News Archive

MRPL in support of education

Date: 
January 31, 2008

Mangalore Refinery & Petrochemicals Ltd, (MRPL), an ONGC group company, continues its Samrakshan programme for the benefit of the community in and around Mangalore. From 1st of February 2008, 926 students attending primary to high school, drawn from 72 Government Schools will be provided with merit scholarship of Rs700/- per month for the entire academic year. Two students each from each Division from Class I to Class X in 52 schools from around Kuthethoor and 20 from Sarpady will benefit from these merit scholarships. The respective schools will decide on the students based on their performance and needs.

"In view of the importance of good educational inputs necessary for all sections of society, every year MRPL sets apart a part of its mite to boost education amongst the more needy in Dakshin Kannada, says Shri R Rajamani, MD, MRPL. "Award of these 'MRPL Samrakhshan scholarships' to the deserving has been an on going process. This year our contribution under this head has been increased to Rs 6.27 lakhs," he added.

In a simple ceremony the "MRPL Samrakshan Award Scheme" was inaugurated by Shri Basheer Ahmed, Corporator, at the D K Zilla Panchayat higher Primary School, Kuthethoor.

(Picture shows Shri S K Kadri, DGM P&HR, MRPL speaking on the occasion of the inauguration. Also seen are Shri Basheer Ahmed, Corporator, Smt Lalita Nayak, the HM of DK Zilla Panchayat Primary School, Kuthethoor and Shrisha Karmaran, MRPL and the young beneficiaries of the Scheme.

Issued by
-sd-
Lekshmi M Kumaran
DGM, CC

MRPL (9448495706) mrpl.corp.comm@gmail.com

MRPL to the rescue of Chelaieru Rehabilitation Colony

Date: 
January 28, 2008

Mangalore Refinery & Petrochemicals Ltd, (MRPL), an ONGC group company, has come forward to solve the acute drinking water problem at the Chelairu Rehabilitation Colony by handing over Rs1,00,000/- to MESCOM (Mangalore Electricity Supply Company Ltd).

The earlier laid water pipeline, constructed with funding support of Rs65,00,000/- from MRPL, is currently inadequate and the existing borewells have run dry. An open well is the only reliable source now and though a 10KW pump had been procured the villlagers needed a one time deposit money of Rs1,00,000/- to be paid to MESCOM. With the intervention of Deputy Commissioner, Shri Maheshwar Rao and timely response from Shri R Rajamani, Managing Director, MRPL, the problem has now been effectively solved.

"We are concerned about the welfare of the community and MRPL has never been found wanting in attending to a felt need voiced by the right forum", says Shri R Rajamani, MD, MRPL. "MRPL is also facilitating the construction of a 3 lakh litre overhead tank that will provide even more relief to the people of Chelairu and we are happy with the progress of the Project," he added.

The cheque addressed to MESCOM was handed over by Shri. Santhosh Kumar Kadri, DGM (P&HR), MRPL in the presence of Smt. Seethamma N.C, Project Director Zilla Parishat and Mr. Kantaraju, Executive Officer (see pic), Taluk Panchyat Chelaieru Panchyat President, Secretary, Displaced Families Association President Secretary and other Officer Bearers, Residents of colony, in the meeting held on 25/01/2008 at Samudaya Bhavan.

Issued by
-sd-
Lekshmi M Kumaran
DGM, CC

MRPL (9448495706) mrpl.corp.comm@gmail.com

MRPL & SHELL JV TO ENTER AVIATION FUELLING BUSINESS

Date: 
January 21, 2008

Shell Aviation and Mangalore Refinery and Petrochemicals Limited (MRPL), an ONGC Group Company and a mini ratna I, today announced a landmark agreement to enter into an exclusive joint venture to market and supply aviation fuel, initially at two Indian airports, Bangalore and Hyderabad and later on at other Indian airports.

The companies will provide complimentary services and strengths to the joint venture; MRPL will bring its expertise & and supply of high quality products, and Shell Aviation will bring its global brand, network and customer base in addition to stringent quality control procedures. Together the companies will offer a compelling co-branded global refuelling offer to both the Indian and international airlines. The agreement will become effective early in 2008.

