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Report No.11 of 2012-13 – Performance Audit on Hydrocarbon Exploration Efforts of Oil and Natural Gas Corporation Limited, Ministry of Petroleum and Natural Gas

Date on which Report Tabled:

Tue 28 Aug, 2012

Date of sending the report to Government

Government Type

Union

Union Department

Commercial

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Sector Power & Energy

Overview

Performance Audit of hydrocarbon exploration efforts (2007-08 to 2010-11) of Oil and Natural Gas Corporation Limited (ONGC) was conducted to ascertain whether ONGC's exploration efforts had been taken up with proper planning and executed with efficiency and effectiveness to achieve its own and the nation's envisioned hydrocarbon goal. The audit conclusions based on detailed examination of records of Basins and Services, at the corporate level of ONGC, at the Ministry of Petroleum and Natural Gas (MOPNG) and the Directorate General of Hydrocarbons (DGH), through other national and international.

Despite acquiring 89 prospective blocks out of 120 blocks upto VIII round of New Exploration Licensing Policy (NELP), ONGC made only 11 discoveries in 8 blocks. The Company did not complete its committed work in 25 prospective blocks and drilled only 30 out of 90 committed wells within the specified period. In 74 per cent of highly prospective blocks acquired by the Company under NELP I to V rounds, ONGC could not complete its work commitments.

Though ONGC made 99 discoveries in NELP and Nomination blocks over 2007-2011, it accreted a reserve of only 80.93 MMToe3. A comparison of discoveries in the NELP regime shows that despite its large acreage and rich experience in Exploration and Production (E&P) sector, ONGC made lesser discoveries than new entrants like Gujarat State Petroleum Corporation (GSPC) and Reliance Industries Limited (RIL).

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Performance Audit Report on Hydrocarbon Exploration Efforts of ONGC
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