Pradhan requires monetisation of undeveloped ONGC, OIL fields

Union Petroleum Minister Dharmendra Pradhan on Thursday known as out state-owned upstream oil and fuel firms ONGC and OIL for not monetising oil and fuel fields for lengthy intervals and mentioned the federal government would look into strategies to monetise such assets on the earliest.
“If a company has come into possession of a resource through a process, it does not mean they will have it indefinitely,” he mentioned, on the launch of the third spherical of auctions for small fields with confirmed reserves underneath the Discovered Small Fields (DSF) regime.
He known as on the Directorate General of Hydrocarbons and the Oil Ministry to current a path to rapidly monetise assets which have remained undeveloped.
“If someone does not monetise these resources, new enterprises will have to be brought in (to do so),” mentioned Pradhan. The newest spherical of DSF public sale presents 75 discoveries protecting 13,000 sq km with estimated hydrocarbon reserves of 230 million tonnes.
As per officers conscious of developments, the federal government is encouraging ONGC to dump its stakes in maturing oil and fuel fields, which require important capital funding to take care of output ranges. It can also be wanting to usher in overseas companions in its growth in its oil and fuel blocks within the Krishna Godavari basin to speed up manufacturing.
The crude oil manufacturing of state-owned upstream gamers ONGC and OIL has fallen over the previous 5 years with pure fuel manufacturing remaining stagnant.