In a very short time, I'm gonna take you through the hotel emergency protocol. The hotel is equipped with automatic fire suppression and detection system. We do not have any drills happening in the hotel today. We are located at the ground floor. In case there is a fire alarm, it could be a genuine one. However, there is no need to panic. In case the hotel management feels it is deemed necessary to evacuate, we will start announcing it on the public addressing system. You are requested, upon hearing the evacuation message, to leave this venue immediately using the nearest fire exits and go out of the glass door from where you just entered. From medical perspective, we have doctor on call available in the hotel. We also have 3 automated external defibrillators available in the hotel. We have a hotel staff trained for handling CPR and AED operations.
Thank you.
Good evening, ladies and gentlemen. Investors and Analysts Meet is an annual event conducted after adoption of the annual audited accounts by the ONGC board every year, barring last two years due to pandemic. I, Prakash Joshi, from Investor Relations cell of ONGC feel privileged to welcome the investor community and the research analysts representing various institutional investors and fund houses to the ONGC's Investors and Analysts Meet 2022. I also take pleasure in extending a warm welcome to Chairperson, ONGC Group of Companies, and directors on the board of ONGC on the dais, MD MRPL, MD OVL, directors from OVL and MRPL, and other senior officers and colleagues present here. Let me introduce the dignitaries on the dais. Dr. Alka Mittal, Chairperson, ONGC Group of Companies, who is seated at the center. Then we have Sri M. Venkatesh, sir, MD MRPL. Sri A.K. Gupta, sir, MD OVL.
Sri R.K. Srivastava, sir, Director Exploration. Sri O.P. Singh, sir, Director T&FS. Sri Anurag Sharma, sir, Director Onshore. Sri Pankaj Kumar, sir, Director Offshore. Srimati Pomila Jaspal, madam, Director Finance. Now I request you all to kindly put your mobile on silent mode to ensure uninterrupted conduct of the proceedings. Let me announce the proceedings is being recorded as per the requirement. I would request CC to please play the ONGC song. Thank you. Now, may I now invite Director Finance, ONGC, for her welcome address, please.
Thank you. Good evening to all of you. I, on behalf of the entire ONGC group team, Pomila Jaspal, extend a very warm welcome to all our friends from analyst and investor fraternity. It is indeed a great pleasure and heartening to see you all in person after a gap of almost three years, although we were in constant touch through our regular con calls, and we have been constantly getting your valuable views on key issues. It is always good to have face-to-face interaction with our key stakeholders, and we are glad to be back with you today. As you all are aware that ONGC board has declared its annual financial results for financial year 2022 on Saturday the 28th May 2022.
Immediately after the board meeting, we came out with a detailed press release and our Investor Relations Cell, that is IRC, has also separately sent performance highlights to all the analysts as per our mailing list. I am sure you must have gone through those performance highlights. We are glad to share that we posted our highest ever standalone net profit of INR 40,306 crores. We are all well poised. Thank you very much. We are all well poised to continue our sustainable journey, meeting all organizational objectives and accreting value for all our stakeholders. We have a detailed presentation lined up today covering all those performance highlights, including for our group entities as well. Your thoughtful insights and suggestions have always been valuable to us, and we look forward to have a great interactive session.
Without further delay, may I request our respected Chairperson & Managing Director, Dr. Alka Mittal, to share with you all a brief overview of our performance highlights. Thank you.
Very good evening to each and every person present right in front of me and on the dais. Dear, very dear friends from the investors and analysts fraternity, whom we see as one of the most important stakeholders for ourselves, for our business. Members on the board of ONGC Videsh Limited, MRPL Limited, and of course, ONGCians and the representatives from our group companies who are present right in front of us. It's a pleasure to be able to meet you all in person. Just seeing you all having tea and interacting amongst yourselves was such a wonderful sight. Now that I'm here, we all are here to interact and after that have some informal discussions over dinner. This is a wonderful evening from my point of view and from ONGC's point of view, I would say.
The last two years have indeed taken their toll as far as the industry is concerned, as well as the world level also. The businesses have suffered. Different businesses, different countries have been through very rough patches. Now that we have got over that, we are here with you to interact, to hear words of advice, wisdom from you, because the kind of research that goes into your functioning and your particular area is something which will enrich us with a better understanding of the expectations of our stakeholders. ONGC, as you all are well aware of, we were born just nine years after the Independence, and then we took off.
ONGC was not only synonymous with the untiring efforts to meet the energy need demands of our country, but also with that of the nation building through creating cascading opportunities for allied and ancillary industries like engineering, shipping, aviation, hospitality, just to name a few. The kind of services base that we have created is heartening for us to talk about besides what is our core strength, exploration and production of oil and natural gas. These are the areas which keep us going. These are the vision with which we started off, and we have moved so far in this journey of over 65 years, more than 6.5 decades, I would say.
In this year, when we are celebrating 75 years of India's independence, we have a lot to talk about. We have a lot to feel proud of, and I would say way to go. There's a long way for us in the coming times. While we had a humble beginning, I would like to talk about how committed we are to our business. You saw during the second wave of the COVID-19, ONGC Group produced 55 million metric tons of oil and oil equivalent. We refined 36 million metric tons of crude, and we produced 4.5 million metric tons of value added products, and sold around 14 MMT of petroleum products. This is as a group as a whole.
This is the kind of integrated company that is right in front of you and is represented here on the dais, too. We are one of the highest wealth creators, as Pomila-ji was mentioning also, of the nation, having contributed around INR 11.25 lakh crores to the central and state governments since inception till March 2022.
This year's contribution already our Director of Finance has very proudly stated, and which we take lots of satisfaction out of, though I would always continue to say, and I have no hesitation in saying, that we are looking at uptick in our production numbers as well, and we are actually committed towards it, not only for this year, but for the years to come. A presentation is already in ready with us, which will be presented to you, which will talk about not only ONGC plans but the group plans. I will not come too much in the way of that. I will just add a few of my observations for the benefit of our investors and analysts.
The pandemic, however, like I would like to share with you all that while we have been lamenting on the fact that pandemic put us on the back foot, and our production numbers could have been much better if we had not had to suffer those two years, where our projects had to be like almost put on hold in some certain areas because there was overseas component which could not be met because of the travel restrictions and the workshops, yards getting closed. I would like to say that while the pandemic had put us on the back foot, it has also catalyzed a technology-enabled work culture. ONGC was fairly focused on that front, right from the turn of the last century, and we had made good headway.
During these two years, the kind of thoughts, the kind of efforts that have gone are very remarkable. When we talk about it by way of presentation, you will be happy to hear. The digital center of excellence, which we had talked about for almost three, four years, is almost there now with us. This is the impact, this is the opportunity that has come out of the challenge of COVID-19, which we all suffered. Not only that, we have emerged as a very resilient and robust organization. You should have seen the way our colleagues worked in the fields, in the offshore as well as onshore, how they contributed towards ensuring that production goes on. Whether it was lockdown, they were far away from their families.
The families were going through a different kind of concern, but they were focused on contributing towards the nation. That is what gives us so much strength and so much satisfaction when we come to you today. Continuing with our endeavors to bring new basins into production, ONGC has added one more basin, the Vindhyan. We will be talking about it in the presentation, and this is not. There's no stopping us actually when it comes to going actually aggressive on exploration or working towards enhancing our production. The PPT will touch on those things.
We have also been entrusted upon to carry seismic survey on behalf of the government, and that is something government of India, because everyone understands that now is our opportunity to go ahead, acquire the maximum acreage, cover the maximum acreage, and then only we will be able to move forward as a sustainable business entity, I would say. While we are working on that, and we have got good returns also during the various OALP rounds, where we have been able to acquire 85%-90% of stake, we are also focused on ensuring that we are able to make a difference on ground when it comes to exploration, and we are already moving on it. I think four days back, we talked about our exploration plans, where about INR 31,000 crore are getting invested in coming three years.
