Collaborate to compete in global oil & gas industry faced with low prices

Malik also pointed out that in the low price scenario of oil and gas, ONGC is successfully going ahead with joint venture approach.

During the conference, Prabhat Singh, managing director & CEO, Petronet LNG Limited, floated a proposal for creation of a consortium or special purpose vehicle (SPV), consisting of companies such as Petronet LNG Limited, Gail, ONGC, Engineers India Ltd and Oil India Ltd (OIL) to jointly bid for prospective properties for exploration of natural gas and as well setting up of LNG terminals in overseas fields, particularly those of Sri Lanka, Bangladesh and the like.

Elaborating on the issue of proposed consortium or SPV, Prabhat Singh hinted that it has been conceived by the Petronet LNG at a time when the company expects that the prevailing scenario of low oil and gas price would stay on for another five years and that to thrive on such circumstances, the consortium and SPV approach of national oil companies would be ideal situation to acquire oil & gas including terminal acreages and assets overseas including India.

According to him, the Ministry of Petroleum and Natural Gas is aware of it and that the Ministry’s intent is also there on it without disclosing a definite roadmap to convert it into reality. “The idea has been briefly floated and discussed and its conclusiveness should follow as India would be bidding to acquire gas properties and to build LNG terminals in countries like Sri Lanka and Bangladesh for which if India proceeds with collective approach, it would establish and edge over others,” pointed out Prabhat Singh adding that such an approach is also called for under prevailing circumstances to building energy storage facilities and other such assets domestically.