The oil ministry is unhappy with the near stagnant oil and gas production and believes giving out the discovered fields to private firms would help raise output as they can bring in technology and capital. The oil ministry is expected to approach the Union Cabinet to allow private companies take 60% stake in producing oil and gas fields of national oil companies, ONGC and Oil India Ltd (OIL), with the view that they would raise production above the baseline estimate. All of these oil fields are in blocks or areas that were given to the national oil companies on nomination basis and the current policy does not allow private firms taking equity stake in a nomination block. A baseline based on current oil and gas production from the 15 identified fields would be set and private companies taking 60% equity stake would get only the incremental volumes, the people mentioned above said. The 15 fields selected are out of review of 202 fields operated by the national oil companies.

Source: Mint November 05, 2017 10:52 UTC