ONGC Executives Say No To Offering Fields To Private Companies

ONGC Executives Say No To Offering Fields To Private Companies

Oil and Natural Gas Corp (ONGC) executives have protested the government move to give private firms control over some of its producing fields to boost stagnant output, urging the prime minister to review the proposal they claim lacks process clarity.

The Oil Ministry has prepared a plan to offer 60% participating interest to private players in 11 fields of ONGC and 4 of Oil India , with an aim to raise production at these ageing fields. The Directorate General of Hydrocarbons (DGH), the technical arm of the Oil Ministry, reportedly used a performance index it had prepared to draw up the list of fields.

ET first reported on May 31 that the government plans to offer ONGC fields to private players for raising output.

ONGC executives say the fields considered for private investment are among the better performing, and are receiving substantial funds for enhancing production. Losing them would mean a drop of about 15% in annual output, and scant return on investment. Read More…

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