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Oil and Natural Gas Corporation Ltd
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Good evening, everyone. Thank you for standing by, and welcome to third quarter financial year 2018 earnings conference call of ONGC Limited. [Operator Instructions]So without any further delay, I would like to now hand over the proceedings to Mr. Subhash Kumar, Director, Finance, ONGC. Thank you, and over to you, sir.
Yes. Good evening, everybody. First of all, I apologize for the little delay. It was due to the continued discussion at the board level.So as -- by way of introduction, I am Subhash Kumar, Director, Finance, ONGC. And ONGC -- on behalf of ONGC, I take this opportunity to welcome all of you to this earnings call. As you would know, I've joined recently on 31st of January. And previously, I was Director, Finance, at Petronet LNG. Before -- prior to that, I was at ONGC since 1985.So thank you all for joining us for the call. I'm joined here by my colleagues: Mr. Patel -- Mr. A. R. Patel, ED, Chief Corporate Finance; Mr. Yash Malik, ED, Chief Corporate Planning; Mr. A. K. Bansal, ED Chief Corporate Accounts; Mr. V. K. Saxena, ED Chief Commercial Advisory. My colleagues from ONGC Videsh Madam Rekha Mishra, Mr. Chaturvedi and Mr. Sarkar and Mr. Prakash Joshi from Investor Relations and Mr. Bharti from Corporate Accounts.Now financial results for the third quarter and 9 months ended December 2017 have been taken on record by ONGC's board today, that is 9th of February 2018. The financial results have been released through a press note and sent to stock exchanges. This has also been sent to the analysts who are there on our mailing list. Let me give a synopsis of the results.The company has earned profit after tax of INR 5,015 crores during the third quarter of FY '18 as against INR 4,352 crores during the third quarter of FY '17. This translates into an increase of INR 663 crores, which is a 15.2% increase. The profit after tax for 9 months FY '18 has also increased from INR 13,559 crore in 9 months FY '17 to INR 14,030 crore in 9 months FY '18, which translates into an increase of INR 471 crores. And in percentage terms, this is 3.5%.The increase in net profit during this quarter is on account of increase in sales revenue by INR 2,985 crores and other income by INR 269 crore. This is partially offset by increase in operating expenditure by INR 392 crores, exploration cost by INR 241 crore and DD&I cost by INR 916 crore. The increase in PAT in 9 months FY '18 is also due to increase in sales revenue by INR 4,804 crores and other income by INR 904 crores, which is partially offset by increase in operating expenditure by INR 665 crores, exploration cost by INR 1,125 crores and DD&I cost by INR 2,241 crores.The sales revenue for Q3 FY '18 has increased by INR 2,985 crore, an increase of 15% at INR 22,919 crores as against INR 19,934 crore in the corresponding quarter of the previous year. Similarly, sales revenue in 9 months FY '18 has increased by INR 4,804 crore, an increase of INR 8.6 crore, from INR 55,891 crore in 9 months FY '17 to INR 60,695 crore in 9 months FY '18.The sales revenue in Q3 has increased on account of increased sales revenue from crude oil by INR 1,826 crore, increased sales revenue from natural gas by -- that INR 1,826 crores was on account of crude, INR 330 crore on account of natural gas and increased sales revenue from value-added products by INR 821 crore.The sales revenue in 9-month FY '18 has increased on account of increased sales revenue from crude oil by INR 3,646 crores and increased sales revenue from value-added products by INR 1,624 crore. However, this increase in sales has been partially offset by increase in revenue from sale of natural gas by INR 404 crores.The gross billing for crude during the third quarter of current fiscal was at USD 60.58 barrel -- per barrel as against USD 51.80 per barrel in the same period of last year. That's an increase of around 16.95%. The exchange rate of rupee versus dollar, however, stood at INR 64.74 versus INR 67.46 in third quarter of FY '17. Thus, realization for crude oil in rupee terms stood at INR 3,922 per barrel in Q3 FY '18 vis-à-vis INR 3,495 per barrel in Q3 FY '17, translating into an increase of 12.22%.Similarly, gross billing for crude during 9 months of current fiscal was at USD 54.29 per barrel as against USD 48.65 per barrel in the same period of last year. That's an increase of 11.60%. The exchange rate of rupee versus dollar stood at INR 64.59 vis-à-vis INR 67.12 during FY '17. Thus realization for crude in rupee terms stood at INR 3,501 per