Government’s selloff push to leave ONGC with dud assets
06/12/2017
NEW DELHI: A proposal being considered by the oil ministry to privatise 11 prime fields of state-run ONGC will strip the company of its family silver and saddle India's flagship explorer with mature blocks nearing the end of their productive life along with new prospects that will need huge investments to develop.
As reported on November 6, the ministry's technical arm - Directorate General of Hydrocarbons - has suggested giving 60 per cent stake with operational control in 15 fields - ONGC's 11 and Oil India Ltd's four - to private companies for 20 years, or the fields remaining life, with a view to raising production through infusion of "world-class technology and oilfield management practices".
These fields have been identified on the basis of cut-off formula broadly based on present production and future prospect. These include four of ONGC's biggest assets in Gujarat Kalol, Ankleshwar, Gandhar and Santhal. Nineteen other fields have been identified for technical partnership with oilfield services companies without cedeing ownerhsip. The proposal - inspired by case studies from Nigeria, Mexico, Iraq and Egypt - has demoralised technical and scientific officers, who have through their association appealed the PM to stop the move.
All serving and former executives spoke to rejected these examples, saying discoveries in those countries were made by foreign companies.
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