of that you have. Amidst the challenging economic conditions and business environment, let me inform that ONGC has given another stellar performance with its highest ever standalone PBT of INR 50,395 crore, and PAT of INR 38,829 crore, one of the highest amongst CPSEs in India. This would have been even higher, but we reviewed the disputed sale tax and GST on royalty and made a provision of INR 12,107 crore during quarter four of financial year 2023. Notwithstanding that, we continue to pursue our legal recourse for these disputed amounts, and we are confident about the merits of our stand on the issue.
In spite of this, we continue to remain one of the highest dividend-paying companies of the country, with its highest ever dividend of 225%, that is INR 11.25 per share, and total amount to INR 14,153 crores for the financial year 2023. We are well poised to consolidate from here and grow on a sustainable path, meeting the increasing energy needs of the nation, and in the process, accreting value for all our stakeholders. The suggestions and ideas that we receive from you always motivate us to strive for excellence. We look forward to have a great interactive session.
With these words, may I request our respected Chairman and CEO, ONGC Group, Sri Arun Kumar Singh Ji, to share with you his assessment of the last year's performance and his perspective on some of the emerging issues of the industry. Thank you very much.
Thank you. Thank you, Pamela Ji. Good evening. This good evening is on behalf of ONGC Group of Companies, including ONGC, and also our esteemed colleagues, ladies, and gentlemen, all the analysts, all the, you know, finance fraternity, people who really matter a lot to us. Good evening to all of you. Before I start, the context is that you know that we have had a result announcement, annual PNL announcement last Friday, that's how we are here. This is also an opportunity to be, you know, to explain you the prospects of the company, country, because without country context, we can't come to company context. First and foremost, as you know, Indian story is kicking very quickly on demographics, digitalization, then now decarbonization, also partly deglobalization. All four are giving strong tailwind.
It may be here and there are some dips, but long-term story of our country is great, highest than ever. In that context, as you know, the energy demand of our country, because our per capita energy demand is still far below the international average. Energy demand of country will keep growing, massively, more than any sector, because more the, more the, you know, growth, more the need for mobility, and more the need for mobility and industry, more the, you know, need for energy. Now, unlike the rest of the world, our story is different because at least for 20-25 years, our fossil fuel story is going to remain robust.
At the same time, it is also an opportunity to, you know, steamroll of everything that we need to do for taking our, you know, energy transition also seriously. It is both the world simultaneously running high, but after some time, 20-25 years maybe, is that others will start crossing the path, and something will take northbound and maybe fossil fuel, but it will not happen before, in my calculation, not before 42-43. In this context, ONGC is here, and ONGC, first and foremost, will give you financial, physical, and then financials. ONGC typically produces, if you take around a share in the JV production in country, around 43 million ton of oil plus oil equivalent gas. Last year. Normally, it was 55, but last year. Why 55? Because 43 plus OVL gets around 12, average.
Last year, Russian Federation had a problem and therefore, OVL production went down. Fortunately, I'm glad to report to you that Russian Federation is back at the same numbers of production that is. ONGC, if you add OVL production of 13 million ton, so say normally, then it is 55 million ton. We believe that this by and large is the picture, barring plus, minus, little here and there. Last year, oil we held ground, at least we are a steady decline. Gas will little went down. Physical side, it is, if you take 45 plus 15, I'm saying that ONGC, I assume that will grow up to 3-4 million ton more because of the things that is immediately on. You can see that immediate thing in Asing.
At least we expect OVL to be 15 million ton with Mozambique. It is 60 million ton. Country consumes roughly 280 million ton of oil plus oil equivalent gas. Basically, it becomes 23%-24% of country. It's still far from satisfactory. For that, as you may be aware, the next most important thing for physical performance is what happens in exploration side. Exploration side, as you are aware, that government released last year 1 million square kilometer of additional sedimentary basin area from Category 2 and Category 3 for further exploration, which was out of bounds. We believe very strongly that that offers good potential for our country, and ONGC aims to do at least out of 1 million, 0.5 million square kilometer, ONGC wants to do themselves.
If with that comes, then naturally our energy security and also Atmanirbhar thing takes a shape, better shape. In this context, you may be aware that government has announced multiple OALP rounds. Hopefully, you know, these rounds every year will be something at least 1 lakh square kilometer ONGC intends to add. Coming back to last year performance of exploration, we had eight discoveries, and out of that, you know, some have been already monetized, some are yet to be monetized. Reserve replacement ratio is more than one, just above one, 17th year in row. That is something. It means it is just making up for what is being produced.
Reserve is not growing as robust as we would expect as a country to grow, for the simple reason that our exploratory efforts, because of restriction, was not great. That restriction has opened, and hopefully in two, three years, we should scan the area, we should survey the area, and we should be in place. One more thing we wanted to share with you that around INR 10,000 crore per year, we are spending average. This last year, we have spent INR 10,000 crore on exploration. If we keep expending INR 10,000 crore, in the next three years, we'll be spending around INR 30,000 crore in exploration. Coming back to the per capita consumption story, I told you that we have a very strong piece.
What is the good news for ONGC that just I wanted to share with you? Unlike all previous years, when gas prices, ONGC lived with even gas price of $1.79 per MMBtu. Now, at least assuming that oil price remains at $75, government has capped, the policy has capped the ONGC nomination field gas to $6.5. Any gas which is produced from any new well, that will get 10% of crude price, prevailing price, plus 20%. Effectively, it becomes 12% of crude price. Every year, ONGC, roughly 6% to 8% of production falls, and that production is replaced by new wells. The 6% to 8%, if ONGC every year new production comes, that will fetch at current crude price, $9 per MMBtu.
Year-on-year from here, every year, ONGC increases its revenue if it maintains 8% of production from new wells. A fantastic price, $9, nowhere in the world, you know, people would get. In a way, gas pricing over the next seven, eight years will get completely reformed and maybe calibrated permanently to 12% of the crude price. This story is the biggest story for ONGC in years to come. This year it has started. In this year, we'll get six and a half. Next year, we'll get 8%. If you add weighted average, you can calculate that how much it will become. Every year, this increase will happen. After that, INR 0.25, INR 0.25 per MMBtu will get added after two years in 6.5.
That we leave aside because that will also give a base effect. What I'm trying to say that ONGC's financial performance is almost assured unless something. Only thing is, whenever in this world you use something assured, you have to always statute, and fortunately, it is a mood. Unless some disruption, because in our industry, uncertainty is very certain. Anything that you say, you have to always statute and say. This story that everybody should take, that unlike previous ONGC, now ONGC is almost getting gas price in 4, 5 years equal to international, you know, 12% of oil price. Oil price in any case is deregulated. Oil price in India, you get basically international price.
The financial side-wise, not much of an issue because it is almost looks assured if this policy regime continues, which I think it should. Coming back to financial numbers, last year, we must explain to you. Last year, there is a dip in profit in last year overall performance, because last year we were INR 40,000 crore, INR 40,000 plus. This year around INR 38,800. The around we have, you know, this, there's a dip in PAT. This dip in PAT, in fact, is not because of ONGC. If you see last year profit of INR 40,000 crore, INR 8,000 crore was the gain out of tax change. INR 8,000 crore we gained out of because tax regime from Minimum Alternate Tax regime, we came to the flat regime of 25%.
