Small BusinessOil India willing to take over ONGC's Assam oilfields
As government mulls hiving off Oil and Natural Gas Corporation"s (ONGC) Assam oilfields, state-owned Oil India has said it is willing to take over the assets and can run the fields more efficiently than that the current owner.
- SAIL, ONGC, IOC, NTPC may get Maharatna tag - IOC fears Rs 12,000-cr loss in "09-10 - Oil India net profit up 23% - Oil India posts 23.5% jump in Q3 net at Rs 717 cr - SAIL, ONGC, IOC, NTPC may get Maharatna tag shortly - ONGC bids for Venezuela oil block
"There is no probability, we will definitely be able to run them (Assam oilfields of ONGC) better than anyone else," OIL Chairman and Managing Director N M Borah told a news conference here.
The Ministry of Petroleum and Natural Gas has suggested that ONGC explore the possibility of hiving off its Assam assets into a wholly-owned subsidiary. The proposal is aimed at improving the productivity of ONGC’s Assam operations.
ONGC produces 1.1 million tonnes of crude oil annually from the Assam fields employing over 4,000 personnel. On contrast, OIL used 6,500-odd employees to produces 3.6 million tonnes of crude oil and is projecting an annually growth of 3-5 per cent. OIL"s cost of production in the North-East is under $7.5 per barrel while that of ONGC is higher than that.
"We will be a position to run (the fields) better," he said but hastened to add that OIL had not formally heard anything on hiving-off of ONGC"s Assam assets or their possible sale to OIL.