I would also like to touch on our CapEx spend on the development schemes where it comes to production. While there are ongoing projects, which on which we have committed and provided for around INR 59,000 crore, another INR 20,000 crore worth of projects are ready for approval of the board in this financial year. Subject to the board giving us a go-ahead, we would be moving forward at a very fast pace in a focused manner. That is one part, and going forward, we are targeting an increment, which is going to be substantial, about 11% in crude oil and 25% in natural gas from the present levels till 2024, 2025. The numbers are impressive, but the efforts for that have to be very, I would say, very vigorous.
For that, the team here is totally ready. Not only the team here, the team sitting in front of me who are the senior officials at Mumbai, they are all working on it. We are likely to give you good news on the production front also in the coming years on continual basis. The performance of our subsidiaries has been particularly very encouraging, especially I have MD MRPL sitting here on the dais. We take pride in saying that there has been a turnaround as far as their activities are concerned. There's a profit of INR 29,585 crores over there.
OMPL, MRPL merger, which has finally taken shape and come into place, is going to create new synergies for MRPL and OMPL together, and that is going to lead this group towards better returns, I would say. Our overseas arm, ONGC Videsh Limited, which is represented by Mr. Alok Gupta, the MD OVL, has also posted very impressive results. It's about INR 1,589 crores during the year. CPO-5 block of OVL in Colombia is turning out to be a significant discovery, exploratory success with production having reached a level of 21,000 barrels per day of oil per day. These are the efforts which have got us satisfaction and good returns, I would say.
On the HPCL front, the modernization of the Vizag refinery is going to contribute towards better refining capacity and is expected to be completed next year by the end of this year, I would say, in H1 of 2023. Our power venture OTPC's performance is again, though it was affected by the plant shutdown which had to be taken off of one unit, still it has managed to post an impressive profit of INR 107 crores. I don't look at OTPC only as giving us returns. I look at the kind of difference it is making to the lives of those in the Northeast, and it gives us lots of pride in being a part of this initiative.
Progressively, we are consolidating our position as a truly integrated company with our downstream and petchem units acting as a natural hedge in case of disruptions in our core upstream business. We are also looking at moving together from strength to strength. While we remain focused on our top line, our focus on our triple bottom line is also as consistent, as important for us. ESG parameters are kept in forefront when we are talking about either in terms of reduction of our carbon footprint, or reduction in emissions or moving towards net zero, which is a commitment given by our Honorable Prime Minister himself. We are totally focused on that because we know that that balance is something which is most important for us as a business entity. As a responsible organization, we are totally committed there.
Our steady investment in renewables is also going to continue. With the kind of returns we have been able to get this time, our confidence and our commitment is going to grow stronger in that domain as well. We remain committed as a responsible corporate to help society with contribution ranging from PM CARES Fund towards procurement of concentrators when they were most needed, or towards contributing towards the cold chain which was required for having a vaccination drive across the country. Look at what we have been all able to achieve together. The lead was taken by the government, but we were always there to provide support. While we are also talking about this, I would also like to share that not only our own employees, we were committed to taking care of our secondary workforce also.
A significant number of our personnel who are engaged through different contractors have been vaccinated and are taken care of in these toughest of times. We continue to remain committed not only to growth towards our growth, but also to leverage our group's strength to create more value and wealth for all our stakeholders, and with special consideration to society as one of our key partners when it comes to contributing towards the progress of our nation. I would like to pass on the mic to the presenter for the evening because something that is most important is for you to understand and have all the facts and figures with you. That is what is going to make you feel convinced about what I and Director Finance have talked about.
Thank you for being with us and for being present in such good numbers. Thank you so much.
Thank you, CMD Madam, for sharing a detailed overview and insights on ONGC Group. ONGC have been working towards the response, our responsibility towards the society, ESG, CSR, as Madam just told. We would now play an audio visual on ONGC CSR efforts. Can we please?
From wheel to wire, from kitchen to sky, from Kashmir to Kanyakumari, from mind to heart, Oil and Natural Gas Corporation has embarked on the phenomenal quest not only for oil, but also for spreading smiles. Not only for energy security, but also for social development. ONGC is today one of the premier companies to have invested under its Corporate Social Responsibility. The outbreak of COVID-19 led to uncertainty and insecurity across the globe. ONGC responded with great urgency and remarkable flexibility. Fast-tracking CSR project approvals for the timely procurement of medical supplies. ONGC installed 15 PSA plants and supplied more than 2,000 oxygen concentrators and 6,000 oxygen cylinders to various government hospitals across the country, and created a helpline number to resolve technical issues of oxygen concentrators. ONGC also supported the government with the supply of cold chain equipment to facilitate vaccination.
Distribution of masks, sanitizers, and PPE kits were also initiated. It also helped daily wage workers by providing essentials and feeding the population during the second wave of COVID-19. In Sivasagar district of Assam, people were suffering for want of basic medical facilities for ages. ONGC set up a 300-bed multispecialty hospital at Siu-Ka-Pha, benefits more than 1 lakh patient in a year. To ensure doorstep medical facilities for elderly, women, and children, ONGC engaged 31 mobile medical units covering 371 villages in nine states. ONGC part-financed 455-bed National Cancer Institute at Nagpur. At Mangaluru, Lady Goschen Hospital of 168 years vintage, which exclusively caters to women for pre and postnatal treatment, ONGC supported for construction of a new wing, which is catering to birth of 500 infants a month.
Under Swachh Bharat initiative, ONGC ensured 33% of the CSR budget as per government directives. Solid waste management project at the holy town of Rameswaram. The Clean Himalaya Initiative across high mountain ranges of Himalaya from Jammu and Kashmir to Arunachal Pradesh. A bio-CNG plant on the bank of River Ganga in Haridwar. 43 community toilets. 33,662 IHHLs. 2,309 tube well and hand pump installed. 121 water ROs. 26 water ATMs. 412 school toilets. To retrieve the mythical River Sarasvati, 10 deep water wells drilled along the paleo channel of ancient River Sarasvati. Installed 36,597 solar streetlights in remote villages, benefiting lakhs of villagers across the country. One of the biggest problem in India is the profession of manual scavenging.
Although laws have been made to stop the practice, due to the lack of a viable technological solution, even today, human scavengers are forced to enter and clean the manholes with their hands. Now, with Bandicoot, a manhole cleaning robot, manual scavenging could be a thing of past. ONGC has procured 9 Bandicoot robots for automatic manhole cleaning across Tamil Nadu and Andhra Pradesh. ONGC, in its endeavor to promote skill development in Jammu and Kashmir, joined hands with Indian Army by funding for the skill development training of youth and girls of Baramulla, resulting in gainful employment of more than 2,000 Kashmiri boys and girls. A skill development institute has been set up by ONGC at Ahmedabad as an initiative of Oil PSUs. A total number of 270 youth trained and gainfully employed.
ONGC has taken up a unique initiative for reviving the Sanskrit language. By developing online content and textbook for all subjects of CBSE courses, the company has supported 970 Ekal Vidyalaya for imparting informal education. 384 smart classes were set up in KV schools. The ONGC Super 30 is an incredible success story of unearthing India's unseen gems through the right training and exposure. The initiative was kickstarted with the ONGC Super 30 program at Sivasagar, Assam. The program provides coaching for engineering entrance exams to the underprivileged students coming from remote and tribal areas of Assam, aspiring to pursue higher education from the country's premier engineering institutes. To date, this center has trained 145 such students and succeeded in fulfilling dreams of 127 aspiring engineers, and the results are getting better with each passing year.
