The company recorded oil production of 26.5 mt, narrowly missing the target for the year. However, the production of all the value-added products (LPG, C2-C3, naptha, kerosene, etc.) put together was 3.5 mt about 10 per cent higher than the target for the year. Its LPG production was at an all time high of 1.18 mt. The company also supplied 18,414 million cubic metre of natural gas to consumers. This does not include 995 million cubic metres of ONGC's share in the gas supplied from joint venture fields.

According to a company release, lower oil production was partly due to the deliberate measures adopted by the company to maintain the health of the reservoirs and to obtain higher ultimate recoveries in the wake of soft international oil prices. ONGC's share in oil production from joint venture fields hasbeen about 1.2 mt which is higher than the preceding year.

The highlight of the year was ONGC entering into strategic alliance with the Indian Oil Corporation for undertaking projects in upstream and downstream sectors. The two companies swapped 10 per cent equity for achieving greater operational synergy.

A similar move was initiated for the gas business. ONGC acquired 5 per cent equity in GAIL.

The company is also gearing up to form new alliances and partnerships with E&P companies of complementary strengths to bid for blocks offered under the new exploration licensing policy as well as to acquire equity in oil and exploration acreages overseas. The public sector giant is also pursuing its deepwater exploration plans for frontier areas.

For cost optimisation and technological upgradation, ONGC took up initiatives like rigless workovers, drilling of multilateral and side track wells and application of new completion techniques.