Good day, ladies and gentlemen. I'm Harpreet Kapoor, the moderator of this call. Thank you for standing by, and welcome to first quarter FY 2022 earnings conference call of ONGC Limited. For the duration of the presentation, all participant lines will be in listen-only mode. We will open the floor for Q&A post the presentation. Without any further delay, I would like to now hand over the proceedings to our Chairman and Managing Director, Mr. Subhash Kumar. Over to you, Sir. Good day to all. Thank you very much. Just before formally starting, let me give two pieces of information. One is that ONGC was established in 1956 on 14th August, so this happens to be our beginning of 66th year. Secondly, I'm also very happy to announce that I have with me in my room, in this very conference room, Director (Offshore) and Director (Exploration), Rajesh Kumar Srivastava. Director (Onshore), Anurag Sharma. Our officers on special duty, Executive Director Offshore, Pankaj Kumar, and then we have Vivek Tongaonkar, Chief Financial Officer. Anurag Sharma, Rajesh Kumar Srivastava, Lakshman Gora, Sanjay Bharti, Jagdish Prasad, and of course, Prakash Joshi. I have also with me, Adhikari from CMD office. With that, we can start the proceedings of the day. Just to introduce, I am Subhash Kumar, Chairman and Managing Director, ONGC, holding additional charge of Chairman and Managing Director, ONGC, in addition to Director of Finance of ONGC. Let me on behalf of ONGC, welcome you all to this earnings call for quarter one, FY 2022. Thank you all for joining us on the call. Also on the call are my colleagues from corporate planning from Delhi, Mr. Akhil Varma, Mr. Rajarshi Gupta, Mr. Vinod Hallan. Also my colleagues from ONGC Videsh, Mr. Nirmal Kumar. Our colleagues from P&D, Mr. Chandrashekar. All of these are present here. ONGC has compiled its final results for the quarter ended 30th June, which have been reviewed by statutory auditors. The financial results have already been released on 13th of August 2021, that's yesterday, through a press note and sent to the stock exchanges. These have also been sent to analysts who are there on our mailing list. There is a brief synopsis of the results. The company has earned a net profit, that is profit after tax, of INR 4,335 crore during the first quarter of FY 2022, as against INR 497 crore during the first quarter of FY 2021, an increase of INR 3,838 crore. That is in terms of percentage, this is an increase of around 772%. The increase in net profit during the current quarter versus the same quarter of previous fiscal is on account of higher sales revenue due to higher crude and VAT prices, which have been partly offset by lower natural gas prices. The sales revenue for first quarter of this fiscal has increased by INR 10,021 crore. That's an increase of around 78%, and it is this fiscal at INR 22,955 crore, as against INR 12,934 crore in the corresponding quarter of the previous year. The sales revenue in the current quarter has increased mainly on account of higher sales revenue from crude oil. That's around INR 10,013 crore, and value-added products have added INR 1,263 crore. Which of course, is partly offset, as I said earlier, by lower sales revenue from natural gas to the extent of INR 625 crore, and increase in GOI, Government of India, share of Profit Petroleum by INR 630 crore, mainly in RJ-ON-90/1, that is by INR 490 crore. The billing, that is net of VAT and CST for crude oil during the first quarter of current fiscal was at INR 65.59 per barrel as against US dollar. Pardon, it is $65.59 per barrel against $28.87 per barrel in the same period of the last year. This actually translates into an increase of 127%, and in dollar terms, this is an increase of $36.72 per barrel. The exchange rate of rupee versus dollar stood at INR 73.73 versus INR 75.86 in the first quarter of previous fiscal. Realization for crude in rupee terms stood at INR 4,836 per barrel in first quarter of this fiscal, versus INR 2,190 per barrel in Q4 of FY 2021, which amounted to increase of INR 2,646 per barrel. That's an increase of 120.1%. The figure of 2,190, which I mentioned, actually pertains to Q1 of FY 2021. During Q1 FY 2022, the statutory levies stood at INR 5,970 crores as compared to INR 2,981 crores in Q1 of FY 2021. That's an increase of INR 2,989 crores. That's roughly doubling of the figures. The increase in royalty on crude oil by INR 1,486 crores and cess by INR 1,620 crores, is mainly attributable to increase in average selling price of crude oil from INR 16,373 per MT in Q1 of FY 2021 to INR 36,253 per metric ton in Q1 of this fiscal. Similarly, there has been a decrease in royalty on natural gas by INR 34 crores on account of decrease in average selling price of natural gas from INR 7,233 per thousand cubic meter of gas in Q1 of previous fiscal to INR 5,961 per thousand cubic meter in Q1 of this fiscal. The operating expenditure has increased by INR 640 crores. That's an increase of 15.4% from INR 4,158 crores in Q1 FY 2021 to INR 4,798 crores in Q1 of this fiscal. The increase in this fiscal, the first quarter of this fiscal, is mainly attributable to the increase in consumption of materials, which happened mainly at the Dahej plant by INR 325 crores on account of increase in quantity and prices of spot LNG. Contractual payment, that is INR 127 crores, mainly at Western onshore and offshore due to increase in activities. Transport expense, INR 83 crores, mainly at Western offshore, and staff expenditure by INR 232 crores. This increase in operating expenditure has been partly offset by decrease in repair and maintenance by INR 74 crores, mainly at Western offshore platform, and reduction of other production