In Northeast, 34,655 sq ft of school infrastructure has been constructed in 22 rural schools. ONGC has identified 20 aspirational districts for all-around development. The journey continues, touching lives far and wide.
Thank you. May I now invite Mr. Vivek Tongaonkar, ED Chief Corporate Finance and Head of Investor Relations, to present the performance of ONGC Group. It may please be noted, the presentation and the corporate brochure will be available for downloading through the QR code available at the stand.
Thank you, Prakash. A very warm welcome to all our investor analyst friends. I will be taking you through our presentation. Madam Chairperson has very well elaborated all the details. I will be providing you with all the granular details that are required. To start off with, this is a disclaimer. We would request all the investors and analysts to kindly note it and go through that disclaimer. This is already required to be done. ONGC, over the years, has been setting new standards, and it has always been an organization which has built upon its past successes. It is the highest market cap among all CPSEs. This year we had the highest revenue and the profits of INR 40,306 crore. This is on standalone basis.
Our net worth is 25% of that of all Maharatna CPSEs. We have a very well diversified board. We have three women directors, our chairperson, director of finance, and we also have one independent director, Ms. Jaitly. As has been brought out, you have already seen that CSR film. We spend a lot, or we have a lot of focus on CSR. We have spent INR 2,736 crore over the period of 5 years. We are the leader in CSR spending among the CPSEs, and on an average, we spend about INR 500 crore annually. This would be the presentation overview.
First, we'll look at the ONGC Group, then the standalone performance, the growth pursuits for the company as well as for the group, how our subsidiaries and JVs have performed, and what we have already mentioned and shown to you, that we are a responsible corporate. We'll come to that. Let us take a look at the ONGC Group. ONGC is India's integrated energy company, and we are present across the whole chain of the E&P. We started off in upstream. We got also into refinery, petchem, value-added products. We are into power, renewable, and also services and others. In upstream, we have got a total. We produce 56 million metric tons of oil and gas equivalent. Refinery, we are 38 million metric tons through MRPL and HPCL.
We have 404.2 million metric tons petrochemical capacity through OMPL, which has now been merged with MRPL and HPCL, et cetera, and OPaL. ONGC's two plants, Hazira and Uran, produce 3 million metric tons of value-added products also. We are in Petronet LNG. OTPC has already been told to monetize our stranded gas in Tripura. We set this plant up, and it is the only gas power plant which is profit-making. We are now moving into renewables also, and we currently have a capacity of 348 megawatts, but we have big dreams. We plan to move up to 10 gigawatts by 2040. We are also into Dahej SEZ, Mangalore SEZ, ONGC TERI Biotech. It does a good very good job as far as pollution control is concerned.
We have a Mangalore-Hassan-Bangalore pipeline, which is handled by the PMHBL, which is under PMHBL. ONGC is into exploration and production, and it focuses on exploration through its basins. These are organizational units, whereas the production is looked after by the assets. Coming to the performance of ONGC Group as such, it has been a resilient performance. The 2P reserves of the ONGC Group is 1,221 million metric tons of oil or oil and gas equivalent. ONGC share is 710, JV is 16 odd, and OVL is 495. OVL is actually the second biggest E&P company, accordingly. We produced 55.72 million metric tons of oil and gas equivalent, which was 68% of India's oil and gas production. The refinery throughput was 29 million metric tons. HPCL was 13.97.
It was a little affected because of the upgradations that it is currently taking place at Mumbai and Vizag refineries. However, MRPL had a stellar performance, and they delivered 15.505 million metric tons of throughput. This all got reflected into our financials. We had revenues of INR 5.31 lakh crore, which is the highest, and a consolidated profit of INR 49,294 crore. This is a snapshot of our consolidated performance. As you can see, our total income increased from previous year's INR 3.69 lakh crore to INR 5.349 lakh crore. The PAT more than doubled from INR 21,360 crore to INR 49,294 crore. Our debt has improved.
It has gone down from 119,000 to 107,000, and that has translated into a debt capitalization improving to 27.56%, and debt to EBITDA improving to 1.2x. Our debt equity ratio on a consolidated basis has come down to 0.38, which is very good. This, as you can see, when we had a peak borrowings of INR 25,593 crore in FY 2018, it has come down to INR 6,397 crore, and we expect it to improve much more. All this is translated into strong credit ratings. For the domestic, we have been rated by all three credit rating agencies as long-term AAA and short-term A1+.
For the international, Moody's has rated us Baa3, and S&P and Fitch have rated us BBB-. Our international ratings are actually constrained because of sovereign ratings, otherwise we are two levels higher up from this thing. Let us have a snapshot of the standalone performance of ONGC and the highlights of this year, 2021-22. As madam has already mentioned, there's a strong focus on exploration and to accelerate the production also, to monetize all these things. In the last year, we added one more basin, Vindhyan Basin, through after the commercial discovery in Hatta-3 well. This makes it after Bengal in 2018, this is another feather in our cap.
We backed 85% of the blocks in OALP round, which translate into about 43,494 sq km. That is a lot of exploration work that we need to do. We notified 4 new discoveries and 6 were monetized, 2 out of which were from the current year. To expedite the production, we need to focus on drilling also, we are happy to note that we have been focusing on drilling. We have been drilling a number of wells. Till last year we were 500+. During this year, FY 2021-22, we were a little bit lesser. This performance of drilling as well as for production was very adversely affected because of Cyclone Tauktae during the first quarter of 2021-22.
Production was 43.387 million metric tons of oil and gas or gas equivalent. We are happy to note that over the last five-year period, in spite of having natural decline, we have been able to maintain our onshore production at 6 million metric tons. That itself is a very commendable task. Normally there's a decline of more 7%-10% annually, so we have arrested that decline also. To take care of our production and to ensure that we continue doing that, the focus has been on projects also, and last year we completed 2 projects of INR 3,807 crores, whereas 6 new projects were approved.
One important development that happened last year was that we got Sagar Samrat positioned at WO-16, and I am sure this would go a long way in increasing the production from WO-16 in this current year. Moving beyond E&P, we have signed partnership with SECI, which is Solar Energy Corporation of India, to develop renewable energy. Looking at the various companies within our group, we are working towards synergy. Towards that, we have already taken steps to ensure that the products of one company can be used in another.
We have signed a naphtha exchange between MRPL and OPaL, and we are looking at similar such synergies, and we are sure that over a period of time, this group would be adding on to its synergies and adding value to the investors and to all the stakeholders. We have also signed with IOC an agreement for gas hydrates. That could be a new future area, upcoming area and could has a lot of potential. It is something what shale was about more than a decade back. Gas is a commodity in focus, and to ensure that we get maximum value out of it, we have taken action on it, and we had taken a new marketing initiative.
We traded our domestic gas on the IGX on 23rd of May, and the response has been terrific. We find that all the consumers are willing and are happy to take offtake gas through IGX. We look at it as a new area for us to work upon. This is the physical performance. Our 2P reserves continue to be very strong, 700+ oil and gas. The production has been 43.39. Yes, it has gone down over the years, but now, as Madam has already mentioned, I think the investors can look forward in the future years to have some good news coming up. The value-added products continue to be 3 million metric tons+.
As we have seen, drilling of wells has been 434. Last year, the financial performance has been very good, partly due to good prices also. However, we got the highest revenue from last year, which is INR 110,000 crore. The PAT, as we have already mentioned, was the highest at INR 40,306 crore. This translated into excellent EPS of 32, and we have rewarded the shareholders through the highest dividend of 210%, which translates to INR 10.50 cumulatively for this previous year. We are not a company that rests on our laurels. We have different growth avenues to pursue. Over the years, you have seen that ONGC has discovered 7 out of 8 producing basins.