Whatever the lying in our books that we, you know, came here. Actual profit last year, barring tax addition, was INR 32,000. This year, contrary to that, this year, we have provided for INR 12,000 crore, of course, at PAT level, INR 9,000 crore. INR 9,000 crore PAT got wiped out because we took a view that we should provide for the GST on royalty. All of you may be knowing that royalty is a tax which gets paid to state government or central government, as the case may be. GST on royalty is tax on tax. Tax on tax is something that is a taboo in, you know, in taxation world. Somehow it, the demand has been persisting for 5, 6 years, and many people went to court.
Now the matter is before a 9 judge bench of Supreme Court, whether tax on tax can be levied. Matter becoming big, because last year our risk liability became INR 3,000 crore, because oil and gas prices were all-time high. We started getting worried that it is too big a amount to take a hit if something untoward happens, because matter sub judice, it can go either way. We took a conservative view, as happens in the best governed organization, that will provide for that. INR 12,000 crore on the pre-PBT level, we took as provision. As a result, INR 9,000 crore PAT got wiped out because of this provisioning. It is not a something that there is a fair degree of chance to, for this money to come back. We can't say that with certainty, and therefore we provide it.
Now, if you add INR 9,000 crore, tax neutral, it becomes INR 47,000. Last year, INR 32, this year, INR 47. It is basically 50% increase in profit. It has to be understood in the context of ONGC if you leave taxation. I'm not talking about SAED. SAED is a physical tax which government levy, which is not accounted for here. If you our conservatism, and last year, the windfall coming out of the taxation regime change, is the net differences. If you knock out both sides, ONGC performance is 51% better than previous year performance. Of course, you can say that ONGC performance is predicated on the best crude and gas price, that is the business we are in. Price loss or gain belongs to us. That is, that doesn't go anywhere else.
That happens in any industry for that matter, cement, steel or anybody. This, I wanted to tell you that our consolid level, somebody can argue that our consolidated level, our PAT is really down. Primary reason of that is HPCL, because HPCL last year made INR 6,000 to 7,000 crore. This year, HPCL lost INR 600 crore. The net difference between two is INR 14,000 crore. INR 14,000 crore, if you understand, and INR 1,000 to 2,000 crore are small companies, it explains that why PAT at consolid level went up. Don't forget that this year, HPCL will make more money because of the way things are moving.
This seesaw game continues, and therefore, at least consolid level, we have a grand future, at least for 2023, 2024, because they're one of the biggest subsidiary whose profit will get accounted under our header when we do consolidation of accounts. That is something that we should. I'm saying, I'm not saying what will happen, but first quarter of this year looks very robust for ONGC. That is the basis of I'm saying that. Net zero, if our, you know, our country has announced net zero by 2070. Here this morning in press conference, I announced that ONGC will achieve net zero Scope 1 and Scope 2. I'm repeating again, there is chance of misquoting, therefore, I'm repeating.
Net zero, scope one and scope two put together, not separately, by 2038. ONGC's plans, blueprints are ready, and we are moving in that direction. The moment we got confidence that it looks like that, you know, it is with great step we can do it. That's how today we announced that we are set on a path to become net zero, scope one and scope two by 2038, means 15 years from now. Majority of the things will get achieved in next 6, 7 years, and therefore, that is something that we thought that we explain to you. Coming back to the efficiency. In fact, 3, 4 things in net zero, which is very material to us, is basically on 3 sides.
Basically, the energy production, then energy storage, and then you have. Energy storage, we are. Battery and non-battery, both. Battery OEC is doing, and parallelly, we are trying for a non-battery solution, primarily, which is very capital-intense. Anything that is capital-intense, ONGC loves, because, yeah, what is left is, you know, because the company basically thrives in the capital-intense business. This is what we wanted to share with you. Now, we'll be too happy to take some questions if we have. Green side, three more things we wanted to tell you for future of the company. Oil and gas, I told you, basically, Mozambique for OVL, for ONGC, 98/2, that is KG. Our best case scenario is August, oil production.
Worst case scenario is October. It all depends on the way nature and monsoon works. In which oil production should commence, gradually it will step up. Gas side, we are hopeful in end of the FY 23. This is what the future is. Of course, we need around INR 30,000 crore CapEx per year. There are four major buckets of CapEx that ONGC spends on. First bucket, of course, this year also will be 98 part 2, because some of the major expenditure has happened already, but some of it will happen this year. That is FY 24. Second part is our western offshore, where we continue to pump money, CapEx, to retain the production, because as you are aware, it is a aging field, so CapEx intensity needs to be strong. That is second bucket.
Third bucket, of course, we have some projects in pipeline for green solutions. Besides offshore, we also have onshore assets, which produces around 6.5 million ton of oil, primarily spread between Gujarat, Northeast, and Andhra Pradesh. These areas, we need to have, you know, CapEx intensity to marginally improve production or retain production. This is what is the contour of ONGC. The last part is renewable. This year, renewable will be less, but next year, renewable and petrochemical will be much bigger because renewable trust will take shape for the consumption money only next year. Activity, what we take, effort we take now, the result should start coming from next year. This is what it is in macro 5, 6 piece.
Many of you may be knowing that ONGC has a very strong, at group level, very strong petchem presence. Very few people know that MRPL, which is an, you know, a subsidiary of ONGC, produces a good amount of petchem, and it has only cracker in Southern India, at least, you know, all the capacity to do petchem. If you add that with OPaL is also around 1.5. Three million tons of petchem is at our command. We have aspiration because 2 reasons for petchem aspiration. One is that should transition become faster, then we need to take care of crude, and for that to plan, petchem helps us in containing Scope 3, because petrochemical crude becomes converted into goods, so naturally, it doesn't go in air.
petchem, an Indian petchem consumption per capita is very low, which is bound to increase, year-on-year, much faster than fossil fuel. If that be the case, petchem is one of the aspiration we have, and hopefully, we told this morning that we will expand petchem at MRPL, because there is a land, acquired already for this purpose. And then we are also looking at some opportunity to improve our oil to chemical, footprint. As a matter of, again, you know, summarizing the same, if you see ONGC, we primarily three, four good stories: gas, gas. Second, story is oil. Third story is exploration in the 1 million sq km of additional area. This is the conventional ONGC space. A new space, green and petchem. Two things that we want to pursue very strong for posterity to say that we were responsible. Thank you.
Thank you, Chairman and CEO, sir, for providing us with a comprehensive overview and valuable insights into the ONGC group, and also clearing the concerns in the mind of investors, especially regarding this GST on royalty. As mentioned earlier also, the U field, a part of the KG-DWN-98/2, Cluster 2 project, stands as ONGC's deepest gas discovery. We are excited to begin oil production from the Bay of Bengal, contributing to India's domestic oil and gas production. ONGC's recent discoveries in OALP blocks, such as the MB-OSHP-2018/2 block, further demonstrate our commitment to unlocking India's hydrocarbon resources and supporting the nation's self-reliance mission. In light of these achievements, we would like to present an audio visual showcasing ONGC's exploration and production efforts. May we proceed with it, please?
India is one of the fastest growing economies of the world. This growth needs self-reliance in energy. Energy Maharatna, ONGC, is anchoring that national vision with a new force, a new trust, a new dynamism. That's ONGC for you today. ONGC is in final phases of completing its flagship deepwater project, KG-DWN-98/2, Cluster 2 development in Krishna Godavari Basin on the east coast of India. This project is being developed with a CapEx of over $5 billion. Final round of completion activities towards commencement of oil production from the KG-DWN-98/2 is presently in full swing in offshore, with state-of-the-art FPSO already in the field. The production from subsea wells in deepwater will be taken to FPSO for processing and further dispatch.