expenditure by INR 102 crores. The finance cost has increased marginally by INR 10 crores from INR 610 crores in Q1 of previous fiscal to INR 620 crores in Q1 of FY 2022. This increase is mainly on account of interest on NCDs, which has been partly offset by decrease in short-term loans. There's a marginal increase of INR 24 crores in exploration costs, written off. Survey and unsuccessful well cost in Q1 of this fiscal, that is INR 1,127 crores in the quarter one of previous fiscal has increased to INR 1,151 crores in Q1 of this fiscal. This increase is mainly attributable to increase in unsuccessful well cost by INR 27 crores. DD&I cost for Q1 of this fiscal stood at INR 4,165 crores as against INR 3,822 crores on Q1 of previous fiscal. That's an increase of INR 343 crores, and in percentage terms, it is about 9%. The increase in DD&I cost is mainly attributable to increase in depletion by INR 182 crores, depreciation by INR 55 crores, and impairment loss by INR 106 crores. The increase in depletion is mainly at Western offshore by INR 124 crores due to increase in cost of oil and gas assets and facilities by INR 31,360 crores, Ahmedabad assets by INR 31 crores, Assam assets INR 63 crores, and RJ-ON-90/1 by INR 84 crores due to increase in production and cost of oil and gas assets and facilities. The increase has been partly offset by decrease in depletion at Vashishta field by INR 47 crores due to booking of impairment loss last year and JV Ravva by INR 45 crores due to increase in reserves and reduction in production. The increase in depreciation by INR 55 crores from INR 931 crores in Q1 of previous fiscal to INR 986 crores in Q1 of this fiscal is mainly attributable to increase in depreciation by INR 28 crores due to addition of INR 1,433 crores worth of other plant and equipment, and increase by INR 23 crores due to increase in depreciation on ROU assets. There's an exchange loss of INR 86 crores in Q1 of this fiscal, as against exchange gain of INR 6 crores in Q1 of FY 2021. Corporate tax expense of INR 2,415 crores in Q1 of this fiscal has been provided as compared to INR 408 crores in Q1 of previous fiscal. The effective tax rate for Q1 FY 2022 is 35.78% as compared to 45.08% for Q1 of previous fiscal. The company at the consolidated level has earned a net profit, that is PAT, of INR 6,847 crores during the first quarter of FY 2022 as against INR 1,085 crores during the first quarter of previous fiscal. That's an increase of INR 5,762 crores, and in percentage terms, this is roughly 531% increase. The increase can be mainly attributable to the addition from ONGC, our subsidiary, OVL, and reduced losses at MRPL and a positive contribution from JV of OPaL. Let me also add here that for the second successive quarter, OPaL has been PAT positive. Well, friends, with this being the highlights, I finish my briefing of first quarter results of financial year 2021/2022. We'll be very happy to take questions from you. We would suggest you to restrict your queries on financial results only. Thank you very much, and we look for the questions. Thank you so much, Sir. With this, we will open the floor for Q&A interactive session. Participants, if you have any questions, you may please press zero and then one on your telephone keypad and wait for your name to be announced. I'll repeat. You need to press zero and then one to ask your question. First question of the day we have from Amit Rastogi from ABS Security. Your line is unmuted. Please go ahead. Yeah. Sir, thank you for giving me an opportunity. Sir, if you look at our gas output, that has declined both sequentially from the Q4 of FY 2021 and Q1 of FY 2021 as well, and similarly, oil output as well. Can we take this run rate as the now quarterly run rate to be analyzed for the coming years as well? Okay. Amit, any other question till I look for the support for this particular question in specific? Sir, second question pertains to the gas prices now. Obviously, we are looking for an upward revision from October 1. Do we have any estimates where can oil gas pricing go from October 1, 2021? Okay. I think I take the latter one, and I'll request my colleagues to answer on production front while I will give a generic answer. As far as gas prices is concerned, one is where we would wish to have them. That you know for certain is much higher than where we anticipate them to. Since they are regulated by a formula, and formula is valid and current as on date, and anybody, since data is out, probably they are to be north of $2.80 per MMBtu. From that's a healthy increase compared to where we are today of around more than $1 per MMBtu. That's what we anticipate, and this is consistent with something I shared at the time of declaring our annual accounts, where we anticipated that increase is going to be more than 50%-60%. That's on gas prices. I think as far as gas production is concerned, gas production in ONGC has been a victim of quite a few things. In fact, it has got affected because of the constraints of COVID, and there were, to start with, constraints. As you have noticed, there is little bit of lack of pickup in actually the production. In fact, actual, we had anticipated to produce 25.7 BCM in 2021/2022, but we ended up producing roughly 1 BCM less. The reason beyond the constraints because of COVID, actually was more to do with the offtake issues at the GAIL level. Next year, frankly speaking, today, we do not have very clear visibility about the way COVID will go. Secondly, about the timeline by when we will have the full production as anticipated from KG-DWN-98/2. I am sure this is going to be one of the follow-up questions from either you or somebody. KG-DWN-98/2, since its execution is