barrel in 9-month '18 -- 9 months FY '18 vis-à-vis INR 3,265 per barrel in 9-month FY '17. That's an increase of 7.23%.The amount of profit petroleum has decreased by INR 22 crores from INR 557 crores in Q3 FY '17 to INR 535 crore in Q3 FY '18. However, the amount of profit petroleum has increased by INR 21 crores from INR 1,530 crores in 9 months FY '17 to INR 1,551 crores in 9 months FY '18.The operational expenditure has increased by INR 392 crores. That is 8.2% from INR 4,758 crores in Q3 FY '17 to INR 5,150 crores in Q3 FY '18. The increase in Q3 FY '18 OpEX is mainly on account of: increase in staff expenditure, which is INR 133 crores; work-over operations, which is INR 95 crores; transportation and freight of product expenses INR 157 crore; CSR expenditure, INR 78 crores, which were offset by increase in the consumption of material, it reduced -- sorry, decrease in consumption of material by INR 146 crores; transportation -- transport expenses by INR 41 crores; repair and maintenance, INR 90 crores; and contractual payments, including hiring charges, INR 43 crores.Similarly, the operating expenditures in 9-month FY '18 has been increased by INR 665 crores. The increase in 9 months FY '18 is mainly on account of the increase in staff expenditure INR 275 crores; work-over expenditure, INR 212 crores; water injection, INR 54 crores; contractual payments, INR 40 crores; transport and freight, INR 245 crores; and CSR expenditure INR 157 crores, which were offset by decrease in consumption of materials to the extent of INR 247 crores; transport expenses INR 185 crores; car and fuel INR 31 crore; and repair and maintenance contributing INR 179 crore in this decrease.DD&I cost for Q3 FY '18 stood at INR 4,256 crores as against INR 3,340 crore in Q3 FY '17, an increase of INR 916 crores, that is 27.4%. The increase in Q3 FY '18 is attributable to increase in depletion by INR 783 crores, depreciation by INR 43 crores and increase in impairment by INR 90 crores. Similarly, there is also an increase of INR 2,241 crores, which is 24.9% in DD&I cost during 9 months FY '18 from INR 8,985 crores in 9 months FY '17 to INR 11,225 crores in 9 months FY '18. The increase in 9 months FY '18 is attributable to increase in depletion by INR 1,914 crores and depreciation by INR 70 crores.The major increase in depletion during Q3 FY '18 by INR 676 crores and during 9 months FY '18 by INR 1,387 crore in -- at Mumbai offshore, mainly due to additional capitalization of facilities, that is decreased capitalization of wells and on account of increased production at Bassein field. Further, there is increase in at Panna-Mukta field on account of revision in abandonment provision. There's an increase of INR 241 crores. That's 17.7% in exploration cost written off in Q3 '18 from INR 1,365 crores to INR 1,606 crores in Q3 FY '18. The increase is mainly on account of our exploratory billings at [indiscernible] charged off by INR 322 crores in Q3 FY '18, which is partially offset by decrease in survey cost by INR 81 crore.Similarly, during 9 months FY '18, there is also an increase in exploration cost written off by INR 1,124 crores, that is 39.1%, that is from INR 2,872 crore in 9 months FY '17 to INR 3,996 crore in 9-month FY '18. The increase is mainly on account of higher exploratory billings expenditure charged off by INR 1,135 crores in 9 months FY '18.During Q3, FY '18, the statutory leverage stood at INR 5,344 crores as compared to INR 4,844 crores in Q3 FY '17. That's an increase of INR 500 crores. And in percentage terms, this is 10.32%. Similarly, the statutory leverage have also increased by INR 960 crores, percentage terms 7.20%, that is from INR 13,374 crore in 9 months FY '17 to INR 14,334 crores in 9 months FY '18. The increase is on account of increased weighted average price of crude oil.Well, friends, with this, I finish my briefing of the third quarter results for the financial year 2017/'18. We'll be very happy to take questions from you. We would request you to restrict your queries on financial results only. Thank you. Thank you very much and look forward to your questions.
[Operator Instructions] First question of the day we have from Probal Sen from IDFC Securities.
Yes. We actually don't really have the, I think, production details uploaded as yet. So, can I get a sense of the oil and gas production levels for the quarter?
Yes, just a minute. So I think the crude oil from nominated fields FY '18 is 15.768 MMT as against [indiscernible] during the previous year. Condensate is 1.08.
Sorry, sir, I couldn't hear that. If you repeat that, please?
Crude oil, nominated fields is 15.768.