The subsea architecture of these fields is one of its kind in the world, comprising of more than 100 subsea structures, 100+ kilometers of in-field pipelines, 60+ kilometers of umbilicals, et cetera. ONGC has showcased its technical prowess and robust project management in successful installation of this subsea architecture. ONGC is expecting first oil in second quarter, 2023-24, which will be ramped up to peak production of 45,000 BOPD in phases. ONGC has already commenced gas production from the deepest gas discovery in the block, that is, U field in water depths of 1,400+ meters. The gas is extracted through subsea facilities connected to the Odalarevu onshore terminal in Dr. B. R. Ambedkar Konaseema District, Andhra Pradesh, which was dedicated to the nation by Honorable Prime Minister, Shri Narendra Modi, in November 2022.
In Western Offshore also, ONGC is successful in arresting decline from mature fields and minimizing well to oil timeline. ONGC has already committed CapEx of over $7+ billion for various new and redevelopment projects in upcoming 4 to 5 years in Western Offshore only. These projects are in different stages of conceptualization and planning. Renewed focus on onshore is also expected to reap significant production gain through 22 EOR schemes. This oil and gas production in KG-DWN-98/2 and other projects is a significant development that promises to enhance domestic oil and gas production and mark a pivotal milestone in the journey of an independent India. ONGC doesn't believe in resting on its laurels. It continues its winning streak in the Open Acreage Licensing Policy, OALP Blocks, by making new discoveries in consecutive years.
With impressive discoveries in the OALP 1 and OALP 3 acreages in Western Offshore, ONGC reaffirms its exploration commitment to unlocking the vast potential of India's hydrocarbon resources. ONGC's recent discovery continues in the OALP 3 round, with the discovery of oil and gas reserves in the MB-OSHP-2018/2 block. The exploratory well, MBS182HDA-1, exhibits impressive flow rates. ONGC's adherence to protocols is highlighted by its promptly informing the Directorate General of Hydrocarbons, DGH, and the Ministry of Petroleum and Natural Gas, MoPNG, about these significant discoveries. This collaborative approach between ONGC and regulatory authorities fosters responsible development of India's hydrocarbon resources. All this is in keeping with Prime Minister Shri Narendra Modiji's mission of an Atmanirbhar Bharat. ONGC, to strive, to seek, to find ways to make India self-sufficient in energy. We are always ready. ONGC jeetega toh jeetega India.
Thank you. I would like to extend an invitation to Mr. K.C. Ramesh, Executive Director, Chief Corporate Finance and Corporate Accounts, to present the performance of the ONGC Group. Please take note that the presentation and corporate brochure can be downloaded by scanning the QR code provided at the stand, just at the dining area.
Thank you, Prakash. After the introductory speech by Director Finance, setting the tone for this meeting, the encapsulating and enlightening speech by our Chairman, time for me to give a small presentation on the highlights, financial as well as physical, for the standalone as well as the consolidated performance of the company. A small disclaimer, because the presentation is futuristic, so the normal standard disclaimer. The presentation would be in the following format. There are five parts to it: standalone performance, consolidated performance, growth pursuits of the company, what we do as a responsible corporate, we go to subsidiaries and the joint ventures performance. ONGC is setting new standards.
ONGC is amongst the top CPSEs in terms of market cap, with INR 2 lakh crore of market cap. Among the top CPSEs in terms of PBT and PAT, PBT of INR 50,395 crore, PAT of INR 38,829 crore. 25% of the total net worth of all the Maharatna CPSEs. We have three women directors, most gender diversified Maharatna board, with a director of finance, director exploration, and one independent director in the board. We are also leader in average spend of about INR 500 crore per year in the last five years in CSR. ONGC has been a wealth creator during the last many years. The government of India promoted ONGC with an equity of INR 342 crore over 22 years.
ONGC has been contributing handsomely to the government, to the exchequer, over a period of, I mean, an amount of INR 12,03,502 crores to government till 31st March 2023. By way of disinvestment, about INR 48,000 crores. Dividend payment, INR 1,14,625 crores. Contribution to exchequer, to the state as well as the center. To the center, INR 5,31,888 crores. To the state, INR 1,98,949 crores. Subsidy, by way of subsidy also, INR 3,10,116 crores. This contribution during 2022-2023 was to the extent of INR 72,602 crores. Center, INR 54,090 crores, and state, INR 17,695 crores.
Coming to the FY 23 highlights. In exploration, we notified 8 new discoveries, monetized 3 discoveries. Accelerated exploration by way of back, we backed 85% of the blocks in OALP Round 6 and 7 with a square kilometer of 43,494. We also drilled 461 wells during the year, 85 of which was exploratory, and 376 development wells. On the production front, oil plus OAG production was 42.836 MMTOE. Gas production was 2.597 MMT. Projects, we had 5 major projects completed, INR 8,600 crore, with an average gain of 8.7 MMTOE. 3 projects were approved during the year, INR 5,880 crore.
Going beyond E&P, exploring low carbon and green ammonia plant opportunities are also in the pipeline. This is the physical performance. On standalone oil and gas production basis, ONGC had a production of oil plus OAG of 40.21. The JV part was 2.62, so totaling standalone plus JV, 42.84 during the FY 2023, as compared to 43.39 during the last year. Value-added products was 2.597, as against 3.089 in the last year. The physical performance in terms of 2P reserves was 2P reserves, we have 716 MMTOE, as compared to 710 last year.
Number of wells, as I said earlier, also, we drilled 461 wells during the current year, as compared to 434 last year. Coming to standalone financial performance, our gross revenue from operation was INR 1,55,517 crores in FY23, as compared to INR 1,10,345 crores during the last year. The PAT was INR 38,829 crores, as compared to INR 40,306 crores last year. EPS of 30.86 in FY23, as compared to 32.04 in the last year.
The dividend payment per share was INR 11.25 in FY23, as compared to INR 10.50 last year. Year-on-year normalized PAT, this is one aspect which our Chairman, sir, also in his speech, explained in detail. In fact, these are the numbers which reflect what he spoke during his address. FY22, FY23, though the PAT appears to be lesser than last year, it is in fact, INR 1,477 crores less at INR 38,829 crores, as compared to INR 40,306 crores last year. The reason being that there was an impact of provision on GST and service tax in GST on royalty. The impact was INR 8,477 crores.
The normalized PAT for 2022, 2023, in fact, would be INR 47,306 crores, as against the normalized PAT of FY 2021, 2022 derived like this: INR 40,306 was the PAT, less the de-deferred tax adjustment. Because of the new tax regime we went into last year, there was a credit of INR 8,953 crores. The normalized PAT for the last year would be INR 31,353 crores. Increase in normalized PAT of INR 15,953 crores I mean, which consists of 51% increase. To put things in perspective, though, the numbers look less in the current year, actually, there's an increase of 51% in the last year compared to last year. Coming to the CapEx.
Core CapEx in the last five years are tune of INR 1,44,000 crore. The CapEx for the last year are depicted here. What we plan for the next year is INR 30,125 crore, of which the exploratory efforts is 21% here, plus 10% on service, so 31%. 39% is relating to capital projects, and 27% relating to the development drilling. We are more or less in the same level as far as the CapEx is concerned. Coming to the discovered, I mean, discoveries of ONGC. ONGC discovered eight out of nine basic basins of India, the last one being Vindhya Basin. The first part of my presentation on standalone is completed. Now, I'm coming to the second part, consolidated performance.
