever applicable).
Crude oil in semi-finished condition at Group Gathering Stations (GGS) is valued at cost on absorption costing method or net realisablevalue whichever is lower.
However, actual decommissioning costs will ultimately depend upon future market prices for the necessary decommissioning worksrequired that will reflect market conditions at the relevant time. Furthermore, the timing of decommissioning is likely to depend on whenthe fields cease to produce at economically viable rates.
In the case of producing wells and service wells, if the side-tracking results in additional proved developed oil and gas reserves orincreases the future economic benefits therefrom beyond previously assessed standard of performance, the cost incurred on side trackingis capitalised, whereas the cost of abandoned portion of the well is depleted in accordance with the accounting policy mentioned in note3.11. Otherwise, the cost of side tracking is expensed as ‘Work over expenditure’.
Decommissioning costs
Decommissioning cost includes cost of restoration. Provision for decommissioning costs are recognized when the Company has acontractual, legal or constructive obligation to plug and abandon a well, dismantle and remove a facility or an item of Property, plantand equipment and to restore the site on which it is located.
The amount recognized is the present value of the estimated future expenditure determined using existing technology at current pricesand escalated using appropriate inflation rate till the expected date of decommissioning and discounted up to the reporting date using anominal discount rate.These estimates are reviewed annually to take into account any material changes to the assumptions.
An amount equivalent to the decommissioning provision is recognized along with the cost of the respective assets. Thedecommissioning cost in respect of dry exploratory well is expensed as exploratory well cost.
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
3.15
Underlift - Overlift
3.16
Sale of crude oil and natural gas (net of levies) produced from Intangible assets under development – Exploratory Wells in Progress /Oil & Gas assets under development – Development Wells in Progress is deducted from expenditure on such wells and such surplus, ifany, is recognised as revenue in the Statement of Profit and Loss.The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to thecustomer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction pricesfor the time value of money.
Leases
Revenues are recognized when the Company satisfies the performance obligation by transferring a promised product or service to acustomer. A product is transferred when the customer obtains control of that product which is at the point of transfer of custody tocustomers where usually the title is passed, provided that the contract price is fixed or determinable and collectability of the receivable isreasonably assured.
Each such sale generally represents a single performance obligation.Revenue from a service is recognised in the accounting period in which the service is rendered at contractually agreed rates.
Revenue is measured at the transaction price of the consideration received or receivable and represent amounts receivable for goods andservices provided in the normal course of business, net of discounts and applicable taxes etc. Any retrospective revision in prices isestimated at the time of satisfaction of performance obligation. Any further true up is recognised in the year of such revision.
Any payment received in respect of short lifted gas quantity for which an obligation exists to supply such gas in subsequent periods isrecognised as Contract Liability in the year of receipt. The same is recognised as revenue in the year in which such gas is actuallysupplied or in the year in which the obligation to supply such gas ceases, whichever is earlier.Where the Company acts as an agent on behalf of a third party, the associated income is recognised on a net basis.
Revenues from the production of crude oil and natural gas properties, in which the Company has an interest with other producers, arerecognized based on actual quantity lifted over the period. Any difference as of the reporting date between the entitlement quantityminus the quantities lifted in respect of crude oil, if positive (i.e. under lift quantity) the proportionate production expenditure is treatedas prepaid expenses and, if negative (i.e. over lift quantity), a liability for the best estimate of the Company’s proportionate share ofproduction expenses as per the Joint Operating Agreement (JOA) / Production Sharing Agreement (PSA) is created in respect of thequantity of crude oil to be foregone in future period towards settlement of the overlift quantity of crude oil with corresponding charge tothe Statement of Profit and Loss.
The Company has adopted Ind AS 116 Leases from 1st April 2019. Ind AS 116 "Leases" introduced a single, on-balance sheetaccounting model for lessees. As a result, the company, as a lessee, has recognised right-of-use assets representing its rights to use theunderlying assets and lease liabilities representing its obligation to make lease payments. Lessor accounting remains similar to previousaccounting policies. On initial application, the Company elected to adopt the modified retrospective approach, by recognizing thecumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings as at April 1, 2019,without restating the comparative information.
TransitionEffective April 1, 2019, the Company adopted Ind AS 116 “Leases” and applied the standard to all lease contracts existing on April 1,2019 using the modified retrospective approach. Consequently, For leases that were classified as finance lease under Ind AS 17, thecompany has recognised the carrying amount of the right-of-use asset and the lease liability as at April 1, 2019 as the carrying amount ofthe lease asset and lease liability immediately before that date measured applying Ind AS 17. Comparatives as at and for the year endedMarch 31, 2019 have not been retrospectively adjusted and therefore will continue to be reported under Ind AS 17.
Revenue recognition
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
The following is the summary of practical expedients elected on initial application:
As Lessor
As Lessee
1)
2)
3)
Lease liabilities and Right-of-use assets have been separately presented in the balance sheet and respective lease payments have beenclassified as financing cashflows.
At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability forall lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low valueleases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-linebasis over the term of the lease.
The Company has substantially all of the economic benefits from use of the asset through the period of the lease and
The Company has the right to direct the use of the asset.
Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and leaseliabilities include these options when it is reasonably certain that the option to extend the lease will be exercised /option to terminate thelease will not be exercised.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any leasepayments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They aresubsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful lifeof the underlying asset, however, in case the ownership of such right-of-use asset transfers to the lessee at the end of the lease term, suchassets are depreciated over the useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events orchanges in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, therecoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basisunless the asset does not generate cash flows that are largely independent of those from other assets.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments arediscounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rate. Leaseliabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment ifwhether it will exercise an extension or a termination option.
The company's lease asset class primarily consist of lease of land. Land under perpetual lease is recognized at upfront premium paid forthe lease and the present value of the lease rent obligation. Such leasehold lands are presented as right- of-use assets and notdepreciated. The corresponding liability is recognised as a lease liability.
The Company is not a lessor in any active lease contract. Hence, no further details are being provided.
The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contractconveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contractconveys the right to control the use of an identified asset, the Company assesses whether:
The contract involves the use of an identified asset
1. Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date
2. Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term or low value asset as on the date of initial application
3. Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.
4. Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, Ind AS 116 is appliedonly to contracts that were previously identified as leases under Ind AS 17.
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
Accounting policy under Ind AS 17
3.17
3.18
•
•
•
•
*
Refer note 3.16 - Significant accounting policies- Leases in the Annual Report of the company for the year ended March 31, 2019, forthe policy as per Ind AS 17.
Assets and liabilities (excluding equity share capital and other reserves) for each balance sheet presented has been translated atthe closing rate (as at March 31, 2020: 1 USD = ₹ 75.48*; as at March 31, 2019: 1 USD = ₹ 69.21*) at the date of that balancesheet;
Equity share capital including shareholder’s advance pending allotment of shares have been translated at exchange rates at thedates of transaction. Capital reserve has been translated at exchange rate at the dates of transaction. Other reserves have beentranslated using average exchange rates of the period to which it relates;
Income and expenses for each standalone statement of profit and loss presented have been translated at exchange rates at thedates of transaction except for certain items for which average rate for the period (Year ended March 31, 2020: 1 USD = ₹70.9150*; period ended March 31, 2019: 1 USD = ₹ 69.9458) is used;
All resulting exchange differences have been recognized in other comprehensive income as ‘Exchange differences in translatingthe financial statements of foreign operations’ which will be subsequently reclassified to profit or loss upon disposal of foreignoperations.
determined on the basis of average of State Bank of India 's telegraphic transfer buying and selling rates.
The Company has presented these standalone financial statements in Indian Rupees (‘₹’). The Company has applied the followingprinciples for translating its results and financial position from functional currency (‘USD’) to presentation currency (‘₹’):
Exchange differences arising on a monetary item that forms part of a Company’s net investment in a foreign operation are recognized inthe standalone statement of profit and loss.
Foreign exchange transactions
In the case of unincorporated joint operations, the operator recognizes the entire lease liability, as, by signing the contract, it has primaryresponsibility for the liability towards the third party supplier. Therefore, if, based on the contractual provisions and any other relevantfacts and circumstances, the Company has primary responsibility, it recognizes in the balance sheet: (i) the entire lease liability and (ii)the entire right-of-use asset, unless there is a sublease with the joint operators. On the other hand, if the lease contract is signed by all thepartners of the venture, the Company recognises its share of the right-of-use asset and lease liability based on its working interest. If theCompany does not have primary responsibility for the lease liability, it does not recognise any right-of-use asset or lease liability relatedto the lease contract.
The functional currency of the Company is United States Dollars (‘USD’) which represents the currency of the primary economicenvironment in which it operates.
Transactions in currencies other than the Company’s functional currency (foreign currencies) are recognised at the rates of exchangeprevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies aretranslated using mean exchange rate prevailing on the last day of the reporting period. Non-monetary items that are measured in terms ofhistorical cost in a foreign currency are not retranslated.
Exchange differences on monetary items are recognised in the standalone statement of profit and loss in the period in which they arise.
Translation to presentation currency
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
3.19
•
•
Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees arerecognised during the year when the employees render the service. These benefits include performance incentive and compensatedabsences which are expected to occur within twelve months after the end of the period in which the employee renders the related service.
The cost of short-term compensated absences is accounted as under:
Defined retirement benefit plans comprising of gratuity, post-retirement medical benefits and post-retirement transfer benefits, arerecognized based on the present value of defined benefit obligation which is computed using the projected unit credit method, withactuarial valuations being carried out at the end of each annual reporting period. These are accounted either as current employee cost orincluded in cost of assets as permitted.
Net interest on the net defined liability is calculated by applying the discount rate at the beginning of the period to the net definedbenefit liability or asset and is recognised the standalone statement of profit and loss except those included in cost of assets as permitted.
Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on planassets (excluding net interest as defined above), are recognised in other comprehensive income.
The Company contributes all ascertained liabilities with respect to gratuity to the ONGC’s Gratuity Fund Trust. Other defined benefitschemes are unfunded.
The retirement benefit obligation recognised in the standalone financial statements represents the actual deficit or surplus in theCompany’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefitsavailable in the form of reductions in future contributions to the plans.
Employee benefits
Employee benefits include provident fund, gratuity, compensated absences and post-retirement medical benefits.
Defined contribution plans
Employee benefit under defined contribution plans comprising of Contributory Provident Fund, Employee Pension Scheme 1995,Composite Social Security Scheme are recognized based on the amount of obligation of the Company to contribute to the plan throughthe parent company ONGC. The same are paid to a fund administered through a separate trust, which are expensed during the year.
Defined benefit plans
In case of accumulated compensated absences, when employees render the services that increase their entitlement of futurecompensated absences; and
In case of non-accumulating compensated absences, when the absences occur.
Long-term employee benefits
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee rendersthe related service are recognised as a liability at the present value of the defined benefit obligation as at the balance sheet date less thefair value of the plan assets out of which the obligations are expected to be settled.
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
3.20
3.21
3.22
(i) Current tax
(ii) Deferred tax
Insurance claims
Voluntary retirement scheme
Expenditure on voluntary retirement scheme (VRS) is charged to the standalone statement of profit and loss when incurred.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in thestandalone statement of profit and loss because of items of income or expense that are taxable or deductible in other years anditems that are never taxable or deductible. The Company’s current tax is calculated using tax rates and laws that have beenenacted or substantively enacted by the end of the reporting period. The Company uses estimates and judgements based on therelevant rulings in the areas of allocation of revenue, costs, allowances, and disallowances which is exercised while determiningthe current tax.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the standalonestatement of profit and loss and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities aregenerally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductibletemporary differences to the extent that it is probable that taxable profits will be available against which those deductibletemporary differences can be utilised. Accordingly, the Company exercises its judgement to reassess the carrying amount ofdeferred tax asset as at the end of each reporting period.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is nolonger probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability issettled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of thereporting period.
Deferred tax assets and liabilities are presented separately in the standalone balance sheet except where there is a right of set-offwithin fiscal jurisdiction and an intention is there to settle such balance on a net basis.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in whichthe Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely togive future economic benefits in the form of availability of set-off against future income tax liability. Accordingly, MAT isrecognised as deferred tax asset in the standalone balance sheet when the asset can be measured reliably and it is probable thatthe future economic benefit associated with the asset will be realised.
Income tax expense represents the sum of the current tax and deferred tax.
The Company accounts for insurance claims as under:-
Insurance claims are accounted for on the basis of claims admitted/expected to be admitted to the extent that the amount recoverable canbe measured reliably and it is virtually certain to expect ultimate collection.
Income taxes
Annual Report 2019 - 20 129 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
(iii) Current and deferred tax expense for the year
(iv) First Time application of Appendix C to Ind AS 12
3.23
3.24
3.25
3.26
Contingent liabilities are disclosed along with an estimate of their financial effect, where practicable, in the consolidated financialstatements by way of notes, unless possibility of an outflow of resources embodying economic benefit is remote.
Financial instruments
Abnormal Rig days’ costs are considered as un-allocable and charged to the standalone statement of profit and loss.
Provisions, Contingent liabilities and Contingent assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probablethat the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of thereporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using thecash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of thetime value of money is material).
Contingent assets are disclosed along with an estimate of their financial effect, where practicable, in the consolidated financialstatements by way of notes when an inflow of economic benefits is probable.
Borrowing costs
Borrowing costs specifically identified to the acquisition, construction or production of qualifying assets is capitalized as part of suchassets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costsare charged to the standalone statement of profit and loss.
Abnormal Rig days costs
Current and deferred tax expense is recognised in the standalone statement of profit and loss, except when they relate to itemsthat are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are alsorecognised in other comprehensive income or directly in equity respectively.
The company applied appendix C to Ind AS 12 "uncertainty over income tax treatments" as on April 01, 2019. Appendix Cclarifies application of the recognition, measurement and presentation of Ind AS 12 "Income Taxes" provisions, when there isuncertainty over income tax treatments under the standard. The effect of the first application of the standard on the financial statements, as at April 1, 2019, is Nil.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of theinstruments.
Annual Report 2019 - 20 130 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
3.27
(i) Cash and cash equivalents
(ii) Financial assets at amortised cost
(iii) Financial assets at fair value through other comprehensive income
(iv) Financial assets at fair value through profit or loss
(v) Impairment of financial assets
(vi) Derecognition of financial assets
Financial assets
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to theacquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value throughprofit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initialrecognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profitor loss are recognised immediately in the standalone statement of profit and loss.
On derecognition of a financial asset in its entirety (except for equity instruments designated as fair value through othercomprehensive income (FVTOCI)) ,the difference between the asset’s carrying amount and the sum of the considerationreceived and receivable is recognised in the standalone statement of profit and loss.
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash thatare subject to an insignificant risk of change in value and having original maturities of three months or less from the date ofpurchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted forwithdrawal and usage, unless otherwise stated.
Financial assets are subsequently measured at amortised cost using the effective interest method if these financial assets are heldwithin a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms ofthe financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principalamount outstanding.
Financial assets are subsequently measured at fair value through other comprehensive income if these financial assets are heldwithin a business whose objective is achieved by both collecting contractual cash flows and selling financial assets and thecontractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal andinterest on the principal amount outstanding.
Financial assets are subsequently measured at fair value through profit or loss unless it is measured at amortised cost or at fairvalue through other comprehensive income on initial recognition.
The Company assesses at each balance sheet date whether a financial asset or a group of financial assets is impaired. Ind AS 109‘Financial Instruments’ requires expected credit losses to be measured through a loss allowance. The Company recogniseslifetime expected credit losses for trade receivables that do not constitute a financing transaction. For all other financial assets,expected credit losses are measured at an amount equal to 12 month expected credit losses or at an amount equal to lifetimeexpected losses, if the credit risk on the financial asset has increased significantly since initial recognition.
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when ittransfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.
Annual Report 2019 - 20 131 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
(vii) Dividend and interest
3.28
(a) Classification as debt or equity instruments
(b) Equity instruments
( c) Compound financial instruments
(d) Financial liabilities
Financial liabilities and equity instruments
Dividend income from investments is recognised when the shareholder's right to receive payment is established.Interest income from financial assets is recognised at the effective interest rate applicable on initial recognition. Income inrespect of interest on delayed realization is recognized when there is reasonable certainty regarding ultimate collection.
Interest free loans provided by ONGC are recognized at fair value on the date of disbursement and the difference on fairvaluation is recognized as deemed capital contribution from holding company. The deemed capital contribution from holdingcompany is presented in the statement of changes in equity.
Financial liabilities are measured at amortised cost using the effective interest method.
Transaction costs that relate to the issue of the convertible notes are allocated to the liability and equity components inproportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognised directly inequity. Transaction costs relating to the liability component are included in the carrying amount of the liability component andare amortised over the lives of the convertible notes using the effective interest method.
At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recognised as a liability on an amortised cost basis using the effective interest methoduntil extinguished upon conversion or at the instrument’s maturity date. The conversion option classified as equity is determinedby deducting the amount of the liability component from the fair value of the compound financial instrument as a whole. This isrecognised and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversionoption classified as equity will remain in equity until the conversion option is exercised, in which case, the balance recognisedin equity will be transferred to other component of equity. When the conversion option remains unexercised at the maturity dateof the convertible note, the balance recognised in equity will be transferred to retained earnings. No gain or loss is recognised inthe standalone statement of profit and loss upon conversion or expiration of the conversion option.
The component parts of compound financial instruments issued by the Company are classified separately as financial liabilitiesand equity in accordance with the substance of the contractual arrangements. A conversion option that will be settled by theexchange of a fixed amount of cash or another financial asset for a fixed number of the Company’s own equity instruments is anequity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of itsliabilities. Equity instruments issued by the Company are recognised at the proceeds received. Incremental costs directlyattributable to the issuance of new ordinary equity shares are recognized as a deduction from equity, net of tax effects.
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance withthe substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Annual Report 2019 - 20 132 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
(e) Derecognition of financial liabilities
3.29
3.30
3.31
3.32
4
The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange raterisks, including foreign exchange forward contracts and interest rate swaps.
Inherent in the application of many of the accounting policies used in preparing the Financial Statements is the need for Management tomake judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assetsand liabilities, and the reported amounts of revenues and expenses. Actual outcomes could differ from the estimates and assumptionsused.
Cash flows are reported using the indirect method, whereby profit/(loss) for the year is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associatedwith investing or financing cash flows. The cash flows are segregated into operating, investing and financing activities.
Segment reporting
Operating segments are identified and reported taking into account the different risks and returns, the internal reporting systems and thebasis on which operating results are regularly reviewed to make decisions about resources to be allocated to the segment and assess itsperformance.
Critical accounting judgments, assumptions and key sources of estimation uncertainty
Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured totheir fair value at the end of each reporting period. The resulting gain or loss is recognised in the standalone statement of profit and lossimmediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in thestandalone statement of profit and loss depends on the nature of the hedging relationship and the nature of the hedged item.
Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Earnings per share
Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstandingduring the period. Diluted earnings per share is computed by dividing the profit after tax as adjusted for dividend, interest and othercharges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares by the weighted averagenumber of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares thatcould have been issued upon conversion of all dilutive potential equity shares.
Cash flow statement
Derivative financial instruments
The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled orhave expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid andpayable is recognised in the standalone statement of profit and loss.
Liability component is accounted at amortized cost method using effective interest rate. If there is an early repayment of loan,the proportionate amount of deemed capital contribution from holding company recognized earlier is adjusted.
Annual Report 2019 - 20 133 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
Estimation of uncertainties relating to the global health pandemic from COVID-19:
4.1
(a) Determination of functional currency
(b) Evaluation of indicators for impairment of oil and gas assets
(c ) Exploratory wells
The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts ofreceivables. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of thispandemic, the Company, as at the date of approval of these financial statements has used internal and external sources of informationincluding credit reports and related information, economic forecasts. The impact of COVID-19 on the Company's financial statementsmay differ from that estimated as at the date of approval of these financial statements.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the periodin which the estimates are revised and future periods are affected.
Key source of judgments, assumptions and estimation uncertainty in the preparation of the Financial Statements which may cause amaterial adjustment to the carrying amounts of assets and liabilities within the next financial year, are in respect of oil and gas reserves,impairment, useful lives of property, plant and equipment, depletion of oil and gas assets, decommissioning provision, employee benefitobligations, provisions, provision for income tax, measurement of deferred tax assets and contingent assets and liabilities.
Critical judgments in applying accounting policies
The following are the critical judgments, apart from those involving estimations (Refer note 4.2), that the Management have made in theprocess of applying the Company's accounting policies and that have the significant effect on the amounts recognized in the FinancialStatements.
Currency of the primary economic environment in which the Company operates (‘the functional currency’) is United StatesDollars (USD) in which the Company primarily generates and expends cash. Accordingly, the Management has assessed itsfunctional currency to be USD.
The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant declinein asset’s value, significant changes in the technological, market, economic or legal environment, market interest rates etc.) andinternal factors (obsolescence or physical damage of an asset, poor economic performance of the asset etc.) which could result insignificant change in recoverable amount of the Oil and gas assets.
The determination of whether potentially economic oil and natural gas reserves have been discovered by an exploration well isusually made within one year of well completion, but can take longer, depending on the complexity of the geological structure.Exploration wells that discover potentially economic quantities of oil and natural gas and are in areas where major capitalexpenditure (e.g. an offshore platform or a pipeline) would be required before production could begin, and where the economicviability of that major capital expenditure depends on the successful completion of further exploration work in the area, remaincapitalized on the standalone balance sheet as long as additional exploration or appraisal work is under way or firmly planned.
It is not unusual to have exploration wells and exploratory-type stratigraphic test wells remaining suspended on the standalonebalance sheet for several years while additional appraisal drilling and seismic work on the potential oil and natural gas field isperformed or while the optimum development plans and timing are established. All such carried costs are subject to regulartechnical, commercial and management review on at least an annual basis to confirm the continued intent to develop, orotherwise extract value from, the discovery. Where this is no longer the case, the costs are immediately expensed.
Annual Report 2019 - 20 134 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
4.2
a) Estimation of provision for decommissioning
b) Impairment of assets
c) Estimation of reserves
Assumptions and key sources of estimation uncertainty
Information about estimates and assumptions that have the significant effect on recognition and measurement of assets, liabilities,income and expenses is provided below. Actual results may differ from these estimates.
The Value in use of the producing/developing CGUs is determined considering future cash flows estimated based on Proved andProbable Reserves. Full estimate of the expected cost of evaluation/development is also considered while determining the valuein use.
The year-end reserves of the Company are estimated by the Reserves Estimation Committee (REC) of the holding company Oiland Natural Gas Corporation Limited (ONGC), which follows international reservoir engineering procedures consistently.
In assessing the production profile the Company assesses its reserves through the full period, considering all contractuallypossible extensions, over which they are economically producible without restricting them to the term of license
The Company estimates provision for decommissioning as per the principles of Ind AS 37 ‘Provisions, Contingent Liabilitiesand Contingent Assets’ for the future decommissioning of oil and gas assets at the end of their economic lives. Most of thesedecommissioning activities would be in the future, the exact requirements that may have to be met when the removal eventsoccur involve uncertainty. Technologies and costs for decommissioning are constantly changing. The timing and amounts offuture cash flows are subject to significant uncertainty.
The timing and amount of future expenditures are reviewed at the end of each reporting period, together with rate of inflation forescalation of current cost estimates and the interest rate used in discounting the cash flows. The interest rate used to determinethe provision for decommissioning at each reporting date is based on the risk free rate adjusted for the risks associated witheach asset/business. The economic life of the oil and gas assets is estimated on the basis of long term production profile of therelevant oil and gas asset.
Determination as to whether, and by how much, a CGU is impaired involves Management estimates on uncertain matters suchas future prices, the effects of inflation on operating expenses, discount rates, production profiles for crude oil and natural gas.For oil and gas assets, the expected future cash flows are estimated using Management’s best estimate of future crude oil andnatural gas prices, production and reserves volumes.
The present values of cash flows are determined by applying pre-tax discount rates that reflects current market assessments oftime value of money and the risks specific to the liability in respect of each of the CGUs. Future cash inflows from sale of crudeoil are computed using the future prices, on the basis of market-based forward prices of the Dated Brent crude oil as perassessment by Bloomberg or Brent Crude oil forward/forecast prices by independent reputed third parties and its co-relationswith benchmark crudes and other petroleum products. Future cash flows from sale of natural gas are also computed based on theexpected future prices on the basis of the prices determined in accordance with the respective agreements and / or marketforecast.
The discount rate used is based upon the cost of capital from an established methodology. The discount rates applied in theassessment of impairment calculation are re-assessed each year.
Annual Report 2019 - 20 135 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
d) Determination of cash generating unit (CGU)
e) Defined benefit obligation (DBO)
The Company estimates its reserves annually and the reserves are disclosed at the end of the financial year i.e. as at 1st of April.The Company is having partnership with global majors in various producing and discovered assets across the world havingparticipating interest as non-operator, joint operator and operator. The Operator / Joint operating company of each asset evaluatereserves of the respective asset on an annual basis, and the Company's representatives interact dynamically throughTechnical/Operating committee meetings, wherein estimates of reserves are discussed and finalized. On receipt of the approvedreserves for each asset, the Company discusses the same with reserves estimate experts from E&D Directorate of the parentcompany ONGC and put up the same for deliberation and approval by Reserves Estimate Committee (REC) under theChairmanship of Director (Exploration) of the parent company ONGC.
Volumetric estimation is the main process of estimation which uses reservoir rock and fluid properties to calculate hydrocarbonsin-place and then estimate that portion which will be recovered from it from a given date forward, under existing economicconditions, by established operating practices and under existing government regulations. As the field gets matured withreasonably good production history, performance methods such as material balance, simulation, decline curve analysis areapplied to get more accurate assessments of reserves. For many of the producing and discovered assets in which the Companyhas stake, the concerned Operators and Joint operating companies uses the services of third party agencies for due diligence andaudit.
The annual revision of estimates is based on the yearly exploratory and development activities and results thereof. New InplaceVolume and Ultimate Reserves are estimated for new field discoveries or new pool discoveries in already discovered fields.Also, appraisal activities lead to revision in estimates due to new subsurface data. Similarly, reinterpretation exercise is alsocarried out for old fields due to necessity of revision in petro physical parameters, updating of static & dynamic models andperformance analysis leading to change in reserves. Intervention of new technology, change in classifications and contractualprovisions also necessitates revision in estimation of reserves.
The Company is engaged mainly in the business of oil and gas exploration and production in Onshore and Offshore. In casewhere the fields are using common production/transportation facilities and are sufficiently economically interdependent thesame are considered to constitute a single cash generating unit (CGU).
Management’s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation,medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions maysignificantly impact the DBO amount and the annual defined benefit expenses.
Annual Report 2019 - 20 136 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
5 Oil and Gas Assets
Particulars
CostOpening balance 497,200.92 447,613.32 Transfer from Exploratory wells in progress - 760.44 Transfer from Development wells in progress 12,061.48 14,963.45 Increase/(decrease) in decommissioning costs 1,071.43 (50.62)Additions during the year 1,457.78 4,548.47 Deletion/Retirement during the year (4.97) (0.30)Effect of exchange differences (Refer note 5.1) 45,982.27 557,768.91 29,366.16 497,200.92
Less: Accumulated depletion and impairmentAccumulated depletion Opening balance 218,299.80 187,239.18 Depletion for the year (Refer note 33) 21,366.27 18,886.37 Deletion during the year - (0.09)Effect of exchange differences (Refer note 5.1) 21,152.03 260,818.10 12,174.34 218,299.80
Accumulated impairmentOpening balance 10,807.24 4,810.51 Provided during the year (refer note- 47 ) 9,368.20 5,739.22 Write back of impairment - - Effect of exchange differences (Refer note 5.1) 1,582.13 21,757.57 257.51 10,807.24
Carrying amount of oil and gas assets 275,193.24 268,093.88
5.1
5.2 The Company has 60% participating interest in Block XXIV, Syria. In view of prevalent situation in Syria, operations of the projectare temporarily suspended since April 29, 2012. In view of the same, impairment had been made in respect of Oil and Gas Assetsamounting to ₹ Nil (period ended March 31, 2019 ₹ Nil). The cumulative impairment as at March 31, 2020 is ₹ 80.23 million (as atMarch 31, 2019 ₹ 73.57 million) in respect of the project.
Represents exchange difference on account of translation of the financial statements from functional currency to presentationcurrency. Refer note 3.18 and 4.1(a).
As at March 31, 2020 As at March 31, 2019
Annual Report 2019 - 20 137 of 373
ON
GC
VID
ESH
LIM
ITE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
6O
ther
Pro
pert
y, P
lant
and
Equ
ipm
ent
Car
ryin
g am
ount
of:
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1,
2019
Free
hold
land
4.70
4.
31
Perp
etua
l lea
se la
nd
-
3
,168
.30
Build
ings
6
,842
.49
6
,791
.04
Plan
t and
equ
ipm
ent
3
,593
.18
3
,929
.43
Furn
iture
and
fixt
ures
8
4.72
1
14.9
5 V
ehic
les
383
.29
370
.13
Offi
ce e
quip
men
t
7
01.2
0
4
90.3
3 T
otal
1
1,60
9.58
14,
868.
49
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t Fr
eeho
ld la
ndPe
rpet
ual l
ease
la
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uild
ings
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nd
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tFu
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icle
sO
ffic
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uipm
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ance
as a
t Mar
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1, 2
019
4.31
3,1
68.3
0
12,
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44
4
2,32
3.95
7
38.9
4
1,1
88.3
6
7,3
14.4
6
67,
333.
76
Add
ition
s dur
ing
the
year
-
-
176
.80
4
9.39
3.
49
8
2.49
3
21.8
0
6
33.9
7 R
ecla
ssifi
edon
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unt
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nof
Ind
AS
116
(Ref
erno
te 7
.1)
-
(3,1
68.3
0)
-
-
-
-
-
(3
,168
.30)
Adj
ustm
ent p
ursu
ant t
o bu
sines
s tra
nsfe
r
-
-
-
-
(1
99.0
1)
(34.
67)
(1
8.07
)
(2
51.7
5)D
ispos
als/
adj
ustm
ents
/ tra
nsfe
r
-
-
(12.
49)
(1
5.30
)
(7.
49)
(1
8.90
)
(57.
36)
(111
.54)
Effe
ct o
f exc
hang
e di
ffere
nces
(Ref
er n
ote
6.1)
0.39
-
1
,151
.65
3
,836
.48
5
3.87
1
09.5
2
6
78.5
1
5,8
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2 B
alan
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s at M
arch
31,
202
0
4.
70
-
13,
911.
40
4
6,19
4.52
5
89.8
0
1,3
26.8
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39.3
4
70,
266.
56
Acc
umul
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reci
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pair
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tFr
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la
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ffic
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Tot
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ance
as a
t Mar
ch 3
1, 2
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-
-
5
,804
.40
3
8,39
4.52
6
23.9
9
8
18.2
3
6,8
24.1
3
52,
465.
27
Dep
reci
atio
n ex
pens
e
-
-
7
01.8
1
6
91.8
1
35.
03
9
8.11
1
63.3
1
1,6
90.0
7 A
djus
tmen
t pur
suan
t to
busin
ess t
rans
fer
-
-
-
-
(194
.05)
(3
3.58
)
(17.
55)
(245
.18)
Elim
inat
ed o
n di
spos
al /
adju
stm
ents
/ tra
nsfe
r
-
-
(7.
82)
(
7.36
)
(5.
81)
(1
6.47
)
(55.
77)
(9
3.23
)Ef
fect
of e
xcha
nge
diffe
renc
es (R
efer
not
e 6.
1)
-
-
5
70.5
2
3,5
22.3
7
45.
92
7
7.22
6
24.0
2
4,8
40.0
5 B
alan
ce a
s at M
arch
31,
202
0
-
-
7,0
68.9
1
42,
601.
34
505
.08
943
.51
7
,538
.14
5
8,65
6.98
6.1
6.2
6.3
6.4
6.5
All
item
s of o
ther
Pro
perty
, pla
nt &
equ
ipm
ent a
re n
ot d
irect
ly re
late
d to
pro
duct
ion
activ
ities
.Pr
oper
ty, p
lant
& e
quip
men
t (in
clud
ing
freeh
old
land
& b
uild
ing)
incl
ude
the
com
pany
's sh
are
of a
sset
s in
join
t ope
ratio
ns (l
ocat
ed o
utsid
e of
Indi
a). A
ccor
ding
ly th
e tit
le d
eed/
owne
rshi
p do
cum
ents
are
in th
e po
sses
sion
of th
e op
erat
ors.
Rep
rese
nts e
xcha
nge
diffe
renc
e on
acc
ount
of t
rans
latio
n of
the
finan
cial
stat
emen
ts fr
om fu
nctio
nal c
urre
ncy
to p
rese
ntat
ion
curr
ency
. Ref
er n
ote
3.18
and
4.1
(a).
The
Com
pany
carr
ies
onits
busin
ess
inre
spec
tof
expl
orat
ion,
deve
lopm
enta
ndpr
oduc
tion
ofhy
droc
arbo
nsun
der
agre
emen
tsw
ithho
stgo
vern
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Annu
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9 - 2
013
8 of
373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
7 Right-of-use assets
7.1 Carrying amount of Right-of-use assets :
Opening Balance -Reclassified on account of adoption of Ind AS 116 (Refernote 6)
3,168.30
Additions during the year -Disposals/ adjustments / transfer -Depreciation expense (Refer note 7.5) -Effect of exchange differences (Refer note 7.6) 287.03Closing Balance 3,455.33
7.2 Lease Liability
Non-current Current Non- current Current
- Lease liability * 369.78 - 369.78 -369.78 - 369.78 -
7.2.1 Movement in Lease Liability
ParticularsYear ended
March 31, 2020Year ended
March 31, 2019
Opening Balance 369.78 369.78Addition during the year - -Finance cost (Refer note 7.5) 31.65 31.65Deletion during the year - -Payment (31.65) (31.65)Effect of exchange difference (refer footnote ) - -Closing Balance 369.78 369.78
LandParticulars
As at March 31, 2020
As at March 31, 2020 As at March 31, 2019Particulars
* The Company has applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, Ind AS116 is applied only to those contracts that were previously identified as leases under Ind AS 17. The lease liability as at March 31, 2019represents the amount of lease liability recognised under Ind AS 17. (Refer note 7.5 & 51)
The Company has taken leased land located at Vasant Kunj, New Delhi which has been classified as lease. The lease term is tillperpetuity. Interest rate applied to lease liability under leases is 8.38% per annum.
Annual Report 2019 - 20 139 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
7.2.2
As at March 31, 2020
As at March 31, 2019
Not later than one year - -Later than one year and not later than five years - -Present value of minimum lease payments - -For Contractual maturities of lease liability later than 5 years refer note 7.5.
7.3 The following are the amounts recognised in profit or loss:ParticularsDepreciation expense for right-of-use assets (Refer note 7.5) -Interest expense on lease liabilities 31.65Expense relating to short-term leases (Refer note 32) 54.99Expense relating to leases of low-value assets 11.81Variable lease payments -Total Amount recognised in profit & Loss 98.45
7.4 The following are the amounts recognised in cash flow statement:Particulars As at March 31,
2020As at March 31,
2019Interest portion of lease liability 31.65 31.65
7.5
7.6
As at March 31, 2020
Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency.Refer note 3.18 and 4.1(a).
UndiscountedMinimum Lease Payments
Under the lease agreement, the Company is required to pay annual lease rental of ₹ 31.65 million till perpetuity. The Company hasrecognised a right of use asset (land) based on perpetual lease term. No depreciation is being charged on such right of use asset as thelease term extends till perpetuity.
The lease obligations represents the perpetuity value of annualized lease payment, which is ₹ 377.69 million and will remain same tillperpetuity. The undiscounted value of the contractual maturity of lease liability for a perpetual lease is not determinable. However, thepresent value of such liability has been recognised by the company. The finance charge will be ₹ 31.65 million on annual basis tillperpetuity, which has been charged to the statement of profit & loss.
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet theobligations related to lease liabilities as and when they fall due.
Contractual maturities of lease liabilities
Annual Report 2019 - 20 140 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
8 Capital Work-in-Progress
ParticularsA) Oil and gas assets(i) Development Wells-In-ProgressOpening balance 1,288.71 2,521.11 Expenditure during the year 14,073.22 13,549.58 Transfer to Oil and gas assets (12,061.48) (14,963.45)Effect of exchange differences (Refer note 8.3) 246.25 3,546.70 181.47 1,288.71
Less: Accumulated Impairment Opening balance 115.13 107.99 Effect of exchange differences 10.43 125.56 7.14 115.13
Carrying amount of development wells-in-progress 3,421.14 1,173.58
(ii) Oil and gas facilities in progress Opening balance 19,547.98 15,789.85 Other Adjustments (Refer note 52) (16,277.76) - Movement during the year 1,871.44 2,743.58 Effect of exchange differences (Refer note 8.3) 843.15 5,984.81 1,014.55 19,547.98
Less: Accumulated ImpairmentOpening balance 38.89 36.48 Provided during the year - - Effect of exchange differences (Refer note 8.3) 3.52 42.41 2.41 38.89
Carrying amount of Oil and gas facilities in progress 5,942.40 19,509.09
B) OthersBuildings 10.43 13.98 Plant and equipment 90.27 2.34
Carrying amount of other capital works-in-progress 100.70 16.32
8.1
8.2
8.3
Borrowing cost amounting to ₹ 125.88 million has been capitalised under the Oil and Gas facilities in progress during the year endedMarch 31, 2020 (for the period ended March 31, 2019 ₹ 172.28 million). The weighted average capitalization rate on funds borrowed is3.46% per annum (during the year ended March 31, 2019 : 4.74% per annum).
The borrowing cost capitalisation ceased with effect from January 1st, 2020, as a result of the transfer of the qualifying assets related to theMozambique business. The Mozambique business is transferred during the year to its wholly owned subsidiary OVRL India (OVRL IndiaLimited), refer Note 52 for details.
Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency.Refer note 3.18 and 4.1(a).
As at March 31, 2020 As at March 31, 2019
The Company has 60% participating interest in Block XXIV, Syria. In view of prevalent situation in Syria, operations of the project aretemporarily suspended since April 29, 2012. In view of the same, impairment had been made in respect of development wells in progressamounting to ₹ Nil (period ended March 31, 2019 ₹ Nil). The cumulative impairment as at March 31, 2020 is ₹ 125.56 (as at March 31,2019 ₹ 115.13 million) in respect of the project.
Annual Report 2019 - 20 141 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
9 Intangible Assets
ParticularsApplication softwareCostOpening balance 1,128.60 1,019.90Additions during the year 30.86 41.82Disposals/adjustments/transfer (14.33) (0.08)Effect of exchange differences (Refer note 9.1) 103.31 1,248.44 66.96 1,128.60
Less: Accumulated amortisation Opening balance 884.63 662.57Amortisation during the year 108.20 180.17Disposals/adjustments/transfer (12.88) -Effect of exchange differences (Refer note 9.1) 86.28 1,066.23 41.89 884.63
Carrying amount of intangible assets 182.21 243.97
9.1 Represents exchange difference on account of translation of the financial statements from functional currency to presentationcurrency. Refer note 3.18 and 4.1(a).
As at March 31, 2020 As at March 31, 2019
Annual Report 2019 - 20 142 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
10 Intangible Assets under Development
ParticularsA. Exploratory wells in progressGross costOpening balance 24,077.28 24,989.12 Expenditure during the year 4,033.14 (80.20)Other Adjustments (Refer note 52) (17,730.73) - Transfer to oil and gas assets - (760.44)(Wells written off)/written back during the year (1,036.04) (1,490.48)Effect of exchange differences (Refer note 10.6) 1,276.87 10,620.52 1,419.28 24,077.28
Less : Accumulated impairmentOpening Balance 5,202.02 4,879.57 Provided during the year - - Effect of exchange differences (Refer note 10.6) 471.27 5,673.29 322.45 5,202.02
Carrying amount of exploratory wells in progress 4,947.23 18,875.26
B. Acquisition costCostOpening balance 178,284.02 162,377.72 Other Adjustments (Refer note 52) (181,825.09) - Expenditure during the year - 5,231.19 Acquisition cost written off during the year - - Effect of exchange differences (Refer note 10.6) 4,446.84 905.77 10,675.11 178,284.02
Less : Accumulated impairment Opening Balance 17,729.07 16,629.23 Other Adjustments (17,314.84) - Provided during the year - - Effect of exchange differences (Refer note 10.6) 491.54 905.77 1,099.84 17,729.07
Carrying amount of acquisition cost - 160,554.95
As at March 31, 2020 As at March 31, 2019
Annual Report 2019 - 20 143 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
10.1
10.2
10.3
10.4
10.5
10.6
In respect of Block Farsi, Iran, the Company in consortium with other partners entered into an Exploration Service Contract (ESC)with National Iranian Oil Company (NIOC) on December 25, 2002. After exploratory drilling, FB area of the block proved to be a gasdiscovery and was later rechristened as Farzad-B. NIOC announced the Date of Commerciality for Farzad-B as August 18, 2008.However, the contractual arrangement with respect to development has not been finalized, so far. Hence, Impairment has been made inrespect of the Company’s investment in exploration in the Farsi Block. The impairment as at March 31, 2020 is ₹ 2,573.32 million (asat March 31, 2019 ₹ 2,359.56 million).
Acquisition cost relates to the cost for acquiring property or mineral rights of proved or unproved oil and gas properties which arecurrently under Exploration / Development stage; such cost will be transferred to Oil and gas assets on commencement of commercialproduction from the project or written off in case of relinquishment of exploration project.
Borrowing cost amounting to ₹ 298.27 million has been capitalised during the year ended March 31, 2020 (for the year ended March31, 2019 ₹408.20 million) in Exploratory wells in progress. The weighted average capitalization rate on funds borrowed is 3.46% perannum (during the year ended March 31, 2019: 4.74% per annum). The borrowing cost capitalisation ceased with effect from January 1st, 2020, as a result of the transfer of the qualifying assets relatedto the Mozambique business. The Mozambique business was transferred to the subsidiary of the company - OVRL (ONGC VideshRovuma Limited, India), refer Note 52 for details.
Borrowing cost amounting to ₹ 3,821.09 million has been capitalised during the year ended March 31, 2020 (for the year ended March31, 2019 ₹5,231.19 million) in Acquisition cost. The weighted average capitalization rate on funds borrowed is 3.46% per annum(during the year ended March 31, 2019: 4.74% per annum). The borrowing cost capitalisation ceased with effect from January 1st, 2020, as a result of the transfer of the qualifying assets relatedto the Mozambique business. The Mozambique business was transferred to the subsidiary of the company - OVRL (ONGC VideshRovuma Limited, India), refer Note 52 for details.
Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency. Refer note 3.18 and 4.1(a).
The Company has 60% Participating Interest in Block XXIV, Syria. In view of prevalent situation in Syria, operations of the projectare temporarily suspended since April 29, 2012. In view of the same provision had been made in respect of exploratory wells inprogress. The impairment as at March 31, 2020 is ₹ 3,099.97 million (as at March 31, 2019 ₹ 2,842.46 million) in respect of theproject.
Annual Report 2019 - 20 144 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
11 Investments
Particulars As at March 31, 2020 As at March 31, 2019
At Cost less impairment :Gross Investment in equity instruments 202,299.83 185,477.20 Less : Accumulated Impairment 29,974.53 27,470.30 (a) Net Investment in equity instruments 172,325.30 158,006.90
Gross Investment in preference shares 154,515.20 141,679.87 Less : Accumulated Impairment 127,100.26 28,764.54 (b) Net Investment in preference shares 27,414.94 112,915.33
62,632.69 2,927.69 1,455.49 -
(c) Net Deemed equity investment in Subsidiaries 61,177.20 2,927.69
At Fair value through profit and loss: 30,228.72 25,082.71
Investments 291,146.16 298,932.63
11.1 Investments in equity instruments
No. of Shares Amount AmountUnquoted investments (fully paid)A(i). Investments in subsidiaries at cost(a) ONGC Narmada Limited
Naira 1.00 20,000,000 11.73 10.75
(b) ONGC Amazon Alaknanda Limited
USD 1.00 12,000 0.91 0.83
(c) Imperial Energy Limited
USD 1.00 1,450 23,700.82 21,732.03
(d) Carabobo One AB
Euro 11.19457 377,678 4,298.03 3,941.00
(e) ONGC (BTC) Limited
USD 1.00 973,791 427.11 391.63
(f) ONGC Videsh Rovuma Limited
USD 1.00 65,000 4.91 3.46
(g) ONGC Videsh Atlantic Inc., USA
USD 1.00 2,040,000 153.98 141.19
(h) ONGC Nile Ganga B.V. (Class A)
Euro 453.78 40 14,310.40 13,121.66
(i) ONGC Nile Ganga B.V. (Class B)
Euro 453.78 100 32,985.11 30,245.09
(j) ONGC Nile Ganga B.V. (Class C)
Euro 1.00 880 1,383.59 1,268.66
(k) Indus East Mediterranean Exploration Limited
NIS 0.01 15,035,000 3.40 3.12
Less : Accumulated ImpairmentGross Deemed Investment in Subsidiaries
As at March 31, 2019As at March 31, 2020Face value/paid up value
Particulars Investment currency
(a) Investment in mutual funds- for site restoration fund
Annual Report 2019 - 20 145 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
(l) ONGC Videsh Singapore Pte. Ltd.
SGDUSD
1500,000
1500,000
37.74 34.61
(m) OVRL India Limited
INR 10.00 1,000,000 10.86 -
Total investments in subsidiaries 77,328.59 70,894.03Less : Accumulated Impairment 28,088.27 25,740.72Investments in subsidiaries (I) 49,240.32 45,153.31
A(ii). Investments in subsidiaries at cost
No. of Shares Amount Amount(a) Beas Rovuma Energy Mozambique Limited
USD No par value 7,680 123,058.56 112,836.29
123,058.56 112,836.29
B. Investments in associate at cost(a) Mozambique LNG1 Company Pte.Ltd.
USD 1.00 - 17.30
(b) Moz LNG1Holding CompanyLimited
USD 1.00 350000 26.42 -
Total investments in associate 26.42 17.30Less : AccumulatedImpairment
- -
Investments in associates (II) 26.42 17.30
C. Investments in joint ventures at costa) Sudd Petroleum Operating Company
USD 1.00 241.25 0.02 0.02
b) ONGC MittalEnergy Limited
USD 1.00 24,990,000 1,886.24 1,729.56
Total investments in joint ventures 1,886.26 1,729.58Less : Accumulated Impairment 1,886.26 1,729.58Investments in joint ventures(III) - -
Net investment in equity instruments (I+II+III) 49,266.74 45,170.61
Aggregate carrying value of unquoted investments 49,266.74 45,170.61Aggregate amount of impairment in value of investments 29,974.53 27,470.30
11.1.1 Movement of value of investments in subsidiaries equity instruments
Year ended March 31, 2020
Year ended March 31, 2019
70,894.03 172,338.29 11.26 3.71
- - 6,423.30 (101,447.97)
77,328.59 70,894.03
Investment currency
No Par Value
Particulars
Balance at beginning of the periodAdditions during the year
Effect of exchange differences (Refer note 11.1.5)Balance at end of the period
Buy back/redemption during the year
Particulars As at March 31, 2020 As at March 31, 2019
Annual Report 2019 - 20 146 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
11.1.2 Movement of value of investments in associate equity instruments
Year ended March 31, 2020
Year ended March 31, 2019
17.30 16.237.09 -- -
2.03 1.0726.42 17.30
11.1.3 Movement of value of investments in joint ventures equity instruments
Year ended March 31, 2020
Year ended March 31, 2019
1,729.58 1,622.37- -- -
156.68 107.211,886.26 1,729.58
11.1.4 Movement of impairment in value of equity instruments
Year ended March 31, 2020
Year ended March 31, 2019
27,470.30 25,767.5414.66 -
2,489.57 1,702.7629,974.53 27,470.30
11.1.5
11.1.6 Details of subsidiaries
Principal activity Place of incorporation and principal place of
business
Proportion of ownership interest/ voting rights held by the Company
Proportion of ownership interest/ voting rights held by the Company
As at March 31, 2020 As at March 31, 2019
Exploration and production of hydrocarbons
Incorporated in the Netherlands having operations in Brazil, Venezuela, Syria, Myanmar, Sudan and South Sudan
100% for class A and classB; 55% for Class C
100% for class A and classB; 55% for Class C
Exploration and production of hydrocarbons
Incorporated in Bermuda having operations in Colombia
100% 100%
(a) ONGC Nile Ganga B.V.
(b) ONGC Amazon Alaknanda Limited
Balance at end of the period
Balance at beginning of the periodAdditions during the yearBuy back/redemption during the yearEffect of exchange differences (Refer note 11.1.5)Balance at end of the period
Particulars
Balance at beginning of the period
Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency.Refer note 3.18 and 4.1(a).
Particulars
Balance at beginning of the periodRecognised during the year (Refer note 37)Effect of exchange differences (Refer note 11.1.5)
Additions during the yearBuy back/redemption during the yearEffect of exchange differences (Refer note 11.1.5)Balance at end of the period
Particulars
Name of subsidiary
Annual Report 2019 - 20 147 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
Transportation of crude oil
Incorporated in Cayman Islands having operations in Azerbaijan
100% 100%
Exploration and production of hydrocarbons
Incorporated in Sweden having operations in Venezuela
100% 100%
Exploration and production of hydrocarbons
Incorporated in Cyprus having operations in Russia
100% 100%
Exploration and production of hydrocarbons
Incorporated in Mauritius having operations in Mozambique
60% 60%
Exploration and production of hydrocarbons
Incorporated and having operations in Nigeria
100% 100%
Exploration and production of hydrocarbons
Incorporated in Mauritius having operations in Mozambique
100% 100%
Consultancy Incorporated in United States of America having international operations
100% 100%
Exploration and production of hydrocarbons
Incorporated and having operations in Israel
100% 100%
Exploration and Production of hydrocarbons
Incorporated in Singapore having operations in Russia
100% 100%
Exploration and production of hydrocarbons
Incorporated in India having operations in Mozambique
100%
Refer policy 3.3 for method followed on accounting of investment in subsidiaries.
(k) ONGC Videsh Singapore Pte Ltd.
(f) Beas Rovuma Energy Mozambique Limited
(g) ONGC Narmada Limited
(h) ONGC Videsh Rovuma Limited
(i) ONGC Videsh Atlantic Inc.
(j) Indus East Mediterranean Exploration Limited
(l) ONGC Videsh Rovuma Limited, India (Incorporated on April 15, 2019)
(c) ONGC (BTC) Limited
(d) Carabobo One AB
(e) Imperial Energy Limited
Annual Report 2019 - 20 148 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
11.1.7 Details of associate
Proportion of ownership interest/ voting rights held by the Company
Proportion of ownership interest/ voting rights held by the Company
As at March 31, 2020 As at March 31, 2019Marketing and Shipping of Liquefied Natural Gas (LNG)
Incorporated in Singapore having principal operations in Singapore and Mozambique
- 10%
Marketing and Shipping of Liquefied Natural Gas (LNG)
Incorporated in Abu Dhabi having principal operations in Singapore and Mozambique
10% -
11.1.8 Details of joint ventures
Proportion of ownership interest/ voting rights held by the Company Proportion of ownership
interest/ voting rights held by the Company
As at March 31, 2020 As at March 31, 2019Exploration and Production of hydrocarbons
Incorporated in Mauritius having operations in South Sudan
24.125% 24.125%
Exploration and Production of hydrocarbons
Incorporation in Cyprus having operations in Syria and Nigeria
49.98% 49.98%
11.2 Investments in preference shares at cost
No. of Shares Amount Amount
Unquoted investments(fully paid)A. Investments in subsidiaries(a) ONGC Amazon Alaknanda Limited
USD 1.00 125,001,131 9,435.09 8,651.33
(b) Imperial Energy Limited
USD 1.00 192,210 145,080.11 133,028.54
Investment in subsidiaries 154,515.20 141,679.87 Less : Accumulated Impairment 127,100.26 28,764.54 Net Investment in preference shares 27,414.94 112,915.33
Aggregate carrying value of unquoted investments 27,414.94 112,915.33 Aggregate amount of impairment in value of investments 127,100.26 28,764.54
Name of Associate
Name of joint venture
(a) Mozambique LNG1 Company Pte. Ltd.
Place of incorporation and principal place of
business
Principal activity
Place of incorporation and principal place of
business
Principal activity
As at March 31, 2019As at March 31, 2020Particulars Investment currency
Face value/paid up value
(b) Moz LNG1 Holding Company Limited
(a) Sudd Petroleum Operating Company
(b) ONGC Mittal Energy Limited
Annual Report 2019 - 20 149 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
11.2.1 Movement of value of investments in subsidiaries preference shares
As at March 31, 2020 As at March 31, 2019141,679.87 132,897.80
- -- -
12,835.33 8,782.07154,515.20 141,679.87
11.2.2 Movement of impairment in value of investment in preference shares
Year ended March 31, 2020
Year ended March 31, 2019
28,764.54 17,678.80 89,940.13 10,022.94 8,395.59 1,062.80 127,100.26 28,764.54
11.2.3
11.3 Deemed Investment in Subsidiaries Year ended March 31,
2020Year ended March 31,
2019 10,073.56 2,708.54 6.52 - 300.06 219.15 52,252.55 -
Balance at end of the period 62,632.69 2,927.69 Less : Accumulated Impairment (Refer note 47.1) 1,455.49 - Net Deemed equity investment in Subsidiaries 61,177.20 2,927.69
11.4
Particulars
(c) Carabobo One AB
(a) Beas Rovuma Energy Mozambique Limited(b) Indus East Mediterranean Exploration Limited
Balance at end of the period
Particulars
Balance at beginning of the period
Effect of exchange differences (Refer note 11.2.3)
The investments for site restoration in respect of Sakhalin-1, Russia are invested by J P Morgan Chase Bank N.A., the Foreign PartyAdministrator (FPA) in accordance with the portfolio investment guidelines provided under the Sakhalin-1 Decommissioning fundingagreement entered into between the FPA and the foreign parties to the Consortium in accordance with the related production sharingagreement (PSA). The proceeds from the investment will be utilized for decommissioning liability to the Russian State as per the PSA.Refer note 25 and note 44.2.
(d) ONGC Videsh Rovuma Limited, India
Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency.Refer note 3.18 and 4.1(a).
ParticularsBalance at beginning of the periodAdditions during the year
Effect of exchange differences (Refer note 11.2.3)Balance at end of the period
Buy back/redemption during the year
Recognized during the year (Refer note 47.1)
Annual Report 2019 - 20 150 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
12 Trade Receivables
ParticularsNon- current Current Non- current Current
a) Considered good- Secured - - - -b) Considered good- Unsecured - 7,577.22 - 11,042.44c) Having significant increase in credit risk - - - -d) Credit impaired 152.75 - 140.06 -Less: Allowance for impairment loss 152.75 - 140.06 -Trade receivables - 7,577.22 - 11,042.44
12.1
12.2
12.3
Particulars As at March 31, 2020 As at March 31, 2019Customers with outstanding balance of more than 5% of Tradereceivables
7,095.35 10,961.10
Other customers 634.62 221.40 Trade receivables 7,729.97 11,182.50
- -12.4
12.5 Age of trade receivable
Particulars As at March 31, 2020 As at March 31, 2019Within the credit period 7,145.34 10,310.98 1-30 days past due 431.88 731.46 31-90 days past due - - More than 90 days past due 152.75 140.06 Total 7,729.97 11,182.50
- -12.6 Movement of allowance for credit impaired receivables
Particulars Year ended March 31, 2020 Year ended March 31, 2019Balance at beginning of the period 140.06 131.38Effect of exchange differences (Refer note 12.6.1) 12.69 8.68Balance at end of the period 152.75 140.06
12.6.1
Generally, the Company enters into crude oil sales contracts with reputed Oil Marketing Companies (OMCs) / International OilCompanies (IOCs) / National Oil Companies (NOCs) on the basis of tendering for each of its cargo’s. However, the Company has alsoentered into some long-term sales arrangement with International Oil Companies (IOCs) / National Oil Companies (NOCs) for crude oilsales and supply of natural gas.
The Company generally sells its products on an average credit period of around 30 days. In respect of gas sales in some of the projects, theCompany receives payments in advance in accordance with the respective sales contract. In respect of a long term gas sales contract withone of the national oil companies, a credit period of 40 days is allowed. Interest is not charged on trade receivables for the applicable creditperiod from the date of invoice. For delayed period of payments, interest is charged as per respective arrangements, which is generallydetermined as one month ICE LIBOR + 2% per annum over the applicable Bank Rate on the outstanding balance.
The Company assesses impairment loss on trade receivables on the basis of facts and circumstances relevant to each customer. Usually,Company collects all its receivables within the contractually allowed credit periods.The Company has concentration of credit risk due to the fact that the Company has significant receivables from Oil Marketing Companiesand International Oil Companies (IOCs). However these are reputed National Oil Companies (NOCs).
Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency.Refer note 3.18 and 4.1(a).
As at March 31, 2019As at March 31, 2020
The trade receivables breakup between customers having outstanding more than 5% and other customers is-
Annual Report 2019 - 20 151 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
13 Loans
ParticularsNon- current Current Non- current Current
(a) Security deposits - Considered good- Secured - - - - - Considered good- Unsecured 28.82 - 33.48 - - Having significant increase in credit risk - - - - - Credit impaired - - - -Less: Allowance for impairment loss - - - -
28.82 - 33.48 -
(b) Loans to subsidiaries - Considered good- Secured - - - - - Considered good- Unsecured 191,615.26 2,670.80 10,305.80 2,358.64 - Having significant increase in credit risk - - - - - Credit impaired 2,370.31 - 2,173.41 -Less: Allowance for impairment loss 2,370.31 - 2,173.41 -
191,615.26 2,670.80 10,305.80 2,358.64
(c) Loans to employees (Refer note 13.2) - Considered good- Secured 130.06 41.80 119.33 56.41 - Considered good- Unsecured 8.79 8.07 10.69 7.74 - Having significant increase in credit risk - - - - - Credit impaired - - - -Less: Allowance for impairment loss - - - -
138.85 49.87 130.02 64.15191,782.93 2,720.67 10,469.30 2,422.79
13.1 Movement of allowance for credit impaired loans to subsidiaries
Particulars Year ended March 31, 2020
Year ended March 31, 2019
Balance at beginning of the period 2,173.41 2,038.69Effect of exchange differences(Refer note 13.1.1) 196.90 134.72Balance at end of the period 2,370.31 2,173.41
13.1.1
13.2
Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency.Refer note 3.18 and 4.1(a).
Loans to employees includes an amount of ₹ 1.03 million (As at March 31, 2019 ₹0.72 million) outstanding from key managerialpersonnel. (refer note 42.2.7)
As at March 31, 2020 As at March 31, 2019
Annual Report 2019 - 20 152 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
14 Deposits for Site Restoration Fund
Particulars As at March 31, 2020 As at March 31, 2019
Deposits for site restoration fund 1,313.83 958.211,313.83 958.21
15 Finance Lease Receivables
Particulars As at March 31, 2020 As at March 31, 2019
Finance lease receivables (Refer note 15.1 and 15.2)Unsecured, considered doubtful 5,641.71 5,219.59Less: Allowance for uncollectible lease payments 5,641.71 5,219.59
- -
15.1 Movement of Impairment for doubtful finance lease receivables
Particulars Year ended March 31, 2020
Year ended March 31, 2019
Balance at beginning of the period 5,219.59 4,840.47Recognized during the year (47.68) 59.89Effect of exchange differences (Refer note 15.1.1) 469.80 319.23Balance at end of the period 5,641.71 5,219.59
15.1.1
15.2
Deposit for site restoration (decommissioning) in respect of Block 06.1, Vietnam is made in a separate bank accountmaintained for funding of decommissioning in accordance with the decision of the Government of Vietnam dated March 21,2007 and Agreement dated December 10, 2014 for decommissioning fund security between Vietnam Oil and Gas Group, TNKVietnam B.V. and ONGC Videsh Limited. Refer note 25.
Represents exchange difference on account of translation of the financial statements from functional currency to presentationcurrency. Refer note 3.18 and 4.1(a).
The Company had completed the 12”X 741 Kms multi-product pipeline from Khartoum refinery to Port Sudan for the Ministryof Energy and Mining of the Government of Sudan (GOS) on Build, Own, Lease and Transfer (BOLT) basis and handed overthe same for operation to GOS during the financial year 2005-06. The project was implemented in consortium with Oil IndiaLimited, Company’s share being 90%. Non-current finance lease amount shows the non-receipted lease payments againstwhich 100% allowance has been made.
Annual Report 2019 - 20 153 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
16 Other Financial Assets
ParticularsNon- current Current Non- current Current
(a) Derivatives assets measured at fair value through profit and loss(Refer note 16.1)
44.44 - 113.10 -
(b) Advances recoverable in cash or kind- Unsecured, considered good - 4.00 - 7.65
(c) Receivable from Holding Company- Unsecured, considered good - 152.24 - -
(d) Receivable from Subsidiaries- Unsecured, considered good - 9.17 43.02 14.03
(e) Receivable from Joint Venture partners - Unsecured, considered good - 3,586.69 - 4,042.62 Less: Impairment (Refer note 16.3) - 1,569.24 - 1,076.93
(f) Receivable from operators- Unsecured, considered good - 740.13 - 554.05 Less: Impairment (Refer note 16.3) - 4.88 - 78.87
(g) Interest accrued on- Bank deposits
Unsecured, considered good - 124.00 - 21.70 - Site restoration fund
Unsecured, considered good - 0.61 - 0.56 - Loan to subsidiaries
Unsecured, considered good - 2,606.71 - 1,938.21 Less: Impairment - -
(h) Carried Interest- Unsecured, considered doubtful - - - - Less: Impairment for doubtful carried interest (Refer note 16.3)
- - - -
(i) Others - - - 141.26 (j) Deposits with bank greater than 3 months - 16,179.90 - -
Total 44.44 21,829.33 156.12 5,564.28
16.1
(at amortised cost wherever applicable)
ONGC Videsh has entered into options contract covering Euro 52.5 million (₹ 4,341.53 million) (in previous year covering Euro 35million (₹ 2,721.51 million)) out of the principal amount of 2.75% Euro 525 million Bonds (₹ 43,415.34 million). There is MTM gainposition of ₹ 44.44 million as on 31.03.2020 (MTM gain of ₹ 113.10 million as on 31.03.2019) for these options contracts.
As at March 31, 2019As at March 31, 2020
Annual Report 2019 - 20 154 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
16.2
16.3 Movement of impairment for:
Particulars Year ended March 31, 2020
Year ended March 31, 2019
Year ended March 31, 2020
Year ended March 31, 2019
Balance at beginning of the period - 14,389.71 1,076.93 293.20 Recognized during the year - (10,299.15) 370.87 772.48 Effect of exchange differences (Refer note 16.4) - (4,090.56) 121.44 11.25 Balance at end of the period - - 1,569.24 1,076.93
Particulars Balance as at March 31, 2020
Balance as at March 31, 2019
Balance at beginning of the period 78.87 563.03 Recognized during the year (76.24) (526.90)Effect of exchange differences (Refer note 16.4) 2.25 42.74 Balance at end of the period 4.88 78.87
16.4 Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency. Refer note 3.18 and 4.1(a).
The Company has 25% participating interest (PI) in the Satpayev Exploration Block Kazakhstan. As per the carry agreement, theCompany is financing the expenditure ( 25% own PI plus 75% PI of Kazmunaygas (KMG)) in the exploration blocks during theexploration and appraisal period. During the financial year 2018-19, the company has written off the carried interest in the block, asthe amount is not recoverable.
Doubtful Carried interest Receivable from Joint Venture Partner
Receivable from Operator
Annual Report 2019 - 20 155 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
17 Tax Assets /Liabilities (net)
Non-current Tax Assets (Net)
Particulars As at March 31, 2020 As at March 31, 2019Non- Current tax assetsTaxes paid 11,612.07 16,430.05
Non- Current tax liabilitiesIncome tax payable 9,970.89 9,970.82
1,641.18 6,459.23
Current Tax liabilities (Net)
Particulars As at March 31, 2020 As at March 31, 2019Current tax assetsTaxes paid 680.04 26.69
Current tax liabilitiesIncome tax payable 3,954.42 4,442.03
3,274.38 4,415.34
The above non-current tax liabilities include provisions on account of disputed income tax demands in India under theIncome tax Act 1961 amounting to ₹ 748.65 Million as at March 31, 2020 (₹ 748.65 Million as at March 31, 2019) inrespect of disputed disallowances/additions made by the Assessing Officer on tax positions not covered by favorable ordersfrom Appellate authorities.
Annual Report 2019 - 20 156 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
18 Other Assets
ParticularsNon- current Current Non- current Current
(a) Advance to Employees - 1.07 - 0.73
(b) DepositsWith government/tax authorities - 816.73 - 212.84
(c) Carried Interest- Unsecured, Considered Good (refer no 52) - - 6,392.38 -- Unsecured, Considered Doubtful 227.83 - 193.59 -Less: Impairment for carried interest 227.83 - 193.59 - (Refer notes 18.1 to 18.3)
(d) Prepaid expenses for underlift quantity - 101.29 - 118.09
(e) Prepayments- Guarantee charges 1,055.83 433.24 692.59 401.03- Others - 409.43 - 297.99
Total 1,055.83 1,761.76 7,084.97 1,030.68
18.1
18.2
18.3
Particulars Year ended March 31, 2020
Year ended March 31, 2019
Balance at beginning of the period 193.59 155.35 Recognized during the year 15.69 28.27 Effect of exchange differences (Refer note 18.3.1) 18.55 9.97 Balance at end of the period 227.83 193.59
18.3.1
The Company has participating interest (PI) in Block 5A South Sudan, SS-04 Bangladesh, SS-09 Bangladesh, EP-3 Myanmarand B-2 Myanmar. As per the carry agreements in respect of these exploratory blocks the carried interest during the exploratoryperiod will be refunded in the event of commercial production from the project. The same is shown above as unsecured,considered doubtful.
Impairment has been made towards the amount of carried interest as at March 31, 2020 is ₹ 227.83 million (as at March 31,2019 ₹ 193.59 million) with respect to Block 5A South Sudan, SS-04 Bangladesh, SS-09 Bangladesh, EP-3 Myanmar and B-2Myanmar being under exploration period, as there was no certainty of commercial discovery in the exploration stage.
Movement of Impairment for doubtful carried interest
Represents exchange difference on account of translation of the financial statements from functional currency to presentationcurrency. Refer note 3.18 and 4.1(a).
As at March 31, 2019As at March 31, 2020
Annual Report 2019 - 20 157 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
19 Inventories
Particulars
Finished goods 16.63 13.64Stores and spares 9,765.13 9,781.76 9,131.40 9,145.04
Less: Allowance for obsolete / non-moving inventories 2,579.36 2,470.43Total 7,202.40 6,674.61
19.1
19.2
20 Cash and Cash Equivalents
ParticularsBalances with banks 8,757.31 6,298.76Bank deposits with original maturity upto 3 months 3,964.81 15,718.39Cash on hand 2.21 1.80
12,724.33 22,018.95
20.120.2
20.3
20.4
As at March 31, 2020
Cash and Cash Equivalents includes ₹ 3,336.18 Million (Previous year : ₹ 89.85 Million) based on the books of joint operators located outside India.
In case of joint operators where the property in crude oil produced does not pass on upto a specific delivery point, the stock ofcrude oil till such delivery point is not recognized by the Company.
As at March 31, 2019
As at March 31, 2020 As at March 31, 2019
Cash on hand represents cash balances held by overseas branches in respective local currencies and includes ₹ 1.42 million heldby imprest holders (as at March 31, 2019 ₹ 1.19 million).Balances with bank includes amount held by overseas branches in Libya which are restricted for use as at 31 March 2020 ₹10.25 Million (as at March 31, 2019 ₹ 9.40 million).