affected by international supply chain, remains badly affected. To give you a sense, in different parts of the world, there are five contracts, and as the luck would have been, the relevant markets from where materials are being sourced are five different markets. Somehow it has been seen that when COVID has come down and is under control in one part of the world, it has gone up substantially in another. Today, if we look at Indonesia and Malaysia, where from critical components for the project are to come, actually those two, three jurisdictions are very badly affected. It takes all to combine together to make a project. There is no way, even if it is perfectly possible for somebody in Europe or Italy to supply the material, but if the rest of pieces don't get implemented. It's an issue. That's an ongoing thing, and as a result of it, while we had anticipated to produce 27 next fiscal, this from 24.7-27.3, I think we could end up somewhere in between. We might not reach 27.3 in entirety. Let me also remind, in 2021, what we produced was 22.81. 2021/2022, despite the hiccups of pandemic, we did produce 24.79. That was roughly an increase of 2 BCM, which should be considered substantial. In addition to this, as my colleagues are just mentioning, actually, Tauktae and Western Offshore has also been a disturbance for production. While we were able to continue the production, both oil and gas are substantially the same level. However, there was some impact, and that will also affect the numbers. Long answer to your short question. I thought let me address, preempt some of the questions from you and your colleagues. I understand it's a Saturday, so on your part also, there is a bit anxiety to have all answers upfront. Sir, thanks for that. Just a quick question on this. What was the issue with GAIL on the offtake side? Could you explain that? If you can help in that. No, whatever issue we had with GAIL had with its customers. At the end of the day, quite a few local industries had to stop the operations. As a result of which, the consumption stopped at the very lowest level, which actually combined together resulted in reduced offtake by GAIL. That was not a deliberate action on part of GAIL. Okay, Sir. Got it. Yeah. Okay. Thanks a lot, Sir, and wish you all the best. Thank you, Sir. Thank you. Next we have Pinakin Parekh from JP Morgan. Your line is unmuted. Please go ahead. Thank you. Sir, I have one question. If I look at the average realization of crude for the quarter at $365.50, the discount to the average Brent is slightly higher than what historically it has been. Any particular reason for that, Sir? As you would know, actually, see, we have principally around two-third production from Mumbai offshore, which is benchmarked to Bonny Light. In eastern onshore, actually, there is a very long list of oils which are used for the purpose of pricing. While Brent is a right reference to look at how realizations have happened, the exact parallel needs to be drawn with reference to Bonny Light, which actually affects our realization to a very large extent. Understood, Sir. Sir, just another question on the gas pricing. While you did mention that at this point of time, given where the formula is, it looks at more than a a dollar increase in the next price reset in October. Given the lag that we have in the pricing formula, and given where all the gas prices are globally, would you expect even a larger increase in the next reset in April 2022? I think, see, numbers for that are also partly available today. The trend suggests that it could end up being significantly higher. Since it's a numbers game, you can do it faster than me, and by all indications, actually, those numbers are likely to be significantly higher. Understood. Thank you. No, they're not. Yeah. Understood. Thank you very much. Thanks, Pinakin Parekh, for your question. Next, we have Probal Sen from Centrum Broking. Your line is unmuted. Thank you very much for the opportunity, Sir. Just a clarification on the first answer that you gave. The 24.7 BCM production, Sir, was in FY 2021, and the FY 2022 target is 27, and you're saying it will end up being between 24.7 BCM-27 BCM. No. Is that correct? Okay. Let me correct a little bit. Maybe I said that way. 22.81 is what we actually produced in 2021, and 24.7. Right Is something we intend to produce. I only flipped by 1 year, actually. The numbers I gave. Okay. Sorry, Sir. That's why I got confused. 24.7, Sir. Yeah. is the FY 2022 target, and FY 2022 target was 27, and we are saying we will end up being somewhere slightly short of that, likely, as of now. Yeah. Probably slip was attributable to get out of the corona period. You are anxious to get out of it one year ahead. Each one of us. Right. No, thanks for correcting. I think that will be very helpful. Yeah. No problem, Sir. The other question was, Sir, with respect to the subsidiaries in the OVL production trends that we see. Any guidance you can give on Sakhalin and Vankor? What kind of decline rate should we work with for the next couple of years? Because it has obviously been an older field, there's a gradual decline there. What should we be working with as a run rate, Sir, for the next couple of years from OVL? Probal, one is that Sakhalin started production in October 2005, and has been operating more or less at the same level. That's an impact too good to be true. There will always certain a time in the life of a field when decline, despite the best of efforts, cannot be contained. Having said that, actually, it will be unfair to take year 2021 as any reference for the purpose of predicting what kind of behavior the fields are going to have. It's an extremely constrained