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ONGC told to mark areas for privatisation

moin by moin
17 November 2021
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ONGC told to mark areas for privatisation
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ONGC told to mark areas for privatisation

The government wants state-owned oil and gas explorer ONGC NSE 0.70 % to carve out non-producing high-potential areas of the prolific Mumbai High and Bassein fields for privatization, not privatize entire fields, oil secretary Tarun Kapoor told ET.

ONGC produces more than 60% of India’s oil and gas output and has resisted several attempts at privatizing its fields over the past few years.

In the latest move, the oil ministry wrote to ONGC last month, asking it to give away 60% participating interest and operatorship in Mumbai High and Bassein fields to international players.
These two fields, located off the Mumbai coast, together account for half of domestic gas and more than 23% of oil production.

Lower recovery rates in the two aging fields, slower project implementation by ONGC, and government rules that constrain a public sector enterprise’s functioning were cited as the key grounds for privatization in the ministry’s letter.

moin

moin

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