Stores and spares (net of provision) includes ₹ 7,185.30 Million (Previous year : ₹ 6,660.53 Million ) based on the books of joint operators located outside India.
The deposits maintained by the Company with banks comprise of short term deposits, which can be withdrawn by the Company
Annual Report 2019 - 20 158 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
21 Equity Share Capital
Particulars As at March 31, 2020 As at March 31, 2019
Equity share capital 150,000.00 150,000.00
150,000.00 150,000.00
Authorised:2,500,000,000 equity shares of ₹ 100 each 250,000.00 250,000.00
Issued and subscribed: 1,500,000,000 equity shares of ₹ 100 each 150,000.00 150,000.00
Fully paid equity shares: 1,500,000,000 equity shares of ₹ 100 each fully paid up 150,000.00 150,000.00
Total 150,000.00 150,000.00
21.1 Reconciliation of equity shares outstanding at the beginning and at the end of the reporting period:
Share capital(₹ in million)
Balance as at March 31, 2018 1,500,000,000 150,000.00Issue of equity share capital - -
Balance as at March 31, 2019 1,500,000,000 150,000.00Issue of equity share capital - -
Balance as at March 31, 2020 1,500,000,000 150,000.00
21.2 Terms / rights attached to equity shares
21.3 Details of shares held by the holding company and its nominees:-
No. of share Amount No. of share Amount
Oil and Natural Gas Corporation Limited, the holding company and its nominees
1,500,000,000 150,000.00 1,500,000,000 150,000.00
21.4
21.5
21.6 Details of shareholders holding more than 5% shares in the Company are as under:-
No. of Share % holding No. of Share % holding
Oil and Natural Gas Corporation Limited, the holding company and its nominees
1,500,000,000 100% 1,500,000,000 100%
Name of equity share holders
The Company has only one class of equity shares having a par value of ₹ 100 per share. Each holder of equity shares is entitled to one voteper share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual GeneralMeeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, afterdistribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Name of equity share holders
As at March 31, 2019
As at March 31, 2019As at March 31, 2020
As at March 31, 2020
Aggregate number of bonus share allotted, share allotted pursuant to contract without payment being received in cash and share bought backduring the year of 5 year immediately preceding the reporting date: NIL
Share reserved for issue under option and contract or commitment for sale of share or disinvestment, including the incomplete terms andcondition : NIL
Particulars Number of shares
Annual Report 2019 - 20 159 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
22 Other Equity
Particulars As at March 31, 2020 As at March 31, 2019
A. Deemed capital contribution from holding company (Refer note 22.1)
5,092.99 4,345.87
B. Reserve and Surplus- Capital reserve 174.08 174.08- Debenture redemption reserve 62,006.02 64,591.57- General reserve 15,656.85 19,219.62- Retained earnings 10,809.04 17,402.51
C. Exchange differences on translating the financial statements of foreign operations (Refer note 22.6)
91,129.79 80,339.10
184,868.77 186,072.75
Particulars As at March 31, 2020 As at March 31, 2019
(a) Capital reserves (Refer note 22.2)Balance at beginning of period 174.08 174.08Changes during the year - -Balance at end of period 174.08 174.08
(b) Debenture redemption reserve (Refer note 22.3)Balance at beginning of period 64,591.57 79,175.20Transfer from Retained Earnings - -Transfer to General Reserve (2,585.55) (14,583.63)Balance at end of period 62,006.02 64,591.57
(c) General reserve (Refer note 22.4 and 22.5)Balance at beginning of period 19,219.62 8,252.65Transfer from Debenture Redemption Reserve 2,585.55 14,583.63Dividends (5,100.00) (3,000.00)Dividend distribution tax (1,048.32) (616.66)Transfer from Retained earnings - -Balance at the end of the period 15,656.85 19,219.62
(d) Retained earnings (Refer note 22.5)Balance at beginning of period 17,402.51 4,127.73Profit/ (loss) for the period (72,644.83) 13,267.75Other comprehensive income arising from remeasurements of defined benefit obligation, net of income tax
72.97 7.03
Adjustment of Retained Earnings on Transfer of Mozambique Business (Refer Note:52)
65,978.39 -
Transfer to Debenture redemption reserve - -Transfer to General Reserve - -Balance at end of period 10,809.04 17,402.51
(e) Exchange differences in translating the financial statements of the foreign operationsBalance at the beginning of the period 80,339.10 65,665.93Reclassification of accumulated FCTR to P&L on disposal of Foreign Operations (refer note: 52)
(12,542.08) -
Changes during the year 23,332.77 14,673.17Balance at the end of the period 91,129.79 80,339.10
Annual Report 2019 - 20 160 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
22.1
(i)
(ii)
22.2
22.3
The Debenture redemption reserve position is as under:Particulars As at March 31, 2020 As at March 31, 2019
(i) Unsecured 8.54% 10 Years Non- Convertible Redeemable Bonds in the nature of Debenture - Series II *
- 2,585.55
(ii) Unsecured 4.625% 10 year USD Bonds - USD 750 million 12,299.86 12,299.86(iii) Unsecured 3.75% 10 year USD Bonds - USD 500 million 12,153.02 12,153.02(iv) Unsecured 2.75% 7 year EUR Bonds - EUR 525 million 12,946.68 12,946.68(v) Unsecured 3.25% 5 year USD Bonds - USD 750 million 24,606.46 24,606.46
Total 62,006.02 64,591.57
22.4
22.5
22.6
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the generalreserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, itemsincluded in the general reserve will not be reclassified subsequently to the statement of profit and loss.
The amount that can be distributed by the Company as dividends to its equity shareholders is determined considering therequirements of the Companies Act, 2013.
In respect of the year ended March 31, 2019, the Company has declared and paid a final dividend of ₹ 3.40 per share (previous year₹ 2.00 per share) of fully paid equity shares of par value of ₹ 100 each in its Annual General Meeting held on August 29, 2019.
The Board of Directors has recommended dividend of ₹ 2.00 per share for the year ended March 31, 2020 (Previous year ₹ 3.40 pershare).
Exchange differences in translating the financial statements from functional currency USD ($) to presentation currency INR (₹) isrecognised as an item of Other Comprehensive Income that will be reclassified to profit or loss. Refer note 3.18 and 4.1(a).
The Company has obtain interest loans as well as financial guarantees from the parent company ONGC. The amount of ₹ 5,092.99million (as at March 31, 2019 ₹ 4,345.87 million) shown as deemed capital contribution from holding company includes:
₹ 3,492.63 million (as at March 31, 2019 ₹ 2,745.51 million) towards the fair value of financial guarantee given without anyconsideration and
Capital reserve is recognized by the Company in respect of gains on the sale of a part of the participating interest in respect of Block06.1, Vietnam where the consideration received for partial farm out in unproved property was not higher than the total cost.
₹ 1,600.36 million (as at March 31, 2019 ₹ 1,600.36 million) towards fair value of interest free loan.
* Unsecured 8.54% 10 Years Non- Convertible Redeemable Bonds in the nature of Debenture - Series II - INR 3,700 Million repaid on January 6, 2020.
Debenture redemption reserve is created by the Company out of the Retained earnings for the purpose of redemption of Debentures /Bonds when they are due for redemption. This reserve remains invested in the business activities of the Company.
Annual Report 2019 - 20 161 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
23 Borrowings
ParticularsNon- current Current Non- current Current
Unsecured – at amortised cost (i) Bonds (other than ₹ currency) (Refer note 23.1) 137,023.17 - 126,648.60 51,574.39(ii) Non-convertible redeemable debentures (Refer note 23.2) - - - 3,700.00(iii) Term loans from bank (Refer note 23.3) 112,125.54 57,757.71 121,295.20 -(iv) Loan from holding company - - - -Total 249,148.71 57,757.71 247,943.80 55,274.39
23.1 Bonds (other than ₹ currency)
ParticularsUSD 750 millions unsecured non-convertible Reg S BondsUSD 500 millions unsecured non-convertible Reg S BondsEUR 525 millions unsecured Euro BondsUSD 750 millions unsecured non-convertible Reg S BondsTotal
The terms of above bonds are mentioned below:
Particulars Listed in Issue Price Denomination Date of loan issue
Due date of Maturities
Coupon
(i) USD 750 million unsecured non-convertible Reg S Bonds
Singapore Exchange (SGX)
99.454% US$ 200,000 and integral multiples of US$ 1,000 in excess thereof.
July 15, 2014 July 15, 2024 4.625%, payable semi-annually in arrears
(ii) USD 500 million unsecured non-convertible Reg S Bonds
Singapore Exchange (SGX)
99.950% US$ 200,000 and integral multiples of US$ 1,000 in excess thereof.
May 7, 2013 May 7, 2023 3.75%, payable semi-annually in arrears
(iii) EUR 525 million unsecured Euro Bonds
Frankfurt Stock Exchange
99.623% Euro 100,000 and multiples of Euro 1,000 thereafter.
July 15, 2014 July 15, 2021 2.75%, payable annually in arrears
Repaid during the year(i) USD 750 million unsecured non-convertible Reg S Bonds
Singapore Exchange (SGX)
99.598% US$ 200,000 and integral multiples of US$ 1,000 in excess thereof.
July 15, 2014 July 15, 2019 3.25%, payable semi-annually in arrears
51,574.39 43,156.87
137,023.17
56,165.2037,701.10
51,499.65 34,569.33
- 178,222.99
40,579.62
All the above bonds are guaranteed for repayment of principal and payment of interest by Oil and Natural Gas Corporation Limited, the parentcompany. There is no periodical put/ call option. The bonds are repayable in full (bullet repayment) on the above mentioned maturity date.
As at March 31, 2020 As at March 31, 2019
As at March 31, 2020 As at March 31, 2019
Annual Report 2019 - 20 162 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
23.2 Non-Convertible Redeemable Debenture (Rupee Bonds)
The term of Non-Convertible Redeemable Debenture (Rupee Bonds) is given below:
Particulars Amount Date of Issue Date of redemption Coupon
Unsecured non-convertible redeemable bonds in the nature of Debentures- Series II of face value ₹ 1 million each
3,700.00 January 6, 2010 January 6, 2020 8.54%, payable annually in
arrears
23.3 Term loan from banks
The term of term loan are given below:
Particulars As at March 31, 2020
As at March 31, 2019
Date of Issue Term of Repayment
Coupon
USD 775 million (Previous year USD 1,775 Million) Long Term loans(Refer note 23.3.1)
57,757.71 121,295.20 November 27, 2015 Bullet repayment on November 27, 2020
Libor + 0.95% payable quarterly
USD 500 million Long Term loans
37,475.82 - July 12, 2019 Bullet repayment on July 12, 2024
Libor + 1% payable quarterly/half yearly
USD 1,000 million Long Term loans(Refer note 23.3.1)
74,649.72 - March 30, 2020 Bullet repayment on March 30, 2025
Libor + 0.95% payable quarterly/half yearly
Total 169,883.25 121,295.20
23.3.1
23.3.2 The Term loan is guaranteed for repayment of principal and payment of interest by Oil and Natural Gas Corporation Limited, the parentcompany.
The Term loan was obtained from a syndicate of commercial banks to part finance acquisition of 10% stake in Area 1, Mozambique fromAnadarko. The company obtained a Term loan amounting to USD 1,000 Million on March 30, 2020 from a syndicate of commercial banks to partrefinance USD 1,775 Million term loan. The proceeds of this loan were used to prepay the Term Loan amounting to USD 1,000 million onMarch 30, 2020.
The above debentures were listed on National Stock Exchange of India Ltd. (NSE). The debentures were guaranteed by Oil and Natural GasCorporation Limited, the parent company. Further the Company was required to maintain 100% asset cover as per Listing Agreement for DebtSecurities. There was no periodical put/ call option. The unsecured 8.54% 10 Years Non- Convertible Redeemable Bonds in the nature ofDebenture - Series II were repaid on January 6, 2020.
Annual Report 2019 - 20 163 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
24 Other Financial Liabilities
ParticularsNon- current Current Non- current Current
Derivative liabilities measured at fair value through profit and loss (Refer note 24.1)
1,932.44 - 1,980.62 -
Non-recourse deferred credit (net) - - - 396.89Payable to operators - 3,172.69 - 3,382.02Bonus payable for extension of Production sharing agreement (Refer note 24.2)
3,898.30 1,031.56 4,424.03 945.87
Payable to holding company - - - 215.23Payable to subsidiary company - 443.66 - 0.29Deposits from suppliers / vendors - 3.48 - 9.24Interest accrued but not due on Bonds (other than ₹ currency) 461.17 1,949.33 658.85 2,189.70- Non-convertible redeemable debentures - - - 73.58- Term loans 38.48 1,180.17 1,036.74 36.32Others - 2,281.78 - 1,024.48
Total 6,330.39 10,062.67 8,100.24 8,273.62
24.1
24.2
(at amortised cost wherever applicable)
ONGC Videsh has entered into cross-currency swap contracts covering ₹ 3,700.00 million debentures (in previous year covering ₹3,700.00 million debentures). There is MTM loss position of Nil as on 31.03.2020 (MTM loss of ₹ 1,396.28 million as on31.03.2019) for cross-currency swap contracts. All the derivative contracts related to ₹ 3,700.00 million debentures have been settledon maturity date i.e. on January 06, 2020.
As at March 31, 2019
In respect of ACG, Azerbaijan project, participating interest (PI) is revised to 2.31% from 2.7213% as per amended restated ACGPSA, Amended JOA, and other related agreements / Head of Agreements (HOA) etc. (with effective date of January 1, 2017) for ACGPSA extension upto December 2049 as jointly agreed by all partners with SOCAR, the National Oil Company of Azerbaijan.Necessary adjustments to Company's share of assets, liabilities, revenues and expenses have been made during the year ended March31, 2018 for the same and liability is recognised in respect of amount payable to SOCAR on account of reduction in PI w.e.f. January1, 2017.
ONGC Videsh has entered into forward contracts covering Euro 199.50 million (₹ 16,497.83 million) (in previous year covering Euro199.50 million (₹ 15,512.61 million)) out of the principal amount of 2.75% Euro 525 million Bonds (₹ 43,415.34 million). There isMTM loss position of Rs.1,932.44 million as on 31.03.2020 (MTM loss of ₹ 584.34 million as on 31.03.2019) for forward contracts.
As at March 31, 2020
Annual Report 2019 - 20 164 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
25 Provisions
ParticularsNon-current Current Non- current Current
Provision (refer note 25.1)- Provision for decommissioning (Refer note 25.2) 44,071.65 - 37,641.26 -- Provision for minimum work program commitment (Refer note 25.3)
- 1,887.00 - 1,730.25
- Provision for Employee Benefits - - - -44,071.65 1,887.00 37,641.26 1,730.25
25.1 Movement for provisions
Particulars
Year ended March 31, 2020
Year ended March 31, 2019
Year ended March 31, 2020
Year ended March 31, 2019
Opening Balance 37,641.26 34,011.80 1,730.25 1,681.43Addition during the year 2,837.65 1,607.64 - -Writeback during the year - (211.02) - (62.95)Effect of exchange difference (refer note 25.4) 3,592.74 2,232.84 156.75 111.77Closing Balance 44,071.65 37,641.26 1,887.00 1,730.25
25.2
25.3
25.4
Liability for decommissioning/site restoration comprises of the future cost of decommissioning oil / gas wells, facilities and related flowlines etc. The Company estimates provision for decommissioning as per the principles of Ind AS 37 ‘Provisions, Contingent Liabilitiesand Contingent Assets’ for the future decommissioning of oil and gas assets at the end of their economic lives. The timing and amountsof future cash flows are subject to significant uncertainty. The economic life of the oil and gas assets is estimated on the basis of longterm production profile of the relevant oil and gas assets. The provision for decommissioning is reviewed annually.
Provision for minimum work commitment as at March 31, 2020 is in respect of Area 43, Libya. (as at March 31, 2019 for Area 43,Libya).
Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency.Refer note 3.18 and 4.1(a).
Provision for decommissioning Provision for minimum work program commitment
As at March 31, 2020 As at March 31, 2019
Annual Report 2019 - 20 165 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
26 Deferred Tax Liabilities (net)
The following is the analysis of deferred tax assets/(liabilities) presented in the standalone balance sheet:Particulars As at March
31, 2020As at March
31, 2019Deferred tax assets 4,244.91 21,299.43 Deferred tax liabilities 126,068.23 163,313.53 Deferred Tax Liabilities (net) 121,823.32 142,014.10
Particulars Opening balance as at
March 31, 2019
Recognised in profit or loss for the period
Recognised in other
comprehensive income
Adjustment on account of common control business
combination (Refer Note 52)
Effect of exchange
differences (refer note
26.2)
Closing balance as at March 31,
2020
1 2 3 4 5 (1+2+3+4)Deferred tax (liabilities) / assets in relation to:Deferred Tax AssetsProvisions (Receivables) 3,967.16 (2,765.45) 181.38 1,383.09 Carry forward losses 16,713.52 (15,031.56) 546.32 2,228.28 Unutilised tax credits 618.75 (38.77) 53.56 633.54 Others - - Total Deferred Tax Assets 21,299.43 (17,835.78) - 781.26 4,244.91 Deferred Tax LiabilitiesProperty, plant andequipment/Intangibles
100,960.41 3,322.28 (48,602.33) 6,532.37 62,212.73
Foreign taxes 19,723.20 (5,712.75) 1,419.05 15,429.50 Exchange differences on translating thefinancial statements of foreignoperations (refer note 26.2)
42,629.92 - 5,796.08 48,426.00
Total Deferred Tax Liabilities 163,313.53 (2,390.47) 5,796.08 (48,602.33) 7,951.42 126,068.23 Net Deferred Tax Liabilities 142,014.10 15,445.31 5,796.08 (48,602.33) 7,170.16 121,823.32
Particulars Opening balance as at
March 31, 2018
Recognised in profit or loss for the period
Recognised in other
comprehensive income
Effect of exchange
differences (refer note
26.2)
Closing balance as at March 31,
2019
1 2 3 4 (1+2+3+4)Deferred tax (liabilities) / assets in relation to:Deferred Tax AssetsProvisions (Receivables) 8,475.25 (5,122.03) - 613.94 3,967.16 Carry forward losses 25,765.28 (10,868.70) - 1,816.94 16,713.52 Unutilised tax credits 618.74 (41.32) - 41.33 618.75 Others - - - - - Total Deferred Tax Assets 34,859.27 (16,032.05) - 2,472.21 21,299.43 Deferred Tax LiabilitiesProperty, plant andequipment/Intangibles
87,891.01 7,338.65 - 5,730.75 100,960.41
Foreign taxes 21,900.52 (3,663.07) - 1,485.75 19,723.20 Exchange differences on translating thefinancial statements of foreignoperations (refer note 26.2)
34,748.41 - 7,881.51 - 42,629.92
Total Deferred Tax Liabilities 144,539.94 3,675.58 7,881.51 7,216.50 163,313.53 Net Deferred Tax Liabilities 109,680.67 19,707.63 7,881.51 4,744.29 142,014.10
26.1
26.2 Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency. Refer note 3.18and 4.1(a).
Deferred income tax assets have not been recognized on the unutilized MAT credit u/s 115JAA of the Income-tax Act 1961 amounting to ₹ 9,441.88million (previous year ₹ 15,860.23 million) as it is probable that tax authorities may challenge utilization of MAT credit generated through the foreigntax credit.
Annual Report 2019 - 20 166 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
27 Trade Payables- Current
Particulars As at March 31, 2020 As at March 31, 2019
Trade payable 13,040.82 10,884.01
Total 13,040.82 10,884.01
27.1 Trade payables -Total outstanding dues of Micro and Small enterprises *
S. No. Particulars As at March 31, 2020 As at March 31, 2019
a) Principal remaining unpaid but not due as at period end - -b) Interest amount remaining unpaid but not due as at period end - -
c) Interest paid by the Company in terms of Section 16 of Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during the year
- -
d) Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under Micro, Small and Medium Enterprises Development Act, 2006
- -
e) Interest accrued and remaining unpaid as at period end - -f) Further interest remaining due and payable even in the
succeeding periods, until such date when the interest dues as above are actually paid to the small enterprise
- -
* Based on the information available from Vendors27.2
28
Particulars As at March 31, 2020 As at March 31, 2019
Liability for statutory payments 1,213.62 64.25 Revenue received in advance 342.01 238.24 Contract liability on gas sales (refer note 28.1) 1,383.80 3,105.31 Other liabilities 77.28 22.41 Total 3,016.71 3,430.21
28.1
Payment towards trade payables is made as per the terms and conditions of the contract/purchase orders. The average creditperiod is 30 days.
Contract Liability on gas sales represents amounts received from gas customers against "Take or Pay" obligations under relevantgas sales agreements. The amounts are to be utilized to supply the gas in subsequent year(s).
Other Current Liabilities
Annual Report 2019 - 20 167 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
29 Revenue from OperationsThe following is an analysis of the Company’s revenue from operations:
Particulars Year ended March 31, 2020 Year ended March 31, 2019
Revenue from contracts with customer
A. Sale of productsCrude oil 94,255.70 93,632.13Natural gas 27,203.22 21,326.03Condensate 407.05 716.58Less : Value added tax 2,480.84 1,419.25
119,385.13 114,255.49B. Other operating revenue
Pipeline transportation receipts 2,536.02 1,603.12Total 121,921.15 115,858.61
(i)
(ii)
30 Other Income
Particulars Year ended March 31, 2020 Year ended March 31, 2019
A) Interest income on:(i) Financial assets measured at amortized cost
- Term deposits 1,214.88 367.13- Employee loans 8.42 8.56- Loan to subsidiaries 2,003.36 510.28
(ii) Others 709.15 1,155.543,935.81 2,041.51
B) Other non-operating income - Gain on partial buy back of equity shares by subsidiaries - -- Fair valuation gain on investment in mutual fund for site restoration
558.58 493.79
- Dividend income from subsidiaries 4,785.71 5,474.95- Miscellaneous receipts 1,930.31 2,067.21
7,274.60 8,035.95
Total 11,210.41 10,077.46
The Company has recognised revenue for its share of long term test production of crude oil after deducting the cost of wells (Mariposaand Indico) in the exploratory block CPO5, Colombia. During the year crude oil production from the exploratory block was 0.266MMT (Previous Year 0.126 MMT). The company has sought opinion of EAC of ICAI regarding accounting treatment of revenue fromsale of hydrocarbons produced during exploration stage.
Majority of company's natural gas production is sold under long-term contracts. The company expects to satisfy all of its saleobligation through the production of its proved reserves of natural gas.
Annual Report 2019 - 20 168 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
31 Changes in Inventories of Finished Goods
Particulars Year ended March 31, 2020
Year ended March 31, 2019
Closing stock (a) (Refer note 19) 16.63 13.64Opening stock (b) (Refer note 19) 13.64 21.02Effect of exchange difference (c) (1.34) (1.48)
Decrease /(Increase) in inventories of finished goods [(b)-(a)-(c)] (1.65) 8.86
32 Production, Transportation, Selling & Distribution Expenditure
Particulars Year ended March 31, 2020
Year ended March 31, 2019
Royalty 9,034.63 8,828.94 Service tax/GST - - Staff expenditure 2,180.96 2,242.18 Insurance 39.16 1.28 Rent (Refer note 7.3) 54.99 57.27 Repairs and maintenance 170.44 232.31 Crossflow expenditure * - 3,227.97 Other production expenditure 10,758.01 10,152.77 Transportation expenditure 4,687.16 4,455.22 Business development and other miscellaneous expenses 1,725.72 389.54
Total 28,651.07 29,587.48
Due to lack of Unitization Agreement in Russia, cross flow due to straddling of reservoir was settled at a point of time and therefore theprovision for cross flow claim arose. It is reiterated that in the context of overall E&P industry such cross flow in straddling reservoirs is acommon phenomenon and therefore does not meet the incidence test.
* This phenomena of cross flow of hydrocarbon is technically referred to as Straddling of hydrocarbon reservoir. In most of the cases, it isdealt by Unitization Agreement.
Annual Report 2019 - 20 169 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
32.1 Details of nature-wise expenditure
Year ended March 31, 2020 Year ended March 31, 2019
(i) Manpower Cost(a) Salaries, wages, ex-gratia, etc. 1,726.93 1,847.22(b) Contribution to provident and other funds 77.83 76.60(c) Provision for gratuity 13.79 17.74(d) Provision for leave encashment (145.92) 82.40(e) Provision of medical/terminal benefits 11.90 8.70(f) Staff welfare expenses 496.43 209.52
Sub Total: 2,180.96 2,242.18(ii) Rent 54.99 57.27(iii) Electricity, water and power 35.08 5.19(iv) Repairs to building 0.72 0.34(v) Repairs to plant and equipment - -(vi) Other repairs 169.72 231.97(vii) Hire charges of vehicles 73.89 61.97(viii) Professional charges (Refer note 32.4) 316.18 332.26(ix) Telephone and telex 11.39 13.20(x) Printing and Stationary 2.89 2.58(xi) Business meeting expenses 12.73 16.68(xii) Traveling expenses 137.36 206.80(xiii) Insurance 39.16 1.28(xiv) Advertisement and exhibition expenditure 3.10 5.33(xv) Statutory levies - -(xvi) Contractual transportation 4,687.16 4,455.22(xvii) Miscellaneous expenditure 214.39 273.22(xviii) Crossflow expenditure - 3,227.97(xix) Other operating expenditure* 11,676.72 9,625.08(xx) Royalty 9,034.63 8,828.94
28,651.07 29,587.48
*
32.2
32.3
32.4
Particulars Year ended March 31, 2020 Year ended March 31, 2019
Audit fees 5.65 5.99Certification and other services 1.57 1.85Total 7.22 7.84
32.5
Particulars
The other operating expenditure (sl. no. (xix) above) includes the expenses in respect of Sakhalin-1, Russia where the details are not madeavailable by the project operator in above mentioned heads.
Upto the year ended March 31, 2020, input tax credit under GST amounting to ₹ 467.87 million has been claimed by the company. Theamount of claim for FY'20 is under review and necessary adjustments, if any, will be carried out in the next period.The above figure is for ITC of FY 2017-18 and 2018-19 as reported in GST Returns filed; a part of this was claimed in FY 2017-18 (₹164.15 million), FY 2018-19 (₹ 214.88 million) and remaining for the FY 2019-20 (₹ 88.84 Million) respectively.
The operations of the Company are located outside India and therefore the eligible Net profit for the year for the purpose of Corporate SocialResponsibility (CSR) under the Companies Act, 2013 shall be “Nil”. However, for the year ended March 31, 2020, the Company has made atotal expenditure of ₹ 11.33 million (for the year ended March 31, 2019 ₹ 95.39 million) towards CSR activities outside India, directly orthrough its joint ventures.
The expenditure incurred by ONGC or its subsidiaries on behalf of the Company are accounted for on the basis of debit raised by them forwhich supporting documents are held by the parent company / subsidiaries.
Professional charges in note 32.1 (viii) includes statutory auditors remuneration as under:
Total
Annual Report 2019 - 20 170 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
33 Depreciation, Depletion & Amortization
Particulars Year ended March 31, 2020 Year ended March 31, 2019
Depletion of oil and gas assets 21,366.27 18,886.37Depreciation of property, plant and equipment 1,690.07 2,138.42Depreciation on right-of-use assets - -Amortisation of intangible assets 108.20 180.17Total 23,164.54 21,204.96
34 Finance Costs
Particulars Year ended March 31, 2020 Year ended March 31, 2019
Interest expense on:- Bonds 5,530.12 6,817.32- Non-convertible redeemable debentures 242.40 315.98- Term loan from bank 5,365.49 4,674.75- Loan from holding company - 3.58Less: amounts included in the cost of qualifying assets 4,245.24 5,809.92
6,892.77 6,001.71Finance expense on unwinding of :- Lease liability 31.65 31.65- decommissioning liabilities 1,766.22 1,657.88- other financial liabilities 112.40 123.10
Amortisation of financial guarantee fees 449.53 464.72Net loss/(gain) on fair value of derivative contracts mandatorily measured at fair value through profit or loss
1,389.23 2,805.26
Exchange differences regarded as an adjustment to borrowing costs (1,105.37) (3,946.01)
Total 9,536.43 7,138.31
The weighted average capitalization rate on funds borrowed is 3.46% per annum (during the year ended March 31, 2019: 4.74% perannum).
* The net loss/(gain) on fair value of derivative contracts recognised in the statement of Profit & loss is on account of mark to marketvaluation of the derivative contracts resulting from movements in exchange rates and interest rates of the underlying currencies. Thesederivative contracts are solely taken for the long term foreign currency borrowings of the Company. Accordingly, it has been deemedappropriate to classify it under finance cost as a separate line item to enable the readers of financial statements to appreciate theoffsetting effect of the derivative contracts on the financing costs.
Annual Report 2019 - 20 171 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
35 Provisions, Write off and Impairment
Particulars
Impairment provision for:Doubtful receivables and carried interest 418.08 1,258.48Obsolete / non-moving inventory 66.64 256.31Others 73.63 -
558.35 1,514.79Write-OffsDisposal/Condemnation of property, plant and equipment 15.54 5.14
Inventory 106.35 61.75Carry loan / Others 122.79 244.68 10,190.81 10,257.70ProvisionsAmounts written back (462.68) (12,034.33)Exploratory wells cost written back - (212.99)
Total 340.35 (474.83)
36 Other Expenses
Particulars
Exchange rate fluctuation loss /(gain) - Net 1,032.62 (260.34)
1,032.62 (260.34)
Year ended March 31, 2020 Year ended March 31, 2019
Year ended March 31, 2020 Year ended March 31, 2019
Annual Report 2019 - 20 172 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
37 Exceptional (Income) / Expense
Particulars Year ended March 31, 2020 Year ended March 31, 2019
Impairment (refer note - 47) 100,686.00 15,762.16
Impairment on investment in subsidiary (refer note - 11.1) 4.46 -
Reclassification of accumulated FCTR on disposal of Foreign Operations (refer note - 52)
(19,278.93) -
Loss on sale of the Mozambique business (refer note - 52) 23,441.40 -
Total 104,852.93 15,762.16
Annual Report 2019 - 20 173 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
38 Tax Expenses
(a) Tax charge /(credit) recognised in Statement of Profit & LossParticulars Year ended March 31, 2020 Year ended March 31, 2019
Current tax in relation to:- current period 20,219.04 18,579.97- earlier periods - (667.13)
20,219.04 17,912.84
Deferred taxIn respect of current period 15,445.31 19,707.63
Total 35,664.35 37,620.47
(b) The income tax expense for the period can be reconciled to the accounting profit as follows:
Particulars Year ended March 31, 2020 Year ended March 31, 2019
Profit before tax from continuing operations (36,980.48) 50,888.22Income tax expense calculated at 34.944% (for the period ended March 31,2019: 34.944%)
(12,922.46) 17,782.38
Effect of exceptional (income)/expense not considered in determining taxableprofit
34,165.15 4,195.55
Effect of income taxed on different rates (Capital Gain) -Tax effect in relation to earlier period’s taxes (667.13)Additional tax for foreign jurisdiction 8,916.55 6,267.14Effect on Rupee tax base on account of change in exchange rate 3,673.28 9,409.11Others 1,831.83 633.42Income tax expense recognised in profit or loss 35,664.35 37,620.47
(c) Income tax recognised in other comprehensive income:
Particulars Year ended March 31, 2020 Year ended March 31, 2019
Remeasurement of defined benefit obligation - -Exchange differences in translating the financial statements of foreignoperations
(5,796.08) (7,881.51)
Total income tax recognised in other comprehensive income (5,796.08) (7,881.51)Bifurcation of the income tax recognised in other comprehensive income into:- - -
Items that will not be reclassified to profit or loss - -Items that will be reclassified to profit or loss (5,796.08) (7,881.51)
The tax rate used for the FY 2019-20 and FY 2018-19 reconciliations above are the corporate tax rate of 34.944% payable by corporateentities in India on taxable profits under the Indian tax laws. As per the assessment of the company, it has been concluded that there is noadditional tax expenses on account of an uncertain tax positions.
Annual Report 2019 - 20 174 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
39 Earnings Per Equity Share
Particulars Year ended March 31, 2020
Year ended March 31, 2019
Profit /(loss) for the period attributable to equity shareholders ( ₹ in Million ) (72,644.83) 13,267.75
Weighted average number of equity shares for the purpose of basic earningsper share (No. in million)
1,500.00 1,500.00
Weighted average number of equity shares for the purpose of diluted earningsper share (No. in million)
1,500.00 1,500.00
Basic earnings per equity share (₹) (48.43) 8.85Diluted earnings per equity share (₹) (48.43) 8.85Face Value per equity share (₹) 100.00 100.00
Annual Report 2019 - 20 175 of 373
ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
40 Employee benefit plans
40.1 Defined contribution plans:
40.1.1 Provident Fund
(i)
(ii)
(iii)
40.1.2 Post Retirement Benefit Scheme
(i)
(ii)
(iii) Purchase of annuities for the members.
40.2 Employee Pension Scheme 1995
Benefit details for employees of ONGC Videsh are as follows:-
The defined contribution pension scheme of the Company for its employees is administered through a separate trust.The obligation of the Company is to contribute to the trust to the extent of amount not exceeding 30% of basic pay anddearness allowance as reduced by the employer’s contribution towards provident fund, gratuity, post-retirementmedical Benefit (PRMB) or any other retirement benefits.
The Company pays fixed contribution to provident fund at predetermined rates to a separate trust, which invests thefunds in permitted securities. The obligation of the Company is to make such fixed contribution and to ensure aminimum rate of return to the members as specified by Government of India (GoI). As per report of the actuary, overallinterest earnings and cumulative surplus is more than the statutory interest payment requirement. Hence, no furtherprovision is considered necessary.
Provident Fund is governed through a separate trust. The board of trustees of the Trust functions in accordance withany applicable guidelines or directions that may be issued in this behalf from time to time by the Central Governmentor the Central Provident Fund Commissioner, the board of trustees have the following responsibilities:
Investments of the surplus as per the pattern notified by the Government in this regard so as to meet the requirements of the fund from time to time.
Raising of moneys as may be required for the purposes of the fund by sale, hypothecation or pledge of the investmentwholly or partially.
Fixation of rate of interest to be credited to members’ accounts.
The board of trustees of the Trust functions in accordance with any applicable guidelines or directions that may beissued in this behalf from time to time by the Central Government, the board of trustees have the followingresponsibilities:
Investments of the surplus as per the pattern notified by the Government in this regard so as to meet the requirements of the fund from time to time.
Fixation of rate of contribution and interest thereon.
The Employee Pension Scheme -1995 is administered by Employees Provident Fund Organization of India, whereinthe Company has to contribute 8.33% of salary (subject to maximum of ₹15,000 per month) out of the employer’scontribution to Provident Fund.
Annual Report 2019 - 20 176 of 373
ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
40.3 Composite Social Security Scheme (CSSS)
(i)
(ii)
(iii)
40.4
2019-20 2018-19 2019-20 2018-19 Provident Fund 66.07 64.06 1.30 1.34 Composite Social Security Scheme (CSSS) 6.01 6.52 0.09 0.11 Employee Pension Scheme-1995 (EPS) 3.14 3.49 0.02 0.03 Post Retirement Benefit Scheme 87.03 84.87 1.40 1.81
40.5 Defined benefit plans
40.5.1
40.5.2
40.5.3 Gratuity
The amounts recognized in the financial statements before allocation for the defined contribution plans are as under:
The Composite Social Security Scheme is formulated by the Company for the welfare of its regular employees and it isadministered through a separate Trust, named as Composite Social Security Scheme Trust. The obligation of theCompany is to provide matching contribution to the Trust to the extent of contribution of the regular employees of thecompany. The Trust provides an assured lump sum support amount in the event of death or permanent totaldisablement of an employee while in service. In case of Separation other than Death/Permanent total disability,employees own contribution along with interest is refunded.
The Board of trustees of the Trust functions in accordance with Trust deed, Rule, Scheme and applicable guidelines ordirections that may be issued by Management from time to time.
The Board of trustees have the following responsibilities:
Investments of the surplus as per the pattern notified by the Government in this regard so as to meet the requirements of the fund from time to time.
Fixation of rate of interest to be credited to members’ accounts.
To provide cash benefits to the nominees in the event of death of an employee or Permanent Total Disablement leading to the cessation from service and refund of own contribution along with interest in case of separation other than death.
Defined Contribution Plans Amount recognized during
Contribution for key management personnel
Brief Description: A general description of the type of Employee Benefits Plans is as follows:
The employees of the Company are deputed from the parent company ONGC, and are entitled to benefits as per theparent company's policy. All the scheme relating to employee benefits are administered by the parent company andaccordingly the year end provision of employee benefits are settled by transfer of funds to the parent company.
15 days salary for each completed year of service and the payment is restricted to ₹ 2 million on superannuation,resignation, termination, disablement or on death.
Scheme is funded through Parent Company’s (ONGC) Gratuity Trust. The liability for gratuity as above is recognizedon the basis of actuarial valuation.
Annual Report 2019 - 20 177 of 373
ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
40.5.4 Post-Retirement Medical Benefits
40.5.5 Terminal Benefits
40.5.6 Risk Analysis
Investment risk
Interest risk
Longevity risk
Salary risk
The present value of the defined benefit plan liability is calculatedusing a discount rate which is determined by reference to marketyields at the end of the reporting period on government bonds.When there is a deep market for such bonds; if the return on planasset is below this rate, it will create a plan deficit. Currently, forthese plans, investments are made in government securities, debtinstruments, Short term debt instruments, Equity instruments andAsset Backed, Trust Structured securities as per notification ofMinistry of Finance.
The Company has Post-Retirement Medical benefit (PRMB), under which the retired employees and their spouses anddependent parents are provided medical facilities in the Company hospitals/empaneled hospitals up on payment of onetime prescribed contribution by the employees. They can also avail treatment as out-patient. The liability for the sameis recognized annually on the basis of actuarial valuation. Full medical benefits on superannuation and on voluntaryretirement are available subject to the completion of minimum 20 years of service and 50 years of age.
An employee should have put in a minimum of 15 years of service rendered in continuity in ONGC at the time ofsuperannuation to be eligible for availing post-retirement medical facilities.
At the time of superannuation, employees are entitled to settle at a place of their choice and they are eligible forSettlement Allowance.
These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity riskand salary risk.
A decrease in the bond interest rate will increase the plan liability;however, this will be partially offset by an increase in the return onthe plan’s investments.
The present value of the defined benefit plan liability is calculatedby reference to the best estimate of the mortality of plan participantsboth during and after their employment. An increase in the lifeexpectancy of the plan participants will increase the plan’s liability.
The present value of the defined benefit plan liability is calculatedby reference to the future salaries of plan participants. As such, anincrease in the salary of the plan participants will increase theplan’s liability.
No other post - retirement benefits are provided to these employees.
In respect of the above plans, the most recent actuarial valuation of the plan assets and the present value of the definedbenefit obligation were carried out as at March 31, 2020 by a member firm of the Institute of Actuaries of India. Thepresent value of the defined benefit obligation, and the related current service cost and past service cost, were measuredusing the projected unit credit method.
Annual Report 2019 - 20 178 of 373
ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
40.6 Other long term employee benefits
40.6.1
40.6.2
40.6.3 Earned Leave (EL) Benefit
Accrual – 30 days per year
Encashment on retirement – maximum 300 daysScheme is funded through Life Insurance Corporation of India (LIC).
40.6.4 Good Health Reward (Half pay leave)
Accrual - 20 days per yearEncashment while in service - NilEncashment on retirement - 50% of Half Pay Leave balance.Scheme is funded through Life Insurance Corporation of India. (LIC).The liability for the same is recognized annually on the basis of actuarial valuation.
40.7 The principal assumptions used for the purposes of the actuarial valuations were as follows.
Assumptions as at March 31, 2020
S. No. Particulars 31-Mar-20 31-Mar-19 Gratuity I. Discount rate 6.80% 7.77%II. Expected return on plan assets 6.80% 7.77%III. Annual increase in salary 7.50% 7.50% Leave IV. Discount rate 6.80% 7.77%V. Expected return on plan assets 6.80% 7.77%VI. Annual increase in salary 7.50% 7.50%
Post-Retirement Medical Benefits VII. Discount rate 6.80% 7.77%VIII. Expected return on plan assets NA NAIX. Annual increase in costs 7.50% 7.50%
Terminal Benefits X. Discount rate 6.80% 7.77%XI. Expected return on plan assets NA NAXII. Annual increase in costs 7.50% 7.50%XIII. Annual increase in salary 7.50% 7.50%
Brief Description: A general description of the type of Other long term employee benefits is as follows:
The employees of the Company are deputed from the parent company ONGC and governed as per the parent companypolicy for employee benefit. All the scheme relating to employee benefits are administered by the parent company andaccordingly the year end provision of employee benefits are settled by transfer to the parent company.
Encashment while in service – 75% of Earned Leave balance subject to a maximum of 90 days per calendar year
Annual Report 2019 - 20 179 of 373
ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
Employee Turnover (%) XIV. Up to 30 Years 3.00 3.00 XV. From 31 to 44 years 2.00 2.00 XVI. Above 44 years 1.00 1.00
Mortality RateXVII. Before retirement As per Indian Assured Lives Mortality Table (2006-08)XVIII. After retirement As per Indian Assured Lives Mortality Table (2006-08)
40.8
Gratuity :Particulars Year ended
March 31, 2020
Year ended March 31,
2019Service Cost : Current service cost 0.83 26.00Past service cost and (gain)/loss from settlements - -
Net interest expense 1.79 0.26Components of defined benefit costs recognised in Employee Benefit expenses
2.62 26.26
Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net interest expense)
- -
Actuarial (gains) / losses arising from changes in demographic assumptions
0.03 -
Actuarial (gains) / losses arising from changes in financial assumptions
9.83 5.89
Actuarial (gains) / losses arising from experience adjustments
(84.59) (4.51)
Excess (Return) / Shortfall on plan assets (excluding amounts included in net interest expense)
(0.49) (7.23)
Components of Remeasurement (75.22) (5.85)Total (72.60) 20.41
Leave :Particulars Year ended
March 31, 2020
Year ended March 31,
2019Service Cost: Current service cost 36.39 101.61Past service cost and (gain)/loss from settlements - -
Net interest expense 6.92 1.37(Increase) or decrease due to adjustment in opening corpus consequent to audit
- (2.63)
The discount rate is based upon the market yield available on Government bonds at the Accounting date with a termthat matches. The salary growth takes account inflation, seniority, promotion and other relevant factors on long termbasis. Expected rate of return on plan assets is based on market expectation, at the beginning of the year, for return overthe entire life of the related obligation.
Amounts recognized in the Financial Statements before allocation in respect of these defined benefit plans and otherlong term employee benefits are as follows:
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ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
Actuarial (gains) / losses arising from changes in demographic assumptions
0.01 -
Actuarial (gains) / losses arising from changes in financial assumptions
14.40 20.94
Actuarial (gains) / losses arising from experience adjustments
(206.60) (39.21)
Excess (Return) / Shortfall on plan assets (excluding amounts included in net interest expense)
(3.68) 0.32
Components of defined benefit costs recognised in Employee Benefit expenses
(152.56) 82.40
Post-Retirement Medical Benefits :Particulars Year ended
March 31, 2020
Year ended March 31,
2019Service cost: Current service cost 8.24 5.81Past service cost and (gain)/loss from settlements - -
Net interest expense 2.72 2.25Components of defined benefit costs recognised in Employee Benefit expenses
10.96 8.06
Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net interest expense)
NA NA
Actuarial (gains) / losses arising from changes in demographic assumptions
0.02 -
Actuarial (gains) / losses arising from changes in financial assumptions
1.74 (1.36)
Actuarial (gains) / losses arising from experience adjustments
0.56 (1.05)
Adjustments for restrictions on the defined benefit asset
- -
Components of Remeasurement including benefit paid
2.32 (2.41)
Total 13.28 5.65 Terminal Benefits : Particulars Year ended
March 31, 2020
Year ended March 31,
2019Service cost: Current service cost 0.70 0.54Past service cost and (gain)/loss from settlements - -Net interest expense 0.25 0.11Components of defined benefit costs recognisedin Employee Benefit expenses
0.95 0.65
Remeasurement on the net defined benefit liability:
Actuarial (gains) / losses arising from changes in demographic assumptions
- -
Actuarial (gains) / losses arising from changes in financial assumptions
0.24 0.21
Actuarial (gains) / losses arising from experience adjustments
(0.31) 1.01
Annual Report 2019 - 20 181 of 373
ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
Adjustments for restrictions on the defined benefit asset
- -
Components of Remeasurement (0.07) 1.22Total 0.88 1.87
40.9
Gratuity :Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Opening defined benefit obligation 160.15 144.69Current service cost 0.83 26.00Interest cost 12.44 11.08Remeasurement (gains)/losses: Actuarial (gains) / losses arising from changes in demographic assumptions
0.03 -
Actuarial (gains) / losses arising from changes in financial assumptions
9.83 5.89
Actuarial (gains) / losses arising from experience adjustments
(84.59) (4.51)
Past service cost, including losses/(gains) on curtailments
- -
Benefits paid (22.23) (23.00)Closing defined benefit obligation 76.46 160.15Current obligation 14.39 16.86Non-Current obligation 62.07 143.29 Leave :Particulars Year ended
March 31, 2020
Year ended March 31,
2019Opening defined benefit obligation 400.29 372.58Current service cost 36.39 101.61Interest cost 31.11 28.54Remeasurement (gains)/losses: Actuarial gains and losses arising from changes in demographic assumptions
0.01 -
Actuarial gains and losses arising from changes in financial assumptions
14.40 20.94
Actuarial gains and losses arising from experience adjustments
(206.60) (39.21)
Past service cost, including losses/(gains) on curtailments
- -
Benefits paid (84.89) (84.17)Closing defined benefit obligation 190.71 400.29Current obligation 23.38 57.12Non-Current obligation 167.33 343.17
The Components of Remeasurement of the net defined benefit obligation recognized in other comprehensive income is(₹ 72.97) million (Previous Year: (₹ 7.03) million).
Movements in the present value of the defined benefit obligation and other long term employee benefits are as follows:
Annual Report 2019 - 20 182 of 373
ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
Post-Retirement Medical Benefits :Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Opening defined benefit obligation 35.00 29.35Current service cost 8.23 5.81Interest cost 2.72 2.25Remeasurement (gains)/losses: Actuarial gains and losses arising from changes in demographic assumptions
0.02 -
Actuarial gains and losses arising from changes in financial assumptions
1.73 (1.36)
Actuarial gains and losses arising from experience adjustments
0.56 (1.05)
Past service cost, including losses/(gains) on curtailments
- -
Benefits paid - -Closing defined benefit obligation 48.26 35.00Current obligation 0.41 0.09Non-Current obligation 47.85 34.91 Terminal Benefits :Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Opening defined benefit obligation 3.24 1.37Current service cost 0.69 0.54Interest cost 0.25 0.11Remeasurement (gains)/losses: Actuarial gains and losses arising from changes in demographic assumptions
- -
Actuarial gains and losses arising from changes in financial assumptions
0.24 0.21
Actuarial gains and losses arising from experience adjustments
(0.31) 1.01
Past service cost, including losses/(gains) on curtailments
- -
Benefits paid - -Closing defined benefit obligation 4.11 3.24Current obligation 0.02 0.02Non-Current obligation 4.09 3.22
40.10
Gratuity : Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Present value of funded defined benefit obligation 76.46 160.15
The amount included in the Balance sheet arising from the entity’s obligation in respect of its defined benefit plan andother long term employee benefits is as follows :
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ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
Fair value of plan assets 125.99 148.25Funded status 49.53 (11.90) Restrictions on asset recognised NA NANet liability/(asset) arising from defined benefit obligation
(49.53) 11.90
Leave : Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Present value of funded defined benefit obligation 190.71 400.29
Fair value of plan assets 336.63 317.89Funded status 145.92 (82.40) Restrictions on asset recognised NA NANet liability/(asset) arising from defined benefit obligation
(145.92) 82.40
Post-Retirement Medical Benefits: Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Present value of unfunded defined benefit obligation
48.26 35.00
Fair value of plan assets NA NA Net liability arising from defined benefit obligation
48.26 35.00
Terminal Benefits : Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Present value of unfunded defined benefit obligation
4.11 3.24
Fair value of plan assets NA NA Net liability arising from defined benefit obligation
4.11 3.24
The amounts included in the fair value of plan assets of gratuity fund in respect of reporting enterprise’s own financialinstruments and any property occupied by, or other assets used by the reporting enterprise are Nil (as at March 31,2019 Nil)
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ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
40.11 Movements in the fair value of the plan assets are as follows :Gratuity : Particulars Year ended
March 31, 2020
Year ended March 31,
2019
Opening fair value of plan assets 137.08 132.72Adjustment in opening corpus consequent to audit - 8.52
Expected return on plan assets 10.65 10.82Remeasurement gain (loss): Excess Return / (Shortfall) on plan assets (excluding amounts included in net interest expense)
0.49 7.23
Contributions from the employer - 11.96Benefits paid (22.23) (23.00) Closing fair value of plan assets 125.99 148.25
Leave :Particulars Year ended
March 31, 2020
Year ended March 31,
2019Opening fair value of plan assets 311.25 352.06Adjustment in opening corpus consequent to audit - 2.63
Expected return on plan assets 24.18 27.18Remeasurement gain (loss): Excess Return / (Shortfall) on plan assets (excluding amounts included in net interest expense)
3.68 (0.32)
Contributions from the employer 82.40 20.51Benefits paid (84.88) (84.17) Closing fair value of plan assets 336.63 317.89
40.12
40.12.1 Sensitivity Analysis of the defined benefit obligation as on March 31, 2020
Significant actuarial assumptions Gratuity Leave Post-Retirement
Medical Benefits Terminal Benefits
Discount Rate - Impact due to increase of 50 basis points (2.60) (7.68) (1.44) (0.17)- Impact due to decrease of 50 basis points 2.81 8.40 1.53 0.18Salary increase- Impact due to increase of 50 basis points 1.73 8.27 - -
Expected contribution in respect of gratuity for next year 2020-21 will be ₹ 21.74 million (For the previous year ₹27.72 million).
Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salaryincrease. The sensitivity analyses below have been determined based on reasonably possible changes of the respectiveassumptions occurring at the end of the reporting period, while holding all other assumptions constant.
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ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
- Impact due to decrease of 50 basis points (1.73) (7.68) - -Cost increase- Impact due to increase of 50 basis points - - 1.53 0.18- Impact due to decrease of 50 basis points - - (1.45) (0.17)
40.12.2 Sensitivity Analysis of the defined benefit obligation as on March 31, 2019 Significant actuarial assumptions Gratuity Leave Post-Retirement
Medical Benefits Terminal Benefits
Discount Rate - Impact due to increase of 50 basis points (5.23) (11.92) (1.04) (0.09)- Impact due to decrease of 50 basis points 5.61 12.72 1.11 0.10Salary increase - Impact due to increase of 50 basis points 3.52 12.69 - -- Impact due to decrease of 50 basis points (3.53) (12.00) - -Cost increase - Impact due to increase of 50 basis points - - 1.11 0.10- Impact due to decrease of 50 basis points - - (1.05) (0.09)
40.13 Defined Benefit: As at March
31, 2020As at March
31, 2019Gratuity: Less than One Year 14.39 16.86 One to Three Years 21.69 40.56 Three to Five Years 17.86 27.21 More than Five Years 22.53 75.51Leave: Less than One Year 23.38 57.12 One to Three Years 44.13 84.24 Three to Five Years 32.06 65.78 More than Five Years 91.13 193.15
The sensitivity analysis presented above may not be representative of the actual change in the defined benefitobligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of theassumptions may be correlated. Sensitivity due to mortality & withdrawals are not material & hence impact of changenot calculated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has beencalculated using the projected unit credit method at the end of the reporting period, which is the same as that applied incalculating the defined benefit obligation liability recognised in the balance sheet.
Maturity Profile of Defined Benefit Obligation and other long term employee benefits:
Annual Report 2019 - 20 186 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
41 Segment Reporting
41.1 Products and services from which reportable segments derive their revenues
a. Asia Pacificb. Russia and Commonwealth of Independent States (CIS)c. Latin Americad. Middle East and Africa
41.2 Segment revenue and results
41.2.1 The following is an analysis of the Company’s revenue and results from continuing operations by reportable segment.
ParticularsYear ended
March 31, 2020Year ended
March 31, 2019Year ended
March 31, 2020Year ended
March 31, 2019
Asia Pacific 26,464.79 20,075.50 13,542.04 9,608.54Russia and CIS 90,247.11 93,314.84 48,060.89 56,396.91Latin America 5,209.25 2,468.27 4,399.97 2,653.07Middle East and Africa - - (4,667.54) (5,877.53)
Total 121,921.15 115,858.61 61,335.36 62,780.99
Unallocated corporate expense (99,989.82) (14,831.92)Finance costs (9,536.43) (7,138.31)Interest/Dividend income 11,210.41 10,077.46
Profit before tax (36,980.48) 50,888.22
41.2.2
41.2.3
41.3 Segment assets and liabilities
Particulars As at March 31, 2020
As at March 31, 2019
Segment assetsAsia Pacific 29,687.69 44,101.72Russia and CIS 317,381.04 294,446.16Latin America 1,226.44 4,857.80Middle East and Africa 6,090.89 210,439.40Total segment assets 354,386.06 553,845.08
Unallocated 491,265.85 302,304.67Total assets 845,651.91 856,149.75
The Company has identified and reported operating segments taking into account the different risks and returns, the internal reporting systems and the basis on which operating results are regularly reviewed to make decisions about resources to be allocated to the segment and assess its performance. The Company has identified following geographical segments as reportable segments:
Segment revenue reported above represents revenue generated through external customers. There were no inter-segment sale in the current year (year ended March 31, 2019: Nil)
The accounting policies of the reportable segments are the same as the Company’s accounting policy described in note 3.32. Segment profit represents the profit before tax earned by each segment excluding finance cost and other income like interest/dividend income. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.
Segment revenue Segment profit/(loss)
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
Segment liabilitiesAsia Pacific 6,675.53 23,345.10Russia and CIS 56,320.33 49,162.96Latin America 1,295.20 3,183.45Middle East and Africa 5,109.71 6,388.25Total segment liabilities 69,400.77 82,079.76
Unallocated 441,382.37 437,997.24Total liabilities 510,783.14 520,077.00
For the purpose of monitoring segment performance and allocating resources between segments:
41.3.1
41.3.2 All liabilities are allocated to reportable segment other than borrowing, current and deferred tax liabilities.
41.3.3
41.4 Other segment information
Particulars
Year ended March 31, 2020
Year ended March 31, 2019
Year ended March 31, 2020
Year ended March 31, 2019
Asia Pacific 6,565.93 4,824.79 15.69 58.74Russia and CIS 18,238.87 16,739.59 302.69 (678.48)Latin America 381.56 1,556.38 119.24 (622.67)Middle East and Africa 33.32 64.37 (270.66) 79.59Unallocated 405.12 445.44 173.39 687.99
25,624.80 23,630.57 340.35 (474.83)
41.5 Impairment and other loss
Particulars Year ended March 31, 2020
Year ended March 31, 2019
Russia and CIS 5,112.61 -Middle East and Africa 8,422.52 5,739.22Unallocated 91,317.80 10,022.94
104,852.93 15,762.16
41.6 Net additions to non- current assets
Particulars Year ended March 31, 2020
Year ended March 31, 2019
Asia Pacific 219.75 7,371.14Russia and CIS 17,686.58 13,410.41Latin America 760.59 (2,076.48)Middle East and Africa * (203,867.89) 10,928.23Unallocated 688.12 (1,703.86)
(184,512.85) 27,929.44
All assets are allocated to reportable operating segments other than investments in subsidiaries, investments in associates, investments in jointventures, other investments, loans and current and deferred tax assets.
Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segments and amount allocated onreasonable basis. Unallocated includes common expenditure incurred for all the segments and expenses incurred at the corporate level. Finance costincludes unwinding of decommissioning liabilities not allocated to segment.
Depreciation , depletion and amortization including Exploration
costs written off
Other non-cash items- Provisions, Write-off and Impairment
Annual Report 2019 - 20 188 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
* Includes sale of Mozambique business
41.7 Information about major customers
41.8 Information about geographical areas:
Location As at March 31, 2020
As at March 31, 2019
India 7,187.36 6,543.02Other Countries 298,720.30 483,877.49Total 305,907.66 490,420.51
41.9 Information about products and services:
42 Related Party Disclosures
42.1 Name of related parties and description of relationship:
A Holding company1 Oil and Natural Gas Corporation Limited
B Subsidiaries1 ONGC Nile Ganga B.V., The Netherlands2 ONGC Nile Ganga (San Cristobal) B.V., The Netherlands3 ONGC Campos Ltd. Brazil4 ONGC Caspian E & P B.V., The Netherlands5 ONGC Narmada Limited, Nigeria6 ONGC Amazon Alaknanda Limited, Bermuda7 Imperial Energy Limited, Cyprus8 Imperial Energy Tomsk Limited, Cyprus9 Imperial Energy (Cyprus) Limited, Cyprus
10 Imperial Energy Nord Limited, Cyprus11 Imperial Frac Services (Cyprus) Limited, Cyprus12 ONGC Videsh Singapore Pte. Limited, Singapore13 Redcliffe Holdings Limited, Cyprus14 San Agio Investments Limited, Cyprus15 Biancus Holdings Limited, Cyprus16 LLC Sibinterneft, Russian Federation17 LLC Allianceneftegaz, Russian Federation18 LLC Nord Imperial, Russian Federation19 LLC Rus Imperial Group, Russian Federation20 LLC Imperial Frac Services, Russian Federation21 Carabobo One AB, Sweden22 Petro Carabobo Ganga B.V., The Netherlands23 ONGC BTC Limited, Cayman Islands24 Beas Rovuma Energy Mozambique Limited, Mauritius
Company’s significant revenues are derived from sales to Oil Marketing Companies and International Oil Companies (IOCs) which are reputed andNational Oil Companies (NOCs). 2 customers viz. Shell International Eastern Trading and Glencore Singapore Pte Ltd. contributed to approximately12% each of the company's revenue for the year 2019-20. Apart from this, no single customer contributed 10% or more to the company’s revenue forboth the year 2019-20 and 2018-19.
The Company is domiciled in India, however, the Company is engaged in prospecting for and acquisition of oil and gas acreages outside India for exploration, development and production of crude oil and natural gas. The Company generates its entire revenue from customers located outside India.
The Company derives revenue from sale of crude oil, natural gas and condensate. The information about revenues from external customers about each product is disclosed in note 29 of the financial statements.
The total of non-current assets other than financial instruments and tax assets broken down by location of assets are shown below:
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
25 ONGC Videsh Atlantic Inc., USA26 ONGC Videsh Rovuma Limited, Mauritius (under winding up)27 ONGC Videsh Vankorneft Pte. Limited, Singapore28 Indus East Mediterranean Exploration Ltd., Israel29 ONGC Videsh Rovuma Limited, India (Incorporated on April 15, 2019)
C. Joint Ventures1 ONGC Mittal Energy Limited, Cyprus2 Sudd Petroleum Operating Company, Mauritius3 Mansarovar Energy Colombia Limited, Colombia (through ONGC Amazon Alaknanda Ltd.)4 Himalaya Energy Syria BV, The Netherlands (through ONGC Nile Ganga B.V.)
D. Associate1 Petro Carabobo S.A., Venezuela (through Carabobo One AB)2 Carabobo Ingenieria Y Construcciones, S.A, Venezuela (through Carabobo One AB)3 Petrolera Indovenezolana SA, Venezuela (through ONGC Nile Ganga B.V.)4 South East Asia Gas Pipeline Ltd., Hongkong (through ONGC Nile Ganga B.V.)5 Tamba BV, The Netherlands (through ONGC Nile Ganga B.V.)6 JSC Vankorneft, Russia (through ONGC Videsh Singapore Pte Ltd.)7 Falcon Oil & Gas BV, Netherlands (through ONGC Nile Ganga B.V.)8
9
E. Key management personnelE.1 Chairman
1 Mr. Shashi Shanker
E.2 Whole time directors1 Mr. Shashi Shanker, Managing Director upto October 31, 2019 on additional charge2 Mr. Vivekanand, Director (Finance)3 Mr. G S Chaturvedi, Director (Exploration) 4 Mr. Alok Kumar Gupta, Director (Operations) with effect from September 4, 2019
E.3 Independent directors1 Mr. Ajai Malhotra upto November 19, 20192 Mr. Bharatendu Nath Srivastava3 Smt. Kiran Oberoi Vasudev4 Mr. Rakesh Kacker
E.4 Government nominee directors123 Mr. Kumar V. Pratap, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Government of India upto April 21, 2020
E.5 Company Secretary1 Mr. Rajni Kant
F. Trusts (including post retirement employee benefit trust) wherein ONGC having control1 ONGC Contributory Provident Fund Trust2 ONGC CSSS Trust3 ONGC PRBS Trust4 ONGC Gratuity Fund Trust5 ONGC Sahyog Trust
Mozambique LNG I Company Pte Ltd., Singapore (10% directly and 6% through subsidiary Beas Rovuma Energy Mozambique Ltd.) upto June 2019
Moz LNG1 Holding Company Limited, Abu Dhabi (10% directly and 6% through subsidiary Beas Rovuma Energy Mozambique Ltd.) w.e.f. April 21,2019
Mr. Baldeo Purushartha, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, from April 22, 2020Mr. B N Reddy, Joint Secretary (IC), Ministry of Petroleum & Natural Gas, Government of India
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ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
42.2 Details of Transactions:
42.2.1 Transactions with Holding Company
Name of related party Year ended March 31, 2020
Year ended March 31, 2019
A. Services received from:a) Oil and Natural Gas Corporation Limited 188.39 498.52b) Oil and Natural Gas Corporation Limited Interest expenditure - 3.58c) Oil and Natural Gas Corporation Limited 74.07 85.78d) Oil and Natural Gas Corporation Limited Platts Subscription Charges 40.66 -e) Oil and Natural Gas Corporation Limited Common Costs of DUB 80.24 -f) Oil and Natural Gas Corporation Limited Listing Fees SGX 0.90 -g) Oil and Natural Gas Corporation Limited 2.99 -
h) Oil and Natural Gas Corporation Limited Processing of 2D Seismic Data 7.43 -
B. Loan takena) Oil and Natural Gas Corporation Limited (Refer note
23)Loan taken - 1,860.00
b) Oil and Natural Gas Corporation Limited (Refer note 23)
Loan repaid - 1,860.00
C. Dividend: Oil and Natural Gas Corporation Limited Dividend Paid 5,100.00 3,000.00
D. Non Cash transaction (Ind AS fair valuation)a) Oil and Natural Gas Corporation Limited Interest expenditure - -b) Oil and Natural Gas Corporation Limited 449.53 464.72
42.2.2 Outstanding balances with holding company
Name of related party Nature of transaction
As at March 31, 2020
As at March 31, 2019
A Amount receivable/(payable):Oil and Natural Gas Corporation Limited Reimbursement of
expenses152.24 (215.23)
Oil and Natural Gas Corporation Limited Statutory charges on Guarantee Fee, Platts Fees, DUB Common Costs
(104.84) (18.77)
Consultancy services (OVL Colombia Branch)
Nature of transaction
Reimbursement of expenses
Guarantee fee in respect of financialguarantee
Statutory charges on Guarantee Fee
Annual Report 2019 - 20 191 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
42.2.3 Transactions with Subsidiaries
Name of related party Year ended March 31, 2020
Year ended March 31, 2019
A. Services received from:a) ONGC Videsh Atlantic Inc. (OVAI) 145.61 219.73b) ONGC Nile Ganga B.V. (ONGBV) 897.67 209.61c) ONGC Nile Ganga (San Cristobal) B.V. Reimbursement of expense - 24.81
B. Services provided to:a) ONGC Nile Ganga B.V. (ONGBV) 466.29 781.37b) ONGC Nile Ganga (San Cristobal) B.V. 128.49 208.31c) Petro Carabobo Ganga BV 51.30 70.44d) ONGC Amazon Alaknanda Limited (OAAL) 47.22 60.19e) ONGC Videsh Singapore Limited (OVSL) 8.71 8.89f) ONGC Videsh Vankorneft Pte. Limited, Singapore (OVVL) 32.71 25.45g) Indus East Mediterranean Exploration Ltd. (IEMEL) - 6.33h) Beas Rovuma Energy Mozambique Limited (BREML) 1.09 1.02i) ONGC Nile Ganga B.V. (ONGBV) 37.11 1.93j) ONGC Nile Ganga (San Cristobal) B.V. 4.86 -k) ONGC Videsh Rovuma Limited (OVRL), India 0.84 -
C. Dividend and interest income from: a) Imperial Energy Limited Interest Income 467.96 391.37b) ONGC Videsh Singapore Limited (OVSL) Interest Income 114.88 117.56c) ONGC Nile Ganga B.V. (ONGBV) Interest Income - 1.35d) ONGC Videsh Rovuma Limited (OVRL), India 1,420.52 -
e) ONGC Amazon Alaknanda Limited (OAAL) Dividend Income 4,785.71 5,286.49f) ONGC BTC Limited Dividend Income - 188.46
D. Loans:a) Imperial Energy Limited Loan Given 1,760.60 1,268.24b) ONGC Videsh Singapore Pte. Ltd. (OVSL) Loan Given 93.31 -c) ONGC Nile Ganga B.V. (ONGBV) Loan Given - 1,248.01d) Indus East Mediterranean Exploration Ltd Loan Given - 6.05e) ONGC Videsh Rovuma Limited (OVRL), India Loan Given 168,671.80 -f) ONGC Videsh Singapore Limited (OVSL) Loan Repaid - 2,014.28g) ONGC Nile Ganga B.V. (ONGBV) Loan Repaid - 1,295.35h) Indus East Mediterranean Exploration Ltd. (IEMEL) Loan Repaid - 3.14
E. Additional Investmenta) ONGC Videsh Rovuma Limited (OVRL), Mauritius* Investment in equity capital 1.08 0.55b) ONGC Videsh Rovuma Limited (OVRL), Mauritius* Provision of equity share capital (4.46) -c) Beas Rovuma Energy Mozambique Limited (BREML) Deemed Capital Contribution 6,735.35 1,547.85d) Carabobo One A.B. Deemed Capital Contribution 55.81 4.00e) ONGC Videsh Rovuma Limited (OVRL), India Investment in equity share capital 10.00 -
Less: Provision 10.00 -Net amount -
f) ONGC Videsh Rovuma Limited (OVRL), India Deemed Capital Contribution 49,480.86 -Less: Provision 1,367.47 -Net amount 48,113.39
g) Indus East Mediterranean Exploration Ltd. (IEMEL) Deemed Capital Contribution 6.52 -
Interest Income (Non-cash fair value transaction)
Reimbursement of expense incurred
Deputation of manpower and other
Reimbursement of expense incurred
* This has reference to the winding-up procedure initiated by our wholly-owned subsidiary M/s. ONGC Videsh Rovuma Limited (OVRL),Mauritius. Consequent to approval of the shareholders for the winding-up of the wholly owned subsidiary, the OVRL has filled application with theRegistrar of Companies, Mauritius, for strike-off of name of the company.On strike off, M/s. OVRL, Mauritius will cease to be a subsidiary of the Company. The entire equity investment of USD 65,000 less the amountrecoverable from OVRL USD 2,151 which remains after paying off all the creditors of the company, was found to be not realizable and hence suchbalance has been impaired in the books of ONGC Videsh. Such amount will be written off once the name of the company is struck off by the registerof companies, Mauritius.
