ONGC signs MoU with P

New Delhi, Mar 29 (UNI) State-owned Oil and Natural Gas Corporation Ltd (ONGC) today entered into an MoU with the Ministry of Petroleum and Natural Gas (MoP&NG), agreeing on a set of performance parametres and targets for the financial year 2007-08.

The agreement was signed by Mr M S Srinivasan, Secretary, MoP&NG and ONGC Chairman and Managing Director R S Sharma here.

Mr Sharma said, ''the higher MoU targets signify higher business growth and are aimed to address the expectations of all stakeholders of ONGC.'' The agreement aims crude production of 29.04 million tonnes (MT), six per cent higher than 27.35 MT in FY-07.

Natural Gas Production is targeted at 25.05 billion cubic metres (BCM), 14 per cent higher than 21.97 BCM in FY-07; Value-Added-Products at 32.45 MT, 12 per cent up from 29.03 MT in FY-07; Reserve Accretion (Ultimate) target at 55 MT of Oil Equivalent (MToe), 5 per cent higher than the target of 52.5 MToe in FY-07.

A number of new performance parametres have been introduced in this (FY-08) MoU. The significant milestones include: -- Third Party Audit of 350 Exploratory Wells.

-- Formation of three Joint Ventures and Alliances with International majors.

-- Economic Value Addition of 19.13 per cent.

-- Undertaking two Clean Development Mechanism Projects.

-- Restoration of drillsite land before handing over (38).

The FY-08 MoU has also doubled the weightage on subsidiary management (OVL and MRPL) from two per cent to four per cent.

UNI