R S Sharma, Chairman, MRPL and C&MD,ONGC hailed the JV agreement as a major initiative by both companies to cater to the growing Indian Aviation sector that will catalyse the marketing activities of MRPL.

R Rajamani, Managing Director, MRPL said, "Aviation Sector in India is growing at a frantic pace. MRPL has large production of international quality Aviation Fuel, which can meet the rapidly growing Indian demand. The JV between MRPL and Shell in aviation field will offer the best quality standards and technical service to domestic and international airlines".

L K Gupta, Director (F), MRPL said, "MRPL and Shell bring in significant value to the JV which will ultimately benefit the customers. This JV will also put MRPL on international level by supplying Aviation fuel in India to foreign airlines on one hand and on the other, by contracting fuel supply for Indian carriers when they fly abroad."

Sjoerd Post, Vice President Shell Aviation, said, "India is an important growth market for Shell Aviation and the industry as a whole. We are pleased to be working with MRPL, this agreement extends our global network offering and will benefit both Indian and our global customers."

Vikram Singh Mehta, Chairman, Shell Companies in India, said, "with explosive growth in the civil aviation sector in India it is indeed timely that we are formally joining hands with MRPL, to serve this large market opportunity with our shared values of quality products and excellent service".

For further information, please contact:
Mangalore Refinery and Petrochemicals Limited
Lekshmi M. Kumaran, +91 9448495706

ONGC Net down due to unprecedented high subsidy burden

Date: 
January 21,2008

Summary of Q3 results (October - December 2007):

  • Net Profit: 4,367 Crore, down 6.4 % from Rs. 4,668 Crore (in Q3 FY-07)
  • Sales Revenue: 15,218 Crore, down 2.6 % (Rs. 15,631 Crore)
  • Crude Oil production: 6.62 Million Metric Tonnes (MMT) [6.63 MMT]
  • Natural Gas production: 5.78 Billion Cubic Meters (BCM) [up from 5.73 BCM]
  • Value-Added-Products: 857 Kilo-Tonnes (KT) [874 KT], 102% of Q3 Target

Nine-month results (April - December 2007):

  • Net Profit: Rs. 14,075 Crore (up 8.6 % from Rs. 12,961 Crore in 9-month in FY-07)
  • Sales Revenue: Rs. 44,409 Crore (down 0.1% over Rs. 44,454 Crore)
  • EPS: Rs. 65.80 (Rs. 60.60 per share)
  • Crude Production: 19.5 MMT (up from 19.49 MMT)
  • Natural Gas Production: 16.82 BCM (up from 16.62 BCM)
  • Value-Added-Products: 2,442 Kilo-Tonnes (up from 2394 KT)

1.0 Oil and Natural Gas Corporation Ltd. (ONGC) has posted a Net Profit of Rs. 4,367 Crore, in the 3rd Quarter of fiscal 2007-08.

2.0 The turnover of the company is down 2.6% to Rs. 15,218 Crore, due to a subsidy pay-out of Rs. 6,080 Crore to the Oil Marketing Companies IOC, BPCL and HPCL. The pre-discount realization for Q3 is 91.19 US$ per barrel and post-discount realization is 54.52 US$ per barrel.

3.0 The net profit for the corresponding quarter last year (FY-07) was Rs. 4,668 Crore, after sharing a subsidy of Rs. 2,204 Crore.

4.0 The subsidy burden amounts to Rs. 13,528 Crore during the current 9 months as compared to Rs. 12,356 Crore in the corresponding period, last year.

5.0 Earnings-Per-Share (EPS) of ONGC for the 9-months of FY-08 has increased to Rs. 65.80 per share as compared to Rs. 60.60 per share for the corresponding period the year before.

6.0 Discoveries
ONGC made nine (9) discoveries during the October - December 2007 period. Out of these, four (4) are from new prospects and five (5) are new pool discoveries in earlier established fields. In the cumulative 9-month period of FY-08, ONGC has made 19 discoveries (9 from new prospects and 5 from new pool).

7.0 Some significant developments in Q3-08

7.1 New Projects: 2nd Pipeline Replacement Project
After the implementation of the Mumbai Redevelopment Project, Mumbai Offshore fields are expected to produce up to 2030. Hence, to strengthen the Pipeline network for Oil & Gas transportation, the ONGC Board approved the 2nd Pipeline Replacement Project along with necessary modifications, at a cost of Rs. 2553.25 Crore, to be implemented over a period of 3 years.