Deputation of manpower and other Deputation of manpower and other
Nature of transaction
Deputation of manpower and other
Deputation of manpower and other
Availing technical servicesReimbursement of expense
Deputation of manpower and other
Reimbursement of expense incurred
Deputation of manpower and other
Reimbursement of expense incurred
Annual Report 2019 - 20 192 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
F. Sale of businessa) ONGC Videsh Rovuma Limited (OVRL), India 212,953.56 -
42.2.4 Outstanding balances with subsidiaries
Nature of transaction As at March 31, 2020
As at March 31, 2019
A. Loans and Interest:a) ONGC Narmada Limited Loan Given 2,370.31 2,173.41
Less: Provision 2,370.31 2,173.41Net amount - -
b) Imperial Energy Limited Loan Given 13,121.29 10,301.08c) Imperial Energy Limited Accrued Interest 2,606.71 1,938.21d) ONGC Videsh Singapore Pte. Ltd. (OVSL) Loan Given 2,670.80 2,358.64e) Indus East Mediterranean Exploration Ltd (IEMEL) Loan Given - 4.72f) ONGC Videsh Rovuma Limited (OVRL), India Loan Given 178,493.97 -
B. Amount receivable/(payable):a) Petro Carabobo Ganga BV 336.06 326.53
Less: Provision 336.06 261.11Net amount - 65.42
b) ONGC Amazon Alaknanda Limited (OAAL) 46.68 68.41c) ONGC Nile Ganga B.V. (ONGBV) (443.34) 137.95d) ONGC Nile Ganga (San Cristobal) B.V. 1,018.57 964.12
Less: Provision 1,018.57 815.09Net amount - 149.03
e) ONGC Videsh Vankorneft Pte. Limited, Singapore (OVVL) 2.81 6.68
f) ONGC Videsh Singapore Pte. Ltd. (OVSL) 1.00 5.21
g) Indus East Mediterranean Exploration Ltd (IEMEL) - 6.33
h) Beas Rovuma Energy Mozambique Limited (BREML) Reimbursement of expense 2.21 0.96i) ONGC Videsh Atlantic Inc. (OVAI) (26.09) (12.97)
j) ONGC Videsh Rovuma Limited (OVRL), India Reimbursement of expense incurred 0.92 -
42.2.5 Transactions with joint ventures/associate
Name of related party Nature of transaction As at March 31, 2020
As at March 31, 2019
A. Services received from:a) Falcon Oil & Gas BV, Netherlands (through ONGC
Nile Ganga B.V.)Reimbursement of expense 3.46 -
B. Services provided to:a) Falcon Oil & Gas BV, Netherlands (through ONGC
Nile Ganga B.V.) 155.66 -
b) Sudd Petroleum Operating Company, Mauritius 86.96 28.26 c) Falcon Oil & Gas BV, Netherlands (through ONGC
Nile Ganga B.V.)Reimbursement of expense incurred 0.89 7.13
C. Additional Investmenta) Moz. LNG1 Holding Company Ltd Investment in equity capital 23.61 -
D. Any other transactiona) Mozambique LNG I Company Pte Ltd. 16.66 -
Deputation of manpower and other charges
Deputation of manpower and other charges
Deputation of manpower and other
Deputation of manpower and other Reimbursement of expense
Sale of business (Area 1 Mozambique Block) - Refer Note - 52
Swap of Investment
Deputation of manpower and other
Deputation of manpower and other chargesDeputation of manpower and other chargesDeputation of manpower and other charges
Name of related party
Deputation of manpower and other
Annual Report 2019 - 20 193 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
42.2.6 Outstanding balances with joint ventures/associate
Name of related party Nature of transaction As at March 31, 2020
As at March 31, 2019
A. Receivables:a) Falcon Oil & Gas BV, Netherlands (through ONGC
Nile Ganga B.V.)14.78 -
b) Sudd Petroleum Operating Company, Mauritius 83.53 28.26c) Falcon Oil & Gas BV, Netherlands (through ONGC
Nile Ganga B.V.)Reimbursement of expense 6.04 7.06
42.2.7 Compensation of key management personnel
Particulars Year ended March 31, 2020
Year ended March 31, 2019
Short term employee benefits 22.31 53.10Post-employment benefits 4.49 5.31Other long term benefits 2.85 0.31Termination benefits - -Share-based payment - -Sitting fees to independent directors 3.01 4.17Total 32.66 62.89
42.3
42.4
Disclosure in respect of Government Controlled Entities (disclosures with respect to holding company has been given at note 42.2.1 and 42.2.2)
The Company has entered into various transactions such as telephone expenses, air travel, fuel purchase, insurance and deposits etc. with above mentioned and other various government related entities. These transactions are insignificant individually and collectively and hence not disclosed.
There are no transactions with Key Managerial Personnel or their relatives during the year except as disclosed above.
Disclosure of transaction with Key Managerial personnel and their relatives
Loan repaid by key managerial personnel during the year ended March 31, 2020 ₹ 0.36 million (year ended March 31, 2019: ₹0.30 million). Loans toemployees includes an amount of ₹ 1.03 million (As at March 31, 2019 ₹ 0.72 million) outstanding from key managerial personnel.
Deputation of manpower and other
Deputation of manpower and other charges
Annual Report 2019 - 20 194 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
43 Disclosure of interests in joint arrangements:
43.1 Joint operations
1 Azeri, Chirag, Guneshli Fields(ACG), Azerbaijan, Offshore
2.31 BP - 30.37%SOCAR - 25.00%Chevron - 9.57%INPEX - 9.31%Equinor^ - 7.27%Exxon-Mobil - 6.79%TPAO - 5.73%Itochu - 3.65%
BP The project is underdevelopment and production
2 Block 06.1, Vietnam, Offshore 45 Rosneft Vietnam B.V. -35%Petro Vietnam - 20%
Rosneft VietnamB.V.
The project is underdevelopment and production
3 Block 5A, South Sudan,Onshore
24.125 Petronas - 67.875%Nilepet - 8%
Joint Operatorshipby all partners.
The project is under exploration,development and productionhowever the field continues tobe under shut down sinceDecember 2013. Presentlyproduction resumption activitiesare underway while awaiting forexecution addendum to EPSAfor Block 5A.
4 Block A-1, Myanmar, Offshore 17 POSCO DaewooCooperation - 51%MOGE- 15%GAIL – 8.5%KOGAS – 8.5%
POSCO DaewooCooperation
The project is under Production.
5 Block A-3, Myanmar, Offshore 17 POSCO DaewooCooperation - 51%MOGE- 15%GAIL – 8.5%KOGAS – 8.5%
POSCO DaewooCooperation
The project is under production
6 Block B2, Myanmar, Onshore 97 Machinery and SolutionsCompany Ltd. - 3%
ONGC Videsh The project is under exploration
7 Block CPO-5, Colombia,Onshore
70 PetroDorado – 30% ONGC Videsh The project is under exploration
8 Block EP3, Myanmar, Onshore 97 Machinery and SolutionsCompany Ltd. - 3%
ONGC Videsh The project is under exploration
9 Block Farsi, Iran, Offshore 40 IOC – 40%OIL - 20%
ONGC Videsh The project’s exploration phaseunder Exploration ServiceContract (ESC) ended on 24June 2009. Agreement on MDPand Development ServiceContract is yet to be agreed.
The details of Company’s joint operations are as under:
S.no Name of the Project and Country of Operation
Company’s participating interest (%)
Other Consortium Members
Operator Project status
Annual Report 2019 - 20 195 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
10 Block RC-9, Colombia,Offshore
50 Ecopetrol - 50% Ecopetrol The project is under exploration
11 Block RC-10, Colombia,Offshore
50 Ecopetrol - 50% ONGC Videsh The project is under exploration
12 Block SS 04, Bangladesh,Offshore
45 OIL-45%BAPEX-10%
ONGC Videsh The project is under exploration
13 Block SS 09, Bangladesh,Offshore
45 OIL-45%BAPEX-10%
ONGC Videsh The project is under exploration
14 Block SSJN-7, Colombia,Onshore
50 Pacific - 50% Pacific The project is under exploration
15 Block XXIV, Syria, Onshore 60 IPRMEL - 25%Triocean-15%
IPR MEL The project is temporarily shutdown due to deteriorated lawand order situation in thecountry since April 2012.
16 Sakhalin -1, Russia, Offshore 20 ENL - 30%SODECO - 30%SMNG - 11.5%R N Astra - 8.5%
ENL The project is underdevelopment and production.
17 Satpayev Contract Area 3575,Kazakhstan, Offshore
25 KMG – 75% SOLLP The project is under winding up
18 SHWE Offshore Pipeline,Myanmar, Offshore
17 Posco DaewooCorporation – 51%MOGE- 15%GAIL – 8.5%
Posco DaewooCorporation
Pipeline is completed and isunder use for transportation ofgas from Blocks A1/A3,Myanmar
19 Port Sudan Product Pipeline,Sudan
90 OIL – 10% ONGC Videsh Pipeline is completed andhanded over to Govt. of Sudan
^# ONGC Videsh Limited holds 60% shares in BREML.
Abbreviations used:
Note: There is no change in previous period details unless otherwise stated.
BAPEX - Bangladesh Petroleum Exploration & Production Company Limited; BP - British Petroleum; BPRL - Bharat PetroResourcesLimited; BREML - Beas Rovuma Energy Mozambique Limited; Chevron - Chevron Corporation; CNPC- China National PetroleumCorporation; Daewoo - Daewoo International Corporation; Ecopetrol - Ecopetrol S.A, Colombia; ENH - Empresa Nacional DeHidrocarbonates, E.P.; ENL - Exxon Neftegas Limited; Exxon Mobil - Exxon Mobil Corporation; GAIL - GAIL (India) Limited; INPEX -INPEX Corporation; IOC - Indian Oil Corporation Limited; IPRMEL - IPR Mediterranean Exploration Limited; Itochu - ItochuCorporation; KMG - Kazmunaygas; KOGAS - Korea Gas Corporation; MITSUI - MITSUI & Co. Limited; MOGE - Myanmar Oil and GasEnterprise; Nilepet - Nile Petroleum Corporation; OIL - Oil India Limited; ONGC Videsh - ONGC Videsh Limited; Pacific - PacificStratus Energy, Colombia; Petrobras - Petrobras Colombia Ltd; PetroDorado - PetroDorado South America S.A.; Petronas - PetronasCarigali Overseas SdnBhd; Petrovietnam - Vietnam Oil and Gas Group; PTTEP - PTT Public Company Limited; QPI- Qatar PetroleumInternational; SMNG - Sakhalinmorneftegas Shelf; SOCAR - State Oil Company of Azerbaijan Republic; SODECO - Sakhalin OilDevelopment Company Limited; SOLLP - Satpayev Operating LLP; STATOIL - Den Norske Stats Oljeselskap; TPAO - Turkiye PetrolleriA.O; Triocean - TriOcean Mediterranean
Earlier Statoil - Den Norske Stats Oljeselskap
Annual Report 2019 - 20 196 of 373
ON
GC
VID
ESH
LIM
ITE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
43.2
The
Fin
anci
al p
ositi
on o
f the
Joi
nt O
pera
tion
bloc
ks /
proj
ects
are
as u
nder
:A
s at M
arch
31,
202
0
Part
icul
ars
Cur
rent
A
sset
sN
on-C
urre
nt
Ass
ets
Cur
rent
L
iabi
litie
sN
on-C
urre
nt
Lia
bilit
ies
Tot
al R
even
uePr
ofit
or
Los
s fro
m
cont
inui
ng
oper
atio
ns
Prof
it or
Los
s fr
om
disc
ontin
ued
oper
atio
ns
Oth
er
Com
preh
ensi
ve
Inco
me
Tot
al
Com
preh
ensi
ve
Inco
me
A. A
udite
d as
at 3
1 M
arch
, 202
0B
lock
06.
1, V
ietn
am1,
316.
847,
937.
531,
316.
001,
843.
7610
,243
.24
4,70
3.84
--
4,70
3.84
Blo
ck S
akha
lin 1
, Rus
sia
16,4
34.8
822
9,49
0.74
8,18
5.92
34,3
49.1
182
,032
.87
32,2
84.5
6-
-32
,284
.56
Tot
al (A
)17
,751
.72
237,
428.
279,
501.
9236
,192
.87
92,2
76.1
136
,988
.40
-
-
36,9
88.4
0B
. Aud
ited
as o
f 31
Dec
embe
r, 2
019
Blo
ck C
PO 5
, Col
ombi
a37
3.20
847.
691,
239.
73-
5,20
9.26
4,54
8.39
--
4,54
8.39
Tot
al (B
)37
3.20
847.
691,
239.
73-
5,20
9.26
4,54
8.39
-
-
4,54
8.39
C. U
naud
ited
Blo
ck A
CG
, Aze
rbai
jan
1,08
5.14
39,9
15.9
81,
031.
5611
,777
.09
8,21
4.24
(2,1
40.6
4)-
-(2
,140
.64)
Port
Suda
n Pr
oduc
t Pip
elin
e, S
udan
6.35
-1,
917.
51-
-18
5.81
--
185.
81B
lock
Far
si, I
ran
67.6
2(0
.04)
3.35
--
(13.
83)
--
(13.
83)
Blo
ck A
-1, M
yanm
ar2,
715.
2311
,317
.68
1,81
7.24
-8,
318.
934,
414.
22-
-4,
414.
22B
lock
A-3
, Mya
nmar
419.
422,
441.
7291
7.64
-5,
366.
591,
893.
38-
-1,
893.
38SH
WE
Offs
hore
Pip
elin
e, M
yanm
ar26
5.71
1,43
4.32
248.
08-
2,53
6.02
1,79
0.93
--
1,79
0.93
Blo
ck S
S-04
, Ban
glad
esh
48.2
360
.22
50.2
9-
-(4
0.45
)-
-(4
0.45
)B
lock
SS-
09, B
angl
ades
h79
.49
9.31
41.0
3-
-(3
6.78
)-
-(3
6.78
)B
lock
SSJ
N-7
, Col
ombi
a-
-45
.81
--
(112
.31)
--
(112
.31)
Blo
ck R
C-9
, Col
ombi
a-
-7.
67-
-(1
.44)
--
(1.4
4)B
lock
RC
-10,
Col
ombi
a39
.19
0.03
--
-(0
.70)
--
(0.7
0)M
yanm
ar B
lock
EP
3, O
/S (N
on-O
p)25
.36
0.41
72.1
0-
-(4
7.57
)-
-(4
7.57
)M
yanm
ar B
lock
B2
Ons
hore
224.
990.
0632
0.82
--
(51.
45)
--
(51.
45)
Blo
ck 5
A, S
udan
728.
685,
234.
3767
3.28
--
(4,9
20.8
3)-
-(4
,920
.83)
Blo
ck S
atpa
yev,
Kaz
akhs
tan
3.71
8.07
0.14
--
(220
.96)
--
(220
.96)
Blo
ck 2
4, S
yria
64.3
10.
4163
1.91
--
(4.5
8)-
-(4
.58)
Tot
al (
C)
5,77
3.43
60
,422
.54
7,77
8.43
11,7
77.0
924
,435
.78
692.
80
-
-
69
2.80
Gra
nd T
otal
23,8
98.3
5
29
8,69
8.50
18,5
20.0
847
,969
.96
121,
921.
1542
,229
.59
-
-
42,2
29.5
9
Not
e:B
lock
Are
a 1,
Moz
ambi
que
deta
ils n
ot in
clud
ed a
bove
as i
t has
bee
n tra
nsfe
rred
dur
ing
the
year
to O
NG
C V
ides
h R
ovum
a Li
mite
d, In
dia
(a w
holly
ow
ned
subs
idia
ry o
f ON
GC
Vid
esh)
(Ref
er n
ote
52)
Annu
al R
epor
t 201
9 - 2
019
7 of
373
ON
GC
VID
ESH
LIM
ITE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
As a
t Mar
ch 3
1, 2
019
Part
icul
ars
Cur
rent
A
sset
sN
on-C
urre
nt
Ass
ets
Cur
rent
L
iabi
litie
sN
on-C
urre
nt
Lia
bilit
ies
Tot
al R
even
uePr
ofit
or
Los
s fro
m
cont
inui
ng
oper
atio
ns
Prof
it or
Los
s fr
om
disc
ontin
ued
oper
atio
ns
Oth
er
Com
preh
ensi
ve
Inco
me
Tot
al
Com
preh
ensi
ve
Inco
me
Blo
ck 0
6.1,
Vie
tnam
2,07
2.54
8,13
3.66
1,29
6.18
1,62
2.85
9,74
1.39
4,60
6.00
--
4,60
6.00
Port
Suda
n Pr
oduc
t Pip
elin
e, S
udan
3.98
-39
6.89
--
(62.
83)
--
(62.
83)
Blo
ck F
arsi
, Ira
n1.
880.
1766
.17
--
(88.
79)
--
(88.
79)
Blo
ck S
S-04
, Ban
glad
esh
12.7
639
.09
56.2
5-
-(1
1.60
)-
-(1
1.60
)B
lock
SS-
09, B
angl
ades
h5.
380.
5120
.79
--
(33.
61)
--
(33.
61)
Blo
ck S
akha
lin 1
, Rus
sia
16,8
56.4
623
6,25
2.48
7,88
1.77
29,9
91.9
886
,428
.88
37,3
41.2
1-
-37
,341
.21
Blo
ck R
C-9
, Col
ombi
a-
-6.
75-
-(8
6.15
)-
-(8
6.15
)B
lock
RC
-10,
Col
ombi
a0.
290.
0275
.23
--
(1,5
11.5
6)-
-(1
,511
.56)
Blo
ck C
PO 5
, Col
ombi
a1,
268.
7787
.10
21.3
3-
2,46
8.28
1,46
8.63
--
1,46
8.63
Blo
ck A
CG
, Aze
rbai
jan
580.
5340
,549
.39
838.
7410
,450
.47
6,88
5.96
1,61
4.15
--
1,61
4.15
Blo
ck S
SJN
-7, C
olom
bia
--
--
--
--
-B
lock
A-1
, Mya
nmar
1,45
5.56
11,3
66.3
62,
181.
43-
4,32
3.38
2,18
8.18
--
2,18
8.18
Blo
ck A
-3, M
yanm
ar86
.28
2,86
5.49
1,09
5.17
-4,
407.
612,
219.
06-
-2,
219.
06SH
WE
Offs
hore
Pip
elin
e, M
yanm
ar55
.08
1,50
7.67
528.
88-
1,60
3.12
1,11
8.14
--
1,11
8.14
Mya
nmar
Blo
ck E
P 3,
O/S
(Non
-Op)
66.4
50.
1812
8.19
--
(88.
09)
--
(88.
09)
Mya
nmar
Blo
ck B
2 O
nsho
re28
5.55
26.5
711
7.29
--
(681
.79)
--
(681
.79)
Blo
ck A
rea
1, M
ozam
biqu
e51
0.64
200,
129.
0148
3.63
--
24.0
8-
-24
.08
Blo
ck 5
A, S
udan
135.
938,
971.
411,
174.
57-
-(5
,956
.43)
--
(5,9
56.4
3)B
lock
Sat
paye
v, K
azak
hsta
n19
8.27
9.03
--
-13
6.26
--
136.
26B
lock
24,
Syr
ia59
.71
0.38
574.
07-
-(0
.69)
--
(0.6
9)
Gra
nd T
otal
23,6
56.0
6
50
9,93
8.52
16,9
43.3
342
,065
.30
115,
858.
6242
,194
.17
-
-
42,1
94.1
7
Annu
al R
epor
t 201
9 - 2
019
8 of
373
ON
GC
VID
ESH
LIM
ITE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
43.3
Add
ition
al F
inan
cial
info
rmat
ion
rela
ted
to J
oint
Ope
ratio
n bl
ocks
/ pr
ojec
ts a
re a
s und
er:
As a
t Mar
ch 3
1, 2
020
Part
icul
ars
Cas
h an
d C
ash
Equ
ival
ents
Cur
rent
Fi
nanc
ial
Lia
bilit
ies
Non
-Cur
rent
Fi
nanc
ial
Lia
bilit
ies
Dep
reci
atio
n an
d A
mor
tisat
ion
Inte
rest
Inco
me
Inte
rest
E
xpen
seIn
com
e T
ax
Exp
ense
or
Inco
me
A. A
udite
d as
on
31 M
arch
, 202
0B
lock
06.
1, V
ietn
am21
0.87
1,31
6.00
-1,
991.
850.
77-
-
Blo
ck S
akha
lin 1
, Rus
sia
5,12
2.53
7,70
1.77
-14
,379
.12
114.
15-
17,1
18.3
7T
otal
(A)
5,33
3.40
9,
017.
77-
16
,370
.97
114.
92-
17
,118
.37
B. A
udite
d as
of 3
1 D
ecem
ber,
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9B
lock
CPO
5, C
olom
bia
17.4
11,
239.
73-
0.03
4.16
--
Tot
al (B
)17
.41
1,
239.
73-
0.
034.
16-
-
C. U
naud
ited
Blo
ck A
CG
, Aze
rbai
jan
2.60
2,00
8.07
3,89
8.30
2,59
8.18
1.93
-1,
013.
69Po
rt Su
dan
Prod
uct P
ipel
ine,
Sud
an4.
431,
917.
51-
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08-
-
Blo
ck F
arsi
, Ira
n15
.73
3.35
--
0.18
--
Blo
ck A
-1, M
yanm
ar20
6.07
(995
.51)
-2,
676.
48-
-(3
20.4
9)
Blo
ck A
-3, M
yanm
ar37
2.61
647.
55-
883.
36-
-82
9.94
SHW
E O
ffsho
re P
ipel
ine,
Mya
nmar
19.3
315
.55
-19
8.45
--
440.
25
Blo
ck S
S-04
, Ban
glad
esh
38.8
450
.29
--
--
-
Blo
ck S
S-09
, Ban
glad
esh
55.5
241
.03
--
--
-
Blo
ck S
SJN
-7, C
olom
bia
-45
.81
--
--
-
Blo
ck R
C-9
, Col
ombi
a-
7.67
--
0.72
--
Blo
ck R
C-1
0, C
olom
bia
--
--
1.67
--
Mya
nmar
Blo
ck E
P 3,
O/S
(Non
-Op)
23.1
172
.10
--
--
-
Mya
nmar
Blo
ck B
2 O
nsho
re22
2.89
320.
82-
--
--
Blo
ck 5
A, S
udan
315.
6167
3.28
-31
.46
--
-
Blo
ck S
atpa
yev,
Kaz
akhs
tan
3.71
0.14
-1.
68-
--
Blo
ck 2
4, S
yria
-63
1.91
--
--
-
Tot
al (
C)
1,28
0.45
5,
439.
573,
898.
306,
389.
614.
58-
1,
963.
39 G
rand
Tot
al6,
631.
26
15,6
97.0
73,
898.
3022
,760
.61
123.
66-
19
,081
.76
Annu
al R
epor
t 201
9 - 2
019
9 of
373
ON
GC
VID
ESH
LIM
ITE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
As a
t Mar
ch 3
1, 2
019
Part
icul
ars
Cas
h an
d C
ash
Equ
ival
ents
Cur
rent
Fi
nanc
ial
Lia
bilit
ies
Non
-Cur
rent
Fi
nanc
ial
Lia
bilit
ies
Dep
reci
atio
n an
d A
mor
tisat
ion
Inte
rest
Inco
me
Inte
rest
E
xpen
seIn
com
e T
ax
Exp
ense
or
Inco
me
Blo
ck 0
6.1,
Vie
tnam
224.
781,
296.
18-
1,64
8.71
1.34
--
Port
Suda
n Pr
oduc
t Pip
elin
e, S
udan
3.98
396.
89-
-0.
08-
-
Blo
ck F
arsi
, Ira
n1.
8866
.17
--
0.04
--
Blo
ck S
S-04
, Ban
glad
esh
12.7
656
.25
--
--
-
Blo
ck S
S-09
, Ban
glad
esh
5.38
20.7
9-
--
--
Blo
ck S
akha
lin 1
, Rus
sia
3,15
3.22
7,58
7.40
-13
,840
.77
28.5
5-
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92.4
6B
lock
RC
-9, C
olom
bia
-6.
75-
-1.
31-
-
Blo
ck R
C-1
0, C
olom
bia
0.29
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3-
0.07
1.75
--
Blo
ck C
PO 5
, Col
ombi
a0.
9821
.33
-0.
016.
23-
-
Blo
ck A
CG
, Aze
rbai
jan
(Ref
er n
ote
23.3
)2.
0783
8.74
4,42
4.03
2,81
5.57
0.74
-1,
021.
23B
lock
SSJ
N-7
, Col
ombi
a-
--
--
--
Blo
ck A
-1, M
yanm
ar43
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588.
81-
1,43
2.39
0.08
-(2
38.6
2)
Blo
ck A
-3, M
yanm
ar72
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133.
52-
744.
200.
10-
427.
31
SHW
E O
ffsh
ore
Pipe
line,
Mya
nmar
16.4
211
.59
-22
5.04
0.03
-16
3.71
Mya
nmar
Blo
ck E
P 3,
O/S
(Non
-Op)
66.4
512
8.19
--
--
-
Mya
nmar
Blo
ck B
2 O
nsho
re28
5.55
117.
29-
--
--
Blo
ck A
rea
1, M
ozam
biqu
e3.
9348
3.63
-(1
3.85
)-
--
Blo
ck 5
A, S
udan
69.7
61,
174.
57-
64.9
6-
--
Blo
ck S
atpa
yev,
Kaz
akhs
tan
1.63
--
0.99
0.01
--
Blo
ck 2
4, S
yria
-57
4.07
-0.
04-
--
Gra
nd T
otal
3,96
5.75
13
,577
.40
4,42
4.03
20,7
58.9
040
.26
-
18,5
66.0
9
43.4
The
fina
ncia
l pos
ition
s of t
he jo
int v
entu
res a
re a
s und
er:
The
com
pany
's di
rect
join
t ven
ture
s and
ass
ocia
te d
o no
t hav
e an
y op
erat
ions
as o
f now
and
are
con
side
red
insi
gnifi
cant
.
Annu
al R
epor
t 201
9 - 2
020
0 of
373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
44 Financial instruments
44.1 Capital Management
44.1.1 Gearing Ratio
The gearing ratio at end of the reporting period was as follows:
As at March 31, 2020
As at March 31, 2019
306,906.42 303,218.1912,724.33 22,018.95
294,182.09 281,199.24
334,868.77 336,072.75
87.85% 83.67%
44.2
Financial assets*
As at March 31, 2020
As at March 31, 2019
Measured at fair value through profit or loss(a) Mandatorily measured:
30,228.72 25,082.71
(ii) Derivative assets 44.44 113.10
Measured at amortised cost(a) Trade receivables 7,577.22 11,042.44(b) Cash and cash equivalents 12,724.33 22,018.95(c) Deposit under Site Restoration Fund 1,313.83 958.21(d) Loans 194,503.60 12,892.09(e) Other financial assets 21,829.33 5,607.30
Finance lease receivables - -
The Company’s objective when managing capital is to :
Safeguard its ability to continue as going concern so that the Company is able to provide return to stakeholders and benefits for other stakeholders;and
Maintain an optimal capital structure of debt and equity balance.
The Company maintains its financial framework to support the pursuit of value growth for shareholders, while ensuring a secure financial base. Inorder to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital toshareholders, issue new shares or sell assets to reduce debt.
(i) Investment in mutual funds for site restoration fund
The capital structure of the Company consists of net debt (borrowings as detailed in note 23 offset by cash and bank balances) and total equity ofthe Company.
The Company's Audit Committee reviews the capital structure of the Company on a semi-annual basis. As part of this review, the committeeconsiders the cost of capital and the risks associated with each class of capital.
* Investments in subsidiaries, joint ventures and associates have not been included, since these have been valued at cost less impairment.
Categories of financial instruments
Particulars
Debt (Refer note 23)Cash and cash equivalents (Refer note 20)
Net debt
Total equity (Refer note 21 and 22)
Net debt to total equity ratio
Particulars
Annual Report 2019 - 20 201 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
Financial liabilities
As at March 31, 2020
As at March 31, 2019
Measured at fair value through profit or loss(a) Mandatorily measured:(i) Derivative liabilities 1,932.44 1,980.62
Measured at amortised cost(a) Borrowings 306,906.42 303,218.19(b) Trade payables 13,040.82 10,884.01(c) Other financial liabilities 14,460.62 14,393.24(d) Lease Liability 369.78 369.78
44.3 Financial risk management objectives
44.4 Market Risk
44.5 Foreign currency risk management
As at March 31, 2020
As at March 31, 2019
43,156.87 40,579.62
Market risk is the risk or uncertainty arising from possible market price movements and their impact on the future performance of a business. Themajor components of market risk are price risk, foreign currency exchange risk and interest rate risk.
The primary commodity price risks that the Company is exposed to include international crude oil prices that could adversely affect the value of theCompany’s financial assets or expected future cash flows. Substantial or extended decline in international prices of crude oil and natural gas mayhave an adverse effect on the Company’s reported results.
The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk,including:
(a) interest rate swaps to mitigate the variable of rising interest rate
(b) forward foreign exchange contract to hedge its exposure in respect of Euro bond issued by the Company and for certain payments in Russian Ruble.
Particulars
Borrowings
While ensuring liquidity is sufficient to meet Company’s operational requirements, the Company’s management also monitors and manages keyfinancial risks relating to the operations of the Company by analysing exposures by degree and magnitude of risks. These risks include market risk(including currency risk, interest risk and price risk), credit risk and liquidity risk.
The Company’s management seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The useof financial derivatives is governed by the company's policies approved by the Board of Directors, which provide written principles on foreignexchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excessliquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Group does not enter into ortrade financial instruments, including derivative financial instruments, for speculative purposes.
Particulars
The below table summarises significant foreign currency denominated monetary liabilities at each reporting date:
Functional currency of the Company is USD. The Company undertakes transactions denominated in different foreign currencies and isconsequently exposed to exchange rate fluctuations due to overseas operations.
Unsecured 2.75% 7 year EUR Bonds - EUR 525million
Annual Report 2019 - 20 202 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
- 3,700.00
369.78 369.78
44.5.1 Foreign currency sensitivity analysis
Year ended March 31,
2020
Year ended March 31,
2019
2,240.90 2,097.83(2,240.90) (2,097.83)
- 200.80- (200.80)
44.5.2 Forward foreign exchange contracts
44.6 Interest rate risk management
44.6.1 Interest rate sensitivity analysis
(a) USD 775 Million facility as on March 31, 2020 (Previous year USD 1775 Million as on March 31, 2019)Year ended March 31,
2020
Year ended March 31,
2019
(i) 274.80 620.77
(ii) (274.80) (620.77)Impact on profit or loss for the period fordecrease in interest rate
Particulars
Euro-USD appreciation by 5%Euro-USD depreciation by 5%
USD-INR appreciation by 5%USD-INR depreciation by 5%
Impact on profit or loss for the period forincrease in interest rate
The Company is exposed to foreign currency risk against currency other functional currency. Sensitivity of profit or loss arises mainly againstEURO and INR borrowing.
As per management's assessment of reasonable possible changes in the exchange rate of +/- 5% between USD-EURO and USD-INR currencypair, sensitivity of profit or loss only on outstanding foreign currency denominated monetary items at the year end is presented below:
In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of thereporting period does not reflect the exposure during the year.
The Company generally enters into forward exchange contracts to cover specific foreign currency payments and receipts to reduce foreignexchange fluctuation risk. In current period, the Company has entered certain derivative contracts to cover exposure towards EURO bond.
The Company is exposed to interest rate risk because the Company borrows funds at both fixed and floating interest rates. The Company'sexposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note.
The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative instruments atthe end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of thereporting period was outstanding for the whole period. A 50 basis point increase or decrease is used when reporting interest rate risk internally tokey management personnel and represents management's assessment of the reasonably possible change in interest rates.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the analysis is as under:
USD sensitivity at period end
Borrowing
Unsecured non-convertible redeemable bonds inthe nature of Debentures- Series II of face value₹ 1 million each (₹ 3,700 million)Lease liability
Annual Report 2019 - 20 203 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
(b) USD 500 Million facility as on March 31, 2020 (New Loan, drawdown made in July 2020)Year ended March 31,
2020
Year ended March 31,
2019
(i) 177.29 -
(ii) (177.29) -
(c) USD 1000 Million facility as on March 31, 2020 ( New Loan, Drawdown made in March 2020)Year ended March 31,
2020
Year ended March 31,
2019
(i) 354.58 -
(ii) (354.58) -
44.6.2 Interest rate swap contracts
44.7 Price risks
Price sensitivity analysis
44.8 Credit risk management
The sensitivity of profit or loss in respect of investments in mutual funds at the end of the reporting period for +/- 5% change in price and net assetvalue is presented below:
Particulars
Impact on profit or loss for the period forincrease in interest rate
Impact on profit or loss for the period fordecrease in interest rate
Profit before tax for the period ended March 31, 2020 would increase/decrease by ₹ 1,511.44 million (For the year ended March 31, 2019 wouldincrease/decrease by ₹ 1,254.14 million) as a result of the changes in net asset value of investment in mutual funds.
Credit risk arises from cash and cash equivalents, investments and deposits with banks as well as customers including receivables. Credit riskmanagement considers available reasonable and supportive forward-looking information including indicators like external credit rating (as far asavailable), macro-economic information (such as regulatory changes, government directives, market interest rate).
Major customers, of the Company are reputed Oil Marketing Companies (OMCs) / International Oil Companies (IOCs) / National Oil Companies(NOCs) which have highest credit ratings, carrying negligible credit risk.
Particulars
Impact on profit or loss for the period forincrease in interest rate
Impact on profit or loss for the period fordecrease in interest rate
Credit exposure is managed by counterparty limits for investment of surplus funds which is reviewed by the Management. Investments in short termdeposits are with high rated public sector banks.
Bank balances are held with a reputed and creditworthy banking institution.
The Company is engaged in E&P business outside India. Its revenues of crude oil and natural gas are principally denominated in USD. Further,price benchmarks wherever applicable are also principally in USD. The Company has therefore swapped the coupon and the principal amount of8.54 % Unsecured Redeemable Debenture (face value of ₹ 3,700.00 Million) into USD. These contracts matured during the year 2019-20.
Annual Report 2019 - 20 204 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
44.9 Liquidity risk management
Particulars Weighted average effective
interest rate
Less than 1 month
1 month -1 year
1 year – 3 years
More than 3 years
Total Carrying amount
As at March 31, 2020Measured at amortised costFixed Rate BorrowingUSD 750 millions unsecured non-convertible Reg S Bonds
4.72% - - - 56,165.20 56,165.20 56,165.20
USD 500 millions unsecured non-convertible Reg S Bonds
3.76% - - - 37,701.10 37,701.10 37,701.10
EUR 525 millions unsecured Euro Bonds
2.84% - 43,156.87 - - 43,156.87 43,156.87
USD 750 millions unsecured non-convertible Reg S Bonds
3.39% - - - - - -
USD 300 millions unsecured non-convertible Reg S Bonds
2.59% - - - - - -
Non-convertible redeemable debentures
8.54% - - - - - -
Variable Rate BorrowingTerm loan from bank 3M$Libor +
100 bps- - - 37,475.82 37,475.82 37,475.82
Term loan from bank 3M$Libor + 95 bps
- - - 74,649.72 74,649.72 74,649.72
Short Term Loan from Bank 3M$Libor + 95 bps
- 57,757.71 - - 57,757.71 57,757.71
Lease Liability - - - - 369.78 369.78 369.78Trade Payable - - 13,040.82 - - 13,040.82 13,040.82Non-recourse deferred credit (net) - - - - - - -
Payable to operators - - 3,172.69 - - 3,172.69 3,172.69Bonus payable for extension of Production sharing agreement
- - 1,031.56 2,956.29 942.01 4,929.86 4,929.86
Payable to Holding company - - - - - - -Payable to subsidiary company - - 443.66 - - 443.66 443.66
Deposit from suppliers/vendors - - 3.48 - - 3.48 3.48
Interest accrued - - 3,129.50 499.65 - 3,629.15 3,629.15Others (Others financials liabilities)
- - 2,281.78 - - 2,281.78 2,281.78
Total - 124,018.07 3,455.94 207,303.63 334,777.64 334,777.64
The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including bank deposits and availability of fundingthrough an adequate amount of committed credit facilities from bank and borrowings from parent company to meet obligations when due.Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquiditymanagement also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles offinancial assets and liabilities and monitoring the standalone balance sheet liquidity ratios.
The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods.The information included in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest dateon which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on theearliest date on which the Company may be required to pay.
Annual Report 2019 - 20 205 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
Particulars Weighted average effective
interest rate
Less than 1 month
1 month -1 year
1 year – 3 years
More than 3 years
Total Carrying amount
As at March 31, 2020Trade receivables - 7,577.22 - - - 7,577.22 7,577.22 Security deposits - - - 28.82 - 28.82 28.82 Loans to subsidiaries - - 2,670.80 191,615.26 2,370.31 196,656.37 194,286.06 Loans to employees - 3.30 33.32 166.08 53.73 256.43 188.72 Interest accrued on bank deposits - - 124.00 - - 124.00 124.00
Deposit for site restoration fund - - - - 1,314.44 1,314.44 1,314.44
Finance lease receivables - - - - 5,641.71 5,641.71 - Advances recoverable in cash - - 4.00 - - 4.00 4.00 Receivable from holding Company
- - 152.24 - - 152.24 152.24
Receivable from subsidiaries - - 2,615.88 - - 2,615.88 2,615.88 Receivable from Joint operations partners
- - 2,017.45 - - 2,017.45 2,017.45
Receivable from operators - - 735.25 - - 735.25 735.25 Carried interest - - - - - - - Total 7,580.52 8,352.94 191,810.16 9,380.19 217,123.81 209,044.08
Particulars Less than 3 months
3 months – 6 months
6 months – 1 year
More Than 1 year
Total Carrying amount
As at March 31, 2020Gross settled:Derivative liabilities- foreign exchange forward contracts
- - - 1,932.44 1,932.44 1,932.44
Total - - - 1,932.44 1,932.44 1,932.44
Gross settled:Derivative assets- foreign exchange option contracts
- - - 44.44 44.44 44.44
Total - - - 44.44 44.44 44.44
44.10 Fair value measurement
The following table details the Company's expected maturity for its non-derivative financial assets. The information included in the table has beendrawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. Theinclusion of information on non-derivative financial assets is necessary in order to understand the Company's liquidity risk management as theliquidity is managed on a net asset and liability basis.
The amounts included above for variable interest rate instruments for both non-derivative financial assets and liabilities is subject to change ifchanges in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.
The following table details the Company’s liquidity analysis for its derivative financial instruments. The table has been drawn up based on theundiscounted contractual net cash inflows and outflows on derivative instruments that settle on a gross basis:
This note provides information about how the Company determines fair values of various financial assets.
Annual Report 2019 - 20 206 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
44.11 Fair value of the Company’s financial assets that are measured at fair value on a recurring basis
As at March 31, 2020
As at March 31, 2019
178,493.97 - Level 2
30,228.72 25,082.71 Level 1
44.44 113.10 Level 1
188.72 194.17 Level 2
1,932.44 1,980.62 Level 1
5,092.99 4,345.87 Level 2
369.78 369.78 Level 2
44.12
45 Contingent liabilities and Contingent assets
45.1 Contingent Liabilities
45.1.1
45.1.2
Disputed income-tax demands : ₹ 25,682.46 million (previous year : ₹ 23,835.95 million) (including interest but excluding addition made by theAssessing Officer (AO) on protective basis). Against disputed tax demands, ₹ 766.82 million as at March 31, 2020 (as at March 31, 2019 ₹5,970.24 million) has been paid by the Company or adjusted by the authorities against refunds due to the Company from time-to-time. The demandsare at various stages of litigation and, in the opinion of the Company, the same are not tenable. As per the assessment of the company, it has beenconcluded that there is no additional current tax expenses on account of uncertain tax positions.
Claims of contractors in arbitration/court/others are recognised to the extent of the stake of the company : ₹ 1,105.02 million (previous year : ₹962.16 million). The claims are at various stages of litigation and, in the opinion of the Company, the same are not tenable.
Some of the Company’s financial assets are measured at fair value at the end of each reporting period. The following table gives information abouthow the fair values of these financial assets are determined.
Financial Assets
Fair value Valuation technique(s) and key input(s)
NAV declared by respective Asset Management Companies.
Derivative liabilities Financial Liabilities
Mark to Market valuation report provided by banks.
Investment in mutual funds
Particulars Fair value hierarchy
Employee Loans
Loan to Subsidiary (OVRL, India) Interest Rate Differential Model.
Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)
Management considers that the carrying amounts of financial assets and financial liabilities recognized in the financial statements except as pernote 44.11 approximate their fair values.
Discounted Cash Flows i.e. present value of expected receipt/payment discounted using appropriate discounting rate.
Derivative assets Mark to Market valuation report provided by banks.
Deemed Capital Contribution from Holding Company (Financial Guarantee and Loans)
Lease Liability
Interest Rate Differential Model.
Valuation based upon risk adjusted discount rate applied to get present value of annually till perpetuity
Annual Report 2019 - 20 207 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
45.1.3
45.2 Corporate Guarantees
45.2.1 Performance guarantee
(i)
(ii)
As at March 31, 2020
As at March 31, 2019
87,160.53 79,920.25
Total 87,160.53 79,920.25
45.2.2 Commitments
As at March 31, 2020
As at March 31, 2019
11,323.51 11,743.37
9,824.85 9,770.02Total 21,148.36 21,513.39
(b) Minimum work program commitment
The Company has issued Performance Guarantee to meet the performance obligation in respect of concessionary contract for Block BC-10, Brazilon behalf of its wholly owned subsidiary ONGC Campos Ltda (OCL) which is holding 27% PI in the block. The Company is confident that OCLwill be able to honor its obligations.
The company has given Performance Guarantee to meet the performance obligation in respect of Carabobo 1 project in Venezuela on behalf ofsubsidiary Petro Carabobo Ganga B.V. The details of outstanding amount is given below. The Company is confident that Petro Carabobo GangaB.V. will be able to honor its obligations.
Particulars
(a) Estimated amount of contracts remainingto be executed on capital account and notprovided for
Capital Commitments based upon the details provided by the operators: ₹ 21,148.36 million (as at March 31, 2019 ₹ 21,513.39 million).
Performance guarantee in respect of Carabobo 1Project on behalf of Petro Carabobo Ganga B.V.
Particulars
The Service Tax Department had issued a demand cum show-cause notice dated October 11, 2011 requiring the Company to show cause whyservice tax amounting to ₹ 28,163.14 million (including Education Cess and SHE cess), the interest on such amount and penalty should not bedemanded and recovered from the Company. Service Tax Department has calculated these tax amounts based on foreign currency expenditurereported in the Company’s financial statements covering the reporting periods from April 1, 2006 to December 31, 2010 and contending that theseexpenses represent business auxiliary services rendered by the Company foreign branches and operator of the Joint Venture/ Consortium to theCompany. Subsequently, five more demand-cum-show cause notices have been issued based on similar contentions covering the period upto March31, 2015 to show cause why service tax amounting to ₹ 32,863.61 million (including Education cess and SHE cess), the interest on such amountand penalty should not be demanded and recovered from the Company. A demand-cum-show cause notice has been issued based on similarcontentions covering the period April 1, 2015 to March 31, 2017 to show cause why service tax amounting to ₹ 15,633.22 million (includingEducation cess and SHE cess), the interest on such amount and penalty should not be demanded and recovered from the Company. Further, ademand-cum-show cause notice dt. 10.02.2020 has been issued based on similar contentions covering the period April 1, 2017 to June 30, 2017 toshow cause why service tax amounting to ₹ 2119.93 million (including Education cess and SHE cess), the interest on such amount and penaltyshould not be demanded and recovered from the Company. The Company is of the view that the said service tax is not payable and contesting thesame. No provision is required to be made in the financial statements at this stage. In the assessment of the management based on independent andcompetent legal opinion obtained during the previous year and other attendant factors including circular no. 35/9/2018-GST dated March 05, 2018issued by Central Board of Excise and Customs, the possibility of the success of the Company’s position is extremely high and the possibility of thesuccess of contentions of the Department is very low. Since the chances of payability of the service tax itself have been evaluated by themanagement as being remote/very low, the chances of assessment of interest and penalty are evaluated to be much lower. Accordingly, the amountscovered by the abovementioned show-cause notices (i.e. tax amount as well as potential interest and penalty thereon) are not considered ascontingent liability in accordance with the applicable accounting standards. Further, according to the legal opinion obtained by the Company, ashow-cause notice in itself does not qualify as a demand and the chance of the claim being payable by the Company is remote as the Company has avery good case to argue and succeed before the concerned authorities based on the legal position as on date.
Annual Report 2019 - 20 208 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
45.3 Contingent AssetsAs at March
31, 2020As at March
31, 2019
Contingent Assets * - 619.82
Contingent assets represent interest in respect of carried finance in respect of exploratory and development assets that would be recognised oncertainty of receipt.
Particulars
* Block Area 1, Mozambique details not included above as it has been transferred during the year to ONGC Videsh Rovuma Limited, India (awholly owned subsidiary of ONGC Videsh) (Refer note 52)
Annual Report 2019 - 20 209 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
46 Disclosure under the Guidance Note on Accounting for Oil and Gas Producing Activities (Ind AS)
46.1 Company's share of Proved Reserves on the geographical basis is as under:
As at March 31, 2020
As at March 31, 2019
As at March 31, 2020
As at March 31, 2019
As at March 31, 2020
As at March 31, 2019
Opening 5.886 5.886 - - 5.886 5.886Addition - - - - - -Deduction/ Adjustment
- - - - - -
Production - - - - - -Closing 5.886 5.886 - - 5.886 5.886Opening 31.082 34.139 52.457 71.353 83.539 105.492Addition 3.595 (0.570) 2.532 (18.274) 6.127 (18.844)Deduction/ Adjustment
0.002 (0.002) - 0.002 (0.002)
Production 2.555 2.489 0.617 0.622 3.172 3.111Closing 32.120 31.082 54.372 52.457 86.492 83.539Opening 0.630 0.627 5.942 6.987 6.572 7.614Addition - 0.019 - 0.505 - 0.524Deduction/ Adjustment
- - - - - -
Production 0.011 0.016 1.848 1.550 1.859 1.566Closing 0.619 0.630 4.094 5.942 4.713 6.572Opening 1.803 1.803 - - 1.803 1.803Addition - - - - - -Deduction/ Adjustment
- - - - - -
Production - - - - - -Closing 1.803 1.803 - - 1.803 1.803Opening - - 9.647 8.467 9.647 8.467Addition - - - 1.877 - 1.877Deduction/ Adjustment
- - - - - -
Production - - 1.056 0.697 1.056 0.697Closing - - 8.591 9.647 8.591 9.647Opening 9.428 3.780 - - 9.428 3.780Addition 1.125 6.304 - - 1.125 6.304Deduction/ Adjustment
- - - - -
Production 0.595 0.656 - - 0.595 0.656Closing 9.958 9.428 - - 9.958 9.428Opening 48.829 46.235 68.046 86.807 116.875 133.042Addition 4.720 5.753 2.532 (15.892) 7.252 (10.139)Deduction/ Adjustment
0.002 (0.002) - - 0.002 (0.002)
Production 3.161 3.161 3.521 2.869 6.682 6.030Closing 50.386 48.829 67.057 68.046 117.443 116.875
Total oil equivalent (MMTOE)**
Total Reserves
Gas (Billion Cubic Meter)
Block 5A, South Sudan
Sakhalin-1, Russia
Block 06.1, Vietnam
Block XXIV, Syria
Crude oil* (MMT)
Block A1 and A3, Myanmar
ACG, Azerbaijan
Project (Joint operations)
Details
Annual Report 2019 - 20 210 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
46.2 Company's share of Proved Developed Reserves on the geographical basis is as under:
As at March 31, 2020
As at March 31, 2019
As at March 31, 2020
As at March 31, 2019
As at March 31, 2020
As at March 31, 2019
Opening 2.565 2.565 - - 2.565 2.565Addition - - - - - -Deduction/ Adjustment
- - - - - -
Production - - - - - -Closing 2.565 2.565 - - 2.565 2.565Opening 15.192 16.737 28.479 9.506 43.671 26.243Addition 5.830 0.943 1.293 19.594 7.123 20.537Deduction/ Adjustment
0.001 (0.001) 0.001 (0.001) 0.002 (0.002)
Production 2.555 2.489 0.617 0.622 3.172 3.111Closing 18.466 15.192 29.154 28.479 47.620 43.671Opening 0.630 0.611 5.942 3.500 6.572 4.111Addition - 0.035 - 3.993 - 4.028Deduction/ Adjustment
- - - 0.001 - 0.001
Production 0.011 0.016 1.848 1.550 1.859 1.566Closing 0.619 0.630 4.094 5.942 4.713 6.572Opening 0.049 0.049 - - 0.049 0.049Addition - - - -Deduction/ Adjustment
- - - -
Production - - - -Closing 0.049 0.049 - - 0.049 0.049Opening - - 4.032 5.044 4.032 5.044Addition - - - (0.316) - (0.316)Deduction/ Adjustment
- - - (0.001) - (0.001)
Production - - 1.056 0.697 1.056 0.697Closing - - 2.976 4.032 2.976 4.032Opening 9.081 3.334 - - 9.081 3.334Addition 0.091 6.403 - - 0.091 6.403Deduction/ Adjustment
- - - - -
Production 0.595 0.656 - - 0.595 0.656Closing 8.577 9.081 - - 8.577 9.081Opening 27.517 23.296 38.454 18.051 65.970 41.346Addition 5.921 7.381 1.293 23.271 7.214 30.652Deduction/ Adjustment
0.001 (0.001) 0.001 (0.001) 0.002 (0.002)
Production 3.161 3.161 3.521 2.869 6.682 6.030Closing 30.276 27.517 36.225 38.454 66.500 65.970
Due to non activity in Block 5A, South Sudan and Block XXIV, Syria, there is no change in reserve status as per REC report.
ACG, Azerbaijan
Block A1 and A3, Myanmar
Block XXIV, Syria
Total Reserves
* Crude oil includes Condensate.** MMTOE denotes “Million metric Tonne Oil Equivalent” and for calculating Oil equivalent of Gas, 1000 M3 of Gas has been taken to be equalto 1 MT of Crude oil.Variations in totals, if any, are due to internal summations and rounding off.Reserves of the Company as at October 1, 2013 were certified by Third Party Certifying (TPC) agencies. The certified 1P reserves were lower by45.538 MMT as compared with the estimates of Reserve Estimates Committee (REC) of the parent company i.e. Oil & Natural Gas Corporation ofIndia Limited (ONGC) in respect of certain projects. However, the management of the Company did not agree with the assumptions of the TPC inthis regard and adopted the reserves figures as approved by the REC.
Refer note 43 for status of projects.
Total oil equivalent (MMTOE)**Gas (Billion Cubic Meter)Crude oil* (MMT)Project (Joint operations)
Details
Block 5A, South Sudan
Sakhalin-1, Russia
Block 06.1, Vietnam
Annual Report 2019 - 20 211 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
47 Impairment recognized during the year
47.1
Imperial Energy, Russia 49.952Block-5A, South Sudan 6.312Sakhalin, Russia 111.361Block 06.1, Vietnam 9.202Block A1 & A3, Myanmar 14.045ACG, Azerbaijan 9.958Area 1, Offshore Mozambique 218.410
48
49
50
The Company has a system of physical verification of Inventory, property, plant and equipment and Capital Stores in a phased manner to cover allitems over a period of three years. Adjustment differences, if any, are carried out on completion of reconciliation.
Impairment assessment is made on an annual basis. The Company carried out last impairment test as at March 31, 2019 in respect of its CashGenerating Units (CGUs) based on value in use method and appropriate impairment allowance was recognised.The Company carried out impairment test as at March 31, 2020 in respect of its Cash Generating Units (CGUs) based on value in use method. TheCompany identified impairment in respect of 4 CGUs and made a provision for impairment of ₹ 100,686.00 million during the year ended March31, 2020 (for the year ended March 31, 2019 provision for impairment of ₹ 15,762.16 million was recognised). The current year provision forimpairment is considered as exceptional item. Refer note 37.
The following 2P reserves of the respective CGUs have been considered for the impairment assessment:
CGU
The Company has considered the equity share investment, preference share investment, loans given and accrued interest thereon, to its whollyowned subsidiary Imperial Energy as carrying value of investment for the purpose of impairment assessment. The cash flows for assessing the valuein use have been considered estimating the life of blocks till 2060 based on the reserves estimates as per GKZ, the State Commission for MineralResources as well as the existing provisions in the Russian sub soil law which states that “The time lines of use of a subsoil area can be extended atthe initiative of the subsoil user in case it is necessary to complete prospecting and appraisal or development of a mineral deposits or carry outabandonment/liquidation measures subject to absence of violations of the license terms by this subsoil user. The existing validity period of licensesof various blocks are ranging from upto 2022 to till 2038 which can be extended at the initiative of the user. The production for next five years have been estimated in alignment with the work program from 2020-21 to 2024-25 and thereafter as per thedesign documents approved by the regulator.
Proved and Probable Reserves (MMTOE)
as at March 31, 2020
The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
Some balances of Trade and other receivables, Trade and other payables and Loans are subject to confirmation/reconciliation. Adjustments, if any,will be accounted for on confirmation/reconciliation of the same, which are not expected to have a material impact.
Annual Report 2019 - 20 212 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
51 Changes in accounting policy
Assets Carrying Amount 31 March 2019
ReclassificationIncrease/ (Decrease)
Carrying Amount April 01, 2019
on Adoption of Ind AS 116
Right-of-use assets - 3,168.30 3,168.30Other property, plant and equipment 14,868.49 (3,168.30) 11,700.19Total assets 14,868.49 - 14,868.49
Liabilities Carrying Amount 31 March 2019
ReclassificationIncrease/ (Decrease)
Carrying Amount April 01, 2019
on Adoption of Ind AS 116
Borrowings - Non Current 248,313.58 (369.78) 247,943.80 Lease Liabilities - 369.78 369.78 Total Liabilities 248,313.58 - 248,313.58
b) The following is a reconciliation of the financial statement line items from Ind AS 17 to Ind AS 116 at 1 April 2019:
Leases previously classified as finance leases:The Company did not change the initial carrying amounts of recognised assets and liabilities at the date of initial application forleases previously classified as finance leases. The requirements of Ind AS 116 were applied to these leases from 1 April 2019.
Leases previously accounted for as operating leases:Such leases meet the criteria for short term leases or low value leases under Ind AS 116. Hence no right-of-use asset or lease liabilityhas been recognised. There are no operating lease commitments which were required to be disclosed under the erstwhile Ind AS 17,therefore, the reconciliation of the operating lease commitments as at 31 March 2019 to lease liabilities as at 1 April 2019 is notgiven.
Annual Report 2019 - 20 213 of 373
ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
52 Sale of Mozambique business
ParticularsAs at 1 January 2020
(USD Million)As at 1 January 2020
(INR Million) *Non-current assetsProperty, plant and equipmentOther property, plant and equipment 0.11 7.91 Capital work in progressOil and gas assetsOil and gas facilities in progress 331.70 23,660.45 Intangible assets under developmentExploratory wells in progress 254.43 18,148.71 Acquisition cost 2,371.48 169,157.41 Other non-current assets 109.41 7,804.57 Current assetsInventories 3.47 247.06 Financial assetsOther financial assets 15.10 1,077.11 Total assets 3,085.70 220,103.22
EQUITY AND LIABILITIESEquityOther equity (947.65) (67,595.89)LIABILITIESNon-current liabilitiesDeferred tax liabilities (net) 681.37 48,602.34 Current liabilitiesFinancial liabilitiesOther financial liabilities 37.88 2,701.81 Total equity and liabilities (228.40) (16,291.74)
ParticularsAs at 1 January 2020
(USD Million)As at 1 January 2020
(INR Million) *Total assets transferred (a) 3,085.70 220,103.22 Total liabilities and equity transferred (b) (228.40) (16,291.74)Consideration to be paid (refer table below) (c) 2,985.47 212,953.56 Debit to Statement of profit and loss (a-b-c) 328.63 23,441.40
- -Consideration to be received in the form of:Particulars As at 1 January 2020
(USD Million)As at 1 January 2020
(INR Million) *Interest bearing loan 2,364.79 168,680.11 Deemed Investment 620.68 44,273.45 Total 2,985.47 212,953.56 * Date of transaction rate considered for conversion into INR
c) This is a non-cash transaction.
Any difference arising out of the above transfer will be debited or credited to the Statement of profit and loss of the Company.Accordingly, the below amount has been debited to Statement of profit and loss of the Company.
b) The details of assets and liabilities transferred to transferee Company, investment made, loan given pursuant to sale ofMozambique business and amounts transferred to Statement of profit and loss and other comprehensive income are as under:
a) ONGC Videsh transferred the Mozambique Business by way of a Business Transfer Agreement (BTA) including assignment of theten percent (10%) Participating Interest of ONGC Videsh and the rights and interests attributable thereto under the Joint OperationAgreement (“JOA”), as a going concern to ONGC VIDESH ROVUMA LIMITED (“OVRL”) a wholly owned subsidiary of OVLincorporated in India on 15th April, 2019 under the Companies Act, 2013. OVL has filed the scheme of transfer of business withMinister of Mineral Resources and Energy (MIREME), GOVERNMENT OF MOZAMBIQUE for which approval was received onAugust 2, 2019. Further, a shareholder resolution has been passed for the above mentioned transfer in the 54th Annual General Meeting of the membersof the Company held on 29th August, 2019. Board of directors have approved the said transaction in its 448th board meeting held on30th September, 2019 and transaction date is January 1, 2020.
d) The company's transfer of the Mozambique business to OVRL India is considered to be a business combination under commoncontrol as the company is a wholly owned subsidiary of ONGC Videsh. The company adopted pooling of interest method in respect ofthe acquisition of business combination under common control as prescribed in Appendix C to Ind AS 103 Business Combination ofentities under Common Control.
Annual Report 2019 - 20 214 of 373
ONGC VIDESH LIMITED (All amounts are `̀ in million unless otherwise stated)
53 Materiality adopted in respect of financial statements
54 Other Notes1
2
3
4
5
6
7
8
9
10
11
The company couldn't complete the physical asset and inventory verification in case of certain joint operations due to theimpact of global pandemic (Covid-19).
The Company has fully repaid the 3.25% USD 750 million 5 year Notes on its due date of redemption, i.e., July 15th 2019.
Previous period figures have been regrouped / reclassified, wherever necessary.
The company has awarded a contract to M/s DeGolyer & MacNaughton (D&M) for the audit of its Oil & Gas Reservesdisclosed in Note 46. The audit couldn't be completed due to the impact of global pandemic (Covid-19).
The company owns 50.125% of the building Deendayal Urja Bhawan consisting of total 10 floors and amenities. The parentcompany which was bearing the entire common cost has raised invoices for sharing the common cost for services, which hasbeen recognised as payable by the company. The company is evaluating its options in respect of the two floors presentlyoccupied by the parent company (ONGC) and consequently the future economic benefit is yet to be decided. Appropriateaccounting treatment will be carried out based upon the outcome of management decision.
The Company’s share in the assets, liabilities & expenses are accounted for on line by line basis with the similar items in thefinancial statements of the Company based on Joint Interest Billings (JIB) received from overseas operators. Majority of JIBsare audited however, in certain cases the assets, liabilities & expenses are accounted on the basis on Unaudited JIBs asdisclosed in note no 43.2. (refer policy 3.4)
Materiality has to be determined on a case to case basis depending on specific facts and circumstances relating to theinformation / event. In order to determine whether a particular event / information is material in nature, the following‘quantitative’ or ‘qualitative’ criteria(s) shall be applied:
(a) Quantitative criteria (i) Materiality shall become applicable to an event / information where the value involved or the impact exceeds a certainvalue defined and approved by the Board of the Company. Such value is defined based on revenue, profit & loss & net worthof the company; (ii) The above threshold shall be determined on the basis of audited standalone financial statements of previous auditedfinancial year. (b) Qualitative criteria Materiality shall become applicable to an event / information: (i) if the omission of which is likely to: - if in the opinion of the Board of Directors of the Company, the event / information is considered material. In circumstances where ‘quantitative’ test may not be applicable, ‘qualitative, test may be applied to determine materiality.
Exploratory wells in progress includes ₹ 1,307.03 millions in respect of Block 5A South Sudan where preparation forresumption of oil production activities is in progress. Oil production activities were under shutdown since December 2013 due to security situation in Block 5A South Sudan.
Government of India through “The Taxation Laws (Amendment) Act, 2019” has inserted Section 115BAA of the Income TaxAct, 1961, whereby a domestic company has an irrevocable option of exercising for a lower corporate tax rate along withconsequent forego of certain tax deductions and incentives, including accumulated MAT credit eligible for set-off insubsequent years. The company has still not exercised this option and continues to evaluate the benefit of exercising theoption for a lower corporate tax rate vis-à-vis the existing provisions. Pending exercising of the option, the companycontinues to recognize the taxes on income for the quarter and year ended March 31, 2020 as per the earlier provisions.
The other current assets includes ₹ 101.29 millions, which represents the impact of underlifting quantity by the companyduring the year and the same would be settled in kind. The Company has fully repaid the Non- convertible debentures (NCD) Series - II for ₹ 3,700.00 millions on its due date ofredemption, i.e., January 6, 2020.
ONGC Videsh is the operator in respect of block CPO-5, Colombia. The levies applicable on the non-operating partner aredischarged by way sale of crude oil. The company recognises in its book of accounts only its share of revenue and thestatutory levies.
Annual Report 2019 - 20 215 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
55 Approval of Financial Statements
The Standalone financial statements were approved by the board of directors on June 18, 2020
Sd/- Sd/- Sd/-(Rajni Kant) (Vivekanand) (Shashi Shanker)Company Secretary Director (Finance) Chairman
(DIN: 07566552) (DIN: 06447938)
For SPMR & Associates For Thakur, Vaidyanath Aiyar & Co.Chartered Accountants Chartered AccountantsFirm Regn No. 007578N Firm Regn No. 000038N
Sd/- Sd/-Place: New Delhi (Harish Kumar) (K K Upadhyay)Date: June 18, 2020 Partner (M No. 086315) Partner (M No. 096584)
As per our report of even date attached.
For and on behalf of the Board of Directors of ONGC Videsh Limited
Annual Report 2019 - 20 216 of 373
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4,55
6.06
10.0
0-
0.08
(1.5
0)-
(1.5
0)-
100%
16Im
peria
l Fra
c Se
rvic
es (C
ypru
s) L
imite
d13
.01.
2009
31-M
ar-2
0U
SD0.
1894
.30
95.6
91.
22-
(0.4
1)(1
.59)
-(1
.59)
-10
0%17
San
Agi
o In
vest
men
ts L
imite
d13
.01.
2009
31-M
ar-2
0U
SD0.
16(2
63.4
4)1,
466.
581,
729.
88-
6.07
(52.
64)
2.06
(54.
70)
-10
0%18
LLC
Sib
inte
rnef
t13
.01.
2009
31-M
ar-2
0U
SD0.
10(2
,016
.63)
0.13
2,01
6.67
-(3
70.4
3)(4
21.7
4)-
(421
.74)
-55
.9%
19LL
C A
llian
cene
ftega
z 13
.01.
2009
31-M
ar-2
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SD0.
05(1
1,43
4.50
)11
,078
.38
22,5
12.8
6-
4,14
0.43
(1,6
06.1
4)(0
.01)
(1,6
06.1
3)-
100%
20LL
C N
ord
Impe
rial
13.0
1.20
0931
-Mar
-20
USD
0.29
11,9
20.5
616
,162
.58
4,24
1.70
-2,
383.
32(3
07.7
8)-
(307
.78)
-10
0%21
LLC
Rus
Impe
rial G
roup
13.0
1.20
0931
-Mar
-20
USD
0.10
(1,2
63.5
4)37
2.05
1,63
5.49
-16
8.96
(75.
78)
-(7
5.78
)-
100%
22LL
C Im
peria
l Fra
c Se
rvic
es13
.01.
2009
31-M
ar-2
0U
SD0.
0132
7.05
377.
2050
.11
-51
7.68
136.
786.
1113
0.66
-10
0%23
Bea
s Rov
uma
Ener
gy M
ozam
biqu
e Lt
d.07
.01.
2014
31-M
ar-2
0U
SD55
,924
.40
(1,5
39.1
9)56
,759
.73
2,37
4.52
33.8
60.
24(5
.75)
-(5
.75)
-60
%24
ON
GC
Vid
esh
Rov
uma
Ltd.
, M
aurit
ius
24.0
3.20
1531
-Mar
-20
USD
0.15
0.01
0.16
--
-(0
.82)
-(0
.82)
-10
0%25
ON
GC
Vid
esh
Atla
ntic
Inc.
14
.08.
2014
31-M
ar-2
0U
SD15
3.98
(46.
98)
109.
742.
73-
-(6
3.91
)(8
.46)
(55.
45)
-10
0%26
ON
GC
Vid
esh
Sing
apor
e Pt
e. L
td.
15.0
4.20
1631
-Mar
-20
USD
37.7
4(1
17.3
4)2,
728.
462,
808.
0637
.74
-(3
0.47
)-
(30.
47)
-10
0%27
ON
GC
Vid
esh
Van
korn
eft P
te. L
td.
18.0
4.20
1631
-Mar
-20
USD
37.7
418
,862
.19
139,
202.
2812
0,30
2.35
112,
329.
02-
8,67
6.95
(43.
18)
8,63
3.76
-10
0%28
Indu
s Eas
t Med
iterr
anea
n Ex
plor
atio
n Lt
d.27
.02.
2018
31-M
ar-2
0U
SD3.
40(1
1.31
)1.
559.
45-
-(1
0.72
)-
(10.
72)
-10
0%29
ON
GC
Vid
esh
Rov
uma
Ltd.
, Ind
ia15
.04.
2019
31-M
ar-2
0IN
R10
.00
(1,0
40.3
6)22
9,53
2.44
230,
562.
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-(8
,016
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(109
.52)
(7,9
07.4
0)-
100%
Not
es:
Exch
ange
Rat
es:
1N
ame
of su
bsid
iarie
s whi
ch a
re y
et to
com
men
ce o
pera
tions
: Ind
us E
ast M
edite
rrane
an E
xplo
ratio
n Lt
d.2
Nam
e of
subs
idia
ries w
hich
is u
nder
win
ding
up:
ON
GC
Vid
esh
Rov
uma
Ltd.
, Mau
ritiu
s3
Exch
ange
Rat
esFo
r Bal
ance
shee
t ite
ms:
1 U
SD =
₹ 7
5.48
(Pr
ev Y
ear -
1 U
SD =
₹ 6
9.21
)Fo
r Pro
fit &
loss
item
: 1 U
SD =
₹ 7
0.91
50 (P
rev
Yea
r - 1
USD
= ₹
69.
9458
)4
Info
rmat
ion
to e
xten
t ava
iala
ble
5Th
e fig
ures
in th
e ta
ble
abov
e do
es n
ot in
clud
e el
imin
atio
ns o
f int
erco
mpa
ny tr
ansa
ctio
ns
Part
A: S
ubsi
diar
ies
Form
AO
C-1
(Pur
suan
t to
first
pro
viso
to su
b-se
ctio
n (3
) of s
ectio
n 12
9 re
ad w
ith r
ule
5 of
Com
pani
es (A
ccou
nts)
Rul
es, 2
014)
ON
GC
Vid
esh
Lim
ited
CIN
- U
7489
9DL
1965
GO
I004
343
Stat
emen
t con
tain
ing
salie
nt fe
atur
es o
f the
fina
ncia
l sta
tem
ent o
f sub
sidia
ries /
ass
ocia
te c
ompa
nies
/ jo
int v
entu
res f
or th
e ye
ar e
nded
Mar
ch 3
1, 2
020
(Info
rmat
ion
in re
spec
t of e
ach
subs
idia
ry to
be
pres
ente
d w
ith a
mou
nts i
n ₹
in m
illio
ns)
Annu
al R
epor
t 201
9 - 2
021
7 of
373
No.