environment in which the people are operating in field. While Sakhalin project itself is not directly within the framework of OPEC and OPEC+ cut, actually, the overall intention to cut the production could end up being behind the thinking. Secondly, the oil prices were at ultra-low at a point in time, and whatever efforts are made by the project group at that level probably will bear the result during this period. The decrease in production has been sharp as far as Sakhalin is concerned previous year. I'm sure that is not a reflection of the kind of decline which one can build in. Obviously, at one or the other point in time, the decline will set in. Vankor, Sir? Vankor, actually, production has come down from 3.5 to 2.8. First quarter also, it is holding at around 0.69 MMT. Which actually, if one were to do a straight calculation, would also amount to around close to three. Slightly less than three, actually around 2.8 only. Yeah. With today's input, that's the likely run rate. Vankor is, unlike Sakhalin, is not at a stage where one can say that there is a natural decline needs to set in. This could be attributable more to the supply chain issues rather than the aging of the field logic. Okay. Sir, one last question, if I may. Overall CapEx guidance broken up into segments, if you have, for 2022 and 2023? Last year, if you remember, we had spent close to INR 27,000 crore. We started the year anticipating that we will spend around INR 32,500 crore. Corona, when it onset in April, May, we thought we will be able to do only INR 26 crore, but we ended up improving a bit on that. This year, rather than building a specific number, while for budget purpose, we have a number which is very close to INR 32 crore, actually, we also have certain scenarios where we can ramp up the activity. The number will be again, something like INR 30 crore-INR 32 crore. We have built two scenarios, in fact. The earlier figure which we worked out was INR 29,800 crore. Okay. The actual budget we approved later on was INR 32,500 crore. Number, if things improve, it much depends on the way things shape up from here. Effectively, you can take it from INR 29,800-INR 32,400. It's a question of the way the whole situation builds up. So the whole. That's the. COVID related supply constraints on KG, if they're resolved, then it will be at the higher end, Sir. Otherwise, it might get stuck slightly lower. Yeah. Is that a fair way to look at it? Yeah. Okay. Thank you very much, Sir. I have more questions. I'll come back in with you. Thank you so much for your time. Okay. Next, we have Sabri Hazarika from Emkay Global. Your line is unmuted. Yeah. Good morning, Sir. Sir, I have three questions. The first one is relating to OPaL performance. Can you quantify in terms of the profitability and utilization for the quarter, Q1? Go ahead with three. Give me time to think. Okay. Second one is regarding the court case with respect to KG-DWN-98/2 bidding round. What is the status of that? Third one is relating to. No. Can you repeat the second question? There is some litigation from GMR and GVK regarding the 98/2 bidding round. It was supposed to go to the high court or something of that sort. What is the status of that now? I'll request my colleague to address that question, second one. As regarding the court case, the matter was heard once, and it is still sub judice. No conclusion has reached so far. We are still pursuing it in the court. Bidding round is currently on hold, right? Regarding the 2 MMSCMD? Yeah, that's correct. There's two locations. Okay. As far as OPaL is concerned, we had anticipated that FY 2021 will be a year with 100% capacity utilization. In fact, it did cross for a few months more than 100%, but year-end average ended up being close to 90%, 89.5% to be specific. Below or very close to 50%. This quarter also, capacity utilization has been lower and while I don't have a specific figure in front of me, I think it is around 87% or so. Happy to share that in both the quarters, actually the last quarter as well as the first quarter, the company is in black. Any figure regarding the PAT? I think last quarter was around INR 270 crores or so, and this quarter is INR 65 crores plus Net PAT. Last year. Last year. Last year, last quarter, I think these were the two. Sir, 274. 274. That's Rajarshi. Always quick with the numbers. Okay. Thank you. 274 for which figure? 270, Q4 of previous fiscal. Okay. That was INR 274 crore, and this quarter is of INR 65 crore. Yeah. Okay. Sir, the last question actually pertains to your CapEx. More like your medium-term CapEx. Is the company trying to change the CapEx mix in terms of allocating some portion to, say, renewable energy or something of that sort? I think there has been talks regarding plans, since sizable plans in, I think, in farms and other kind of renewable sources. Are you planning to allocate certain CapEx on that side? Anything on that front? Okay. I can say actually two things on capital allocation outlook and plan going forward. One thing is probably, we have now nearly concluded our internal discussions and decided that we will be little more aggressive on exploration. Instead of remaining constant to the seven or eight basins where oil has been encountered, probably we may take bets outside them for the reason that while risk will be higher, the reward expected will also be higher. For this, we have changed our approach, and we are willing to build alliances with international majors to see that depending on the expertise and value they bring to specific scenarios, we can have them. That is on the exploration front. The second question pertained to? Renewables. Renewables. Yeah, you got it right. Actually, we have