ONGC

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State-owned Oil and Nat­u­ral Gas Corp (ONGC), which has seen out­put de­cline year af­ter year, had lost its fo­cus from its core ac­tiv­i­ties, its Chair­man and Man­ag­ing Di­rec­tor Di­nesh K Sar­raf said to­day. "At some places, we got de-fo­cused. Ex­plo­ration and pro­duc­tion (of oil and gas) is our main stay. We need to stay in E&P," he said at the Urja Sangam Con­fer­ence here. ONGC, which has seen its oil pro­duc­tion drop 2 per cent ev­ery year for the past seven years, had di­ver­si­fied into down­stream ac­tiv­i­ties of petro­chem­i­cals, refin­ing and LNG busi­ness over the past one decade. Sar­raf, who be­came the head of ONGC in March 2014, said the de­cline of the past seven years is now be­ing ar­rested. "In 2014-15, we will have static over­all pro­duc­tion, while the same from off­shore fields will raise 5-6 per cent." "There has been de­mand, de­mand for per­for­mance from the new govern­ment be­cause of that dur­ing last one year we have ap­prove 5 ma­jor projects in west­ern off­shore to­tal­ing an in­vest­ment of Rs 27,000-28,000 crore," he said. Next month, the com­pany will take to its board the big­gest sin­gle lo­ca­tion in­vest­ment when it for­malises the de­vel­op­ment plan for gas dis­cov­er­ies in the east­ern off­shore block KG-DWN98/2, which sits next to Re­liance In­dus­tries-BSE -0.36 %' KG-D6 block in Kr­ishna Go­davari basin. "This will be the high­est in­vest­ment at a sin­gle lo­ca­tion," he said with­out giv­ing de­tails. The project as also oth­ers in west­ern off­shore will help raise com­pany's nat­u­ral gas pro­duc­tion by 81 per cent to 100 mil­lion stan­dard cu­bic me­ters per day by 2019-20, he said. BP In­dia head Shashi Mukun­dan said all coun­tries at early stage used the pro­duc­tion shar­ing con­tract (PSC) model, that guar­an­tee re­turn of in­vest­ment from hy­dro­car­bon pro­duced, to pro­vide a fair bal­ance be­tween risk and re­ward. There should be "no gap be­tween the vi­sion and im­ple­men­ta­tion," he said adding there should be clar­ity of roles and re­spon­si­bil­i­ties in ap­provals and reg­u­la­tions. Com­pa­nies and govern­ment, he said, should join up be­cause the goal for two is the same - pro­duc­ing ev­ery mol­e­cule of oil or gas.

Di­nesh K Sar­raf, Chair­man and Man­ag­ing Di­rec­tor, ONGC

ONGC, which has seen out­put de­cline year af­ter year, had lost its fo­cus from its core ac­tiv­i­ties, its Chair­man and Man­ag­ing Di­rec­tor Di­nesh K Sar­raf said to­day.

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