This is for 9-month period, right?
Yes, yes. Condensate is 1.080. [indiscernible] 16.848, and crude oil from JV and [indiscernible] is 2.385. So the total figure for ONGC is 19.233.
All right, sir. And for gas?
Gas nominated field 17.651 BCM and from JVs it is 0.882. So total is 18.533.
Right, okay. Sir, just a couple of questions, and I'll check the presentation later. In terms of the guidelines that we have to our deepwater fields, are we still maintaining our guidance as far as production startup is concerned from all the Eastern offshore developments, as of now?
Yes, I think, specifically -- I mean, these are large projects. The time lines goes here and there a little bit. But right now, we think we are on track. And also request [indiscernible] if there is any specific thing in addition to us.
So in 98/2 project means already activities are going on. The tender is under the process, and we are going to [indiscernible] this tender by March end, main tender for this facility and -- that year. So there may be some delay, but we are also planning to do early monetization by diverting some of the wealth to the existing S-1 Vashishta facility. And we have already rescheduled and we're planning to start the drilling by next month. So once the billing is completed and subsea equipment are recruitment in installment, so we will put that 4 wells in early production to our existing S-1 Vashishta facility. So we expect to start production from 1920 as predicted, but there may be some staggering of production. System production will start from 12th and that production will start from subsequent wells a little late.
Okay. And sir, the other question I had was with respect to the -- just the balance sheet as of 9-month. After the payout for HPCL, can we get a sense of -- on the consolidated level, what is the group debt, gross and net?
Okay. So I think, that's something -- this is a work in progress. Right now, what we have prepared is around [indiscernible] But that is an increase of debt by INR 25,000, but was there at pre-net.
Correct. So what we know is we have debt level which does not change materially. You know what is there in MRPL, you know what is there in HPCL. Additionally, there are also that we have borrowed about INR 25,000 crore at ONGC level, so that is [indiscernible] providing for the part value extent of shareholding, you would know what is likely to be the consolidated figure.
Right. So if I -- forgive me, FY '17 and FY -- my gross debt number at group level, I think, is somewhere around INR 55,000-odd crores. [indiscernible] 2, 3 years, we have added around INR 25,000 crore to that level?
INR 25,000 crores.
Yes, yes. That is at ONGC level, and it would also be some debt coming from HPCL also. Whatever it be the numbers, like this.
Next question we have from Nilesh from HDFC Securities.
Sir, for this quarter, depreciation has gone up significantly. And as you mentioned, depletion is the main reason behind that. Can you elaborate the number for depletion during this quarter? And why depletion has gone up significantly?
So I'll request Mr. Bansal to answer in specific, but I did mention in my speech about additional capitalization which have taken place. So that's one of the contributor.
This depletion has gone up during the quarter, largely because of having capitalization of well platforms and facilities. Moreover, there is a decommissioning provision. The net present value of decommissioning provision has gone up. As a result, the -- this has a direct impact on depletion by INR 186 crores in this quarter. So basically -- and there was more production from Bassein field and from one more field.
Cluster 26.
Cluster 26. So this has also added to the increased depletion. You'll find, however, this production numbers have gone up as compared to the previous 9 months impairment. So this has been instrumental due to increase in depletion.
Sir, if I look at sequential decline in the number of other income, it has gone down significantly. Any specific reason?
No. Which number?
Sir, Other income.
So other income [Foreign Language] in fact, the dividend income, we are saving in the second quarter, okay? There were huge about INR 880 crores [Foreign Language] additional dividend income in the...
Last quarter.
Last quarter -- second quarter. This is not there in this quarter.
MRPL, IOC.
MRPL and IOC. That's Q-on-Q Q2, quarter-over-quarter. Okay?
Next, we have Pinakin Parekh from JPMorgan.
Just 2 quick questions. The first is the total DDI expense of what we have depletion, depreciation impairment, is this a steady-state going forward, given that you mentioned that there is -- it's been driven by capitalization of assets? Or will some of this fall off into the next few quarters?
See, depletion, as a function, it -- it's a function of production results, okay? Whatever is the cost provided by the results, it gives me the depletion there. And one of the constituents which I explained the provisioning -- decommissioning cost. So decommissioning cost is -- these are significant. These are to be taken at the net present value. Due to increase in the inflation rate, the decommissioning present value cost has gone up, which has added to the depletion for this 9 months period. So this may not be there in the fourth quarter.
Understood. And sir, if you could break up, what was the decommissioning component of this depletion expense for this quarter?