aspirations. We want to grow up to 10 GW. We are mindful of the transition in energy space taking place. We also are not in a searing hurry to do that on a tomorrow basis for the reason that since India continues to import a substantial portion of oil and gas, which it consumes. From marketing perspective or offtake perspective, there is no instantaneous challenge. Independent of that, in fact, renewables seem to be making lot of business sense today, and we are looking at possibility of inorganic investments in renewables where with the alliances, we could go into areas where beyond being passive investments, they end up or they help us accrete value to the overall business scenario. We, instead of saying that we are moving away from actually fossil fuels, which seems to be the clamor in some of the cases elsewhere, probably we will like to synthesize the two and build a stronger business context for ourselves by building and improving the standing of renewables in our overall business profile. Okay, Sir. Thank you so much and all the best. Also to add, something on renewables were to happen, actually no significant allocation is there in this INR 32,000 crore or INR 29,000 crore which I mentioned. There is only marginal allocation today. Got it. Thanks a lot. Please have a nice day, Sabri. Thank you, Sir. Next is Bharat Ranjan from Emtek Limited. Your line is unmuted. Thank you, Sir. This OVL, can you give us some idea as to under what conditions we can take a higher crude realization? Because last quarter, obviously, crude price globally went up and the realization has been largely flat. Under what condition we should look at a higher crude price and gas price realizations? No, actually, if you know that in case of OVL, actually, the crudes are priced against the local benchmarks and local practices. I'm not sure, actually, the oil price realization of OVL would have improved, definitely. That's one of the reasons for their improved performance. Improvement might not be that spectacular because all crudes have not moved in the same fashion. Their Q1 FY 2022 realization is $60? $65.59. $65.59. I don't exactly get the question, actually. Are you saying OVL realizations are lower? Yeah. It has not moved in line with the global numbers. $65, c ompared to last year, they realized in the first quarter, $28, now it is $65. Okay. Can you also? Huh? 4Q as well? What is in the comparison? Fourth. Could you please repeat your question? Sir, last quarter vis-a-vis the previous quarter. Okay. Immediately, last quarter, let me work out on that number. Quarter 1. I don't have that readily available. Maybe I'll request Prakash to pass it on to you. No problem, Sir. Thank you. Okay. Yeah. Please go ahead. That's all. Thank you. Okay. Hello, Sir. Any more questions, please? Yes, Sir. Should I take the next question? Yeah. Okay. Next we have Vidyadhar from ICICI Securities. Your line is unmuted. Thank you. Good afternoon to all. My first question is regarding your gas production. I think you were suggesting that you will produce around 24.7 BCM in the current year, while the run rate, if you take the first quarter and assume the same run rate, then it's actually going to be down YoY. What is going to drive the rise in volumes from where we are in first quarter to go closer to this 24.7 BCM, which we think you will do in FY 2022? A couple of things. One is that first quarter was affected by COVID. COVID constraints have continued. Secondly, as I told, was also Tauktae which affected the production from Western offshore. One is that in the period going forward, number 1, the production will normalize. That will be one uptick. Secondly, we anticipate that KG-DWN-98/2, at least three wells will start producing at full capacity. That's anticipated to be around three MMSCMD, which are the two reasons we anticipate the numbers to go up. Whether we'll reach a 24.79 in totality, on an average for the year, that remains to be seen, frankly speaking. Will you be up year-over-year at least? Higher than last year? Yes. Are you already seeing a significant improvement in July, August compared to last quarter? One is Tauktae related constraints are over, and COVID impact is also reducing. That's how July and August things are building up. Okay. COVID actually, frankly speaking, while this question is to me, the answer is with you all. A lot depends on the third wave, if any, if it comes. If it comes and it's severe, it may be very difficult to really get down back to this. If it is okay and the way we have been lucky now that the cases have reduced, probably intensity has also reduced. That may be a better scenario. Okay. A couple of more things actually which affected the production was also Heera plant shutdown, which was there for 16 days or so. There were certain issues relating to back pressure in 42-inch trunk line. There was some maintenance work on one process platform of Panna. There were a host of things. One thing happened, we took up another, or one thing triggered another. There were five, six minor reasons which contributed to the bigger decline. Okay. Now coming back to the KG. What is your current production of gas, which is entitled to this deep water gas price? How do you see that in the current year and next year? Where is exactly in terms of KG block, where are we right now? What about Vashishta, how are we doing? Are there any other oil and gas producing? Let me ask my colleague, OSD offshore, to answer this question. We are currently total gas price for two fields only. That is, 1one is Vashishta, as you are also mentioning, the other one is KG-DWN-98/2, wherein we have some production. Put together, these two is in the range of 0.6 - 0.7 