Report of the Comptroller and Auditor General of India on Crude Oil Production Measurement and Reporting System in ONGC
Audit Report No.21 of 2016 of the Comptroller and Auditor General of India (C&AG) is on the audit of Crude Oil Production Measurement and Reporting System in ONGC. Following a report on over-reporting of crude oil production in Ankleshwar Asset, an audit of the crude oil measurement and reporting system across Assets of ONGC was taken up. Audit was conducted in nine out of thirteen crude oil producing Assets (offshore and onshore) owned by ONGC covering the period from 2010-11 to 2014-15. The main objective was to obtain reasonable assurance that ONGC has robust system for measurement and reporting of crude oil production, and to estimate the impact of inaccurate measurement and reporting of crude oil production, if any. The Report brings out deficiencies and anomalies in the crude oil production measurement and reporting system, which resulted in overstatement of production figures of crude oil reported by ONGC. This presented an inaccurate measure of the Company’s performance and led to additional subsidy burden to the Company.