As already mentioned, Vindhyan was the latest one in the previous year. We already on track to put more basins on the map during the next 3-4 years. To ensure that we have better production and better results in future, or assure that our sustainability of the company, we are looking at accelerated exploration and acreage expansion. For an E&P company, acreage availability of acreage is a major point which is necessary for it to get better production as such. Currently, we have 161,000 sq km, and we plan to ramp this up to 500,000 sq km by the year 2024-2025. This translates into annual increase of about 100,000 sq km.
The focus will be in Category Two and Category Three basins, and we find that we have had very good results. As you can see earlier on Bengal Basin and as well as, Vindhyan Basins have been discovered. These were not Category One basins. They were lower category basins, but we have been able to get good results out of it. Focus is, yes, on exploration and on Category Two and Category Three. We plan to spend about INR 31,000 crore, which is $4 billion, to intensify our exploration campaign.
Unlike many of the exploration companies abroad, we continue to focus on our exploration, and we believe that we have a duty towards the country also, and we very strongly feel that this would translate later on into very good production and financial numbers. For the short term, as Madam has already mentioned, we are projecting up to the period 2024-25 to increase our oil and gas production to 47.825 million metric tons, which is about 18% growth. I would just draw your attention that this is over and above the natural decline. You are arresting the natural decline as well as going in for growth.
That itself is a very, very big plus, if you consider 7%-10% every year, 2018 would actually translate into much more. How do we ensure this? We have a number of projects under implementation, both in onshore as well as offshore. There are 20 major projects which are more than INR 100 crores. Currently, those projects are about 14 development, 6 infrastructure. We have got aging infrastructure. We have been there in the field for very long. We know that we need to improve it, replace it, which we are already taking action. It is about INR 59,000 crores of rupees, INR 59,000 crores involved in this one. Our cumulative CapEx throughout, including E&P, et cetera, has been INR 4.92 lakh crores.
E&P expenditure only has been INR 1.5 lakh for the past five years. Once these projects are on, we estimate that there would be a lifecycle gain of 85.5 million metric tons. In line with the projects, we also are taking technology initiatives. These initiatives are for technology substitution, upgradation, for integration, collaboration, and partnerships. All these would help us to increase our operational efficiency and maximize our production. Some of the technology initiatives which we have already undertaken and which have given very good results to us is managed pressure drilling and radial drilling, plunger lift, multi-stage hydrofrac, which has already happened, tubing rotator, heavy oil operating, hydraulic pumping, high efficiency chemical, fine bubble technology.
We also, for our interpretation and processing of our data, we are looking at artificial intelligence also. To improve our seismic studies, we are looking at ocean bottom node surveys, which have given us very good results, and we plan to undertake those in a big way in areas which are very difficult. As we mentioned that at the highest level, there is an outreach to all the international E&P, many of the international E&P companies, those who have been successful. These levels have happened at the level, at the chairman, managing director level, and it has translated into MOUs with a few companies, very big companies, this is only a representative list, it's much more, but we have signed MOUs with ExxonMobil, Saudi Aramco, Equinor. These are for E&P as well as for renewables.
We are already moving ahead on these MOUs, and there is data sharing under progress. We hope and we expect that these should translate into more firm agreement hits. Although ONGC has been doing very good, what about our subsidiaries and JVs? Let's take a look at them. ONGC Videsh is our 100% subsidiary. It's like part of the family only. They are present across 15 countries and 35 projects. 14 are exploratory projects, 4 developmental, 14 producing, 3 pipelines, and these are spread all across the globe. The performance has been 2P reserves is 495 for this previous year. Oil and gas production was 12.33 million metric tons of oil. Partly it was affected because of OPEC+ restrictions on production that will help there.
They had a turnover of INR 17,322 crore, which was the highest ever. Their PAT was INR 1,589 crore. Highlights in the exploratory block CPO-5 at Colombia, we drilled 11 exploratory wells. Eight of them were hydrocarbon-bearing, five of them commercially producing, and we ended the year with 21,000 barrels of oil per day, which translates into 1 million metric tons of oil annually. We also hope that, or we expect better results over year further on. In Brazil BM-SEAL-4, there has been a declaration of commerciality and along with Petrobras, we are working on the Field Development Plan.
In Lower Zakum, UAE, for gas handling capacity augmentation, we are laying a new pipeline, which will help improve the production from four to 450,000 barrels per day in 2025 and 500,000 barrels in 2028. OVL has been making good use of its excellent financial performance. They have repaid $716 million of their loans. They have also taken action to reduce the interest on about $1.2 billion of loan, which is outstanding, through reduced borrowing cost or by refinancing the existing loans. Another major subsidiary is Hindustan Petroleum Corporation Limited. It's a Marathwada company. Very good results. They are focused on the consumers, on the retail. They have set up 20,025 retail outlets.
They are number one marketer for lube oil, number two for LPG marketer in India. They commissioned 1,391 retail outlets, 2 new LPG plants, 51 LPG distributorship. They're also moving into new areas of CGD. They got 3 new geographical areas in the last year, and they are therefore present in 23 geographical areas. There's a lot of emphasis from HPCL on product and development. Last year, they got 33 number of patents. Their throughput was 13.97, as I said, affected because of some upgradation works going on in both the refineries. The GRM was $7.19 per barrel. Gross sales were very high, 3,72,000 barrels. However, PAT was INR 6,383.
Commendable, but did not cross the previous year's INR 10,000 crore mark. Our very own MRPL, this is one company which we are very proud about. We are very happy about it, being in our family. They are also now looking at targeting the consumers. They have set up 14 new retail outlets. Now they have 35 retail outlets in operation as such. Last year, they had also upgraded their refinery. They have built in that BS-VI facilities and desalination plant got commissioned. We expect that in the future, the plant operation should be very good, and they would keep on the excellent performance as such.
Their performance, as is already reflected in the throughput, it has increased to 15.05 million metric tons, which translated into $77.2 per barrel GRM, highest ever sales of 86,000, and they turned around into profit again with INR 2,958 crore of profit. That has been a wonderful performance by Mr. Venkatesh and his team. OMPL was a petrochemical, is a petrochemical plant which we have. This was a separate company. However, ONGC, along with MRPL, took the decision to amalgamate it with MRPL. This appointed date of the amalgamation is first April 2021. This amalgamation is likely to bring a lot of synergy between the two plants as such.
We expect that both the companies now in this amalgamated form will do much better. I think at the base, it gives them a lot of product variability as such, and inputs also they can vary. We expect this company to do good in future. OPaL is our standalone petrochem plant. Over the years, it has been improving its performance. Its capacity utilization has gone up. Today, in the last year, they were 95%, which is very good for a petrochemical plant, and we expect them to do much better as the years go by, as the plant has already stabilized, its products are already well-received in the market. They sold 1.82 million metric tons of polymers and chemicals.
Their revenue from operations last year was INR 16,048 crores, and the EBITDA was INR 2,561 crores. The PAT, the loss, has been reducing, and we hope that if the performance continues like this, we should have it in the positive in the near future. ONGC Tripura Power Company Limited has already produced 4.1 billion units of power. It is in the Northeast, doing very well. Last year, they had a shutdown, plant shutdown, as well as some maintenance works, so the plant availability factor was 65%, but it is up and running now. They had a revenue of INR 1,200 crores and a PAT of INR 107 crores. PMHBL pipeline, which is from Mangalore to Bangalore, this is very useful for HPCL, MRPL also.
They had a revenue of INR 128 crores with a PAT of INR 60 crores. Indradhanush Gas Grid is a new company which has come up in the Northeast to connect all the states through a gas grid. This would help all the fields, small fields, big fields of ONGC also, and other operators also, and monetize their gas as such. It is planned to link up with the Pradhan Mantri Urja Ganga, so that the gas is available or freely movable from Northeast to India and from this part of India to Northeast and vice versa. As madam said that beyond doing productions and refining, et cetera, we are also a responsible corporate committed to environment, society, and governance. We already have clean development mechanism projects also.