million per day. We expect to increase gas production from KG-DWN-98/2, where the second well is expected to come online maybe this month end or next month. The third well would depend on the weather condition prevailing over there. We have a vessel over there to connect the third well, too. Again, the weather is picking up in the East Coast, too. These two are basically the field which are there getting the deep water gas price. If everything goes well, then when do you see KG to get three MMSCMD? If everything goes well, the KG should get three MMSCMD definitely by end of maybe this year. Three wells taken together, they are likely to produce slightly more than three. This year means calendar year. Okay. End of 2021. Okay. What about the plan of further ramp up in KG? Where do we stand on that? Is the COVID? Plan of ramping up production from KG, oil and gas together, we are planning to ramp up, say, by June 2022, from June 2022 onwards. Again, there are certain constraints as our CMD has just mentioned. I mean, the COVID situation is prevailing in Malaysia, prevailing in Indonesia, and part of even Europe, where some critical equipment are being fabricated, and in Malaysia and Indonesia, where they are being consolidated and the fabrication of the platform and the FPSO is going on. There in these two countries, there is severe restriction of the movement and in fact, the labor deployment also. Very frequently the yards are getting completely locked down because of some or other case coming up. That may impact still, but still we have a plan to commence and ramp up, rather, not commence, ramp up production by June 2022. I mean, for next fiscal, we anticipate it to be close to 3 BCM. Today, whatever constraints are talked about, we are keeping our fingers crossed in the sense that all these, we are taking note of whatever developments are there in terms of challenge to our production profile. We are reaching a stage where these restrictions could affect the production. Today, strictly speaking, if everything was to be okay going forward basis, then it's not a problem. We could still get three in next fiscal, 3 BCM, I'm saying. Yeah. If all goes well, you go to three MMSCMD, worst case by December 2021, and you do 3 BCM next year. Yeah. What about Vashishta? What is the outlook for Vashishta current year and next year? What about oil also from KG? Oil from? Oil from KG, June 2022. Oil from KG is again June 2022 when we are thinking of bringing FPSO on stream. As far as Vashishta is concerned, Vashishta well is now giving us around 0.3, 0.4. The other well which we got to intervene, some kind of intervention is needed. That still is maybe sometime middle of next year, not before. If also there again, if everything goes well, what could Vashishta be next year? Or it is going to be very small? May not be very significant. With respect to the KG-DWN-98/2, it may not be so significant. Still significantly higher than where we are today on Vashishta or no? Say again. Will it be significantly higher than where Vashishta is today? Will it be two, three MMSCMD or we're not going even there? As of now, we don't expect that kind of thing. Certainly, some of our exploratory effort in the 98 by two have very recently shown positive results, though we are still in the process of completing the existing drilled well, and thereafter, maybe we go for development of those positive aspects which we got, and we may get some good results there. Okay. Oil, if all goes well, what kind of production can we expect in FY 2023, KG oil? KG oil FY 2023 should be in the range of 45,000-50,000 barrels per day. Average of the year. Average is INR 36,000. Average would be less because. 36,000. Yeah. 128 million ton is what we anticipate. Sure. Now, just to confirm for FY 2023, you said that your production may be somewhere between 24.7 BCM-27.3 BCM for the gas. That's what you said earlier. Yeah. Yeah. On what you were talking about tying up with international oil majors. Just to clarify, even there, you are basically saying in overly explored or unexplored fields, you are likely to tie up with it, not in the fields where already they're commercial fields. You're talking of tying up mainly in those kind of fields where they are unexplored or overly explored, or in all kinds of basins? I think one is the technological based solutions we could look for any of the fields, including where we are producing. I think strategic alliances make sense even for those people. If we go to the new fields only, new area, new basins only, because then what we expect is a discovery of a size and scale. So it is more like a. Yeah. This will be basically, you will have mainly your partners in these acreages. Yeah. Okay. Last question on OPaL. OPaL, could you give us some numbers also on their interest cost and EBITDA in the current and the last quarter? Just a minute. EBITDA for Q1 21/22 is INR 969 crores, and EBITDA margin is 27%, compared to INR 1,190 in Q4 of 2021, when actually margin was at 32.41%. Margins were really good in fourth quarter of 2021. They were ultra low in Q1 of 2021. That's one. As far as interest is concerned, 2021, which is annual number, which is a fair indication, is of the order of around INR 1,700 crores. Any number for the current year, for current quarter? Current quarter? What? EBITDA is INR 960. No, interest cost. The interest is INR 458. Okay. Is there some changes likely whereby the interest cost could come down significantly? If that happens, when is it likely? Well, we have planned, part of which was in news, that we are thinking of increasing our stake. There is quite a bit of CCDs which are currently interest bearing, would be converted into equity. That