ONGC Group, as we all know, is into It's an integrated energy company, totally integrated, expanding footprints in energy business. We are in upstream, we are in midstream, refinery, petchem, value-added products, LNG, power, renewables, services, and others. The consolidated turnover for the year was INR 684,829 crores. ONGC Group, resilient performance in FY 2023, with 1,221 MMte of 2P reserves, 53 MMte of oil and gas production, 36.23 MMte of refinery throughput. The financials in terms of revenue from operations, INR 684,829 crores, and profit after tax of INR 32,778 crores. The resilient consolidated performance is again reflected in this table.
The total income is INR 6,98,903 crores, as compared to INR 5,39,230 crores last year. EBITDA is also slightly lower at the consolidated level. PAT is also lower. The debt is slightly more compared to last year because of more borrowings by HPCL. Total equity of INR 3,01,255 crores we bear, against a capital of INR 4,30,440 crores, which works out to 13.01% debt on total capital. Debt to EBITDA is 1.5x and debt equity of 0.43. Yes, the debt equity chart is shown here. Current year is 0.43 as compared to 0.38 last year. We have very strong credit ratings also, domestic as well as international.
The long-term domestic is from most of the agencies, all of the agencies, in fact, is AAA. Short-term is A-1+ from all the agencies. International, also, we have very good ratings. They are all linked to the sovereign ratings also. I'm coming to the third part of my presentation, which is the growth pursuits for the company. Looking forward, ONGC is planning to foray into oil to chemical. We are already a truly integrated oil and gas company with one is to one is to one in terms of crude production, refining, and marketing.
The financials are looking upward, which the Chairman, sir, also, in fact, covered in his speech about the position that we are in, you know, with respect to the gas price, as a result of the Kirit Parikh committee recommendation and what we are going to get in future. On the exploration front, we are into CAT two basins, and we are also going to no-go areas. Production, we are planning to reverse the crude oil production trend, which will come in the next slides. Oil to chemical, crude to petchem diversification is also planned, and green energy net zero for scope one and scope two by 2038. This is the exploration growth, which is planned from 2020, the current position, to 2025, 2026.
We are planning increase in acreage, survey, as well as the CapEx spend on exploratory growth. The targeted Y 25 is 1,500 MMboe. The production chart is shown here. As you can see, from 2020 to 2023, we are planning to up our production by 11.6% from 40.220 to 44.884, and overall, a target of 49.554 by 2025, 2026. We are also planning gain through EOR efforts, 26 MMTP by 2040, through low salinity water flood, western offshore. We have some plans in for GAGD in Assam and polymer in Vesa Ji, Mehsana. Major projects, CapEx of INR 61,200 crores, lifecycle gain of 94 point MMboe.
These are the projects under implementation. 23 major projects of INR 1 billion and above was planned, which is under implementation. 14 development and 9 infrastructure projects, investment of INR 61,200 crores, and with an indicated life cycle gain of 94 MMboe. The projects which are planned, which are also in pipeline, they are shown on the right side. With respect to energy transition and green energy, where we are today is 189 megawatts. We have a goal by 2030 of 10 gigawatts, CapEx of INR 1 lakh crores. The plan is 5 gigawatts in Rajasthan. MOU is already signed, 5 gigawatts being scouted. Apart from that, also wind plus 1 MMTPA of green ammonia is also planned.
Coming to the global outreach, we have strategic collaboration with international oil companies offering the below opportunities: 23 Btoe of prognosticated resources in Category One basin, deep water exploration and production, Category 2 and 3 less explored basin awaiting unveiling, joint UA submission and bidding under OLB. The collaborations are presently at various stages of execution. New areas of collaboration and partnership in the E&P front, we have collaboration with ExxonMobil, Chevron, TotalEnergies, Shell, SX Exploration, and UT Austin. On the operations front, with services, we have Schlumberger, Halliburton, Basic, Fan Lab, GCA, and PwC. Going beyond oil and gas, we have collaboration with Equinor, Shell, and Greenco. On the technology front, we have for artificial intelligence and machine language, we have S/4HANA and DCAI. Coming to the fourth part of my presentation.
As a responsible corporate, on the relating to the ESG practices, on the environment front, we are committed for conserving climate. With regular greenhouse gas inventory, accounting, and disclosures on scope one and scope two emissions, we have already implemented 15 clean development mechanism, CDM projects, 2.2 million certified emission reductions, with OTPC having emission reduction potential of 16 lakh ton CO2e per annum. Fresh water conservation is also planned projects on that and other projects on renewable energy. ESG ongoing activities. Renewable energy-based power and other ESG projects, such as solar, wind, solar parks, EV value chain, green hydrogen storage, et cetera. Global methane initiative, carbon capture, offshore wind project, dynamic gas blending, micro turbine for power generation, geothermal energy, et cetera.
ESG social, what we have, we are committed to social welfare and inclusion. One of the first companies, ONGC is one of the first companies to separate CSR, to have separate CSR guidelines in 2009. CSR activities aligned with needs of community in respective geographies. Activities in areas of healthcare, education, environment, women empowerment, heritage preservation. The average CSR expenditure, which I covered earlier also, is INR 500 crores every year. On the governance front, we are the first signatory in India to the Integrity Pact. Focus on overall organized practices, awareness creation, and monitoring. Strong, effective whistleblower mechanism also we have. Coming to the fifth part of my presentation, relating to the subsidiaries and JVs of the company, of the group. ONGC Videsh, on the go, has a global footprint in...
We have 32 projects in 15 countries, of which 14 are producing, discovered and developing are 4, exploration 11, and pipeline projects are 3. The highlights of ONGC Videsh. CPO-5, significant OVL operated exploration success we had, contributing 19 KBD and on the way to 25 KBD. Mozambique, the situation is improving, and we are on course with assumption. Sakhalin, we are reclaiming the rights and bounce back from zero to plateau. BMCL-4, transiting from exploration success to development, and we have extensions in Block 6.1, Vietnam, Blocks B-2 and EP-3 in Myanmar, SS-04 and SS-09, Bangladesh. In South Sudan, the floods impact, impacted the dip to 27 KBD. We have a focused approach and innovative solutions to regain 54 KBD.
OVL, in short, is 4.5 MP operated flowing barrels from 6 projects in 4 countries, total 32 projects in 15 countries. The performance of ONGC Videsh: 2P reserves is 485 MMTOE as compared to 495 last year. Because of the geopolitical situation, the oil and gas production has come down this year, 10.17, as compared to 12.32 last year. Turnover of INR 11,676 crore, as compared to INR 17,322 crore last year, and the PAT has gone up to INR 1,700 crore as compared to INR 1,589 crore last year. The MRPL highlights.
MRPL achieved highest ever throughput of 17.14 MMT in FY23, registered GRM of $9.88 per barrel in FY23, achieved revenue of INR 124,736 crores during FY23, added 31 retail outlets, making total retail outlet to 63. Continuing the MRPL performance, the throughput was 17.14 in FY23 as compared to 15.05. As we can see, there is an increasing trend in all these aspects, including GRM gross sales. The PAT has come down to INR 2,638 in FY23 as compared to INR 2,955 last year. HPCL. HPCL is a company with 21,186 retail outlets. They are the number one lube marketer and number two in LPG market of India.