Am
ount
of
Inve
stm
ent i
n A
ssoc
iate
or
Join
t Ven
ture
Ext
end
of
Hol
ding
(in
perc
enta
ge)
ii. N
ot
Con
side
red
in
Con
solid
atio
n
1O
NG
C M
ittal
Ene
rgy
Lim
ited
31-M
ar-1
926
.03.
2009
2499
0000
Sha
res
1,88
6.25
49.9
8%N
/A2
Petro
lera
Indo
vene
zola
na S
.A.
31-M
ar-2
04/
8/20
0840
,000
Com
mon
Sh
ares
of U
SD 4
.65
each
31,1
05.7
240
.00%
N/A
3So
uth-
East
Asia
Gas
Pip
elin
e C
ompa
ny
Lim
ited
30-S
ep-1
96/
25/2
010
1669
4 sh
ares
of U
SD
1 ea
ch
1,84
4.90
8.34
7%N
/A
4Ta
mba
B.V
.31
-Dec
-19
11/1
/200
616
20 sh
ares
of U
SD
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ach
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3.35
27.0
0%N
/A
5H
imal
aya
Ener
gy (S
yria
) B.V
.31
-Dec
-14
11/7
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645
000
shar
es o
f Eur
o 1
each
207.
7350
.00%
N/A
6Fa
lcon
Oil
& G
as B
V31
-Mar
-20
2/6/
2018
40 C
lass
A S
hare
s of
USD
1 e
ach
22,1
19.7
540
.00%
N/A
7Pe
tro C
arab
obo
S.A
.31
-Mar
-19
12.0
5.20
10 1
1264
00 sh
ares
of
10 B
oliv
ar e
ach
4,44
9.55
11.0
0%N
/A
8C
arab
obo
Inge
nier
ía y
Con
stru
ccio
nes,
S.A
.31
-Mar
-19
21.0
1.20
11 3
79 sh
ares
of 1
B
oliv
ar e
ach
0.32
37.9
0%N
/A
9M
ansa
rova
r Ene
rgy
Col
ombi
a Lt
d.31
-Mar
-19
20.0
9.20
06 6
000
Shar
es o
f USD
1
each
15
,945
.40
50.0
0%N
/A
10JS
C V
anko
rnef
t31
-Mar
-20
15%
Acq
uist
ion
- 31
.05.
2016
11%
Acq
uist
ion
- 28
.10.
2016
3092
871
Shar
es o
f 1
Rou
ble
each
112,
329.
0226
.00%
N/A
11SU
DD
Pet
role
um O
pera
ting
Com
pany
, 31
-Dec
-15
30.0
4.20
1224
1.25
shar
es o
f USD
1
each
0.00
24.1
25%
N/A
12M
oz L
NG
1 H
oldi
ng C
ompa
ny L
td.
31-D
ec-1
921
.04.
2019
700
,000
shar
es o
f U
SD 1
eac
h 67
.72
20.0
0%N
/A
Not
es:
1N
ame
of a
ssoc
iate
s / jo
int v
entu
res w
hich
are
yet
to c
omm
ence
ope
ratio
ns: N
il2
Nam
e of
ass
ocia
tes /
join
t ven
ture
s whi
ch h
ave
been
liqu
idat
ed o
r sol
d du
ring
the
year
: Nil
3Ex
chan
ge R
ates
For B
alan
ce sh
eet i
tem
s: 1
USD
= ₹
75.
48 (
Prev
Yea
r - 1
USD
= ₹
69.
21)
For P
rofit
& lo
ss it
em: 1
USD
= ₹
70.
9150
(Pre
v Y
ear -
1 U
SD =
₹ 6
9.94
58)
Info
rmat
ion
to e
xten
t ava
iala
ble
Sd/-
Sd/-
Sd/-
(Raj
ni K
ant)
(Viv
ekan
and)
(Sha
shi S
hank
er)
Com
pany
Sec
reta
ryD
irec
tor
(Fin
ance
)M
anag
ing
Dir
ecto
r(D
IN: 0
7566
552)
(DIN
: 064
4793
8)
As p
er o
ur r
epor
t of e
ven
date
att
ache
d
For
SPM
R &
Ass
ocia
tes
For
Tha
kur,
Vai
dyan
ath
Aiy
ar &
Co.
Cha
rter
ed A
ccou
ntan
tsC
hart
ered
Acc
ount
ants
Firm
Reg
n N
o. 0
0757
8NFi
rm R
egn
No.
000
038N
Sd/-
Sd/-
New
Del
hi(H
aris
h K
umar
)(K
K U
padh
yay)
Part
ner
(M N
o. 0
8631
5)Pa
rtne
r (M
No.
096
584)
Part
B: A
ssoc
iate
s and
Joi
nt V
entu
res
Stat
emen
t pur
suan
t to
Sect
ion
129
(3) o
f the
Com
pani
es A
ct, 2
013
rela
ted
to A
ssoc
iate
Com
pani
es a
nd J
oint
Ven
ture
sSl
. N
oN
ame
of A
ssoc
iate
s /
Join
t Ven
ture
s L
ates
t aud
ited
Bal
ance
She
et D
ate
Dat
e on
whi
ch
the
Ass
ocia
te o
f Jo
int V
entu
re
was
ass
ocia
ted
or a
cqui
red
Shar
es o
f Ass
ocia
te/J
oint
Ven
ture
s hel
d by
the
com
pany
on
the
year
end
Des
crip
tion
of h
ow th
ere
is
sign
ifica
nt in
fluen
ceR
easo
n w
hy th
e as
soci
ate
/ jo
int v
entu
re is
not
co
nsol
idat
ed
Net
wor
th a
ttri
buta
ble
to
Shar
ehol
ding
as p
er la
test
au
dite
d B
alan
ce S
heet
Prof
it or
Los
s for
the
year
i. C
onsi
dere
d in
C
onso
lidat
ion
Acc
ordi
ng to
shar
es h
eld
N/A
(1,9
81.1
6)-
Acc
ordi
ng to
shar
es h
eld
N/A
33,4
22.1
8(2
33.5
7)
Acc
ordi
ng to
shar
es h
eld
N/A
3,56
2.07
1,35
4.48
Acc
ordi
ng to
shar
es h
eld
N/A
4,60
7.79
986.
73
Acc
ordi
ng to
shar
es h
eld
N/A
285.
22(1
6.16
)
Acc
ordi
ng to
shar
es h
eld
N/A
22,1
19.7
51,
535.
21
Acc
ordi
ng to
shar
es h
eld
N/A
6,18
3.65
(3,3
31.1
7)
Acc
ordi
ng to
shar
es h
eld
N/A
0.32
-
Acc
ordi
ng to
shar
es h
eld
N/A
25,4
66.8
264
6.38
Acc
ordi
ng to
shar
es h
eld
N/A
59,9
23.5
513
,221
.60
-
Acc
ordi
ng to
shar
es h
eld
N/A
65.3
618
.77
June
18,
202
0
For
and
on
beha
lf of
the
Boa
rd o
f Dire
ctor
s of O
NG
C V
ides
h Li
mite
d
Acc
ordi
ng to
Inte
rest
hel
dN
/A-
Annu
al R
epor
t 201
9 - 2
021
8 of
373
Annual Report 2019 - 20 219 of 373
Annual Report 2019 - 20 220 of 373
Annual Report 2019 - 20 221 of 373
Annual Report 2019 - 20 222 of 373
Annual Report 2019 - 20 223 of 373
Annual Report 2019 - 20 224 of 373
Annual Report 2019 - 20 225 of 373
Annual Report 2019 - 20 226 of 373
Annual Report 2019 - 20 227 of 373
Annual Report 2019 - 20 228 of 373
Annual Report 2019 - 20 229 of 373
Annual Report 2019 - 20 230 of 373
Annual Report 2019 - 20 231 of 373
Annual Report 2019 - 20 232 of 373
Annual Report 2019 - 20 233 of 373
Annual Report 2019 - 20 234 of 373
Annual Report 2019 - 20 235 of 373
Annual Report 2019 - 20 236 of 373
Annual Report 2019 - 20 237 of 373
Annu
al R
epor
t 201
9 - 2
023
8 of
373
Consolidated Financial StatementsFor the year endedMarch 31, 2020
Annual Report 2019 - 20 239 of 373
"This pa
ge [is]
intent
ionally
left bl
ank."
Annual Report 2019 - 20 240 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Consolidated Balance Sheet as at March 31, 2020
Particulars Note No. As at March 31, 2020 As at March 31, 2019
I. ASSETS (1) Non-current assets
a) Property, plant and equipment(i) Oil and gas assets 5 314,537.08 321,284.01 (ii) Other property, plant and equipment 6 11,809.75 15,066.10
b) Right-of-use assets 7 7,900.57 - c) Capital work in progress
(i) Oil and gas assets 81) Development wells in progress 6,679.02 3,876.36 2) Oil and gas facilities in progress 63,454.41 34,810.52
(ii) Others 100.70 16.32 d) Goodwill 9 133,140.70 131,657.73 e) Other Intangible assets 10 222.75 327.16 f) Intangible assets under development 11
(i) Exploratory wells in progress 44,818.20 35,553.34 (ii) Acquisition cost 171,835.66 160,555.96
g) Financial assets(i) Investments 12 222,984.52 250,164.88 (ii) Trade receivables 13 23,740.97 20,572.16 (iii) Loans 14 5,062.33 5,656.87 (iv) Deposits for site restoration fund 15 1,313.83 958.21 (v) Finance lease receivables 16 - - (vi) Other financial assets 17 36,420.74 33,762.24
h) Non-current tax assets (net) 18 1,658.39 6,579.73 i) Deferred tax assets (net) 28 14,427.86 17,310.58 j) Other non-current assets 19 20,034.92 15,896.12 Total non-current assets 1,080,142.40 1,054,048.29
(2) Current assets(a) Inventories 20 9,345.22 10,953.93 (b) Financial assets
(i) Trade receivables 13 8,068.63 13,635.29 (ii) Cash and cash equivalents 21 40,790.25 30,379.10 (iii) Loans 14 2,471.63 2,267.25 (iv) Other financial assets 17 47,953.52 17,770.02
(c) Other current assets 19 3,303.27 3,101.04 Total current assets 111,932.52 78,106.63 Total assets 1,192,074.92 1,132,154.92
II. EQUITY AND LIABILITIES (1) Equity
(a) Equity share capital 22 150,000.00 150,000.00 (b) Other equity 23 348,807.10 337,541.94 Equity attributable to owners of the company 498,807.10 487,541.94 Non-controlling interests 24 16,879.30 15,477.65 Total equity 515,686.40 503,019.59
Annual Report 2019 - 20 241 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
LIABILITIES (2) Non-current liabilities
(a) Financial liabilities(i) Borrowings 25 365,876.51 361,044.23 (ii) Lease liability 7 5,329.57 5,670.17 (iii) Other financial liabilities 26 6,330.69 8,100.24
(b) Provisions 27 49,927.07 40,845.18 (c) Deferred tax liabilities (net) 28 138,226.72 111,091.03 (d) Other non-current liabilities 30 204.90 142.30 Total non-current liabilities 565,895.46 526,893.15
(3) Current liabilities(a) Financial liabilities
(i) Borrowings 25 57,757.71 55,274.39 (ii) Trade payables 29
a) Total outstanding dues of micro enterprises and small enterprises - -
b) Total outstanding dues of creditors other than micro enterprises and small enterprises 24,850.29 23,637.68
(iii) Lease liability 7 1,003.27 982.28 (iv) Other financial liabilities 26 16,677.44 10,549.51
(b) Other current liabilities 30 5,358.92 6,010.36 (c) Provisions 27 2,762.21 2,546.69 (d) Current tax liabilities (net) 18 2,083.22 3,241.27 Total current liabilities 110,493.06 102,242.18 Total liabilities 676,388.52 629,135.33 Total equity and liabilities 1,192,074.92 1,132,154.92
See accompanying notes to the consolidated financial statements 1-59
Sd/- Sd/- Sd/-(Rajni Kant) (Vivekanand) (Shashi Shanker)Company Secretary Director (Finance) Chairman
(DIN: 07566552) (DIN: 06447938)
As per our report of even date attached.
For SPMR & Associates For Thakur, Vaidyanath Aiyar & Co.Chartered Accountants Chartered AccountantsFirm Regn No. 007578N Firm Regn No. 000038N
Sd/- Sd/-Place: New Delhi (Harish Kumar) (K K Upadhyay)Date: June 18, 2020 Partner (M No. 086315) Partner (M No. 096584)
For and on behalf of the Board of Directors of ONGC Videsh Limited
Annual Report 2019 - 20 242 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Consolidated Statement of Profit and Loss for the year ended March 31, 2020
Particulars Note No. For the year ended March 31, 2020
For the year ended March 31, 2019
I Revenue from operations 31 155,383.07 146,319.79II Other income 32a 6,180.47 4,601.60
Income from trading activities 32b 88.14 16.39III Share of profit of equity accounted investees, net of tax 32c 14,182.29 28,025.99IV Total income (I+II+III) 175,833.97 178,963.77
V EXPENSESChanges in inventories of finished goods 33 743.29 (70.88)Decrease / (increase) due to overlift / underlift quantity (124.93) (643.29)Production, transportation, selling and distribution expenditure 34 47,774.76 45,104.47
Exploration costs written off(a) Survey costs 2,136.10 1,093.11(b) Exploratory well costs 953.63 3,506.83
Depreciation, depletion & amortisation 35 35,885.35 35,612.39Finance costs 36 18,699.50 16,350.90Provisions, Write off and Impairment 37 698.81 10,934.05Other expenses 38 1,047.90 (1,176.67)Total expenses (V) 107,814.41 110,710.91
VI Profit before exceptional items and tax (IV-V) 68,019.56 68,252.86VII Exceptional (income) / expense 39 31,265.00 15,762.16
VIII Profit/(loss) before tax (VI-VII) 36,754.56 52,490.70
IX Tax expense:(a) Current tax relating to: 40
- current year 20,428.15 18,860.70- earlier years 3.01 (721.17)
(b) Deferred tax 11,971.48 17,554.49Total tax expense (IX) 32,402.64 35,694.02
X Profit/(Loss) for the year (VIII-IX) 4,351.92 16,796.68XI Other comprehensive income 41
(a) Items that will not be reclassified to profit or loss(i) Remeasurement of the defined benefit obligations 72.97 7.03
- Income tax relating to above - -(b) Items that will be reclassified to profit or loss
(i) Exchange differences in translating the financial`statements of foreign operations
16,493.31 13,779.95
- Income tax relating to above (5,763.42) (4,815.26)Total other comprehensive income (XI) 10,802.86 8,971.72
XII Total comprehensive income/ (loss) for the year (X+XI) 15,154.78 25,768.40
Annual Report 2019 - 20 243 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Profit/(loss) for the year attributable to - Owners of the Company 4,540.16 16,822.78- Non-controlling interests (188.24) (26.10)
4,351.92 16,796.68
Other comprehensive income/(loss) for the year attributable to - Owners of the Company 10,802.86 8,971.72- Non-controlling interests - -
10,802.86 8,971.72
Total comprehensive income/(loss) for the year attributable to - Owners of the Company 15,343.02 25,794.50- Non-controlling interests (188.24) (26.10)
15,154.78 25,768.40XIII Earnings per equity share: (face value of `100 each) 42
Basic (`) 3.03 11.22Diluted (`) 3.03 11.22
See accompanying notes to the consolidated financial statements 1-59
Sd/- Sd/- Sd/- (Rajni Kant) (Vivekanand) (Shashi Shanker)Company Secretary Director (Finance) Chairman
(DIN: 07566552) (DIN: 06447938)
For SPMR & Associates For Thakur, Vaidyanath Aiyar & Co.Chartered Accountants Chartered AccountantsFirm Regn No. 007578N Firm Regn No. 000038N
Sd/- Sd/-Place: New Delhi (Harish Kumar) (K K Upadhyay)Date: June 18, 2020 Partner (M No. 086315) Partner (M No. 096584)
As per our report of even date attached.
For and on behalf of the Board of Directors of ONGC Videsh Limited
Annual Report 2019 - 20 244 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Consolidated Statement of Cash Flows for the year ended March 31, 2020
Particulars
i) CASH FLOWS FROM OPERATING ACTIVITIES: Net Profit after tax 4,351.92 16,796.68 Adjustments For: - Share of profit of equity accounted investees (14,182.29) (28,025.99) - Interest income (4,009.73) (3,022.34) - Dividend Income (164.01) (297.13) - Exploratory Well Costs Written off 953.63 3,506.83 - Depreciation, Depletion, Amortisation and Impairment 35,885.35 35,612.39 - Finance Cost 18,699.50 16,350.90 - Other provisions and write offs 698.81 10,934.05 - Unrealized Foreign Exchange Loss/(Gain) 1,047.90 (1,176.67) - Exceptional Items 31,265.00 15,762.16 - Income tax expense 32,402.64 35,694.02 - Remeasurement of Defined benefit plans 72.97 102,669.77 7.03 85,345.25 Operating Profit before Working Capital Changes 107,021.69 102,141.93
Adjustments for - Receivables 4,944.44 (5,421.32) - Loans and advances 17.85 (18.89) - Other assets (29,355.09) 10,365.46 - Inventories 1,664.47 226.10 - Trade payable and other liabilities 2,045.56 (20,682.77) 1,316.63 6,467.98 Cash generated from Operations 86,338.92 108,609.91 Income Taxes Paid (Net of tax refund) (15,186.86) (19,054.94) Net cash generated by operating activities “A” 71,152.06 89,554.97
ii) CASH FLOWS FROM INVESTING ACTIVITIES: Payments for Property, Plant and Equipment (including Application software and capital work in progress)
(35,667.72) (20,495.58)
Proceeds from disposal of Property, Plant and Equipment (including Application software and capital work in progress)
1.44 115.68
Exploratory and Development Drilling (23,118.56) (17,514.95) Investment in mutual funds (2,140.38) (2,246.15) Investment in Joint ventures/Associates (14.18) (1,117.73) Loan to Joint ventures/Associates 1,031.56 (1,599.91) Deposit in Site Restoration fund (252.55) (184.46) Dividends received 37,479.28 45,134.10 Interest received 2,589.13 1,626.73 Net cash (used in)/generated by Investing Activities “B” (20,091.98) 3,717.73
iii) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of long term/short term borrowings inculding lease liabilities (net)
(30,822.74) (62,343.98)
Capital contribution from minority shareholders 3,866.86 1,040.13 Dividends paid on equity shares (5,100.00) (2,913.19) Tax paid on Dividend (1,048.32) (594.28) Interest paid (10,937.40) (13,965.69) Net Cash Used in Financing Activities “C” (44,041.60) (78,777.01) Net increase / (decrease) in cash and cash equivalents (A+B+C)
7,018.48 14,495.69
Cash and cash equivalents at the beginning of the year 30,379.10 13,882.49 Effect of exchange difference during the period 3,392.67 2,000.92 Cash and cash equivalents at the end of the year 40,790.25 30,379.10
For the year ended March 31, 2020
For the year ended March 31, 2019
Annual Report 2019 - 20 245 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Reconciliation of liabilities arising from financing activities:
Borrowings (including lease liabilities) 422,971.07 (29,256.70) 36,252.69 429,967.06Other financial liabilities - Interest accrued 4,477.93 (10,937.40) 10,557.57 4,098.10Other financial liabilities - Net Derivative Contracts 1,698.35 (1,566.04) 1,618.35 1,750.66
Sd/- Sd/- Sd/-(Rajni Kant) (Vivekanand) (Shashi Shanker)Company Secretary Director (Finance) Chairman
(DIN: 07566552) (DIN: 06447938)
For SPMR & Associates For Thakur, Vaidyanath Aiyar & Co.Chartered Accountants Chartered AccountantsFirm Regn No. 007578N Firm Regn No. 000038N
Sd/- Sd/-Place: Delhi (Harish Kumar) (K K Upadhyay)Date: June 18, 2020 Partner (M No. 086315) Partner (M No. 096584)
Balances with bank includes amount held by overseas branches in Libya which are restricted for use as at 31 March 2020 ₹ 10.25 Million (as at March 31,2019 ₹ 9.40 million).
As per our report of even date attached.
Particulars As at March 31, 2019
Cash flows Non Cash Charges
As at March 31, 2020
For and on behalf of the Board of Directors of ONGC Videsh Limited
Annual Report 2019 - 20 246 of 373
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Annu
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9 - 2
024
7 of
373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Notes to the Consolidated financial statements for the year ended March 31, 2020
1
2.0 Standards issued but not yet effective
3
3.1
3.2
Significant accounting policies
Statement of compliance
The consolidated financial statements have been prepared in accordance with Ind AS notified under the Companies (Indian AccountingStandards) Rules, 2015 (as amended) and Guidance Note on Accounting for Oil and Gas Producing Activities (Ind AS) issued by the Institute ofChartered Accountants of India.
Corporate Information
ONGC Videsh Limited (‘ONGC Videsh’ or ‘the Company’) is a public limited company incorporated in India (with a CIN:U74899DL1965GOI004343) having its registered office at Deendayal Urja Bhawan, Tower B, Plot No. 5A-5B, Nelson Mandela Marg, VasantKunj, New Delhi – 110070. ONGC Videsh is a wholly owned subsidiary and overseas arm of Oil and Natural Gas Corporation Limited(‘ONGC’).
The Company and its subsidiaries (collectively referred as “the Group”), joint ventures and associates are mainly engaged in prospecting for andacquisition of oil and gas acreages outside India for exploration, development and production of crude oil and natural gas.
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards. There is no such notification whichwould have been made applicable from April 1, 2020.
The functional currency of the Company is United States Dollar (‘USD’) (Refer note 4.1(a)). The consolidated financial statements are presentedin Indian Rupees (‘₹’) (Refer note 3.22) and all values are rounded off to the nearest two decimal million except otherwise stated.
Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants atthe measurement date under current market conditions.
The group categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed intheir measurement which are described as follows:
Basis of preparation and presentation
The consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured atfair values at the end of each reporting period, as explained in the accounting policies below.
The consolidated financial statements, except for cash flow information are prepared using the accrual basis of accounting.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
As the operating cycle cannot be identified in normal course due to the special nature of industry, the same has been assumed to have duration of12 months. Accordingly, all assets and liabilities have been classified as current or non-current as per the Company’s operating cycle and othercriteria set out in Ind AS-1 ‘Presentation of Financial Statements’ and Schedule III to the Companies Act, 2013.
Accounting policies have been consistently applied except where a newly issued accounting standard is intially adopted or a revision to anexisting accounting standard requires a change in the accounting policy hithereto in use.
Annual Report 2019 - 20 248 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
(a)(b)
(c)
3.3 Basis of consolidation
S. No. Name of the Subsidiaries Country of Incorporation
As at March 31, 2020
As at March 31, 2019
Class A : 100% Class A : 100%Class B : 100% Class B : 100%
1.1(i) ONGC Campos Ltda. Brazil 100% 100%1.1(ii) ONGC Nile Ganga (San Cristobal) B.V. The Netherlands 100% 100%
1.1(iii) ONGC Caspian E&P B.V. liquidated w.e.f July 31, 2019 The Netherlands N.A. 100%
1.2 ONGC Nile Ganga B.V. The Netherlands Class C : 55% Class C : 55% 2 ONGC Narmada Limited Nigeria 100% 100%3 ONGC Amazon Alaknanda Limited Bermuda 100% 100%4 Imperial Energy Limited Cyprus 100% 100%4 (i) Imperial Energy Tomsk Limited Cyprus 100% 100%4 (ii) Imperial Energy (Cyprus) Limited Cyprus 100% 100%4 (iii) Imperial Energy Nord Limited Cyprus 100% 100%4 (iv) Biancus Holdings Limited Cyprus 100% 100%4 (v) Redcliffe Holdings Limited Cyprus 100% 100%4 (vi) Imperial Frac Services (Cyprus) Limited Cyprus 100% 100%4 (vii) San Agio Investments Limited Cyprus 100% 100%4 (viii) LLC Sibinterneft Russia 55.90% 55.90%4 (ix) LLC Allianceneftegaz Russia 100% 100%4 (x) LLC Nord Imperial Russia 100% 100%4 (xi) LLC Rus Imperial Group Russia 100% 100%4(xii) LLC Imperial Frac Services Russia 100% 100%5 Carabobo One AB Sweden 100% 100%5 (i) Petro Carabobo Ganga B.V. The Netherlands 100% 100%6 ONGC (BTC) Limited Cayman Islands 100% 100%7 Beas Rovuma Energy Mozambique Ltd. Mauritius 60% 60%
8 ONGC Videsh Rovuma Ltd. (OVRL) (Under winding up) Mauritius 100% 100%
9 ONGC Videsh Atlantic Inc. (OVAI) Texas 100% 100%10 ONGC Videsh Singapore Pte Ltd. Singapore 100% 100%10(i) ONGC Videsh Vankorneft Pte Ltd. Singapore 100% 100%11 Indus East Mediterranean Exploration Ltd. Israel 100% 100%
12 ONGC Videsh Rovuma Ltd. (OVRL India), incorporated on April 15, 2019 India 100% N.A.
Subsidiaries are entities controlled by the Company. The Company controls an entity when it is exposed, or has rights to variable returns from itsinvolvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Subsidiariesare consolidated from the date of their acquisition, being the date on which the Company obtains control and continue to be consolidated until thedate that such control ceases.
The consolidated financial statements include the financial statements of following subsidiaries (held directly or through Company’ssubsidiaries):
Proportion of ownership interest
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.Level 2 inputs are inputs that are observable, either directly or indirectly, other than quoted prices included within level 1 for the assetor liability.Level 3 inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data orGroup’s assumptions about pricing by market participants.
The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries (collectively referred as “theGroup”). The Group has investments in joint ventures and associates which are accounted using equity method in these consolidated financialstatements. Refer note 3.7 for the accounting policy of investment in joint ventures and associate in the consolidated financial statements.
1.1 ONGC Nile Ganga B.V. The Netherlands
Annual Report 2019 - 20 249 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
3.4 Business combinations
-
-
Acquisitions of businesses are accounted for using the acquisition method except business combination under common control. Theconsideration transferred in a business combination is measured at fair value which is calculated as the sum of the acquisition date fair values ofthe assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by theGroup in exchange of control of the acquiree. Acquisition related costs are generally recognised in consolidated statement of profit and loss asincurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value, except that:
deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognised and measured inaccordance with Ind AS 12 ‘Income Taxes’ and Ind AS 19 ‘Employee Benefits’ respectively;
Assets (or disposal groups) that are classified as held for sale in accordance with Ind AS 105 ‘Non-current Assets Held for Sale andDiscontinued Operations’ are measured in accordance with that Standard.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, andthe fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition date amounts of theidentifiable assets acquired and the liabilities assumed.
In case of a bargain purchase, before recognising a gain in respect thereof, the Group determines whether there exists clear evidence of theunderlying reasons for classifying the business combination as a bargain purchase. Thereafter, the Group reassesses whether it has correctlyidentified all of the assets acquired and all of the liabilities assumed and recognises any additional assets or liabilities that are identified in thatreassessment. The Group then reviews the procedures used to measure the amounts that Ind AS requires for the purposes of calculating thebargain purchase. If the gain remains after this reassessment and review, the Group recognises it in other comprehensive income and accumulatesthe same in equity as capital reserve. This gain is attributed to the acquirer. If there does not exist clear evidence of the underlying reasons forclassifying the business combination as a bargain purchase, the Group recognises the gain, after reassessing and reviewing (as described above),directly in equity as capital reserve.
The consolidated financial statements have been prepared by combining the financial statements of the Company and its subsidiaries on a line byline basis by adding together the book values of like items of assets, liabilities, equity, income and expenses after eliminating in full intra groupassets, liabilities, equity, income and expenses relating to intra-group transactions and unrealized profits. Unrealized losses are also eliminatedunless the transaction provides evidence of an impairment of the asset transferred.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controllinginterests. Total comprehensive income is attributed to the owners of the Company and to the non-controlling interests even if this results in thenon-controlling interests having a deficit balance.
Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted foras equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in theirrelative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value ofthe consideration paid or received is recognised directly in equity and attributed to the owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised in the consolidated statement of profit and loss and is calculated as thedifference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previouscarrying amount of the assets (including goodwill) and liabilities of the subsidiary and any non-controlling interests. All amounts previouslyrecognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the relatedassets or liabilities of the subsidiary (i.e. reclassified to the consolidated statement of profit and loss or transferred to another category of equityas specified/permitted by applicable Ind AS). The fair value of any investment retained in the former subsidiary at the date when control is lost isregarded as the fair value on initial recognition for subsequent accounting under Ind AS 109, or, when applicable, the cost on initial recognitionof an investment in an associate or a joint venture.
The consolidated financial statements are prepared using uniform accounting policies consistently for like transactions and other events in similar circumstances and are presented to the extent possible, in the same manner as the Company’s standalone financial statements except otherwisestated. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with theGroup’s accounting policies.
Annual Report 2019 - 20 250 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Business Combination under Common control
3.5 Non-controlling interests
3.6 Goodwill
When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent considerationarrangement, the contingent consideration is measured at its acquisition date fair value and included as part of the consideration transferred in abusiness combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjustedretrospectively, with corresponding adjustments against goodwill or capital reserve, as the case may be. Measurement period adjustments areadjustments that arise from additional information obtained by the Group during the ‘measurement period’ about facts and circumstances thatexisted at the acquisition date. Measurement period does not exceed one year from the acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustmentsdepends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequentreporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability isremeasured at fair value at subsequent reporting dates with the corresponding gain or loss being recognised in the consolidated statement ofprofit and loss.
When a business combination is achieved in stages, the Group’s previously held equity interest in the acquiree is remeasured to its acquisitiondate fair value and the resulting gain or loss, if any, is recognised in the consolidated statement of profit and loss. Amounts arising from interestsin the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to theconsolidated statement of profit and loss where such treatment would be appropriate if that interest were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Groupreports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during themeasurement period recognising additional assets or liabilities (if any) to reflect new information obtained about facts and circumstances thatexisted at the acquisition date that, if known, would have affected the amounts recognised at that date.
Non-controlling interests represent the proportion of income, other comprehensive income and net assets in subsidiaries that is not attributable tothe Company's shareholders.
Non-controlling interests are initially measured at the non-controlling interests’ proportionate share of the recognised amounts of the acquiree’sidentifiable net assets. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of the interest at initialrecognition plus the non-controlling interests’ share of subsequent changes in equity.
A business combination involving entities or businesses under common control is a business combination in which all of the combining entitiesor businesses are ultimately controlled by the same party or parties both before and after the business combination and the control is nottransitory. The transactions between entities under common control are specifically covered by Appendix C to Ind AS 103 and are accounted forusing the pooling of-interest method as follows:
• The assets and liabilities of the combining entities are reflected at the carrying amounts. • No adjustments are made to reflect fair values, or recognize new assets or liabilities. Adjustments are made to harmonize significant accountingpolicies. • The financial information in the financial statements in respect of prior periods is restated as if the business combination has occurred from thebeginning of the preceding period in the financial statements or from the date when the combining entities or businesses first came undercommon control, irrespective of the actual date of the combination.
The balance of the retained earnings appearing in the financial statements of the transferor is aggregated with the corresponding balanceappearing in the financial statements of the transferee. The identity of the reserves are preserved and the reserves of the transferor become thereserves of the transferee. The difference, if any, between the amounts recorded as share capital issued plus any additional consideration in theform of cash or other assets and the amount of share capital of the transferor is transferred to capital reserve and is presented separately fromother capital reserves.
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulatedimpairment losses, if any.
For the purposes of impairment testing, goodwill is allocated to each of the Group's cash generating units (or groups of cash generating units)that is expected to benefit from the synergies of the combination.
Annual Report 2019 - 20 251 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
3.7 Investments in joint ventures and associates
The results and assets and liabilities of associates or joint ventures are incorporated in the consolidated financial statements using the equitymethod of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for inaccordance with Ind AS 105 ‘Non-current Assets Held for Sale and Discontinued Operations’. Under the equity method, an investment in anassociate or a joint venture is initially recognised in the consolidated balance sheet at cost and adjusted thereafter to recognise the Group's shareof the profit or loss and other comprehensive income of the associate or joint venture. Distributions received from an associate or a joint venturereduces the carrying amount of the investment. When the Group's share of losses of an associate or a joint venture exceeds the Group's interest inthat associate or joint venture (which includes any long term interests that, in substance, form part of the Group's net investment in the associateor joint venture), the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Grouphas incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.
A cash generating unit (CGU) to which goodwill has been allocated is tested for impairment annually, or more frequently when there is anindication that the CGU may be impaired. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocatedfirst to reduce the carrying amount of any goodwill allocated to the CGU and then to the other assets of the unit pro rata based on the carryingamount of each asset in the unit. Any impairment loss for goodwill is recognised directly in the consolidated statement of profit and loss. Animpairment loss recognised for goodwill is not reversed in subsequent periods.
On disposal of the relevant CGU, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial andoperating policy decisions of the investee but is not control or joint control over those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the jointarrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevantactivities require unanimous consent of the parties sharing control.
If an associate or a joint venture uses accounting policies other than those of the Group accounting policies for like transactions and events insimilar circumstances, adjustments are made to make the associate’s or joint venture’s financial statements confirm to the Group’s accountingpolicies before applying the equity method, unless, in case of an associate where it is impracticable do so.
An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee becomes anassociate or a joint venture. On acquisition of the investment in an associate or a joint venture, any excess of the cost of the investment over theGroup's share of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within thecarrying amount of the investment. Any excess of the Group's share of the net fair value of the identifiable assets and liabilities over the cost ofthe investment, after reassessment, is recognised directly in equity as capital reserve in the period in which the investment is acquired.
After application of the equity method of accounting, the Group determines whether there is any objective evidence of impairment as a result ofone or more events that occurred after the initial recognition of the net investment in an associate or a joint venture and that event (or events) hasan impact on the estimated future cash flows from the net investment that can be reliably estimated. If there exists such an objective evidence ofimpairment, then Group recognise impairment loss with respect to the Group’s investment in an associate or a joint venture. When necessary, theentire carrying amount of the investment (including goodwill) is tested for impairment in accordance with Ind AS 36 ‘Impairment of Assets’ as asingle asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount, Anyimpairment loss recognised forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised inaccordance with Ind AS 36 to the extent that the recoverable amount of the investment subsequently increases.
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3.8
3.9
In case of joint operations, the long term employee benefits are recognised in accordance with the laws of the their respective jurisdiction.
The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an investment in ajoint venture becomes an investment in an associate. There is no remeasurement to fair value upon such changes in ownership interests.
The hydrocarbon reserves in such areas are taken in proportion to the participating interest of the Group.
Gain or loss on sale of interest in a joint operation, is recognized in the consolidated statement of profit and loss, except that no gain isrecognized at the time of such sale if substantial uncertainty exists about the recovery of the costs applicable to the retained interest or if theGroup has substantial obligation for future performance.
The Group discontinues the use of the equity method from the date when the investment ceases to be an associate or a joint venture, or when theinvestment is classified as held for sale. When the Group retains an interest in the former associate or joint venture and the retained interest is afinancial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initialrecognition in accordance with Ind AS 109 ‘Financial Instruments’. The difference between the carrying amount of the associate or joint ventureat the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest inthe associate or joint venture is included in the determination of the gain or loss on disposal of the associate or joint venture. In addition, theGroup accounts for all amounts previously recognised in other comprehensive income in relation to that associate or joint venture on the samebasis as would be required if that associate or joint venture had directly disposed of the related assets or liabilities. Therefore, if a gain or losspreviously recognised in other comprehensive income by that associate or joint venture would be reclassified to the consolidated statement ofprofit and loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to the consolidated statementof profit and loss (as a reclassification adjustment) when the equity method is discontinued.
Non-current assets held for sale
Non-current assets or disposal groups classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell.
When the Group reduces its ownership interest in an associate or a joint venture but the Group continues to use the equity method, the Groupreclassifies to the consolidated statement of profit and loss the proportion of the gain or loss that had previously been recognised in othercomprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to the consolidated statement ofprofit and loss on the disposal of the related assets or liabilities.
When a group entity transacts with an associate or a joint venture of the Group, profits and losses resulting from the transactions with theassociate or joint venture are recognised in the Group’s consolidated financial statements only to the extent of interests in the associate or jointventure that are not related to the Group.
Interests in joint operations
A joint operation is a joint arrangement whereby the parties that have the joint control of the arrangement have rights to the assets, andobligations for the liabilities relating to the arrangement.
The Group has overseas Joint Operations with various body corporates and/or host country government for exploration, development andproduction activities.
The group’s share, as per arrangement, in the assets and liabilities along with attributable income and expenditure of the Joint Operations ismerged on line by line basis with the similar items in the conslidated financial statements of the group, along with the group’s income from saleof its share of output and any liabilities and expenses that the group has incurred in relation to the joint operations except in case of leases,depreciation, Overlift / underlift, depletion, survey, dry wells, decommissioning liability, impairment and side-tracking in accordance with theaccounting policies of the group.
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3.10 Property, plant and equipment (other than Oil and gas assets)
Depreciation
Description YearsBuilding 3 to 60Plant and equipment 3 to 40Furniture and Fixtures 3 to 10Vehicles 5 to 20Office Equipment 3 to 15
Property, plant and equipment (PPE) in the course of construction for production, supply or administrative purposes are carried at cost, less anyrecognised impairment loss. The cost of an asset comprises its purchase price or its construction cost (net of applicable tax credits), any costdirectly attributable to bring the asset into the location and condition necessary for it to be capable of operating in the manner intended by theManagement and decommissioning cost as per note 3.17. It includes professional fees and, for qualifying assets, borrowing costs capitalised inaccordance with the group’s accounting policy. Such properties are classified to the appropriate categories of PPE when completed and ready forintended use. Parts of an item of PPE having different useful lives and significant value and subsequent expenditure on Property, plant andequipment arising on account of capital improvement or other factors are accounted for as separate components. PP&E which is not ready for itsintended use is classified as capital work-in-progress.
Depreciation of these PPE commences when the assets are ready for their intended use.
Depreciation is provided on the cost of PPE (other than land, oil and gas assets and properties under construction) less their residual values,using the written down value method over the useful life of PPE as stated in Schedule II of the Companies Act, 2013 or based on the technicalassessment by the Company. The management believes that the useful lives as given below best represent the period over which managementexpects to use these assets. In case of PPE pertaining to blocks where the license period is less than the useful life of PPE, the group writes offthe PPE in the financial year in which the license is expired or the block is surrendered, if no future economic benefits from the PPE areexpected. Estimated useful lives of these assets are as under:
The estimated useful lives, residual values and depreciation method are reviewed on an annual basis and if necessary, changes in estimates areaccounted for prospectively.
Depreciation on additions/deletions to PPE (other than of oil and gas assets) during the year is provided for on a pro-rata basis with reference tothe date of additions/deletions except low value items not exceeding USD 100* which are fully depreciated at the time of addition.
PPE other than oil & gas assets held for use in the production or supply of goods or services, or for administrative purposes, are stated in thegroup's balance sheet at cost less accumulated depreciation and impairment losses, if any. Freehold land is not depreciated.
Non-current assets or disposal groups are classified as held for sale if their carrying amounts will be recovered principally through a saletransaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset or disposalgroup is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets.Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from thedate of classification as held for sale, and actions required to complete the plan of sale should indicate that it is unlikely that significant changesto the plan will be made or that the plan will be withdrawn.
Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
*USD 100 = ₹ 7,548.00 as on March 31, 2020
Depreciation on subsequent expenditure on PPE (other than of oil and gas assets) arising on account of capital improvement or other factors isprovided for prospectively over the remaining useful life.
Depreciation on refurbished/revamped PPE (other than of oil and gas assets) which are capitalized separately is provided for over the reassesseduseful life.
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3.11
(i) Intangible assets acquired separately
(ii) Intangible assets under development - Exploratory wells in progress
3.12 Impairment of tangible and intangible assets other than goodwill
Intangible assets
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulatedimpairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives not exceeding five years fromthe date of capitalisation. The estimated useful life is reviewed at the end of each reporting period and the effect of any changes inestimate being accounted for prospectively
Intangible assets are derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or lossesarising from derecognition of an intangible asset are determined as the difference between the net disposal proceeds and the carryingamount of the asset and recognised in the statement of profit and loss when the asset is derecognised.
All exploration and evaluation costs incurred in drilling and equipping exploratory and appraisal wells are initially capitalized asIntangible assets under development - Exploratory wells in progress till the time these are either transferred to oil and gas assets as pernote 3.15 on completion or expensed as and when determined to be dry or of no further use, as the case may be.
Cost of drilling exploratory type stratigraphic test wells are initially capitalized as Intangible assets under development - Exploratorywells in progress till the time these are either transferred to oil and gas assets as per note 3.15 or expensed when determined to be dryor the field / project is surrendered.
Costs of exploratory wells are not carried over unless it could be reasonably demonstrated that there are indications of sufficientquantity of reserves and sufficient progress has been made in assessing the reserves and the economic and operating viability of theproject. All such carried over costs are subject to review for impairment as per the policy of the Group.
Depreciation on PPE (other than oil and gas assets) including support equipment and facilities used for exploratory/ development drilling isinitially capitalised as part of drilling cost and expensed / depleted as per note 3.15. Depreciation on equipment/ assets deployed for surveyactivities is charged to the statement of profit and loss.
An item of PPE is de-recognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset.Any gain or loss arising on the disposal or retirement of an item of PPE is determined as the difference between the net sales proceeds and thecarrying amount of the asset and is recognised in the statement of profit and loss.
The Group reviews the carrying amount of its tangible (Oil and gas assets, Development wells in progress (DWIP), and Property, plant andequipment (including Capital Works in Progress) and intangible assets of a ‘Cash Generating Unit’ (CGU) at the end of each reporting period todetermine whether there is any indication that these assets have suffered an impairment loss. If any such indication exists, the recoverableamount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate therecoverable amount of an individual asset, the Group estimates the recoverable amount of the cash generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flowsare discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and therisks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset(or cash generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the statement of profit and loss.
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3.13 Exploration and Evaluation, Development and Production costs
(i) Pre-acquisition cost
(ii) Acquisition cost
Exploration and development stage
Production stage
(iii) Survey cost
(iv) Oil and gas asset under development - Development wells in progress
(v) Production costs
3.14 Impairment of acquisition costs relating to participating rights
Acquisition costs cover all costs incurred to purchase, lease or otherwise acquire a property or mineral right proved or unproved incase of acquiring participating interest in an oil and gas assets and are accounted as follows:-
Acquisition cost relating to projects under exploration or development are initially accounted as Intangible Assets under developmentor Capital work in progress - Oil and gas assets respectively. Such costs are capitalized by transferring to oil and gas assets when awell in field / project is ready to commence commercial production. In case of abandonment / relinquishment, such costs are writtenoff.
Acquisition costs of producing oil and gas assets are capitalized under oil and gas assets and amortized using the unit of productionmethod over proved reserves of underlying assets
Cost of Survey and prospecting activities conducted in the search of oil and gas are expensed as exploration cost in the year in whichthese are incurred.
All costs relating to development wells are initially capitalized as development wells in progress and transferred to oil and gas assetson completion.
Production costs include pre-well head and post-well head expenses including depreciation and applicable operating costs of supportequipment and facilities.
An assessment is made at the end of each financial year to see if there are any indications that impairment losses recognized earlier may nolonger exist or may have come down. The impairment loss is reversed, if there has been a change in the estimates used to determine the asset’srecoverable amount since the previous impairment loss was recognized. If it is so, the carrying amount of the asset is increased to the lower of itsrecoverable amount and the carrying amount that have been determined, net of depreciation, had no impairment loss been recognized for theasset in prior years. After a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less anyresidual value, on a systematic basis over its remaining useful life. Reversals of Impairment loss are recognized in the statement of profit andloss.
Impairment testing during exploratory phase is carried out at field / project level when further exploration activities are not planned in near futureor when sufficient data exists to indicate that although a development in the specific field/project is likely to proceed, the carrying amount of theexploration asset is unlikely to be recovered in full from successful development or by sale. Impairment loss is reversed subsequently, to theextent that conditions for impairment are no longer present.
Expenditure incurred before obtaining the right(s) to explore, develop and produce oil and gas are expensed as and when incurred.
For the purposes of impairment testing, acquisition cost is allocated to each of the Group's CGUs (or groups of CGUs) that is expected to benefitfrom the synergies of the combination.
A CGU to which acquisition cost has been allocated is tested for impairment annually when there is an indication that the CGU may be impaired.If the recoverable amount of the cash generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carryingamount of any acquisition cost allocated to the unit and then to the other assets of the CGU pro rata based on the carrying amount of each asset inthe unit. An impairment loss recognized for acquisition cost is not reversed in subsequent periods.
On disposal of the relevant CGU, the attributable carrying amount of acquisition cost is included in the determination of the profit or loss ondisposal.
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ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
3.15
Depletion
3.16
3.17
Cost of temporary occupation of land, successful exploratory wells, all development wells (including service wells), allied facilities, depreciationon support equipment used for drilling and estimated future decommissioning costs are capitalised and classified as oil and gas assets.
Oil and gas assets are depleted using the ‘Unit of Production Method’. The rate of depletion is computed with reference to a field / project/amortization base by considering the related proved developed reserves and related capital costs incurred including estimated futuredecommissioning costs net of salvage value (except acquisition cost). Acquisition cost of oil and gas assets is depleted by considering the provedreserves. These reserves are estimated annually by the Reserve Estimates Committee (‘REC’) formed by the parent company ONGC, whichfollows the International Reservoir Engineering Procedures.
Side tracking
In the case of an exploratory well, cost of side-tracking is treated in the same manner as the cost incurred on a new exploratory well. The cost ofabandoned portion of side tracked exploratory wells is expensed as ‘Exploration cost written off.’
In the case of development wells, the entire cost of abandoned portion and side tracking is capitalized.
In the case of producing wells and service wells, if the side-tracking results in additional proved developed oil and gas reserves or increases thefuture economic benefits therefrom beyond previously assessed standard of performance, the cost incurred on side tracking is capitalised,whereas the cost of abandoned portion of the well is depleted in accordance with the accounting policy mentioned in note 3.15. Otherwise, thecost of side tracking is expensed as ‘Work over expenditure’.
Decommissioning costs
However, actual decommissioning costs will ultimately depend upon future market prices for the necessary decommissioning works required thatwill reflect market conditions at the relevant time. Furthermore, the timing of decommissioning is likely to depend on when the fields cease toproduce at economically viable rates.
Oil and gas assets
Oil and gas assets are stated at historical cost less accumulated depletion and impairment losses. These are created in respect of field / projecthaving proved developed oil and gas reserves, when the well in the field / project is ready to commence commercial production.Oil & Gas assets which are not ready for their intended use is classified as capital work-in-progress.
Decommissioning cost includes cost of restoration. Provision for decommissioning costs are recognized when the Company has a contractual,legal or constructive obligation to plug and abandon a well, dismantle and remove a facility or an item of Property, plant and equipment and torestore the site on which it is located.
The amount recognized is the present value of the estimated future expenditure determined using existing technology at current prices andescalated using appropriate inflation rate till the expected date of decommissioning and discounted up to the reporting date using a nominaldiscount rate. These estimates are reviewed annually to take into account any material changes to the assumptions.
An amount equivalent to the decommissioning provision is recognized along with the cost of the respective assets. The decommissioning cost inrespect of dry exploratory well is expensed as exploratory well cost.
Any change in the present value of the estimated decommissioning expenditure other than the periodic unwinding of discount is adjusted to thedecommissioning provision and the carrying value of the corresponding asset. In case reversal of provision exceeds the carrying amount of therelated asset, the excess amount is recognized in the consolidated statement of profit and loss. The unwinding of discount on provision is chargedin the statement of profit and loss as finance cost.
Provision for decommissioning cost in respect of assets under joint operations is considered as per participating interest of the Group.
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3.18
3.19
Any payment received in respect of short lifted gas quantity for which an obligation exists to supply such gas in subsequent periods is recognisedas Contract Liability in the year of receipt. The same is recognised as revenue in the year in which such gas is actually supplied or in the year inwhich the obligation to supply such gas ceases, whichever is earlier.
Where the group acts as an agent on behalf of a third party, the associated income is recognised on a net basis.
Sale of crude oil and natural gas (net of levies) produced from Intangible assets under development – Exploratory Wells in Progress / Oil & Gasassets under development – Development Wells in Progress is deducted from expenditure on such wells and such surplus, if any, is recognised asrevenue in the Statement of Profit and Loss.The group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer andpayment by the customer exceeds one year. As a consequence, the group does not adjust any of the transaction prices for the time value ofmoney.
Crude oil and condensate including inventories in pipelines / tanks are valued at cost or net realisable value whichever is lower. Cost of finishedgoods is determined on absorption costing method. The value of inventories includes royalty (wherever applicable).
Crude oil in semi-finished condition at Group Gathering Stations (GGS) is valued at cost on absorption costing method or net realisable valuewhichever is lower.
Crude oil in unfinished condition in flow lines up to GGS / platform is not valued as the same is not measurable. Natural Gas is not valued as it isnot stored.
Inventory of stores and spare parts is valued at weighted average cost or net realisable value, whichever is lower. Provisions are made forobsolete and non-moving inventories.
Unserviceable and scrap items, when determined, are valued at estimated net realisable value.
Revenue recognition
Inventories
Revenues are recognized when the group satisfies the performance obligation by transferring a promised product or service to a customer. Aproduct is transferred when the customer obtains control of that product which is at the point of transfer of custody to customers where usuallythe title is passed, provided that the contract price is fixed or determinable and collectability of the receivable is reasonably assured.
Each such sale generally represents a single performance obligation.Revenue from a service is recognised in the accounting period in which the service is rendered at contractually agreed rates.
Revenue is measured at the transaction price of the consideration received or receivable and represent amounts receivable for goods and servicesprovided in the normal course of business, net of discounts and applicable taxes etc. Any retrospective revision in prices is estimated at the timeof satisfaction of performance obligation. Any further true up is recognised in the year of such revision.
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ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Underlift - Overlift
3.20
As lessor
As lessee
1)2)
3)
The group has substantially all of the economic benefits from use of the asset through the period of the lease, and
Revenues from the production of crude oil and natural gas properties, in which the group has an interest with other producers, are recognizedbased on actual quantity lifted over the period. Any difference as of the reporting date between the entitlement quantity minus the quantitieslifted in respect of crude oil, if positive (i.e. under lift quantity) the proportionate production expenditure is treated as prepaid expenses and, ifnegative (i.e. over lift quantity), a liability for the best estimate of the Company’s proportionate share of production expenses as per the JointOperating Agreement (JOA) / Production Sharing Agreement (PSA) is created in respect of the quantity of crude oil to be foregone in futureperiod towards settlement of the overlift quantity of crude oil with corresponding charge to the Statement of Profit and Loss.
TransitionEffective April 1, 2019, the group adopted Ind AS 116 “Leases” and applied the standard to all lease contracts existing on April 1, 2019 usingthe modified retrospective method. Consequently, for leases that were classified as finance lease under Ind AS 17, the group has recognised thecarrying amount of the right-of-use asset and the lease liability as at April 1, 2019 as the carrying amount of the lease asset and lease liabilityimmediately before that date measured applying Ind AS 17. Comparatives as at and for the year ended March 31, 2019 have not beenretrospectively adjusted and therefore will continue to be reported under Ind AS 17.
The following is the summary of practical expedients elected on initial application:1. Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date
2. Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term or low value asset as on the date of initial application
3. Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.
4. Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, Ind AS 116 is applied only tocontracts that were previously identified as leases under Ind AS 17.
The group assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys theright to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right tocontrol the use of an identified asset, the group assesses whether:
At the date of commencement of the lease, the group recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all leasearrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For theseshort-term and low value leases, the group recognizes the lease payments as an operating expense on a straight-line basis over the term of thelease.
Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilitiesinclude these options when it is reasonably certain that the option to extend the lease will be exercised /option to terminate the lease will not beexercised.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease paymentsmade at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured atcost less accumulated depreciation and impairment losses.
Leases
The group has adopted Ind AS 116 "Leases" from 1st April 2019. Ind AS 116 "Leases" introduced a single, on-balance sheet accounting modelfor lessees. As a result, the group, as a lessee, has recognised right-of-use assets representing its rights to use the underlying assets and leaseliabilities representing its obligation to make lease payments. Lessor accounting remains similar to previous accounting policies. On initialapplication, the group elected to adopt the modified retrospective approach, by recognizing the cumulative effect of initially applying the newstandard as an adjustment to the opening balance at April 1, 2019, without restating the comparative information.
The Group's subsidiaries are not a lessor in any transactions. Hence no further details are being provided.
The contract involves the use of an identified asset
The group has the right to direct the use of the asset.
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Accounting policy under Ind AS 17
3.21
3.22
Refer note 3.20 - Significant accounting policies of Consolidated financial statements- Leases in the Annual Report of the company for the yearended March 31, 2019, for the policy as per Ind AS 17.
The group's lease asset class primarily consist of lease of land and lease of production facilities. Land under perpetual lease is recognized atupfront premium paid for the lease and the present value of the lease rent obligation. Such leasehold lands are presented as right- of-use assetsand not depreciated. The corresponding liability is recognised as a lease liability.
Foreign exchange transactions
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environmentin which the entity operates (the “functional currency”). The functional currency of the Company is United States Dollars (‘USD’) whichrepresents the currency of the primary economic environment in which it operates. The consolidated financial statements are presented in IndianRupees (₹) by applying the translation principles mentioned in note 3.22.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of theunderlying asset, however, in case the ownership of such right-of-use asset transfers to the lessee at the end of the lease term, such assets aredepreciated over the useful life of the underlying asset. Right-of-use assets are evaluated for recoverability whenever events or changes incircumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e.the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cashflows that are largely independent of those from other assets.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discountedusing the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rate. Lease liabilities are remeasuredwith a corresponding adjustment to the related right of use asset if the group changes its assessment if whether it will exercise an extension or atermination option.
Lease liabilities and ROU assets have been separately presented in the balance sheet and respective lease payments have been classified asfinancing cashflows.
In the case of unincorporated joint operations, the operator recognizes the entire lease liability, as, by signing the contract, it has primaryresponsibility for the liability towards the third party supplier. Therefore, if, based on the contractual provisions and any other relevant facts andcircumstances, the group has primary responsibility, it recognizes in the balance sheet: (i) the entire lease liability and (ii) the entire right-of-useasset, unless there is a sublease with the joint operators. On the other hand, if the lease contract is signed by all the partners of the venture, thegroup recognises its share of the right-of-use asset and lease liability based on its working interest. If the group does not have primaryresponsibility for the lease liability, it does not recognise any right-of-use asset or lease liability related to the lease contract.
Transactions in currencies other than the respective entities’ functional currency (foreign currencies) are recognised at the rates of exchangeprevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translatedusing mean exchange rate prevailing on the last day of the reporting period. Non-monetary items carried at fair value that are denominated inforeign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured interms of historical cost in a foreign currency are translated using the exchange rates at the date of transaction.
Exchange differences on monetary items are recognised in the consolidated statement of profit and loss in the period in which they arise exceptfor exchange differences on monetary item that forms part of a Group’s net investment in a foreign operation are recognised initially in othercomprehensive income and reclassified from equity to the consolidated statement of profit and loss on repayment of the monetary items.
Exchange difference arising in respect of long term foreign currency monetary items (including assets under finance leases) is recognised in thestatement of profit and loss except for the exchange differences in relation to long term foreign currency monetary items recognized as at March31, 2016, in so far as, these related to the acquisition of depreciable assets, are adjusted against the cost of such assets and depreciated over thebalance life of asset and in other cases amortised over the balance period of the long term foreign currency monetary assets or liabilities.
Translation to presentation currency
The Group has presented these financial statements in Indian Rupees (‘₹’). The Group has applied the following principles for translating resultsand financial position of Group’s foreign operations from functional currency to presentation currency (‘₹’):
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ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
3.23
• Equity share capital including deemed capital contribution and shareholder's advance pending allotment of shares have been translated atexchange rates at the dates of transaction. Capital reserve has been translated at exchange rate at the dates of transaction. Other reserves havebeen translated using average exchange rates of the period to which it relates;
• Income and expenses for statement of profit and loss presented have been translated at exchange rates at the dates of transaction except forcertain items for which average rate for the period (year ended March 31, 2020: 1 USD = ₹ 70.9150*; year ended March 31, 2019: 1 USD = ₹69.9458) is used;
• All resulting exchange differences have been recognised in other comprehensive income as ‘Exchange differences in translating the financialsstatements of foreign operations’ which will be subsequently reclassified to the consolidated statement of profit and loss upon disposal of foreignoperations.
*determined on the basis of average of State Bank of India 's telegraphic transfer buying and selling rates.
On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, a disposal involving loss of controlover a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes aforeign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect ofthat operation attributable to the owners of the Company are reclassified to the consolidated statement of profit and loss.
In addition, in relation to a partial disposal of a subsidiary that includes a foreign operation that does not result in the Group losing control overthe subsidiary, the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognisedin the consolidated statement of profit and loss. For all other partial disposals (i.e. partial disposals of associates or joint arrangements that do notresult in the Group losing significant influence or joint control), the proportionate share of the accumulated exchange differences is reclassifiedto the consolidated statement of profit and loss.
• Assets and liabilities (excluding equity share capital and other reserves) for each balance sheet presented has been translated at the closing rate(as at March 31, 2020: 1 USD = ₹ 75.48*; as at March 31, 2019: 1 USD = ₹ 69.21*) at the date of that balance sheet;
Defined retirement benefit plans comprising of gratuity, post-retirement medical benefits and post-retirement transfer benefits, are recognizedbased on the present value of defined benefit obligation which is computed using the projected unit credit method, with actuarial valuationsbeing carried out at the end of each annual reporting period. These are accounted either as current employee cost or included in cost of assets aspermitted.
Net interest on the net defined liability is calculated by applying the discount rate at the beginning of the period to the net defined benefit liabilityor asset and is recognised in the consolidated statement of profit and loss except those included in cost of assets as permitted.
Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets(excluding net interest as defined above), are recognised in other comprehensive income.
The Group contributes all ascertained liabilities with respect to gratuity to the ONGC’s Gratuity Fund Trust. Other defined benefit schemes areunfunded.
Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition of a foreign operation are treatedas assets and liabilities of foreign operation and translated at rate of exchange prevailing at the end of each reporting period. Exchangedifferences arising are recognised in other comprehensive income.
Employee benefits
Employee benefits include provident fund, gratuity, compensated absences and post-retirement medical benefits.
Defined contribution plansEmployee benefit under defined contribution plans comprising of Contributory Provident Fund, Employee Pension Scheme 1995, CompositeSocial Security Scheme are recognized based on the amount of obligation of the Group to contribute to the plan through the parent companyONGC. The same are paid to a fund administered through a separate trust, which are expensed during the year.
Defined benefit plans
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ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
3.24
3.25
The Company accounts for insurance claims as under:-
3.26
Income tax expense represents the sum of the current tax and deferred tax.
(i) Current tax
(ii) Deferred tax
The retirement benefit obligation recognised in the consolidated financial statements represents the actual deficit or surplus in the Group’sdefined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form ofreductions in future contributions to the plans.
Short-term employee benefits
Voluntary retirement scheme
Expenditure on voluntary retirement scheme (VRS) is charged to the consolidated statement of profit and loss when incurred.
Insurance claims
Insurance claims are accounted for on the basis of claims admitted/expected to be admitted to the extent that the amount recoverable can bemeasured reliably and it is virtually certain to expect ultimate collection.
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees arerecognised during the year when the employees render the service. These benefits include performance incentive and compensated absenceswhich are expected to occur within twelve months after the end of the period in which the employee renders the related service.
The cost of short-term compensated absences is accounted as under:
• In case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and
• In case of non-accumulating compensated absences, when the absences occur.
Long-term employee benefits
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders therelated service are recognised as a liability at the present value of the defined benefit obligation as at the balance sheet date less the fair value ofthe plan assets out of which the obligations are expected to be settled.
Income taxes
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in theconsolidated statement of profit and loss because of items of income or expense that are taxable or deductible in other years and itemsthat are never taxable or deductible. The group’s current tax is calculated using tax rates and laws that have been enacted orsubstantively enacted by the end of the reporting period. The group uses estimates and judgements based on the relevant rulings in theareas of allocation of revenue, costs, allowances, and disallowances which is exercised while determining the current tax.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidatedstatement of profit and loss and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities aregenerally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporarydifferences to the extent that it is probable that taxable profits will be available against which those deductible temporary differencescan be utilised. Accordingly, the group exercises its judgement to reassess the carrying amount of deferred tax asset as at the end ofeach reporting period.
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ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
(iii) Current and deferred tax expense for the year
(iv) First Time application of Appendix C to Ind AS 12
3.27
3.28
3.29 Provisions, Contingent liabilities and Contingent assets
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which thegroup expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to givefuture economic benefits in the form of availability of set-off against future income tax liability. Accordingly, MAT is recognised asdeferred tax asset in the consolidated balance sheet when the asset can be measured reliably and it is probable that the future economicbenefit associated with the asset will be realised.
Current and deferred tax expense is recognised in the consolidated statement of profit and loss, except when they relate to items thatare recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised inother comprehensive income or directly in equity respectively.
Borrowing costs
Borrowing costs specifically identified to the acquisition, construction or production of qualifying assets is capitalized as part of such assets. Aqualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to theconsolidated statement of profit and loss.
Abnormal Rig days costs
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longerprobable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settledor the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reportingperiod.
Deferred tax assets and liabilities are presented separately in the consolidated balance sheet except where there is a right of set-offwithin fiscal jurisdiction and an intention is there to settle such balance on a net basis.
The Group applied appendix C to Ind AS 12 "uncertainty over income tax treatments" as on April 01, 2019. Appendix C clarifiesapplication of the recongnition, measurement and presentation of Ind AS 12 "Income Taxes" provisions, when there is uncertainityover income tax treatments under the standard. The effect of the first application of the standard on the financial statements, as at April 1, 2019, is Nil.
Abnormal Rig days’ costs are considered as un-allocable and charged to the consolidated statement of profit and loss.
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Groupwill be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reportingperiod, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimatedto settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money ismaterial).
Contingent assets are disclosed along with an estimate of their financial effect, where practicable, in the consolidated financial statements by way of notes when an inflow of economic benefits is probable.
Contingent liabilities are disclosed along with an estimate of their financial effect, where practicable, in the consolidated financial statements byway of notes, unless possibility of an outflow of resources embodying economic benefit is remote.
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ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
3.30
3.31
(i) Cash and cash equivalents
(ii) Financial assets at amortised cost
(iii) Financial assets at fair value through other comprehensive income
(iv) Financial assets at fair value through profit or loss
(v) Impairment of financial assets
(vi) Derecognition of financial assets
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition orissue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are addedto or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directlyattributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in theconsolidated statement of profit and loss.
Financial assets
The Group considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subjectto an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cashequivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage, unlessotherwise stated.
Financial assets are subsequently measured at amortised cost using the effective interest method if these financial assets are heldwithin a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of thefinancial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amountoutstanding.
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a businesswhose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of thefinancial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amountoutstanding.
Financial instruments
Financial assets are subsequently measured at fair value through profit or loss unless it is measured at amortised cost or at fair valuethrough other comprehensive income on initial recognition.
The Group assesses at each balance sheet date whether a financial asset or a group of financial assets is impaired. Ind AS 109‘Financial Instruments’ requires expected credit losses to be measured through a loss allowance. The Group recognises lifetimeexpected credit losses for trade receivables that do not constitute a financing transaction. For all other financial assets, expected creditlosses are measured at an amount equal to 12 month expected credit losses or at an amount equal to lifetime expected losses, if thecredit risk on the financial asset has increased significantly since initial recognition.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers thefinancial asset and substantially all the risks and rewards of ownership of the asset to another party.
On derecognition of a financial asset in its entirety (except for equity instruments designated as fair value through other comprehensiveincome (FVTOCI)) ,the difference between the asset’s carrying amount and the sum of the consideration received and receivable isrecognised in the consolidated statement of profit and loss.
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ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
(vii)
3.32
(a) Classification as debt or equity instruments
(b) Equity instruments
( c) Compound financial instruments
(d) Financial liabilities
(e) Derecognition of financial liabilities
Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with thesubstance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Dividend and interest income
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.Equity instruments issued by the Group are recognised at the proceeds received. Incremental costs directly attributable to the issuanceof new ordinary equity shares are recognized as a deduction from equity, net of tax effects.
The component parts of compound financial instruments issued by the Group are classified separately as financial liabilities and equityin accordance with the substance of the contractual arrangements. A conversion option that will be settled by the exchange of a fixedamount of cash or another financial asset for a fixed number of the Group’s own equity instruments is an equity instrument.
At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recognised as a liability on an amortised cost basis using the effective interest method untilextinguished upon conversion or at the instrument’s maturity date. The conversion option classified as equity is determined bydeducting the amount of the liability component from the fair value of the compound financial instrument as a whole. This isrecognised and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion optionclassified as equity will remain in equity until the conversion option is exercised, in which case, the balance recognised in equity willbe transferred to other component of equity. When the conversion option remains unexercised at the maturity date of the convertiblenote, the balance recognised in equity will be transferred to retained earnings. No gain or loss is recognised in the consolidatedstatement of profit and loss upon conversion or expiration of the conversion option.
Transaction costs that relate to the issue of the convertible notes are allocated to the liability and equity components in proportion tothe allocation of the gross proceeds. Transaction costs relating to the equity component are recognised directly in equity. Transactioncosts relating to the liability component are included in the carrying amount of the liability component and are amortised over the livesof the convertible notes using the effective interest method.
Financial liabilities are measured at amortised cost using the effective interest method.
Interest free loans provided by ONGC are recognized at fair value on the date of disbursement and the difference on fair valuation isrecognized as deemed capital contribution from holding company. The deemed capital contribution from holding company ispresented in the statement of changes in equity.
Dividend income from investments is recognised when the shareholder's right to receive payment is established.
Interest income from financial assets is recognised at the effective interest rate applicable on initial recognition. Income in respect ofinterest on delayed realization is recognized when there is reasonable certainty regarding ultimate collection.
Financial liabilities and equity instruments
For accounting of dividend received from equity accpounted investees, refer note 3.7
Liability component is accounted at amortized cost method using effective interest rate. If there is an early repayment of loan, theproportionate amount of deemed capital contribution from holding company recognized earlier is adjusted.
The group derecognises financial liabilities when, and only when, the group’s obligations are discharged, cancelled or have expired.The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable isrecognised in the consolidated statement of profit and loss.
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ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
3.33
3.34
3.35
3.36
4 Critical accounting judgments, assumptions and key sources of estimation uncertainty
Estimation of uncertainties relating to the global health pandemic from COVID-19:
Earnings per share
Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding duringthe period. Diluted earnings per share is computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expenseor income (net of any attributable taxes) relating to the dilutive potential equity shares by the weighted average number of equity sharesconsidered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued uponconversion of all dilutive potential equity shares.
Cash flow statement
Cash flows are reported using the indirect method, whereby profit/(loss) for the year is adjusted for the effects of transactions of a non-cashnature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investingor financing cash flows. The cash flows are segregated into operating, investing and financing activities.
Segment reporting
Operating segments are identified and reported taking into account the different risks and returns, the internal reporting systems and the basis onwhich operating results are regularly reviewed to make decisions about resources to be allocated to the segment and assess its performance.
Derivative financial instruments
The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks,including foreign exchange forward contracts and interest rate swaps.
Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fairvalue at the end of each reporting period. The resulting gain or loss is recognised in the consolidated statement of profit and loss immediatelyunless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in the consolidatedstatement of profit and loss depends on the nature of the hedging relationship and the nature of the hedged item.
Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Inherent in the application of many of the accounting policies used in preparing the consolidated financial statements is the need for Managementto make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets andliabilities, and the reported amounts of revenues and expenses. Actual outcomes could differ from the estimates and assumptions used.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in whichthe estimates are revised and future periods are affected.
Key source of judgments, assumptions and estimation uncertainty in the preparation of the consolidated financial statements which may cause amaterial adjustment to the carrying amounts of assets and liabilities within the next financial year, are in respect of oil and gas reserves,impairment, useful lives of property, plant and equipment, depletion of oil and gas assets, decommissioning provision, employee benefitobligations, provisions, provision for income tax, measurement of deferred tax assets and contingent assets and liabilities.
The group has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of receivables.In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the group,as at the date of approval of these financial statements has used internal and external sources of information including credit reports and relatedinformation, economic forecasts. The impact of COVID-19 on the group's financial statements may differ from that estimated as at the date ofapproval of these financial statements.
Annual Report 2019 - 20 266 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
4.1
(a) Determination of functional currency
(b) Evaluation of indicators for impairment of oil and gas assets
(c ) Exploratory wells
(d)
(e) Classification of investment in as associates despite participating share being less than 20%
Considering the power to participate in the financial and operating policy decisions of the investees exercised by the Group inaccordance with the applicable agreements and /or otherwise, the following entities are considered associates of the Group despite theparticipating interest / shareholding percentage / right percentage being less than 20 %:
South East Asia Gas Pipeline (shareholding of the Group 8.347%)
Petro Carabobo S.A., Venezuela (shareholding of the Group 11%)
The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant decline inasset’s value, significant changes in the technological, market, economic or legal environment, market interest rates etc.) and internalfactors (obsolescence or physical damage of an asset, poor economic performance of the asset etc.) which could result in significantchange in recoverable amount of the Oil and gas assets.
The determination of whether potentially economic oil and natural gas reserves have been discovered by an exploration well is usuallymade within one year of well completion, but can take longer, depending on the complexity of the geological structure. Explorationwells that discover potentially economic quantities of oil and natural gas and are in areas where major capital expenditure (e.g. anoffshore platform or a pipeline) would be required before production could begin, and where the economic viability of that majorcapital expenditure depends on the successful completion of further exploration work in the area, remain capitalized on theconsolidated balance sheet as long as additional exploration or appraisal work is under way or firmly planned.
It is not unusual to have exploration wells and exploratory type stratigraphic test wells remaining suspended on the consolidatedbalance sheet for several years while additional appraisal drilling and seismic work on the potential oil and natural gas field isperformed or while the optimum development plans and timing are established. All such carried costs are subject to regular technical,commercial and management review on at least an annual basis to confirm the continued intent to develop, or otherwise extract valuefrom, the discovery. Where this is no longer the case, the costs are immediately expensed.
Deferred tax liability / deferred tax asset in respect of undistributed profits/losses of subsidiaries, branches, investments inassociates and joint ventures
The management exercises judgement in accounting for deferred tax liability / deferred tax asset in respect of Group’s investments inrespect of undistributed profits/losses of subsidiaries, branches, investments in associates and joint ventures. In the judgement of themanagement, in respect of undistributed profits/losses of subsidiaries, branches, investments in joint ventures, the management is ableto control the timing of the reversal of the temporary differences and the temporary differences will not be reversed in the foreseeablefuture.
Accordingly, the Group does not recognise a deferred tax liability for all taxable temporary differences associated with investments insubsidiaries, branches and interests in joint ventures.
Critical judgments in applying accounting policies
The following are the critical judgements, apart from those involving estimations (Refer note 4.2), that the Management have made in the processof applying the Group's accounting policies and that have the significant effect on the amounts recognized in the consolidated financialstatements.
Currency of the primary economic environment in which the Company operates (‘the functional currency’) is United States Dollars(USD) in which the Company primarily generates and expends cash. Accordingly, the Management has assessed its functionalcurrency to be USD.
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ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
4.2
a)
b) Impairment of assets
c) Estimation of reserves
The Value in use of the producing/developing CGUs is determined considering future cash flows estimated based on Proved andProbable Reserves. Full estimate of the expected cost of evaluation/development is also considered while determining the value in use.
The year-end reserves of the Group are estimated by the Reserves Estimation Committee (REC) of the holding company Oil andNatural Gas Corporation Limited (ONGC), which follows international reservoir engineering procedures consistently.
The Group estimates its reserves annually and the reserves are disclosed at the end of the financial year i.e. as at 1st of April. TheGroup is having partnership with global majors in various producing and discovered assets across the world having participatinginterest as non-operator, joint operator and operator. The Operator / Joint operating company of each asset evaluate reserves of therespective asset on an annual basis, and the Group's representatives interact dynamically through Technical/Operating committeemeetings, wherein estimates of reserves are discussed and finalized. On receipt of the approved reserves for each asset, the Groupdiscusses the same with reserves estimate experts from E&D Directorate of the parent company ONGC and put up the same fordeliberation and approval by Reserves Estimate Committee (REC) under the Chairmanship of Director (Exploration) of the parentcompany ONGC.
In assessing the production profile the group assesses its reserves through the full period, considering all contractually possibleextensions, over which they are economically producible without restricting them to the term of license.
Estimation of provision for decommissioning
The Group estimates provision for decommissioning as per the principles of Ind AS 37 ‘Provisions, Contingent Liabilities andContingent Assets’ for the future decommissioning of oil and gas assets at the end of their economic lives. Most of thesedecommissioning activities would be in the future, the exact requirements that may have to be met when the removal events occurinvolve uncertainty. Technologies and costs for decommissioning are constantly changing. The timing and amounts of future cashflows are subject to significant uncertainty.
The timing and amount of future expenditures are reviewed at the end of each reporting period, together with rate of inflation forescalation of current cost estimates and the interest rate used in discounting the cash flows. The interest rate used to determine theprovision for decommissioning at each reporting date is based on the risk free rate adjusted for the risks associated with eachasset/business. The economic life of the oil and gas assets is estimated on the basis of long term production profile of the relevant oiland gas asset.
Determination as to whether, and by how much, a CGU is impaired involves Management estimates on uncertain matters such asfuture prices, the effects of inflation on operating expenses, discount rates, production profiles for crude oil and natural gas. For oiland gas assets, the expected future cash flows are estimated using Management’s best estimate of future crude oil and natural gasprices, production and reserves volumes.
The present values of cash flows are determined by applying pre-tax discount rates that reflects current market assessments of timevalue of money and the risks specific to the liability in respect of each of the CGUs. Future cash inflows from sale of crude oil arecomputed using the future prices, on the basis of market-based forward prices of the Dated Brent crude oil as per assessment byBloomberg or Brent crude oil forward/forecast prices by independent reputed third parties and its co-relations with benchmark crudesand other petroleum products. Future cash flows from sale of natural gas are also computed based on the expected future prices on thebasis of the prices determined in accordance with the respective agreements and / or market forecast.
The discount rate used is based upon the cost of capital from an established methodology. The discount rates applied in the assessment of impairment calculation are re-assessed each year.
Assumptions and key sources of estimation uncertainty
Information about estimates and assumptions that have the significant effect on recognition and measurement of assets, liabilities, income andexpenses is provided below. Actual results may differ from these estimates.
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d)
e) Defined benefit obligation (DBO)
Determination of cash generating unit (CGU)
The Group is engaged mainly in the business of oil and gas exploration and production in Onshore and Offshore. In case where thefields are using common production/transportation facilities and are sufficiently economically interdependent the same are consideredto constitute a single cash generating unit (CGU).
Management’s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation,medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions maysignificantly impact the DBO amount and the annual defined benefit expenses.
Volumetric estimation is the main process of estimation which uses reservoir rock and fluid properties to calculate hydrocarbons in-place and then estimate that portion which will be recovered from it from a given date forward, under existing economic conditions, byestablished operating practices and under existing government regulations. As the field gets matured with reasonably good productionhistory, performance methods such as material balance, simulation, decline curve analysis are applied to get more accurate assessmentsof reserves. For many of the producing and discovered assets in which the Group has stake, the concerned Operators and Jointoperating companies uses the services of third party agencies for due diligence and audit. Additionally, the Group gets the reserves ofits assets audited by third party periodically by internationally reputed consultants who adopt latest industry practices for theirevaluation.
The annual revision of estimates is based on the yearly exploratory and development activities and results thereof. New InplaceVolume and Ultimate Reserves are estimated for new field discoveries or new pool discoveries in already discovered fields. Also,appraisal activities lead to revision in estimates due to new subsurface data. Similarly, reinterpretation exercise is also carried out forold fields due to necessity of revision in petro physical parameters, updating of static & dynamic models and performance analysisleading to change in reserves. Intervention of new technology, change in classifications and contractual provisions also necessitatesrevision in estimation of reserves.
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ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
5 Oil and Gas Assets
Particulars
CostOpening balance 704,311.92 663,019.66 Transfer from Intangible assets under development - Exploratory wells in progress
- 768.97
Transfer from Development wells in progress 12,737.73 16,699.57 Increase/(decrease) in decommissioning costs 3,235.69 (454.27)Additions during the year 3,138.52 8,105.86 Deletion/Retirement during the period (Refer note37.1)
(49,791.79) (0.30)
Reclassified on account of adoption of Ind AS116 (Refer note 7.1)
(18,959.76) -
Effect of exchange differences (Refer note 5.1) 39,054.02 24,634.79 Other adjustments - 693,726.33 (8,462.36) 704,311.92
Less: Accumulated depletion and impairmentAccumulated depletion Opening balance 355,849.20 320,930.49 Depletion for the year (Refer note 35) 31,471.30 33,084.27 Deletion during the year (Refer note 37.1) (35,244.72) (0.09)Reclassified on account of adoption of Ind AS116 (Refer note 7.1)
(12,615.17) -
Other Adjustments - (8,462.36)Effect of exchange differences (Refer note 5.1) 16,747.95 356,208.56 10,296.89 355,849.20
Accumulated impairmentOpening balance 27,178.71 15,435.61 Provided during the year (Refer note 5.2 and 52) 9,368.20 10,837.10
Write back of impairment (Refer note 37.1) (15,625.64) - Effect of exchange differences (Refer note 5.1) 2,059.42 22,980.69 906.00 27,178.71
Carrying amount of oil and gas assets 314,537.08 321,284.01
5.1
5.2
Represents exchange difference on account of translation of the financial statements from functional currency topresentation currency. Refer note 3.22 and 4.1(a).
The Company has 60% participating interest in Block XXIV, Syria. In view of prevalent situation in Syria, operations ofthe project are temporarily suspended since April 29, 2012. In view of the same, impairment had been made in respectof Oil and Gas Assets amounting to ₹ Nil (period ended March 31, 2019 ₹ Nil). The cumulative impairment as at March31, 2020 is ₹ 80.23 million (as at March 31, 2019 ₹ 73.57 million) in respect of the project.
As at March 31, 2020 As at March 31, 2019
Annual Report 2019 - 20 270 of 373
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Cos
t Fr
eeho
ld la
ndPe
rpet
ual l
ease
la
ndB
uild
ings
Pl
ant a
nd
equi
pmen
tFu
rnitu
re a
nd
fixtu
res
Veh
icle
sO
ffic
e eq
uipm
ent
Tot
al
Bal
ance
at M
arch
31,
201
9
4.93
3
,168
.30
12,8
89.8
5
47
,658
.37
6,3
50.1
4
2
,651
.50
7,8
18.6
4
80
,541
.73
Add
ition
s dur
ing
the
year
-
-
1
76.8
0
133
.00
22.
63
1
59.8
3
329
.89
8
22.1
5 R
ecla
ssifi
edon
acco
unto
fado
ptio
nof
Ind
AS
116
(Ref
er n
ote
7.1)
(3,1
68.3
0)
(3
,168
.30)
Dis
posa
ls/ad
justm
ents
/tra
nsfe
r(R
efer
not
e 37
.1)
-
-
(18.
59)
(55.
15)
(5
42.2
1)
(540
.68)
(4
62.8
1)
(1
,619
.44)
Effe
ct o
f exc
hang
e di
ffer
ence
s (R
efer
no
te 6
.1)
0.
37
-
1,1
18.8
9
4
,231
.16
4
94.5
2
8
0.06
699
.87
6,6
24.8
7
Bal
ance
at M
arch
31,
202
0
5.30
-
14
,166
.95
51,9
67.3
8
6
,325
.08
2,3
50.7
1
8
,385
.59
83,2
01.0
1
Acc
umul
ated
dep
reci
atio
n an
d im
pair
men
tFr
eeho
ld la
ndPe
rpet
ual l
ease
la
ndB
uild
ings
Pl
ant a
nd
equi
pmen
tFu
rnitu
re a
nd
fixtu
res
Veh
icle
sO
ffic
e eq
uipm
ent
Tot
al
Bal
ance
at M
arch
31,
201
9
-
-
6
,045
.48
43,6
71.6
3
6
,203
.41
2,2
28.9
6
7
,326
.15
65,4
75.6
3 D
epre
ciat
ion
expe
nse
-
-
7
11.4
1
780
.45
54.
94
1
43.1
9
166
.70
1,8
56.6
9 El
imin
ated
on
disp
osal
/ ad
just
men
ts /
trans
fer (
Ref
er n
ote
37.1
)
-
-
(2
5.08
)
(4
5.94
)
(524
.02)
(5
23.0
7)
(456
.10)
(1,5
74.2
1)
Impa
irmen
t los
s rec
ogni
sed
in p
rofit
or
loss
-
-
-
-
-
-
-
-
Writ
e ba
ck o
f im
pairm
ent (
Ref
er n
ote
37.1
)
-
-
(
1.42
)
-
(1
5.44
)
(1
5.70
)
(
5.28
)
(3
7.84
)
Effe
ct o
f exc
hang
e di
ffer
ence
s (R
efer
no
te 6
.1)
-
-
5
53.8
8
3
,929
.39
4
94.8
8
4
7.99
644
.85
5,6
70.9
9
Bal
ance
at M
arch
31,
202
0
-
-
7
,284
.27
48,3
35.5
3
6
,213
.77
1,8
81.3
7
7
,676
.32
71,3
91.2
6
Annu
al R
epor
t 201
9 - 2
027
1 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
6.1
6.2
6.3
6.4
6.5
6.6
All
item
s of o
ther
Pro
perty
, pla
nt &
equ
ipm
ent a
re n
ot d
irect
ly re
late
d to
pro
duct
ion
activ
ities
.Pr
oper
ty,p
lant
&eq
uipm
ent(
incl
udin
gfr
eeho
ldla
nd&
build
ing)
incl
ude
the
com
pany
'ssh
are
ofas
sets
injo
into
pera
tions
(loca
ted
outs
ide
ofIn
dia)
.Acc
ordi
ngly
the
title
deed
/ow
ners
hip
docu
men
tsar
ein
the
poss
essi
on o
f the
ope
rato
rs. R
efer
not
e 3.
10.
Rep
rese
nts e
xcha
nge
diff
eren
ce o
n ac
coun
t of t
rans
latio
n of
the
finan
cial
stat
emen
ts fr
om fu
nctio
nal c
urre
ncy
to p
rese
ntat
ion
curr
ency
. Ref
er n
ote
3.22
and
4.1
(a).
The
Com
pany
carr
ies
onits
busi
ness
inre
spec
tof
expl
orat
ion,
deve
lopm
ent
and
prod
uctio
nof
hydr
ocar
bons
unde
rag
reem
ents
with
host
gove
rnm
ents
dire
ctly
orin
cons
ortiu
mw
ithot
her
partn
ers
(Con
sorti
um).
Seve
ralo
fth
ese
agre
emen
ts,g
over
ning
Com
pany
'sac
tiviti
esin
the
field
s/pr
ojec
ts,p
rovi
deth
atth
etit
leto
the
prop
erty
,pla
ntan
deq
uipm
enta
ndot
hera
ncill
ary
inst
alla
tions
shal
lpas
sto
host
Gov
ernm
ento
rits
nom
inat
eden
titie
sei
ther
upon
acqu
isiti
on/fi
rstu
seof
such
asse
tsor
upon
100%
reco
very
ofsu
chco
sts
thro
ugh
allo
catio
nof
"Cos
tOil"
and
"Cos
tGas
"or
upon
relin
quis
hmen
tof
the
rele
vant
cont
ract
area
sort
erm
inat
ion
ofth
ere
leva
ntag
reem
ent.
How
ever
,asp
erth
ete
rmso
fthe
agre
emen
ts,t
heC
onso
rtium
and/
orop
erat
orha
vecu
stody
ofal
lsuc
has
sets
and
isen
title
dto
use,
free
ofch
arge
alls
uch
asse
tsfo
rpet
role
umop
erat
ions
thro
ugho
utth
ete
rmof
the
resp
ectiv
eag
reem
ents
.The
Con
sorti
umal
soha
sthe
custo
dyan
dm
aint
enan
ceof
such
asse
tsan
dbe
ars
allr
isks
ofac
cide
ntal
loss
and
dam
age
and
allc
osts
nece
ssar
yto
mai
ntai
nsu
chas
sets
and
tore
plac
eor
repa
irsu
chda
mag
eor
loss
.Und
erth
eci
rcum
stan
ces,
such
asse
tsar
eke
ptin
the
reco
rds
ofth
eC
ompa
nydu
ring
the
curr
ency
of t
he re
spec
tive
agre
emen
ts.
ON
GC
Vid
esh
Atla
ntic
Inc.
(OV
AI)
uses
stra
ight
line
met
hod
toch
arge
depr
ecia
tion
onits
Prop
erty
,Pla
ntan
dEq
uipm
ent.
The
tota
ldep
reci
atio
nch
arge
ofO
VA
Ifor
the
year
ende
dM
arch
31,2
020
₹2.
43 m
illio
n (f
or th
e ye
ar e
nded
Mar
ch 3
1, 2
019
₹ 10
.85
mill
ion)
doe
s not
hav
e m
ater
ial i
mpa
ct o
n fin
anci
al st
atem
ents
.
Whi
le w
orki
ng o
ut th
e de
prec
iatio
n ch
arge
d, re
sidu
al v
alue
of 2
% o
f acq
uisi
tion
cost
has
bee
n co
nsid
ered
for t
he ta
ngib
le it
ems o
f oth
er P
PE.
The
Prop
erty
,Pla
nt&
Equi
pmen
tacq
uire
dby
the
com
pany
ina
curr
ency
othe
rtha
nth
efu
nctio
nalc
urre
ncy
(incl
udin
gas
sets
loca
ted
inIn
dia,
purc
hase
din
Indi
anru
pees
)is
reco
gnis
edin
US
Dol
lara
tth
eex
chan
gera
teon
the
date
oftra
nsac
tion,
asU
SD
olla
rist
hefu
nctio
nalc
urre
ncy
ofth
eco
mpa
ny.S
ubse
quen
tly,a
llpr
oper
ty,p
lant
and
equi
pmen
tbal
ance
are
pres
ente
din
Indi
anR
upee
sby
trans
latin
gus
ing
the
US
Dol
lar t
o In
dian
Rup
ees f
orei
gn e
xcha
nge
rate
at t
he re
porti
ng d
ate.
. Ref
er n
ote
3.10
and
3.2
2
Annu
al R
epor
t 201
9 - 2
027
2 of
373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are ₹ in million unless otherwise stated)
7 Right-of-use assets
7.1 Carrying amount of Right-of-use assets :
Particulars
Land:
CostOpening Balance -Reclassified on account of adoption of Ind AS 116 (Refer note 6)
3,168.30
Additions during the year -Disposals/ adjustments / transfer -Depreciation expense -Effect of exchange differences (Refer note 7.7) 287.03 3,455.33
Depreciation/Depletion expense: -
Opening balance -Reclassified on account of adoption of Ind AS 116 -
Addition during the period -Effect of exchange differences (Refer note 7.7) - -
Closing Balance 3,455.33
Production Facilities on Lease: (Refer note 7.6)
CostOpening Balance -Reclassified on account of adoption of Ind AS 116 (Refer note 5)
18,959.76
Additions during the period 1,523.26Disposals/ adjustments / transfer -Effect of exchange differences (Refer note 7.7) (3,701.03) 16,781.99
Depreciation/Depletion expense:Opening balance -Reclassified on account of adoption of Ind AS 116 (Refernote 5)
12,615.17
Addition during the period 2,403.13Effect of exchange differences (Refer note 7.7) (2,681.55) 12,336.75
Closing Balance 4,445.24
Total Right-of-use assets 7,900.57
As at March 31, 2020
Annual Report 2019 - 20 273 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are ₹ in million unless otherwise stated)
7.2 Lease Liabilities*
As at March 31, 2020 As at March 31, 2019Non-current Current Non- current Current
(i) Lease liabiLity- Leasehold Land 369.78 - 369.78 -(ii) Lease Liability- Oil and Gas Assets 4,959.79 1,003.27 5,300.39 982.28
5,329.57 1,003.27 5,670.17 982.28
7.2.1 Movement in Lease Liabilities
Particulars Year ended March 31, 2020
Year ended March 31, 2019
Year ended March 31, 2020
Year ended March 31, 2019
Opening Balance 369.78 369.78 6,282.67 22,285.09Addition during the year - - - -Exchange loss/(gain) on lease 1,756.56 2,967.10Finance cost 31.65 31.65 1,435.69 4,445.88Deletion during the year - - - -Payment of lease liability (31.65) (31.65) (2,210.42) (21,971.37)Effect of exchange difference (refer note 7.7 ) - - (1,301.44) (1,444.02)
Closing Balance 369.78 369.78 5,963.06 6,282.67
7.2.2
7.2.3
7.2.4
As at March 31, 2020
As at March 31, 2019
As at March 31, 2020
As at March 31, 2019
Not later than one year - - 2,410.00 2,281.89Later than one year and not later than five years - - 6,426.56 7,375.85
Later than five years (Refer note 7.5) - - 5,159.81 5,284.41Present value of minimum lease payments - - 13,996.37 14,942.15
The initial term of the FPSO lease contract of BC-10, Brazil is 15 years with priced extension options for more years according to the productionlifetime. The interest rate implicit in the lease for the FPSO amounts to 13.74% per year. Refer note 7.6
Particulars
* The Company has applied the practical expedient to grandfather the assessment of which of the transactions are leases. Accordingly, Ind AS 116 isapplied only to those contracts that were previously identified as leases under Ind AS 17. The lease liability as at March 31, 2019 represents theamount of lease liability recognised under Ind AS 17. (Refer note 7.5, 7.6 & 56)
UndiscountedMinimum Lease Payments
Land* Production facilities**
**The table above reflects the group's share of 27% of the aggregate future payments from Shell Brazil Ltda. as operator of the BC10 joint venture forthe lease of the FPSO "Espírito Santo" . Refer note 7.6
Land (Refer note 7.2.2)
Production Facilities (Refer note 7.2.3)
*For Contractual maturities of lease liability later than 5 years refer note 7.5.
The Company has taken leased land located at Vasant Kunj, New Delhi which has been classified as lease. The lease term is till perpetuity. Interestrate applied to lease liability under leases is 8.38% per annum.
Contractual maturities of lease liabilities
Annual Report 2019 - 20 274 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are ₹ in million unless otherwise stated)
7.3 The following are the amounts recognised in profit or loss:Particulars As at March 31,
2020Depreciation/depletion expense for right-of-use assets 2,403.13Interest expense on lease liabilities 1,467.34Expense relating to short-term leases 120.86Expense relating to leases of low-value assets 11.81Total Amount recognised in profit & Loss 4,003.14
7.4 The following are the amounts recognised in cash flow statement:Particulars As at March 31,
2020As at March 31,
2019Cash outflow in respect of lease liability (including interest)
2,242.07 22,003.02
7.5
7.6 Obligations under leases for BC-10, Brazil7.6.1 Leasing arrangements
7.6.2
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Amount remaining to be amortised at the beginning of the year
3,164.80 2,473.42
Add: Exchange loss/(gain) arising during the period 1,522.93 2,445.79 Less: Depletion charged to the statement of profit and loss for the year
1,484.93 1,330.65
Add: Effect of currency translation (860.14) (423.76)Amount remaining to be amortised at the end of the year 2,342.66 3,164.80
7.7
The foreign exchange gain/loss arising on account of revaluation of non-current lease liability is capitalized to Oil and gas assets and depleted usingunit of production method. (Refer note 7.6.1 above)
The details of Oil and gas assets remaining to be amortised in respect of the long-term finance lease agreement is as below:
Exchange differences arising on reporting of long-term foreign currency monetary items relating to depreciable assets:
Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency. Refer note3.22 and 4.1(a).
Under the lease agreement, the group is required to pay annual lease rental of ₹ 31.65 million till perpetuity. The Company has recognised a right ofuse asset (land) based on perpetual lease term. No depreciation is being charged on such right of use asset as the lease term extends till perpetuity.
The lease obligations represents the perpetuity value of annualized lease payment, which is ₹ 377.69 million and will remain same till perpetuity. Theundiscounted value of the contractual maturity of lease liability for a perpetual lease is not determinable. However, the present value of such liabilityhas been recognised by the company. The finance charge will be ₹ 31.65 million on annual basis till perpetuity.
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligationsrelated to lease liabilities as and when they fall due.
BC-10, Brazil (an un-incorporated joint operation of the Group) has a concession to exploit, develop and produce at the BC-10 block. In order to beable to perform its development/production activities, Shell, the operator, requires certain equipments, more specifically, a Floating Production,Storage and Offloading Vessels (FPSO). BC-10, Brazil has long-term lease agreement with Tamba BV. Netherlands (a joint venture company of thegroup), wherein the later is providing these equipments to the former. Tamba BV (related party) leased these assets from a third party called BrazilianDeepwater and re-leased these finance leases to BC-10, Brazil.
Annual Report 2019 - 20 275 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
8 Capital Work-in-Progress
Particulars
A) Oil and gas assets(i) Development Wells-In-ProgressOpening balance 4,421.38 4,175.25 Expenditure during the year 15,609.66 16,588.37 Transfer to Oil and gas assets (12,737.73) (16,699.57)Deletion during the year (Refer note 37.1) (386.08) - Effect of exchange differences (Refer note 8.3) (102.66) 6,804.57 357.33 4,421.38
Less: Accumulated Impairment (Refer note 8.1)Opening balance 545.02 107.99 Provided during the year - 434.46 Write back during the period (Refer note 37.1) (440.49) - Effect of exchange differences (Refer note 8.3) 21.02 125.55 2.57 545.02
Carrying amount of development wells-in-progress 6,679.02 3,876.36
(ii) Oil and gas facilities in progress Opening balance 34,849.41 27,561.29 - Expenditure during the year 23,948.64 5,524.95 Effect of exchange differences (Refer note 8.3) 4,698.78 63,496.83 1,763.17 34,849.41
Less: Accumulated ImpairmentOpening balance 38.89 36.48 Provided during the year - - Effect of exchange differences (Refer note 8.3) 3.52 42.42 2.41 38.89
Carrying amount of oil and gas facilities in progress 63,454.41 34,810.52
B) OthersBuildings 10.43 13.98 Plant and equipments 90.27 2.34
Carrying amount of other capital works-in-progress 100.70 16.32
8.1
8.2
8.3 Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency. Refernote 3.22 and 4.1(a).
The Company has 60% participating interest in Block XXIV, Syria. In view of prevalent situation in Syria, operations of the project aretemporarily suspended since April 29, 2012. In view of the same, impairment had been made in respect of development wells in progressamounting to ₹ Nil (year ended March 31, 2019 ₹ Nil). The cumulative impairment as at March 31, 2020 is ₹ 125.56 million (as at March 31,2019 ₹ 115.13 million) in respect of the project.
Borrowing cost amounting to ₹ 168.00 million has been capitalised under the Oil and Gas facilities in progress during the year ended March31, 2020 (for the year ended March 31, 2019 ₹ 172.28 million). The weighted average capitalization rate on funds borrowed is 3.45% perannum (during the year ended March 31, 2019 : 4.74% per annum).
As at March 31, 2020 As at March 31, 2019
Annual Report 2019 - 20 276 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
9 Goodwill
Particulars
Opening balance 209,340.45 196,364.43 Effect of exchange differences (Refer note 9.2) 18,964.96 228,305.41 12,976.02 209,340.45
Less: Accumulated impairmentOpening balance 77,682.72 63,564.77 Additions during the year 9,812.74 10,022.94 Disposal / adjustment / transfer - - Write Back of impairment - - Effect of exchange differences (Refer note 9.2) 7,669.25 95,164.71 4,095.01 77,682.72
Carrying amount of goodwill 133,140.70 131,657.73
9.1
9.2
Goodwill represents goodwill arising on consolidation. Allocation of goodwill to cash generating units is carried out in accordance withthe accounting policy mentioned at note 3.6.
Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency.Refer note 3.22 and 4.1(a).
As at March 31, 2020 As at March 31, 2019
Annual Report 2019 - 20 277 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
10 Other Intangible Assets
ParticularsApplication softwareCostOpening balance 1,341.74 1,211.22 Additions during the year 31.66 52.29 Disposals/ adjustments / transfer (14.33) (1.27)Effect of exchange differences (Refer note 10.1) 118.34 1,477.41 79.50 1,341.74
Less: Accumulated amortisation Opening balance 1,014.58 745.64 Additions during the year (Refer note 35) 154.23 222.36 Disposal / adjustment / transfer (12.88) (0.36)Effect of exchange differences (Refer note 10.1) 98.73 1,254.66 46.94 1,014.58
Carrying amount of intangible assets 222.75 327.16
10.1 Represents exchange difference on account of translation of the financial statements from functional currency to presentationcurrency. Refer note 3.22 and 4.1(a).
As at March 31, 2020 As at March 31, 2019
Annual Report 2019 - 20 278 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
11 Intangible assets under development
Particulars
A. Exploratory wells in progressGross costOpening balance 41,161.08 41,836.87 Expenditure during the year (Refer note 11.4) 7,508.90 926.57 Transfer to Oil and Gas Assets - (768.97)Deletion during the year (Refer note 37.1) (470.14) - Wells written off during the period (953.63) (3,561.67)Effect of exchange differences (Refer note 11.6) 3,245.27 50,491.48 2,728.28 41,161.08
Less : Accumulated impairment (Refer notes 11.1, 11.2)
Opening Balance 5,607.74 4,879.57 Provided during the year - 410.04 Write back of Impairment (Refer note 37.1) (415.73) - Effect of exchange differences (Refer note 11.6) 481.27 5,673.28 318.13 5,607.74
Carrying amount of exploratory wells in progress 44,818.20 35,553.34
B. Acquisition cost (Refer note 11.3)Gross CostOpening balance 178,285.03 162,377.72 Expenditure during the year (Refer note 11.5) 5,127.15 5,231.19 Acquisition cost written off during the period - - Effect of exchange differences (Refer note 11.6) 16,481.57 199,893.75 10,676.12 178,285.03
Less : Accumulated impairment Opening Balance 17,729.07 16,629.23 Provided during the year (Refer note 52) 8,010.51 - Effect of exchange differences (Refer note 11.6) 2,318.51 28,058.09 1,099.84 17,729.07
Carrying amount of acquisition cost 171,835.66 160,555.96
11.1
11.2
11.3
11.4
11.5
11.6
Borrowing cost amounting to ₹ 398.08 million has been capitalised during the year ended March 31, 2020 (for the year ended March 31, 2019₹408.20 million) in Exploratory wells in progress. The weighted average capitalization rate on funds borrowed is 3.45% per annum (during the yearended March 31, 2019: 4.74% per annum).
Borrowing cost amounting to ₹ 5,099.68 million has been capitalised during the year ended March 31, 2020 (for the year ended March 31, 2019₹5,231.19 million) in Acquisition cost. The weighted average capitalization rate on funds borrowed is 3.45% per annum (during the year endedMarch 31, 2019: 4.74% per annum).
Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency. Refer note3.22 and 4.1(a).
As at March 31, 2020 As at March 31, 2019
Acquisition cost relates to the cost for acquiring property or mineral rights of proved or unproved oil and gas properties which are currently underExploration / Development stage; such cost will be transferred to Oil and gas assets on commencement of commercial production from the project orwritten off in case of relinquishment of exploration project.
The Company has 60% Participating Interest in Block XXIV, Syria. In view of prevalent situation in Syria, operations of the project are temporarilysuspended since April 29, 2012. In view of the same provision had been made in respect of exploratory wells in progress. The impairment as atMarch 31, 2020 is ₹ 3,099.97 million (as at March 31, 2019 ₹ 2,842.46 million) in respect of the project.
In respect of Block Farsi, Iran, the Company in consortium with other partners entered into an Exploration Service Contract (ESC) with NationalIranian Oil Company (NIOC) on December 25, 2002. After exploratory drilling, FB area of the block proved to be a gas discovery and was laterrechristened as Farzad-B. NIOC announced the Date of Commerciality for Farzad-B as August 18, 2008. However, the contractual arrangement withrespect to development has not been finalized, so far. Hence, Impairment has been made in respect of the Company’s investment in exploration in theFarsi Block. The impairment as at March 31, 2020 is ₹ 2,573.32 million (as at March 31, 2019 ₹ 2,359.56 million).
Annual Report 2019 - 20 279 of 373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
12In
vest
men
ts
Part
icul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1,
2019
At C
ost l
ess i
mpa
irm
ent :
(a) I
nves
tmen
ts in
equ
ity in
stru
men
ts (R
efer
not
e 12
.1)
(i) G
ross
Inve
stm
ents
in a
ssoc
iate
s
1
80,9
40.3
3
206,
203.
75
L
ess:
Acc
umul
ated
Impa
irmen
t
(4,3
37.6
6)
-
N
et In
vest
men
t in
asso
ciat
es
176
,602
.67
2
06,2
03.7
5
(ii) G
ross
Inve
stm
ents
in Jo
int v
entu
res
18
,039
.38
2
0,60
7.98
Les
s: A
ccum
ulat
ed Im
pairm
ent
(1
,886
.25)
(
1,72
9.56
)
Net
Inve
stm
ent i
n Jo
int V
entu
res
16,
153.
13
18,
878.
42
T
otal
Inve
stm
ent i
n eq
uity
inst
rum
ents
1
92,7
55.8
0
225
,082
.17
At F
air
valu
e th
roug
h pr
ofit
and
loss
:(a
) Inv
estm
ent i
n m
utua
l fun
ds-
for
site
rest
orat
ion
fund
(Ref
er n
ote
12.2
)
3
0,22
8.72
2
5,08
2.71
In
vest
men
ts
2
22,9
84.5
2
250
,164
.88
12.1
Inve
stm
ents
in e
quity
inst
rum
ents
Part
icul
ars
No.
of S
hare
sA
mou
ntN
o. o
f Sha
res
Am
ount
Unq
uote
d in
vest
men
ts (f
ully
pai
d)
A.
Inv
estm
ents
in a
ssoc
iate
a)
P
etro
Car
abob
o S.
A.
Bol
ivar
10.0
01,
126,
400
4,44
9.55
1,12
6,40
07,
331.
02b)
Car
abob
o In
geni
eria
Y C
onst
rucc
ione
s, S.
AB
oliv
ar1.
0027
50.
3227
50.
29c)
Pet
role
ra In
dove
nezo
lana
SA
USD
4.65
40,0
0031
,105
.72
40,0
0028
,749
.77
d)
S
outh
Eas
t Asi
a G
as P
ipel
ine
Ltd
USD
1.00
16,6
941,
844.
9016
,694
1,14
0.17
e)
T
amba
BV
Euro
10.0
01,
620
9,02
3.35
1,62
08,
805.
72f)
JSC
Van
korn
eft,
Rus
siaR
oubl
e1.
003,
092,
871
112,
329.
023,
092,
871
141,
362.
84g)
Moz
ambi
que
LNG
I C
ompa
ny P
te L
td.
USD
1,00
0.00
--
500
29.9
4h)
Moz
LN
G1
Hol
ding
Com
pany
Lim
ited
USD
1.00
700,
000
67.7
2-
-i)
Falc
on O
il &
Gas
BV
USD
1.00
40
22
,119
.75
4
0 18
,784
.00
Tot
al in
vest
men
ts in
ass
ocia
te18
0,94
0.33
206,
203.
75Le
ss :
Acc
umul
ated
impa
irmen
t4,
337.
66-
Inve
stm
ents
in a
ssoc
iate
s (A
)17
6,60
2.67
206,
203.
75
As a
t Mar
ch 3
1, 2
020
Inve
stm
ent
curr
ency
Face
va
lue/
paid
up
valu
e
As a
t Mar
ch 3
1, 2
019
Annu
al R
epor
t 201
9 - 2
028
0 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
B.
Inve
stm
ents
in jo
int v
entu
res
a)
S
udd
Petro
leum
Ope
ratin
g C
ompa
ny*
USD
1
.00
241.
25-
241.
25-
b)
O
NG
C M
ittal
Ene
rgy
Lim
ited
USD
1.00
24,9
90,0
001,
886.
2524
,990
,000
1,72
9.56
c)
M
ansa
rova
r Ene
rgy
Col
ombi
a Li
mite
dU
SD1.
006,
000
15,9
45.4
06,
000
18,6
61.6
8d)
Him
alay
a En
ergy
Syr
ia B
VEu
ro1.
0045
,000
207.
7345
,000
216.
74T
otal
inve
stm
ents
in jo
int v
entu
res
18,0
39.3
820
,607
.98
Less
: A
ccum
ulat
ed im
pairm
ent (
Ref
er n
ote
12.1
.1)
1,88
6.25
1,72
9.56
Inve
stm
ents
in jo
int v
entu
res(
B)
16,1
53.1
318
,878
.42
Tot
al in
vest
men
ts in
equ
ity in
stru
men
ts (A
+B)
192,
755.
8022
5,08
2.17
Agg
rega
te c
arry
ing
valu
e of
unq
uote
d in
vest
men
ts19
2,75
5.80
225,
082.
17A
ggre
gate
am
ount
of i
mpa
irmen
t in
valu
e of
inve
stm
ents
6,22
3.91
1,72
9.56
12.1
.1M
ovem
ent o
f im
pair
men
t in
valu
e of
equ
ity in
stru
men
ts
Part
icul
ars
For
the
year
end
ed
Mar
ch 3
1, 2
020
For
the
year
end
ed
Mar
ch 3
1, 2
019
Bal
ance
at b
egin
ning
of t
he y
ear
1,72
9.56
1,62
2.35
Rec
ogni
sed
durin
g th
e ye
ar (R
efer
not
e 39
)4,
337.
66-
Effe
ct o
f exc
hang
e di
ffer
ence
s(R
efer
not
e 12
.1.2
)15
6.69
107.
21B
alan
ce a
t end
of t
he y
ear
6,22
3.91
1,72
9.56
12.1
.2R
epre
sent
s exc
hang
e di
ffer
ence
on
acco
unt o
f tra
nsla
tion
of th
e fin
anci
al st
atem
ents
from
func
tiona
l cur
renc
y to
pre
sent
atio
n cu
rren
cy. R
efer
not
e 3.
22 a
nd 4
.1(a
).
Annu
al R
epor
t 201
9 - 2
028
1 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
12.1
.3D
etai
ls o
f joi
nt v
entu
res a
nd a
ssoc
iate
s
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1,
2019
(a)
Sud
d Pe
trole
um O
pera
ting
Com
pany
24.1
25%
24.1
25%
(b)
O
NG
C M
ittal
Ene
rgy
Lim
ited
49.9
8%49
.98%
(c)
M
ansa
rova
r Ene
rgy
Colo
mbi
a Li
mite
d50
%50
%
(d)
H
imal
aya
Ener
gy S
yria
BV
50%
50%
(e)
Pe
tro C
arab
obo
S.A
.11
%11
%
(f)
C
arab
obo
Inge
nier
ia Y
Con
stru
ccio
nes,
S.A
37.9
3%37
.93%
(g)
Pe
trole
ra In
dove
nezo
lana
SA
40%
40%
(h)
So
uth
East
Asi
a G
as P
ipel
ine
Ltd
8.35
%8.
35%
(i)
Tam
ba B
V27
%27
%
(j)
JSC
Van
korn
eft
26%
26%
(k)
M
ozam
biqu
e LN
G I
Com
pany
Pte
Ltd
.-
16%
(l)
Moz
LN
G I
Hol
ding
Com
pany
Ltd
.16
%-
(m)
Fa
lcon
Oil
& G
as B
.V.
40%
40%
Ref
er n
ote
3.7
for m
etho
d fo
llow
ed fo
r acc
ount
ing
of in
vest
men
t in
join
t ven
ture
s and
ass
ocia
tes.
Expl
orat
ion
and
Prod
uctio
n of
hy
droc
arbo
nsIn
corp
orat
ed in
The
Net
herla
nds
havi
ng
oper
atio
ns in
Abu
Dha
bi
Inco
rpor
ated
in M
aurit
ius h
avin
g op
erat
ions
in S
outh
Sud
an
Inco
rpor
ated
in S
inga
pore
hav
ing
oper
atio
ns in
Sin
gapo
re a
nd M
ozam
biqu
e
Rus
sia
Inco
rpor
ated
in T
he N
ethe
rland
s for
BC
-10
Proj
ect,
Bra
zil
Inco
rpor
ated
in H
ong
Kon
g ha
ving
op
erat
ions
in M
yanm
ar
Ven
ezue
la
Colo
mbi
a
Inco
rpor
ated
in T
he N
ethe
rland
s hav
ing
oper
atio
ns in
Syr
ia
Ven
ezue
la
Ven
ezue
laEx
plor
atio
n an
d Pr
oduc
tion
of
hydr
ocar
bons
Expl
orat
ion
and
Prod
uctio
n of
hy
droc
arbo
ns
Prin
cipa
l act
ivity
Nam
e of
join
t ven
ture
s and
ass
ocia
tes
Plac
e of
inco
rpor
atio
n an
d pr
inci
pal
plac
e of
bus
ines
s
Equi
pmen
t Lea
se
Expl
orat
ion
and
Prod
uctio
n of
hy
droc
arbo
ns
Mar
ketin
g an
d sh
ippi
ng o
f liq
uefie
d na
tura
l gas
Hol
ding
com
pany
for e
ntiti
es
unde
rtaki
ng M
arke
ting
and
ship
ping
of l
iqui
fied
natu
ral g
as
*Inv
estm
ent i
n Su
dd P
etro
leum
Ope
ratin
g C
ompa
ny (S
POC
) am
ount
ing
to U
SD 2
41.2
5 ge
ts e
limin
ated
as a
n in
terc
ompa
ny tr
ansa
ctio
n in
Con
solid
ated
Fin
anci
al S
tate
men
ts
Abu
Dha
bi
Expl
orat
ion
and
Prod
uctio
n of
hy
droc
arbo
ns
Expl
orat
ion
and
Prod
uctio
n of
hy
droc
arbo
ns
Expl
orat
ion
and
Prod
uctio
n of
hy
droc
arbo
ns
Expl
orat
ion
and
Prod
uctio
n of
hy
droc
arbo
ns
Serv
ice
prov
ider
Expl
orat
ion
and
Prod
uctio
n of
hy
droc
arbo
ns
Inco
rpor
atio
n in
Cyp
rus h
avin
g op
erat
ions
in
Syr
ia a
nd N
iger
ia
Prop
ortio
n of
ow
ners
hip
inte
rest
/ vot
ing
righ
ts h
eld
by th
e C
ompa
ny
Annu
al R
epor
t 201
9 - 2
028
2 of
373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
a)
(i) Mansarovar Energy Colombia Limited As at March 31, 2020 As at March 31, 2019Non-current assets 27,888.57 38,685.43 Current assets 9,038.65 10,465.89 Non-current liabilities 7,681.82 9,061.84 Current liabilities 3,778.58 4,818.14
Cash and cash equivalents 4,178.25 3,314.42 1,693.46 1,741.05
7,280.80 8,823.09
Mansarovar Energy Colombia Limited For the year ended March 31, 2020
For the year ended March 31, 2019
Revenue 18,982.02 21,973.55 Profit or loss from continuing operations 1,292.76 1,399.42 Other comprehensive income for the year - - Total comprehensive income for the year 1,292.76 1,399.42 Dividends received from the joint venture during the year 4,786.76 5,140.85
The above profit (loss) for the year include the following:Depreciation and amortisation 7,420.24 8,304.20 Interest income 666.94 757.70 Interest expense 6.52 5.96 Income tax expense (income) (316.90) 2,969.48
(ii) JSC Vankorneft As at March 31, 2020 As at March 31, 2019Non-current assets 185,943.15 198,485.03Current assets 103,294.60 178,293.68Non-current liabilities 29,442.67 25,728.81Current liabilities 29,319.88 48,440.23
Cash and cash equivalents 0.37 0.40 15,739.44 15,042.24
29,442.67 25,688.17
JSC Vankorneft For the year ended March 31, 2020
For the year ended March 31, 2019
Revenue 386,151.77 479,998.26 Profit or loss from continuing operations 50,852.38 74,913.22 Other comprehensive income for the year - - Total comprehensive income for the year 50,852.38 74,913.22 Dividends received from the associate during the year 3,956.60 20,082.46
The above profit (loss) for the year include the following:Depreciation and amortisation 11,080.68 40,153.89 Interest income 4,991.48 Interest expense (342.15) - Income tax expense (income) 12,515.63 22,894.47
Summarised financial information in respect of each of the Group’s material joint venture is set out below. The summarizedfinancial information below represents amounts shown in the joint venture’s financial statements prepared in accordance withInd ASs adjusted by the Group for equity accounting purpose.
Summarised financial information of material joint ventures and associates.
Non-current financials liabilities (Excluding trade payables and provisions)
The above amounts of assets and liabilities includes the following:
Current financials liabilities (Excluding trade payables and provisions)
Non-current financials liabilities (Excluding trade payables and provisions)
The above amounts of assets and liabilities includes the following:
Current financials liabilities (Excluding trade payables and provisions)
Annual Report 2019 - 20 283 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
(iii) Petrolera Indovenezolana SA As at March 31, 2020 As at March 31, 2019Non-current assets 31,801.35 31,493.35 Current assets 266,115.06 239,015.19 Non-current liabilities 3,468.45 3,127.42 Current liabilities 210,892.52 192,892.31
Cash and cash equivalents 167.99 176.63 26,262.02 24,870.66
3,468.45 1,976.30
Petrolera Indovenezolana SA For the year ended March 31, 2020
For the year ended March 31, 2019
Revenue 8,494.76 18,056.16 Profit or loss from continuing operations (583.92) 13,714.75 Other comprehensive income for the year - Total comprehensive income for the year (583.92) 13,714.75 Dividends received from the associate during the year -
The above profit (loss) for the year include the following:Depreciation and amortisation 1,869.45 5,061.68 Interest income 0.01 0.01 Interest expense - - Income tax expense (income) 1,286.75 (2,476.72)
(iv) Tamba BV As at March 31, 2020 As at March 31, 2019Non-current assets 16,925.11 19,112.06 Current assets 9,219.20 10,581.45 Non-current liabilities 4,850.65 5,666.15 Current liabilities 4,227.79 6,408.98
Cash and cash equivalents 3,296.06 4,728.36 2,085.44 1,851.09
4,850.65 5,666.15
Tamba BV For the year ended March 31, 2020
For the year ended March 31, 2019
Revenue 3,464.77 11,722.22 Profit or loss from continuing operations 3,654.53 8,716.37 Other comprehensive income for the year - - Total comprehensive income for the year 3,654.53 8,716.37 Dividends received from the associate during the year 5,673.20 18,526.71
- The above profit (loss) for the year include the following: - Depreciation and amortisation - - Interest income 3,464.77 11,722.22 Interest expense 653.84 844.81 Income tax expense (income) 859.49 2,457.41
12.2
Non-current financials liabilities (Excluding trade payables and provisions)
The above amounts of assets and liabilities includes the following:
Current financials liabilities (Excluding trade payables and provisions)
The investments for site restoration in respect of Sakhalin-1, Russia are invested by J P Morgan Chase Bank N.A., the ForeignParty Administrator (FPA) in accordance with the portfolio investment guidelines provided under the Sakhalin-1Decommissioning funding agreement entered into between the FPA and the foreign parties to the Consortium in accordancewith the related production sharing agreement (PSA). The proceeds from the investment will be utilized for decommissioningliability to the Russian State as per the PSA. Refer note 27.
Non-current financials liabilities (Excluding trade payables and provisions)
The above amounts of assets and liabilities includes the following:
Current financials liabilities (Excluding trade payables and provisions)
Annual Report 2019 - 20 284 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
13 Trade receivables
Particulars
Non- current Current Non- current Currenta) Considered good- Unsecured 6,891.74 - 11,471.55b) Having significant increase in credit risk 23,740.97 1,176.89 20,572.16 2,163.74c) Credit impaired 8,160.60 65.67 7,252.35 75.92a) Unsecured, Considered Good - - - -b) Unsecured, Considered Doubtful - - -
Less: Allowance for impairment loss 8,160.60 65.67 7,252.35 75.92Trade receivables 23,740.97 8,068.63 20,572.16 13,635.29
13.1
13.2
13.3 Trade Receivables Breakup
Particulars As at March 31, 2020
As at March 31, 2019
Customers with outstanding balance of more than5% of Trade receivables
38,761.08 41,110.08
Other customers 1,274.79 425.64Trade receivables 40,035.87 41,535.72
13.4
The Company has concentration of credit risk due to the fact that the Company has significant receivables from Oil Marketing Companiesand International Oil Companies (IOCs). However these are reputed National Oil Companies (NOCs).
As at March 31, 2020 As at March 31, 2019
Generally, the Company enters into crude oil sales contracts with reputed Oil Marketing Companies (OMCs) / International Oil Companies(IOCs) / National Oil Companies (NOCs) on the basis of tendering for each of its cargo’s. However, the Company has also entered into somelong-term sales arrangement with Oil Marketing Companies (OMCs)/ International Oil Companies (IOCs) / National Oil Companies (NOCs)for crude oil sales and supply of natural gas.
The Company generally sells its products on an average credit period of around 30 days. In respect of gas sales in some of the projects, theCompany receives payments in advance in accordance with the respective sales contract. In respect of a long term gas sales contract with oneof the national oil companies, a credit period of 40 days is allowed. Interest is not charged on trade receivables for the applicable credit periodfrom the date of invoice. For delayed period of payments, interest is charged as per respective arrangements, which is generally determined asone month LIBOR + 2% per annum over the applicable Bank Rate on the outstanding balance.
The Company assesses impairment loss on trade receivables on the basis of facts and circumstances relevant to each customer. Usually,Company collects all its receivables within the contractually allowed credit periods.
Annual Report 2019 - 20 285 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
13.5 Age of trade receivable
Particulars As at March 31, 2020
As at March 31, 2019
Within the credit period 7,303.66 13,435.79 1-30 days past due 764.97 1,305.64 31-90 days past due - 1,079.80 More than 90 days past due 31,967.23 25,714.49 Total 40,035.86 41,535.72
13.6 Movement of allowance for credit impaired receivables
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Balance at beginning of the year 7,328.27 2,017.10Addition in expected credit loss allowance on trade receivables calculated at lifetime expected credit loss allowance (Refer note 13.6.1)
236.04 5,319.56
Write back during the year (16.10) (14.11)
Effect of exchange differences (Refer note 13.6.2) 678.06 5.73
Balance at end of the year 8,226.27 7,328.27
13.6.1
13.6.2 Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency. Refernote 3.22 and 4.1(a).
During the year, trade receivables in respect of Sudan amounting to ₹ 31,748.82 million has been assessed for lifetime expected credit lossmethod and a charge of ₹ 236.04 million has been made. The total outstanding provision against these receivables stands at ₹ 8,007.85million.
Annual Report 2019 - 20 286 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
14 Loans
ParticularsNon- current Current Non- current Current
(a) Security deposits - Considered good- Unsecured 30.83 21.72 33.48 4.24
(b) Loans to employees (Refer note no. 14.1) - Considered good- Secured 130.06 49.09 119.33 61.42 - Considered good- Unsecured 8.79 11.48 11.07 10.73
(c) Loans to Related Parties - Considered good- Unsecured 4,892.65 2,389.34 5,492.99 2,190.86 - Credit impaired 66.80 - 61.25 -- Provision for doubtful loans (66.80) - (61.25) -
5,062.33 2,471.63 5,656.87 2,267.25
14.1 Loans to employees includes an amount of ₹ 1.03 million (As at March 31, 2019 ₹0.72 million) outstanding from key managerialpersonnel. (Refer note 46.2.4)
As at March 31, 2020 As at March 31, 2019
Annual Report 2019 - 20 287 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
15 Deposits for site restoration fund
Particulars As at March 31, 2020 As at March 31, 2019
Deposits for site restoration fund 1,313.83 958.211,313.83 958.21
15.1 Deposit for site restoration (decommissioning) in respect of Block 06.1, Vietnam is made in a separate bank account maintained forfunding of decommissioning in accordance with the decision of the Government of Vietnam dated March 21, 2007 and Agreementdated December 10, 2014 for decommissioning fund security between Vietnam Oil and Gas Group, TNK Vietnam B.V. and ONGCVidesh Limited. Refer note 27.
Annual Report 2019 - 20 288 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
16 Finance lease receivables
Particulars As at March 31, 2020 As at March 31, 2019
Finance lease receivables (Refer note 16.1 and 16.2)Unsecured, considered doubtful 5,641.71 5,219.59Less: Allowance for uncollectible lease payments 5,641.71 5,219.59
- -
16.1 Movement of Impairment for doubtful finance lease receivables
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Balance at beginning of the year 5,219.59 4,840.47Recognized during the period (47.68) 59.89Effect of exchange differences (Refer note 16.1.1) 469.80 319.23Balance at end of the year 5,641.71 5,219.59
16.1.1
16.2
Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency.Refer note 3.22 and 4.1(a).
The Company had completed the 12”X 741 Kms multi-product pipeline from Khartoum refinery to Port Sudan for the Ministry ofEnergy and Mining of the Government of Sudan (GOS) on Build, Own, Lease and Transfer (BOLT) basis and handed over the samefor operation to GOS during the financial year 2005-06. The project was implemented in consortium with Oil India Limited,Company’s share being 90%. Non-current finance lease amount shows the non-receipted lease payments against which 100%allowance has been made.
Annual Report 2019 - 20 289 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
17 Other financial assets(at amortised cost wherever applicable)
ParticularsNon- current Current Non- current Current
(a) Derivatives assets measured at fair value through profit and loss (Refer note 17.1)
44.44 137.34 113.10 169.17
(b) Advances recoverable in cash- Unsecured, considered Good 5,261.20 3,908.44 5,078.01 2,767.07 Less: Impairment 44.40 - - -
(c) Receivable from Holding Company- Unsecured, considered Good - 152.24 - -
(d) Receivable from Joint Venture partners - Unsecured, considered Good - 3,200.63 - 2,769.46 Less: Impairment calculated at lifetime expected credit loss (Refer note 17.3)
- 214.56 - 0.69
(e) Receivable from operators- Unsecured, considered Good - 740.13 - 579.16 Less: Impairment (Refer note 17.3) - 4.88 - 78.87
(e) Deposit with banks - 39,361.42 - 11,083.98
(f) Interest accrued on- bank depositsUnsecured, Considered Good - 342.83 - 69.80 - Site restoration fundUnsecured, Considered Good - 0.61 - 0.56 - Loan to subsidiaries Unsecured, Considered Good - - - -
(g) Carried Interest (Refer note 17.2)- Unsecured, Considered Good - - - - - Unsecured, Considered Doubtful - - - - Less: Impairment for doubtful carried interest (Refer note 17.3)
- - - -
(h) Other financial assets (Refer note no. 17.4) 31,159.50 329.32 28,571.13 410.38 Total 36,420.74 47,953.52 33,762.24 17,770.02
17.1
17.2
As at March 31, 2020 As at March 31, 2019
ONGC Videsh Vankorneft Pte Ltd, a step-down subsidiary, has entered into options contract covering JPY 5.7 billion (₹ 3,979.91 million) (in previousperiod JPY 5.7 billion (₹ 3,559.32 million)) out of the principal amount of 38 Billion JPY Facility Agreement (₹ 26,532.72 million) for which the firsttranche of Principal payment is to be made in April 2022. There is MTM gain position of ₹ 137.34 million as on 31.03.2020 (₹ 169.17 million as on31.03.2019) for these options contracts.
The Company has 25% participating interest (PI) in the Satpayev Exploration Block Kazakhstan. As per the carry agreement, the Company is financingthe expenditure ( 25% own PI plus 75% PI of Kazmunaygas (KMG)) in the exploration blocks during the exploration and appraisal period. During thefinancial year 2018-19, the company has written off the carried interest in the block, as the amount is not recoverable.
ONGC Videsh has entered into options contract covering Euro 52.5 million (₹ 4,341.53 million) (in previous year covering Euro 35 million (₹ 2,721.51million)) out of the principal amount of 2.75% Euro 525 million Bonds (₹ 43,415.34 million). There is MTM gain position of ₹ 44.44 million as on31.03.2020 (MTM gain of ₹ 113.10 million as on 31.03.2019) for these options contracts.
Annual Report 2019 - 20 290 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
17.3
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
For the year ended March 31, 2020
For the year ended March 31, 2019
Balance at beginning of the year - 14,389.71 0.69 293.20 Recognized during the year - (10,299.15) 200.88 (315.90)Effect of exchange differences (Refer note 17.3.1) - (4,090.56) 12.99 23.39 Balance at end of the year - - 214.56 0.69
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Balance at beginning of the year 78.87 563.03 Recognized during the year (76.24) (526.90)Effect of exchange differences (Refer note 17.3.1) 2.25 42.74 Balance at end of the year 4.88 78.87
17.3.1
17.4 Other financial assets include receivables of ONGC San Cristobal BV from its associate Petrolera Indovenezolana SA (PIVSA) on account ofoutstanding dividend as at March 31, 2020 is ₹ 31,159.50 million (as at March 31, 2019 ₹ 28,571.13 million). The underlying trade receivables in PIVSAbooks have been provided for as per lifetime expected credit loss method.
Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency. Refer note 3.22and 4.1(a).
Movement of impairment for:
Receivable from Joint Venture partner
Receivable from Operator
Doubtful Carried interest
Annual Report 2019 - 20 291 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
18 Tax assets /Liabilities (net)
Non-current Tax Assets (Net)
Particulars As at March 31, 2020 As at March 31, 2019Non- Current tax assetsTaxes paid 11,629.28 16,550.55 Non- Current tax liabilitiesIncome tax payable 9,970.89 9,970.82
1,658.39 6,579.73
Current Tax liabilities (Net)
Particulars As at March 31, 2020 As at March 31, 2019Current tax assetsTaxes paid 1,998.60 1,460.47 Current tax liabilitiesIncome tax payable 4,081.82 4,701.74
2,083.22 3,241.27
The above non-current tax liabilities include provisions on account of disputed income tax demands in India underthe Income tax Act 1961 amounting to ₹ 748.65 Million as at March 31, 2020 (₹748.65 Million as at March 31,2019) in respect of disputed disallowances/additions made by the Assessing Officer on tax positions not covered byfavorable orders from Appellate authorities.
Annual Report 2019 - 20 292 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
19 Other Assets
ParticularsNon- current Current Non- current Current
(a) Advance to Employees - 1.19 - 0.89
(b) DepositsWith government/tax authorities - 1,956.23 - 1,149.30
(c) Carried Interest- Unsecured, Considered Good 18,973.75 - 15,199.29 -- Unsecured, Considered Doubtful 227.83 - 193.59 -Less: Impairment for carried interest 227.83 - 193.59 - (Refer notes 19.1 to 19.3)
(d) Prepaid expenses for underlift quantity - 101.29 - 118.09
(e) Prepayments- Guarantee charges 1,055.83 433.24 692.59 401.03- Others - 810.50 0.33 466.07
(f) Others 5.34 0.82 3.91 965.66
Total 20,034.92 3,303.27 15,896.12 3,101.04
19.1
19.2
19.3
Particulars For the year ended March
31, 2020
For the year ended March
31, 2019Balance at beginning of the year 193.59 155.35 Recognized during the year 15.69 28.27 Effect of exchange differences 18.55 9.97 (Refer note 19.3.1)Balance at end of the period 227.83 193.59
19.3.1
The Company has participating interest (PI) in development project Area -1, Mozambique. As per the carry agreement, theCompany is financing expenditure in the project for the national oil company ("carried interest"), which is shown under categoryUnsecured, Considered Good.
The Company also has participating interest (PI) in Blocks 5A South Sudan, SS-04 Bangladesh, SS-09 Bangladesh, EP-3Myanmar and B-2 Myanmar. As per the carry agreements in respect of these exploratory blocks the carried interest during theexploratory period will be refunded in the event of commercial production from the project. The same is shown above asunsecured, considered doubtful.
Represents exchange difference on account of translation of the financial statements from functional currency to presentationcurrency. Refer note 3.22 and 4.1(a).
Movement of Impairment for doubtful carried interest
Impairment has been made towards the amount of carried interest as at March 31, 2020 is ₹ 227.83 million (as at March 31, 2019₹193.59 million) with respect to Blocks 5A South Sudan, SS-04 Bangladesh, SS-09 Bangladesh, EP-3 Myanmar and B-2Myanmar being under exploration period, as there was no certainty of commercial discovery in the exploration stage.
As at March 31, 2020 As at March 31, 2019
Annual Report 2019 - 20 293 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
20 Inventories
Particulars
Finished goods (Refer note 20.1) 1,073.50 1,851.11Stores and spares (Refer note 20.2) 12,509.34 13,582.84 12,418.89 14,270.00
Less: Allowance for obsolete / non-moving inventories 4,237.62 3,316.07Total 9,345.22 10,953.93
20.1
20.2 Stores and spares (net of provisions) includes ₹ 8,451.96 million (as at March 31, 2019 ₹ 8,980.75 million ) which represents thecompany's share appearing in the books of Joint Operators.
As at March 31, 2020 As at March 31, 2019
In case of joint operators where the property in crude oil produced does not pass on upto a specific delivery point, the stock ofcrude oil till such delivery point is not recognized by the Company.
Annual Report 2019 - 20 294 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
21 Cash and cash equivalents
Particulars As at March 31, 2020 As at March 31, 2019Balances with banks 13,896.59 12,620.98Bank deposits for original maturity upto 3 months 25,944.59 17,754.83Remittances in transit (Refer note 21.5) 945.97 -Cash on hand 3.10 3.29
40,790.25 30,379.10
21.1
21.2
21.3
21.4
21.5 Remittances in transit represent amounts transferred from the books of ONGC Videsh and not received by subsidiary's bankaccount as at year end. This amount was received by the subsidiary subsequent to the year end.
The deposits maintained by the Company with banks comprise of short term deposits, which can be withdrawn by the Companyat any point without penalty on the principal.
Cash on hand represents cash balances held by overseas branches in respective local currencies and includes ₹ 1.42 million heldby imprest holders (as at March 31, 2019 ₹ 1.19 million).
Balances with bank includes amount held by overseas branches in Libya which are restricted for use as at 31 March 2020 ₹10.25 Million (as at March 31, 2019 ₹ 9.40 million).
Cash and cash equivalents include ₹ 5,927.26 million (as at March 31, 2019 ₹ 348.39 million) which represents the company'sshare appearing in the books of Joint Operators.
Annual Report 2019 - 20 295 of 373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
₹ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
22E
quity
shar
e ca
pita
l
Part
icul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch
31, 2
019
Equi
ty sh
are
capi
tal
150,
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0,00
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Aut
hori
sed:
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0 eq
uity
shar
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f ₹ 1
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ach
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000.
0025
0,00
0.00
Issu
ed a
nd su
bscr
ibed
: 1,
500,
000,
000
equi
ty sh
ares
of ₹
100
eac
h15
0,00
0.00
150,
000.
00
Fully
pai
d eq
uity
shar
es:
1,50
0,00
0,00
0 eq
uity
shar
es o
f ₹ 1
00 e
ach
fully
pai
d up
150,
000.
0015
0,00
0.00
Tot
al15
0,00
0.00
150,
000.
00
22.1
Rec
onci
liatio
n of
equ
ity sh
ares
out
stan
ding
at t
he b
egin
ning
and
at t
he e
nd o
f the
rep
ortin
g pe
riod
:
Shar
e ca
pita
l(`̀
in m
illio
n)
Bal
ance
as a
t Mar
ch 3
1, 2
018
1,50
0,00
0,00
015
0,00
0.00
Issu
e of
equ
ity sh
are
capi
tal
--
Bal
ance
as a
t Mar
ch 3
1, 2
019
1,50
0,00
0,00
015
0,00
0.00
Issu
e of
equ
ity sh
are
capi
tal
--
Bal
ance
as a
t Mar
ch 3
1, 2
020
1,50
0,00
0,00
015
0,00
0.00
Part
icul
ars
Num
ber
of
shar
es
Annu
al R
epor
t 201
9 - 2
029
6 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
₹ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
22.2
Ter
ms /
rig
hts a
ttac
hed
to e
quity
shar
es
22.3
Det
ails
of s
hare
s hel
d by
the
hold
ing
com
pany
and
its n
omin
ees:
-
No.
of s
hare
s A
mou
ntN
o. o
f sha
res
Am
ount
Oil
and
Nat
ural
Gas
Cor
pora
tion
Lim
ited,
the
hold
ing
com
pany
and
its n
omin
ees
1,50
0,00
0,00
015
0,00
0.00
1,50
0,00
0,00
015
0,00
0.00
22.4
22.5
22.6
Det
ails
of s
hare
hold
ers h
oldi
ng m
ore
than
5%
shar
es in
the
Com
pany
are
as u
nder
:-
No.
of S
hare
s%
hol
ding
No.
of S
hare
s%
hol
ding
Oil
and
Nat
ural
Gas
Cor
pora
tion
Lim
ited,
the
hold
ing
com
pany
and
its n
omin
ees
1,50
0,00
0,00
010
0%1,
500,
000,
000
100%
The
Com
pany
has
only
one
clas
sof
equi
tysh
ares
havi
nga
par
valu
eof
₹10
0pe
rsh
are.
Each
hold
erof
equi
tysh
ares
isen
title
dto
one
vote
per
shar
e.Th
edi
vide
nd p
ropo
sed
by th
e B
oard
of D
irect
ors i
s sub
ject
to th
e ap
prov
al o
f the
shar
ehol
ders
in th
e en
suin
g A
nnua
l Gen
eral
Mee
ting.
Nam
e of
equ
ity sh
are
hold
ers
As a
t Mar
ch 3
1, 2
020
As a
t Mar
ch 3
1, 2
019
Inth
eev
ento
fliq
uida
tion
ofth
eC
ompa
ny,t
heho
lder
sof
equi
tysh
ares
will
been
title
dto
rece
ive
rem
aini
ngas
sets
ofth
eC
ompa
ny,a
fter
dist
ribut
ion
ofal
lpr
efer
entia
l am
ount
s. T
he d
istri
butio
n w
ill b
e in
pro
porti
on to
the
num
ber o
f equ
ity sh
ares
hel
d by
the
shar
ehol
ders
.