7.2 PY-3 Phase-III Development approved
The ONGC Board approved the Phase-III Development of PY-3 (In Cauvery Offshore) field at a Capex of US$ 35.9 million (Rs. 147.19 Crore), which is 40% of the total investment of US$ 89.75 million. ONGC holds 40% stake in the field; other stakeholders are HOEC (21%), Tata Petrodyne (21%) and Hardy Exploration & Production (18%). This Phase-III development of the field will enhance the recovery by 10.52 MMSTB (Million Metric Stock Tank Barrels).

8.0 Recognitions

8.1 First-ever Indian company in Fortune's list of World's Most Admired Companies, 2007
ONGC achieved the unique distinction of becoming the first-ever Indian company in the Fortune Magazines annual (2007) list of the World's Most Admired Companies. This is based on a survey of Fortune companies across the globe, conducted by the Fortune magazine, in association with Hay Group.

8.2 3rd CDM project registered with UNFCCC
The Oil major's third Clean Development Mechanism (CDM) project was registered with the United Nations Framework Convention for Climate Change (UNFCCC) on 21st December 2007. The project "Flare Gas Recovery project at Uran Plant" involves reducing Gas flaring from ONGC's Uran Plant and qualifies for a CDM project under fuel substitution category. This is a large scale project with an estimated estimated annual Carbon Credits (CER) of 97,740, equivalent to an annual earning of around Rs. 9.3 Crore of green revenue (1 CER drawing 16 Euro these days on a conservative basis).

9.0 ONGC Videsh Ltd. (OVL) – bigger overseas footprints

9.1 ONGC Videsh Ltd. (OVL) wins two exploration blocks in Brazil
OVL bagged two exploration blocks in Brazil, viz. Deepwater Block 470 in the highly prospective Espirito Santo Basin and Shallow water Block 1413 in another highly prospective Santos basin, amid stiff competition from International companies on 27th November 2007.

9.2 ONGC-Mittal Joint Venture acquires 30% Participating Interest in Turkmenistan Exploration Block
ONGC Mittal Energy Ltd. (OMEL), a joint venture between OVL and Mittal Investment Sarl (MIS), acquired 30% Participating Interest (PI) in an exploratory Block 11-12, Offshore Turkmenistan in the Caspian Sea. Covering an area of 5663 square km, the block is located close to discovered and producing fields, and contains a number of prospects with significant reserve potential. Apart from OMEL, the other stakeholders in the block are Wintershall, a German company with 34% Participating Interest (PI) and Maersk Oil, a Denmark company with 36% PI.

10.0 Announcing the results, Mr. R S Sharma, Chairman & Managing Director, ONGC complimented Team ONGC for the nine discoveries in October-December 2007 and improvement in production for the cumulative 9-month period. He expressed optimism that going forward, ONGC will display better performance.

Issued By
Corporate Communications,
ONGC
Oil and Natural Gas Corporation Ltd.

Corporate Communications, New Delhi,
Phone: +91-11-23320032, 23301302;
Tele-Fax: 011-23357860
Mail: ongcteam@gmail.com

MRPL RECORDS IMPRESSIVE PERFORMANCE IN Q III - NET PROFIT UP 194%

Date: 
January 16, 2008

Mangalore Refinery & Petrochemicals Ltd, an ONGC Group Company and a mini ratna I, continues its upswing in performance by notching a net profit of Rs 347 crore, 194% above the corresponding previous quarter (Rs 118 crore) in 2006-07

The net profit for the quarter is after providing for interest and finance charges of Rs.36 crore (Rs.51 core), depreciation of Rs.95 crore (Rs.89 crore) and tax provision of Rs.101 crore (Rs. 99 crore). The turnover was 11% higher at Rs.9, 324 crore (Rs.8, 403 crore)
Throughput during the quarter was 10% lower at 3.02 MMT (3.36 MMT) due to turnaround of some of the secondary processing units taken in November – December 2007. The turnaround was completed safely within 25 days, 5 days ahead of schedule, with meticulous planning

NINE MONTHS PERFORMANCE:
The Performance of the Company during the nine months period ended 31st December 2007 is equally impressive. The gross turnover was Rs.26,671 crore, up 8% (Rs.24,586 crore) and throughput 9.40 MMT up 1% (9.31 MMT). The net profit during the nine-month period ended 31st December 2007 was Rs.1,047 crore up 204% (Rs.344 Crore).

