DGH May Review Plan To Sell 60% Stake In ONGC, Oil India Fields

DGH May Review Plan To Sell 60% Stake In ONGC, Oil India Fields

Directorate General of Hydrocarbons (DGH) may be rethinking its plan to sell 60% stake in hydrocarbon blocks held by Oil and Natural Gas Corp. Ltd (ONGC) and Oil India Ltd (OIL), two people familiar with the development said.

Last November, as a production enhancement measure, DGH had proposed to sell a 60% stake in the hydrocarbon fields of ONGC and OIL to private exploration firms. The two firms would retain the rest 40%. The plan included 15 blocks—11 of ONGC and four of OIL.

ONGC officials have been protesting against the idea.

“We have written a detailed mail to the DGH providing data to them concerning the fields in question. We have asked them why is there a proposal and need to give 60% in these fields to private players as we have been producing from these fields for last three decades. We have been given to understand that the DGH is re-thinking on the plan,” said an ONGC official, one of the two cited above, on condition of anonymity.

The official added that if such a sale takes place, operational control of the fields would go to private firms.

Mails sent to ONGC and the DGH on 15 February remained unanswered. Read More…

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