HPCL achieved the highest ever combined refining throughput of 19.09 million metric tons in the year, achieved highest ever sales volume of 43-45 MMT. HPCL also commissioned 697 kilometer long Vijayawada-Dharmapuri pipeline, also commissioned 1,161 new retail outlets, crossed the milestone of 21,000 outlets during the year. HPCL had a throughput of 19.09 MMT as compared to 13.97 last year. The GRM improved to 12.09 from 7.19 last year. Revenue from operation was INR 466,192 crores as compared to INR 373,897 crores last year. HPCL, as we all know, because of the position they had in the first and second quarter, the prices that they got was capped.
Because of which, they ended up with a loss of INR 8,974 crores. As the Chairman, sir, also saying during his speech, they exactly reversed it from the last year's profit to current year loss, which affected the consolidated performance of ONGC in total. Coming to OPaL. OPaL operated at average 82% capacity in FY 2022-23. OPaL also successfully completed its first major turnaround activity in the current financial year. We had a two-month shutdown. OPaL earned revenue from operations of INR 14,593 crores during the year FY 2023, as against INR 16,048 crores during the FY 2022. Reported EBITDA of INR 486 crores in FY 2023. OPaL, as we all know, is one of the largest dual feed crackers in the world. Coming to OTPC. OTPC is a joint venture with Government of Tripura.
OTPC power generation increased to 4,936 MMU in FY 2023 as compared to 4,124 MMU in FY 2022. OTPC earned revenue from operation of INR 1,631 crore and PAT of INR 201 crore. Highest production by any gas-based power station in India during FY 2023. OTPC also paid interim dividend of 0.07 per share and final dividend of 0.0 per share. The fourth subsidiary, Petronet MHB Limited. Petronet MHBL achieved throughput of 3.894 MMT during FY 2023, earned profit of INR 85 crore in FY 2023, earned total revenue of INR 168 crore, paid interim dividend of 1.47 per equity share.
IGGL is a joint venture with shareholding ONGC 20%, IOCL 20%, GAIL 20%, OIL 20%, and NRL 20%. IGGL was incorporated on tenth of August, 2018, implementing the Northeast gas grid of 1,656 km long national gas pipeline. This gas grid will be connecting from Barauni to Guwahati national gas pipeline as part of Urja Ganga scheme. There's a three-phase implementation with expected completion by 2024. The actual physical progress is 70.01% up to thirty-first of March, 2023. ONGC TERI Biotech Limited is promoting and developing technology for use of microbes in bioremediation of soil affected by oil spill and promoting microbial-based technology for enhanced oil recovery.
The financials for FY 2023 for TERI is revenue from operation, INR 37 crores, and net profit of INR 19.2 crores. We had the national, international recognition from S&P Global, 14 in top 250 global energy company ranking 2022. Fortune 190th globally and fourth in India, Fortune Global 500 list 2022. 229 globally and fifth in Indian Forbes Global 2,000 list 2022. Rank of 404 in Forbes World's Best Employers list in 2021. Certified as a great place to work. third year in 2022, certified India's best employer among national builders in 2022. That's it from my side. Thank you, all. Thank you for the patience listening.
Thank you, sir, for the detailed presentation on ONGC and group of companies. With the permission of the chair, we now open the floor for interaction. If any participant would like to ask a question, please introduce yourself and mention the organization you represent. Kindly raise your hand, and our team will assist in reaching you. You can go, first question.
Thanks for the presentation, sir. I'm Vikash Jain from CLSA. A few questions. Firstly, let me congratulate you on the net zero target. I mean, that's a very ambitious target, I have to say, 2038. Just wanted to ask a few things. Is there any target on scope three reduction by 2030 and 2038 as well? Like, what percentage? That's one. Secondly, are there any interim targets around the 2038? Like, what would the reduction be like for scope one and scope two by 2030, and then 2035, just to kind of keep track of that. Maybe, you know, that's the first one. I'll take the other two maybe after this. Is that okay?
Thank you for asking lovely question. First is scope three. So far, we have been focusing on drawing plans for scope one and two. Scope three, as you know, is basic. Our product itself is enemy of scope three. We are sure that by 2030, we'll have more visibility of the way world is going. The best time to take a pause and decide about scope three, because we can announce some number, but some have done it. You must have seen some companies have done 7%, 8%, 20%, 10%, 30%. Doing anything in minority and giving a date, it is neither here nor there. Let's wait till 2028, 30.
More visibility will emerge. Hopefully, we'll have some numbers, which is comfortable number, not a minuscule number, for Scope 3. Coming back to... There was some answer to your question number two in one of the slide here, where it said 10 gigawatt by 2030. All I can tell you is, our current Scope 1, Scope 2 emissions are around 8 million ton of carbon dioxide. You can narrate, connect the two, but we didn't want to, you know, exactly peg at what % and all that, because as you know, Scope 1 and Scope 2 is literally fungible. That is the reason, but you can be rest assured that 2030, we will have covered a good distance.
If it goes, good distance about scope one and scope two, but exact number, sizable number, not a small number, but exact number is a tough answer. I would like to, you know, I'd not like to hazard a guess on that.
Thank you, sir. This target, is this a group, that is including your downstream subsidiaries, everything, or this is just for your standalone upstream business?
At group level, yes, our aspiration is group. As you know, our group, our bigger issue is ONGC. Scope one and two for Mangalore Refinery, HPCL has already announced 2014, right? Is that 2014? 2014. MRPL, of course, it goes with us. And refinery it is, so you can take it that our major emission is group level, if you see, is MRPL and HPCL. If you ask me, we already have an advantage of I could have announced a scope three, because we already have 3 million ton of pet chem. If any company which is in advantageous position today to announce some number about the scope three, is ONGC as a group level. Still we said it's still not working out to a number that we can talk about with great, you know, saying that will make a difference. Yes, you are answering your question, it is group level.
Thank you, sir. On coming to the more mundane financial numbers, this one-off provision that you have made, I mean, it's in 9 judge bench, you've said, it's pretty almost near finality, I would say, you know. What do you think by what time? I know it's a court proceeding, we cannot predict, is it a fair understanding that we should have some kind of a result, perhaps in the next 12 months or so, about this? Why I ask is, sir, I know that you want to be conservative, if this turns out to be true by any stretch of imagination, the impact is going to be far beyond your company and into any form of any company which uses any resource from the government.
That resource might be, you know, airwaves, that resource might be, coal mine, that resource can be anything, you know. Essentially, the impact of this could be really far-reaching. That is why, you know, conservative is great, but should we take it as suddenly you are feeling a little less confident on this than what you were feeling before you reported this quarter results?
To answer your question, this is also an intelligent question. Basically, the answer, if you ask me, as individual, I'm very optimistic. At board level, we were very optimistic, and that is the reason for not providing it for last 4 years. Okay? 4 years, we're hoping that in any case it is a done thing. We were very sure that it'll come our way. Last year, it became INR 3,000 crore. Because earlier it was Pomila Ji would remember, correct, huh? INR 13. Now, if the size becomes much, and individually, I can take a hit, but if something goes wrong, what happens to shareholder? Putting a stone on our chest, we took the decision of providing for it in the interest of shareholder.
If it comes, in any case, that money will flow to shareholder as dividend. If it doesn't come, we have already provided for it. No management will be as fair and, you know, fair to a shareholder as we have done. I know for sure many companies have not yet done and will not dare to do it because the impact of it. More you prolong, and if subject matter doesn't get decided, the more the size of the problem. More the size of the problem, less the ability to handle it if it goes against you. It is a question of, you know, balancing, and in management, we call it the art of balancing the contradiction is called management. We did management.