Nam
e of
equ
ity sh
are
hold
ers
As a
t Mar
ch 3
1, 2
020
As a
t Mar
ch 3
1, 2
019
Agg
rega
tenu
mbe
rofb
onus
shar
eal
lotte
d,sh
are
allo
tted
purs
uant
toco
ntac
twith
outp
aym
entb
eing
rece
ived
inca
shan
dsh
are
boug
htba
ckdu
ring
the
perio
dof
5ye
ar im
med
iate
ly p
rece
ding
the
repo
rting
dat
e: N
IL
Shar
e re
serv
ed fo
r iss
ue u
nder
opt
ion
and
cont
ract
or c
omm
itmen
t for
sale
of s
hare
or d
isin
vest
men
t, in
clud
ing
the
inco
mpl
ete
term
s and
con
ditio
n: N
IL
Annu
al R
epor
t 201
9 - 2
029
7 of
373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
23 Other Equity
Particulars As at March 31, 2020 As at March 31, 2019
A. Shareholder’s advance pending allotment of shares - -
B. Deemed capital contribution (Refer note 23.1) 8,406.36 6,151.57
C. Reserve and Surplus- Capital reserve 174.08 174.08- Debenture redemption reserve 62,006.02 64,591.57- General reserve 18,930.24 22,370.99- Retained earnings 50,938.54 46,635.67- Legal Reserve 56,017.85 56,017.85
D. Exchange differences on translating the financial statements of foreign operations (Refer note 23.7)
152,308.09 141,578.20
Less: Non controlling interests share (25.92) (22.01)348,807.10 337,541.94
Particulars As at March 31, 2020 As at March 31, 2019
(a) Capital reserves (Refer note 23.2) Balance at beginning of year 174.08 174.08Changes during the year - -Balance at end of period 174.08 174.08
(b) Debenture Redemption Reserve (Refer note 23.3 and 23.4)
Balance at beginning of year 64,591.57 79,175.20Transfer from Retained Earnings - -Transfer to General Reserve (2,585.55) (14,583.63)Balance at end of year 62,006.02 64,591.57
(c) General Reserve (Refer note 23.5)Balance at beginning of year 22,370.99 11,162.34Transfer from retained earning 122.02 230.86Transfer from Debenture redemption reserve 2,585.55 14,583.63Utilised for buyback of shares by ONGC BTC Limited - 10.82Dividends (5,100.00) (3,000.00)Tax on dividend distribution (1,048.32) (616.66)Balance at end of year 18,930.24 22,370.99
(d) Retained earnings (Refer note 23.6)Balance at beginning of year 46,635.67 36,953.17Profit / (loss) for the year 4,351.92 16,796.68Other comprehensive income arising from remeasurement of defined benefit obligation, net of income tax
72.97 7.03
Transfer to Legal reserve - (6,890.35)Transfer to General reserve (122.02) (230.86)Transfer to Debenture redemption reserve - -Disposal of Non-controlling interest - -Balance at end of year 50,938.54 46,635.67
Annual Report 2019 - 20 298 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
(e) Exchange differences in translating the financial statements of foreign operations (Refer note 23.8)
Balance at beginning of year 141,578.20 132,613.52Generated during the year 10,729.89 8,964.68Balance at end of period 152,308.09 141,578.20
23.1
(i)
(ii)
(iii)
23.2
23.3 The Debenture redemption reserve position is as under
Particulars As at March 31, 2020 As at March 31, 2019
(i) Unsecured 8.54 % 10 Years Non-Convertible Redeemable Bonds in the nature of Debentures- Series II*
- 2,585.55
(ii) Unsecured 4.625% 10 year USD Bonds - USD 750 million 12,299.86 12,299.86(iii) Unsecured 3.75% 10 year USD Bonds - USD 500 million 12,153.02 12,153.02(iv) Unsecured 2.75% 7 year EUR Bonds - EUR 525 million 12,946.68 12,946.68(v) Unsecured 3.25% 5 year USD Bonds - USD 750 million 24,606.46 24,606.46Total 62,006.02 64,591.57
23.4
23.5
23.6
23.7
Debenture redemption reserve is created by the Company out of the Retained earnings for the purpose of redemption ofDebentures / Bonds when they are due for redemption. This reserve remains invested in the business activities of the Company.
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the generalreserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, itemsincluded in the general reserve will not be reclassified subsequently to the statement of profit and loss.
Exchange differences in translating the financial statements from functional currency USD ($) to presentation currency INR (₹) isrecognised as an item of Other Comprehensive Income that will be reclassified to profit or loss. Refer note 3.22 and 4.1(a).
Capital reserve is recognized by the Company in respect of gains on the sale of a part of the participating interest in respect ofBlock 06.1, Vietnam where the consideration received for partial farm out in unproved property was not higher than the total cost.
The amount of ₹ 8,406.36 million (as at March 31, 2019 ₹ 6,151,57 million) shown as deemed capital contribution includes:
₹ 3,492.63 million (as at March 31, 2019 ₹ 2,745.51 million) towards the fair value of financial guarantee given by the parentcompany ONGC without any consideration.₹ 1,600.36 million (as at March 31, 2019 ₹ 1,600.36 million) towards fair value of interest free loan obtained from the parentcompany ONGC..The Deemed capital contribution of ₹ 3,313.37 million (as at March 31, 2019 ₹ 1,805.70 million) has been recognized insubsidiary Beas Rovuma Energy Mozambique Ltd.
The amount that can be distributed by the Company as dividends to its equity shareholders is determined considering therequirements of the Companies Act, 2013.
In respect of the year ended March 31, 2019, the Company has declared and paid a final dividend of ₹ 3.40 per share (previousyear ₹ 2.00 per share) of fully paid equity shares of par value of ₹ 100 each in its Annual General Meeting held on August 29,2019.
The Board of Directors has recommended dividend of ₹ 2.00 per share for the year ended March 31, 2020 (Previous year ₹ 3.40per share).
* Unsecured 8.54% 10 Years Non- Convertible Redeemable Bonds in the nature of Debenture - Series II - INR 3,700 Millionrepaid on January 6, 2020.
Annual Report 2019 - 20 299 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
24 Non-controlling interests
Particulars As at March 31, 2020 As at March 31, 2019
Balance at beginning of year 15,477.65 14,510.89 Share of profit for the year (188.24) (26.10)Non-controlling interests arising during the year - - Effect of exchange differences (Refer note 24.3) 1,589.89 992.86 Balance at end of year 16,879.30 15,477.65
24.1
Particulars As at March 31, 2020 As at March 31, 2019Name of subsidiaryPlace of incorporation and principal place of business
Proportion of ownership interests and voting rights held by non-controlling interests
40% 40%
Profit (loss) allocated to non-controlling interests of material subsidiaries (2.30) (3.86)
Accumulated non-controlling interests of material subsidiaries 15,821.74 14,505.88 Individually immaterial subsidiaries with non-controlling interests 1,057.56 971.77 Total accumulated non-controlling interests 16,879.30 15,477.65
24.2
Particulars As at March 31, 2020 As at March 31, 2019Non-current assets 55,374.35 39,695.78 Current assets 1,385.38 1,224.06 Non-current liabilities - - Current liabilities 2,374.52 481.44 Equity attributable to owners of the Company 32,631.13 24,263.05 Non-controlling interests 21,754.08 16,175.36
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Revenue 9.60 15.42 Expenses 15.35 25.06 Profit (loss) for the year (5.75) (9.64)
Profit (loss) attributable to owners of the Company (3.45) (5.78)Profit (loss) attributable to the non-controlling interests (2.30) (3.86)Profit (loss) for the year (5.75) (9.64)
Other comprehensive income attributable to owners of the Company - -
Other comprehensive income attributable to the non-controlling interests - -
Other comprehensive income for the year - -
Total comprehensive income attributable to owners of the Company (3.45) (5.78)
Total comprehensive income attributable to the non-controlling interests (2.30) (3.86)
Total comprehensive income for the year (5.75) (9.64)
Dividends paid to non-controlling interests - -
24.3 Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency.Refer note 3.22 and 4.1(a).
Details of non-wholly owned subsidiaries of the Group that have material non-controlling interest:
Incorporated in Republic of Mauritius having operations in Mozambique
Beas Rovuma Energy Mozambique Limited
Summarised financial information in respect of the Groups’s subsidiary that have material non-controlling interest i.e. Beas RovumaMozambique Ltd. is set out below. The summarized financial information below represents amounts before intragroup eliminations.
Annual Report 2019 - 20 300 of 373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
25B
orro
win
gs
Part
icul
ars
Non
- cur
rent
Cur
rent
Non
- cur
rent
Cur
rent
Uns
ecur
ed –
at a
mor
tised
cos
t (i)
Bon
ds (o
ther
tha
n `
curr
ency
) (R
efer
not
e 25
.1)
212,
349.
65-
195,
689.
7251
,574
.39
(ii)
N
on-c
onve
rtibl
e re
deem
able
deb
entu
res (
Ref
er n
ote
25.2
)-
--
3,70
0.00
(iii)
Te
rm lo
ans f
rom
ban
k (R
efer
not
e 25
.3)
153,
228.
9457
,757
.71
165,
074.
96-
(vi)
Lo
an fr
om re
late
d pa
rty29
7.92
-27
9.55
-T
otal
365,
876.
5157
,757
.71
361,
044.
2355
,274
.39
25.1
Bon
ds (o
ther
tha
n ₹
curr
ency
)
Part
icul
ars
As a
t Mar
ch
31, 2
020
As a
t Mar
ch
31, 2
019
USD
600
mill
ion
unse
cure
d no
n-co
nver
tible
Reg
S B
onds
45,1
59.1
141
,391
.57
USD
750
mill
ions
uns
ecur
ed n
on-c
onve
rtibl
e R
eg S
Bon
ds56
,165
.20
51,4
99.6
5U
SD 5
00 m
illio
ns u
nsec
ured
non
-con
verti
ble
Reg
S B
onds
37,7
01.1
034
,569
.33
USD
400
mill
ion
unse
cure
d no
n-co
nver
tible
Reg
S B
onds
30,1
67.3
727
,649
.55
EUR
525
mill
ions
uns
ecur
ed E
uro
Bon
ds43
,156
.87
40,5
79.6
2U
SD 7
50 m
illio
ns u
nsec
ured
non
-con
verti
ble
Reg
S B
onds
-51
,574
.39
Tot
al21
2,34
9.65
247,
264.
11
The
term
of a
bove
bon
d ar
e m
entio
ned
belo
w:
Part
icul
ars
Lis
ted
inIs
sue
Pric
eD
enom
inat
ion
Dat
e of
loan
is
sue
Due
dat
e of
M
atur
ities
C
oupo
n
(i)
U
SD 6
00 m
illio
n un
secu
red
non-
conv
ertib
le R
eg S
Bon
dsSi
ngap
ore
Exch
ange
(S
GX
)
99.8
10%
US$
200
,000
an
d in
tegr
al
mul
tiple
s of
US$
1,0
00 in
ex
cess
ther
eof.
27-J
ul-1
627
-Jul
-26
3.75
0%,
paya
ble
sem
i-an
nual
ly in
ar
rear
s
(ii)
U
SD 7
50 m
illio
n un
secu
red
non-
conv
ertib
le R
eg S
Bon
dsSi
ngap
ore
Exch
ange
(S
GX
)
99.4
54%
US$
200
,000
an
d in
tegr
al
mul
tiple
s of
US$
1,0
00 in
ex
cess
ther
eof.
15-J
ul-1
415
-Jul
-24
4.62
5%,
paya
ble
sem
i-an
nual
ly in
ar
rear
s
(iii)
U
SD 5
00 m
illio
n un
secu
red
non-
conv
ertib
le R
eg S
Bon
dsSi
ngap
ore
Exch
ange
(S
GX
)
99.9
50%
US$
200
,000
an
d in
tegr
al
mul
tiple
s of
US$
1,0
00 in
ex
cess
ther
eof.
7-M
ay-1
37-
May
-23
3.75
%,
paya
ble
sem
i-an
nual
ly in
ar
rear
s
As a
t Mar
ch 3
1, 2
020
As a
t Mar
ch 3
1, 2
019
Annu
al R
epor
t 201
9 - 2
030
1 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
(iv)
USD
400
mill
ion
unse
cure
d no
n-co
nver
tible
Reg
S B
onds
Sing
apor
e Ex
chan
ge
(SG
X)
100.
000%
US$
200
,000
an
d in
tegr
al
mul
tiple
s of
US$
1,0
00 in
ex
cess
ther
eof.
27-J
ul-1
627
-Jan
-22
2.87
5%,
paya
ble
sem
i-an
nual
ly in
ar
rear
s
(v)
EU
R 5
25 m
illio
n un
secu
red
Euro
Bon
dsFr
ankf
urt
Stoc
k Ex
chan
ge
99.6
23%
Euro
100
,000
an
d m
ultip
les
of E
uro
1,00
0 th
erea
fter.
15-J
ul-1
415
-Jul
-21
2.75
%,
paya
ble
annu
ally
in
arre
ars
Rep
aid
duri
ng th
e ye
ar(i)
U
SD 7
50 m
illio
n un
secu
red
non-
conv
ertib
le R
eg S
Bon
dsSi
ngap
ore
Exch
ange
(S
GX
)
99.5
98%
US$
200
,000
an
d in
tegr
al
mul
tiple
s of
US$
1,0
00 in
ex
cess
ther
eof.
July
15,
201
4Ju
ly 1
5, 2
019
3.25
%,
paya
ble
sem
i-an
nual
ly in
ar
rear
s
25.2
Non
-Con
vert
ible
Red
eem
able
Deb
entu
re (R
upee
Bon
ds)
Part
icul
ars
Am
ount
Dat
e of
Issu
eD
ate
of
rede
mpt
ion
Cou
pon
Uns
ecur
ed n
on-c
onve
rtibl
e re
deem
able
bon
ds in
the
natu
re o
f D
eben
ture
s- S
erie
s II o
f fac
e va
lue ₹
1 m
illio
n ea
ch3,
700.
006-
Jan-
106-
Jan-
208.
54%
, pay
able
an
nual
ly in
ar
rear
s
The
term
of N
on-C
onve
rtibl
e R
edee
mab
le D
eben
ture
(Rup
ee B
onds
) is g
iven
bel
ow:
The
abov
ede
bent
ures
wer
elis
ted
onN
atio
nalS
tock
Exch
ange
ofIn
dia
Ltd.
(NSE
).Th
ede
bent
ures
wer
egu
aran
teed
byO
ilan
dN
atur
alG
asC
orpo
ratio
nLi
mite
d,th
epa
rent
com
pany
.Fur
ther
the
Com
pany
was
requ
ired
tom
aint
ain
100%
asse
tcov
eras
perL
istin
gA
gree
men
tfor
Deb
tSec
uriti
es.T
here
was
nope
riodi
calp
ut/c
allo
ptio
n.Th
e un
secu
red
8.54
% 1
0 Y
ears
Non
- Con
verti
ble
Red
eem
able
Bon
ds in
the
natu
re o
f Deb
entu
re -
Serie
s II w
ere
repa
id o
n Ja
nuar
y 6,
202
0.
All
the
abov
ebo
nds
are
guar
ante
edfo
rre
paym
ento
fpr
inci
pala
ndpa
ymen
tof
inte
rest
byO
ilan
dN
atur
alG
asC
orpo
ratio
nLi
mite
d,th
epa
rent
com
pany
.The
reis
nope
riodi
cal p
ut/ c
all o
ptio
n. T
he b
onds
are
repa
yabl
e in
full
(bul
let r
epay
men
t) on
mat
urity
dat
e.
Annu
al R
epor
t 201
9 - 2
030
2 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
25.3
Ter
m lo
an fr
om b
anks
25.3
.1Th
e te
rm o
f ter
m lo
ans a
re g
iven
bel
ow:
USD
1,0
00 m
illio
n Te
rm lo
an(R
efer
not
e 25
.3.2
)74
,649
.72
-30
-Mar
-20
Bul
let
repa
ymen
t on
Mar
ch 3
0,
2025
Libo
r + 0
.95%
pa
yabl
e qu
arte
rly/h
alf
year
ly
USD
500
mill
ion
Term
loan
(Ref
er n
ote
25.3
.3)
37,4
75.8
2-
12-J
ul-1
9B
ulle
t re
paym
ent o
n Ju
ly 1
2, 2
024
Lib
or +
1%
pa
yabl
e qu
arte
rly/h
alf
year
ly
USD
775
mill
ion
(Pre
viou
s yea
r USD
1,7
75 M
illio
n) T
erm
loan
(Ref
er n
ote
25.3
.2)
57,7
57.7
112
1,29
5.20
27-N
ov-1
5B
ulle
t re
paym
ent o
n N
ovem
ber 2
7,
2020
Lib
or +
0.9
5%
paya
ble
quar
terly
USD
500
mill
ion
Term
loan
(Ref
er n
ote
25.3
.4)
14,7
55.2
4 20
,263
.64
26-A
pr-1
7In
5 e
qual
in
stal
men
ts
falli
ng 1
5, 2
7,
39, 5
1 an
d 60
m
onth
s fro
m
the
draw
dow
n da
te
Lib
or +
0.7
6%
paya
ble
quar
terly
JPY
38
billi
on T
erm
loan
(Ref
er n
ote
25.3
.4)
26,3
48.1
6 23
,516
.12
26-A
pr-1
7In
3 e
qual
in
stal
men
ts
falli
ng d
ue a
t th
e en
d of
Y
ears
5, 6
and
7
from
the
draw
dow
n da
te.
Lib
or +
0.4
7%
paya
ble
quar
terly
25.3
.2
25.3
.3
25.3
.4
25.3
.5
As a
t Mar
ch
31, 2
019
Cou
pon
The
abov
eTe
rmlo
anha
dbe
enob
tain
edfro
ma
synd
icat
eof
com
mer
cial
bank
sto
refin
ance
the
term
loan
take
nto
part
finan
ceac
quis
ition
of10
%st
ake
inA
rea
1,M
ozam
biqu
e fro
m A
nada
rko.
The
com
pany
obta
ined
aTe
rmlo
anam
ount
ing
toU
SD1,
000
Mill
ion
onM
arch
30,2
020
from
asy
ndic
ate
ofco
mm
erci
alba
nks
topa
rtre
finan
ceU
SD1,
775
Mill
ion
term
loan
. The
pro
ceed
s of t
his l
oan
wer
e us
ed to
pre
pay
the
Term
Loa
n am
ount
ing
to U
SD 1
,000
mill
ion
on M
arch
30,
202
0.Th
e Te
rm lo
an is
repa
yabl
e in
full
(bul
let r
epay
men
t) on
mat
urity
dat
e.
ON
GC
Vid
esh
inco
rpor
ated
aw
holly
owne
dsu
bsid
iary
ON
GC
Vid
esh
Sing
apor
ePt
eLt
d(“
OV
SL”)
.OV
SLha
sin
turn
inco
rpor
ated
aw
holly
-ow
ned
subs
idia
ryO
NG
CV
ides
hV
anko
rnef
tPte
Ltd
(“O
VV
L”).
OV
VL
acqu
ired
26%
shar
esof
JSC
Van
korn
eft(
15%
inM
ay20
16an
d11
%in
Oct
ober
2016
)and
rais
edtw
ose
para
tesy
ndic
ated
brid
ge lo
ans f
rom
inte
rnat
iona
l ban
ks to
mee
t the
pur
chas
e co
nsid
erat
ion
requ
irem
ents
. Su
bseq
uent
ly,t
wo
sepa
rate
faci
lity
synd
icat
edlo
ans
from
SBIo
fU
SD50
0m
illio
n(a
vaile
dto
the
exte
ntof
USD
491.
74m
illio
n)an
dSM
BC
ofJP
Y38
billi
onw
ere
avai
led
onA
pril
26,2
017
tore
pay
the
outs
tand
ing
bala
nce
ofbr
idge
loan
faci
lity.
As
onM
arch
31,2
020,
outs
tand
ing
amou
nts
wer
eU
SD19
6.69
mill
ion
&JP
Y38
billi
on re
spec
tivel
y ag
ains
t USD
500
mill
ion
faci
lity
and
JPY
38
billi
on fa
cilit
y.
The
abov
e bo
rrow
ings
are
gua
rant
eed
for r
epay
men
t of p
rinci
pal a
nd p
aym
ent o
f int
eres
t by
Oil
and
Nat
ural
Gas
Cor
pora
tion
Lim
ited,
the
pare
nt c
ompa
ny.
The
Term
loan
has
been
obta
ined
from
asy
ndic
ate
ofco
mm
erci
alba
nks
tore
finan
ceth
ebo
rrow
ings
take
nto
part
finan
ceac
quis
ition
of6%
stak
ein
Are
a1,
Moz
ambi
que
from
Vid
eoco
n. T
he T
erm
loan
is re
paya
ble
in fu
ll (b
ulle
t rep
aym
ent)
on m
atur
ity d
ate.
Part
icul
ars
As a
t Mar
ch
31, 2
020
Ter
m o
f R
epay
men
t D
ate
of Is
sue
Annu
al R
epor
t 201
9 - 2
030
3 of
373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
26 Other Financial Liabilities(at amortised cost wherever applicable)
ParticularsNon- current Current Non- current Current
Derivative liabilities measured at fair value through profit and loss (Refer note 26.1)
1,932.44 - 1,980.62 -
Non-recourse deferred credit (net) - - - 396.89Payable to operators - 6,380.64 - 4,852.37Bonus payable for extension of Production sharing agreement (Refer note 26.2)
3,898.30 1,031.56 4,424.03 945.87
Payable to holding company - 294.16 - 495.16Deposits from suppliers / vendors - 3.48 - 9.24Other Deposits - - - 0.27Interest accrued but not due on Bonds (other than ` currency) 461.17 2,405.09 658.85 2,601.50- Non-convertible redeemable debentures - - - 73.58- Term loans 38.48 1,193.36 1,036.74 107.26Others 0.30 5,369.15 - 1,067.37
Total 6,330.69 16,677.44 8,100.24 10,549.51
26.1
26.2 In respect of ACG, Azerbaijan project, participating interest (PI) is revised to 2.31% from 2.7213% as per amended restated ACGPSA, Amended JOA, and other related agreements / Head of Agreements (HOA) etc. (with effective date of January 1, 2017) forACG PSA extension upto December 2049 as jointly agreed by all partners with SOCAR, the National Oil Company ofAzerbaijan. Necessary adjustments to Company's share of assets, liabilities, revenues and expenses have been made during theyear ended March 31, 2018 for the same and liability is recognised in respect of amount payable to SOCAR on account ofreduction in PI w.e.f. January 1, 2017.
As at March 31, 2020 As at March 31, 2019
ONGC Videsh has entered into cross-currency swap contracts covering ₹ 3,700.00 million debentures (in previous year covering₹ 3,700.00 million debentures). There is MTM loss position of Nil as on 31.03.2020 (MTM loss of ₹ 1,396.28 million as on31.03.2019) for cross-currency swap contracts. All the derivative contracts related to ₹ 3,700.00 million debentures have beensettled on maturity date i.e. on January 06, 2020. ONGC Videsh has entered into forward contracts covering Euro 199.50 million (₹ 16,497.83 million) (in previous year coveringEuro 199.50 million (₹ 15,512.61 million)) out of the principal amount of 2.75% Euro 525 million Bonds (₹ 43,415.34 million).There is MTM loss position of Rs.1,932.44 million as on 31.03.2020 (MTM loss of ₹ 584.34 million as on 31.03.2019) forforward contracts.
Annual Report 2019 - 20 304 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
27 Provisions
ParticularsNon-current Current Non- current Current
Provision (Refer note 27.1)-Provision for decommissioning (Refer note 27.2) 49,927.07 - 40,845.18 -
-Provision for short term employee benefits - 87.56 - 102.92
-Provision for minimum work program commitment (Refer note 27.3)
- 1,887.00 - 1,730.25
-Provision for contingencies - 787.65 - 713.5249,927.07 2,762.21 40,845.18 2,546.69
27.1 Movement for provisions
Particulars
For the year ended March 31,
2020
For the year ended March 31,
2019
For the year ended March 31,
2020
For the year ended March 31,
2019Opening Balance 40,845.18 37,882.12 1,730.25 1,681.43Addition during the year 5,004.76 1,702.19 - -Write back during the year - (211.02) - (62.95)Effect of exchange difference (refer note 27.4) 4,077.13 1,471.89 156.75 111.77Closing Balance 49,927.07 40,845.18 1,887.00 1,730.25
Particulars
For the year ended March 31,
2020
For the year ended March 31,
2019
For the year ended March 31,
2020
For the year ended March 31,
2019Opening Balance 102.92 94.26 713.52 487.16Addition during the year - 2.45 9.49 196.23Write back during the year (24.68) - - -Effect of exchange difference (refer note 27.4) 9.32 6.21 64.64 30.13Closing Balance 87.56 102.92 787.65 713.52
27.2
27.3
27.4
As at March 31, 2020
Liability for decommissioning/site restoration comprises of the future cost of decommissioning oil / gas wells, facilities and relatedflow lines etc. The Company estimates provision for decommissioning as per the principles of Ind AS 37 ‘Provisions, ContingentLiabilities and Contingent Assets’ for the future decommissioning of oil and gas assets at the end of their economic lives. Thetiming and amounts of future cash flows are subject to significant uncertainty. The economic life of the oil and gas assets isestimated on the basis of long term production profile of the relevant oil and gas assets. The provision for decommissioning isreviewed annually.
Provision for minimum work commitment as at March 31, 2020 is in respect of Area 43, Libya. (as at March 31, 2019 is in respectof Area 43, Libya)
Represents exchange difference on account of translation of the financial statements from functional currency to presentationcurrency. Refer note 3.22 and 4.1(a).
Provision for minimum work program commitment
Provision for short term employee benefits
Provision for contingencies
As at March 31, 2019
Provision for decommissioning
Annual Report 2019 - 20 305 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
28 Deferred Tax Liabilities (net)
Particulars As at March 31, 2020
As at March 31, 2019
Deferred tax assets 14,427.86 17,310.58 Deferred tax liabilities 138,226.72 111,091.03
Particulars Opening balance as at
March 31, 2019
Recognised in profit or loss for the year
Recognised in other
comprehensive income
Effect of exchange
differences (refer note
Closing balance as at
March 31, 2020
1 2 3 4 (1+2+3+4)Deferred Tax Assets in realtion to:
Others 17,310.58 (157.88) - (2,724.84) 14,427.86 Total Deferred Tax Assets 17,310.58 (157.88) - (2,724.84) 14,427.86
Particulars Opening balance as at
March 31, 2019
Recognised in profit or loss for the year
Recognised in other
comprehensive income
Effect of exchange
differences (refer note
Closing balance as at
March 31, 2020
1 2 3 4 (1+2+3+4)Net deferred tax liabilities in relation to:Deferred Tax AssetsProvisions (Receivables) 3,967.16 (2,765.45) - 181.38 1,383.09 Carry forward losses 16,713.52 (12,567.25) - 704.95 4,851.22 Unutilised tax credits 618.75 (38.77) - 53.56 633.54 Others - - - - Total Deferred Tax Assets 21,299.43 (15,371.47) - 939.89 6,867.85 Deferred Tax LiabilitiesProperty, plant and equipment/Intangibles
103,942.11 2,163.34 - 9,706.40 115,811.85
Foreign taxes 19,971.77 (5,721.21) - 792.16 15,042.72 Exchange differences on translating the financial statements of foreign operations (Refer note 28.2)
8,476.58 - 5,763.42 - 14,240.00
Total Deferred Tax Liabilities 132,390.46 (3,557.87) 5,763.42 10,498.56 145,094.57 Net Deferred Tax Liabilities 111,091.03 11,813.60 5,763.42 9,558.67 138,226.72
Particulars Opening balance as at
March 31, 2018
Recognised in profit or loss for the year
Recognised in other
comprehensive income
Effect of exchange
differences (refer note
28.1)
Closing balance as at
March 31, 2019
1 2 3 4 (1+2+3+4)Deferred Tax Assets in realtion to:
Provisions (Receivables) - - - - - Carry forward losses - - - - - Unutilised tax credits - - - - - Others 16,954.55 1,579.03 - (1,223.00) 17,310.58 Total Deferred Tax Assets 17,310.58 (157.88) - (2,724.84) 17,310.58
Annual Report 2019 - 20 306 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Particulars Opening balance as at
March 31, 2019
Recognised in profit or loss for the year
Recognised in other
comprehensive income
Effect of exchange
differences (refer note
28.1)
Closing balance as at
March 31, 2020
1 2 3 4 (1+2+3+4)Net deferred tax liabilities in relation to:Deferred Tax AssetsProvisions (Receivables) 8,475.26 (5,122.03) - 613.93 3,967.16 Carry forward losses 25,765.28 (10,868.70) - 1,816.94 16,713.52 Unutilised tax credits 618.74 (41.32) - 41.33 618.75 Others - - - - Total Deferred Tax Assets 34,859.28 (16,032.05) - 2,472.20 21,299.43 Deferred Tax LiabilitiesProperty, plant and equipment/Intangibles
91,267.15 6,767.16 - 5,907.80 103,942.11
Foreign taxes 21,900.54 (3,665.69) - 1,736.92 19,971.77 Exchange differences on translating the financial statements of foreign operations (Refer note 28.2)
3,661.32 - 4,815.26 - 8,476.58
Total Deferred Tax Liabilities 116,829.01 3,101.47 4,815.26 7,644.72 132,390.46 Net Deferred Tax Liabilities 81,969.73 19,133.52 4,815.26 5,172.52 111,091.03
28.1
28.2 Represents exchange difference on account of translation of the financial statements from functional currency to presentation currency. Refer note 3.22 and 4.1(a).
Deferred income tax assets have not been recognized on the unutilized MAT credit u/s 115JAA of the Income-tax Act 1961 amounting to ₹ 9,441.88 million (previous year ₹ 15,860.23 million) as it is probable that tax authorities may challenge utilization of MAT credit generated through the foreign tax credit.
Annual Report 2019 - 20 307 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
29 Trade payables- Current
Particulars As at March 31, 2020 As at March 31, 2019
Trade payable 24,850.29 23,637.68Total 24,850.29 23,637.68
29.1 Trade payables -Total outstanding dues of Micro and Small enterprises*
Particulars As at March 31, 2020 As at March 31, 2019a) Principal remaining unpaid but not due as at year end - -b) Interest amount remaining unpaid but not due as at year end - -c) Interest paid by the Company in terms of Section 16 of Micro, Smalland Medium Enterprises Development Act, 2006, along with theamount of the payment made to the supplier beyond the appointed dayduring the year
- -
d) Interest due and payable for the period of delay in making payment(which have been paid but beyond the appointed day during the year)but without adding the interest specified under Micro, Small andMedium Enterprises Development Act, 2006
- -
e) Interest accrued and remaining unpaid as at year end - -f) Further interest remaining due and payable even in the succeedingperiods, until such date when the interest dues as above are actuallypaid to the small enterprise
- -
* Based on the confirmation from Vendors
29.2 Payment towards trade payables is made as per the terms and conditions of the contract / purchase orders. The average creditperiod is 30 days.
Annual Report 2019 - 20 308 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
30
Particulars
Non-current Current Non- current Current
Liability for statutory payments - 1,618.04 - 726.17 Revenue received in advance - 354.91 - 252.29
Contract Liability on gas sales (Refer note no. 30.1) - 1,383.80 - 3,105.31
Other liabilities 204.90 2,002.17 142.30 1,926.59 Total 204.90 5,358.92 142.30 6,010.36
30.1 Contract Liability on gas sales represents amounts received from gas customers against "Take or Pay" obligations under relevantgas sales agreements. The amounts are to be utilized to supply the gas in subsequent year(s).
Other liabilities
As at March 31, 2019As at March 31, 2020
Annual Report 2019 - 20 309 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
31 Revenue from operations
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Revenue from contracts with customers
A. Sale of productsCrude oil 126,613.13 123,324.39Natural gas 27,216.68 21,326.03Condensate 407.05 716.58Less : Value added tax 2,480.84 1,419.25
151,756.02 143,947.75
B. Other operating revenuePipeline Transportation Receipts 2,713.10 1,805.19Processing Charges 913.95 566.85Total 155,383.07 146,319.79
(i)
(ii)
The following is an analysis of the Company’s revenue
The Company has recognised revenue for its share of long term test production of crude oil after deducting the cost of wells(Mariposa and Indico) in the exploratory block CPO5, Colombia. During the year crude oil production from the exploratoryblock was 0.266 MMT (Previous Year 0.126 MMT). The company has sought opinion of EAC of ICAI regarding accountingtreatment of reveue from sale of hydrocarbons produced during exploration stage.
The majority of the company's natural gas production is sold under long-term contracts. The company expects to satisfy all ofits sale obligation through the production of its proved reserves of natural gas.
Annual Report 2019 - 20 310 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
32a Other income
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
A) Interest income on:(i) Financial assets measured at amortized cost- Term Deposits 2,184.91 771.49- Employee loans 8.42 8.56
(i) Financial assets measured at fair value - Investment in mutual fund for site restoration 558.58 493.79(iii) Others 1,257.82 1,748.50
4,009.73 3,022.34
B) Dividend Income from equity instruments:- Others 164.01 297.13
C) Other non-operating income:- Miscellaneous receipts 2,006.73 1,282.13
2,006.73 1,282.13
Total 6,180.47 4,601.60
Annual Report 2019 - 20 311 of 373
ONGC VIDESH LIMITED CONSOLIDATED (All amounts are ₹ in million unless otherwise stated)
32b Income from trading activities
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
A. Sale of products 27,432.23 23,178.28B. Purchases of stock in trade 27,344.09 23,161.89
Total (A-B) 88.14 16.39
32b.1 ONGC Nile Ganga BV (ONGBV), a wholly owned subsidiary, is acting as an agent to arrange for the sale of crude oil forFalcon Oil and Gas BV (FOGBV) (an associate and Operator at Lower Zakum Concession, UAE). ONGBV recognises netmargin as a facilitator for marketing & administrative activities provided in respect of sale of crude on behalf of FOGBV.
Annual Report 2019 - 20 312 of 373
ONGC VIDESH LIMITED CONSOLIDATED (All amounts are ₹ in million unless otherwise stated)
32c Share of profit of equity accounted investees, net of tax
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
JSC Vankorneft 13,221.62 19,477.42Tamba BV 986.73 2,353.42South East Asia Gas Pipeline 1,354.48 312.55Mansarovar Energy Colombia Ltd 646.38 942.79Petrolera Indovenezolana SA (233.57) 419.36Petro Carabobo SA (3,331.17) 2,740.28Himalaya Energy Syria BV (16.16) (2.55)Moz LNG 1 Holding Company Ltd 18.77 -Mozambique LNG I Company Pte Ltd. - 30.25Falcon Oil and Gas BV 1,535.21 1,752.47Grand Total 14,182.29 28,025.99
Annual Report 2019 - 20 313 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
33 Changes in inventories of finished goods
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Closing stock (a) (Refer note 20) 1,073.50 1,851.11Opening stock (b) (Refer note 20) 1,851.11 1,657.68Effect of exchange difference (c) (Refer note 33.1) (34.32) 122.55Decrease /(Increase) in inventories of finished goods [(b)-(a)+(c)] 743.29 (70.88)
33.1 Represents exchange difference on account of translation of the financial statements from functional currency to presentationcurrency. Refer note 3.22 and 4.1(a).
Annual Report 2019 - 20 314 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
34 Production, transportation, selling & distribution expenditure
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Royalty 12,770.80 13,129.83Service tax/GST - -Staff expenditure 2,864.56 2,779.58Consumption of Stores and Spares 263.24 271.39Insurance 118.94 93.99Power and Fuel 121.82 136.94Rent (Refer note 7.3) 120.86 140.82Repairs and maintenance 223.95 260.47Contractual payments including Hire charges etc. 48.19 77.41Cross flow expenditure* - 3,227.97Other production expenditure 20,886.71 17,629.67Transportation expenditure 7,252.78 5,371.59Business development and other miscellaneous expenses 3,102.91 1,984.81
Total 47,774.76 45,104.47
* This phenomena of cross flow of hydrocarbon is technically referred to as Straddling of hydrocarbon reservoir. In most of the cases, it isdealt by Unitization Agreement.
Due to lack of Unitization Agreement in Russia, cross flow due to straddling of reservoir was settled at a point of time and therefore theprovision for cross flow claim arose. It is reiterated that in the context of overall E&P industry such cross flow in straddling reservoirs is acommon phenomenon and therefore does not meet the incidence test.
Annual Report 2019 - 20 315 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
34.1 Details of nature-wise expenditure
For the year ended March 31, 2020
For the year ended March 31, 2019
(i) Manpower Cost(a) Salaries, wages, ex-gratia, etc. 2,324.65 2,295.19(b) Contribution to provident and other funds 77.83 76.60(c) Provision for gratuity 13.79 17.74(d) Provision for leave encashment (60.04) 171.83(e) Provision of medical/terminal benefits 11.90 8.70(f) Staff welfare expenses 496.43 209.52
Sub Total: 2,864.56 2,779.58(ii) Rent 120.86 140.82(iii) Electricity, water and power 156.51 487.00(iv) Repairs to building 0.30 3.49(v) Repairs to plant and equipment 153.04 20.60(vi) Other repairs 70.61 236.38(vii) Hire charges of vehicles 120.21 103.74(viii) Professional charges (Refer note 34.4) 345.41 778.99(ix) Telephone and telex 24.79 82.69(x) Printing and Stationary 2.89 2.58(xi) Business meeting expenses 12.73 34.39(xii) Traveling expenses 149.20 214.13(xiii) Insurance 118.94 93.99(xiv) Advertisement and exhibition expenditure 4.33 20.18(xv) Statutory levies - -(xvi) Contractual transportation 7,252.78 5,371.59(xvii) Miscellaneous expenditure 631.19 274.62(xviii) Crossflow expenditure - 3,227.97(xix) Other operating expenditure* 22,975.61 18,101.90(xx) Royalty 12,770.80 13,129.83 Total 47,774.76 45,104.47
- -*
34.2
34.3
34.4
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Audit fees 5.65 5.99Certification and other services 1.57 1.85Total 7.22 7.84
34.5 Upto the year ended March 31, 2020, input tax credit under GST amounting to ₹ 467.87 million has been claimed by the company.The amount of claim for the FY'20 is under review and necessary adjustments, if any, will be carried out in the next year.The above figure is for ITC of FY 2017-18 and 2018-19 as reported in GST Returns filed; a part of this was claimed in FY 2017-18(₹ 164.15 million), FY 2018-19 (₹ 214.88 million) and remaining for the FY 2019-20 (₹ 88.84 Million) respectively.
Particulars
Professional charges in note 34.1 (viii) includes statutory auditors remuneration as under:
The other operating expenditure (sl. no. (xix) above) includes the expenses in respect of projects(s) where the details are not madeavailable by project operator in above mentioned heads.
The expenditure incurred by ONGC or its subsidiaries on behalf of the Company are accounted for on the basis of debit raised bythem for which supporting documents are held by the parent company / subsidiaries.
The operations of the Company are located outside India and therefore the eligible Net profit for the year for the purpose ofCorporate Social Responsibility (CSR) under the Companies Act, 2013 shall be “Nil”. However, for the year ended March 31, 2020,the Company has made a total expenditure of ₹ 11.33 million (for the year ended March 31, 2019 ₹ 95.39 million) towards CSRactivities outside India, directly or through its joint ventures.
Annual Report 2019 - 20 316 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
35 Depreciation, Depletion & Amortization
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Depletion of oil and gas assets* 33,874.43 33,084.27Depreciation of property, plant and equipment 1,856.69 2,305.76Amortisation of intangible assets 154.23 222.36Total 35,885.35 35,612.39
*includes depletion on Right-of-Use Production Facilities (Refer note 7.1)
Annual Report 2019 - 20 317 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
36 Finance costs
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Interest expense on:- Bonds 7,976.29 9,220.11- Non-convertible redeemable debentures 242.40 315.98- Term loan from bank 6,218.13 5,882.51- Loan from holding company - 3.58Less: amounts included in the cost of qualifying assets 5,665.76 5,809.92
8,771.06 9,612.26Finance expense on unwinding of :- lease liabilities 1,467.34 4,477.53- decommissioning liabilities 2,093.98 1,702.19- other financial liabilities 388.81 443.05Other Interest expense 0.07 598.45Amortisation of financial guarantee fees 449.53 464.72Net loss/(gain) on fair value of derivative contracts mandatorily measured at fair value through profit or loss*
1,433.54 2,848.01
Exchange differences regarded as an adjustment to borrowing costs 4,095.17 (3,795.31)
Total 18,699.50 16,350.90
* The net loss/(gain) on fair value of derivative contracts recognised in the statement of Profit & loss is on account of mark tomarket valuation of the derivative contracts resulting from movements in exchange rates and interest rates of the underlyingcurrencies. These derivative contracts are solely taken for the long term foreign currency borrowings of the Company. Accordingly,it has been deemed appropriate to classify it under finance cost as a separate line item to enable the readers of financial statements toappreciate the offsetting effect of the derivative contracts on the financing costs.
The weighted average capitalization rate on funds borrowed is 3.45% per annum (during the year ended March 31, 2019: 4.74% perannum).
Annual Report 2019 - 20 318 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
37 Provisions, write off and impairment
Particulars
Impairment provision for:Doubtful receivables and carried interest 1,250.00 6,425.26Acquisition cost 1.77 -Oil and Gas Assets and Other assets - 5,979.71Obsolete / non-moving inventory 758.15 119.98Others 127.82 396.80
2,137.74 12,921.75Write-OffsDisposal/Condemnation of property, plant and equipment (Refer note 37.1)
15,461.42 5.14
Inventory 106.35 61.75Others 122.79 15,690.56 35.50 102.39
ProvisionsAmounts written back (Refer note 37.1) (17,129.49) (12,067.91)Exploratory wells in progress written back - (212.99)Carry Loan - 10,190.81
Total 698.81 10,934.05
37.1 The company has terminated/surrendered EPSA for Block 2A and 4, Sudan w.e.f. 31st August 2019. The company has written off anamount of ₹ 15,433.16 million in the following assets: Other PPE (₹ 34.83 million), Oil and Gas Assets (₹ 14,542.11 million),Development Wells in Progress (₹ 386.08 million) and Exploratory Wells in Progress (₹ 470.14 million). Consequently, the impairmentprovision of ₹ 16,519.69 million pertaining to this project has been written back.
For the year ended March 31, 2020
For the year ended March 31, 2019
Annual Report 2019 - 20 319 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
38
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Exchange rate fluctuation loss/(gain) -net 1,047.90 (1,176.67)
Total 1,047.90 (1,176.67)
Other Expenses
Annual Report 2019 - 20 320 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
39 Exceptional (income) / expense
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Impairment charge (Refer note 52) 31,265.00 15,762.16Total 31,265.00 15,762.16
Annual Report 2019 - 20 321 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
40 Tax expenses
(a) Tax charge /(credit) recongnised in Statement of Profit & LossParticulars For the year ended
March 31, 2020For the year ended
March 31, 2019
Current tax in relation to:- current year 20,428.15 18,860.70- earlier years 3.01 (721.17)
20,431.16 18,139.53Deferred taxIn respect of current year 11,971.48 17,554.49Total 32,402.64 35,694.02
(b) The income tax expense for the year can be reconciled to the accounting profit as follows:Particulars For the year ended
March 31, 2020For the year ended
March 31, 2019
Profit before tax from continuing operations 36,754.56 52,490.70Income tax expense calculated at 34.944% (For the year ended March 31,2019: 34.944%)
12,843.51 18,342.35
Effect of exceptional (income)/expense not considered in determining taxableprofit
9,223.45 4,195.55
Effect of income taxed on different rates (Capital Gain) - -Tax effect in relation to earlier year’s taxes 3.01 (721.17)Additional tax for foreign jurisdiction 5,771.11 6,267.14Effect on Rupee tax base on account of change in exchange rate 3,673.28 9,409.11
Others 888.28 (1,798.96)Income tax expense recognised in profit or loss 32,402.64 35,694.02
(c) Income tax recognised in other comprehensive incomeParticulars For the year ended
March 31, 2020For the year ended
March 31, 2019
Remeasurement of defined benefit obligation - -Exchange differences in translating the financial statements of foreign operations
(5,763.42) (4,815.26)
Total income tax recognised in other comprehensive income (5,763.42) (4,815.26)Bifurcation of the income tax recognised in other comprehensive income into:-
Items that will not be reclassified to profit or loss - -Items that will be reclassified to profit or loss (5,763.42) (4,815.26)
The tax rate used for the FY 2019-20 and FY 2018-19 reconciliations above are the corporate tax rate of 34.944% payable bycorporate entities in India on taxable profits under the Indian tax laws.As per the assessment of the company, it has been concluded that there is no additional tax expenses on account of an uncertaintax positions.
Annual Report 2019 - 20 322 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
41 Other comprehensive incomeParticulars For the year ended
March 31, 2020For the year ended
March 31, 2019
Remeasurements of the defined benefit liabilities / (asset) ( net of tax) 72.97 7.03
Foreign exchange gain/(loss) due to translation (net of tax)* 10,729.89 8,964.69
10,802.86 8,971.72
*Represents exchange difference on account of translation of the financial statements from functional currency to presentationcurrency. Refer note 3.22 and 4.1(a).
Annual Report 2019 - 20 323 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
42 Earnings per equity share
Particulars For the year ended March 31, 2020
For the year ended March 31, 2019
Profit for the year attributable to equity shareholders ( ₹ in Million ) 4,540.16 16,822.78Weighted average number of equity shares for the purpose of basic earnings pershare (No. in million)
1,500.00 1,500.00
Weighted average number of equity shares for the purpose of diluted earningsper share (No. in million)
1,500.00 1,500.00
Basic earnings per equity share (₹) 3.03 11.22Diluted earnings per equity share (₹) 3.03 11.22
Face Value per equity share (₹) 100.00 100.00
Annual Report 2019 - 20 324 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
43 Subsidiaries
S.no. Particulars Date of acquisition
Principal activity
Place of incorporation
Place of operation
As at March 31,
2020
As at March 31,
20191 ONGC Nile Ganga B.V. 12.03.2003 Exploration and
production of hydrocarbons
The Netherlands Sudan, South Sudan, Syria, Myanmar, Brazil, Venezuela
100% for A&B and 55% for Class C
100% for A&B and 55% for Class C
2 ONGC Campos Ltda. 16.03.2007 Exploration and production of hydrocarbons
Brazil Brazil 100% 100%
3 ONGC Nile Ganga (San Cristobal) B.V.
29.02.2008 Exploration and production of hydrocarbons
The Netherlands Venezuela 100% 100%
4 ONGC Caspian E&P B.V.* 07.06.2010 Exploration and production of hydrocarbons
The Netherlands Myanmar N.A. 100%
5 ONGC Amazon Alaknanda Limited
08.08.2006 Exploration and production of hydrocarbons
Bermuda Colombia 100% 100%
6 ONGC Narmada Limited 07.12.2005 Exploration and production of hydrocarbons
Nigeria Nigeria 100% 100%
7 ONGC (BTC) Limited 28.03.2013 Exploration and production of hydrocarbons
Cayman Islands Azerbaijan 100% 100%
8 Carabobo One AB 05.02.2010 Exploration and production of hydrocarbons
Sweden Venezuela 100% 100%
9 Petro Carabobo Ganga B.V. 26.02.2010 Exploration and production of hydrocarbons
The Netherlands Venezuela 100% 100%
10 Imperial Energy Limited 12.08.2008 Exploration and production of hydrocarbons
Cyprus Russia 100% 100%
11 Imperial Energy Tomsk Limited 13.01.2009 Exploration and production of hydrocarbons
Cyprus Russia 100% 100%
12 Imperial Energy (Cyprus) Limited
13.01.2009 Exploration and production of hydrocarbons
Cyprus Russia 100% 100%
13 Imperial Energy Nord Limited 13.01.2009 Exploration and production of hydrocarbons
Cyprus Russia 100% 100%
14 Biancus Holdings Limited 13.01.2009 Exploration and production of hydrocarbons
Cyprus Russia 100% 100%
15 Redcliffe Holdings Limited 13.01.2009 Exploration and production of hydrocarbons
Cyprus Russia 100% 100%
Proportion of ownership interest and voting
power held by group
Annual Report 2019 - 20 325 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
16 Imperial Frac Services (Cyprus) Limited
13.01.2009 Exploration and production of hydrocarbons
Cyprus Russia 100% 100%
17 San Agio Investments Limited 13.01.2009 Exploration and production of hydrocarbons
Cyprus Russia 100% 100%
18 LLC Sibinterneft 13.01.2009 Exploration and production of hydrocarbons
Russia Russia 55.90% 55.90%
19 LLC Allianceneftegaz 13.01.2009 Exploration and production of hydrocarbons
Russia Russia 100% 100%
20 LLC Nord Imperial 13.01.2009 Exploration and production of hydrocarbons
Russia Russia 100% 100%
21 LLC Rus Imperial Group 13.01.2009 Exploration and production of hydrocarbons
Russia Russia 100% 100%
22 LLC Imperial Frac Services 13.01.2009 Exploration and production of hydrocarbons
Russia Russia 100% 100%
23 Beas Rovuma Energy Mozambique Ltd.
07.01.2014 Exploration and production of hydrocarbons
Republic of Mauritius
Mozambique 60% 60%
24 ONGC Videsh Rovuma Ltd. ** 24.03.2015 Exploration and production of hydrocarbons
Republic of Mauritius
Mozambique 100% 100%
25 ONGC Videsh Atlantic Inc. 14.08.2014 Exploration and production of hydrocarbons
Texas Mozambique 100% 100%
26 ONGC Videsh Singapore Pte. Ltd.
15.04.2016 Exploration and production of hydrocarbons
Singapore Russia 100% 100%
27 ONGC Videsh Vankorneft Pte. Ltd.
18.04.2016 Exploration and production of hydrocarbons
Singapore Russia 100% 100%
28 Indus East Mediterranean Exploration Ltd.
27.02.2018 Exploration and production of hydrocarbons
Israel Israel 100% 100%
29 ONGC Videsh Rovuma Ltd. 15.04.2019 Exploration and production of hydrocarbons
India Mozambique 100% 100%
*liquidated on 31 July 2019**winding-up procedure initiated
Significant judgement and assumptions made by the Company in respect of following
b) that it has joint control of an arrangement or significant influence over another entity; and
a) that it has control of another entity, i.e. an investee as described in paragraphs 5 and 6 of Ind AS 110 ‘Consolidated Ind ASfinancial statements’;
c) the type of joint arrangement (i.e. joint operation or joint venture) when the arrangement has been structured through a separatevehicle.
Annual Report 2019 - 20 326 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
44 Employee benefit plans
44.1 Defined contribution plans:
44.1.1 Provident Fund
(i)
(ii)
(iii)
44.1.2 Post Retirement Benefit Scheme
(i)
(ii)
(iii) Purchase of annuities for the members.
44.2 Employee Pension Scheme 1995
The Company pays fixed contribution to provident fund at predetermined rates to a separate trust, whichinvests the funds in permitted securities. The obligation of the Company is to make such fixed contributionand to ensure a minimum rate of return to the members as specified by Government of India (GoI). As perreport of the actuary, overall interest earnings and cumulative surplus is more than the statutory interestpayment requirement. Hence, no further provision is considered necessary.
Provident Fund is governed through a separate trust. The board of trustees of the Trust functions inaccordance with any applicable guidelines or directions that may be issued in this behalf from time to timeby the Central Government or the Central Provident Fund Commissioner, the board of trustees have thefollowing responsibilities:
Investments of the surplus as per the pattern notified by the Government in this regard so as to meet therequirements of the fund from time to time.
Raising of moneys as may be required for the purposes of the fund by sale, hypothecation or pledge of theinvestment wholly or partially.
Fixation of rate of interest to be credited to members’ accounts.
Benefit details for employees of ONGC Videsh are as follows:-
The defined contribution pension scheme of the Company for its employees is administered through aseparate trust. The obligation of the Company is to contribute to the trust to the extent of amount notexceeding 30% of basic pay and dearness allowance as reduced by the employer’s contribution towardsprovident fund, gratuity, post-retirement medical Benefit (PRMB) or any other retirement benefits.
The board of trustees of the Trust functions in accordance with any applicable guidelines or directions thatmay be issued in this behalf from time to time by the Central Government, the board of trustees have thefollowing responsibilities:
Investments of the surplus as per the pattern notified by the Government in this regard so as to meet therequirements of the fund from time to time.
Fixation of rate of contribution and interest thereon.
The Employee Pension Scheme -1995 is administered by Employees Provident Fund Organization of India,wherein the Company has to contribute 8.33% of salary (subject to maximum of ₹15,000 per month) out ofthe employer’s contribution to Provident Fund.
Annual Report 2019 - 20 327 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
44.3 Composite Social Security Scheme (CSSS)
(i)
(ii)
(iii)
44.4
2019-20 2018-19 2019-20 2018-19Provident Fund 66.07 64.06 1.30 1.34Post Retirement Benefit Scheme 87.03 84.87 1.40 1.81Employee Pension Scheme-1995 (EPS) 3.14 3.49 0.02 0.03Composite Social Security Scheme (CSSS) 6.01 6.52 0.09 0.11
44.5 Defined benefit plans
44.5.1
44.5.2
44.5.3 Gratuity
The employees of the Company are deputed from the parent company ONGC, and are entitled to benefits asper the parent company's policy. All the scheme relating to employee benefits are administered by the parentcompany and accordingly the year end provision of employee benefits are settled by transfer of funds to theparent company.
Fixation of rate of interest to be credited to members’ accounts.
To provide cash benefits to the nominees in the event of death of an employee or Permanent TotalDisablement leading to the cessation from service and refund of own contribution along with interest in caseof separation other than death.
The amounts of defined plans are recognized in the financial statements on the basis of actuarial valuationcarried out annually.
Investments of the surplus as per the pattern notified by the Government in this regard so as to meet therequirements of the fund from time to time.
Defined Contribution Plans Amount recognized during
Contribution for key management personnel
Brief Description: A general description of the type of Employee Benefits Plans is as follows:
The Composite Social Security Scheme is formulated by the Company for the welfare of its regularemployees and it is administered through a separate Trust, named as Composite Social Security SchemeTrust. The obligation of the Company is to provide matching contribution to the Trust to the extent ofcontribution of the regular employees of the company. The Trust provides an assured lump sum supportamount in the event of death or permanent total disablement of an employee while in service. In case ofSeparation other than Death/Permanent total disability, employees own contribution along with interest isrefunded.
The Board of trustees of the Trust functions in accordance with Trust deed, Rule, Scheme and applicableguidelines or directions that may be issued by Management from time to time.
The Board of trustees have the following responsibilities:
Annual Report 2019 - 20 328 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
44.5.4 Post-Retirement Medical Benefits
44.5.5 Terminal Benefits
44.5.6 Risk Analysis
Investment risk
Interest risk
Longevity risk
Salary risk The present value of the defined benefit plan liability iscalculated by reference to the future salaries of planparticipants. As such, an increase in the salary of the planparticipants will increase the plan’s liability.
At the time of superannuation, employees are entitled to settle at a place of their choice and they are eligiblefor Settlement Allowance.
The present value of the defined benefit plan liability iscalculated using a discount rate which is determined byreference to market yields at the end of the reportingperiod on government bonds. When there is a deepmarket for such bonds; if the return on plan asset is belowthis rate, it will create a plan deficit. Currently, for theseplans, investments are made in government securities,debt instruments, Short term debt instruments, Equityinstruments and Asset Backed, Trust Structured securitiesas per notification of Ministry of Finance.
A decrease in the bond interest rate will increase the planliability; however, this will be partially offset by anincrease in the return on the plan’s investments.
An employee should have put in a minimum of 15 years of service rendered in continuity in ONGC at thetime of superannuation to be eligible for availing post-retirement medical facilities.
Scheme is funded through Parent Company’s (ONGC) Gratuity Trust. The liability for gratuity as above isrecognized on the basis of actuarial valuation.
The Company has Post-Retirement Medical benefit (PRMB), under which the retired employees and theirspouses and dependent parents are provided medical facilities in the Company hospitals/empanelledhospitals up on payment of one time prescribed contribution by the employees. They can also avail treatmentas out-patient. The liability for the same is recognized annually on the basis of actuarial valuation. Fullmedical benefits on superannuation and on voluntary retirement are available subject to the completion ofminimum 20 years of service and 50 years of age.
These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk,longevity risk and salary risk.
The present value of the defined benefit plan liability iscalculated by reference to the best estimate of themortality of plan participants both during and after theiremployment. An increase in the life expectancy of theplan participants will increase the plan’s liability.
15 days salary for each completed year of service and the payment is restricted to ₹ 2 million onsuperannuation, resignation, termination, disablement or on death.
Annual Report 2019 - 20 329 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
44.6 Other long term employee benefits
44.6.1
44.6.2
44.6.3 Earned Leave (EL) Benefit
Accrual – 30 days per year
Encashment on retirement – maximum 300 daysScheme is funded through Life Insurance Corporation of India (LIC).
44.6.4 Good Health Reward (Half pay leave)
Accrual - 20 days per yearEncashment while in service - NilEncashment on retirement - 50% of Half Pay Leave balance.Scheme is funded through Life Insurance Corporation of India. (LIC).The liability for the same is recognized annually on the basis of actuarial valuation.
44.7 The principal assumptions used for the purposes of the actuarial valuations were as follows.
Assumptions as at March 31, 2020
S. No. Particulars 31-Mar-20 31-Mar-19 Gratuity I. Discount rate 6.80% 7.77%II. Expected return on plan assets 6.80% 7.77%III. Annual increase in salary 7.50% 7.50% Leave IV. Discount rate 6.80% 7.77%V. Expected return on plan assets 6.80% 7.77%VI. Annual increase in salary 7.50% 7.50%
Post-Retirement Medical Benefits VII. Discount rate 6.80% 7.77%
Brief Description: A general description of the type of Other long term employee benefits is as follows:
The employees of the Company are deputed from the parent company ONGC and governed as per the parentcompany policy for employee benefit. All the scheme relating to employee benefits are administered by theparent company and accordingly the year end provision of employee benefits are settled by transfer to theparent company.
No other post - retirement benefits are provided to these employees.
Encashment while in service – 75% of Earned Leave balance subject to a maximum of 90 days per calendaryear
In respect of the above plans, the most recent actuarial valuation of the plan assets and the present value ofthe defined benefit obligation were carried out as at March 31, 2020 by a member firm of the Institute ofActuaries of India. The present value of the defined benefit obligation, and the related current service costand past service cost, were measured using the projected unit credit method.
Annual Report 2019 - 20 330 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
VIII. Expected return on plan assets NA NAIX. Annual increase in costs 7.50% 7.50%
Terminal Benefits X. Discount rate 6.80% 7.77%XI. Expected return on plan assets NA NAXII. Annual increase in costs 7.50% 7.50%XIII. Annual increase in salary 7.50% 7.50%
Employee Turnover (%) XIV. Up to 30 Years 3.00 3.00XV. From 31 to 44 years 2.00 2.00XVI. Above 44 years 1.00 1.00
Mortality RateXVII. Before retirement As per Indian Assured Lives Mortality Table (2006-08)XVIII. After retirement As per Indian Assured Lives Mortality Table (2006-08)
44.8
Gratuity :Particulars Year ended
March 31, 2020
Year ended March 31,
2019Service Cost : Current service cost 0.83 26.00Past service cost and (gain)/loss from settlements - -
Net interest expense 1.79 0.26Components of defined benefit costs recognised in Employee Benefit expenses
2.62 26.26
Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net interest expense)
- -
Amounts recognized in the Financial Statements before allocation in respect of these defined benefit plansand other long term employee benefits are as follows:
The discount rate is based upon the market yield available on Government bonds at the Accounting date witha term that matches. The salary growth takes account inflation, seniority, promotion and other relevantfactors on long term basis. Expected rate of return on plan assets is based on market expectation, at thebeginning of the year, for return over the entire life of the related obligation.
Annual Report 2019 - 20 331 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Actuarial (gains) / losses arising from changes in demographic assumptions
0.03 -
Actuarial (gains) / losses arising from changes in financial assumptions
9.83 5.89
Actuarial (gains) / losses arising from experience adjustments
(84.59) (4.51)
Excess Return / (Shortfall) on plan assets (excluding amounts included in net interest expense)
(0.49) (7.23)
Components of Remeasurement (75.22) (5.85)Total (72.60) 20.41
Leave :Particulars Year ended
March 31, 2020
Year ended March 31,
2019Service Cost: Current service cost 36.39 101.61Past service cost and (gain)/loss from settlements - -
Net interest expense 6.92 1.37(Increase) or decrease due to adjustment in opening corpus consequent to audit
- (2.63)
Actuarial (gains) / losses arising from changes in demographic assumptions
0.01 -
Actuarial (gains) / losses arising from changes in financial assumptions
14.40 20.94
Actuarial (gains) / losses arising from experience adjustments
(206.60) (39.21)
Excess Return / (Shortfall) on plan assets (excluding amounts included in net interest expense)
(3.68) 0.32
Components of defined benefit costs recognised in Employee Benefit expenses
(152.56) 82.40
Post-Retirement Medical Benefits :Particulars Year ended
March 31, 2020
Year ended March 31,
2019Service cost Current service cost 8.24 5.81Past service cost and (gain)/loss from settlements - -
Net interest expense 2.72 2.25Components of defined benefit costs recognised in Employee Benefit expenses
10.96 8.06
Remeasurement on the net defined benefit liability:
Annual Report 2019 - 20 332 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Return on plan assets (excluding amounts included in net interest expense)
NA NA
Actuarial (gains) / losses arising from changes in demographic assumptions
0.02 -
Actuarial (gains) / losses arising from changes in financial assumptions
1.74 (1.36)
Actuarial (gains) / losses arising from experience adjustments
0.56 (1.05)
Adjustments for restrictions on the defined benefit asset
- -
Components of Remeasurement including benefit paid
2.32 (2.41)
Total 13.28 5.65 Terminal Benefits : Particulars Year ended
March 31, 2020
Year ended March 31,
2019Service cost Current service cost 0.70 0.54Past service cost and (gain)/loss from settlements - -Net interest expense 0.25 0.11Components of defined benefit costs recognised in Employee Benefit expenses
0.95 0.65
Remeasurement on the net defined benefit liability:
Actuarial (gains) / losses arising from changes in demographic assumptions
- -
Actuarial (gains) / losses arising from changes in financial assumptions
0.24 0.21
Actuarial (gains) / losses arising from experience adjustments
(0.31) 1.01
Adjustments for restrictions on the defined benefit asset
- -
Components of Remeasurement (0.07) 1.22Total 0.88 1.87
44.9
Gratuity :Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Opening defined benefit obligation 160.15 144.69Current service cost 0.83 26.00Interest cost 12.44 11.08Remeasurement (gains)/losses: Actuarial (gains) / losses arising from changes in demographic assumptions
0.03 -
The Components of Remeasurement of the net defined benefit obligation recognized in other comprehensiveincome is (₹ 72.97) million (Previous Year: (₹ 7.03) million).
Movements in the present value of the defined benefit obligation and other long term employee benefits areas follows:
Annual Report 2019 - 20 333 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Actuarial (gains) / losses arising from changes in financial assumptions
9.83 5.89
Actuarial (gains) / losses arising from experience adjustments
(84.59) (4.51)
Past service cost, including losses/(gains) on curtailments
- -
Benefits paid (22.23) (23.00)Closing defined benefit obligation 76.46 160.15Current obligation 14.39 16.86Non-Current obligation 62.07 143.29 Leave :Particulars Year ended
March 31, 2020
Year ended March 31,
2019Opening defined benefit obligation 400.29 372.58Current service cost 36.39 101.61Interest cost 31.11 28.54Remeasurement (gains)/losses: Actuarial gains and losses arising from changes in demographic assumptions
0.01 -
Actuarial gains and losses arising from changes in financial assumptions
14.40 20.94
Actuarial gains and losses arising from experience adjustments
(206.60) (39.21)
Past service cost, including losses/(gains) on curtailments
- -
Benefits paid (84.89) (84.17)Closing defined benefit obligation 190.71 400.29Current obligation 23.38 57.12Non-Current obligation 167.33 343.17 Post-Retirement Medical Benefits :Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Opening defined benefit obligation 35.00 29.35Current service cost 8.23 5.81Interest cost 2.72 2.25Remeasurement (gains)/losses: Actuarial gains and losses arising from changes in demographic assumptions
0.02 -
Actuarial gains and losses arising from changes in financial assumptions
1.73 (1.36)
Actuarial gains and losses arising from experience adjustments
0.56 (1.05)
Past service cost, including losses/(gains) on curtailments
- -
Benefits paid - -Closing defined benefit obligation 48.26 35.00Current obligation 0.41 0.09
Annual Report 2019 - 20 334 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Non-Current obligation 47.85 34.91 Terminal Benefits :Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Opening defined benefit obligation 3.24 1.37Current service cost 0.69 0.54Interest cost 0.25 0.11Remeasurement (gains)/losses: Actuarial gains and losses arising from changes in demographic assumptions
- -
Actuarial gains and losses arising from changes in financial assumptions
0.24 0.21
Actuarial gains and losses arising from experience adjustments
(0.31) 1.01
Past service cost, including losses/(gains) on curtailments
- -
Benefits paid - -Closing defined benefit obligation 4.11 3.24Current obligation 0.02 0.02Non-Current obligation 4.09 3.22
44.10
Gratuity : Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Present value of funded defined benefit obligation 76.46 160.15
Fair value of plan assets 125.99 148.25Funded status 49.53 (11.90) Restrictions on asset recognised NA NANet liability arising from defined benefit obligation
(49.53) 11.90
Leave : Particulars Year ended
March 31, 2020
Year ended March 31,
2019
The amount included in the Balance sheet arising from the entity’s obligation in respect of its defined benefitplan and other long term employee benefits is as follows :
The amounts included in the fair value of plan assets of gratuity fund in respect of reporting enterprise’s ownfinancial instruments and any property occupied by, or other assets used by the reporting enterprise are Nil(as at March 31, 2019 Nil)
Annual Report 2019 - 20 335 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Present value of funded defined benefit obligation 190.71 400.29
Fair value of plan assets 336.63 317.89Funded status 145.92 (82.40) Restrictions on asset recognised NA NANet liability arising from defined benefit obligation
(145.92) 82.40
Post-Retirement Medical Benefits: Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Present value of unfunded defined benefit obligation
48.26 35.00
Fair value of plan assets NA NA Net liability arising from defined benefit obligation
48.26 35.00
Terminal Benefits : Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Present value of unfunded defined benefit obligation
4.11 3.24
Fair value of plan assets NA NA Net liability arising from defined benefit obligation
4.11 3.24
44.11 Movements in the fair value of the plan assets are as follows :
Gratuity : Particulars Year ended
March 31, 2020
Year ended March 31,
2019 Opening fair value of plan assets 137.08 132.72Adjustment in opening corpus consequent to audit
- 8.52
Expected return on plan assets 10.65 10.82Remeasurement gain (loss): Excess Return / (Shortfall) on plan assets (excluding amounts included in net interest expense)
0.49 7.23
Contributions from the employer - 11.96Benefits paid (22.23) (23.00) Closing fair value of plan assets 125.99 148.25
Annual Report 2019 - 20 336 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Leave :Particulars Year ended
March 31, 2020
Year ended March 31,
2019Opening fair value of plan assets 311.25 352.06Adjustment in opening corpus consequent to audit
- 2.63
Expected return on plan assets 24.18 27.18Remeasurement gain (loss): Excess Return / (Shortfall) on plan assets (excluding amounts included in net interest expense)
3.68 (0.32)
Contributions from the employer 82.40 20.51Benefits paid (84.88) (84.17) Closing fair value of plan assets 336.63 317.89
44.12
44.12.1 Sensitivity Analysis as on March 31, 2020
Significant actuarial assumptions Gratuity Leave Post-
Retirement Medical Benefits
Terminal Benefits
Discount Rate - Impact due to increase of 50 basis points (2.60) (7.68) (1.44) (0.17)- Impact due to decrease of 50 basis points 2.81 8.40 1.53 0.18Salary increase- Impact due to increase of 50 basis points 1.73 8.27 - -- Impact due to decrease of 50 basis points (1.73) (7.68) - -Cost increase- Impact due to increase of 50 basis points - - 1.53 0.18- Impact due to decrease of 50 basis points - - (1.45) (0.17)
Expected contribution in respect of gratuity for next year 2020-21 will be ₹ 21.74 million (For the previousyear ₹ 27.72 million).
