Oil Ministry Proposal To Privatise Largest Oil Box ONGC Upsets Union: Document


ONGC Privatisation: ONGC took over the Panna, Mukta and Tapti fields.

New Delhi:

The petroleum ministry’s proposal to present away ONGC’s greatest oil and gasoline fields to overseas firms has met with sturdy resistance from the officials union of the corporate, which has mentioned that the federal government will have to empower and provides the corporate a level-playing box slightly than freely giving its top belongings to the non-public sector on a platter.

The Affiliation of Clinical & Technical Places of work of ONGC petitioned Oil Minister Hardeep Singh Puri towards an offer put through Amar Nath, further secretary (exploration) within the Ministry of Petroleum and Herbal Gasoline, for freely giving 60 in line with cent stake and operatorship of Mumbai Top and Bassein & Satellite tv for pc (B&S) offshore belongings to global companions for elevating output.

The union, which represents ONGC’s 17,000 officials, mentioned the corporate and its workers are utterly aligned with the federal government purpose of elevating home manufacturing to chop imports, and for this to occur ONGC will have to be given the similar fiscal and regulatory regime as the non-public sector enjoys for exploring and generating oil and gasoline.

The federal government-dictated beneath marketplace worth gasoline worth fixation for ONGC fields will have to be reviewed to make manufacturing from smaller and far off fields viable, it wrote to Puri on November 11. Additionally, ONGC will have to be given freedom to marketplace small swimming pools of herbal gasoline which in provide worth regime are unviable.

Statutory clearances and government for ONGC want to be optimised and procedural facets rejigged to assist the company take sooner selections.

Farming out stake in “present fields shall now not yield the required result of bettering home manufacturing, as a substitute it’ll supply a degree gambling box and empower ONGC to additional fortify productiveness,” the union wrote.

“We might subsequently request you that delivering generating fields on a platter to the non-public operator is probably not a hit and subsequently, in our opinion, will have to now not be pursued,” it added.

It mentioned exploration of oil and gasoline is a extremely dangerous endeavour the place only a few like to take part. “That is obtrusive from the tepid reaction to the bids invited underneath OALP (bid rounds), the place best ONGC and to some degree OIL are the one bidders.”

Personal and overseas operators are unwilling to take the chance of making an investment thousands and thousands of bucks in surveying and drilling wells to ascertain reserves. They as a substitute need to input into established fields.

“The personal operators probably are giving precedence to business facets, the present trade local weather and subsequently might not be taking the chance that ONGC is keen to take,” the union wrote.

The information of the remaining 3 years displays that ONGC has been persistently drilling greater than 100 exploratory wells annually even if the global crude costs had hit an rock bottom. Throughout the low worth regime lots of the global and personal E&P firms had stopped their exploratory plans and had tremendously decreased their construction investments.

“ONGC, alternatively, bucked the rage and persisted to aggressively spend money on exploration and construction actions,” it mentioned, including personal exploration and manufacturing (E&P) firms were very fast to surrender fields with falling business returns.

“The instance of Panna, Mukta and tapti fields (in western offshore) the place global E&P operators didn’t renew their rentals even supposing the restoration issue from those fields had now not even reached 20 in line with cent, actually in a single case it used to be even lower than 10 in line with cent,” it mentioned pointing to ONGC’s restoration issue – proportion of reserves being recovered – at 28 in line with cent in Mumbai Top and Bassein fields.

ONGC took over the Panna, Mukta and Tapti fields after the go out of Shell and BG Crew and is generating greater than the authorized profile of the sector.

In a similar fashion, the Ratna box, which used to be given to the non-public sector, used to be put to manufacturing through ONGC. PY-3 box too used to be mendacity idle for years prior to ONGC took over.

“In spite of the affect of COVID-19, ONGC has been ready to take care of the manufacturing ranges as envisaged in the once a year plans. Mumbai prime has been generating since 1976 and has been the cornerstone of the rustic’s oil manufacturing. Bassein and Satellite tv for pc were the frontrunner for gasoline since 1987,” the union wrote.

“ONGC has been optimally generating from those fields preserving into account the well being of the reservoir,” it famous.

With time, ONGC has additionally accreted reserves in those fields and has enhanced the restoration issue.

“ONGC has plans to additional fortify the manufacturing from those fields and in coming years, we will see considerable build up from those fields,” the union wrote.

“These kind of efforts are in public area and we’re positive that the similar should were scrutinised through the Board of ONGC of which senior officers from the ministry are a vital part,” it added.

The Union sought a possibility to satisfy Puri for my part and provide its tips for augmenting home crude oil and herbal gasoline output.

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