Govt Pan­els to Mon­i­tor ONGC, Oil In­dia Fields

STRAT­EGY IS TO MAKE COS AC­COUNT­ABLE AND BOOST OUT­PUT FROM AGE­ING FIELDS

Resource Digest - - CONTENTS -

The govern­ment is go­ing to mon­i­tor oil­fields of ONGC and Oil In­dia Ltd (OIL) and hasd or­dered the set­ting up of separate com­mit­tees, led by a bu­reau­crat, for su­per­vi­sion as part of its broader plan to make these firms more ac­count­able and boost out­put from their age­ing fields, which con­tribute 70 per cent of In­dia's crude out­put.

The Direc­torate Gen­eral of Hy­dro­car­bons (DGH), the tech­ni­cal arm of the oil min­istry, has or­dered the con­sti­tu­tion of `re­view com­mit­tees for the pur­pose of man­age­ment of oil and gas re­sources of nom­i­na­tion fields' of ONGC and Oil In­dia re­spec­tively'. Each panel will be chaired by the Di­rec­tor Gen­eral of DGH and in­clude an­other of­fi­cial of DGH and top ex­ec­u­tives of the oil com­pany, ac­cord­ing to the 25th May or­der. ONGC and Oil In­dia must name their nom­i­nees within a fort­night of the or­der.

The com­mit­tee has the power to re­view all key mat­ters such as an­nual work pro­grammes and bud­gets for ex­plo­ration, de­vel­op­ment and pro­duc­tion, field de­vel­op­ment plans of com­mer­cial dis­cov­er­ies, and per­for­mance of pro­duc­ing or non-pro­duc­ing fields.

Pro­pos­als for sur­ren­der of acreage, ap­praisal pro­gramme, dec­la­ra­tion of com­mer­cial dis­cov­ery, “field surveil­lance“by DGH would also go to the com­mit­tee. The panel would also re­view col­lab­o­ra­tion with li­censees or con­trac­tors of other ar­eas.

The de­ci­sion of the com­mit­tee will be im­ple­mented by ONGC and Oil In­dia and the progress of im­ple­men­ta­tion re­ported to the com­mit­tee through the Direc­torate Gen­eral of Hy­dro­car­bons at its next meet­ing, the Di­rec­tor Gen­eral of DGH said in the or­der.

With such close su­per­vi­sion, the oil and gas min­istry hopes to make ONGC and Oil In­dia Ltd more ef­fi­cient and ac­count­able, re­sult­ing in the im­r­pove­ment of fall­ing crude out­put.

Oil Min­is­ter Dhar­men­dra Pradhan re­cently said that the fields nom­i­nated to ONGC and Oil In­dia Ltd have not at­tracted much of­fi­cial scru­tiny in the past and his plan now was to closely mon­i­tor these fields and make the com­pa­nies more ac­count­able.

The fields were given to state firms without auc­tion or pro­duc­tion shar­ing con­tracts be­fore the sec­tor was opened up to pri­vate in­vest­ment in the 1990s.

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