OTPC also has a number of certified emission reductions as such. Our renewable projects are already underway. As we mentioned, that we are looking at renewables, and we plan to move into it, shortly in the near future also. We are already there, but, in a bigger way. Social, we are one of the first companies which had issued the separate CSR guidelines and which were the base for the DPE guidelines as well as the Companies Act 2013. Our activities were aligned with the geographical areas where we work, and this has continued. We focus, continue to focus on healthcare, education, environment, women empowerment, and, heritage preservation. These are the major heads. We do a lot more than that. Our average spend, as I've already mentioned, was INR 500 crore plus every year.
As far as governance is concerned, we are the first signatory in India of the Integrity Pact. This was long time back, but yes, we are proud of it. The board is also focused on overall organizational practice, awareness, creation, and monitoring of this thing of governance practices. We have a strong and effective whistleblower mechanism, dedicated vigilance department headed by CVO who was the rank of functional director. CSR, we have already mentioned all these things. Beyond CSR, beyond this thing, we also support sports in a big way. You would be happy to note that ONGC sports person have won 60 national awards till date. HS Prannoy was part of that Indian badminton team which won the Thomas Cup. It is not only work, it is also play that we do.
With that, we come to our national and international recognitions. We're happy to note that we have been winning and continue to win a number of recognitions, both internationally and nationally. We have been certified as a great place to work for the third year into 2022. With that, we come to our end of our presentation, and a big thank you to you all. Thank you.
Thank you, sir, for a detailed presentation for ONGC and ONGC group of companies. With the permission of the Chair, the house is now open for interaction. All the participants who wish to ask a question, please introduce yourself along with the company you are representing. You can raise your hand so that the person will reach to you.
Hi, good evening. This is Vishnu from Spark Capital. I think one of the most important questions everybody has in their mind is the under-recovery that is happening on the auto fuel side and windfall tax the government is talking about. Firstly, wanted to understand your sense, forgetting the windfall tax, will the dividend payout be large enough this year so that government will not be in a position to pay, charge any taxes or how should we, as investors, think about it?
Thank you, Vishnu. I think voicing what is at the top of everyone's mind is the best thing to begin the discussions with. As far as our contribution towards dividend, by way of dividend, you already know that we have declared
A dividend which is coming to around INR 13,210 crores out of a profit of INR 40,000 crores. That is what is there. When it comes to the windfall kind of, the term you have used, I would just like to share with all who are present here that for us, past two years were years when we were having ultra-low returns on our oil as well as gas products, I would say. While oil was impacted by the volatility in the international market, gas being a formula-based product was also impacted. The return we were getting was much lower than the cost of production.
That's why I would like to say that there should not be a tax of this kind on a business which is taking off, which is picking up now. Because the ultimate objective with which ONGC works, not only as a business entity, as a public sector also, is towards providing more and more, contributing more and more towards the crude oil and gas. 85% of the crude oil is presently coming from other than the country, and same way, 50% of the gas the country depends on other sources. Now is the time to invest in our activities, and that's why windfall tax is something which we can't imagine being imposed at this stage. That's what I would like to convey on this.
If anything further is to be added, Director Finance is the best person to talk about it.
Thank you, ma'am. I just want to add what ma'am is saying. When we are talking about the dividends, we are paying something around, you can say 42% of the PAT, because this INR 40,000 profitability that we have got, so in that something around 8,000 to 8,300 is just towards our deferred tax you know asset which has been adjusted, and that is just notional. That is not cash giving. This has happened because of the alternative tax regime that we have you know adopted in the last third quarter.
Taking that thing into account, what we feel is that when we had discussed at our board meeting also, everything has been talked about and this was the best thing that we could have done. For the timing, what we feel is that this is the largest, you can say, the dividend payout that we have given till date, and that would definitely, you know, justify, you know, our call on the dividend. I think the concern of the investors, if you see from this point of view, that is well taken. Thank you.
Any CapEx increase that we'll do this year, the run rate will be around INR 30,000 on CapEx.
On the CapEx front, the plans are both on the exploration as well as the production, creating better production development projects and schemes is concerned. While we have already come up with the number of INR 31,000 crore towards exploration in the coming three years, on the other area as well, it's about like for this year we have around INR 20,000 crore worth of projects almost about to be approved by the board because they are going to be taken up to the board. This is the way every year, last five years, we have invested one lakh fifty thousand crores of CapEx on CapEx. The trend is likely to be almost similar, a little higher because of the kind of exploration activities we are taking up.
With us going aggressive on exploration, the developmental activities after that would also pick up. That's what I feel. On exploration, I would request our Director Exploration to touch a little, because there's a lot that he has planned for the coming three years, and he's the best person to talk about it.
Thank you, ma'am. As stated, we have already disclosed our short-term action plan for exploration, which is a spend of about INR 31,000 crores. These are directed towards increasing on data acquisition, inducting new technologies, opening new basins, and increasing outgo on drilling of number of tough and challenging wells. That is the way. In the near future, we are going to open another 5 new basins within 2- to 3-year period. Acreages have already been acquired. Aggressive acreage acquisition plan is already on the way, which is well facilitated by government policy. If I just can give you some numbers, the 96,000 sq km area in offshore, which used to be a kind of no-go, where the activities were not permitted on account of Ministry of Defense or Space or Naval and other things.
Government has facilitated, and 96,000 sq km area has been freed. Out of that, ONGC is going to acquire and submit an expression of interest for acquisition of about 45,000 within this year. You can think of the time and speed through which ONGC is moving ahead on the exploration. As stated by CMD ma'am, after exploration, obviously, a multi-fold development activities start, and so the numbers can be seen in a few year period to go and increase aggressively in that front also.
To conclude, just a point. Would it be INR 30,000-odd crore of CapEx that will continue for the next two years at least? I mean, would put everything together, or will this number be much higher?
Higher.
Yeah. It would be higher, in fact. Total CapEx would be higher, I would say. Vishnu?
Any number that you can, possibly give for the next two years, what would that total number be?
Year on year, you are meaning to say?
Correct.
But, uh-
23, if you can give a number for the next year as well?
At least for next 5 years, I would say it would be in the range of INR 30,000 crore-INR 32,000 crore. That offshore, which is normally into the major developmental projects and schemes could add a little to this.
As chairperson has mentioned and thereafter director exploration has mentioned, a lot of emphasis on exploratory activities. For sure, these exploratory activities will give a lot of opportunities to offshore and onshore areas for developmental activities. Past 2 years, the oil and gas prices, they were pretty low, and they were posing certain, you know, pressure on developmental activities in the form of their viability, et cetera. Though the pandemic was there, but ONGC had never kept itself constrained because of those pandemic issues, and our development projects continued. You just saw in the presentation, we approved also certain projects, even in 2021, 2022, and certain projects were approved in 2021 as well. With the ease of or the betterment of oil and gas prices, the schemes which were becoming unviable are now more viable.
Many schemes, in fact, we have been conceptualizing and are on anvil to be brought to board for approval and for their consideration and approval. Couple of schemes have already been submitted. With this, as chairperson has mentioned, the CapEx, we intend to increase and that may be more the kind of numbers she has mentioned, I think, definitely would be there. That's what I would like to add to this.
Just one final one from me. On OVL, if you could just tell us, what is the impact on the Russian crude? Any restriction on production, any impact on pricing, and also the flow of money from there or repayment of debt? I know multiple questions. If you could answer all of this. Thank you.
One person can answer all these questions. We have MD OVL with us, Mr. Alok Gupta. I request him to talk on this.
