1. DEAR Shareholders The last fiscal year Has Been A Year Of Achievements For Your Company, And Indeed Its A Pleasure For Me To Share The Same With You. First Of All, Your Company Has Recorded The Highest Ever Production Of 62.05 Million Tonnes Of Oil And Oil Equivalent Gas. Your Company Has Made Considerable Breakthrough In Shale Gas Exploration. Because Of 22% Hike In The Price Of Crude Oil, Petroleum Products Prices Have Risen Considerably. To Make The Petroleum Products Affordable, The Indian Government Had To Subsidize The Prices. Your Company Is Having To Bear The Burden Of Subsidy To The Tune Of 82%. The Company Is Setting Up A 102mw Capacity In Rajasthan. Besides The Maharatna Status Award, Your Company Has Been Awarded The Top Rank Amongst The 44 Global Oil And Gas Companies As Per The Organizational Disclosure Practices For Promoting Revenue Transparency. Your Unsatiated Support And Patronage Has Always Given Us Confidence To Achieve New Milestones In Performance Fronts On A Continuous Basis. I Am Sure That The Management Will Continue Getting Your Support And Will Grow And Prosper In A Sustainable Manner For The Years To Come. With Best Compliments. A.K HAZARIKA

2. Creation of Oil and Natural Gas Commission Oil & Natural Gas Directorate upgraded to Oil and Natural Gas Commission in 1956. Commission converted into a statutory body by Act of Parliament in 1959 for planning, promoting, organising and implementation of programme for development of Petroleum resources in India. Hydrocarbon India Ltd. (HIL), precursor to ONGC Videsh Ltd., formed in 1965. Oil and Natural Gas Commission becomes Oil and Natural Gas Corporation on 1st Feb.1994. In 1997 ONGC is declared as one of the Navratna PSU. ONGC becomes a Maharatna PSU in 2010.

3. Crude oil Natural gas Ethane Superior Kerosene Oil HSD LPG Motor Spirit Aromatic Rich Naptha

4. Economic Growth Powered by Energy Energy is a Key Enabler for Economic Growth 10

5. Energy Sources . Finite 1. 2. 3. Coal Oil Gas Infinite/ renewable 1. 2. 3. 4. Solar Wind Hydroelectricity Biomass etc.

6. For India, sourcing of Energy remains a challenge.. with 16% of Global Population; 0.5% of worlds Petroleum Reserve; 10% of worlds coal reserves; 8-10% GDP growth target; & 4.5% CAGR (97-07) in energy demand

7. ONGC Group produces ~ 1.2 million barrels per day of oil Plus Oil- equivalent Gas, from a balance reserve of > 11 billion barrels O+OEG: refines about 12.5 MMTPA ( >270, 000 bopd): extracts about 3 MMTPA of Value Added Products Sells Crude Oil, Gas Value Added Products (LPG, Naphtha, Ethane-Propane, SKO, HSD, ATF etc.) with a turnover of USD 23.83 billion (2008-09) 13

8. Overseas E&P Refineries SEZ Value-chain (23%) (100%) (26%) (71.6%) Services (50%) (23%) (23%) Joint Ventures (49*%) Subsidiaries (50%) (21.5%) (100%) (26%) (100%) (100%) (100%) Kakinada SEZ (12%) (50%) ONGC Campos Holdings Ltda ONGC Do Brasil Explorancao Petrolifera Ltda Power (50.0%) (100%) ONGC Amazon Alaknanda Ltd (OAAL) * OMPL: 46% ONGC & 3% MRPL 14

9. ONGC- E&P Global Footprints 38* Projects in 18 Countries 24 Exploration 6 Development 7 Producing OVL Production (O+OEG) : 8.776 MMToe Venezuela 1 Cuba Colombia 3 Brazil 2 1 2 Libya Congo Br Sudan 1 15 Vietnam Turkmenistan 1 1 Myanmar 1 1 3 2 1 1 2 Nigeria JDZ 2 1 3 Nigeria Russia Iran 1 Qatar 1 1 2 Egypt 2 Iraq 1 Syria * 38th project is Sudans 741 km long completed Pipeline 15

10. ONGC: Domestic Operations Rajasthan Onshore Assam Self Tripura Western Onshore Jharia (CBM) Dahez SEZ, OPAL PETRONET Kakinada SEZ Western Offshore Mahanadi Offshore MRPL Refinery KG Offshore KG Onshore 16 Cauvery Onshore Cauvery Onshore 16

11. ONGC stake sale fetches Rs 12,666 cr: Pranab March 1, 2012, 11:45 pm | Press Trust of India BUSINESS New Delhi: Terming the ONGC stake sale as "a great success", Finance Minister Pranab Mukherjee on Thursday said the government has raised Rs 12,666 crore from auction of its 5 per cent stake in the oil major. "It is a great success...Our latest figure (from auction of ONGC shares) is now Rs 12,666 crore, which comes to 98.3 per cent subscription," he told reporters here. He said auction route to sell government stake in a PSU was a "highly experimental option". Mukherjee said it was "a great success". The exchanges BSE and NSE, on whose platform the auction was conducted, in a joint statement said, "The ONGC offer for sale was completed today using the secondary market

12. Company has vast pool of skilled and talented professionalsthe most valuable asset for the company. Company continued to extend several welfare benefits to the employees and their families by way of comprehensive medical care,education, housing and social security.

