Officials of ONGC refuse to give Oil Fields to private entities – ZMR Blog
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Officials of ONGC refuse to give Oil Fields to private entities

Officials Of ONGC Refuse To Give Oil Fields To Private Entities

Officials of Oil and Natural Gas Corp. (ONGC) have opposed the government’s move to give control of some oil production fields in the hands of private companies. The government intends to do this to increase the production from these fields, while ONGC officials have urged the Prime Minister to review the proposal. They say that the process unclear.

The Oil Ministry had planned to give 60% of the participating interest to private companies in 11 fields of ONGC and 4 fields of Indian Oil. The government wants to increase production from these fields through this method. It has been reported that the Directorate General of Hydrocarbons (DGH), the technical unit of the Oil Ministry, used a performance index to identify the fields. DGH had also prepared this index. It was reported by the government is planning to give ONGC’s fields to private companies to increase production.

Company officials said that the fields, which are being considered for private companies, their performance has been comparatively good. In addition, the company is also investing in them to increase production. Officials said that if these fields go out of hand, there will be a huge fall in annual production which is about 15%. The official also affirmed that this will reduce returns on investment.

Officials of ONGC refuse to give Oil Fields to private entities

ONGC’s Association of Scientific and Technical Officers (ASTO), in a letter written to Prime Minister Narendra Modi on Friday, alleged that the elections for fields that are intended for private companies have not been done in a transparent manner. The association also said that similar audit should also be done by private oil companies. KC Hari Kumar, President of ASTO ONGC, Baroda, has written a letter stating, “The claims made by Reliance-BP to increase production from KG-D6 are still under cloud of doubt.”

There is no point in selling the stake in small oil fields. In comparison, monetization of assets is a good step. This reduces the cost of government oil companies and increases the realization. Some funds used from disinvestment should be used to increase exploration and production activity. In fact, there is a lot to invest in the oil sector. This is High-Risk Business. With this, we should try to increase transparency in fields bid in the future.

However, the decision of the government is to be decided regarding the deliverance of oil fields to private firms. This decision will no doubt enhance the production capacity of those fields.

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