ONGC opposes auction
New Delhi: State-owned ONGC has torn into regulator DGH's proposal to auction its discovered oil and gasfields, saying the national oil companies can raise production if they are offered the same fiscal concessions as extended to private companies.
In para-wise comments on the directorate general of hydrocarbons' (DGH) proposal to auction 60 per cent stake in some producing oil and gasfields of ONGC and Oil India Ltd, ONGC said national oil companies (NOCs) should also be allowed to participate in the auction.
The DGH has identified 15 discovered and producing fields - 11 of Oil and Natural Gas Corp (ONGC) and four of Oil India - with cumulative in-place reserves of 791.2 million tonnes of crude oil and 333.46 billion cubic metres of gas, for auctioning on the plea that private involvement will raise output.
The fields "may be offered to NOCs in case they assure to raise the production by working out the financial viability of the field by extending incentives like lesser royalty and no cess to the NOC", ONGC said on the DGH's draft production enhancement contract policy.
The DGH has proposed to auction the fields to the bidder who commits the maximum investment and pledges the largest share of its net revenue to the government. PTI