Public Sector

ONGC: Petroleum ministry’s 3rd attempt to get privatise oil & gas fields

ONGC: Petroleum ministry's 3rd attempt to get privatise oil & gas fields

ONGC: Petroleum ministry’s 3rd attempt to get privatise oil & gas fields

ONGC: Petroleum ministry’s 3rd attempt to get privatise oil & gas fields – The petroleum Ministry has disclosed to India’s biggest oil and gas maker ONGC to sell stake in delivering oil fields, for example, to Ratna R-Series to private firms, get foreign partner in KG bowl gas fields, adapt existing framework, and hive off boring and different services into a different firm to raise production.

Amar Nath, additional secretary (investigation) in the Ministry of Petroleum and Natural Gas, on April 1 wrote to Oil and Natural Gas Corporation (ONGC) Chairman and Managing Director Subhash Kumar giving a seven-point activity plan, ‘ONGC Way Forward’ that would help the firm raise oil and gas production by 33% by 2023-24.

The initiative plan, assessed by PTI, approaches ONGC to consider offer of stake in developing fields, for example, Panna-Mukta and Ratna and R-Series in western seaward and inland fields like Gandhar in Gujarat to private firms while stripping/privatising ‘non-performing’ peripheral fields, Additionally recognized for the design is the Deendayal block in the KG bowl which the firm had purchased from Gujarat government firm two or three years back.

The service additionally needs the organization to investigate making separate substances for boring, great administrations, logging, workover services and information preparing elements.

This is the third endeavor by the oil service to get ONGC to privatize its oil and gas fields under the Modi government.

In October 2017, the Directorate General of Hydrocarbons, the service’s specialized arm, had recognized 15 delivering fields with an aggregate save of 791.2 million tons of unrefined petroleum and 333.46 billion cubic meters of gas, for giving over to private firms with the expectation that they would refine the pattern gauge and its extraction.

The primary arrangement couldn’t go through due to solid resistance from ONGC, sources aware of the matter said.

The subsequent arrangement went up to the Cabinet, which on February 19, 2019, chose to offer out 64 peripheral fields of ONGC. In any case, that delicate got a mild reaction, they said adding that ONGC was permitted to hold 49 fields on condition that their presentation will be observed for a very long time.

The service note of April 1, 2021, said two years have passed by since the Cabinet choice and non-performing fields should be recognized for divestment and privatization.

It recommended market-accommodating bid terms, for example, lower eminence rates and complete promoting and evaluating opportunity.

For medium-sized creating fields, the activity plan needed ONGC to recognize developing fields, for example, Panna-Mukta, Ratna and R-Series in western seaward and Gandhar in Gujarat just as fields, for example, Daman in western seaward which had forthcoming improvement plans, for stake deal.

It additionally needed ONGC to consider growing new plans of action for adaptation of abandoned resources/disclosures like plan, money, fabricated and work just as annuity and securitsation based models for improvement. Fields, for example, GK-28/42 and all unmonetised disclosures, either independently or as a bouquet, were distinguished for the reason, the archive appeared.

The note said about reliance on import of unrefined petroleum and gas, the service has set the homegrown creation focus of 40 million tons of unrefined petroleum and 50 billion cubic meters (bcm) of flammable gas by 2023-24. The greater part of the focused on homegrown creation for 2023-24 is relied upon to come from ONGC, which is needed to contribute 70% of the homegrown creation (28 million tons of oil and 35 bcm of gas by 2023-24).

It said the portion of ONGC commitment in the oil and gas utilization of the nation is diminishing ceaselessly as its creation is stale or diminishing for quite a while. Therefore import reliance is expanding.

ONGC delivered 20.2 million tons of unrefined petroleum in the financial year finishing March 31 (2020-21), down from 20.6 million tons in the earlier year and 21.1 million tons in 2018-19.

It delivered 21.87 bcm of gas in 2020-21, down from 23.74 bcm in the earlier year and 24.67 bcm in 2018-19.

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