AWARDS AND RECOGNITION:
MRPL's performance on Energy Conservation continues to be excellent. The government of Karnataka, Department of Energy and Karnataka Renewable Energy Development Limited, has awarded `Certificate of Merit' for energy conservation for the year 2006-07 in refinery sector.

MARKETING INITIATIVES:
MRPL launched its first Retail Outlet HiQ, satnding for highest quality fuels and services at Maddur (near Mysore), Karnataka on 12th January 2008. Two more outlets in Hubli and Mangalore are scheduled to be commissioned by March 2008. The work for the remaining Retail Outlets in Karnataka, Andhra Pradesh and Tamil Nadu is at an advanced stage.
The Company has received permission from Airports Authority of India for supplying ATF to the aircrafts, through mobile fuellers at Mangalore Airport.

STATUS OF PROJECTS:
The Licensors for 4 major units in respect of the Refinery Upgradation and Expansion Project (Phase III) at Mangalore have already been selected and design work has already started. SIA (Secretariat for Industrial Approvals - Govt. of India) clearance has also been received. EPC tender for CDU/ VDU and Captive Power Plant units is under finalization

The Licensor's selection for the Aromatics Complex being set up by ONGC Mangalore Petrochemicals Ltd (OMPL), has been completed and design work had already commenced.
In addition, process packages are under preparation for the low cost revamp of the existing crude distillation unit and Gas Oil Desulphurisation unit (GOHDS).

CORPORATE SOCIAL RESPONSIBILITY:
As a socially conscious corporate, MRPL effectively steers `Samrakshan' its CSR programme to continually contribute meaningfully to the community. In the last quarter alone two dialysis machines, a Laser Treatment unit for curing Diabetic retinopathy to Government Wenlock Hospital, Mangalore, were donated and an highly beneficial artificial limb camp was held at Mangalore, in partnership with the famous Jaipur foot manufacturers. Besides eye camps were held and medical equipment was provided to the Maternity Theatre of Lady Goshen Hospital, Mangalore.

Environment Management:
The company has identified a few Energy Conservation Schemes as part of Clean Development Mechanism (CDM), under Kyoto Protocol. The public hearing in respect of projects identified has been completed and the schemes will be presented to international agencies for final acceptance.

Speaking on the occasion Shri R.S.Sharma, Chairman complimented the Team MRPL for sustained all round excellent performance during the quarter and thanked all the stakeholders for their unstinted support and confidence in MRPL.

The Board of MRPL in its meeting held on 16th January 2008 at New Delhi has approved the Financial Results for the third quarter (October - December) of FY 2007-08

-sd-
Lekshmi M Kumaran
DGM.

Issued by Corporate Communications
MRPL

MD, MRPL met Hon'ble PM of India

Date: 
14th January 2008

Our MD Shri R Rajamani was privileged to meet our Honorable Prime Minister Shri Manmohan Singh on 7th November 2007 along with other CEOs of Oil PSUs. It is indeed a great honour for MRPL as well, since Shri Rajamani was the only MD who visited the PM's office (apart from Chairmen).

The occasion was the first Indo-African Hydrocarbon Conference, organized by MoP&NG, GoI, UNCTAD & FICCI. Visiting Ministers from about 37 African countries (Libya, Nigeria, Algeria, Angola, Sudan, Egypt, Gabon, Congo, Chad, Equatorial Guinea, Cameroon, Tunisia, Congo, Ivory Coast, Mauritiania, Ghana, S. Africa, Benin, Morocco, Ethiopia, Mozambique, Namibia, Rwanda, Somalia, Tanzania, Sao Tome & Principe, Niger, Mauritius, Uganda, Zimbabwe, Senegal, Central Africa Republic, Kenya & Comoros) were honoured during the Conference and were invited to meet the Prime Minister. The delegation was led by Shri Murli Deora, Honorable Minister of Petroleum & Natural Gas, GoI.

