Moneycontrol
Nov 14, 2017 03:57 PM IST | Source: Moneycontrol.com

ONGC executives ask Centre to rethink offering some oilfields to private firms

The petroleum ministry plans to offer 60 percent participating interest to private players in 11 oil fields operated by ONGC and 4 of Oil India.

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The recent government proposal to award some producing oil fields operated by Oil and Natural Gas Corporation (ONGC) and Oil India to private firms has evoked sharp dissent from the gas major’s executives.

According to a report by The Economic Times, they have urged the prime minister to reconsider the proposal citing lack of process clarity.

The Directorate General of Hydrocarbons (DGH), the regulatory department of the petroleum ministry, reportedly used a performance index to prepare a list of fields to be put on offer for private players.

The petroleum ministry plans to offer 60 percent participating interest to private players in 11 oil fields operated by ONGC and 4 of Oil India.

The executives of the Maharatna company claimed that the fields offered to private companies had received considerable funds for enhancing production and had done exceedingly well.

KC Hari Kumar, President of Association of Scientific & Technical Officers (ASTO), ONGC wrote a letter to the prime minister urging him to review the decision as the government recently found the company good enough to take on the assets of Gujarat State Petroleum Corporation (GSPC) in the Krishna-Godavari (KG) Basin.

ONGC had earlier taken 80 percent interest from GSPC in a KG Basin field the latter had found difficult to commercially produce from after years of effort.

“The Reliance – BP bid to revive KG-D6 output is still under a cloud, and we also have the striking winding up of the Tapti Asset, which demands a closer look at the success of Panna Mukta Tapti joint venture by the same techno-scientific process vis-a-vis Poor Field Performance Index applied to Ankleshwar, Gandhar, Kalol, Santhal, etc. fields of ONGC,” Hari Kumar, wrote in the letter.
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