Miffed DGH sees no role in oil hunt
In a marked departure from the prevailing norms, oil exploration activities in the country may now be undertaken without the expertise of the upstream regulator Directorate General of Hydrocarbon (DGH).
By TNN |
NEW DELHI: In a marked departure from the prevailing norms, oil exploration activities in the country may now be undertaken without the expertise of the upstream regulator Directorate General of Hydrocarbon (DGH), if the government accepts its director general V K Sibal’s advice.
As per existing rules, the DG is the chairperson of all management committees, set up for exploration & production (E&P) of oil and gas by public or private oil companies. The management committee takes crucial decisions related to technical and financial aspects of E&P activities.
Sources said Mr Sibal has suggested that the management committee should comprise petroleum ministry officials only. The DGH’s suggestion is based on the apprehension that the government nominees in the management committee might have divergent views. In a management committee, while two members represent the government and the other two are contractor’s representatives.
The director general of DGH is one of the government nominees in the committee while other government nominee is nominated by the ministry. Normally, the committee is chaired by the DG. Earlier, only officials from the DGH used to represent the government in the management committee.
The DG has been upset over curtailment of his powers. In a letter to the petroleum ministry, Mr Sibal expressed his feelings. “In the recent past, on many technical and production sharing contract (PSC) issues, the DGH and the ministry of petroleum & natural gas (MOP&NG) have held divergent views,” he had said.
As per existing rules, the DG is the chairperson of all management committees, set up for exploration & production (E&P) of oil and gas by public or private oil companies. The management committee takes crucial decisions related to technical and financial aspects of E&P activities.
Sources said Mr Sibal has suggested that the management committee should comprise petroleum ministry officials only. The DGH’s suggestion is based on the apprehension that the government nominees in the management committee might have divergent views. In a management committee, while two members represent the government and the other two are contractor’s representatives.
The director general of DGH is one of the government nominees in the committee while other government nominee is nominated by the ministry. Normally, the committee is chaired by the DG. Earlier, only officials from the DGH used to represent the government in the management committee.
The DG has been upset over curtailment of his powers. In a letter to the petroleum ministry, Mr Sibal expressed his feelings. “In the recent past, on many technical and production sharing contract (PSC) issues, the DGH and the ministry of petroleum & natural gas (MOP&NG) have held divergent views,” he had said.
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