Earlier Shri Rajamani had Chaired a session on the 2nd day afternoon of the 2 day India-Africa Hydrocarbon Conference & Exhibition that was organised by MoP&NG , GoI, FICCI and UNCTAD to provide an exclusive platform for all the stakeholders to pursue their interests at the business and policy level at a time when India is making forays into the global market investing significantly in Africa, CIS etc. The Confernce explored oppotunities betwen India & Africa in the hydrocarbon sector, facilitated one on one business meetings for participants and also showcased the latest technology, products and services in the sector.

Issued By
DGM
Corporate Communications, MRPL

0824 2219132 , +919448495706

The battle for the marketshare in MS & HSD Retail to heat up with the launch of MRPL's HiQ.

Date: 
January 13, 2008

At a colourful function held at Maddur, near Mandya on the Bangalore-Mysore Highway, yesterday, Shri M S Srinivasan, Secretary, MoP&NG, GoI, in the presence of Shri S M Shankar, the Honorable MLC of Maddur, Shri P B Mahishi, Chief Secretary, GoK, Shri I M Vittalamurthy, Secretary, KCI&T, GoK, Shri Rajamani, MD, MRPL , Shri N K Mitra, Director (Offshore), ONGC & Director MRPL, and Shri L K Gupta, Director (Finance), MRPL, unveiled the latest brand petroleum retail brand, HiQ from the House of MRPL.

A report

The HiQ RO was all dressed up and ready by 1600hrs on 12th January 2008. Flowers adorned the sales building, trees and the D-island were lit up, welcome arch opened itself to the guests and the VIP's cars. The traditional drummers from Mandya in their tiger skin costumes, plumed headgear and bare torsos welcomed the guests as they came in. Shri Rajamani drove in and was escorted by GM (RS) Shri Sanjay Grover to the Baskin Robbins Outlet which was converted into a VVIP waiting area for the evening. The crowd was sizeable by 1730hrs.

Several dignitaries came to grace the occasion including the Deputy Commissioner Shri N. Manjunatha Prasad, Zilla Panchayat Chief Executive Officer, Additional SP, Shri P K Atreya, Sr Advisor (Ops & Mktg), MRPL, Shri Nanjundan, Ex-ED, IOC who was part of the faculty that trained MRPL's Retail Marketing Dept.

Amongst the invited dignitaries on the dais, Shri N K Mitra, Director (Offshore) & Director MRPL, was the first to arrive. By 1745 the Chief Guest, Shri Mahishi and Honorable MLC Shri S.M Shankar who was to preside over the event, reached HiQ. By 1755 Shri M S Srinivasan came with Shri L K Gupta and Shri Kaleel Rahim, SrGM, (BD) and then came Shri I M Vittalamurthy.

The emcee for the evening, Dr Roshini took the floor and the inaugural ceremony began. The drums hit a crescendo when the pylon was unveiled by Shri S M Shankar, Honorable MLC, Maddur, and 10 bunches of purple and orange balloons with HiQ/MRPL cutouts tied to the base rose into the air singing "Chuenge hum aasman".

Then the fuelling service was inaugurated by sale of HSD, or diesel as its commonly known, from the first dispensing bay. The lady owner /driver smilingly looked on as Shri M S Srinivasan took the nozzle and punched the amount into the DU and with the assistance of the customer service attendant pumped the first quantity of HiQ fuel. The wireless handheld terminal spat out the bill and the sale was effected.

Next was the inauguration of the sales room by Shri Mahishi and then the Karnataka Tourism Information Kiosk by Shri Vittalamurthy.
Dr Roshini invited all the dignitaries onto the dais and the formal ceremony rolled. Invocation was sung to Lord Ganesha, then followed the State Anthem "Jaya janani" and then MRPL anthem "Chuenge Hum Aasman". Shri Gupta delivered a formal welcome and briefly touched upon very relevant issues of under recoveries and the Govt's support required for MRPL before winding up his heartwarming welcome.

Bouquets and Shawls were presented to the dignitaries by Shri R Rajamani and then the film "Decade of Excellence" was screened. Chairman, MRPL though unable to attend the function, thoughtfully sent his message and this was read out by Shri N K Mitra.