Actually, it's a function -- depletion is a function of 3 points. One is the well cost, decommissioning cost and the facilities cost. So this is not broken otherwise. This is just because we had to change this factor during this third quarter. That's why you had this impact here.
And the [indiscernible]
I will just explain. In the last year, the inflation rate was 3.8%. And during this December, it is 5.2%. And similarly, the yield [indiscernible] excluding. Last year, it was 7.12%, which has gone up to 7.63%. So as a discounting factor, effective discounting factor has reduced, which has increased the present virtue of decommissioning cost. And this has impacted the depletion.
And by around [indiscernible].
And the impact is for 9 months.
Understood, understood. And sir, my second question relates to this entire HPCL thing. Now we -- I mean, in terms of strategy, I guess, it's too early. But going forward, sir, can we expect some monetization of the investments that are held on the books to fund this investment, given that there is a lot of media reports suggesting that ONGC might pursue that?
So at this stage, what we are discussing is accounts. And investments, we have not thought of at this stage. Those are not the subject matter of discussion here.
Next, we have Avadhoot from CIMB.
Yes. The first question relates to your lifting costs. There has been quite a sharp increase in lifting costs in the current quarter on a absolute basis, on a per ton basis. This is compared to the first 2 quarters. So is there any explanation? Or is there any normal cost increase that is to be expected? Just to look at other expenses, okay, which is what INR 4,191 crores in this particular quarter.
Just 1 minute. Actually, see, part of this is attributable to work-over expenditures, the benefit of which you will get over the coming quarters also. It is not necessarily relatable to just one quarter. That is one of the major contributors for increase in the amount.
There are roughly over more number of work-over [indiscernible] during this quarter.
So am I -- so can I then assume that this number will drop in the fourth quarter?
Depends on the [indiscernible]
But the benefit [indiscernible]
Yes, can I -- okay.
See, there are few increases other elements also. There's a little bit of increase in the manpower cost. There is a bit of increase in repair and maintenance and also in other production expenditures.
No, no. Actually when we compare with the 9 months, it will be [indiscernible] Q3, Q2.
No, no. Let me put this into context to understand.
Yes, yes. That would be good.
Given the fact that there is a global depletion on the cost environment that the savings in terms of lower rig rates and stuff like that, I was trying to understand how much of that even reflected in your accounts. And is it possible there is actually, it's there and the same as earlier, okay, I want to increase. And is there depletion service cost quarterly coming through in terms of your numbers?
So there could be broadly -- not going into specific, the cost could be categorized into 2 categories broadly. One is those are -- those which are E&C cost and those are general administrative and overhead costs. So for example, cost relating to manpower. Now there is a trend of reduction, which we have also experienced as far as the costs relating to E&P are concerned. Now specifically, coming even with the [indiscernible] come to the elements like work-over, which we were talking about. Now based on the opportunity to [indiscernible] people, we have tried to increase the number of work-overs so that we get benefits over extended period of time. That is -- so this is it that while per unit rates could be coming down since effort in some of the areas is going up even in E&C we could see the cost increase. That is one. Secondly, the cost of [indiscernible] like manpower. Now both have gone up. And as you would also know this time, we have additional impact of the pay revision, which happens every 10 years. So that is also getting calculated plus here. So this is overall statement. Part of it may contribute, part of it will not compete. So -- but right now, this particular quarter of 9 months will not be a representative basis for taking the future costs. But what exactly is going to be, we'll also get that assessment in days to come.
Okay. Sir, my other question was in relation to near-term production numbers. Okay. I think in the last call, we have mentioned that Vashishta was expected to complete in November and sort of additional production flowing from there. Could we have an update on that? And more specifically, it's possible to reiterate your guidance for production for FY '18 and FY '19?
Vashishta, there is a slight delay, and we -- from quarter 4, we -- kind of quarter 4, we'll start our production. And also --
Okay. Avadhoot, to add to sir told, [Foreign Language] basically we were running 3 wells over there. All the 3 wells are done with, okay? And we are -- from one well, we are already getting some production. And the next 2 wells, basically, they will be put to production in -- by next month basically. And we would be getting almost 2.5 MMSCMD by the end of the quarter. And by June/July, we are expecting to ramp this up to 5.
Nothing specific. I think in the Last call, the guidance given for FY '19 production, okay, specifically -- I mean, I can give you the numbers of what was said on the call. But is it possible to know what is the current number for FY '19, split into how much from own and how much from JV and -- for oil and gas?
