ONGC flags ‘critical’ recast issues

NEW DELHI: Days after the oil ministry sought response to a plan to carve up ONGC’s functional sections into a separate company and sell stake in major producing fields, India’s largest state-run explorer has said it is eyeing foreign partnerships for prospecting in less explored acreages but critical issues needed to be addressed before looking at changing the company’s structure.

“The government has been continuously encouraging ONGC to play a much larger role in the context of India’s oil and gas sector”, contrary to the impression conveyed by the ministry’s communication, the company said  on Wednesday.

Additional secretary (exploration) Amar Nath had sent an ‘action plan’ to the company on April 1, a day after chairman Shashi Shanker superannuated, giving officiating chairman and director (finance) Subhash Kumar the job to respond in four days.


The plan also envisaged privatising smaller fields and monetising other assets.

The company said the discussions have given ONGC an opportunity to raise issues that are critical for “delivering value to all stakeholders.”