Government to give 60 per cent stake in ONGC and OIL fields to private firms

The Ministry of Petroleum and Natural Gas (MoPNG) has approached the cabinet to allow private companies to take a 60 per cent stake in 15 oil and gas producing fields of national oil companies Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL) with the aim that they will raise production above the baseline estimate. The MoPNG has identified 11 fields of ONGC and four of OIL for handing over to private firms. A baseline based on the current oil and gas production from the 15 identified fields will be set and private companies taking a 60 per cent equity stake will get only the incremental volumes. Reportedly, the fields will be auctioned and any firm committing the maximum capital investment within 10 years of the contract award and the largest share out of its net revenue to the government will be awarded the field.