Private firms likely to get 60% in ONGC fields

New Delhi: Nearly 25 years after Oil and Natural Gas Corp. (ONGC)- discovered prime oilfields were privatised, the Oil Ministry has identified 11 more oil and gas producing fields of the State-run firm for handing them over to private firms to raise output.

The Ministry is approaching the Cabinet to allow private firms to take 60% stake in oil and gas producing fields of national oil companies, ONGC and Oil India Limited (OIL), with the view they would raise production above the baseline estimate. As many as 15 fields — 11 of ONGC and four of OIL — with cumulative in place reserves of 791.2 million tonnes of crude oil and 333.46 billion cubic metres of gas have been identified, sources said.

These include Kalok, Ankleshwar, Gandhar and Santhal — the big four oilfields of ONGC in Gujarat.

All of these fields are in blocks or areas that were given to the national oil companies on nomination basis. The current policy does not allow private firms take equity stake in a nomination block. So, a change in policy is required for which the Ministry is approaching the Cabinet, the sources said.

The policy currently allows giving out of participating interest or a stake to a private company only in the blocks or areas awarded in open auctions under New Exploration Licensing Policy (NELP) since 1999.