State Run oil explorer ONGC has distanced itself from “any plan” to go to court in the matter of off loading its stakes in 11 hydrocarbon blocks as planned by Directorate General of Hydrocarbon (DGH). Some media reports earlier suggested that ONGC may take some legal option against DGH, if it goes ahead with its plan to sell 60% stake in 15 hydrocarbon blocks, of which 11 are of ONGC and 4 of Oil India.
Soon after a Mint report that quoted a 2 top officials for taking legal action, ONGC tweeted- “ONGC makes clear tht news abt farming out blocks 2 b challenged in court, is a frivolous campaign. We r working in line wth Hon’ble PM vision on prodn enhancemnt strategy.”
Top ONGC official told khabarindia.in that surely there isn’t any plan to seek legal action in the matter as proposal of DGH to sell 60% stakes in the blocks are in line with the PM vision’s to increase the hydrocarbon output in the country and bring in private investment into the hydrocarbon space. On the there hand ONGC further tweeted- “ONGC HV MANDATE FOR ENERGY SECURITY AND WE ARE WORKING ON THIS FRONT.”
We don’t know where this news of “taking legal course” has come from, as till now DGH hasn’t informed ONGC about clear locations of the blocks that have been chosen for farming out to other investors, informs the ONGC official. When asked about Association of Scientific and Technical Officers (ASTO) letter to PM opposing privatization of ONGC fields, official said that the move of Government and DGH is in line with the strategy to increase the hydrocarbon production and bringing in more investment and technology into hydrocarbon space. If it can increase the production from these old fields, then what objection ONGC would have?