Yes, yes. See, for FY '19, our production target is 25.93 million, out of which 22.85 million from our own and 3.08 million from JV. And some [indiscernible], our target is 26.2 and JV is 1.18 and global is 27.38.
So next we have [ Amit ] from UBS Securities.
Yes. And my question also pertains to the volume growth only. So we have mentioned 27.38 as the production target for FY '19. So could we get slightly long-dated volume numbers? Because being a largest ONGC upstream company so -- and government focusing on the gas sector particularly, sir, we should have drawn a longer-dated plans, like what are the numbers we are expecting in FY '20, '21, '22 So, if those details can be shared. And if you can give us a progress update on the 8, 9 projects, which have been shared during the analyst meet that what is the status of each of that project broadly that if those projects running on time or slightly delayed. And still we expect the similar production level, which has been mentioned in that turnout.
So I think some broad idea was the likely production figures can be given at this stage as far as individual project is concerned. That discussion can be better. But I think [indiscernible]
Yes, we can discuss later. I think that may not be the right forum. And you can just guide broader numbers, yes.
Numbers, we have already given this FY '19 number. FY '20 number, we have projected around 32 BCM. That is subject to our -- this 98/2. So the 98/2, if there is some delay, then this number may also change. So we cannot give a firm number at this date because there are lot of uncertainties involved in this.
Sir, how much number we have projected for 98/2 in this 32 BCM?
You can still. Yes. That is almost 9 MMSCMD.
[Foreign Language] BCM [Foreign Language]
Around 3 BCM.
Around 3.2 BCM.
Around 3.2...
That is in 34, okay?
Okay. That is in 34, Okay?
32, 32. ONGC stand-alone.
Yes. 32 BCM ONGC stand-alone, and which includes the numbers of 98/2 as of now, but we can do the right match to exclude 9 MMSCMD. And sir, similarly, what's the number on the oil side?
Oil side, there is not much increase. Oil side in FY '20, our target -- total target is 26.28, out of which 2 is from JV and balance is from ours.
Out of which, sorry, 2 is?
2 is from the JV.
Okay. So do we expect that significant decline in JV because FY '19, our JV estimate is 3.08 and...
Here again it is not [indiscernible] is not certain. So the discrete [indiscernible] the current level of expectation. But if the extension takes place, then there may be some upside.
Okay, okay. And yes, sir, and on the -- maybe can I ask something on Bangkok or we can leave it for later?
Later. We'd leave it for later.
Okay. And the third one is the GSPC. So after the acquisition of GSPC, so now what are the production numbers we're looking at from that asset. And has it started producing or not?
As I mentioned already to [indiscernible]. And there we had [indiscernible] and then, drills and we'll be coming up with it.
Okay. So it will be going for a revise at DP now.
Yes, that is right.
And sir, what is the estimated CapEx in that?
See, once it is prepared, we will come to know, but it is not done.
Next, we have Vishnu Kumar from Spark Capital.
So just on the depreciation -- I mean, the depreciation and depletion part again, just wanted to get a sense. You mentioned that INR 186 crores is on account of NPV on decommissioning. So this is more of a onetime and this is unlikely to continue. Is that right?
No, no. [indiscernible] See, as per the IND AS, the new accounting system [indiscernible] made mandatory last year. Hello?
Yes. I can hear you.
The decommissioning laboratories are to be discounted, if these have materials, okay? These are to be discounted. These are to be taken at the present value for calculation of depletion, okay? So we did that on 31st March. At that point of time the difference between the insertion, and the yield was some 3%, okay? Now during this 9-month period, the inflation rate has gone up. It is now 5.21%. And the 10-year growth, Government of India is -- it is [indiscernible]. So the difference between the 2 has come down as compared to the previous period. the net present value of the decommissioning provision has gone up. So this has escalated the rates of depletion. Okay?
Perfect. Okay.
And, for the work, there will be depletion due to increase in production in 2 of our fields. I'll just give you the numbers. Okay?
Yes.
In respect of Bassein Field, there will be increase in depletion by INR 177 crore, due to increase in production from 0.318 MP to 0.54 MP -- MMP. And in respect of cluster field also, there is increase in depletion. So all this is added. Moreover, there is a addition to the platform, and some impact for the 9 months' period had come during these 3 months. So this will not happen in the fourth quarter.