Having introduced MRPL through the audio visual, Shri Rajamani addressed the gathering about HiQ, about MRPL's plans in the retail fuelling space. He spoke about the 2 HiQs planned for launch by the end of March 2008 and the 14 HiQs spread over Karnataka, AP & TN that will soon come into the retail fuelling space. "A total of 500 HiQs will roll out all over India", he said (His speech left the media excited about the new dynamics in the retail fuel space and they later swamped him).

To further emphasize the philosophy and the brand promise of HiQ, a short film on HiQ was screened next.

Shri Mitra congratulated MRPL in his short crisp speech. Shri Vittalamurthy whose Department had provided the land for HiQ, congratulated MRPL for providing these facilities to the tourists who frequent the State highway passing connecting Bangalore & Mysore. (Mysore-Bangalore Highway has a very high volume of tourist groups). Shri Mahishi also spoke glowingly and expressed happiness about the fact that the first three HiQs are coming up in Karnataka. Shri Srinivasan spoke about the market realities, aspirations of today's customers and the demand for fuel stations with improved and high quality facilities and services. (Later he was heard complimenting MRPL on HiQ, and the entire event management from reception at airport to inauguration). Shri S M Shankar, Honorable MLC spoke in kannada and expressed his satisfaction about better facilities and services reaching Maddur through HiQ.

The event concluded with Shri Gupta giving away mementoes to the dignitaries on the dais and a vote of thanks from Shri Sanjay Grover, GM (RS). Soonafter the media surrounded Shri Srinivasan and then Shri Rajamani with a barrage of questions on oil price, industry outlook, MRPL's plans etc. Meanwhile all the other dignitaries were escorted to the Cafe© Coffee Day which is the largest in India, and the CCD was inaugurated by ribbon cutting, cake cutting and a round of coffees.

As the dignitaries left for Bangalore, and we began dismantling the shamiana and stage, we knew that the show has started for Shri Sanjay Grover and his team ably headed by Shri Anoop Srivastava, Zonal Manager, Bangalore and supported by Sridhar, Balaji, Rajesh, Manoj, Shwetha and Kailash the service providers. If the commitment we saw and effort they put in to make this event a success is anything to go by, HiQ will be the market leader on the Mysore- Bangalore Highway, ahead of Reliance, IndianOil, HPC, IBP and BPC who have set up shop much before us.

Chuenge Hum Aasman.

New Year Message from the desk of Chairman, MRPL

Date: 
01 January 2008

Dear colleagues,

2008 has arrived in all its glory. Let me convey my choicest wishes to all members and families of ONGC group companies. A new year is with us again. How time flies. Whoever said that time waits for none is obviously more than correct.

Looking back at the year that has left us  2007  we have some really good news to share. We've featured as the first-ever Indian company in the Fortune's coveted list of World's Most Admired Companies, 2007. ONGC is currently Asia's Best E & P Company, as per Platts 250 Global Energy Companies List, 2007.

We achieved an annual Reserve Accretion of 169.52 MTOE. The highest in a decade and secured a record 24 blocks in the NELP-VI, reinforcing our leadership in the Indian E&P industry. We also became the only Indian company to produce ATF from Gas Condensate.

ONGC's subsidiaries OVL and MRPL also registered unprecedented performances in 2007. OVL established footprints in a number of overseas acreages, taking its global project count to 35 in 17 countries. MRPL also recorded capacity utilization of 130%. Fiscal - 08 is turning out even better on financial parameters for both subsidiaries.

We also received a host of other accolades on our corporate governance model and initiatives for protection of the environment - too numerous to mention succinctly. Our financial performance has also been highly impressive. We hope to end this fiscal with record figures yet again. So, pat yourself on the back; we have done it yet again, year on year, our tomorrow is truly becoming
brighter.

However, before we rejoice, a word on introspection. Our performance is now continuously evaluated against that of other players in the business, who are supposedly more nimble, more surefooted, more alert to new opportunities and quicker to convert a prospect to discovery and a discovery to production. While, we may argue our case, it is the perception that we need to be concerned about. One barometer of "perception of performance" is market capitalization of the company. On this parameter, we have admittedly slipped to the number two spot after having ruled the bourses as the "numero uno" corporate.

