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ONGC Considers Privatisation of 60% Oil Fields to Increase Oil Production

India, which imports about 80% of its oil, is looking for ways to increase domestic oil production and has reportedly asked the state-owned Oil and Natural Gas Company (ONGC) to balance a possible sale of a maximum of two shares of major oil & gas fields.

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ONGC Considers Privatisation of 60% Oil Fields to Increase Oil Production

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  1. ONGC Considers Privatisation of 60% Oil Fields to Increase Oil Production

  2. India, which imports about 80% of its oil, is looking for ways to increase domestic oil production and has reportedly asked the state-owned Oil and Natural Gas Company (ONGC) to balance a possible sale of a maximum of two shares of major oil & gas fields. India’s Oil Ministry has asked ONGC to consider selling 60% of Mumbai High and Bassein oil and gas off India’s west coast to private companies, as reported by Reuters on Thursday, citing an Indian government source communication. India is the world’s third-largest importer of crude oil, with imports accounting for more than 80% of petroleum consumption. The country has been trying to increase domestic production for years, with particular vulnerability to rising oil prices and rising import bills, leading to rising fuel prices. In recent few weeks, India has struggled with record oil and diesel prices with global crude prices above $80 per barrel amid tight markets and the OPEC+ group being reluctant to release more supplies when compared to the determined monthly volume increase in July. India has criticized OPEC and OPEC + for “protecting oil prices” several times this year. Now, the competent bodies in the country are welcoming private companies by encouraging them to increase oil production. The government’s recent request to ONGC was not an order for the state-owned oil company to transfer shares, according to a Reuters source.

  3. Parting thoughts If truth be told, promoting domestic production will not solve India’s dependence on oil imports, but may bring some relief to the country as oil prices rise. However, another question worth probing is whether India will be able to attract private companies to invest in its offshore oil. Last month, India’s Oil Minister Tarun Kapoor told Reuters news agency that US giant ExxonMobil was in talks to invest in some of ONGC’s deep-sea exploration assets off India’s east coast. About UPES CCE Being one of the leading UGC-recognised universities for higher distance education, UPES CCE builds a strong cornerstone in preparing young graduates and working professionals for a flourishing career ahead. Stay tuned for more such insights and industry updates about the Indian Oil & Gas industry!

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