13. This Code of Conduct (hereinafter referred to as Code) is applicable to the Members of the Board (hereinafter referred to as Directors) and Senior Management of Oil and Natural Gas Corporation Limited (theCompany) and its unlisted subsidiaries. The Company currently has in place the Conduct, Discipline & Appeal Rules, 1994 as amended from time to time (the CDA Rules), which govern the conduct of all employees of the Company including Whole-time Directors. The Code is applicable to all Members of the Board and all Senior Management Personnel. We must recognize that compliance of the Code is essential for promoting stakeholder confidence in our organization. Therefore, every ONGCian is expected to voluntarily comply with the Code.

14. The Unions had submitted their charter of demands in 2007, thereafter, a tripartite Long Term Settlement (LTS) was signed on 18.09.2010 by the Management and Union before Regional Labour Commissioner (RLC). The ONGC Board, in its 209th meeting held on 22nd September, 2010 accorded approval for implementation of this tripartite settlement for Wage Revision of Unionised category of employees of ONGC w.e.f 1.1.2007.

15. Employees Contributory Provident Fund (ECPF) Trust, managing Provident Fund accounts of employees of the Company. The Post Retirement Benefit Scheme (PRBS) Trust of the Company manages the pension scheme of the employees. The Composite Social Security Scheme (CSSS) formulated by Company provides an assured ex-gratia payment in the event of unfortunate death or permanent disability of an employee in service. Families of deceased employees get a financial assistance under the scheme ranging between 1.5 million to 2.0 million. ONGC Sahayog Trust has been created for welfare of secondary workforce or their heirs, who are in financial distress. Gratuity Fund Trust has been created for payment of gratuity with provision of Gratuity Rules. Company implemented the Employees Pension Scheme (EPS1995), retrospectively w.e.f. 16th November, 1995.

16. The perception of ONGC has vastly improved among the stakeholders-investors, government and general public because of good boundary management by the organization. Some of the positive steps taken by ONGC is like signing of an integrity pact with vendors, regular vendors meet, better vigilance administration and the media has helped it in achieving a better perception about the organization. ONGC plays a major role in every way possible and it represent India to the world.

17. Company has 184 International & National sportspersons who represent ONGC as well as the country in various national and international events throughout the year. In addition to this, ONGC supports around 100 sportspersons through scholarships. During the year, ONGC sportspersons left an indelible mark in mega sporting events like Commonwealth Games, Asian Games and ICC World Cup. Cricket icons Gautam Gambhir, Munaf Patel and Virat Kohli of ONGC played a stellar role in winning the coveted ICC World Cup Trophy after a gap of 28 years for India.

18. Education including vocational courses. Health Care. Entrepreneurship (self help and livelihood generation) schemes. Infrastructure support near our operational areas. Environment protection, ecological conservation, promotion. Protection of heritage sites, UNESCO heritage monuments etc. Promotion of artisans, craftsman, musicians, artists etc. for preservation of heritage, art and culture. Women's empowerment, girl child development, gender sensitive projects. Promoting sports/sports persons; supporting agencies promoting sports/sports persons. Water management including ground water recharge. Initiatives for physically and mentally challenged. Sponsorship of seminars, conferences, workshops etc.

19. Water Management Education Disaster Relief Project HEAT

20. ONGC has been ranked as the Number One Exploration & Production Company in the World and 18th in the overall listing of global energy companies as per Platts Top 250 Global Energy Company Ranking 2010(November, 2010).

21. Excellence marks ONGC says Sudan Minister January 18, 2007 One word that would aptly sum ONGC is excellence remarked H.E. Dr. Ms. Angelina Teny, State Minister, Ministry of Energy and Mining, Sudan after visiting the ONGC Stall and perusing the ONGC portal or.net at Pragati Maidan here today. Yemen invites ONGC to build 1 billon dollar refinery January 17, 2007 Yemen has invited Oil and Natural Gas Corp (ONGC) to build a 100,000 barrels per day refinery on its Arabian sea coast but the Indian state-run firm has conditioned participation in the 1-billion dollar project on being allotted an oilfield in return.

22. In harsh environment Deep Sea (Offshore) Finding cost very high Developing deep sea fieldscost higher & time consuming Big new field in Onshore For putting the find to producing Asset on fast track Enhance production from the existing matured & Ageing fields through Increasing Recovery Factor of existing fields Monetization of idle Assets Optimization of flowing wells Revamping of Ageing Installations Achieving Zero Flaring of Gas 39

23. "Not only had India... set up her own machinery for oil exploration and exploitation... an efficient oil commission had been built where a large number of bright young men and women had been trained and they were doing good work." - Pandit Jawahar Lal Nehru, India's first Prime Minister to Lord Mountbatten, on ONGC (1959).

24. Presented by: Wasim Akram