A very good evening. I think because of the unfortunate situation in Russia and the certain sanctions which have entailed from the Occidental side, there are 2-3 impacts. I think coming straight to your question, in fact. In terms of production, there are three joint ventures. One is Imperial, the other is Vankorneft, the third is Sakhalin. Two of the joint ventures are working normally in terms of production.
There are temporary disruptions because of the force majeure taken in the case of Sakhalin, and that is because of the grandstanding or, let's say, high moral stand taken, not exactly in the terms of energy sanctions which have been imposed, but high moral grounds taken by the global P&I club in terms of not extending what we call as protection and indemnity cover for the ice class, which are ice class vessels. Because of which, we are not able to move crude from our De-Kastri terminal in Sakhalin to the transfer point, which is in South Korea. This temporary disruption is going to be there for a couple of months, because of which we are having suppressed production from Sakhalin. This situation is going to be normalized over the next two, three weeks as we are finding out the alternative measures.
The second point which you had mentioned, I think you had asked about the movement of money. In terms of all our dividends, let me be very happy to share with you, we received all our money as was due till March this year. The next money that will be due from Vankorneft in the form of dividends will be sometime in July.
We are working along with the partners as to how that money will flow in July when it will become due. What was your third question?
Prices.
Sorry, prices.
Prices.
I think that's an open-ended, very open-ended question. The Russian crude is selling at a discount. We are not able to sell crude from Sakhalin because of the current situation in terms of not being able to move the crude out. However, the crude from Vankorneft and Imperial Energy, which is flowing through the pipelines to the neighboring countries, we are realizing our prices all right. There is some discounts which are happening for the portions of the crude which are getting exported.
Hello.
Yeah.
Ma'am, this is Srijan Sinha from Future Generali India Life Insurance. Ma'am, my question is, in all likelihood, ONGC is going to generate a lot of cash flow this year. In fact, free cash flow despite the elevated level of CapEx that you are talking about. This, along with the suppressed stock price, has management given any thought to buyback of equity shares?
Buyback of share was very well discussed in the board meeting which we had on 28th. Director Finance will talk about it, touch on it a little, and will clarify.
If you see the buyback as such, because we had discussed about the DIPAM guidelines also in our board meeting. The buyback option is not triggering as such. But definitely, you know, the last buyback that had happened was sometime in 2018 or so. If you see that our, you know, our prices the time when we had, you know, the old times when ONGC had first issued the shares, it has the prices, the valuation of that has gone 32 times now. So much of, you know, you can say in between the bonus shares, then the split of the shares, then of course that two or three times the bonus shares that have been issued.
I don't think that this will be, you know, the time when we think of the buyback, because we have our own CapEx plans and then we have our, you can say, the subsidiaries also. Our OPaL is there, so that also we have to look after. We have to see definitely that whether we can. Because, of course, right now there is nothing, no communication and the government is very supportive right now. They also want that the exploration acreages should increase and we should do aggressive work programs.
As rightly pointed out by our Director of Exploration, around 96,000 sq km of area which was under the no-go area, that has come within our ambit and now we have to aggressively, you know, go for that, exploring that area. That will definitely require a capital-intensive thing. Buyback has not triggered, and we will not definitely go for that also. Thank you.
Good evening. This is Amit Rustagi from UBS. I have a few questions. First is relating to KG Basin. Now with the end of pandemic and situation normalizing, do you have any targets for monetization for KG Basin when we can see our oil and gas output from this field? That is my first question. I'll come for later.
Okay. The first question, I think the best person to talk about is Director Offshore, who's been closely following and working on making the KG 98/2 project take off very effectively.
Hi, Amit.
Yes.
KG 98/2, the project which is under progress for monetization of KG Basin.
Mm-hmm.
It has got many discoveries, some 19 discoveries to be monetized. One of the discovery, which has been shown in the presentation as well, has been fully monetized, and that contains gas. In fact, we are in a process of ramping up gas production from that discovery right now. With regard to the other discoveries, those are to be monetized through the facilities which we are creating, and we have already submitted an RFDP to DGH for their consideration. Definitely, we intend to commence the oil production in the month of December or January, I would say, keeping a little margin in hand. Subsequently, the gas will be enhanced from the other gas discoveries. That's the plan as of now.
Sir, what could be the output for maybe FY 2024-2025 for both oil and gas from KG Basin?
See, Amit, the profiles which have been generated, the peak oil production from this 98/2 area is expected to be of the order of 45,000 barrels of oil per day, and the peak gas rate is expected to be 12 million cubic meters per day. That's the kind of profiles which have been generated.
Okay. I have one question for OVL. Last year, we have seen increase in revenue by almost 45%, while our profitability has gone down for OVL. Could you please explain the reasons, and now with the higher oil and gas prices in the current financial year, what is the kind of revenue and profitability we are targeting from OVL?
I think I have my OSD Finance, but I'll just answer the conceptual part of it. Since we are an international business, and whenever we see the geopolitical developments and their impact in terms of flow of revenues, just as we mentioned about Sakhalin, each cargo not getting lifted. We normally lift 22 cargos in a year. Each cargo not getting lifted impacts us by $55 million. We make provisioning for certain impairments in our profitability, because of which you would see less profits. This year, almost INR 2,100 crore net we have written off in terms of impairments in our profits, which otherwise would have been INR 3,700 crores. It is a book adjustments that we do to be very conservative and pragmatic in our approach of fiscal management.
I think I'll ask my OSD Finance to add something if he has to say.
Sir, you have already explained in detail. INR 2,100 crore was the impairment. Because of this, the profitability has come down to INR 1,575 crore. Otherwise, it would have been INR 3,600 crore. This impairment we do on year-on-year basis. We test the carrying value of our investment with reference to the pricing, projected pricing, projected discounting rate, risk profile, and based on that, we do it. It is a reversible provision, and every year we test. As and when the situation improves, we reverse it also. This is the impact of impairment this year. Thank you.
Mr. Anupam Agarwal is tipped to be Director Finance OVL, so that's why he speaks with conviction on that.
Ma'am, I have next question relating to MRPL, that now OMPL is already in fold of MRPL, so what kind of utilization rates we can see at OMPL and the profitability level? What are the synergies, if we can quantify, for transfer of naphtha between MRPL to OMPL?
Perfect. A wonderful question, and I am sure MD MRPL, Mr. M. Venkatesh, is going to be happy giving a response to that.
Good evening, respected CMD and my parent company directors. The synergy what we have been talking about has started to flow from crude to petchem, rather than naphtha to petchem. Very difficult to explain in terms of numbers as to what happens between naphtha to petchem or crude to petchem. The opportunity whether to produce paraxylene or sell reformate as an intermediate profitable margins have been equally explored and we have derived cash profits, I should say, from an integrated margin management approach. While we are hesitant to talk about a standalone basis any longer, the reformate mode, what we call as an intermediate feedstock to paraxylene, is yielding more margins than the paraxylene at the current market situations.
The market is finding ever highest cracks on MS 97 or, for that matter, gasoline. We are looking at it on a daily basis as to what should be done, whether to produce paraxylene or reformate, and that's the kind of synergy which the petchem integrated margins derive for us. Just for the sake of understanding, the April and the May margins have been ever highest in terms of cracks in the gasoline or the 97 RON market internationally. Thank you.
Thank you. Thank you, ma'am, for all the answers. Thank you.
Hi. Good evening. This is Nitin from YES Securities. My question is related to your exploration program. You indicated that there is a renewed aggression in exploration program. What is the motivation for that renewed aggression at this moment? One is that. Second, is your exploration program contingent upon the levels of crude oil price? Because in the past four, five years, if we keep this year aside, the prices are pretty tepid. If the prices are tepid, then that would impact your cash flows. Like, you know, in those circumstances, would such an aggressive exploration program hold on, or you would rethink that? Thank you.