Significant actuarial assumptions for the determination of the defined obligation are discount rate andexpected salary increase. The sensitivity analyses below have been determined based on reasonably possiblechanges of the respective assumptions occurring at the end of the reporting period, while holding all otherassumptions constant.
Annual Report 2019 - 20 337 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
44.12.2 Sensitivity Analysis as on March 31, 2019 Significant actuarial assumptions Gratuity Leave Post-
Retirement Medical Benefits
Terminal Benefits
Discount Rate - Impact due to increase of 50 basis points (5.23) (11.92) (1.04) (0.09)- Impact due to decrease of 50 basis points 5.61 12.72 1.11 0.10Salary increase - Impact due to increase of 50 basis points 3.52 12.69 - -- Impact due to decrease of 50 basis points (3.53) (12.00) - -Cost increase - Impact due to increase of 50 basis points - - 1.11 0.10- Impact due to decrease of 50 basis points - - (1.05) (0.09)
44.13
Defined Benefit: Year ended
March 31, 2020
Year ended March 31,
2019Gratuity: Less than One Year 14.39 16.86 One to Three Years 21.69 40.56 Three to Five Years 17.86 27.21 More than Five Years 22.53 75.51Leave: Less than One Year 23.38 57.12 One to Three Years 44.13 84.24 Three to Five Years 32.06 65.78 More than Five Years 91.13 193.15
The sensitivity analysis presented above may not be representative of the actual change in the defined benefitobligation as it is unlikely that the change in assumptions would occur in isolation of one another as some ofthe assumptions may be correlated. Sensitivity due to mortality & withdrawals are not material & henceimpact of change not calculated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligationhas been calculated using the projected unit credit method at the end of the reporting period, which is thesame as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
Maturity Profile of Defined Benefit Obligation and other long term employee benefits:
Annual Report 2019 - 20 338 of 373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
45Se
gmen
t Rep
ortin
g
45.1
Prod
ucts
and
serv
ices
from
whi
ch r
epor
tabl
e se
gmen
ts d
eriv
e th
eir
reve
nues
a.A
sia
Paci
ficb.
Rus
sia
and
Com
mon
wea
lth o
f Ind
epen
dent
Sta
tes (
CIS
)c.
Latin
Am
eric
ad.
Mid
dle
East
and
Afr
ica
45.2
Segm
ent r
even
ue a
nd r
esul
ts
45.2
.1Th
e fo
llow
ing
is a
n an
alys
is o
f the
Com
pany
’s re
venu
e an
d re
sults
from
con
tinui
ng o
pera
tions
by
repo
rtabl
e se
gmen
t.
Part
icul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1, 2
019
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1,
2019
Asi
a Pa
cific
26,4
64.7
920
,075
.50
14,8
68.0
410
,604
.21
Rus
sia
and
CIS
96,3
21.1
210
0,18
5.83
49,4
07.6
380
,065
.88
Latin
Am
eric
a21
,164
.37
16,8
06.1
54,
650.
696,
835.
66M
iddl
e Ea
st a
nd A
fric
a11
,432
.79
9,25
2.31
(12,
242.
59)
(8,8
03.9
7)
Tot
al
155,
383.
0714
6,31
9.79
56,6
83.7
688
,701
.79
Una
lloca
ted
corp
orat
e ex
pens
e(7
,409
.99)
(25,
639.
12)
Fina
nce
cost
s(1
8,69
9.50
)(1
6,35
0.90
)In
tere
st/D
ivid
end
inco
me
6,18
0.29
5,77
8.93
Prof
it be
fore
tax
36,7
54.5
652
,490
.70
45.2
.2
The
Com
pany
has
iden
tifie
dan
dre
porte
dop
erat
ing
segm
ents
taki
ngin
toac
coun
tthe
diff
eren
tris
ksan
dre
turn
s,th
ein
tern
alre
porti
ngsy
stem
san
dth
eba
sis
onw
hich
oper
atin
gre
sults
are
regu
larly
revi
ewed
tom
ake
deci
sion
sab
out
reso
urce
sto
beal
loca
ted
toth
ese
gmen
tan
das
sess
itspe
rfor
man
ce.
The
Com
pany
has
iden
tifie
dfo
llow
ing
geog
raph
ical
segm
ents
as r
epor
tabl
e se
gmen
ts:
Segm
ent p
rofit
/(los
s)Se
gmen
t rev
enue
Segm
entr
even
uere
porte
dab
ove
repr
esen
tsre
venu
ege
nera
ted
thro
ugh
exte
rnal
cust
omer
s.Th
ere
wer
eno
inte
r-se
gmen
tsal
ein
the
curr
enty
ear
(yea
rend
edM
arch
31,
2019
: Nil)
Annu
al R
epor
t 201
9 - 2
033
9 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
45.2
.3
45.3
Segm
ent a
sset
s and
liab
ilitie
s
Part
icul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1, 2
019
Segm
ent a
sset
s
Asi
a Pa
cific
29,6
87.6
951
,464
.24
Rus
sia
and
CIS
399,
055.
0651
5,65
5.95
Latin
Am
eric
a80
,326
.93
164,
878.
13M
iddl
e Ea
st a
nd A
fric
a48
4,13
6.43
355,
919.
30To
tal s
egm
ent a
sset
s99
3,20
6.11
1,08
7,91
7.62
Una
lloca
ted
198,
868.
8144
,237
.30
Tot
al a
sset
s1,
192,
074.
921,
132,
154.
92
Segm
ent l
iabi
litie
s
Asi
a Pa
cific
6,67
5.53
23,5
42.7
5R
ussi
a an
d C
IS60
,242
.51
169,
412.
04La
tin A
mer
ica
23,5
12.2
122
,773
.54
Mid
dle
East
and
Afr
ica
26,1
77.1
725
,548
.43
Tota
l seg
men
t lia
bilit
ies
116,
607.
4324
1,27
6.76
Una
lloca
ted
559,
781.
1038
7,85
8.57
Tot
al li
abili
ties
676,
388.
5262
9,13
5.33
For t
he p
urpo
se o
f mon
itorin
g se
gmen
t per
form
ance
and
allo
catin
g re
sour
ces b
etw
een
segm
ents
:
45.3
.1
45.3
.2A
ll lia
bilit
ies a
re a
lloca
ted
to re
porta
ble
segm
ent o
ther
than
bor
row
ing,
cur
rent
and
def
erre
d ta
x lia
bilit
ies.
All
asse
tsar
eal
loca
ted
tore
porta
ble
oper
atin
gse
gmen
tsot
her
than
,inv
estm
ents
inas
soci
ates
,inv
estm
ents
injo
intv
entu
res,
othe
rin
vest
men
ts,l
oans
and
curr
enta
ndde
ferre
d ta
x as
sets
.
The
acco
untin
gpo
licie
sof
the
repo
rtabl
ese
gmen
tsar
eth
esa
me
asth
eC
ompa
ny’s
acco
untin
gpo
licy
desc
ribed
inno
te3.
36.S
egm
entp
rofit
repr
esen
tsth
epr
ofit
befo
reta
xea
rned
byea
chse
gmen
texc
ludi
ngfin
ance
cost
and
othe
rinc
ome
like
inte
rest
/div
iden
din
com
e.Th
isis
the
mea
sure
repo
rted
toth
ech
iefo
pera
ting
deci
sion
mak
erfo
rth
e pu
rpos
es o
f res
ourc
e al
loca
tion
and
asse
ssm
ent o
f seg
men
t per
form
ance
.
Annu
al R
epor
t 201
9 - 2
034
0 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
45.3
.3
45.4
Oth
er se
gmen
t inf
orm
atio
n
Part
icul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1, 2
019
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1,
2019
Asi
a Pa
cific
6,56
5.93
4,82
4.79
15.6
942
.58
Rus
sia
and
CIS
19,4
77.0
219
,517
.42
324.
534.
53La
tin A
mer
ica
9,90
4.49
12,0
70.1
962
9.79
683.
40M
iddl
e Ea
st a
nd A
fric
a2,
581.
593,
351.
46(4
44.2
4)5,
192.
22U
nallo
cate
d44
6.06
448.
4717
3.03
5,01
1.32
38,9
75.0
840
,212
.33
698.
8110
,934
.05
45.5
Impa
irm
ent l
oss
Part
icul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1, 2
019
Asi
a Pa
cific
--
Rus
sia
and
CIS
14,9
25.4
110
,022
.94
Latin
Am
eric
a-
-M
iddl
e Ea
st a
nd A
fric
a12
,264
.27
5,73
9.22
Una
lloca
ted
4,07
5.32
-31
,265
.00
15,7
62.1
6
Segm
entr
even
ue,r
esul
ts,a
sset
san
dlia
bilit
ies
incl
ude
the
resp
ectiv
eam
ount
sid
entif
iabl
eto
each
ofth
ese
gmen
tsan
dam
ount
allo
cate
don
reas
onab
leba
sis.
Una
lloca
ted
incl
udes
com
mon
expe
nditu
rein
curr
edfo
rall
the
segm
ents
and
expe
nses
incu
rred
atth
eco
rpor
ate
leve
l.Fi
nanc
eco
stin
clud
esun
win
ding
ofde
com
mis
sion
ing
liabi
litie
sno
t allo
cate
d to
segm
ent.
Oth
er n
on-c
ash
item
s- P
rovi
sion
s, w
rite
of
f and
impa
irm
ent
Dep
reci
atio
n , d
eple
tion
and
am
ortiz
atio
n in
clud
ing
expl
orat
ion
cost
s w
ritt
en o
ff
Annu
al R
epor
t 201
9 - 2
034
1 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
45.6
Net
add
ition
s to
non-
cur
rent
ass
ets
Part
icul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1, 2
019
Asi
a Pa
cific
219.
7516
3.64
Rus
sia
and
CIS
18,2
51.2
0(2
6,82
9.85
)La
tin A
mer
ica
626.
35(2
,846
.19)
Mid
dle
East
and
Afr
ica
35,2
99.8
316
,704
.22
Una
lloca
ted
1,09
3.01
34,8
38.3
655
,490
.14
22,0
30.1
8
45.7
Info
rmat
ion
abou
t maj
or c
usto
mer
s
45.8
Info
rmat
ion
abou
t geo
grap
hica
l are
as:
Loc
atio
nA
s at M
arch
31,
20
20A
s at M
arch
31,
201
9
Indi
a 7,
187.
366,
543.
02O
ther
Cou
ntrie
s76
7,34
6.40
712,
500.
60T
otal
77
4,53
3.76
719,
043.
62
45.9
Info
rmat
ion
abou
t pro
duct
s and
serv
ices
:
The
Com
pany
deriv
esre
venu
efr
omsa
leof
crud
eoi
l,na
tura
lgas
and
cond
ensa
te.T
hein
form
atio
nab
outr
even
uesf
rom
exte
rnal
cust
omer
sabo
utea
chpr
oduc
tisd
iscl
osed
in n
ote
31 o
f the
fina
ncia
l sta
tem
ents
.
The
tota
l of n
on-c
urre
nt a
sset
s oth
er th
an fi
nanc
ial i
nstru
men
ts a
nd ta
x as
sets
bro
ken
dow
n by
loca
tion
of a
sset
s are
show
n be
low
:
Com
pany
’ssi
gnifi
cant
reve
nues
are
deriv
edfr
omsa
les
toO
ilM
arke
ting
Com
pani
esan
dIn
tern
atio
nal
Oil
Com
pani
es(IO
Cs)
whi
char
ere
pute
dan
dN
atio
nal
Oil
Com
pani
es(N
OC
s).2
cust
omer
svi
z.Sh
ell
Inte
rnat
iona
lEa
ster
nTr
adin
gan
dG
lenc
ore
Sing
apor
ePt
eLt
d.co
ntrib
uted
toap
prox
imat
ely
12%
each
ofth
eco
mpa
ny's
reve
nue
for t
he y
ear 2
019-
20. A
part
from
this
, no
sing
le c
usto
mer
con
tribu
ted
10%
or m
ore
to th
e co
mpa
ny’s
reve
nue
for b
oth
the
year
s 201
9-20
and
201
8-19
.
The
Com
pany
isdo
mic
iled
inIn
dia,
how
ever
,th
eC
ompa
nyis
enga
ged
inpr
ospe
ctin
gfo
ran
dac
quis
ition
ofoi
lan
dga
sac
rage
sou
tsid
eIn
dia
for
expl
orat
ion,
deve
lopm
ent a
nd p
rodu
ctio
n of
cru
de o
il an
d na
tura
l gas
. The
Com
pany
gen
erat
es it
s ent
ire re
venu
e fr
om c
usto
mer
s loc
ated
out
side
Indi
a.
Annu
al R
epor
t 201
9 - 2
034
2 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
46R
elat
ed P
arty
Dis
clos
ures
46.1
Nam
e of
rela
ted
parti
es a
nd d
escr
iptio
n of
rela
tions
hip:
AH
oldi
ng c
ompa
ny1
Oil
and
Nat
ural
Gas
Cor
pora
tion
Lim
ited
B.
Join
t Ven
ture
s1
ON
GC
Mitt
al E
nerg
y Li
mite
d, C
ypru
s2
Sudd
Pet
role
um O
pera
ting
Com
pany
, Mau
ritiu
s3
Man
saro
var E
nerg
y C
olom
bia
Lim
ited,
Col
ombi
a (th
roug
h O
NG
C A
maz
on A
lakn
anda
Ltd
.)4
Him
alay
a En
ergy
Syr
ia B
V, T
he N
ethe
rland
s (th
roug
h O
NG
C N
ile G
anga
B.V
.)
C.
Ass
ocia
te1
Petro
Car
abob
o S.
A.,
Ven
ezue
la (t
hrou
gh C
arab
obo
One
AB
)2
Car
abob
o In
geni
eria
Y C
onst
rucc
ione
s, S.
A, V
enez
uela
(thr
ough
Car
abob
o O
ne A
B)
3Pe
trole
ra In
dove
nezo
lana
SA
, Ven
ezue
la (t
hrou
gh O
NG
C N
ile G
anga
B.V
.)4
Sout
h Ea
st A
sia
Gas
Pip
elin
e Lt
d, H
ongk
ong
(thro
ugh
ON
GC
Nile
Gan
ga B
.V.)
5Ta
mba
BV
, The
Net
herla
nds (
thro
ugh
ON
GC
Nile
Gan
ga B
.V.)
6JS
C V
anko
rnef
t, R
ussi
a (th
roug
h O
NG
C V
ides
h Si
ngap
ore
Pte
Ltd.
)7 8 9
Falc
on O
il &
Gas
BV
, Net
herla
nds (
thro
ugh
ON
GC
Nile
Gan
ga B
.V.)
D.
Key
man
agem
ent p
erso
nnel
D.1
Cha
irm
an1
Mr.
Shas
hi S
hank
er
D.2
Who
le ti
me
dire
ctor
s1
Mr.
Shas
hi S
hank
er, M
anag
ing
Dire
ctor
upt
o O
ctob
er 3
1, 2
019
on a
dditi
onal
cha
rge
2M
r. V
ivek
anan
d, D
irect
or (F
inan
ce)
3M
r. G
S C
hatu
rved
i, D
irect
or (E
xplo
ratio
n)
4M
r. A
lok
Kum
ar G
upta
, Dire
ctor
(Ope
ratio
ns) w
ith e
ffec
t fro
m S
epte
mbe
r 4, 2
019
Moz
LN
G I
Hol
ding
Com
pany
Ltd
., A
bu D
habi
(10%
dire
ctly
and
6%
thro
ugh
subs
idia
ry B
eas R
ovum
a En
ergy
Moz
ambi
que
Ltd.
) w.e
.f A
pril
21, 2
019
Moz
ambi
que
LNG
I C
ompa
ny P
te L
td. S
inga
pore
(10%
dire
ctly
and
6%
thro
ugh
subs
idia
ry B
eas R
ovum
a En
ergy
Moz
ambi
que
Ltd.
) upt
o Ju
ne 2
019
Annu
al R
epor
t 201
9 - 2
034
3 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
D.3
Inde
pend
ent d
irec
tors
1M
r. A
jai M
alho
tra u
pto
Nov
embe
r 19,
201
92
Mr.
Bha
rate
ndu
Nat
h Sr
ivas
tava
3
Smt.
Kira
n O
bero
i Vas
udev
4
Mr.
Rak
esh
Kac
ker
D.4
Gov
ernm
ent n
omin
ee d
irec
tors
1 2 3
D.5
Com
pany
Sec
reta
ry1
Mr.
Raj
ni K
ant
E.
Tru
sts (
incl
udin
g po
st r
etir
emen
t em
ploy
ee b
enef
it tr
ust)
whe
rein
ON
GC
hav
ing
cont
rol
1O
NG
C C
ontri
buto
ry P
rovi
dent
Fun
d Tr
ust
2O
NG
C C
SSS
Trus
t3
ON
GC
PR
BS
Trus
t4
ON
GC
Gra
tuity
Fun
d 5
ON
GC
Sah
yog
Trus
t
46.2
Det
ails
of T
rans
actio
ns:
46.2
.1T
rans
actio
ns w
ith S
ubsi
diar
ies
46.2
.2T
rans
actio
ns w
ith H
oldi
ng C
ompa
ny
Nam
e of
rel
ated
par
tyFo
r th
e ye
ar e
nded
M
arch
31,
202
0Fo
r th
e ye
ar e
nded
M
arch
31,
201
9
A.
Serv
ices
rec
eive
d fr
om:
a)O
il an
d N
atur
al G
as C
orpo
ratio
n Li
mite
dR
eim
burs
emen
t of e
xpen
ses
1
88.3
9 49
8.52
b)O
il an
d N
atur
al G
as C
orpo
ratio
n Li
mite
dIn
tere
st e
xpen
ditu
re
-
3.58
Nat
ure
of tr
ansa
ctio
n
Mr.
B N
Red
dy, J
oint
Sec
reta
ry (I
C),
Min
istry
of P
etro
leum
& N
atur
al G
as, G
over
nmen
t of I
ndia
Mr.
Bal
deo
Puru
shar
tha,
Join
t Sec
reta
ry, D
epar
tmen
t of E
cono
mic
Aff
airs
, Min
istry
of F
inan
ce, G
over
nmen
t of I
ndia
, fro
m A
pril
22, 2
020
Mr.
Kum
ar V
. Pra
tap,
Joi
nt S
ecre
tary
, Dep
artm
ent o
f Eco
nom
ic A
ffai
rs, M
inis
try o
f Fin
ance
, Gov
ernm
ent o
f Ind
ia u
pto
Apr
il 21
, 202
0
Inte
rgro
upre
late
dpa
rtytra
nsac
tions
and
outs
tand
ing
bala
nces
with
subs
idia
ries
com
pani
esar
eel
imin
ated
inth
epr
epar
atio
nof
Con
solid
ated
Fina
ncia
lSta
tem
ento
fthe
grou
p. H
ence
the
sam
e ha
s not
bee
n di
sclo
sed
in g
roup
rela
ted
party
tran
sact
ions
.
Annu
al R
epor
t 201
9 - 2
034
4 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
c)O
il an
d N
atur
al G
as C
orpo
ratio
n Li
mite
d74
.07
85.7
8d)
Oil
and
Nat
ural
Gas
Cor
pora
tion
Lim
ited
Plat
ts S
ubsc
riptio
n C
harg
es
40
.66
-e)
Oil
and
Nat
ural
Gas
Cor
pora
tion
Lim
ited
Com
mon
Cos
ts o
f DU
B
80
.24
-f)
Oil
and
Nat
ural
Gas
Cor
pora
tion
Lim
ited
List
ing
Fees
SG
X
0
.90
-g)
Oil
and
Nat
ural
Gas
Cor
pora
tion
Lim
ited
2.9
9 -
h)O
il an
d N
atur
al G
as C
orpo
ratio
n Li
mite
d
7
.43
-
i)O
il an
d N
atur
al G
as C
orpo
ratio
n Li
mite
d27
6.41
318.
02j)
Oil
and
Nat
ural
Gas
Cor
pora
tion
Lim
ited
Con
sulta
ncy
serv
ices
(MEC
L)-
28.2
2
B.
Loa
n ta
ken
a)O
il an
d N
atur
al G
as C
orpo
ratio
n Li
mite
d-
1,86
0.00
b)O
il an
d N
atur
al G
as C
orpo
ratio
n Li
mite
d -
1,86
0.00
C.
Div
iden
d:
a)O
il an
d N
atur
al G
as C
orpo
ratio
n Li
mite
dD
ivid
end
Paid
5,10
0.00
3,00
0.00
D.
Non
Cas
h tr
ansa
ctio
n (I
nd A
S fa
ir v
alua
tion)
a)O
il an
d N
atur
al G
as C
orpo
ratio
n Li
mite
d-
-b)
Oil
and
Nat
ural
Gas
Cor
pora
tion
Lim
ited
449.
5346
4.72
46.2
.3O
utst
andi
ng b
alan
ces w
ith h
oldi
ng c
ompa
ny
Nam
e of
rel
ated
par
tyA
s at M
arch
31,
20
20A
s at M
arch
31,
20
19
A)
Am
ount
rec
eiva
ble/
(pay
able
):a)
Oil
and
Nat
ural
Gas
Cor
pora
tion
Lim
ited
152.
24(2
15.2
3)b)
Oil
and
Nat
ural
Gas
Cor
pora
tion
Lim
ited
(104
.84)
(18.
77)
c)O
il an
d N
atur
al G
as C
orpo
ratio
n Li
mite
d (2
94.1
6)(2
79.9
3)
Rei
mbu
rsem
ent o
f exp
ense
s
Loan
repa
idLo
an ta
ken
Stat
utor
y ch
arge
s on
Gua
rant
ee F
ee
Inte
rest
exp
endi
ture
Gua
rant
ee fe
e in
resp
ect o
f fin
anci
al
guar
ante
e
Con
sulta
ncy
serv
ices
(OV
L C
olom
bia
Bra
nch)
Gua
rant
ee F
ee (O
VV
L)
Nat
ure
of tr
ansa
ctio
n
Stat
utor
y ch
arge
s on
Gua
rant
ee F
ee
Gua
rant
ee F
ee (O
VV
L)
Proc
essi
ng o
f 2D
Sei
smic
Dat
a
Annu
al R
epor
t 201
9 - 2
034
5 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
46.2
.4T
rans
actio
ns w
ith jo
int v
entu
res/
asso
ciat
e
Nam
e of
rel
ated
par
tyA
s at M
arch
31,
20
20A
s at M
arch
31,
20
19
A.
Serv
ices
rec
eive
d fr
om:
a)Fa
lcon
Oil
& G
as B
V, N
ethe
rland
s (th
roug
h O
NG
C N
ile
Gan
ga B
.V.)
Rei
mbu
rsem
ent o
f exp
ense
3.4
6 -
B.
Serv
ices
pro
vide
d to
:a)
Falc
on O
il &
Gas
BV
, Net
herla
nds (
thro
ugh
ON
GC
Nile
G
anga
B.V
.)15
5.66
-
b)Su
dd P
etro
leum
Ope
ratin
g C
ompa
ny, M
aurit
ius
86.9
628
.26
c)Fa
lcon
Oil
& G
as B
V, N
ethe
rland
s (th
roug
h O
NG
C N
ile
Gan
ga B
.V.)
0.89
7.13
C.
Add
ition
al In
vest
men
ta)
Moz
. LN
G1
Hol
ding
Com
pany
Ltd
Inve
stm
ent i
n eq
uity
cap
ital
23.6
1-
D.
Loa
n R
epai
d by
a) S
outh
Eas
t Asi
a G
as P
ipel
ine
Ltd,
Hon
gkon
g (th
roug
h O
NG
C N
ile G
anga
B.V
.)Lo
an re
paid
by
Ass
ocia
te1,
031.
561,
017.
46
E.
Inte
rest
Inco
me
from
a) S
outh
Eas
t Asi
a G
as P
ipel
ine
Ltd,
Hon
gkon
g (th
roug
h O
NG
C N
ile G
anga
B.V
.)In
tere
st In
com
e33
9.56
436.
66
b)Pe
trole
ra In
dove
nezo
lana
SA
, Ven
ezue
la (t
hrou
gh O
NG
C
Nile
Gan
ga B
.V.)
Inte
rest
Inco
me
113.
2510
5.23
F.A
ny o
ther
tran
sact
ion
a)M
ozam
biqu
e LN
G1
Co.
Pte
. Ltd
.16
.66
-
46.2
.5O
utst
andi
ng b
alan
ces w
ith jo
int v
entu
res/
asso
ciat
e
Nam
e of
rel
ated
par
tyA
s at M
arch
31,
20
20A
s at M
arch
31,
20
19
Dep
utat
ion
of m
anpo
wer
and
oth
er c
harg
es
Rei
mbu
rsem
ent o
f exp
ense
incu
rred
Swap
of I
nves
tmen
t
Nat
ure
of tr
ansa
ctio
n
Dep
utat
ion
of m
anpo
wer
and
oth
er c
harg
es
Nat
ure
of tr
ansa
ctio
n
Annu
al R
epor
t 201
9 - 2
034
6 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
A.
Rec
eiva
bles
:a)
Falc
onO
il&
Gas
BV
,N
ethe
rland
s(th
roug
hO
NG
CN
ileG
anga
B.V
.)14
.78
-
b)Su
dd P
etro
leum
Ope
ratin
g C
ompa
ny, M
aurit
ius
83.5
3
2
8.26
c)
Falc
onO
il&
Gas
BV
,N
ethe
rland
s(th
roug
hO
NG
CN
ileG
anga
B.V
.)6.
04
7.0
6
B.
Loa
ns:
a)H
imal
aya
Ener
gySy
riaB
V,T
heN
ethe
rland
s(th
roug
hO
NG
CN
ile G
anga
B.V
.)Lo
an T
aken
297.
92
27
9.55
b)So
uth
East
Asi
aG
asPi
pelin
eLt
d,H
ongk
ong
(thro
ugh
ON
GC
Nile
Gan
ga B
.V.)
Loan
Giv
en4,
892.
65
5,49
2.99
c)Pe
trole
raIn
dove
nezo
lana
SA,
Ven
ezue
la(th
roug
hO
NG
CN
ile G
anga
B.V
.)Lo
an G
iven
1,29
1.37
1,
184.
10
46.2
.6C
ompe
nsat
ion
of k
ey m
anag
emen
t per
sonn
el
Part
icul
ars
For
the
year
end
ed
Mar
ch 3
1, 2
020
For
the
year
end
ed
Mar
ch 3
1, 2
019
Shor
t ter
m e
mpl
oyee
ben
efits
22.3
153
.10
Post
-em
ploy
men
t ben
efits
4.49
5.31
Oth
er lo
ng te
rm b
enef
its2.
850.
31Si
tting
fees
to in
depe
nden
t dire
ctor
s3.
014.
17T
otal
32.6
662
.89
46.3
46.4
Ther
e ar
e no
tran
sact
ions
with
Key
Man
eger
ial P
erso
nnel
or t
heir
rela
tives
dur
ing
the
year
exc
ept a
s dis
clos
ed a
bove
.
Dis
clos
ure
in r
espe
ct o
f Gov
ernm
ent C
ontr
olle
d E
ntiti
es (d
iscl
osur
es w
ith r
espe
ct to
hol
ding
com
pany
has
bee
n gi
ven
at n
ote
46.2
.2 a
nd 4
6.2.
3)
Loan
repa
idby
key
man
ager
ialp
erso
nnel
durin
gth
eye
aren
ded
Mar
ch31
,202
0₹
0.36
mill
ion
(yea
rend
edM
arch
31,2
019:
₹0.3
0m
illio
n).L
oans
toem
ploy
eesi
nclu
des
an a
mou
nt o
f ₹ 1
.03
mill
ion
(As a
t Mar
ch 3
1, 2
019
₹ 0.
72 m
illio
n) o
utst
andi
ng fr
om k
ey m
anag
eria
l per
sonn
el.
The
Com
pany
has
ente
red
into
vario
ustra
nsac
tions
such
aste
leph
one
expe
nses
,air
trave
l,fu
elpu
rcha
se,i
nsur
ance
and
depo
sits
etc.
with
abov
em
entio
ned
and
othe
rva
rious
gov
ernm
ent r
elat
ed e
ntiti
es. T
hese
tran
sact
ions
are
insi
gnifi
cant
indi
vidu
ally
and
col
lect
ivel
y an
d he
nce
not d
iscl
osed
.
Dep
utat
ion
of m
anpo
wer
and
oth
er c
harg
es
Dep
utat
ion
of m
anpo
wer
and
oth
er c
harg
esR
eim
burs
emen
t of e
xpen
se
Dis
clos
ure
of tr
ansa
ctio
n w
ith K
ey M
aneg
eria
l per
sonn
el a
nd th
eir
rela
tives
Annu
al R
epor
t 201
9 - 2
034
7 of
373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
47 Disclosure of interests in joint arrangements:
47.1 Joint operations
1 Azeri, Chirag, Guneshli Fields (ACG), Azerbaijan, Offshore
2.31 BP - 30.37%SOCAR - 25.00%Chevron - 9.57%INPEX - 9.31%Equinor^ - 7.27%Exxon-Mobil - 6.79%TPAO - 5.73%Itochu - 3.65%
BP The project is under development andproduction
2 Block 06.1, Vietnam, Offshore 45 Rosneft Vietnam B.V. - 35%Petro Vietnam - 20%
Rosneft Vietnam B.V.
The project is under development andproduction
3 Block 5A, South Sudan, Onshore 24.125 Petronas - 67.875%Nilepet - 8%
Joint Operatorship byall partners.
The project is under exploration,development and production however thefield continues to be under shut downsince December 2013. Presentlyproduction resumption activities areunderway while awaiting for executionaddendum to EPSA for Block 5A.
4 Block A-1, Myanmar, Offshore 17 POSCO Daewoo Cooperation - 51%MOGE- 15%GAIL – 8.5%KOGAS – 8.5%
POSCO Daewoo Cooperation
The project is under Production.
5 Block A-3, Myanmar, Offshore 17 POSCO Daewoo Cooperation - 51%MOGE- 15%GAIL – 8.5%KOGAS – 8.5%
POSCO Daewoo Cooperation
The project is under production
6 Block Area 1, Mozambique, Offshore
10 ## TOTAL- 26.5%MITSUI-20%ENH-15%BPRL-10%BREML-10% #PTTEP-8.5%
TEPMA-1 The project is under development
7 Block B2, Myanmar, Onshore 97 Machinery and SolutionsCompany Ltd. - 3%
ONGC Videsh The project is under exploration
8 Block CPO-5, Colombia, Onshore 70 PetroDorado – 30% ONGC Videsh The project is under exploration
9 Block EP3, Myanmar, Onshore 97 Machinery and SolutionsCompany Ltd. - 3%
ONGC Videsh The project is under exploration
10 Block Farsi, Iran, Offshore 40 IOC – 40%OIL - 20%
ONGC Videsh The project’s exploration phase underExploration Service Contract (ESC) endedon 24 June 2009. Agreement on MDP andDevelopment Service Contract is yet to beagreed.
11 Block RC-9, Colombia, Offshore 50 Ecopetrol - 50% Ecopetrol The project is under exploration12 Block RC-10, Colombia, Offshore 50 Ecopetrol - 50% ONGC Videsh The project is under exploration
13 Block SS 04, Bangladesh, Offshore 45 OIL-45%BAPEX-10%
ONGC Videsh The project is under exploration
14 Block SS 09, Bangladesh, Offshore 45 OIL-45%BAPEX-10%
ONGC Videsh The project is under exploration
15 Block SSJN-7, Colombia, Onshore 50 Pacific - 50% Pacific The project is under exploration
16 Block XXIV, Syria, Onshore 60 IPRMEL - 25%Triocean-15%
IPR MEL The project is temporarily shut down dueto deteriorated law and order situation inthe country since April 2012
The details of Company’s joint operations are as under:
S.no Name of the Project and Country of Operation
Company’s participating
Other Consortium Members
Operator Project status
Annual Report 2019 - 20 348 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
17 Sakhalin -1, Russia, Offshore 20 ENL - 30%SODECO - 30%SMNG - 11.5%R N Astra - 8.5%
ENL The project is under development andproduction.
18 Satpayev Contract Area 3575,Kazakhstan, Offshore
25 KMG – 75% SOLLP The project is under winding up
19 SHWE Offshore Pipeline, Myanmar, Offshore
17 Posco Daewoo Corporation – 51%MOGE- 15%GAIL – 8.5%KOGAS – 8.5%
Posco Daewoo Corporation
Pipeline is completed and is under use fortransportation of gas from Blocks A1/A3,Myanmar
20 Port Sudan Product Pipeline, Sudan
90 OIL – 10% ONGC Videsh Pipeline is completed and handed over toGovt. of Sudan
21 Block 2a & 4, GNPOC. Sudan, (Through ONGC Nile Ganga B.V.)
25 CNPC - 40%Petronas - 30%Sudapet - 5%
Joint Operatorship (GNPOC)
The project had been surrendered and EPSA terminated on 31st August 2019
22 Block 1a, 1b, & 4, GPOC. South Sudan, (Through ONGC Nile Ganga B.V.)
25* CNPC - 40%Petronas - 30%Nilepet - 5%
Joint Operatorship (GPOC)
The project is under production.
23 Block BC-10 Brazil, Offshore (Through ONGC Campos Ltda,)
27 Shell – 50%QPI – 23%
Shell The project is under development and production
24 Block BM-SEAL-4 Brazil, Offshore (Through ONGC Campos Ltda,)
25 Petrobras- 75% Petrobras The project is under exploration
25 Block PEL-0037, Offshore Namibia through ONGC Videsh Vankorneft Pte. Ltd
30* Tullow Namibia Ltd - 35% Pancontinental Namibia ( Pty) Ltd - 30% Paragon Oil & Gas ( Pty) Ltd -5%
Tullow Namibia Ltd Notice of Withdrawal for relinquishment of OVVL PI was served in January, 2020. The Block stands relinquished as on date.
26 Lower Zakum Abu Dhabi (through Falcon Oil and gas B.V.)
4 IndOil Global B.V. - 3%BPRL International Ventures B.V. - 3%ADNOC-60%Japan’s Inpex-10%CNPC-10%Eni-5%TOTAL-5%
Adnoc Offshore The project is under development and production
27 Block-32, Offshore Israel (through Indus East Mediterranean Exploration Ltd.)
25 OIL - 25%IOCL - 25%BPRL - 25%
ONGC Videsh The Minimum Work Program as per terms of the License has been completed. Currently approval is being obtained for relinquishment of the Block
^Earlier Statoil - Den Norske Stats Oljeselskap
Note: There is no change in previous year details unless otherwise stated.
Abbreviations used:TOTAL - Total S.A, France; BAPEX - Bangladesh Petroleum Exploration & Production Company Limited; BP - British Petroleum; BPRL - BharatPetroResources Limited; BREML - Beas Rovuma Energy Mozambique Limited; Chevron - Chevron Corporation; CNPC- China National PetroleumCorporation; Daewoo - Daewoo International Corporation; Ecopetrol - Ecopetrol S.A, Colombia; ENH - Empresa Nacional De Hidrocarbonates, E.P.; ENL -Exxon Neftegas Limited; Exxon Mobil - Exxon Mobil Corporation; GAIL - GAIL (India) Limited; INPEX - INPEX Corporation; IOC - Indian OilCorporation Limited; IPRMEL - IPR Mediterranean Exploration Limited; Itochu - Itochu Corporation; KMG - Kazmunaygas; KOGAS - Korea GasCorporation; MITSUI - MITSUI & Co. Limited; MOGE - Myanmar Oil and Gas Enterprise; Nilepet - Nile Petroleum Corporation; OIL - Oil India Limited;ONGC Videsh - ONGC Videsh Limited; Pacific - Pacific Stratus Energy, Colombia; Petrobras - Petrobras Colombia Ltd; PetroDorado - PetroDorado SouthAmerica S.A.; Petronas - Petronas Carigali Overseas SdnBhd; Petrovietnam - Vietnam Oil and Gas Group; PTTEP - PTT Public Company Limited; QPI-Qatar Petroleum International; SMNG - Sakhalinmorneftegas Shelf; SOCAR - State Oil Company of Azerbaijan Republic; SODECO - Sakhalin OilDevelopment Company Limited; SOLLP - Satpavey Operating LLP; STATOIL - Den Norske Stats Oljeselskap; TPAO - Turkiye Petrolleri A.O; Triocean -TriOcean Mediterranean, TEPMA=Total E&P Mozambique Area 1 Limitada
* Block surrendered during the year FY 2019-20
# ONGC Videsh Limited holds 60% shares in BREML.## Held by OVRL India Limited (wholly owned subsisdiary of ONGC Videsh Limited) w.e.f January 1, 2020
Annual Report 2019 - 20 349 of 373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
47.2
The
Fin
anci
al p
ositi
on o
f the
Joi
nt O
pera
tion
bloc
ks /
proj
ects
are
as u
nder
:
As a
t Mar
ch 3
1, 2
020
Part
icul
ars
Cur
rent
A
sset
sN
on-C
urre
nt
Ass
ets
Cur
rent
L
iabi
litie
sN
on-C
urre
nt
Lia
bilit
ies
Tot
al
Rev
enue
Prof
it or
L
oss f
rom
co
ntin
uing
op
erat
ions
Prof
it or
L
oss f
rom
di
scon
tinue
d op
erat
ions
Oth
er
Com
preh
ensiv
e In
com
e
Tot
al
Com
preh
ensiv
e In
com
e
A. A
udite
d as
at 3
1 M
arch
, 202
0B
lock
06.
1, V
ietn
am1,
316.
847,
937.
531,
316.
001,
843.
7610
,243
.24
4,70
3.84
--
4,70
3.84
Blo
ck S
akha
lin 1
, Rus
sia
16,4
34.8
822
9,49
0.74
8,18
5.92
34,3
49.1
182
,032
.87
32,2
84.5
6-
-32
,284
.56
Tot
al (A
)17
,751
.72
237,
428.
279,
501.
9136
,192
.86
92,2
76.1
136
,988
.39
--
36,9
88.3
9B
. Aud
ited
as o
f 31
Dec
embe
r, 2
019
Blo
ck C
PO 5
, Col
ombi
a37
3.20
847.
691,
239.
73-
5,20
9.26
4,54
8.39
--
4,54
8.39
Tot
al (B
)37
3.20
847.
691,
239.
73-
5,20
9.26
4,54
8.39
--
4,54
8.39
C. U
naud
ited
Port
Suda
n Pr
oduc
t Pip
elin
e, S
udan
6.35
0.00
1,91
7.51
--
185.
81-
-18
5.81
Blo
ck F
arsi
, Ira
n67
.62
(0.0
4)3.
35-
-(1
3.83
)-
-(1
3.83
)B
lock
SS-
04, B
angl
ades
h48
.23
60.2
250
.29
--
(40.
45)
--
(40.
45)
Blo
ck S
S-09
, Ban
glad
esh
79.4
99.
3141
.03
--
(36.
78)
--
(36.
78)
GN
POC
& G
POC
, Sud
an5,
349.
5232
,893
.07
9,41
3.90
2,96
1.56
11,4
32.7
9(1
5,41
4.25
)-
-(1
5,41
4.25
)B
C-1
0, B
razi
l & B
lock
BM
-SEA
L-4
3,61
5.93
32,5
24.4
22,
076.
9419
,039
.18
15,5
51.6
8(2
,058
.39)
--
(2,0
58.3
9)B
lock
A-1
, Mya
nmar
2,71
5.23
11,3
17.6
81,
817.
24-
8,31
8.93
4,41
4.22
--
4,41
4.22
Blo
ck A
-3, M
yanm
ar41
9.42
2,44
1.72
917.
64-
5,36
6.59
1,89
3.38
--
1,89
3.38
SHW
E O
ffsho
re P
ipel
ine,
Mya
nmar
265.
711,
434.
3224
8.08
-2,
536.
021,
790.
93-
-1,
790.
93B
lock
Are
a 1,
Moz
ambi
que
231.
5222
9,29
1.04
2,59
7.66
--
(7,9
07.3
9)-
(121
.02)
(8,0
28.4
1)B
lock
AC
G, A
zerb
aija
n 1,
085.
1439
,915
.98
1,03
1.56
11,7
77.0
98,
214.
24(2
,140
.64)
--
(2,1
40.6
4)B
lock
SSJ
N-7
, Col
ombi
a-
-45
.81
--
(112
.31)
--
(112
.31)
Blo
ck R
C-9
, Col
ombi
a-
(0.0
0)7.
67-
-(1
.44)
--
(1.4
4)B
lock
RC
-10,
Col
ombi
a39
.19
0.03
--
-(0
.70)
--
(0.7
0)M
yanm
ar B
lock
EP
3, O
/S (N
on-O
p)25
.36
0.41
72.1
0-
-(4
7.57
)-
-(4
7.57
)M
yanm
ar B
lock
B2
Ons
hore
224.
990.
0632
0.82
--
(51.
45)
--
(51.
45)
Blo
ck 5
A, S
outh
Sud
an72
8.68
5,23
4.37
673.
28-
-(4
,920
.83)
--
(4,9
20.8
3)B
lock
Sat
paye
v, K
azak
hsta
n3.
718.
070.
14-
-(2
20.9
6)-
-(2
20.9
6)B
lock
24,
Syr
ia64
.31
0.41
631.
91-
-(4
.58)
--
(4.5
8) T
otal
( C
) 14
,970
.39
355,
131.
0621
,866
.94
33,7
77.8
251
,420
.26
(24,
687.
24)
-(1
21.0
2)(2
4,80
8.26
) G
rand
Tot
al33
,095
.31
593,
407.
0232
,608
.59
69,9
70.6
914
8,90
5.63
16,8
49.5
4-
(121
.02)
16,7
28.5
2
Annu
al R
epor
t 201
9 - 2
035
0 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
As a
t Mar
ch 3
1, 2
019
Part
icul
ars
Cur
rent
A
sset
sN
on-C
urre
nt
Ass
ets
Cur
rent
L
iabi
litie
sN
on-C
urre
nt
Lia
bilit
ies
Tot
al
Rev
enue
Prof
it or
L
oss f
rom
co
ntin
uing
op
erat
ions
Prof
it or
L
oss f
rom
di
scon
tinue
d op
erat
ions
Oth
er
Com
preh
ensiv
e In
com
e
Tot
al
Com
preh
ensiv
e In
com
e
Blo
ck 0
6.1,
Vie
tnam
2,07
2.54
8,13
3.66
1,29
6.18
1,62
2.85
9,74
1.39
4,60
6.00
--
4,60
6.00
Port
Suda
n Pr
oduc
t Pip
elin
e, S
udan
3.98
-39
6.89
--
(62.
83)
--
(62.
83)
Blo
ck F
arsi
, Ira
n1.
880.
1766
.17
--
(88.
79)
--
(88.
79)
Blo
ck S
S-04
, Ban
glad
esh
12.7
639
.09
56.2
5-
-(1
1.60
)-
-(1
1.60
)B
lock
SS-
09, B
angl
ades
h5.
380.
5120
.79
--
(33.
61)
--
(33.
61)
GN
POC
& G
POC
, Sud
an4,
272.
2523
,927
.40
10,0
26.2
514
2.30
6,78
4.04
(475
.13)
--
(475
.13)
BC
-10,
Bra
zil &
Blo
ck B
M-S
EAL-
4 4,
960.
4040
,980
.76
3,15
3.09
22,2
87.6
816
,813
.05
(3,3
56.9
4)-
-(3
,356
.94)
Blo
ck S
akha
lin 1
, Rus
sia
16,8
56.4
623
6,25
2.48
7,88
1.77
29,9
91.9
886
,428
.88
37,3
41.2
1-
-37
,341
.21
Blo
ck R
C-9
, Col
ombi
a-
-6.
75-
-(8
6.15
)-
-(8
6.15
)B
lock
RC
-10,
Col
ombi
a0.
290.
0275
.23
--
(1,5
11.5
6)-
-(1
,511
.56)
Blo
ck C
PO 5
, Col
ombi
a1,
268.
7787
.10
21.3
3-
2,46
8.28
1,46
8.63
--
1,46
8.63
Blo
ck A
CG
, Aze
rbai
jan
(Ref
er n
ote
25.3
)58
0.53
40,5
49.3
983
8.74
10,4
50.4
76,
885.
961,
614.
15-
-1,
614.
15B
lock
SSJ
N-7
, Col
ombi
a-
--
--
--
--
Blo
ck A
-1, M
yanm
ar1,
455.
5611
,366
.36
2,18
1.43
-4,
323.
382,
188.
18-
-2,
188.
18B
lock
A-3
, Mya
nmar
86.2
82,
865.
491,
095.
17-
4,40
7.61
2,21
9.06
--
2,21
9.06
SHW
E O
ffsho
re P
ipel
ine,
Mya
nmar
55.0
81,
507.
6752
8.88
-1,
603.
121,
118.
14-
-1,
118.
14M
yanm
ar B
lock
EP
3, O
/S (N
on-O
p)66
.45
0.18
128.
19-
-(8
8.09
)-
-(8
8.09
)M
yanm
ar B
lock
B2
Ons
hore
285.
5526
.57
117.
29-
-(6
81.7
9)-
-(6
81.7
9)B
lock
Are
a 1,
Moz
ambi
que
510.
6420
0,12
9.01
483.
63-
-24
.08
--
24.0
8B
lock
5A
, Sou
th S
udan
135.
938,
971.
411,
174.
57-
-(5
,956
.43)
--
(5,9
56.4
3)B
lock
Sat
paye
v, K
azak
hsta
n19
8.27
9.03
--
-13
6.26
--
136.
26B
lock
24,
Syr
ia59
.71
0.38
574.
07-
-(0
.69)
--
(0.6
9)
Gra
nd T
otal
32,8
88.7
157
4,84
6.68
30,1
22.6
764
,495
.28
139,
455.
7138
,362
.10
--
38,3
62.1
0
Fina
ncia
l inf
orm
atio
n is
not
pre
sent
ed in
resp
ect o
f clo
sed
proj
ects
.
Annu
al R
epor
t 201
9 - 2
035
1 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
47.3
Add
ition
al F
inan
cial
info
rmat
ion
rela
ted
to J
oint
Ope
ratio
n bl
ocks
/ pr
ojec
ts a
re a
s und
er:
As a
t Mar
ch 3
1, 2
020
Part
icul
ars
Cas
h an
d C
ash
Equ
ival
ents
Cur
rent
Fi
nanc
ial
Lia
bilit
ies
Non
-Cur
rent
Fi
nanc
ial
Lia
bilit
ies
Dep
reci
atio
n an
d A
mor
tisat
ion
Inte
rest
In
com
eIn
tere
st
Exp
ense
Inco
me
Tax
E
xpen
se o
r In
com
e
Blo
ck 0
6.1,
Vie
tnam
210.
871,
316.
00-
1,99
1.85
0.77
--
Port
Suda
n Pr
oduc
t Pip
elin
e, S
udan
4.43
1,91
7.51
--
0.08
--
Blo
ck F
arsi
, Ira
n15
.73
3.35
-0.
000.
18-
-B
lock
SS-
04, B
angl
ades
h38
.84
50.2
9-
(0.0
0)-
--
Blo
ck S
S-09
, Ban
glad
esh
55.5
241
.03
-(0
.00)
--
-G
NPO
C &
GPO
C, S
udan
2,60
1.59
9,41
3.90
2,96
1.56
2,48
5.82
--
(1,6
40.0
4)B
C-1
0, B
razi
l & B
lock
BM
-SEA
L-4
1,41
9.16
2,01
2.71
15,8
02.6
78,
685.
6212
2.33
2,23
4.83
(1,0
58.3
1)B
lock
Sak
halin
1, R
ussi
a5,
122.
537,
701.
77-
14,3
79.1
211
4.15
-17
,118
.37
Blo
ck R
C-9
, Col
ombi
a-
7.67
--
0.72
--
Blo
ck R
C-1
0, C
olom
bia
--
-0.
001.
67-
-B
lock
CPO
5, C
olom
bia
17.4
11,
239.
73-
0.03
4.16
--
Blo
ck A
CG
, Aze
rbai
jan
2.60
2,00
8.07
3,89
8.30
2,59
8.18
1.93
-1,
013.
69B
lock
SSJ
N-7
, Col
ombi
a-
45.8
1-
--
-B
lock
A-1
, Mya
nmar
206.
07(9
95.5
1)-
2,67
6.48
-(3
20.4
9)B
lock
A-3
, Mya
nmar
372.
6164
7.54
-88
3.36
-82
9.94
SHW
E O
ffsho
re P
ipel
ine,
Mya
nmar
19.3
315
.55
-19
8.45
-44
0.25
Mya
nmar
Blo
ck E
P 3,
O/S
(Non
-Op)
23.1
172
.10
-(0
.00)
--
Mya
nmar
Blo
ck B
2 O
nsho
re22
2.89
320.
82-
(0.0
0)-
-B
lock
Are
a 1,
Moz
ambi
que
0.01
2,59
6.54
-0.
40-
--
Blo
ck 5
A, S
outh
Sud
an31
5.61
673.
28-
31.4
6-
-B
lock
Sat
paye
v, K
azak
hsta
n3.
710.
14-
1.68
--
Blo
ck 2
4, S
yria
-63
1.91
-0.
00-
- G
rand
Tot
al10
,652
.01
29,7
20.2
222
,662
.53
33,9
32.4
424
5.99
2,23
4.83
16,3
83.4
2
Annu
al R
epor
t 201
9 - 2
035
2 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
As a
t Mar
ch 3
1, 2
019
Part
icul
ars
Cas
h an
d C
ash
Equ
ival
ents
Cur
rent
Fi
nanc
ial
Lia
bilit
ies
Non
-Cur
rent
Fi
nanc
ial
Lia
bilit
ies
Dep
reci
atio
n an
d A
mor
tisat
ion
Inte
rest
In
com
eIn
tere
st
Exp
ense
Inco
me
Tax
E
xpen
se o
r In
com
e
Blo
ck 0
6.1,
Vie
tnam
224.
781,
296.
18-
1,64
8.71
1.34
--
Port
Suda
n Pr
oduc
t Pip
elin
e, S
udan
3.98
396.
89-
-0.
08-
-B
lock
Far
si, Ir
an1.
8866
.17
--
0.04
--
Blo
ck S
S-04
, Ban
glad
esh
12.7
656
.25
--
--
-B
lock
SS-
09, B
angl
ades
h5.
3820
.79
--
--
-G
NPO
C &
GPO
C, S
udan
258.
5310
,026
.25
142.
303,
106.
6830
8.94
115.
25(2
,316
.12)
BC
-10,
Bra
zil &
Blo
ck B
M-S
EAL-
4 1,
450.
152,
038.
8320
,395
.36
10,0
84.6
784
.69
4,62
5.97
-B
lock
Sak
halin
1, R
ussi
a3,
153.
227,
587.
40-
13,8
40.7
728
.55
-17
,192
.46
Blo
ck R
C-9
, Col
ombi
a-
6.75
--
1.31
--
Blo
ck R
C-1
0, C
olom
bia
0.29
75.2
3-
0.07
1.75
--
Blo
ck C
PO 5
, Col
ombi
a0.
9821
.33
-0.
016.
23-
-B
lock
AC
G, A
zerb
aija
n (R
efer
not
e 25
.3)
2.07
838.
744,
424.
032,
815.
570.
74-
1,02
1.23
Blo
ck S
SJN
-7, C
olom
bia
--
--
--
-B
lock
A-1
, Mya
nmar
43.9
758
8.81
-1,
432.
390.
08-
(238
.62)
Blo
ck A
-3, M
yanm
ar72
.70
133.
52-
744.
200.
10-
427.
31SH
WE
Offs
hore
Pip
elin
e, M
yanm
ar16
.42
11.5
9-
225.
040.
03-
163.
71M
yanm
ar B
lock
EP
3, O
/S (N
on-O
p)66
.45
128.
19-
--
--
Mya
nmar
Blo
ck B
2 O
nsho
re28
5.55
117.
29-
--
--
Blo
ck A
rea
1, M
ozam
biqu
e3.
9348
3.63
-(1
3.85
)-
--
Blo
ck 5
A, S
outh
Sud
an69
.76
1,17
4.57
-64
.96
--
-B
lock
Sat
paye
v, K
azak
hsta
n1.
63-
-0.
990.
01-
-B
lock
24,
Syr
ia-
574.
07-
0.04
--
- G
rand
Tot
al5,
674.
4325
,642
.48
24,9
61.6
933
,950
.25
433.
894,
741.
2216
,249
.97
47.4
For f
inan
cial
pos
ition
of t
he m
ater
ial J
oint
Ven
ture
s and
ass
ocia
tes,
refe
r Not
e 12
.1.3
(a).
Fina
ncia
l inf
orm
atio
n is
not
pre
sent
ed in
resp
ect o
f clo
sed
proj
ects
.
Annu
al R
epor
t 201
9 - 2
035
3 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
48Fi
nanc
ial i
nstr
umen
ts
48.1
Cap
ital M
anag
emen
t
48.1
.1G
eari
ng R
atio
The
gear
ing
ratio
at e
nd o
f the
repo
rting
yea
r was
as f
ollo
ws:
Part
icul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1,
2019
Deb
t (R
efer
not
e 25
)42
3,63
4.22
416,
318.
62C
ash
and
cash
equ
ival
ents
(Ref
er n
ote
21)
40,7
90.2
530
,379
.10
Net
deb
t38
2,84
3.97
385,
939.
52To
tal e
quity
(Ref
er n
ote
22, 2
3 an
d 24
)51
5,68
6.40
503,
019.
59N
et d
ebt t
o to
tal e
quity
ratio
74.2
4%76
.72%
48.2
Fina
ncia
l ass
ets*
Part
icul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1,
2019
Mea
sure
d at
fair
val
ue th
roug
h pr
ofit
or lo
ss(a
)
Man
dato
rily
mea
sure
d:(i)
Inve
stm
ent i
n m
utua
l fun
ds fo
r site
rest
orat
ion
30,2
28.7
225
,082
.71
(ii)
Der
ivat
ive
asse
ts18
1.78
282.
27
Mea
sure
d at
am
ortis
ed c
ost
(a)
Tr
ade
rece
ivab
les
31,8
09.6
034
,207
.45
(b)
C
ash
and
cash
equ
ival
ents
40,7
90.2
530
,379
.10
(c)
D
epos
it un
der S
ite R
esto
ratio
n Fu
nd1,
313.
8395
8.21
(d)
Lo
ans
7,53
3.96
7,92
4.12
(e)
O
ther
fina
ncia
l ass
ets
84,1
92.4
851
,249
.99
Fina
nce
leas
e re
ceiv
able
s-
-
The
Com
pany
'sA
udit
Com
mitt
eere
view
sth
eca
pita
lstru
ctur
eof
the
Com
pany
ona
sem
i-ann
ualb
asis
.As
part
ofth
isre
view
,the
com
mitt
eeco
nsid
ers
the
cost
ofca
pita
land
the
risks
asso
ciat
edw
ithea
chcl
ass
ofca
pita
l.
Cat
egor
ies o
f fin
anci
al in
stru
men
ts
* In
vest
men
ts in
join
t ven
ture
s and
ass
ocia
tes h
ave
not b
een
incl
uded
, sin
ce th
ese
have
bee
n va
lued
at c
ost l
ess i
mpa
irmen
t.
The
capi
tal s
truct
ure
of th
e C
ompa
ny c
onsi
sts o
f net
deb
t (bo
rrow
ings
as d
etai
led
in n
ote
25 o
ffset
by
cash
and
ban
k ba
lanc
es) a
nd to
tal e
quity
of t
he C
ompa
ny.
The
Com
pany
’s o
bjec
tive
whe
n m
anag
ing
capi
tal i
s to
:• S
afeg
uard
its a
bilit
y to
con
tinue
as g
oing
con
cern
so th
at th
e C
ompa
ny is
abl
e to
pro
vide
retu
rn to
stak
ehol
ders
and
ben
efits
for o
ther
stak
ehol
ders
; and
• Mai
ntai
n an
opt
imal
cap
ital s
truct
ure
of d
ebt a
nd e
quity
bal
ance
Th
eC
ompa
nym
aint
ains
itsfin
anci
alfr
amew
ork
tosu
ppor
tthe
purs
uito
fval
uegr
owth
fors
hare
hold
ers,
whi
leen
surin
ga
secu
refin
anci
alba
se.I
nor
dert
om
aint
ain
orad
just
the
capi
tals
truct
ure,
the
Com
pany
may
adju
st th
e am
ount
of d
ivid
ends
pai
d to
shar
ehol
ders
, ret
urn
capi
tal t
o sh
areh
olde
rs, i
ssue
new
shar
es o
r sel
l ass
ets t
o re
duce
deb
t.
Annu
al R
epor
t 201
9 - 2
035
4 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
Fina
ncia
l lia
bilit
ies
Part
icul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1,
2019
Mea
sure
d at
fair
val
ue th
roug
h pr
ofit
or lo
ss(a
)
M
anda
toril
y m
easu
red:
(i)
D
eriv
ativ
e lia
bilit
ies
1,93
2.44
1,98
0.62
Mea
sure
d at
am
ortis
ed c
ost
(a)
B
orro
win
gs42
3,63
4.22
416,
318.
62(b
) T
rade
pay
able
s24
,850
.29
23,6
37.6
8(c
)
Oth
er fi
nanc
ial l
iabi
litie
s21
,075
.69
16,6
69.1
3(d
) Lea
se L
iabi
lity
6,33
2.84
6,65
2.45
48.3
Fina
ncia
l ris
k m
anag
emen
t obj
ectiv
es
48.4
Mar
ket R
isk
(a)
(b)
Mar
ketr
isk
isth
eris
kor
unce
rtain
tyar
isin
gfr
ompo
ssib
lem
arke
tpric
em
ovem
ents
and
thei
rim
pact
onth
efu
ture
perf
orm
ance
ofa
busi
ness
.The
maj
orco
mpo
nent
sof
mar
ketr
isk
are
pric
eris
k,fo
reig
ncu
rren
cyex
chan
ge ri
sk a
nd in
tere
st ra
te ri
sk.
The
prim
ary
com
mod
itypr
ice
risks
that
the
Com
pany
isex
pose
dto
incl
ude
inte
rnat
iona
lcru
deoi
lpric
esth
atco
uld
adve
rsel
yaf
fect
the
valu
eof
the
Com
pany
’sfin
anci
alas
sets
orex
pect
edfu
ture
cash
flow
s.Su
bsta
ntia
l or e
xten
ded
decl
ine
in in
tern
atio
nal p
rices
of c
rude
oil
and
natu
ral g
as m
ay h
ave
an a
dver
se e
ffect
on
the
Com
pany
’s re
porte
d re
sults
.
The
Com
pany
ent
ers i
nto
a va
riety
of d
eriv
ativ
e fin
anci
al in
stru
men
ts to
man
age
its e
xpos
ure
to fo
reig
n cu
rren
cy ri
sk a
nd in
tere
st ra
te ri
sk, i
nclu
ding
:
inte
rest
rate
swap
s to
miti
gate
the
varia
ble
of ri
sing
inte
rest
rate
Whi
leen
surin
gliq
uidi
tyis
suffi
cien
tto
mee
tC
ompa
ny’s
oper
atio
nal
requ
irem
ents
,the
Com
pany
’sm
anag
emen
tal
som
onito
rsan
dm
anag
eske
yfin
anci
alris
ksre
latin
gto
the
oper
atio
nsof
the
Com
pany
byan
alys
ing
expo
sure
s by
degr
ee a
nd m
agni
tude
of r
isks
. The
se ri
sks i
nclu
de m
arke
t ris
k (in
clud
ing
curr
ency
risk
, int
eres
t ris
k an
d pr
ice
risk)
, cre
dit r
isk
and
liqui
dity
risk
.
The
Com
pany
’sm
anag
emen
tsee
ksto
min
imis
eth
eef
fect
sof
thes
eris
ksby
usin
gde
rivat
ive
finan
cial
inst
rum
ents
tohe
dge
risk
expo
sure
s.Th
eus
eof
finan
cial
deriv
ativ
esis
gove
rned
byth
eco
mpa
ny's
polic
ies
appr
oved
byth
eB
oard
ofD
irect
ors,
whi
chpr
ovid
ew
ritte
npr
inci
ples
onfo
reig
nex
chan
geris
k,in
tere
stra
teris
k,cr
edit
risk,
the
use
offin
anci
alde
rivat
ives
and
non-
deriv
ativ
efin
anci
alin
stru
men
ts,a
ndth
ein
vest
men
tof
exce
ssliq
uidi
ty.C
ompl
ianc
ew
ithpo
licie
san
dex
posu
relim
itsis
revi
ewed
byth
ein
tern
alau
dito
rson
aco
ntin
uous
basi
s.Th
eG
roup
does
note
nter
into
ortra
defin
anci
alin
stru
men
ts,i
nclu
ding
deriv
ativ
e fin
anci
al in
stru
men
ts, f
or sp
ecul
ativ
e pu
rpos
es.
Der
ivat
ive
cont
ract
s to
hedg
e its
exp
osur
e in
resp
ect o
f Eur
o bo
nd a
nd fo
r JPY
Loa
n.
Annu
al R
epor
t 201
9 - 2
035
5 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
48.5
Fore
ign
curr
ency
ris
k m
anag
emen
t
Part
icul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1,
2019
Bor
row
ings
Uns
ecur
ed 2
.75%
7 y
ear E
UR
Bon
ds -
EUR
525
mill
ion
43,1
56.8
740
,579
.62
Uns
ecur
ed n
on-c
onve
rtibl
e re
deem
able
bon
ds in
the
natu
re o
f D
eben
ture
s- S
erie
s II o
f fac
e va
lue
₹ 1
mill
ion
each
(₹ 3
,700
m
illio
n)
--
JPY
38
Bill
ion
Term
Loa
n26
,348
.16
23,5
16.1
2Le
ase
liabi
litie
s5,
963.
066,
282.
67
48.5
.1Fo
reig
n cu
rren
cy se
nsiti
vity
ana
lysi
s
USD
sens
itivi
ty a
t yea
r en
dFo
r th
e ye
ar
ende
d M
arch
31,
20
20
For
the
year
end
ed
Mar
ch 3
1, 2
019
Bor
row
ing
Euro
-USD
app
reci
atio
n by
5%
2,24
0.90
2,09
7.83
Euro
-USD
dep
reci
atio
n by
5%
(2,2
40.9
0)(2
,097
.83)
JPY
-USD
app
reci
atio
n by
5%
1,32
9.37
1,19
3.11
JPY
-USD
dep
reci
atio
n by
5%
(1,3
29.3
7)(1
,193
.11)
USD
-INR
app
reci
atio
n by
5%
-20
0.80
USD
-INR
dep
reci
atio
n by
5%
-(2
00.8
0)
48.5
.2Fo
rwar
d fo
reig
n ex
chan
ge c
ontr
acts
The
belo
w ta
ble
sum
mar
ises
sign
ifica
nt fo
reig
n cu
rren
cy d
enom
inat
ed m
onet
ary
liabi
litie
s at e
ach
repo
rting
dat
e:
The
Com
pany
is e
xpos
ed to
fore
ign
curr
ency
risk
aga
inst
cur
renc
y ot
her t
han
func
tiona
l cur
renc
y. S
ensi
tivity
of p
rofit
or l
oss a
rises
mai
nly
agai
nst E
UR
O, J
PY a
nd IN
R b
orro
win
g.
As
per
man
agem
ent's
asse
ssm
ento
fre
ason
able
poss
ible
chan
ges
inth
eex
chan
gera
teof
+/-
5%be
twee
nEU
RO
-USD
,JPY
-USD
and
USD
-INR
curr
ency
pair,
sens
itivi
tyof
prof
itor
loss
only
onou
tsta
ndin
gfo
reig
n cu
rren
cy d
enom
inat
ed m
onet
ary
item
s at t
he y
ear e
nd is
pre
sent
ed b
elow
:Lia
bilit
ies
Func
tiona
lcu
rren
cyof
the
Com
pany
isU
SD.
The
Com
pany
unde
rtake
stra
nsac
tions
deno
min
ated
indi
ffere
ntfo
reig
ncu
rren
cies
and
isco
nseq
uent
lyex
pose
dto
exch
ange
rate
fluct
uatio
nsdu
eto
over
seas
oper
atio
ns.
In m
anag
emen
t's o
pini
on, t
he se
nsiti
vity
ana
lysi
s is u
nrep
rese
ntat
ive
of th
e in
here
nt fo
reig
n ex
chan
ge ri
sk b
ecau
se th
e ex
posu
re a
t the
end
of t
he re
porti
ng p
erio
d do
es n
ot re
flect
the
expo
sure
dur
ing
the
perio
d.
The
Com
pany
gene
rally
ente
rsin
tofo
rwar
dex
chan
geco
ntra
cts
toco
ver
spec
ific
fore
ign
curr
ency
paym
ents
and
rece
ipts
tore
duce
fore
ign
exch
ange
fluct
uatio
nris
k.In
curr
enty
ear,
the
Com
pany
has
ente
red
certa
in fo
rwar
d co
ntra
cts t
o co
ver e
xpos
ure
tow
ards
EU
RO
bon
d.
Annu
al R
epor
t 201
9 - 2
035
6 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
48.6
Inte
rest
rat
e ri
sk m
anag
emen
t
48.6
.1In
tere
st r
ate
sens
itivi
ty a
naly
sis
Part
icul
ars
For
the
year
en
ded
Mar
ch 3
1,
2020
For
the
year
end
ed
Mar
ch 3
1, 2
019
For
the
year
en
ded
Mar
ch
31, 2
020
For
the
year
en
ded
Mar
ch
31, 2
019
For
the
year
en
ded
Mar
ch
31, 2
020
For
the
year
en
ded
Mar
ch
31, 2
019
For
the
year
en
ded
Mar
ch
31, 2
020
For
the
year
en
ded
Mar
ch
31, 2
019
For
the
year
en
ded
Mar
ch
31, 2
020
For
the
year
en
ded
Mar
ch
31, 2
019
i. Im
pact
on
prof
it or
loss
for t
he y
ear f
or in
crea
se in
inte
rest
ra
te
274.
8062
0.77
69.7
510
3.19
123.
9911
9.85
177
.29
-
35
4.58
-
ii. Im
pact
on
prof
it or
loss
for t
he y
ear f
or d
ecre
ase
in in
tere
st
rate
(274
.80)
(620
.77)
(69.
75)
(103
.19)
(123
.99)
(119
.85)
(177
.29)
-
(3
54.5
8)
-
48.6
.2In
tere
st r
ate
swap
con
trac
ts
48.7
Pric
e ri
sks
Pric
e se
nsiti
vity
ana
lysi
s
48.8
Cre
dit r
isk
man
agem
ent
USD
100
0 m
illio
n T
erm
loan
USD
775
mill
ion
(pre
viou
s yea
r U
SD
1,77
5 m
illio
n) T
erm
loan
U
SD 5
00 m
illio
n T
erm
loan
The
sens
itivi
ty o
f pro
fit o
r los
s in
resp
ect o
f inv
estm
ents
in m
utua
l fun
ds a
t the
end
of t
he re
porti
ng y
ear f
or +
/-5%
cha
nge
in p
rice
and
net a
sset
val
ue is
pre
sent
ed b
elow
:
Ban
k ba
lanc
es a
re h
eld
with
a re
pute
d an
d cr
editw
orth
y ba
nkin
g in
stitu
tion.
The
Com
pany
isen
gage
din
E&P
busi
ness
outs
ide
Indi
a.Its
reve
nues
ofcr
ude
oila
ndna
tura
lgas
are
prin
cipa
llyde
nom
inat
edin
USD
.Fur
ther
,pric
ebe
nchm
arks
whe
reve
rapp
licab
lear
eal
sopr
inci
pally
inU
SD.
The
Com
pany
has
ther
efor
esw
appe
dth
eco
upon
and
the
prin
cipa
lam
ount
of8.
