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Govt asks ONGC to consider selling 60% stake in key oil, gas fields: Report

India, the world's third biggest oil consumer and importer, wants to quickly monetise its oil and gas reserves and has been asking ONGC for years to raise production

Topics
ONGC | Petroleum sector | oil and gas

Reuters  |  NEW DELHI 

ONGC
The country's dependence on foreign oil has gradually risen to more than 80% as its local oil and gas output has been stagnating for years amid rising local refining capacity

NEW DELHI (Reuters) - India's petroleum ministry has asked state-run explorer Oil and Natural Gas Corp to consider selling a 60% stake in its two major fields to private to boost output, a government source said on Thursday.

India, the world's third biggest oil consumer and importer, wants to quickly monetise its reserves and has been asking for years to raise production.

The country's dependence on foreign oil has gradually risen to more than 80% as its local output has been stagnating for years amid rising local refining capacity.

ONGC's Mumbai High and Bassein and Satellite oil and gas fields offshore western India account for a major chunk of its local output.

The source with direct knowledge of the matter said the ministry's suggestion on farming out a majority stake to private was not a binding order for the state-run The person declined to be named, citing confidentiality issues.

India has failed to draw interest from global oil majors in licensing rounds since 1990 despite overhauling its exploration policy to include steps such as allowing state-run to rope in private firms https://www.reuters.com/article/us-india-oil-exploration-idUSKCN1P1177 to raise output and auction off some of their old fields https://mobile.reuters.com/article/amp/idINKBN1FR29M.

Oil Secretary Tarun Kapoor last month told Reuters that global oil major ExxonMobil Corp https://www.reuters.com/business/energy/exxon-looks-buy-stake-ongcs-indian-deep-sea-fields-2021-10-22 was looking to buy a stake in some of the local deep water fields of in the east coast.

He also said that India wants to attract global oil majors to boost the nation's oil and gas output.

 

(Reporting by Nidhi Verma; Editing by Emelia Sithole-Matarise)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Thu, November 11 2021. 20:17 IST
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