B&E: A few years back, ONGC announced a much publicised strategic plan. Has that helped you handle the economic turmoil any better?
RS Sharma (RS): In 2001, we identified three strategic priorities, i.e., a) Improving our hydrocarbon reserve base; b) Enhancing recovery factor from existing fields; and c) Accessing equity oil from overseas... Time-bound action plans have been rolled out which are at various stages of implementation.
B&E: ONGC is currently contributing 77% of India’s crude oil production and 81% of India’s natural gas production. Do you expect this to continue in the longer term given the fact that ONGC is not integrated completely in the value chain?
RS: ONGC’s long-term strategy (Vision 2020) focuses on strengthening the core activities i.e., Exploration and production of oil & gas. As such, the strategic vision for improving reserve replacement ratio through new exploration finds remains the first priority. As I mentioned earlier, production enhancement, arresting decline in matured fields and expeditious development of discovered fields are the other priorities... Our endeavour would be to complete these projects on schedule and consolidate our efforts towards value-chain integration.
B&E: What will be ONGC’s most critical challenges in the coming years?
RS: Exploration and production of oil & gas remains as one of the most challenging businesses where inputs are deterministic and outputs are probabilistic. As far as ONGC is concerned, critical challenges remain to be to make major new discoveries and sustaining production level from the existing ageing fields. For effectively meeting these challenges, we have structured a framework to develop a suitable solution matrix for these identified blocks, if any. As of now, our solution matrix has mostly green dots (blocks with positive outcomes). However, our listed priorities continue to challenge us to still do better.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2009
RS Sharma (RS): In 2001, we identified three strategic priorities, i.e., a) Improving our hydrocarbon reserve base; b) Enhancing recovery factor from existing fields; and c) Accessing equity oil from overseas... Time-bound action plans have been rolled out which are at various stages of implementation.
B&E: ONGC is currently contributing 77% of India’s crude oil production and 81% of India’s natural gas production. Do you expect this to continue in the longer term given the fact that ONGC is not integrated completely in the value chain?
RS: ONGC’s long-term strategy (Vision 2020) focuses on strengthening the core activities i.e., Exploration and production of oil & gas. As such, the strategic vision for improving reserve replacement ratio through new exploration finds remains the first priority. As I mentioned earlier, production enhancement, arresting decline in matured fields and expeditious development of discovered fields are the other priorities... Our endeavour would be to complete these projects on schedule and consolidate our efforts towards value-chain integration.
B&E: What will be ONGC’s most critical challenges in the coming years?
RS: Exploration and production of oil & gas remains as one of the most challenging businesses where inputs are deterministic and outputs are probabilistic. As far as ONGC is concerned, critical challenges remain to be to make major new discoveries and sustaining production level from the existing ageing fields. For effectively meeting these challenges, we have structured a framework to develop a suitable solution matrix for these identified blocks, if any. As of now, our solution matrix has mostly green dots (blocks with positive outcomes). However, our listed priorities continue to challenge us to still do better.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2009
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