We also need to introspect on whether our improved financials are merely a by-product of the high crude-price regime or whether we have actually improved on operational fundamentals. I leave it to you to be the judge on this one. Be fair, be brutally honest and be factual in your assessment. It is the realization from this introspection that will set the agenda for this year.

As we look back at our history, we have achieved much thanks to the unstinting efforts of our seniors, but a perpetual business enterprise has no option but to improve internally and to grow continuously and at rates faster than the competition and that too not merely on the home turf, but globally. Big challenge; surely, but we are not faint of heart to let such a challenge go unchallenged. We are made of sterner stuff. So think of all the clich's, pull up your socks, gird your loins and many others. Believe me, clich's still work; the message is - be prepared and be resolute for 2008.

Energy demand in India will grow at a much faster rate than the global projection of 3%. In the absence of any break-through in the transportation sector, the energy supply basket will continue to be fed predominantly by Oil and Gas. To meet this booming Oil and Gas demand, structured initiatives by E&P companies like us need to be put in place.

In domestic E&P space, expeditious reserves replacement is our first priority. The XI Plan Reserve Replacement target is 1+. We need to take concerted efforts to achieve that. Arresting decline from our matured fields and enhancing production from the new fields comes next in our agenda, along with expeditious development of discovered fields, especially in deep and ultra deep-waters. Technology management will be crucial in the latter. We have already initiated strategic partnerships with global leaders in this sphere. Another area of concern is achieving our drilling targets in the face of global shortage of deepwater drilling rigs at high charter rates. Apart from technology, financial engineering and contract negotiation skills would be required.

Overseas, we have to continue with acquisitions, by making the best use of funds. While our priority areas are in Africa and Central Asia, we are exploring each possibility to grow inorganically in the global E&P turf.

MRPL is also well poised for capacity expansion and steering the aromatics SPV, thus enhancing value for various stakeholders.

While firmly anchored in Oil and Gas E&P, ONGC is also preparing for the future. We have taken initiatives for tapping New Energy Sources like Coal Bed Methane (CBM) and Underground Coal Gasification (UCG), harnessing India's natural endowment of Coal Reserves. These efforts need to be accelerated.

Renewable sources of energy and alternative clean fuels are also an objective to which we are firmly committed. ONGC is setting up a 50 MW Wind Power

Plant in Gujarat. ONGC has also laid the foundation of Rajiv Gandhi Energy Centre in New Delhi, for undertaking holistic research in state-of-the-art Renewables like Thermo-chemical Reactor for Hydrogen, Geo-bio Reactors and Fuel Cells. These efforts must now aim at migration of concept to market in the quickest possible time.

In addition, we need to aggressively pursue ways to discover more effectively and to produce more efficiently.

2008 is a big year for us, a year of opportunity with an extra day as a leap year. And yes, at the corporate level we're planning ahead for the long run. While our plans will organize resources, it is your willpower and the spirit of achievement that will translate them into reality. I firmly believe that it is the aggregate of individual effort that produces collective result.

Another heartening news is that Mr. Dinesh Kumar Saraf has joined us as regular Director (Finance) on 27th December-07. While welcoming him, I feel confident that our financial management systems will improve further.

I would like to thank my colleagues on the Board and senior colleagues in Assets, Basins, Services and Institutes for their continued support. When facing various challenges and opportunities, it is unity under unanimous thought, creativity, competence, pursuit of profit, maximizing share-holder return, care for employees; serving and separated, and the passion to serve the nation and humanity through our various CSR initiatives that has enabled us to strengthen this great Institution ONGC.

Dear colleagues, I thank you again personally and on behalf of my colleagues on the Board for believing in yourself and in your ability to deliver results. It is this belief in self that has taken us to where we stand today. From this vantage point, we must constantly ask ourselves whether we have become too self-satisfied with the Group's achievements and are now failing to create new value, or if in discharging our duties we are merely waiting for orders rather than taking personal initiative, or just what sort of value we personally created in 2007 or can create in 2008.

Lastly, I thank the families of all ONGCians for believing in this organization and sharing our vision for growth. My wife Rashmi, daughter Swati and son Nayan join me to wish a VERY HAPPY 2008 to all the members and families of ONGC group Companies.

2008 is upon us, enjoy!

Jai Hind.
-sd-
R S Sharma