The timeline you think about the court case, what is your best case? I'm not taking your word for it, but still.
This I can't answer. This I can't answer because Babri Masjid continued for. Nobody can answer in this country how much time a case will take.
Sir, one suggestion and request, since we are so confident about this thing. When this now becomes an annual entry in our books as a provision, this should be, in my opinion, shown as an exceptional item, since.
Agreed.
that is something that
We are doing that.
We are so confident that it should not be.
Only good news for you is that in 2023, 2024, it will not be 3,000 crores, because the price of crude and gas both have fallen. It will not be as high as 3,000 crores. Definitely, it is exceptional item. It will always appear as exceptional item, like the way it has appeared for 2022, 2023. That we know that it is something that we are providing for in the interest of shareholder, but we are still 100%, more than 90% at our level, sure that it should come back to us.
Okay. One odd thing about this year's results was dividend payout.
Yes.
The payout ratio is about 36% or so, which is far, far lower. Like, I was just looking through-
It still is 225% of.
Sir-
-shareholders.
Most large investors and institutional investors look at payout ratio. They don't look at it as a percentage of face value or versus YOY. When you yourself are saying that on a real basis, profits are up 50%. You know, that's why I'm not comparing it to the last year, where you had a non-cash gain, and the year before, which was impacted by very low crude prices. If I were to look at FY14 to FY20, your payout ratio is anywhere between, I think, 43% to 65%. This number, should I take it as maybe this year because you are thinking of this provision, it's a one-off, and possibly things will ramp up to a much higher payout ratio as it used to be the case, or?
If the judgment goes in our favor, that money will go back to shareholders. It is their money lying in somebody's pocket, as simple as that.
Basically, this year, because you provided for it, that is why. Next year onwards, you.
No, I can't say, because that board.
No, I'm not talking about... One can expect, because once you have provided for it's there, then it's just a normal INR 2,800 crore, INR 3,000 crore kind of-
It is shareholders' money, if it comes, if the judgment comes in their favor, either it remains a reserve or goes as dividend. There are only two ways.
Okay, but no, I'm talking about annual profits.
It will reflect in share price.
Okay. No, I'm talking about annual profits.
We are not. See, board decision, I cannot, you know, take unless the board meeting happens.
Okay.
This is a board matter. At that point in time, we'll take a call.
Sir, thanks for taking all of my questions. Just one last one: Any update on Mozambique?
Mozambique, it was given. Work has started, now, you know, it will get ramped up. Hopefully, if nothing goes wrong, we should have Mozambique gas by 2026-2027.
Thank you, sir.
Hello. Sir, am I audible? Yeah.
Yes.
I'm Probal from ICICI Securities. Just following up on the Mozambique question, you said that the work has started. 2026, 2027, if it starts up, are there any impairment charges that we have booked, which we expect to reverse if work sort of proceeds as planned?
This year itself, as the sentiments have improved and the security situation has improved, we are in the final stages. Work is already happening on the ground. 2,700 people are on the ground. Force majeure should be reversed very shortly. The contractors have been sensitized to start work. Considering all that, we have reversed some of the impairment that we took, and as of now, we are looking very positively at the beginning of construction in full swing and getting the first gas in 2027.
What's the extent of impairment we've taken till date? Is it possible to put a number, and how much do we expect to reverse if, let's say, 2027 is when the project starts up? Because there's a time value involved in terms of the investments we have done, right? Manavag!
We have reversed $317 million. That was the impairment we have provided in last four, five years, that we have reversed this year.
That's the extent of the impairment we had taken, is it?
Yes, that we had taken earlier, which has been reversed this year.
Okay.
There is another aspect, like, because, it was in force majeure, all our cost, maintenance cost, was in expensed out, charged off in PL. Once the construction start, it will be all capitalized. There will be a gain there.
Okay, thanks. The second question was again, with respect to OVL. Out of the 490 million tons or so of the reserves that we showed, how much is actually out of Russia as of now?
207 is Mozambique. Russia would be about 60% of the 400, 491.
Okay. You spoke about Sakhalin, where we are in the process of regaining the rights, or have we regained the rights? I'm sorry if I wasn't very clear.
The Sakhalin, let us be very clear. Sakhalin, we are there for more than 2 decades now, and in Sakhalin, ONGC Videsh has made a lot of returns. After 24th February of 2022, things changed, and the operator, which was ExxonMobil, declared force majeure, and for 7 months, production came down to 0. On 7th October, there was a decree of the Russian Federation, which stated that now the new operator would be an incorporated Russian company. It has taken over, we were given the chance to reclaim our 20% rights in the project, as we had earlier. Those, we applied for that, we are given those rights in November by the president of the Russian Federation. We are back in Sakhalin-1.
those, the approval came with some conditions, which our obligations under the PSC. Once those obligations are transferred to the Russian entity, we would be getting full, rights into the project, including our shares.
Thank you, sir. One last question from my side. You spoke a lot about the oil to chemicals aspiration that we have. MRPL petrochemical expansion would be one of the levers in terms of doing it. Just wanted to get a sense, is there any number of the kind of investment we need to make to sort of make that transition? Any numbers we have in terms of the exact petchem expansion we'll be doing? Thanks.
There are two parts to this question. One is the refinery itself has got some value streams which can be easily upgraded to petchem, so we are looking at an INR 7,000-8,000 crore investment there, but that needs to be further detailed out and ascertained with respect to the viability. The other part is the major move to petchem is directly without getting into the rigmarole of refining processing parameters.
...that could be in the range of INR 30,000-40,000 crores, subject to detailing and valuation. The job is on work in progress.
Hello. sir, good evening, this is Amit Rustagi from UBS. sir, I have three questions. First is relating to MRPL, that, what is the timeline we are looking at for the merger of MRPL with HPCL? Is there is any taxation-related issues in between and any timelines specific to that?
Amit, I think that this question is not on MRPL. Since we are the holder of both MRPL and HPCL.
Yeah.
As a holding company, what I would like to tell you is that when OMPL and MRPL, they had merged, so at that point of time, the effective date is 1st of April, 2021.
Okay.
As for the, there were certain inherent business losses as well as, you know, acquisition losses. As that point of time also, we had taken that benefit, you know, that benefit which will accrue to MRPL on account of this OMPL merger. That benefit, as per income tax, that it goes up to five years. That is between the two, there should not be the second merger. As per tax law, there should not be the second merger in order to get that benefit before five years. I think we will like to avail that benefit for the, you know, group's energy as a whole before going for the HPCL and MRPL merger.
This means that till 2026, there cannot be any merger.
Yeah.
MRPL and HPCL.
Also, in case, like if there's some decision is taken before and that we will have to see at that relevant point of time, you know that the loss which we have taken the benefit, that will have to be given back.
Given back.
These are all the balancing factors that we will have to see at that point of time. From that angle, I think it will take some time.
Okay. My next question is to the Chairman, sir. Sir, you explained about the incremental gas price coming up, you know, the production coming up from the new wells. Can you explain it from a consumer perspective, like which set of consumers will be paying incremental? What we are seeing from the government perspective, that they are incrementally giving all the allocation to the CGDs. In fact, some of the allocation is being cut from the transmission sector as well to give the benefit to the CGDs. When 8% of your output will be earmarked for a higher realization, then which set of customer, whether it is fertilizer, LPG or CGDs, who will be paying the incremental gas price?