Before I pass on the mic to Director Exploration, I would like to share that we have been bidding very aggressively in the past few OALP rounds because we feel that definitely investing in exploration is the future for us, because that is how we arrive at later developmental projects. While we are talking about it, I would like Director Exploration to actually talk about what is our strategy when we are talking about accelerating our exploration plans and actions.
The question that you have asked has three, four facets to it. Number one, what drives exploration in India? The context is known to all. Energy demand is increasing at a rapid pace, 3%-4% CAGR. The oil and gas, despite all environmental considerations and other renewables coming into play, is going to play a major role. Third, the total prognosticated resources of 42.8 billion tons, and the window of opportunity from the discovered and undiscovered arena, third. Fourth, the global comparisons in reference to what attracts as an exploration opportunity globally and what similarities India does have in reference to that. If you look at the data and the analysis by number of energy pundits, the kind of exploration that is happening in the globe, 75% of that by all global measures is revisiting mature basins.
The reason being strike rate is high, discoveries are little small, but consolidation goes on a rapid pace. Second one, the deep water is again emerging because of the increased oil and gas prices. The third one is, in reference to the Indian context, lot of unexplored, undiscovered basins. That is also taken up by our government in a very faster pace, and government has entrusted ONGC to continue acquiring data in those unexplored and unappraised area at a faster pace. You are probably aware of the National Seismic Program, which was carried out in onland areas. 42,009 kilometer data was acquired. Those data, after processing, has been available for interpretations, many companies have taken, and ONGC included.
Identified opportunities on that basis, and on the strength of that, we are saying that we are going to open 4-5 new basins within a coming 2-3-year period. I believe, many positives and many things are available which would suggest that this is the right time to invest in exploration to create a value for the future. Just to share with that how the value is generated, if you look at it, somewhere around 1995, number may be checked on, later also, we had a reserve base of about 1,144 MMTOE. Since then, we have produced till date 1,175 MMTOE, and still we have about 1,400 MMTOE. Which assures our future to increase and move on to the production, realization journey with design projects which will be CapEx intensive.
They will be in ultra-deep water. They will be also. One more point I would like to share. The motivation also comes in through our outreach program, wherein the global majors have shown interest, and one of the MOUs with ExxonMobil is progressing very well. Number of technical workshops have taken place, and very soon, ONGC would be sharing another good news in reference to that. Thank you.
I'll just complete this by adding that, the drive comes from the growing demand. Our economy needs more and more oil and gas, and that is why we are driven to make sure that we make all possible efforts to first accrete reserves and then tap them.
Thank you, ma'am, for that answer. Now the second part, I mean, is your exploration program contingent on a crude price level, or it is not? If there is a level, then what is that level?
It is not contingent on crude price level. Otherwise, five years back, we would not have bid so aggressively. I think if Director Exploration would want to add a little, he can talk.
For continuing with the exploration or acquiring any of the acreages or planning any new exploration venture, ONGC has a robust policy of testing it for its economic viability, and that takes care of the fluctuation in the market in reference to the prices. Right now we are working on with that. To answer to your question, the finding cost for the ONGC has been the smallest. It is of the order of about only $5 per barrel. The price fluctuation as such is not going to impact our exploration plan for ONGC in the long run. Thank you.
Hi. Yogesh here from Axis Capital. Couple of question. First question on your gas production increase. How much it will come from the side of nominated blocks and how much will be from the deepwater gas fields? Could you please give us idea about that first?
I think Director Offshore could talk on the offshore part, and then Director Onshore can add.
As you're asking how much from nominated and how much from deepwater or other regime gas, I believe you want to know. See, currently it is around 98% from nomination. As I just mentioned that, the profile of 98 by 2 is 12 million. If when we reach to that level, accordingly, the percentage of the other regime gas is going to increase substantially. If we go with the present level of gas production, which is of the order of 54-55 million, and we add to it, some, say, because there'll be some natural decline and some addition and all, if we look at it, 70 million or so, and then 65 million or so, and then we say 12-14 million will be kind of other regime gas.
That's what I expect as of now.
Sir, again, on the 12 MMSY side, from KG-D 98/2, when do you expect that 12 MMSY? I mean the currently how, I think we might be producing 1 or 2 MMSY from that KG-D 98/2. How the ramp-up you are expecting? Along with that, we don't expect any kind of gas production from the nominated field. Is that the case for the future?
No. Actually, currently, your guess is correct. We are somewhere in between 1-2. I mean, with effect from December, January, the oil production would start with some of associated gas. As per the current plan, we intend to complete the project by, say, May 2023. Thereafter, the peak should come somewhere in 2023-2024. Now, coming to nominated site. Yes, in Western Offshore also, in the nominated acreages, we are coming out with future development projects. In Tapti Daman area, we expect to increase gas substantially, and some gas is expected in south of the Western Offshore. Currently, we are working in Mumbai High and all.
In both the areas, in nomination, nominated block as well as in the other regime, be it NELP or HELP or, we expect to add to gas.
Okay. The second question regarding the windfall tax again. Have we seen any kind of windfall tax historically in Indian history? I mean under a law or under parliamentary system, is there any provision? I mean that should be the first talk, and then we can come to the whether there will be any windfall tax or not.
As far as my memory goes, I have not seen it, but Director Finance, who has been associated with different segments of our industry like right from DGH to the ministry could add a little there. Have you seen something like this?
No, I think, as far as the history goes, there has not been any situation where this windfall tax, like, kind of a situation has been envisaged, in spite of the fact that in some countries at earlier stages also like we have in U.K., earlier times also, so they had some kind of a Petroleum Resource Rent Tax. Our country, because they were always in the favor of, you know, having a favorable regime for the on the world scale because they want to, you know, they want to attract this destination for the foreign investors, so they that kind of a situation will not arise.
And in-
May not arise.
Yeah. Thanks. The last one on the windfall tax again. In a hypothetical case, suppose the windfall tax comes. Will it be only applicable for the government companies or the private companies, those who are also in the exploration side?
This is a very speculative question.
Okay.
I think we will refrain from responding to it.
Okay. Thank you.
There's no way that.
Okay.
We can respond to it.
Thanks. Thanks a lot, ma'am.
Thank you. Thank you, Yogesh.
Thanks.
Hi, good evening. This is Aksh from Future Generali. My question is pertaining to APM gas price realization. As we understand, this price is due for revision in the month of October, and it's expected to go up to over $10 per MMBTU. I just want you to understand what are your views on whether or not there will be a cap introduced on this price, or there'll be a change in underlying formula, given the fact that the current realization of about $6 per MMBTU is also quite decent.
Aksh, what I would like to say is that, as I've already mentioned, two years back, in fact, till the last financial year, we have been getting paid much less than the cost that we were investing in producing gas. Now there's no reason for a cap to come in place. It was thought of, it was being speculated towards end of March also that come first April, there could be some kind of cap. Nothing happened. There's no reason. In fact, we are heading towards a free gas pricing regime. That is what was given to understand two years back when the PPAC, which is working on the gas pricing formula based fixation of gas price. They have already recommended, and we are looking at that to come in place in the times to come, I would say.
No question of a cap there, as far as we understand and we look at it, and it should not be there too.
Yes, just a comment.
Yes. We are head, like you can please add.
I just want to add, because our vision, the country's vision is to increase the gas from the existing ratio of 6% to 15% in the times to come, in fact, till 2030. In that context, we have already suffered losses on account of the gas, as was pointed out in our presentation also. Whereas our cost of production of gas is more than $3.5 per million BTU. If we take into account the rate of return also, it comes to more than $4.2 or $4.5. In the past, we have suffered a lot for the last almost two years now.
Now this is the time and, in case the government may not think of, you can say, changing the formula that we are not expecting at all, because in every forum, we have been talking about increasing the gas production. With the low formulas, with the low prices, the production cannot be increased. I think this situation will not come.