would straightaway result into reduction in interest of the order of around INR 600 crores. More than that, probably what we think that if ONGC were to be on the steering wheel, it would further reduce the interest cost on the rest of loans also by good 2, 3 percentage points. Okay. Yeah, just to squeeze in one more question on OVL, what is the Profit Petroleum number for last year and first quarter, if you have that? I think I will request Prakash to share with you separately. Okay. Thanks a lot, Sir. Thank you very much. Please have a nice day. Next we have Nitin Tiwari from Yes Securities. Hi, Sir. Good afternoon, and thanks for giving me the opportunity. Sir, my question is related to Western Offshore. You mentioned that almost two-thirds of the production is coming from Western Offshore. In relation to that, what is the kind of decline rate we are observing there? In terms of results, what is the estimate for results in terms of number of years of production, if you can just help me understand that. Decline rate on an average in Western Offshore had been around 8% to 9%. In reference to the scenario through which we are going to raise our levels as per the target given by Ministry in adherence to Action Plan. Therein, if we look at the components from where those things are going to come from, so there are certain projects which are already under implementation. Major part is that. Second one are related to additional layer in the development schemes that have been formulated and later may explain in other detail terms. Additionally, whatever the bottlenecks are there in relation to line linkages and strengthening the infrastructure, pipeline replacement projects are also going on. All this would contribute to the increase, and it could be in line with the numbers which are there in the Action Plan. The numbers, if you want numbers, I don't remember right now with me, but numbers can be shared. I think notwithstanding the fact that individual field faces decline, with the help of supplementary investment, we are able to not only contain it, but increase it. Yes. Projections going forward Yeah. Just to supplement on the confidence note, the Bombay High exploration during the 2021 had been very successful. Exploratory success in that basin is of the order of 56%, which is not less than any other block. We are on a positive note. Right. If I have to basically, in a nutshell, understand Western Offshore, how do we foresee production from the fields over there? Whether we see it in terms of a constant decline every year, or shall we see it as a more or less of a stable production because there are few fields which are declining and there are few new production coming in from exploration. No, it's likely to be more of the latter, as you suggested. We would have enough supplementary investment to see that production is contained at existing level. Okay. Sir. The minimum. In the short-term period, this will be like this. New projects will come. Yeah. A period of five years. In any case, on an overall basis, despite what happens in oil and gas industry, we will be able not only to contain, but only take it forward. Right, Sir. Sir, in terms of KG-DWN-98/2, what is the peak production and what is the plateau period we are looking at? 98/2 peak production is of the order of somewhere in between 45,000 to 50,000 barrels of oil per day, and the plateau may be around three years or so. No, I'm talking about. Gas is. In terms of gas production. INR 15 million. 14.5. 14.5. For how many years, Sir? Yes. Two to three years, I think. Two, three years. Something around there. Yes. Right, Sir. Sir, my next question is related to basically ESG activism. Globally, we are observing that there's a lot of activism around adherence to ESG norms and reduction of carbon emission. A lot of oil majors globally are facing investor activism on this front. Have we also experienced anything of that sort, and what are our plans in terms of adherence in order to adhere to reduction of carbon emission and so on and so forth? If you can throw some light on that, Sir. ESG is a very recent phenomenon, but as far as ONGC is concerned, we always face the problem that we will not spoil plenty. In fact, gas flaring, which is one of the major concerns globally, in 1992, with the help of World Bank, we brought in a project of gas flaring reduction project in Mumbai offshore. Not necessarily dictated by the compulsions of ESG at that point in time, we wanted each molecule to generate revenue. Having said that, we are mindful of what is happening globally, we are working. One is that we have been very actively tracking our carbon footprint, which internally we have calculated and is reducing on year-to-year basis. Just to enter the next stage of taking stock of baseline, we are intending to hire a consultant and do the study. The second thing I may add, that ESG concerns are exactly not same for every company, even in the same sector. If you really look at when ONGC produces gas in India, it actually could end up in the kitchen of somebody and help replace the firewood or cow dung. The impact of the same product in case of ONGC could be materially different from somebody who's doing it for purely commercial reasons and exporting elsewhere. Notwithstanding that, we are doing a lot on carbon sequestration. We are going for CO2 EOR. CO2 EOR. CO2 EOR. In terms of capturing the fugitive emissions on waterfront also, we are quite mindful and calculating, reducing our water footprint. Global Methane Initiative, we are very actively associated with, and we are also using micro turbines for the purpose of converting the small gas, isolated gas, into the electricity to run our projects