The policy says that ONGC is guaranteed for price, but allocation has to be done by government. Government has to decide which sector will get this gas and which customer will get this gas. The price, what we'll realize, that I spoke. In any case, our role is limited to production and price. Who consumes it is immaterial for ONGC.
Basically, you're saying and it is on new wells, output, not really new fields.
New fields or new wells. In any case, new fields which are outside the nomination regime, they are free to market, marketing and also both freedom they have. They have selling freedom as well as they have pricing freedom.
Mm-hmm.
All those areas are outside. Today, limitation is only on $6.5 is only limited to ONGC and OIL.
Yeah.
Nomination field.
Yeah.
For nomination field also, this dispensation has come. Any new well will fetch higher price. It means today, ONGC meets roughly 35% of national gas demand. National gas demand is 61 BCM, ONGC produces roughly 21. Basically, this 35% is still CGD demand is far below this. CGD demand is still our country's, you know, far below this. I don't see any problem for next 10 years. After 10 years, yes, CGD may again stay, but whatever additional number will come, it is not the CGD sector which needs this. It's somebody else, and somebody else will certainly pay for it, because other choice he has is only imported LNG. Imported LNG will certainly cost more than this. Therefore, even there is a market security and also there is a price security to ONGC.
Sure. My last question is relating to value unlocking. One of our subsidiaries, HPCL, has announced in this board meeting that they want to unlock value from the lubricant separation. Do you see any more value unlocking opportunity in the group as a whole? Like, we also hold OPaL, which is unlisted, and OPaL is definitely showing a lot of turnaround in terms of profitability. HPCL has further joint venture opportunities in the form of HMEL, which you just explained. There are further opportunities in the group, or you think that that is one of the opportunities which has come and maybe just done?
Value unlocking, if you see, there's not one, there are plenty opportunity lying there. Depends on whether, if timing is right, and second, we need this to happen. That two questions, as of now, I don't see any need to do it, because let market move a little more, and that time, if we find that value is really tremendous, we will do that. We have list of all those opportunities that we can do. That, you know, like, what you rightly said, be it OPaL, be it HPCL, be it MRPL. All those value unlocking opportunities will be encashed at appropriate time with the board decision.
Sure, sir. Got it.
Thank you.
Thank you, sir.
Thank you.
Amit, what Chairman said, that 8% incremental gas will only build up further. It's year-on-year. It's not 8% flat.
It is not 8% this year.
It will increase.
If you read it means 8% of current gas production price, it means we should expect 8% increase in revenue every year.
Yeah.
That is a year-over-year. That's what I wanted to say. Practically, gas market, after some time, is there a limit? It is basically you get 12% of the slope, 12% of LNG. 12% slope is what LNG is all about.
It's basically three years down the line, it will be 24%, something like that. The regular pie will reduce, that pie will increase. Sure, sir. Got it. Thank you, sir.
Yeah, good evening, sirs. I have 2 questions. The first one is on this 20% premium itself. Have you implemented it, or you are waiting for the modalities to be finalized by DGH or any other agencies?
It is in gazette. In the gazette order of government, it is mentioned.
You are already charging, I mean, if you are like-
No, no, first of all, we have to produce new wells.
New wells.
New wells are a continuous process. It has to be applicable only to new wells. The new wells, after drilling is complete, production starts. There is a drilling. There is a well completion. There is production.
So this-
That will take some time. Some wells certainly will come this year itself, those who are under drilling.
The 450 wells that you drill, any well from that.
Now that is a million-dollar question, that whether the 430 wells, 461 wells last year we drilled. Out of that, 180 odd is exploration. The rest is around 380 or so it was production. Now, the question is, if any well drilled before the date of the notification, whether that production also will attract 8%? As you know, we have to fight with that.
No, I mean, in Q1, for example, you are drilling 100 wells.
Q1, no. Q1, my answer, Q1 is very small number will come. Q2, Q3 and all that, some numbers should start trickling.
by Q3, we will see the realization.
Some, yes. Some, yes.
Okay.
Some, yes.
Okay. second question is relating to this Q4 results only. if I adjust the GST part also, then also, I think, the other expenditure of the company went sharply up during Q4.
Which one?
I mean, I think INR 60 billion of like other expenditures.
See, total increase is only INR 6,000 crore other expenditure. In that, ONGC or for that matter, any company, depending on the method of, you know, accounting, we write off, we charge off all our survey, whether successful or unsuccessful, drilled, not drilled, we charge off. That is around... Sushma, how much? INR 3,000.
It's around INR 3,000. Little bit up, expenditure went up because of the OALP acreages that we had acquired, that required seismic data acquisition, the surveys have increased. We also did 3D, 3C for the western offshore, which gave us good results last year, and also in the Category II basins of Mahanadi, Bengal and Andaman, those surveys have been conducted. That's actually the survey, even though it is carried out in 1 or 2 years time period, but it lasts almost for 30 years because the data keeps on getting used again and again. That might be that is the reason in terms of the exploration.
What essentially she is saying that it is a CapEx in nature. It will pay back over longer period of time. The survey, more survey you do, more happy should be shareholder, because it means future production will go up. Survey is always a one-time expenditure. Next year, again, new survey will get added.
Yeah.
This year's survey was highest, 22, 23 surveys was one of the highest in the history of backlog of pandemic and also our commitment to do surveys. Second, the remaining, madam will answer you, remaining 3,000 INR.
Yeah. In addition to this, since we were talking about this, you know, GST on royalty, some part of that for the current year, that also we have booked as an expanded provision for the current year. That is also fixing as a part of that. It is not, you know, hitting that particular P&L account, because when we come at the bad stage where, you know, the depletion is there, jo humne provide kiya tha pehle impairment kiya tha in wells ke liye, that we have already reversed over there. One part is coming to that INR 6,000 crore, but the corresponding part of that is coming as a reversal to the impairment. That is one.
In addition to this, there have been certain few expenditures which are of routine nature, but of course, because after the COVID, major activity has started, we have been spending more. This year we have spent more on the water injection under various schemes, which will add to the increment production, and that amounts to something around INR 400 crore. In addition to that, there has been, you know, one of our workover activities are there. Some repair and maintenance expenditures. There we have, I think, our Mr. K.C. Ramesh, he had already explained that certain 18 turbines, so we had done the repair and maintenance of that, so that will give a value in the future. That's there.
Another important thing is about the, you know, you might have heard about this Panna Mukta and Tapti. That particular asset, which was earlier belonging to the contractor, and now it has come in the kitty of ONGC. The decommissioning liability of that, decommissioning is that site restoration activity. That has to be provided for. Our estimates of that decommissioning liability was, our estimates based on the third party's report, so that is around additional $71 million. That has added. If you do the plus and minus of that, so that adds to INR 6,000 crore. Main chunk is on account of that seismic activity, which has gone into which will give results in the future.
Thank you so much, and all the best.
Good evening. My name is S. Ramesh from Nomura Institutional Equities. Thank you for the very illuminating presentation and thoughts on the company's future strategy. The first thought is now if you look at MRPL and HPCL and all the refiners, they have reported refining margins, which have been much higher than we expected, and we would like to understand that. What's the share of Russian crude that you have used in MRPL and HPCL? I would suggest that, you know, we should possibly be a bit more transparent, because this is a very key variable for the analysts. As one of the senior most analysts, I'm requesting you to possibly share some thoughts on this, because the fourth quarter refining margins have, you know, kind of surprised us on the upside.
