ONGC Over-Achieves Reserve Accretion Targets, Brings Down Insurance Spend Substantially

Oil & Natural Gas Corporation Ltd (ONGC) has announced that the Board of Directors of the Company at its meeting held on May 10, 2007, has noted the following recently achieved operational highlights:1.0 ONGCs Reserve Accretion and New Oil & Gas Finds 1.1 During the year 2006-07 ONGC made twenty two discoveries (nine by new prospects and thirteen by establishing new pools). The new prospects are: three in Cambay basin, one each in Mumbai Offshore, Assam shelf and Cauvery basin and three in East Coast Deep Water. In yet another milestone, one of these deepwater finds has put Mahanadi Basin on the hydrocarbon map of India. The ultra-deepwater discovery of KG offshore is the first ultra-deepwater discovery of the country. 1.2 During 2006-07 ONGC accreted reserve accretion to the tune of 65.56 million tones of Oil plus Oil equivalent Gas (mtoe) as against MoU target of 52.5 mtoe. The production during the period for the company is 48.28 mtoe, resulting in Reserve Replenishment ratio of 1.36:1. 1.3 Incidentally, the reserve accretion for the X plan (2002-07) target have also been over-achieved in terms of initial In-place as well as Ultimate Reserves.mtoe (O+OEG) --------------------------------------------------------------------------------------------TargetActuals------------------------------------------------------------------------------------------In-place570.43676.76Ultimate155.51240.88