instead of flaring them, which had been the case earlier. We are taking lot of efforts. We will have a much upgraded plan soon, where we'll be able to tell you in more detail in near future. Sure, Sir. Thank you so much for taking my questions. Have a good day. Okay. Same to you. I think we can have one more question. Please. Sure, Sir. Next we have Swapnil from InCred Capital. Your line is unmuted. Yeah. This is Swapnil. Am I audible? Yeah. Okay. Two questions, Sir. First is your latest presentation gives not only the projections for one or two years, but say, let's say, 2025, in which you have talked about gas production going up to 4.55 BCM and oil production going to 27. Notwithstanding whatever conversations we are having in terms of some issues on COVID and stuff like that. Yeah. currently, how seriously should we be taking this longer-term jump of something like 35 BCM for gas and 27 for oil? Okay. A couple of things. Actually, our near-term plans are affected more by COVID. Over a period of time, one can figure out how to manage even if COVID continues. In fact, we believe that COVID is not going to disappear anyway. Only maybe we would need to learn as to how to continue to operate along with this and probably manage it better. That is one thing. Secondly, I think very clearly what my colleague shared was where we aspire to be. We want to have 70% share in overall production, 65%-70%, and 65% is what we are planning. For oil, the number is 40, as far as the country, MoPNG has kind of adopted that, so 26 MMT. Very clearly, let me share it here openly, that actually, this also factors in what we need, how much of YTS we need to have to achieve a figure of that kind. It's not necessarily coming out of all the discoveries or all the production we have as on date. It also has some contribution from YTS. Same is the case with, I think in oil front, actually, the YTS. Gas. Oil front, it is close to one MMT comes from that. In case of gas, also very similar, 1 BCM - 2 BCM. In fact, 2024/2025, 2.1 BCM comes out of that. In oil, actually in year 2024/2025, 1.5. With the kind of numbers we talked about, there is a gap, and that gap we need to build from YTS, 1.5 in oil and roughly two or so, 2.1 actually, 2 BCM in gas. If you were to say confidence, relatively 100% confidence for the figure, -2 as on date. YTS, as we have seen, the way we have historically converted, in fact, the plan is only a little more conservative than what we have done over a period of time. Great. Thank you. Second question relates to, again, the comment that you made in terms of tie-ups with global companies. Actually, even from a global framework, the fact that you have 100% stake in 98/2 is probably an outlier in terms of not sharing risk with other players. In terms of this whole strategy about trying to get more people on board to share the risk, what I'm trying to understand is how contingent are the plans to sort of go aggressively on exploration? Are they really dependent on getting these partners? I.e., if the international environment continues to remain poor and nobody's willing to join you, would you still take those risks, or would you sort of pull back a bit then? As far as these projects are concerned, we are going ahead irrespective of whether some partner comes or not. I think KG-DWN-98/2, if we were to be willing to discuss about it, one of the reasons would be it would offer a size and scale. Other discoveries or other projects which we are intending to take up in next two years are not of, probably, size and scale in which an international participant will be happily wanting to come along. That's the reason. Neither it is yes or no. It's not black and white. It is actually, we think that it does not fit in with the strategy of some of these big players. KG-DWN-98/2, yes. Both from technology perspective, it is a win-win, as well as it gives the size and scale, and it is a project which is there for anybody to see, and it's readily available. Rest of the discussions with the international majors are contingent upon being able to identify something of interest. Now, we know for certain some of the big names are interested in some specific place. The discussions are going on. We know that some of these entities are also curtailing their investments on upstream. India also has a distinction of being a huge market, and that could be an attraction for them to have a slice of such a large market, and that's a motivation for them. In the kind of basins, as we keep on discussing, they have had tested successes in similar basins, analogous basins elsewhere. We are looking partner on a case-to-case basis. We are not necessarily looking for partner to bridge the investment gap or the risk gap. It is actually the alliance which we are more interested so that they bring in value, their international knowledge of similar basins where they have succeeded. We have some parties, the globally best parties, talking in terms of specific basins. Perfect. Thank you so much, Sir. Thank you very much. Sir, I would like to now hand over the floor back to you for the final remarks. Thank you very much. Thank you in person and all the colleagues on the other side of the call. I do appreciate that you have taken your time off. We have taxed you by inviting on Saturday, and we specifically appreciate and thanks to you once again on behalf of me, my colleagues here, and ONGC. Thank you very much. Please have a nice day. Thank you so much, Sir, for addressing the session. Thank you, participants, for joining in. That does conclude our FY 2022 earnings conference call of ONGC Limited. You may all disconnect now. Thank you, and have a pleasant day. Thank you. Thank you, Sir.