If you can have some thoughts on that. The second thing is, if you can give us some indication of what are the current spreads and expectations on refining. I'll go to the questions on upstreams.
To be more politically correct, all efforts are on to maximize the cheap crudes. We have an opportunity to source and process cheaper crudes, and that's what every other refining company is doing. I think it's better to leave it at that, rather than get into.
No, I understand your compulsion. The problem is, you put the numbers, we are not able to add up. You take 20, 25% share of Russian crude and look at the discount.
I will answer it. Find out the national average. MRPL is more than that.
Okay. Can you give us some indication of what the current spreads are like, and what is the expectation on the refining side for this year?
Unfortunately, you know that current spread, if we, current GRM, we can't share with you, because that will be a breach of. He's also a listed company, so he has this, tomorrow, SEBI will serve him a notice if he says that, "What is this month's GRM?" We are supposed to disclose only after the result is out, so. All you can infer is that today, diesel crack is plus ten plus, correct?
Yes.
The gasoline crack is 10, around 9-10. Find out the national average of Russian crude, so you'll know that what refinery is making. For that, you'll have to do some homework, pen and paper, and calculate that.
Yeah.
Refineries are in healthy zone. All I can say is they're in healthy zone. They are not in distress today, partly attributed to the sourcing of cheap crude.
Fair enough. If you look at HPCL, they skipped dividend. Do we expect HPCL to come back to the dividend list next year in terms of payout? BPCL and IOC still paid out dividend.
That you should ask HPCL. They are also a listed company. The problem is, if I say something, you know, there will be a lot of. Their board has to decide that how much dividend they want to give, when they want to give, and all that. One outlook I can give that, this quarter, like last quarter, for ONGC, is a healthy quarter. Last quarter numbers, you have seen, this quarter number also should be healthy numbers.
Fair enough. If you look at HPCL's Rajasthan Refinery and Petrochemicals, and your own group plans for oil to chemicals, how do you see that getting, you know, dovetail into that? When do you see HPCL's Rajasthan Refinery, you know, starting up, and what is the kind of timeline for that project to become EBITDA positive or PAT positive, whichever you can share with us as things stand today?
You should ask this question to HPCL.
Sir, you are the holding company. You don't hold an analyst meet for a call.
No, all we know is that, it takes some time.
... As of now, it is probably 26. Target is, official target, 24, then became 25. Hopefully, if all goes well, 2 years plus, but there are some, you know... Now coming to your next question of petchem. Petchem market in our country is not a problem, because as you know, we import hell of a lot of petchems, including even some polypropylene, HDPE, LDPE, PVC, all commodity petchem gets imported. In fact, if you ask me, it is a very oxymoron that we have refining surplus and petchem shortage. Refining surplus country we are. Today, we consume roughly 220, while the refining is 250-260, but petchem-wise, it's not so. Petchem has a lot of appetite in the country. That appetite, I don't think Barmer has a demand, and more so because it's close to Gujarat.
Okay. Just a couple of more thoughts now. There was a question on the incremental upside in the gas pricing and gas business. If you're looking at the economics of drilling these additional wells and nomination blocks, at the $9 kind of price you indicated, what is the kind of economics you're seeing in terms of IRR or the drilling costs, and in terms of capital allocation, how would that move go from going forward?
Our lifting cost is, you know, well within limits. If you see, it's much, much lower than that. Maybe somewhere around $2.5 to $3.
You still need to... In terms of CapEx, supposing you want to drill, say, 10 wells or 100 wells for the additional number of wells, how much will it cost?
See, it depends, region to region. If you drill a well in Gujarat, it's, you know, the cost is much less with respect to if you drill in Northeast or if you drill in offshore, because the technology being used, the material being used, and the network that is involved, it varies. Still, even at the costliest phase, if I talk about offshore and the gas project, we are getting very healthy IRR, plus 20% or something like that. on this.
In terms of your CapEx plans, can you indicate what proportion of that will go into these additional wells in the nomination? Because it seems to be a very attractive opportunity. Is there any thought on that?
One thing I can tell you, the most profitable business for ONGC is to drill well in nomination. CapEx will never be a constraint. CapEx, whatever CapEx it can take, that we will provide, because then if they need to shed some CapEx, we'll shed somewhere else. Definitely, this, we gave you numbers, that our, you know, most profitable finest return on investment is investment in nomination.
Thank you very much, Mr. Olway.
Thank you.
Thank you.
I believe we can accommodate one final question for the evening.
This is Kirtan Mehta from BOB Capital Markets. One question on the explorations, that we are increasingly focused on the exploration. Could you talk us through some of the wildcat explorations that we may be undertaking over the next two to three years?
Yeah, you inquired about wildcat?
Yes.
Yes. Actually, wildcat, we do in areas which has got very less data. So most of these wells are going to fall in Category 3 basins. Of course, we have been going through the process of seismic data acquisition, as you might have heard in NSPs. In addition to that, we have also done aerial gravity gradometric, you know, AGG surveys in some of the areas in Northeast. So wildcat wells are going to come up in those areas or the Himalayan Foreland Basin. Other than that, Category.
I would request all, please be seated.
Yeah. Category 3 basins, we would be taking up. Cuddapah is 1 basin, Category 3, which will be coming up for drilling this particular year. Another acreage that we acquired for Category 3 is in Narmada Basin. In addition to that, we have submitted EoIs for different Category 3 basins, so most of the wildcat wells are going to be there. In addition to that, we are in a process of acquiring data also.
Does that mean that this would be at least 2-3 years away by the time we undertake this? Because at this point of time, we are still under the survey process.
I didn't get your question.
I'm just asking in terms of a timeline-wise, would it be couple of years away as we are focusing on?
The entire process of doing an API, what we call the acquisition, processing, and implementation of data, it takes almost 2-3 years. Thereon, we go into drilling. Yes, 4 years from the time of the start of acquisition. When you go for bid, you know, in new acreages because of the data which or the knowledge, which ONGC has legacy knowledge, we have been doing exploration for 6 decades now. We get a little bit of a head start, I would say there. About 3 years, yes, in a wildcat area.
Otherwise, we are in a year itself, as you have seen in OMP, one in three rounds, we have already drilled and discovered, and they are in the process of being monetized.
Thank you, ma'am.
Thank you. It's always a pleasure to engage with the investors and analysts. I extend my sincere gratitude for the lively interaction we have had. It is my privilege to propose a vote of thanks on the occasion. On behalf of ONGC, our entire team, and the broader fraternity, I would like to express a heartfelt thank you to everyone present here, including the investor and research analyst, representing various institutional investors and fund houses, for gracing ONGC's investors and analyst meet tonight. I would like to convey our sincere appreciation to the Chairman and CEO for delivering an outstanding overview of ONGC's future endeavors and sharing the business performance for the year 2023. I also extend a heartfelt thanks to all the dignitaries present on and off the stage for generously sparing the valuable time, engaging with the investors, and sharing their insights this evening.
Furthermore, I would like to express a gratitude to the entire team of corporate communication and the regional office in Mumbai, as well as our corporate planning team, for the well-coordinated efforts in organizing this event. Your contributions are truly commendable. Once again, thank you all. I now kindly request all of you to join us for the dinner. Thank you.