Okay. So that is exactly the question I was asking because your INR 186 crores is from 9 months. So if I take on a quarterly assuming this discount rate gap continues, we have a INR 60 crore recurring impact. My only other question is that are there any 9-month load that has happened in the current number, which you have shown depletion as INR 3,800 crores. So apart from this INR 186 crores, which I've mentioned, is there any number that is -- that represents 9 months -- for 9 months? That's all it.
Then we have to work out the depletion. We have to work out as at the year-end, okay, for the 9 months of a period. For the 3 months period, this is a balancing figure.
Okay, sir. Fair enough. Sir -- and just a few questions on oil if I may ask? There is a news that the Mozambique Government has approved [indiscernible] investments and -- so just wanted to get your thoughts on that.
Could you please repeat the question?
There was a news article stating that the Mozambique Government has approved the LNG project with Anadarko leading the project, they approved -- I mean, the Mozambique government has approved. So how do we proceed from there? So just wanted to get your thoughts on when we will be likely to be investing the amount?
Just a minute.
I think the reference is to be plan of development, which was submitted by the consortium partners to the government. And it has been awaiting the approval of the Council of Ministers. And so far we do not have the official complications from the Government of Mozambique. So it will not be fair on our part to make an official announcement of that.
Before which we [indiscernible]; However; It should be distinguished that approval of plan of development is different from a FID, which FID will -- is correctly aimed to be taken towards the end of the year 2018.
Okay. So end of the calendar year you'll be taking FID? Got it. Sir, and is there...
I mean, there are so many things which need to be happen before this happening -- actually is taken, but right now the plan is that, that's the time line within which their studies should be up.
Okay. Fair enough, sir. Sir, and just one final question on your CapEx plans if you can tell us on the stand-alone business?
So our read for 2017/'18 is INR 29,968 crores, and our...
'18/'19 with you? '18/'19.
'18/'19 is likely to be at about 10% added apparatus on the INR 32,000 crores.
Next, we have [ Sabri ].
Yes. I got 2 questions. The first one is that you have mentioned that the Vashishta S-1 field will be starting production of around 2.5 MMSCMD, and it will go up to 5 MMSCMD. So beyond -- so currently, your production in the third quarter was around 65 MMSCMD. So it could go to around 17 MMSCMD is the right way to look into it?
Could you please repeat the last part, [ Sabri ]?
I mean, it should go from 65 to 70 MMSCMD, right?
No, no. Presently, the production is 0.8.
No, no. He's talking at the company level. I understand the question is at the current production at the company level is 65 MMSCMD. That's what you are saying and [indiscernible] will it be 65 plus 5, 70?
Yes, yes.
Just one minute. The rank protection is already 65 MMSCMD. By the end, already these other fields, it should go up to 70 MMSCMD.
Yes, yes. That's what. So you're confirming it.
Yes, yes.
You are confirming it. 65 plus 5, it could be that, 70 MMSCMD. So it will be. I think your assessment is correct.
Okay. And second is, this gas -- the pricing of this gas will be based on biding, right? So it would be getting higher price similar to say near to the feeding price of around $7 on an [ MCE ] basis?
Presently, we are getting 5.05. Now we have put it on central, let us see what type we would be getting.
But you are right. This piece is eligible for that marketing and pricing freedom, but the price will be discovered through the process.
But you did right now. It's about $6 and it could increase or go up to $6.5. So that's the feeling. And once we'll be asking some discount on the -- to tender, let's see what best price we can get.
Okay, sir, roughly, $6 [ GCE ] price could be -- is double to take for this gas, right?
Yes. Perfect.
And second thing is, sir, you have...
You see, our [MCE ] IT will be in excess of $7.
Okay, it will be -- okay, okay. Fine. And second thing is after version plus one to be 98/2, do we have any more projects getting commission?
[indiscernible] Basically, the addition would be from Daman.
Okay. And what will be that amount? And...
That could be in FY '19. It would be at...[Audio Gap]
Hello? Hello?
Hello. Is that question done?
Yes, yes.
Okay. So there are no further questions in the queue. You want me to announce it, again?
Yes, you can announce.
Okay. [Operator Instructions]
I think there's no one.
No indication as of now.
Yes. So since the -- on behalf of ONGC Management, on my personal behalf as well, we thank you very much for this effort, and thanks everybody who has participated in the call, and thanks for your continued interest in ONGC. We'll look for your interest and support. Thank you. Thank you very much.
Thank you so much, sir, for addressing the session. Thank you, participants, for joining in. That does conclude our conference call for today. You may all disconnect now. Thank you, and have a pleasant evening.