54%
Uns
ecur
edR
edee
mab
leD
eben
ture
(fac
eva
lue
of₹
3,70
0.00
Mill
ion)
into
USD
.The
seco
ntra
ctsm
atur
eddu
ring
the
year
2019
-20
.
The
Com
pany
isex
pose
dto
inte
rest
rate
risk
beca
use
the
Com
pany
borr
ows
fund
sat
both
fixed
and
float
ing
inte
rest
rate
s.Th
eC
ompa
ny's
expo
sure
sto
inte
rest
rate
son
finan
cial
asse
tsan
dfin
anci
allia
bilit
ies
are
deta
iled
in th
e liq
uidi
ty ri
sk m
anag
emen
t sec
tion
of th
is n
ote.
The
sens
itivi
tyan
alys
esbe
low
have
been
dete
rmin
edba
sed
onth
eex
posu
reto
inte
rest
rate
sfo
rbo
thde
rivat
ives
and
non-
deriv
ativ
ein
stru
men
tsat
the
end
ofth
ere
porti
ngye
ar.F
orflo
atin
gra
telia
bilit
ies,
the
anal
ysis
ispr
epar
edas
sum
ing
the
amou
ntof
the
liabi
lity
outs
tand
ing
atth
een
dof
the
repo
rting
year
was
outs
tand
ing
fort
hew
hole
year
.A50
basi
spo
inti
ncre
ase
orde
crea
seis
used
whe
nre
porti
ngin
tere
stra
teris
k in
tern
ally
to k
ey m
anag
emen
t per
sonn
el a
nd re
pres
ents
man
agem
ent's
ass
essm
ent o
f the
reas
onab
ly p
ossi
ble
chan
ge in
inte
rest
rate
s.
If in
tere
st ra
tes h
ad b
een
50 b
asis
poi
nts h
ighe
r/low
er a
nd a
ll ot
her v
aria
bles
wer
e he
ld c
onst
ant,
the
anal
ysis
is a
s und
er:
JPY
38
billi
on T
erm
loan
USD
500
mill
ion
Ter
m lo
an
(New
)
Prof
itbe
fore
tax
fort
heye
aren
ded
Mar
ch31
,202
0w
ould
incr
ease
/dec
reas
eby
₹1,
511.
44m
illio
n(F
orth
eye
aren
ded
Mar
ch31
,201
9w
ould
incr
ease
/dec
reas
eby
₹1,
254.
14m
illio
n)as
are
sult
ofth
ech
ange
sin
net a
sset
val
ue o
f inv
estm
ent i
n m
utua
l fun
ds.
Cre
ditr
isk
aris
esfr
omca
shan
dca
sheq
uiva
lent
s,in
vest
men
tsan
dde
posi
tsw
ithba
nks
asw
ella
scu
stom
ers
incl
udin
gre
ceiv
able
s.C
redi
tris
km
anag
emen
tcon
side
rsav
aila
ble
reas
onab
lean
dsu
ppor
tive
forw
ard-
look
ing
info
rmat
ion
incl
udin
g in
dica
tors
like
ext
erna
l cre
dit r
atin
g (a
s far
as a
vaila
ble)
, mac
ro-e
cono
mic
info
rmat
ion
(suc
h as
regu
lato
ry c
hang
es, g
over
nmen
t dire
ctiv
es, m
arke
t int
eres
t rat
e).
Maj
orcu
stom
ers,
ofth
eC
ompa
nyar
ere
pute
dO
ilM
arke
ting
Com
pani
es(O
MCs
)/I
nter
natio
nalO
ilC
ompa
nies
(IO
Cs)
/Nat
iona
lOil
Com
pani
es(N
OC
s)w
hich
have
high
estc
redi
trat
ings
,car
ryin
gne
glig
ible
cred
it ris
k.
Cre
dit e
xpos
ure
is m
anag
ed b
y co
unte
rpar
ty li
mits
for i
nves
tmen
t of s
urpl
us fu
nds w
hich
is re
view
ed b
y th
e M
anag
emen
t. In
vest
men
ts in
shor
t ter
m d
epos
its a
re w
ith h
igh
rate
d pu
blic
sect
or b
anks
.
Annu
al R
epor
t 201
9 - 2
035
7 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
48.9
Liq
uidi
ty r
isk
man
agem
ent
Part
icul
ars
Wei
ghte
d av
erag
e ef
fect
ive
inte
rest
rat
e
Les
s tha
n 1
mon
th1
mon
th -1
yea
r1
year
– 3
ye
ars
Mor
e th
an 3
ye
ars
Tot
alC
arry
ing
amou
nt
As a
t Mar
ch 3
1, 2
020
Mea
sure
d at
am
ortis
ed c
ost
Fixe
d R
ate
Bor
row
ing
USD
750
mill
ions
uns
ecur
ed n
on-c
onve
rtibl
e R
eg S
Bon
ds4.
72%
--
-56
,165
.20
56,1
65.2
056
,165
.20
USD
500
mill
ions
uns
ecur
ed n
on-c
onve
rtibl
e R
eg S
Bon
ds3.
76%
--
-37
,701
.10
37,7
01.1
037
,701
.10
EUR
525
mill
ions
uns
ecur
ed E
uro
Bon
ds2.
84%
--
43,1
56.8
7-
43,1
56.8
743
,156
.87
USD
600
Mill
ion
Fore
ign
Cur
renc
y B
onds
3.80
2%-
--
45,1
59.1
145
,159
.11
45,1
59.1
1U
SD 4
00 M
illio
n Fo
reig
n C
urre
ncy
Bon
ds2.
923%
--
30,1
67.3
7-
30,1
67.3
730
,167
.37
Var
iabl
e R
ate
Bor
row
ing
Term
loan
from
ban
k (U
SD 1
000
mill
ion
Faci
lity)
3M$L
ibor
+ 9
5 bp
s-
--
74,6
49.7
274
,649
.72
74,6
49.7
2
Term
Loa
n fr
om B
ank
(USD
500
Mill
ion
Faci
lity)
3M$L
ibor
+ 1
00
bps
--
-37
,475
.82
37,4
75.8
237
,475
.82
Term
Loa
n fr
om B
ank
(USD
177
5 M
illio
n Fa
cilit
y)*
3M$L
ibor
+ 9
5 bp
s-
57,7
57.7
1-
-57
,757
.71
57,7
57.7
1
Term
Loa
n fr
om B
ank
(USD
500
Mill
ion
Faci
lity)
3M$L
ibor
+ 7
6 bp
s-
-14
,755
.24
14,7
55.2
414
,755
.24
Term
Loa
n fr
om B
ank
(JPY
38
Bill
ion
Faci
lity)
3MJP
YLi
bor +
47
bps
--
8,82
3.60
17,5
24.5
626
,348
.16
26,3
48.1
6
Leas
e Li
abili
ty (s
tand
alon
e)-
--
-36
9.78
369.
7836
9.78
Leas
e Li
abili
ty (O
CL)
-18
3.56
819.
711,
636.
293,
323.
505,
963.
065,
963.
06Lo
an fr
om re
late
d pa
rty-
--
297.
92-
297.
9229
7.92
Trad
e Pa
yabl
e-
24,8
50.2
9-
--
24,8
50.2
924
,850
.29
Paya
ble
to o
pera
tors
-6,
380.
64-
--
6,38
0.64
6,38
0.64
Bon
us p
ayab
le fo
r ext
ensi
on o
f Pro
duct
ion
shar
ing
agre
emen
t-
-1,
031.
56-
3,89
8.30
4,92
9.86
4,92
9.86
Paya
ble
to H
oldi
ng c
ompa
ny-
-29
4.16
--
294.
1629
4.16
Dep
osit
from
supp
liers
/ven
dors
-3.
48-
--
3.48
3.48
Inte
rest
acc
rued
--
3,59
8.45
499.
65-
4,09
8.10
4,09
8.10
Oth
ers (
Oth
ers f
inan
cial
s lia
bilit
ies)
-5,
369.
45-
--
5,36
9.45
5,36
9.45
Tota
l-
36,7
87.4
263
,501
.59
99,3
36.9
427
6,26
7.09
475,
893.
0447
5,89
3.04
* ou
tsta
ndin
g am
ount
as o
n M
arch
31,
202
0 : U
SD 7
75 m
illio
n.
The
Com
pany
man
ages
liqui
dity
risk
bym
aint
aini
ngsu
ffici
entc
ash
and
cash
equi
vale
nts
incl
udin
gba
nkde
posi
tsan
dav
aila
bilit
yof
fund
ing
thro
ugh
anad
equa
team
ount
ofco
mm
itted
cred
itfa
cilit
ies
from
bank
and
borr
owin
gsfr
ompa
rent
com
pany
tom
eeto
blig
atio
nsw
hen
due.
Man
agem
entm
onito
rsro
lling
fore
cast
sof
liqui
dity
posi
tion
and
cash
and
cash
equi
vale
nts
onth
eba
sis
ofex
pect
edca
shflo
ws.
Inad
ditio
n,liq
uidi
tym
anag
emen
tals
oin
volv
espr
ojec
ting
cash
flow
sco
nsid
erin
gle
velo
fliq
uid
asse
tsne
cess
ary
tom
eeto
blig
atio
nsby
mat
chin
gth
em
atur
itypr
ofile
sof
finan
cial
asse
tsan
dlia
bilit
ies
and
mon
itorin
gth
eco
nsol
idat
ed b
alan
ce sh
eet l
iqui
dity
ratio
s.
The
follo
win
gta
bles
deta
ilth
eC
ompa
ny’s
rem
aini
ngco
ntra
ctua
lmat
urity
fori
tsno
n-de
rivat
ive
finan
cial
liabi
litie
swith
agre
edre
paym
entp
erio
ds.T
hein
form
atio
nin
clud
edin
the
tabl
esha
vebe
endr
awn
upba
sed
onth
eun
disc
ount
edca
shflo
ws
offin
anci
allia
bilit
ies
base
don
the
earli
estd
ate
onw
hich
the
Com
pany
can
bere
quire
dto
pay.
The
tabl
esin
clud
ebo
thin
tere
stan
dpr
inci
palc
ash
flow
s.Th
eco
ntra
ctua
lmat
urity
isba
sed
on th
e ea
rlies
t dat
e on
whi
ch th
e C
ompa
ny m
ay b
e re
quire
d to
pay
.
Annu
al R
epor
t 201
9 - 2
035
8 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
Part
icul
ars
Wei
ghte
d av
erag
e ef
fect
ive
inte
rest
rat
e
Les
s tha
n 1
mon
th1
mon
th -1
yea
r1
year
– 3
ye
ars
Mor
e th
an 3
ye
ars
Tot
alC
arry
ing
amou
nt
As a
t Mar
ch 3
1, 2
020
Trad
e re
ceiv
able
s-
7,57
7.22
-32
,458
.65
-
4
0,03
5.87
3
1,80
9.60
Se
curit
y de
posi
ts-
-21
.72
30.8
3
-
5
2.55
52.5
5 Lo
ans t
o em
ploy
ees
-3.
3033
.32
166.
0853
.73
256
.43
199
.42
Loan
s to
rela
ted
parti
es-
-2,
389.
344,
892.
65
-
7
,281
.99
7
,281
.99
Dep
osit
for s
ite re
stor
atio
n fu
nd-
--
-
1,
314.
44
1
,314
.44
1
,314
.44
Fina
nce
leas
e re
ceiv
able
s-
--
-
5,
641.
71
5
,641
.71
-
A
dvan
ces r
ecov
erab
le in
cas
h-
-9,
125.
24-
-
9,1
25.2
4
9,1
25.2
4 R
ecei
vabl
e fr
om Jo
int o
pera
tions
par
tner
s-
3,20
0.63
-
-
-
3
,200
.63
2
,986
.07
Rec
eiva
ble
from
ope
rato
rs-
74
0.13
-
-
-
740
.13
735
.25
Rec
eive
bles
from
Hol
ding
com
pany
-
-
152.
24
-
-
1
52.2
4
1
52.2
4 D
epos
its w
ith b
anks
--
39,3
61.4
2
-
-
3
9,36
1.42
3
9,36
1.42
In
tere
st a
ccru
ed-
-34
2.83
-
-
342
.83
342
.83
Oth
er fi
nanc
ial a
sset
s-
--
31
,488
.82
-
3
1,48
8.82
3
1,48
8.82
T
otal
-11
,521
.28
51,4
26.1
169
,037
.03
7,00
9.88
138,
994.
3012
4,84
9.87
Part
icul
ars
Les
s tha
n 3
mon
ths
3 m
onth
s – 6
m
onth
s6
mon
ths –
1
year
Mor
e T
han
1 ye
arTo
tal
Car
ryin
g am
ount
As a
t Mar
ch 3
1, 2
020
Gro
ss se
ttled
:D
eriv
ativ
e lia
bilit
ies
- for
eign
exc
hang
e fo
rwar
d co
ntra
cts
--
-
1,
932.
44
1,93
2.44
1,9
32.4
4 T
otal
--
-1,
932.
441,
932.
441,
932.
44
Gro
ss se
ttled
:D
eriv
ativ
e as
sets
- for
eign
exc
hang
e op
tions
con
tract
s-
-
137.
34
4
4.44
181.
78
181
.78
Tot
al-
-13
7.34
44.4
418
1.78
181.
78
The
follo
win
gta
ble
deta
ilsth
eC
ompa
ny’s
liqui
dity
anal
ysis
fori
tsde
rivat
ive
finan
cial
inst
rum
ents
.The
tabl
eha
sbe
endr
awn
upba
sed
onth
eun
disc
ount
edco
ntra
ctua
lnet
cash
inflo
ws
and
outfl
ows
onde
rivat
ive
inst
rum
ents
that
settl
e on
a g
ross
bas
is:
The
amou
nts
incl
uded
abov
efo
rvar
iabl
ein
tere
stra
tein
stru
men
tsfo
rbot
hno
n-de
rivat
ive
finan
cial
asse
tsan
dlia
bilit
ies
issu
bjec
tto
chan
geif
chan
ges
inva
riabl
ein
tere
stra
tes
diffe
rto
thos
ees
timat
esof
inte
rest
rate
s det
erm
ined
at t
he e
nd o
f the
repo
rting
per
iod.
The
follo
win
gta
ble
deta
ilsth
eC
ompa
ny's
expe
cted
mat
urity
fori
tsno
n-de
rivat
ive
finan
cial
asse
ts.T
hein
form
atio
nin
clud
edin
the
tabl
eha
sbe
endr
awn
upba
sed
onth
eun
disc
ount
edco
ntra
ctua
lmat
uriti
esof
the
finan
cial
asse
tsin
clud
ing
inte
rest
that
will
beea
rned
onth
ose
asse
ts.T
hein
clus
ion
ofin
form
atio
non
non-
deriv
ativ
efin
anci
alas
sets
isne
cess
ary
inor
dert
oun
ders
tand
the
Com
pany
'sliq
uidi
tyris
km
anag
emen
tas
the
liqui
dity
is m
anag
ed o
n a
net a
sset
and
liab
ility
bas
is.
Annu
al R
epor
t 201
9 - 2
035
9 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
48.1
0Fa
ir v
alue
mea
sure
men
t
48.1
1
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1,
2019
Fina
ncia
l Ass
ets
Inve
stm
ent i
n m
utua
l fun
ds30
,228
.72
25,0
82.7
1Le
vel 1
Der
ivat
ive
asse
ts18
1.78
282.
27Le
vel 1
Empl
oyee
Loa
ns18
8.72
196.
49Le
vel 2
Fina
ncia
l Lia
bilit
ies
Der
ivat
ive
liabi
litie
s 1,
932.
441,
980.
62Le
vel 1
Dee
med
Cap
ital C
ontri
butio
n fr
om H
oldi
ng C
ompa
ny
(Fin
anci
al G
uara
ntee
and
Loa
ns)
5,09
2.99
4,34
5.87
Leve
l 2
Fina
nce
Leas
e O
blig
atio
n36
9.78
369.
78Le
vel 2
Fina
nce
Leas
e O
blig
atio
n5,
963.
066,
282.
67Le
vel 2
48.1
2Fa
ir v
alue
of f
inan
cial
ass
ets a
nd fi
nanc
ial l
iabi
litie
s tha
t are
not
mea
sure
d at
fair
val
ue (b
ut fa
ir v
alue
dis
clos
ures
are
req
uire
d)
49C
omm
on c
ontr
ol B
usin
ess C
ombi
natio
n tr
ansa
ctio
n:
Mar
k to
Mar
ket v
alua
tion
repo
rt pr
ovid
ed b
y ba
nks.
Mar
k to
Mar
ket v
alua
tion
repo
rt pr
ovid
ed b
y ba
nks.
NA
V d
ecla
red
by re
spec
tive
Ass
et M
anag
emen
t Com
pani
es
Dis
coun
ted
Cas
hFl
ows
i.e.
pres
ent
valu
eof
expe
cted
rece
ipt/p
aym
ent
disc
ount
edus
ing
appr
opria
te d
isco
untin
g ra
te.
Inte
rest
Rat
e D
iffer
entia
l Mod
el.
Val
uatio
nba
sed
upon
risk
adju
sted
disc
ount
rate
appl
ied
toge
tpre
sent
valu
eof
annu
itytil
l per
petu
ity (A
nnui
ty c
apita
lisat
ion
mod
el).
Dis
coun
ted
Cas
hFl
ows
i.e.
pres
ent
valu
eof
expe
cted
rece
ipt/p
aym
ent
disc
ount
edus
ing
appr
opria
te d
isco
untin
g ra
te.
Part
icul
ars
Fair
val
ueFa
ir v
alue
hi
erar
chy
Val
uatio
n te
chni
que
and
key
inpu
t(s)
ON
GC
Vid
esh
Lim
ited
has
trans
afer
red
the
Moz
ambi
que
busi
ness
toa
new
lyin
corp
orat
edsu
bsid
iary
ofth
eco
mpa
nyw
.e.f.
Janu
ary
1,20
20.A
sth
isis
aco
mm
onco
ntro
lbus
ines
sco
mbi
natio
ntra
nsac
tion,
ther
eis
no im
pact
on
the
cons
olid
ated
fina
ncia
l sta
tem
ents
of t
he c
ompa
ny. F
or d
etai
ls of
the
trans
actio
n re
fer n
ote
52 o
f the
stan
dalo
ne fi
nanc
ial s
tate
men
ts
This
not
e pr
ovid
es in
form
atio
n ab
out h
ow th
e C
ompa
ny d
eter
min
es fa
ir va
lues
of v
ario
us fi
nanc
ial a
sset
s.
Fair
val
ue o
f the
Com
pany
’s fi
nanc
ial a
sset
s and
fina
ncia
l lia
bilit
ies t
hat a
re m
easu
red
at fa
ir v
alue
on
a re
curr
ing
basi
s
Som
eof
the
Com
pany
’sfin
anci
alas
sets
and
finan
cial
liabi
litie
sar
em
easu
red
atfa
irva
lue
atth
een
dof
each
repo
rting
perio
d.Th
efo
llow
ing
tabl
egi
ves
info
rmat
ion
abou
thow
the
fair
valu
esof
thes
efin
anci
alas
sets
are
det
erm
ined
.
Man
agem
ent c
onsi
ders
that
the
carr
ying
am
ount
s of f
inan
cial
ass
ets a
nd fi
nanc
ial l
iabi
litie
s rec
ogni
zed
in th
e fin
anci
al st
atem
ents
exc
ept a
s per
not
e 48
.11
appr
oxim
ate
thei
r fai
r val
ues.
Annu
al R
epor
t 201
9 - 2
036
0 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
50C
ontin
gent
liab
ilitie
s
50.1
50.2
50.3
50.4
50.5
Con
tinge
nt A
sset
s
Par
ticul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1,
2019
Con
tinge
nt A
sset
s92
7.93
619.
82
Cla
ims o
f con
tract
ors i
n ar
bitra
tion/
cour
t/oth
ers ₹
1,1
05.0
2 m
illio
n (p
revi
ous y
ear :
₹ 9
62.1
6 m
illio
n). T
he c
laim
s are
at v
ario
us st
ages
of l
itiga
tion
and,
in th
e op
inio
n of
the
Com
pany
, th
e sa
me
are
not t
enab
le.
Oth
er C
ontin
gent
liab
ilitie
s in
resp
ect o
f sub
sidi
arie
s am
ount
ing
are
₹ 6,
023.
47 m
illio
n (p
revi
ous y
ear :
₹ 6
,684
.41
mill
ion)
The
Serv
ice
Tax
Dep
artm
enth
adis
sued
ade
man
dcu
msh
ow-c
ause
notic
eda
ted
Oct
ober
11,2
011
requ
iring
the
Com
pany
tosh
owca
use
why
serv
ice
tax
amou
ntin
gto
₹28
,163
.14
mill
ion
(incl
udin
gEd
ucat
ion
Ces
san
dSH
Ece
ss),
the
inte
rest
onsu
cham
ount
and
pena
ltysh
ould
notb
ede
man
ded
and
reco
vere
dfr
omth
eC
ompa
ny.S
ervi
ceTa
xD
epar
tmen
thas
calc
ulat
edth
ese
tax
amou
nts
base
don
fore
ign
curr
ency
expe
nditu
rere
porte
din
the
Com
pany
’sfin
anci
alst
atem
ents
cove
ring
the
repo
rting
perio
dsfr
omA
pril
1,20
06to
Dec
embe
r31
,201
0an
dco
nten
ding
that
thes
eex
pens
esre
pres
entb
usin
ess
auxi
liary
serv
ices
rend
ered
byth
eC
ompa
nyfo
reig
nbr
anch
esan
dop
erat
orof
the
Join
tVen
ture
/Con
sorti
umto
the
Com
pany
.Sub
sequ
ently
,fiv
em
ore
dem
and-
cum
-sho
wca
use
notic
esha
vebe
enis
sued
base
don
sim
ilarc
onte
ntio
nsco
verin
gth
epe
riod
upto
Mar
ch31
,201
5to
show
caus
ew
hyse
rvic
eta
xam
ount
ing
to₹
32,8
63.6
1m
illio
n(in
clud
ing
Educ
atio
nce
ssan
dSH
Ece
ss),
the
inte
rest
onsu
cham
ount
and
pena
ltysh
ould
notb
ede
man
ded
and
reco
vere
dfr
omth
eC
ompa
ny.A
dem
and-
cum
-sho
wca
use
notic
eha
sbe
enis
sued
base
don
sim
ilarc
onte
ntio
nsco
verin
gth
epe
riod
Apr
il1,
2015
toM
arch
31,2
017
tosh
owca
use
why
serv
ice
tax
amou
ntin
gto
₹15
,633
.22
mill
ion
(incl
udin
gEd
ucat
ion
cess
and
SHE
cess
),th
ein
tere
ston
such
amou
ntan
dpe
nalty
shou
ldno
tbe
dem
ande
dan
dre
cove
red
from
the
Com
pany
.Fu
rther
,ade
man
d-cu
m-s
how
caus
eno
tice
dt.1
0.02
.202
0ha
sbe
enis
sued
base
don
sim
ilarc
onte
ntio
nsco
verin
gth
epe
riod
Apr
il1,
2017
toJu
ne30
,201
7to
show
caus
ew
hyse
rvic
eta
xam
ount
ing
to₹
2119
.93
mill
ion
(incl
udin
gEd
ucat
ion
cess
and
SHE
cess
),th
ein
tere
ston
such
amou
ntan
dpe
nalty
shou
ldno
tbe
dem
ande
dan
dre
cove
red
from
the
Com
pany
.The
Com
pany
isof
the
view
that
the
said
serv
ice
tax
isno
tpay
able
and
cont
estin
gth
esa
me.
No
prov
isio
nis
requ
ired
tobe
mad
ein
the
finan
cial
stat
emen
tsat
this
stag
e.In
the
asse
ssm
ento
fth
em
anag
emen
tbas
edon
inde
pend
enta
ndco
mpe
tent
lega
lopi
nion
obta
ined
durin
gth
epr
evio
usye
aran
dot
her
atte
ndan
tfac
tors
incl
udin
gci
rcul
arno
.35/
9/20
18-G
STda
ted
Mar
ch05
,201
8is
sued
byC
entra
lBoa
rdof
Exci
sean
dC
usto
ms,
the
poss
ibili
tyof
the
succ
ess
ofth
eC
ompa
ny’s
posi
tion
isex
trem
ely
high
and
the
poss
ibili
tyof
the
succ
ess
ofco
nten
tions
ofth
eD
epar
tmen
tis
very
low
.Sin
ceth
ech
ance
sof
paya
bilit
yof
the
serv
ice
tax
itsel
fhav
ebe
enev
alua
ted
byth
em
anag
emen
tas
bein
gre
mot
e/ve
rylo
w,t
hech
ance
sof
asse
ssm
ento
fint
eres
tand
pena
ltyar
eev
alua
ted
tobe
muc
hlo
wer
.Acc
ordi
ngly
,the
amou
nts
cove
red
byth
eab
ovem
entio
ned
show
-cau
seno
tices
(i.e.
tax
amou
ntas
wel
las
pote
ntia
lint
eres
tand
pena
ltyth
ereo
n)ar
eno
tcon
side
red
asco
ntin
gent
liabi
lity
inac
cord
ance
with
the
appl
icab
leac
coun
ting
stan
dard
s.Fu
rther
,acc
ordi
ngto
the
lega
lopi
nion
obta
ined
byth
eC
ompa
ny,a
show
-cau
seno
tice
inits
elfd
oes
notq
ualif
yas
ade
man
d an
d th
e ch
ance
of t
he c
laim
bei
ng p
ayab
le b
y th
e C
ompa
ny is
rem
ote
as th
e C
ompa
ny h
as a
ver
y go
od c
ase
to a
rgue
and
succ
eed
befo
re th
e co
ncer
ned
auth
oriti
es b
ased
on
the
lega
l pos
ition
as o
n da
te.
Dis
pute
din
com
e-ta
xde
man
ds:₹
25,6
82.4
6m
illio
n(p
revi
ous
year
:₹23
,835
.95
mill
ion)
(incl
udin
gin
tere
stbu
texc
ludi
ngad
ditio
nm
ade
byth
eA
sses
sing
Offi
cer(
AO
)on
prot
ectiv
eba
sis)
.Aga
inst
disp
uted
tax
dem
ands
,₹76
6.82
mill
ion
asat
Mar
ch31
,202
0(a
sat
Mar
ch31
,201
9₹
5,97
0.24
mill
ion)
has
been
paid
byth
eC
ompa
nyor
adju
sted
byth
eau
thor
ities
agai
nstr
efun
dsdu
eto
the
Com
pany
from
time-
to-ti
me.
The
dem
ands
are
at v
ario
us st
ages
of l
itiga
tion
and,
in th
e op
inio
n of
the
Com
pany
, th
e sa
me
are
not t
enab
le. A
s per
the
asse
ssm
ent o
f the
com
pany
, it h
as b
een
conc
lude
d th
at th
ere
is n
o ad
ditio
nal c
urre
nt ta
x ex
pens
es
on a
ccou
nt o
f unc
erta
in ta
x po
sitio
ns.
Con
tinge
ntas
sets
repr
esen
tsin
tere
stin
resp
ecto
fcar
ried
finan
ce(E
NH
)upt
oth
eB
alan
ceSh
eetd
ate
that
wou
ldbe
reco
gnis
edon
reas
onab
lece
rtain
tyof
utlim
ate
colle
ctio
nin
line
with
the
acco
untin
gpo
licy
atN
ote
3.31
(vii)
.
Annu
al R
epor
t 201
9 - 2
036
1 of
373
ON
GC
VID
ESH
LIM
ITE
D C
ON
SOL
IDA
TE
D(A
ll am
ount
s are
`̀ in
mill
ion
unle
ss o
ther
wis
e st
ated
)
50.6
Cor
pora
te G
uara
ntee
s
50.6
.1Pe
rfor
man
ce g
uara
ntee
(i) (ii)
Par
ticul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1,
2019
Perf
orm
ance
gua
rant
ee in
resp
ect o
f Car
abob
o 1
Proj
ect o
n be
half
of P
etro
Car
abob
o G
anga
B.V
.87
,160
.53
79,9
20.2
5
Tot
al
87,1
60.5
379
,920
.25
50.6
.2C
omm
itmen
ts
Par
ticul
ars
As a
t Mar
ch 3
1,
2020
As a
t Mar
ch 3
1,
2019
(a)
Es
timat
ed a
mou
nt o
f con
tract
s rem
aini
ng to
be
exec
uted
on
capi
tal a
ccou
nt a
nd n
ot p
rovi
ded
for
11,3
23.5
111
,743
.37
(b)
Min
imum
wor
k pr
ogra
m c
omm
itmen
t9,
824.
859,
770.
02(c
) Cap
ital c
omm
itmen
t in
resp
ect o
f sub
sidi
arie
s8,
324.
295,
476.
01T
otal
29
,472
.65
26,9
89.4
0
Cap
ital C
omm
itmen
ts b
ased
upo
n th
e de
tails
pro
vide
d by
the
oper
ator
s: ₹
29,
472.
65 m
illio
n (a
s at M
arch
31,
201
9 ₹
26,9
89.4
0 m
illio
n).
The
com
pany
has
give
nPe
rfor
man
ceG
uara
ntee
tom
eett
hepe
rfor
man
ceob
ligat
ion
inre
spec
tofC
arab
obo
1pr
ojec
tin
Ven
ezue
laon
beha
lfof
subs
idia
ryPe
troC
arab
obo
Gan
gaB
.V.T
hede
tails
ofou
tstn
adin
gam
ount
is g
iven
bel
ow. T
he C
ompa
ny is
con
fiden
t tha
t Pet
ro C
arab
obo
Gan
ga B
.V. w
ill b
e ab
le to
hon
or it
s obl
igat
ions
.
The
Com
pany
has
issu
edPe
rfor
man
ceG
uara
ntee
tom
eett
hepe
rfor
man
ceob
ligat
ion
inre
spec
tofc
once
ssio
nary
cont
ract
forB
lock
BC
-10,
Bra
zilo
nbe
half
ofits
who
llyow
ned
subs
idia
ryO
NG
CC
ampo
sLt
da(O
CL)
whi
ch is
hol
ding
27%
PI i
n th
e bl
ock.
The
Com
pany
is c
onfid
ent t
hat O
CL
will
be
able
to h
onor
its o
blig
atio
ns.
Annu
al R
epor
t 201
9 - 2
036
2 of
373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
51 Disclosure under the Guidance Note on Accounting for Oil and Gas Producing Activities (Ind AS)
51.1
Opening 6.669 6.925 - - 6.669 6.925Addition - - - - - -Deduction/ Adjustment 6.572 (0.001) - - 6.572 (0.001)Production 0.097 0.257 - - 0.097 0.257Closing - 6.669 - - - 6.669Opening 6.843 6.377 - - 6.843 6.377Addition - 0.597 - - - 0.597Deduction/ Adjustment 0.085 - - 0.085 -Production 0.564 0.131 - - 0.564 0.131Closing 6.194 6.843 - - 6.194 6.843Opening 5.886 5.886 - - 5.886 5.886Addition - - - - - -Deduction/ Adjustment - - - - - -Production - - - - - -Closing 5.886 5.886 - - 5.886 5.886Opening 31.082 34.139 52.457 71.353 83.539 105.492Addition 3.595 (0.570) 2.532 (18.274) 6.127 (18.844)Deduction/ Adjustment 0.002 (0.002) - 0.002 (0.002)Production 2.555 2.489 0.617 0.622 3.172 3.111Closing 32.120 31.082 54.372 52.457 86.492 83.539Opening 0.630 0.627 5.942 6.987 6.572 7.614Addition - 0.019 - 0.505 - 0.524Deduction/ Adjustment - - - - - -Production 0.011 0.016 1.848 1.550 1.859 1.566Closing 0.619 0.630 4.094 5.942 4.713 6.572Opening 2.581 2.581 - - 2.581 2.581Addition - - - - - -Deduction/ Adjustment - - - - - -Production - - - - - -Closing 2.581 2.581 - - 2.581 2.581Opening 1.257 1.572 0.166 0.192 1.423 1.764Addition 0.516 0.199 0.001 0.007 0.517 0.206Deduction/ Adjustment 0.001 (0.001) 0.001 - 0.002 (0.001)Production 0.542 0.515 0.035 0.033 0.577 0.548Closing 1.230 1.257 0.131 0.166 1.361 1.423Opening 1.604 2.021 - - 1.604 2.021Addition - 0.014 - - - 0.014Deduction/ Adjustment 0.001 (0.001) - - 0.001 (0.001)Production 0.406 0.432 - - 0.406 0.432Closing 1.197 1.604 - - 1.197 1.604Opening 14.225 14.431 3.853 3.889 18.078 18.320Addition 5.896 - - - 5.896 -Deduction/ Adjustment 0.001 (0.001) 1.410 0.001 1.4110 -Production 0.196 0.207 0.045 0.035 0.241 0.242Closing 19.924 14.225 2.398 3.853 22.322 18.078
GPOC, South Sudan
BC-10, Brazil
MECL, Colombia
AFPC, Syria
As at March 31, 2020
As at March 31, 2019
As at March 31, 2019
Block 06.1, Vietnam
IEC, Russia
Group's share of Proved Reserves on the geographical basis (including joint operations, joint ventures and associates), is as under:
Project Details
As at March 31, 2020
Block 5A, South Sudan
Sakhalin-1, Russia
GNPOC, Sudan
Gas(Billion Cubic Meter)
Total oil equivalent (MMTOE)**
As at March 31, 2020
As at March 31, 2019
Crude oil*(MMT)
Annual Report 2019 - 20 363 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Opening 7.937 8.194 - - 7.937 8.194Addition (0.002) - - - (0.002)Deduction/ Adjustment 6.663 (0.002) - - 6.663 (0.002)Production 0.147 0.257 - - 0.147 0.257Closing 1.127 7.937 - - 1.127 7.937Opening 4.088 4.202 - - 4.088 4.202Addition - - - -Deduction/ Adjustment 3.263 - - 3.263 -Production 0.084 0.114 - - 0.084 0.114Closing 0.741 4.088 - - 0.741 4.088Opening 1.803 1.803 - - 1.803 1.803Addition - - - - - -Deduction/ Adjustment - - - - - -Production - - - - - -Closing 1.803 1.803 - - 1.803 1.803Opening - - 9.647 8.467 9.647 8.467Addition - - - 1.877 - 1.877Deduction/ Adjustment - - - - - -Production - - 1.056 0.697 1.056 0.697Closing - - 8.591 9.647 8.591 9.647Opening 9.428 3.780 - - 9.428 3.780Addition 1.125 6.304 - - 1.125 6.304Deduction/ Adjustment - - - -Production 0.595 0.656 - - 0.595 0.656Closing 9.958 9.428 - - 9.958 9.428Opening 78.017 74.612 16.288 15.860 94.305 90.472Addition 0.031 7.546 11.832 2.088 11.863 9.634Deduction/ Adjustment 0.001 0.001 0.001 (0.001) 0.002 0.001Production 3.492 4.140 1.489 1.660 4.981 5.800Closing 74.555 78.017 26.630 16.288 101.185 94.305Opening 14.905 13.233 - - 14.905 13.233Addition 2.429 - - - 2.429Deduction/ Adjustment - - - -Production 0.800 0.757 - - 0.800 0.757Closing 14.105 14.905 - - 14.105 14.905Opening 186.955 180.383 88.353 106.747 275.308 287.130Addition 11.163 16.536 14.365 (13.798) 25.528 2.739Deduction/ Adjustment 16.589 (0.007) 1.412 (0.001) 18.001 (0.008)Production 9.489 9.971 5.090 4.597 14.579 14.568Closing 172.040 186.955 96.216 88.353 268.256 275.308
Block XXIV, Syria
Total Reserves
Lower Zakum, Abu Dhabi
Block-A1 & A3, Myanmar
ACG, Azerbaijan
PIVSA, Venezuela
Carabobo - 1, Venezuela
Vankor, Russia
Annual Report 2019 - 20 364 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
51.2
Opening 1.341 1.597 - - 1.341 1.597Addition - - - - - -Deduction/ Adjustment 1.244 (0.001) - - 1.244 (0.001)Production 0.097 0.257 - - 0.097 0.257Closing - 1.341 - - - 1.341Opening 3.884 4.312 - - 3.884 4.312Addition 0.003 (0.297) - - 0.003 (0.297)Deduction/ Adjustment - - - -Production 0.564 0.131 - - 0.564 0.131Closing 3.323 3.884 - - 3.323 3.884Opening 2.565 2.565 - - 2.565 2.565Addition - - - - - -Deduction/ Adjustment - - - - - -Production - - - - - -Closing 2.565 2.565 - - 2.565 2.565Opening 15.192 16.737 28.479 9.506 43.670 26.242Addition 5.830 0.943 1.293 19.594 7.123 20.537Deduction/ Adjustment 0.001 (0.001) 0.001 (0.001) 0.002 (0.002)Production 2.555 2.489 0.617 0.622 3.172 3.111Closing 18.466 15.192 29.154 28.479 47.619 43.670Opening 0.630 0.611 5.942 3.500 6.572 4.111Addition - 0.035 - 3.993 - 4.028Deduction/ Adjustment - - - 0.001 - 0.001Production 0.011 0.016 1.848 1.550 1.859 1.566Closing 0.619 0.630 4.094 5.942 4.713 6.572Opening 2.206 2.206 - - 2.206 2.206Addition - - - - - -Deduction/ Adjustment - - - - - -Production - - - - - -Closing 2.206 2.206 - - 2.206 2.206Opening 1.257 1.456 0.166 0.091 1.423 1.547Addition 0.428 0.315 0.108 0.428 0.423Deduction/ Adjustment 0.001 (0.001) 0.006 0.007 (0.001)Production 0.542 0.515 0.035 0.033 0.577 0.548Closing 1.142 1.257 0.125 0.166 1.267 1.423Opening 1.229 1.568 - - 1.229 1.568Addition - 0.092 - - - 0.092Deduction/ Adjustment 0.001 (0.001) - - 0.001 (0.001)Production 0.406 0.432 - - 0.406 0.432Closing 0.822 1.229 - - 0.822 1.229Opening 4.470 4.677 1.012 1.047 5.482 5.724Addition 1.426 0.001 - - 1.426 0.001Deduction/ Adjustment - 0.001 0.276 0.276 0.001Production 0.196 0.207 0.045 0.035 0.241 0.242Closing 5.700 4.470 0.691 1.012 6.391 5.482Opening 0.665 0.922 - - 0.665 0.922Addition 0.610 (0.002) - - 0.610 (0.002)Deduction/ Adjustment 0.001 (0.002) - - 0.001 (0.002)Production 0.147 0.257 - - 0.147 0.257Closing 1.127 0.665 - - 1.127 0.665
Sakhalin-1, Russia
Block 06.1, Vietnam
IEC, Russia
AFPC, Syria
GNPOC, Sudan
Project
As at March 31, 2020
As at March 31, 2019
As at March 31, 2019
As at March 31, 2020
Crude oil*(MMT)
Group's share of Proved Developed Reserves on the geographical basis (including joint operations, joint ventures and associates) is as under:
As at March 31, 2019
Gas(Billion Cubic Meter)
Total oil equivalent (MMTOE)**
As at March 31, 2020
Details
Block 5A, South Sudan
PIVSA, Venezuela
GPOC, South Sudan
BC-10, Brazil
MECL, Colombia
Annual Report 2019 - 20 365 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
Opening 1.925 2.039 - - 1.925 2.039Addition - - - - -Deduction/ Adjustment 1.100 - - 1.100 -Production 0.084 0.114 - - 0.084 0.114Closing 0.741 1.925 - - 0.741 1.925Opening 0.049 0.049 - - 0.049 0.049Addition - - - - - -Deduction/ Adjustment - - - - - -Production - - - - - -Closing 0.049 0.049 - - 0.049 0.049Opening - - 4.032 5.044 4.032 5.044Addition - - - (0.316) - (0.316)Deduction/ Adjustment - - - (0.001) - (0.001)Production - - 1.056 0.697 1.056 0.697Closing - - 2.976 4.032 2.976 4.032Opening 9.081 3.334 - - 9.081 3.334Addition 0.091 6.403 - - 0.091 6.403Deduction/ Adjustment - - - - -Production 0.595 0.656 - - 0.595 0.656Closing 8.577 9.081 - - 8.577 9.081Opening 70.599 41.100 14.722 8.654 85.321 49.754Addition 0.016 33.639 0.410 7.728 0.426 41.367Deduction/ Adjustment 0.001 0.001 - 0.002 -Production 3.492 4.140 1.489 1.660 4.981 5.800Closing 67.122 70.599 13.642 14.722 80.764 85.321Opening 11.445 10.905 - - 11.445 10.905Addition 1.297 - - - 1.297Deduction/ Adjustment - - - -Production 0.800 0.757 - - 0.800 0.757Closing 10.645 11.445 - - 10.645 11.445Opening 126.538 94.079 54.354 27.842 180.892 121.921Addition 8.404 42.426 1.703 31.107 10.107 73.533Deduction/ Adjustment 2.349 (0.005) 0.284 (0.001) 2.633 (0.006)Production 9.489 9.971 5.090 4.597 14.579 14.568Closing 123.104 126.538 50.683 54.354 173.787 180.892
- Refer Note no.47 for status of projects.- Due to non activity in Block 5A, South Sudan, AFPC, Syria and Block XXIV, Syria, there is no change in reserve status as per REC report.* Crude oil includes Condensate.
Total Reserves
Carabobo - 1, Venezuela
Vankor, Russia
Block XXIV, Syria
ACG, Azerbaijan
Reserves of the Company as at October 1, 2013 were certified by Third Party Certifying (TPC) agencies. The certified 1P reserves were lower by 45.538MMT as compared with the estimates of Reserve Estimates Committee (REC) of the parent company i.e. Oil & Natural Gas Corporation of India Limited(ONGC) in respect of certain projects. However, the management of the Company did not agree with the assumptions of the TPC in this regard and adoptedthe reserves figures as approved by the REC.
Block-A1 & A3, Myanmar
Variations in totals, if any, are due to internal summations and rounding off.
Lower Zakum, Abu Dhabi
** MMTOE denotes “Million metric Tonne Oil Equivalent” and for calculating Oil equivalent of Gas, 1000 M3 of Gas has been taken to be equal to 1 MTof Crude oil.
Annual Report 2019 - 20 366 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
52 Impairment recognized during the year
52.1
52.2
The following 2P reserves of the respective CGUs have been considered for the impairment assessment:
CGU Proved and Probable Reserves (MMTOE)as at March 31, 2020
Imperial, Russia 49.952
Sakhalin, Russia 111.361
Vankor, Russia 104.309
Area-1,Mozambique 218.41
Block-5A, South Sudan 6.312
GPOC, South Sudan 6.328
Lower Zakum, Abu Dhabi 25.766
MECL, Colombia 1.321
Block BC-10, Brazil 2.912
PIVSA, Venezuela 4.357
Carabobo-1, Venezuela 13.644
ACG, Azerbaijan 9.958
Block 06.1, Vietnam 9.202
Block A1 & A3, Myanmar 14.045
52.3
53
54
55 Some balances of Trade and other receivables, Trade and other payables and Loans are subject to confirmation/reconciliation. Adjustments, if any, will beaccounted for on confirmation/reconciliation of the same, which are not expected to have a material impact.
The Company has considered the equity share investment, preference share investment, loans given and accrued interest thereon, to its wholly ownedsubsidiary Imperial Energy as carrying value of investment for the purpose of impairment assessment. The cash flows for assessing the value in use havebeen considered estimating the life of blocks till 2061 based on the reserves estimates as per GKZ, the State Commission for Mineral Resources as well asthe existing provisions in the Russian sub soil law which states that “The time lines of use of a subsoil area can be extended at the initiative of the subsoiluser in case it is necessary to complete prospecting and appraisal or development of a mineral deposits or carry out abandonment/liquidation measuressubject to absence of violations of the license terms by this subsoil user." The existing validity period of licenses of various blocks are ranging from upto2022 to till 2038 which can be extended at the initiative of the user. The production for next five years have been estimated in alignment with the work program from 2020-21 to 2024-25 and thereafter as per the designdocuments approved by the regulator.
The Company carried out impairment test as at March 31, 2020 in respect of its Cash Generating Units (CGUs) based on value in use method. TheCompany identified impairment in respect of 5 CGUs and provided for impairment of ₹ 31,265.00 million during the year ended March 31, 2020 (for theyear ended March 31, 2019 net impairment of ₹ 15,762.16 million was recognised in respect of two CGUs). The current year provision for impairment isconsidered as exceptional item. Refer note 39.
The Company has a system of physical verification of Inventory, property, plant and equipment and Capital Stores in a phased manner to cover all itemsover a period of three years. Adjustment differences, if any, are carried out on completion of reconciliation.
The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
Impairment assessment is made on an annual basis. The Company carried out last impairment test as at March 31, 2020 in respect of its Cash GeneratingUnits (CGUs) based on value in use method and appropriate impairment allowance was recognised.
Annual Report 2019 - 20 367 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
56 Changes in accounting policy
Assets Carrying Amount at 31 March 2019
Reclassifcation increase/ (decrease)
Carrying Amount at 31 March 2019 on adoption
of Ind AS 116Right-of-use assets 9,512.89 9,512.89Other property, plant and equipment 15,066.10 (3,168.30) 11,897.80Oil & Gas Assets 321,284.01 (6,344.59) 314,939.42Deferred tax assets (If Applicable)Total assets 336,350.11 - 336,350.11
Liabilities Carrying Amount at 31 March 2019
Reclassifcation increase/ (decrease)
Carrying Amount at 31 March 2019 on adoption
of Ind AS 116Borrowings - Non Current 366,714.40 (5,670.17) 361,044.23 Other Financial Liabilities- Current 11,531.79 (982.28) 10,549.51 Lease LiabilitiesCurrent 982.28 982.28 Non Current 5,670.17 5,670.17 Total Liabilities 378,246.19 - 378,246.19
Leases previously classified as finance leases:The group did not change the initial carrying amounts of recognised assets and liabilities at the date of initial application for leasespreviously classified as finance leases. The requirements of Ind AS 116 were applied to these leases from 1 April 2019.
Leases previously accounted for as operating leases:Such leases meet the criteria for short term leases or low value leases under Ind AS 116. Hence no right-of-use asset or lease liabilityhas been recognised. There are no operating lease commitments which were required to be disclosed under the erstwhile Ind AS 17,therefore, the reconciliation of the operating lease commitments as at 31 March 2019 to lease liabilities as at 1 April 2019 is notgiven.
The following is a reconciliation of the financial statement line items from Ind AS 17 to Ind AS 116 at 1 April 2019:
Annual Report 2019 - 20 368 of 373
ONGC VIDESH LIMITED(All amounts are `̀ in million unless otherwise stated)
57 Materiality adopted in respect of financial statements
58 Other Notes
1
2
3
4
5
6
7
8
9
10
11
The Company’s share in the assets, liabilities & expenses are accounted for on line by line basis with the similar items in the financialstatements of the Company based on Joint Interest Billings (JIB) received from overseas operators. Majority of JIBs are audited however,in certain cases the assets, liabilities & expenses are accounted on the basis on Unaudited JIBs as disclosed in note no 47.2.
The other current assets includes ₹ 101.29 millions, which represents the impact of underlifting quantity by the company during the yearand the same would be settled in kind.
The Company has fully repaid the 3.25% USD 750 million 5 year Notes on its due date of redemption, i.e., July 15th 2019.
ONGC Videsh is the operator in respect of block CPO-5, Colombia. The levies applicable on the non-operating partner are discharged byway of sale of crude oil. The company recognises in its book of accounts only its share of revenue and the statutory levies.
Previous year figures have been regrouped / reclassified, wherever necessary.
Carabobo One AB, a wholly owned subsidiary of ONGC Videsh, generally provides its audited financial statements for the purpose ofgroup consolidation. However, due to prevailing global pandemic COVID-19 and consequent lockdown in Venezuela, Carabobo One ABcould not get its financial statements audited for FY2019-20. The consolidated financial statements have been prepared considering theunaudited financial statements of Carabobo One AB.
The Company has fully repaid the Non- convertible debentures (NCD) Series - II for ₹ 3,700.00 millions on its due date of redemption,i.e., January 6, 2020.
The company owns 50.125% of the building Deendayal Urja Bhawan consisting of total 10 floors and amenities. The parent companywhich was bearing the entire common cost has raised invoices for sharing the common cost for services, which has been recognised aspayable by the company. The company is evaluating its options in respect of the two floors presently occupied by the parent company(ONGC) and consequently the future economic benefit is yet to be decided. Appropriate accounting treatment will be carried out basedupon the outcome of management decision.”
The group has awarded a contract to M/s DeGolyer & MacNaughton (D&M) for the audit of its Oil & Gas Reserves disclosed in Note 51.The audit couldn't be completed due to the impact of the global pandemic (Covid-19).
Materiality has to be determined on a case to case basis depending on specific facts and circumstances relating to the information / event.In order to determine whether a particular event / information is material in nature, the following ‘quantitative’ or ‘qualitative’ criteria(s)shall be applied:
(a) Quantitative criteria (i) Materiality shall become applicable to an event / information where the value involved or the impact exceeds a certain value definedand approved by the Board of the Company. Such value is defined based on revenue, profit & loss & net worth of the company; (ii) The above threshold shall be determined on the basis of audited consolidated financial statements of previous audited financial year.
(b) Qualitative criteria Materiality shall become applicable to an event / information: (i) if the omission of which is likely to: - if in the opinion of the Board of Directors of the Company, the event / information is considered material. In circumstances where ‘quantitative’ test may not be applicable, ‘qualitative, test may be applied to determine materiality.
Exploratory wells in progress includes ₹ 1,307.03 millions in respect of Block 5A South Sudan where preparation for resumption of oilproduction activities is in progress. Oil production activities were under shutdown since December 2013 due to security situation in Block5A South Sudan.
Government of India through “The Taxation Laws (Amendment) Act, 2019” has inserted Section 115BAA of the Income Tax Act, 1961,whereby a domestic company has an irrevocable option of exercising for a lower corporate tax rate along with consequent forego ofcertain tax deductions and incentives, including accumulated MAT credit eligible for set-off in subsequent years. The company has stillnot exercised this option and continues to evaluate the benefit of exercising the option for a lower corporate tax rate vis-à-vis the existingprovisions. Pending exercising of the option, the company continues to recognize the taxes on income for the quarter and year endedMarch 31, 2020 as per the earlier provisions.
Annual Report 2019 - 20 369 of 373
ONGC VIDESH LIMITED CONSOLIDATED(All amounts are `̀ in million unless otherwise stated)
59 Approval of financial statements
Sd/- Sd/- Sd/- (Rajni Kant) (Vivekanand) (Shashi Shanker)Company Secretary Director (Finance) Chairman
(DIN: 07566552) (DIN: 06447938)
As per our report of even date attached.
For SPMR & Associates For Thakur, Vaidyanath Aiyar & Co.Chartered Accountants Chartered AccountantsFirm Regn No. 007578N Firm Regn No. 000038N
Sd/- Sd/-Place: New Delhi (Harish Kumar) (K K Upadhyay)Date: June 18, 2020 Partner (M No. 086315) Partner (M No. 096584)
The consolidated financial statements were approved by the board of directors on June 18, 2020.
For and on behalf of the Board of Directors of ONGC Videsh Limited
Annual Report 2019 - 20 370 of 373
Anne
xure
A
(` in
mill
ion)
As %
of
Cons
olid
ated
net
as
sets
Amou
ntAs
% o
f co
nsol
idat
ed
prof
it o
r lo
ss
Amou
ntAs
% o
f co
nsol
idat
ed o
ther
co
mpr
ehen
sive
in
com
e
Amou
ntAs
% o
f co
nsol
idat
ed t
otal
co
mpr
ehen
sive
in
com
e
Amou
nt
ON
GC V
ides
h Li
mit
ed C
onso
lidat
ed10
0.00
%51
5,68
6.40
100.
00%
4,35
1.92
10
0.00
%10
,802
.86
10
0.00
%15
,154
.78
A A.1
ONGC
Vid
esh
Lim
ited
Indi
a11
.07%
57,0
87.9
8
390.
70%
17
,002
.96
100.
00%
10,8
02.8
6
18
3.48
%27
,805
.82
B B.1
Fore
ign
B.1.
1ON
GC N
ile G
anga
B.V
. Th
e N
ethe
rlan
ds4.
52%
23
,294
.22
57.5
4%
2,5
04.0
4 0.
00%
-
16.5
2%2,
504.
04
B.1.
2ON
GC C
ampo
s Ltd
a.Br
azil
2.91
%
15,0
24.2
2 (4
7.30
)%
(2,0
58.3
9)0.
00%
-
(13.
58)%
(2,0
58.3
9)
B.1.
3ON
GC N
ile G
anga
(San
Cri
stob
al) B
.V.
The
Net
herl
ands
6.56
%
33,8
31.7
3 (9
7.64
)%
(4,2
49.3
3)0.
00%
-
(28.
04)%
(4,2
49.3
3)
B.1.
4ON
GC C
aspi
an E
&P
B.V.
The
Net
herl
ands
(0.3
6)%
(1
,844
.90)
1.85
%
80.
35
0.00
%
-
0.
53%
80.3
5
B.1.
5ON
GC N
arm
ada
Lim
ited
Nig
eria
0.00
%
23.
83
(0.6
3)%
(27
.35)
0.00
%
-
(0
.18)
%(2
7.35
)
B.
1.6
ONGC
Am
azon
Ala
knan
da L
imite
dBe
rmud
a0.
00%
1
3.50
0.
55%
2
4.03
0.
00%
-
0.16
%24
.03
B.
1.7
Impe
rial
Ene
rgy
Lim
ited
Cypr
us7.
60%
39
,209
.93
249.
58%
10
,861
.33
0.00
%
-
71
.67%
10,8
61.3
3
B.1.
8Im
peri
al E
nerg
y To
msk
Lim
ited
Cypr
us0.
02%
9
0.64
(0
.36)
%
(
15.5
6)0.
00%
-
(0.1
0)%
(15.
56)
B.1.
9Im
peri
al E
nerg
y (C
ypru
s) L
imite
dCy
prus
0.45
%
2,2
99.8
7 (0
.35)
%
(
15.3
3)0.
00%
-
(0.1
0)%
(15.
33)
B.1.
10Im
peri
al E
nerg
y N
ord
Lim
ited
Cypr
us1.
85%
9
,551
.15
(0.3
6)%
(15
.73)
0.00
%
-
(0
.10)
%(1
5.73
)
B.
1.11
Bian
cus H
oldi
ngs L
imite
dCy
prus
0.05
%
2
50.9
9 41
.44%
1
,803
.44
0.00
%
-
11
.90%
1,80
3.44
B.
1.12
Redc
liffe
Hol
ding
s Lim
ited
Cypr
us0.
11%
563
.87
(0.3
5)%
(15
.13)
0.00
%
-
(0
.10)
%(1
5.13
)
B.
1.13
Impe
rial
Fra
c Ser
vice
s (Cy
prus
) Lim
ited
Cypr
us0.
00%
1
1.72
(0
.37)
%
(
16.1
1)0.
00%
-
(0.1
1)%
(16.
11)
B.1.
14Sa
n Ag
io In
vest
men
ts L
imite
dCy
prus
(0.0
1)%
(32
.66)
(12.
71)%
(553
.11)
0.00
%
-
(3
.65)
%(5
53.1
1)
B.
1.15
LLC
Sibi
nter
neft
Russ
ia(0
.05)
%
(2
50.1
2)(1
7.61
)%
(7
66.2
3)0.
00%
-
(5.0
6)%
(766
.23)
B.1.
16LL
C Al
lianc
enef
tega
z Ru
ssia
(0.2
8)%
(1
,418
.27)
(373
.15)
%
(
16,2
39.3
3)0.
00%
-
(107
.16)
%(1
6,23
9.33
)
B.
1.17
LLC
Nor
d Im
peri
alRu
ssia
0.29
%
1,4
78.6
0 (7
1.51
)%
(3,1
11.9
4)0.
00%
-
(20.
53)%
(3,1
11.9
4)
B.1.
18LL
C Ru
s Im
peri
al G
roup
Russ
ia(0
.03)
%
(1
56.7
1)(9
7.98
)%
(4,2
64.1
1)0.
00%
-
(28.
14)%
(4,2
64.1
1)
B.1.
19LL
C Im
peri
al F
rac S
ervi
ces
Russ
ia0.
01%
4
0.57
30
.36%
1
,321
.13
0.00
%
-
8.
72%
1,32
1.13
B.
1.20
Cara
bobo
One
AB
Swed
en0.
91%
4
,680
.31
(0.0
8)%
(
3.62
)0.
00%
-
(0.0
2)%
(3.6
2)
B.1.
21Pe
tro
Cara
bobo
Gan
ga B
.V.
The
Net
herl
ands
1.36
%
7,0
23.9
3 (2
3.06
)%
(1,0
03.6
8)0.
00%
-
(6.6
2)%
(1,0
03.6
8)
B.1.
22ON
GC B
TC L
tdCa
yman
Isla
nds
0.03
%
1
48.2
8 2.
63%
114
.64
0.00
%
-
0.
76%
114.
64
B.
1.23
Beas
Rov
uma
Ener
gy M
ozam
biqu
e Li
mite
dRe
publ
ic o
f Mau
ritiu
s25
.83%
133,
192
3.98
%
1
73.1
0 0.
00%
-
1.14
%17
3.10
B.1.
24ON
GC V
ides
h Ro
vum
a Lt
dRe
publ
ic o
f Mau
ritiu
s0.
00%
0.16
(0
.02)
%
(0.
82)
0.00
%
-
(0
.01)
%(0
.82)
B.
1.25
ONGC
Vid
esh
Atla
ntic
Inc.
Texa
s0.
02%
107
.00
(1.2
7)%
(55
.45)
0.00
%
-
(0
.37)
%(5
5.45
)
B.
1.26
ONGC
Vid
esh
Sing
apor
e Pt
e. L
td.
Sing
apor
e(2
1.28
)%
(10
9,73
4.51
)(0
.75)
%
(
32.4
4)0.
00%
-
(0.2
1)%
(32.
44)
B.1.
27ON
GC V
ides
h Va
nkor
neft
Pte.
Ltd
.Si
ngap
ore
3.66
%
18,8
62.1
9 (1
05.3
8)%
(4
,585
.90)
0.00
%
-
(3
0.26
)%(4
,585
.90)
B.
1.28
Indu
s Eas
t Med
iterr
anea
n Ex
plor
atio
n Lt
d.Is
rael
(20.
32)%
(
104,
761.
86)
(0.2
5)%
(10
.72)
0.00
%
-
(0
.07)
%(1
0.72
)
B.
1.29
ONGC
Vid
esh
Rovu
ma
Ltd.
, Ind
iaIn
dia
34.4
1%
1
77,4
63.6
1 (1
49.0
6)%
(6
,486
.86)
0.00
%
-
(4
2.80
)%(6
,486
.86)
CN
on-c
ontr
ollin
g In
tere
sts
in a
ll su
bsid
iari
es3.
27%
16
,879
.30
(4.3
3)%
(188
.24)
0.00
%
-
(1
.24)
%(1
88.2
4)
D D.1
Fore
ign
D.1.
1Pe
tro
Cara
bobo
S.A
.Ve
nezu
ela
0.86
%
4,4
49.5
5 (7
6.54
)%
(3,3
31.1
7)0.
00%
-
(21.
98)%
(3,3
31.1
7)
D.1.
2Ca
rabo
bo In
geni
ería
y C
onst
rucc
ione
s, S.
A.Ve
nezu
ela
0.00
%
0.
32
0.00
%
-
0.00
%
-
0.
00%
-
D.
1.3
Sout
h-Ea
st A
sia
Gas P
ipel
ine
Com
pany
Lim
ited
Hon
gkon
g0.
36%
1
,844
.90
31.1
2%
1,3
54.4
8 0.
00%
-
8.94
%1,
354.
48
D.1.
4Ta
mba
B.V
.Th
e N
ethe
rlan
ds1.
75%
9
,023
.35
22.6
7%
9
86.7
3 0.
00%
-
6.51
%98
6.73
D.1.
5JS
C Va
nkor
neft
Russ
ia21
.78%
112
,329
.02
303.
81%
13
,221
.62
0.00
%
-
87
.24%
13,2
21.6
2
D.1.
6SU
DD P
etro
leum
Ope
ratin
g Co
mpa
nyM
auri
tius
0.00
%
-
0.00
%
-
0.00
%
-
0.
00%
-
D.
1.7
Petr
oler
a In
dove
nezo
lana
S.A
.Ve
nezu
ela
5.19
%
26,7
68.0
6 (5
.37)
%
(2
33.5
7)0.
00%
-
(1.5
4)%
(233
.57)
D.1.
8Fa
lcon
Oil
& G
as B
.VTh
e N
ethe
rlan
ds4.
29%
22
,119
.75
35.2
8%
1,5
35.2
1 0.
00%
-
10.1
3%1,
535.
21
D.1.
9M
oz L
NG1
Hol
ding
Co.
Ltd
. Si
ngap
ore
0.01
%
67.
72
0.43
%
18.
77
0.00
%
-
0.
12%
18.7
7
E E.1
Fore
ign
E.1.
1ON
GC M
ittal
Ene
rgy
Lim
ited
Cypr
us0.
00%
-
0.
00%
-
0.
00%
-
0.00
%-
E.1.
2H
imal
aya
Ener
gy (S
yria
) B.V
.Th
e N
ethe
rlan
ds0.
04%
207
.73
(0.3
7)%
(16
.16)
0.00
%
-
(0
.11)
%(1
6.16
)
E.
1.3
Man
saro
var E
nerg
y Co
lom
bia
Ltd.
Berm
uda
3.09
%
15,9
45.4
0 14
.85%
646
.38
0.00
%
-
4.
27%
646.
38
To
tal
515,
686.
40
4,
351.
92
10,8
02.8
6
15,1
54.7
8
Not
es: 1
Exch
ange
rate
s for
Bal
ance
shee
t ite
ms:
1 U
SD =
₹ 7
5.48
(Pr
evio
us Y
ear -
1 U
SD =
₹ 6
9.21
)2
Exch
ange
rate
s for
Pro
fit &
loss
item
: 1 U
SD =
₹ 7
0.91
5 (P
revi
ous Y
ear -
1 U
SD =
₹ 6
9.94
58)
3N
o su
bsid
iary
is y
et to
com
men
ce o
pera
tions
.
Asso
ciat
es (i
nves
tmen
ts a
s pe
r th
e eq
uity
met
hod)
Join
t ven
ture
s En
titi
es (
inve
stm
ents
as
per
the
equi
ty m
etho
d)
Pare
nt :-
Subs
idia
ries
ON
GC V
ides
h Li
mit
ed (C
onso
lidat
ed)
Sche
dule
-III
add
itio
nal d
iscl
osur
e on
Con
solid
ated
Fin
anci
al S
tate
men
ts -
2019
-20
S.N
o.N
ame
of th
e en
tity
in th
e Gr
oup
Coun
try
of
inco
rpor
atio
nN
et A
sset
(i.e
. tot
al a
sset
min
us to
tal
liabi
litie
s)
as o
n M
arch
31,
202
0
Shar
e in
Pro
fit o
r lo
ss fo
r th
e fin
anci
al y
ear
ende
d M
arch
31,
20
20
Shar
e in
oth
er c
ompr
ehen
sive
inco
me
for
the
finan
cial
yea
r en
ded
Mar
ch 3
1,
2020
Shar
e in
tota
l com
preh
ensi
ve in
com
e fo
r th
e fin
anci
al y
ear
ende
d M
arch
31
, 202
0
Annu
al R
epor
t 201
9 - 2
037
1 of
373
Ann
exur
e A
(` in
mill
ion)
As %
of
Con
solid
ated
net
as
sets
Am
ount
As %
of
cons
olid
ated
pr
ofit
or lo
ss
Am
ount
As %
of
cons
olid
ated
ot
her
Am
ount
As %
of
cons
olid
ated
tot
al
com
preh
ensiv
e
Am
ount
ON
GC
Vid
esh
Lim
ited
Con
solid
ated
100.
00%
503,
019.
5910
0%16
,796
.68
100%
8,97
1.72
100%
25,7
68.4
0
APa
rent
:-A
.1O
NG
C V
ides
h Li
mite
dIn
dia
25.2
1%12
6,79
8.64
17%
2,85
5.12
100%
8,97
1.72
46%
11,8
26.8
4
BSu
bsid
iari
esB
.1Fo
reig
nB
.1.1
ON
GC
Nile
Gan
ga B
.V. (
A &
B C
lass
)Th
e N
ethe
rland
s13
.93%
7
0,06
3.57
-2
4%
(4,0
98.8
5)0%
-16%
(4,
098.
85)
B.1
.2O
NG
C C
ampo
s Ltd
a.B
razi
l4.
08%
2
0,50
0.39
-2
0%
(3,3
56.9
4)0%
-13%
(3,
356.
94)
B.1
.3O
NG
C N
ile G
anga
(Cyp
rus)
Lim
ited
(Not
e 4)
Cyp
rus
-
-
-
-
-
-
-
-
B.1
.4O
NG
C N
ile G
anga
(San
Cris
toba
l) B
.V.
The
Net
herla
nds
6.39
%
32,
118.
36
-7%
(1
,098
.75)
0%-4
%
(
1,09
8.75
)B
.1.5
ON
GC
Cas
pian
E&
P B
.V.
The
Net
herla
nds
1.14
%
5,
715.
42
2%
2
81.7
3 0%
1%
28
1.73
B
.1.6
ON
GC
Nile
Gan
ga B
.V.
(C C
lass
)Th
e N
ethe
rland
s0.
00%
-
0%
-
0%
0%
-
B
.1.7
ON
GC
Nar
mad
a Li
mite
dN
iger
ia-0
.43%
(
2,16
4.44
)0%
(65
.23)
0%0%
(65.
23)
B.1
.8O
NG
C A
maz
on A
lakn
anda
Lim
ited
Ber
mud
a1.
72%
8,64
7.42
0%
2.64
0%
0%
2.6
4 B
.1.9
Impe
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36,7
71.8
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51.3
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5
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Not
es:
Exch
ange
Rat
es:
1Fo
r Bal
ance
shee
t ite
ms:
1 U
SD =
₹ 6
9.21
(Pr
ev Y
ear -
1 U
SD =
₹ 6
4.92
)2
For P
rofit
& lo
ss it
em: 1
USD
= ₹
69.
9458
(Pre
v Y
ear -
1 U
SD =
₹ 6
4.47
12)
3N
o su
bsid
iary
is y
et to
com
men
ce o
pera
tions
.4
ON
GC
Nile
Gan
ga (C
ypru
s) L
imite
d ha
s bee
n liq
uida
ted
w.e
.f 12
th Ju
ly 2
017.
ON
GC
Vid
esh
Lim
ited
(Con
solid
ated
)Sc
hedu
le-I
II a
dditi
onal
disc
losu
re o
n C
onso
lidat
ed F
inan
cial
Sta
tem
ents
- 20
18-1
9
S.N
o.N
ame
of th
e en
tity
in th
e G
roup
Cou
ntry
of i
ncor
pora
tion
Net
Ass
et (i
.e. t
otal
ass
et m
inus
tota
l lia
bilit
ies)
Sh
are
in P
rofit
or
loss
for
the
finan
cial
ye
ar e
nded
Mar
ch 3
1, 2
019
Shar
e in
oth
er c
ompr
ehen
sive
inco
me
for
the
finan
cial
yea
r Sh
are
in to
tal c
ompr
ehen
sive
inco
me
for
the
finan
cial
yea
r en
ded
Mar
ch
Annu
al R
epor
t 201
9 - 2
037
2 of
373
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Annual Report 2019 - 20 373 of 373
VEN
UE
OF
54TH
AGM
OF
ON
GC
VID
ESH
Route
Map
for 5
5th A
nnua
l Gen
eral
Meeti
ng of
ONG
C Vi
desh