Hi, this is Janesh from Quantum Advisors. I have a question on OVL, especially some of the news reports been quoting that there can be an opportunity offered to India for investing in some of these oil and gas fields in Russia, maybe at a discounted valuation. How is the management thinking about that, whether they will be going or going ahead or not? Second, on a more broader base question is on the capital allocation, especially in the OVL side, we have had significant amount of investments being done with various other blocks across the globe. However, some have benefited and many of them in last five years are yet to generate a superior or an adequate return into it.
Going ahead, how is the capital investment plans for OVL will be on the overseas side? Because that's a significant chunk of a capital which has already been there. Is there kind of a policy which has been framed on that side of the business? Thank you.
Please go ahead, Alok.
See, let me answer it like this. Being an acquisition company, we look across assets all across the globe. As we speak, we are looking at 3-4 major geographies where there are significantly important and valuable opportunities available to us. For the sake of business propriety and to not lose the edge in terms of competing for those opportunities, I can't be very specific which country we are looking what. But in general, there are 3-4 geographies where we are looking for capital investments, being an acquisition company. To assure you, all investments that we make have to test the thresholds of techno-economics, which are made by a series of committees within the company at the board level of OVL, at the board level of ONGC, and also in the government through committee of secretaries and CCA.
We would not be making any investments which do not match the techno-economic thresholds as well as meet the regulatory or sanction requirement anywhere. To answer, I have to give you a broad-based answer. I can't be specific about geography or projects, and that's because of the edge you tend to lose when you talk about investments in it. Have you ever heard of any company, just to answer your question, a counter question is, do you know which project in Russia recently has been successfully bid by country from which continent? I'm not asking the country, continent also. You won't know. Because these are so proprietary things which nobody would like to discuss in open forum. Please pardon me for that. I have given you broad-based answer. Now, second question was about your capital investments, right?
Currently, you are right that, in last four, five years, couple of investments, particularly in the case of Mozambique, we have some setbacks in terms of the unfortunate security situation which got developed in the Cabo Delgado province in the northern part of Mozambique. The kind of movement in the project which we would have loved to see has not happened. There has been some deferment in terms of realization of first LNG cargo from that project. The situation is getting fast normalized in Mozambique, and we hope to see by the end of this year, investments and activities getting back to normal. This project is. Look, any oil industry investment is not a short-term one, two, three, four, five-year investments.
Mozambique project, when we talk about, we are talking about project which is going to last till 2060, 2065. We are looking at a timeframe of 40, 50 years. This can deliver LNG to this country in terms of couple of trains, in terms of what our share is. There is 30% of Government of India's investment through three PSUs in that country. It's a very vital project which can deliver tremendous amount of value in this country. There are unfortunate developments which are, I think as you would see, there is a, what we call as mechanical engineers, the entropy of the universe is increasing. As you see, there is a heightening global geopolitical situation all around, not only in Mozambique or Russia, even if you see around in neighborhood, there is trouble. You see south of India, Sri Lanka, some problems.
East of India, west of India, anywhere. These problems are vying to settle down, and all our investments are measured against the long term, not for short-term, two, three years period, where such blips will happen. We are continue with our pace. We have fortune of being a part of ONGC group, which has always been on our support in terms of investments whenever they are required, and they meet the techno-economic threshold. I think that's the take I would have. Ma'am, would you want to add anything on that?
I think you've answered it appropriately.
Thank you very much.
There isn't anything else.
Yeah. Hi. Just again, a little broader question. The kind of CapEx which we talked about for next three years and time to come in ONGC and also in some of our subsidiaries or a sister concern, could you give us some flavor that what we are planning to do in exploration in terms of the amount or area cover? What we did in last few years versus what we are planning in just three years? Is there any cost element in the sense that what is the break-even point of crude or gas which we are thinking, which will be like a cost break even, and what we have thought in our calculation to get some reasonable rate of return?
Just being an investor/shareholder, want to understand that how we are thinking with next 5 or 10-year time horizon. I do understand that there is a volatility in short term, but from a 10, 15-year time horizon, what will be our breakeven and how do we see these numbers? Thanks.
May I know your name?
Yeah. I'm Chetan Shah from Jeet Capital.
Right. Chetan
Thank you, ma'am.
Yes. I think, again, the exploration is the best person to talk and he'll add wherever required.
I think, if I can give some pointers, which would address some of the concern. During the last 2-3-year period, in terms of adapting to new processes, which we call as a play-based approach, right up to this year, if we look at the number of the wells drilled, conclusively tested, and found to be of commercial nature, our success ratio comes to about 48%, which is well within those ranges by any player anywhere in the globe. Number one. Number two, as I have already stated, the cost of finding oil, I am not including once you say exploration per se. So you have to find out what you spent, how much of oil and gas you generated, and what is the value of that oil and gas. That is the lowest, which is $5 per barrel, roughly.
The volatility in the market comes into play when you are trying to develop those projects. Like it was answered in the case of OVL projects, similar mechanism of testing any kind of development project passes through number of tests and tests at economic viability. Now, the question was related to long-term breakeven, what you are looking at it. If I can say, I think I can say our cost of development or cost of production ranges somewhere around $42. It ranges in that range. With the improvement in the processes by bringing in efficient systems through digitization, through use of AI, if I can give you just one example. One AI-based solution for data interpretation, seismic data interpretation, has been inducted in ONGC, which we call as Seismetics.
Let us say 1 TB of data kind of project, if somebody was interpreting on earlier machines without this AI facility, they were taking about 6 months. Now, if we do the interpretation by deploying Seismetics, it takes only about one month. The cost cutting due to systemic efficiency is 1 to 6 times. This also addresses some of the uncertainties which are going to emerge in future. Similarly, in case of development aspects, in case of defining the reservoir properties and bringing in the forecast, additional AI-based solutions are emerging, which are physics-based, and these are tested at global scale and even in academics at Stanford University. Those processes have been commercialized, and they are available as a solution in industry, and one such solution is Techios. That also has been inducted by our technology induction board, which inducts new technologies.
These are some of the examples which gives us an edge, which keeps our cost and other things in control in reference to the global average of the long term. I don't think there is any concern. Whenever there is a volatility or wherever there is an impact, all those necessary precautions are taken care, and sometimes that leads into going little slow, and sometimes you go little aggressive. Last two years, it was probably a little slow, and we are trying to compensate what we could not do in the last two years. Thereby, our CapEx outflow is going to increase within the same period.
One more thing is, the timeframe for implementing those within those, whether it is a revenue share contract or whether this is a monetization under discovery small fields, the time spent has decreased from the earlier. Now, you have to do the same amount of job probably within a less time. That probably answers all of your concerns. Thank you.
I think we can take the last question for the evening.
I think we should thank everyone.
Yeah. It's always a pleasure to interact with the investors and analysts. Thank you for such a lively interaction. It's indeed my privilege to propose a vote of thanks on this occasion. I, on behalf of ONGC and the entire team, let me call it entire fraternity, and on my own behalf, extend a very hearty vote of thanks to each one present here from the investor community, including the research analysts representing various institutional investors and fund houses for gracing the occasion and participating in ONGC's investor meet this evening. I would like to express our sincere thanks to CMD Madam for giving an excellent coverage on the pursuits being undertaken by ONGC in the years to follow and also to share the business performance of ONGC for the year 2022.
I would also like to extend our sincere thanks to other dignitaries on the dais and off the dais for sparing their valuable and precious time, interaction with the investors and sharing their views this evening. Finally, I would like to take this opportunity to place on record our hearty thanks to the entire team of corporate communications and regional office Mumbai and also our corporate planning team for well-coordinated arrangement in the organization of this event. Thank you all once again. I would now request all of you may kindly join us for the dinner. Thank you.